America Movil profit up 16% in 4Q13

12 Feb 2014

Mexico-based America Movil (AM) recorded a total turnover of MXN204.12 billion (USD15.68 billion) in the last quarter of 2013, while it its full-year revenues reached MXN786.10 billion in the twelve months ended 31 December 2013, representing a rise of 1.4% year-on-year.

With the company saying that there had been signs of ‘a firming-up of economic activity in the US and of what may be an incipient recovery of the domestic market in Mexico’ in the fourth quarter, it noted that at constant exchange rates total revenues were actually up by 7.8% y-o-y in 4Q13. Service revenues in the last three months of 2013 totalled MXN178.17 billion, up from MXN176.84 billion in the corresponding period of 2012, though in the full financial year the company recorded service revenues of MXN701.56 billion, representing a 0.6% year-on-year decline. Pay-TV revenues led the way in terms of gains, rising 21.8% against 4Q12, while AM also highlighted the smallest decline in fixed voice revenues in more than a year; turnover from such services fell by 3.0% y-o-y in 4Q13. Wireless voice turnover continues to account for the largest share of the group’s total, representing 38.8% of service revenues in the last quarter of 2013.

Fourth quarter EBITDA totalled MXN63.5 billion, up 1.4% year-on-year, though AM noted that at constant exchanges rates it had actually increased by 5.7%. In terms of operating profits, the group recorded a 2.3% annual increase in the last quarter of 2013, with the Mexican telecoms giant saying that depreciation and amortisation charges had remained roughly flat against the corresponding period of 2012. Net profit for the last three months of the year, meanwhile, came in at MXN17.2 billion, up by almost 16% against 4Q12, though annual net profit tumbled by 18.0% to MXN74.625 billion.

AM’s wireless subscriber base reached 269.883 million as at end-December 2013, having increased by 3.2% when compared to the 261.558 million it reported a year earlier; during 2013 the group noted, however, that it had recorded one-off disconnections of 5.1 million clients that did not comply with its churn policies. Meanwhile, almost 23% of net adds in the last quarter of the year were said to be post-paid subscribers, with 41% of those said to have come from Brazil. Indeed, the group’s Brazilian unit was one of its stronger performers, seeing total wireless subscribers rise by 5.3% y-o-y to 68.704 million. In the fixed arena, net revenue generating unit (RGU) additions totalled 1.2 million in 4Q 2013, of which 559,000 were pay-TV customers and a further 345,000 were broadband accesses. Approximately two-thirds of the RGU additions in the quarter were said to have taken up a triple-play bundle.

Mexico, America Movil (AM)