America Movil: revenue up but Q3 profits slump 39%

27 Oct 2014

Mexico-based America Movil (AM), which is controlled by the family of the billionaire Carlos Slim, said net profit for the three months ended 30 September 2014 slumped 39.3% to MXN10.12 billion (USD746.7million) from MXN16.38 billion in the same quarter last year. More positively, third quarter revenues of MXN220.8 billion were up 4.7% (at constant exchange rates), driven by mobile data services and by pay-TV revenues that rose 15.2% and 14.7%, respectively. EBITDA of MXN69.2 billion was roughly flat at 0.4%, it said, although constant exchange rates, it rose 6.3%, slightly more than would have been posted the prior quarter. Operating profits declined 5.5% year-on-year to MXN37.6 billion, essentially the result of higher depreciation and amortisation charges. Commenting on sharp fall in profit, AM said that the group’s tax burden rose by MXN4.43 billion when compared to Q3 2013, while it posted an exchange rate loss of MXN8.97 billion.

In operational terms, AM added a net 1.5 million new accesses in 3Q14 to end September with 364.4 million accesses, 1.8% more than a year before. The total includes 286.8 million wireless subscribers, 34.0 million landlines, 22.2 million broadband accesses and 21.4 million pay-TV users. In addition, Telekom Austria Group, which was consolidated in AM’’s results from 1 July 2014, contributed 24.3 million accesses.

Mexico, America Movil (AM)