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AM 3Q17 revenues drop 2.2%; posts net loss after Colombian wrangle

25 Oct 2017

Carlos Slim-backed America Movil (AM) has reported revenues of MXN244.2 billion (USD12.8 billion) for the three months ended 30 September 2017, representing a decrease of 2.2% year-on-year. Adjusted EBITDA for the quarter dropped 2.1% to MXN66.3 billion while the company’s net income plummeted from MXN2.1 billion in 3Q16 to a net loss of MXN9.5 billion in the period under review. The group notes that the deficit was due to an arbitration process in Colombia, whereby its Comcel (now Claro Colombia) subsidiary was obliged to revert certain telecoms assets to the Colombian Government under the terms of the original concession agreements granted in 1994 and extended until 2014. The resultant fine totalled COP3.2 trillion (USD1.1 billion). In the absence of such a ruling, AM notes that its third quarter net profit would have totalled MXN2.5 billion.

In operational terms, AM closed out September 2017 with a consolidated base of 280.363 million wireless subscribers, down 1.3% from 283.920 million one year earlier. Mexico remains the group’s largest mobile market by subscribers, with 73.315 million customers, followed by Brazil with 60.398 million. AM’s total number of fixed line RGUs (including wireline, broadband and pay-TV) grew 0.5% y-o-y, to 82.719 million at end-September. Brazil accounted for the lion’s share of these accesses, with 35.962 fixed RGUs as of Q3 2017.

Colombia, Mexico, America Movil (AM), Claro Colombia

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