America Movil Q1 profits slump 42% on weak Brazilian real

24 Apr 2015

Mexican telecoms giant America Movil (AM), which is controlled by the family of the billionaire Carlos Slim, has reported a 42.1% slump in net profits to MXN8.227 billion (USD533.8 million) for the three months to 31 March 2015 compared to MXN14.215 billion in 1Q14, attributed in large part to a second consecutive quarter of foreign exchange losses – mainly due to the depreciation of the Brazilian real (BRL) versus the dollar (USD). In a financials release, AM confirmed that its first-quarter performance was badly hit by an MXN17.883 billion FOREX loss, following a sizeable 21% drop in the value of the real against the dollar in 1Q15. The profit drop also came despite a y-o-y 3.1% rise in consolidated revenue to MXN220.036 billion, with service revenue up 0.6% to MXN193.755 billion; EBITDA fell 3.1% to MXN68.248 billion as total costs and expenses rose 6.2% in the twelve-month period to MXN151.788 billion. Mobile data revenues continued to be the more important driver of growth, followed by pay-TV, rising 12.0%, and 9.9%, respectively. Fixed broadband revenues increased 9.2%, while voice revenues continued their downward trend in both fixed and mobile platforms.

On the operational front, AM closed out March 2015 with a total of 368 million access lines, driven by net additions of 125,000 lines in the first quarter. The top-line figure includes approximately 289.6 million wireless subscribers, 34.5 million fixed telephony lines, 22.3 million broadband connections and 21.6 million pay-TV customers. The Mexican group noted that Brazil was its largest and fastest growing operation; thanks to a 5.8% y-o-y increase in net subscriptions, it finished March with a total of 108.3 million access lines.

Mexico, America Movil (AM)