Latin American telecoms giant America Movil (AM) has released its financial results for the three months ended 30 September 2013, with the company seeing net profit in the quarter slump on increased financing costs and stagnant revenues.
In the third quarter of 2013 AM generated a total turnover of MXN194.221 billion (USD15 billion), up marginally from MXN192.821 billion in the corresponding period of 2012, while service revenues in the three month period were down slightly, falling by 0.9% year-on-year to MXN174.516 billion. Mobile data and pay-TV were highlighted as the more ‘dynamic’ business lines, with the company saying that revenues from such services had increased by 22.4% and 21.7% y-o-y, respectively, with fixed broadband revenues rising by 10.2%. By comparison, turnover from the group’s mobile and fixed line voice services fell by 2.2% and 4.6%, respectively.
Third quarter EBITDA stood at EUR63.3 billion, down 5.8% compared to the year earlier period, with the EBITDA margin at 32.6%, down from 34.8% in 3Q12, though AM noted that at constant exchange rates EBITDA was down by just 0.5%. The group’s comprehensive financing cost for the quarter under review, meanwhile, was MXN10.8 billion, which included a foreign exchange loss of MXN2.9 billion, compared to a foreign exchange gain of MXN9.0 billion a year earlier. As a result, net profit in 3Q13 was MXN16.4 billion, representing a more than 46% year-on-year drop from 3Q12.
In operational terms, at the end of September 2013 AM reported a total of 265.1 million wireless subscribers, 3.6% more than it had a year earlier, following 3.1 million net additions in the third quarter. AM highlighted its Brazilian unit as a particularly strong performer, noting that it had gained 960,000 new wireless voice customers, twice as many as it added in 3Q12, while in Colombia its local subsidiary added 559,000 new subscribers. Additionally, the company pointed to a continued increase in its higher-value post-paid customer base, which was up 11.3% y-o-y. Fixed line revenue generating units (RGUs), meanwhile, totalled 68.3 million at end-September 2013, up 8.6% from end-September 2012. With 1.4 million fixed accesses added in 3Q13, it noted that 49% of these were pay-TV units, while overall AM said that the ‘majority of the new fixed RGUs’ were attributed to its Brazilian unit.