America Movil 1Q16 revenues up 1.4%; net income plummets 41.7%

28 Apr 2016

Carlos Slim-backed America Movil (AM) has reported revenues of MXN222.985 billion (USD12.828 billion) for the three-month period ended 31 March 2016, a slight improvement of 1.4% year-on-year. EBITDA for the quarter decreased 9.6% from MXN68.258 billion to MXN61.735 billion, while the company’s net income plummeted 41.7% y-o-y, from MXN8.227 billion to MXN4.798 billion. AM said the bottom line was heavily impacted by foreign exchange volatility throughout the world. Here, the Mexican group commented: ‘The first quarter marked the worst beginning of the year for capital markets in general and for emerging markets in particular, with renewed concerns about the sustainability of growth in China impacting commodity prices across the board … The Mexican peso depreciated sharply in the first two months of the quarter, dragged down by oil prices. Currency volatility in Mexico and other countries was very high throughout the quarter making it difficult to manage the sale of dollar-based products such as handsets. In spite of this, economic activity was rather stable throughout the region with the major exception being Brazil’.

In operational terms, AM closed out the first quarter with a consolidated wireless subscriber base of 283.865 million, down 2.0% from 289.646 million one year earlier. Mexico remains the company’s largest single market in terms of cellular connections, with 73.495 million customers, closely followed by Brazil with 65.289 million. Meanwhile, AM’s total number of fixed line revenue generating units (RGUs, including wireline, broadband and pay-TV) grew 3.8% y-o-y, to 81.345 million. Brazil accounted for the lion’s share of these, with 36.876 million fixed RGUs as of Q1 2016.

Mexico, America Movil (AM)