America Movil reports solid second quarter financials

26 Jul 2013

Latin American telecoms giant America Movil (AM) recorded a 1.6% year-on-year increase in turnover for the three months ended 30 June 2013, though the group noted that the increase in local currency terms underestimated true revenue growth due to foreign exchange fluctuations. With consolidated revenues standing at MXN194.80 billion (USD1.56 billion) in the second quarter, and service revenues accounting for MXN174.34 billion of that, AM said that in constant peso terms service revenues had actually increased by 7.8% year-on-year, while consolidated revenues were 10.0% higher than in 2Q13. The acceleration of service revenue growth, meanwhile, was particularly strong in Mexico and in the South American block, AM said, noting that this had been mostly driven by the voice segment, with turnover from mobile voice services recovering from the downturn in the previous two quarters.

Earnings before interest, tax, depreciation and amortisation (EBITDA) in the period under review stood at MXN65.04 billion, down slightly from the MXN66.43 billion reported in 2Q12, though again AM highlighted the fact that at constant exchange rates consolidated EBITDA swung from a 2.4% decline in the first quarter of this year to a 5.0% increase in the second quarter. The EBITDA margin stood at 33.4% in 2Q13, compared to 34.6% in the same period a year earlier. The Mexican group meanwhile posted a net profit of MXN14.2 billion in 2Q 2013, representing a 7.9% year-on-year increase.

At the end of June 2013 AM reported 328.8 million total accesses, up 5.0% from the same date a year earlier, with the bulk of those – 262.0 million – being wireless subscribers. Fixed voice lines totalled 30.7 million as at 30 June 2013, while fixed broadband accesses and pay-TV subscribers numbered 18.2 million and 17.8 million at that date, respectively.

Mexico, America Movil (AM)