Slim feels FOREX squeeze as AM net income plunges 37.3% in FY2014

11 Feb 2015

Carlos Slim-backed America Movil (AM) has reported revenues of MXN883.832 billion (USD59.460 billion) for the twelve month period ended 31 December 2014, representing an improvement of 2.9% year-on-year. EBITDA for the full year increased 0.9% from MXN276.843 billion to MXN279.213 billion on an annualised basis, while the company’s net income plummeted 37.3% y-o-y, from MXN75.217 billion to MXN47.182 billion.

The company notes that its bottom line was heavily impacted by ‘significant foreign exchange volatility throughout the world’, particularly in the fourth quarter; AM’s net profit for 4Q14 was decimated by FOREX shifts, dropping 77.8% y-o-y. AM notes that emerging market currencies suffered vis-a-vis the US dollar, as did the euro, the latter on expectations of quantitative easing by the European Central Bank. The US dollar rose 12.6% in the quarter against the Mexican peso; 13.4% against the Brazilian real; 24.2% against the Colombian peso and 13.6% against the euro.

In operational terms, AM ended 2014 with a total of 368 million active access lines, up 8.4% in the year, which mostly reflects the consolidation of Telekom Austria Group in July 2014. Excluding acquisitions, AM’s total user base was 1.2% higher, when compared to 2013. The telco claimed a total of 289.4 million wireless subscribers at year-end, 34.3 million wirelines connections, 22.6 million broadband accesses and 21.5 million pay-TV users.

Mexico, America Movil (AM)