America Movil records 17.4% y-o-y drop in net profit in 1Q13

19 Apr 2013

Latin American telecoms giant America Movil (AM) has released its financial results for the three months ended 31 March 2013, revealing a 17.4% slump in net profit for the period despite recording a 0.2% year-on-year increase in revenues.

In the company’s first quarter of 2013 it generated total turnover of MXN192.96 billion (USD15.26 billion), up from MXN192.49 billion in 1Q12. However, while revenues from equipment increased by just over 20% compared the year-ago period, service revenues in the first three months of 2013 actually declined by 1.5%, to MXN174.52 billion. AM meanwhile was keen to point out that, with the Mexican peso having continued to gain ground against both the US dollar and other Latin American currencies, ‘when translated into pesos, the rate of growth of the revenues of [its] international operations falls below their rate of growth in local currency terms’. Taking such currency movement into account, the company claimed that its revenues would have increased by 6.1% y-o-y at constant exchange rates.

EBITDA for the first quarter of 2013 stood at MXN63.8 billion, down 6.8% against 1Q12, while operating profit in the opening quarter of this year fell by 10.1% to MXN38.7 billion. Net profit for the period under review, meanwhile, totalled MXN26.9 billion, which while down year-on-year, AM noted represented an 80% increase against the last quarter of 2012. In terms of the performance against 1Q12, AM noted that net profit was lower in the first quarter of 2013 ‘partly on account of the lower operating profits and partly on account of the even larger foreign exchange gains that [it] had then’.

In operational terms, at the end of March 2013 AM reported 328.2 million access lines, a figure it said represented a 7.4% increase against the same date a year earlier. Of that total the lion’s share were wireless subscribers, which totalled 262.9 million at 31 March 2013, while at that same date the company counted 30.3 million fixed voice access, 17.8 million broadband subscribers and 17.2 million pay-TV connections.

Mexico, America Movil (AM)