AM reports 3Q15 net loss after LatAm FOREX issues

20 Oct 2015

Carlos Slim-backed America Movil (AM) has reported revenues of MXN223.60 billion (USD13.61 billion) for the three months ending 30 September 2015, representing an increase of 1.4% year-on-year. EBITDA for the quarter decreased 5.5% to MXN66.73 billion while the company’s net income plummeted 55.5% y-o-y, from MXN12.62 billion to MXN2.88 billion. The group said that its third quarter results were impacted by ‘the sharp depreciation that took place in the quarter of the Mexican peso (MXN) and the Brazilian real (BRL) relative to the US dollar (USD) … The foreign exchange losses incurred have not had an impact on cash flows. They partly originate in intercompany financing positions’. According to Reuters, the net loss represents AM’s first negative quarterly bottom line in almost 14 years.

In operational terms, AM closed out September 2015 with a consolidated base of 288.395 million wireless subscribers, up 0.5% from 286.834 million one year earlier. Mexico remains the company’s largest mobile market by subscribers, with 72.994 million customers, closely followed by Brazil with 70.353 million. Meanwhile, AM’s total number of fixed line revenue generating units (RGUs, including wireline, broadband and pay-TV) grew 2.9% y-o-y, to 79.815 million. Brazil accounted for the lion’s share of these, with 36.766 fixed RGUs as of Q3 2015.

Mexico, America Movil (AM)