America Movil 3Q16 revenue up 11.8%

28 Oct 2016

Mexico-based group America Movil (AM) has reported total revenues of MXN249.740 billion (USD13.30 billion) for the three-month period ended 30 September 2016, an increase of 11.8% from MXN223.435 billion in the same period of 2015. EBITDA for the quarter increased 1.5% year-on-year to MXN67.729 billion, but a 36.4% drop in financing costs – including a 77.0% reduction in foreign exchange losses – led to a 173.6% increase in net income, which reversed from a loss of MXN2.884 billion in Q3 2015 to net profit of MXN2.123 billion. Commenting on the results, AM noted that: ‘The main factor behind the improvement was the renewed dynamism of mobile data revenues, whose y-o-y rate of growth rose from 4.1% in the second quarter to 7.7% in the third. Fixed broadband revenues expanded at a slightly faster pace, 8.8% vs. 7.9%, whereas pay-TV revenues maintained their trend at 6.1%. Voice revenues – both fixed and mobile – declined somewhat less rapidly in the third than in the second quarter.’

In operational terms, AM closed out the third quarter with a consolidated wireless subscriber base of 283.920 million, down 1.6% from a year earlier. Mexico remains the group’s largest single market in terms of mobile lines, with a total of 72.740 million subscribers (down from 72.994 million in Q3 2015), closely followed by Brazil with 63.519 million (-9.7% y-o-y). Meanwhile, AM’s total number of fixed line revenue generating units (RGUs, including wireline, broadband and pay-TV) grew 3.1% y-o-y from 79.815 million to 82.307 million. Brazil represented the lion’s share with 36.983 million RGUs (0.6 y-o-y), followed by Mexico with 21.884 million (0.8%).

Mexico, America Movil (AM)