America Movil revenues up 6.1% in 2Q16, EBITDA falls 10.7%

1 Aug 2016

Mexico-based group America Movil has announced its results for the three months ending 30 June 2016, reporting total revenues of MXN233.383 billion (USD12.437 billion), up 6.1% from MXN219.876 billion in the same period one year earlier. Service revenues increased by 3.2% in the period under review, as mobile revenues rose by 5.5% and income from fixed line services grew 7.4%. America Movil noted the increases reflected the appreciation of several currencies against the Mexican peso, particularly the Brazilian real and the Colombian peso. EBITDA declined by 10.7% compared to 2Q15, to MXN60.983 billion, mostly due to revenue losses in the operator’s domestic market – which America Movil said was brought about by ‘more aggressive commercial plans in the pre-paid segment as a greater part of our subscribers moved towards unlimited call plans.’ Net profit, meanwhile, plummeted to MXN7.700 billion, down 45.2% year-on-year from MXN14.048 billion.

In operational terms, America Movil ended the quarter with a total of 282.851 million wireless subscriptions, down 2.1% from 283.865 million twelve months earlier; Mexico remains the operator’s largest subsidiary with regard to cellular connections, having 73.108 million mobile subscribers at the same date, down from 73.495 million y-o-y. Fixed line accesses (RGUs, including wireline, broadband and pay-TV) stood at 81.679 million at end-June 2016, a 0.4% increase from 81.345 million in 2Q15. Brazil accounted for the highest number of these, with 36.809 million connections (up from 36.876 million y-o-y), compared to second largest fixed line unit Mexico, with 21.722 million (down from 21.694 million twelve months previously).

Mexico, America Movil (AM)