America Movil 4Q19 revenues flat; net income surges 63.4%

13 Feb 2020

Carlos Slim-backed America Movil (AM) has reported revenues of MXN263.2 billion (USD14.1 billion) for the three months ended 31 December 2019, roughly unchanged from MXN263.3 billion in 4Q18. EBITDA for Q4 climbed 13.9% to MXN81.7 billion, while the company’s fourth quarter net income reached MXN21.2 billion, up 63.4% from MXN13.0 billion in the last three months of 2018. However, the group notes that because it implemented IFRS 16 accounting standards on 1 January 2019, the reported figures were obtained with different methodologies and are for comparison purposes only.

AM says that its improved results were helped by US long-term interest rates stabilising in the fourth quarter and the stock market reaching all-time highs on the back of sustained economic momentum. In addition, the group witnessed weak, but improving, levels of economic activity in Latin America’s larger countries, with the currencies in the region generally strengthening or remaining stable throughout the quarter (with the noted exception of the Chilean peso).

In operational terms, AM closed out December 2019 with a consolidated wireless user base of 278.027 million subscribers, up 0.8% from 275.827 million one year earlier. Mexico remains the company’s largest single market in terms of cellular connections, with 76.918 million customers, followed by Brazil with 54.488 million. Meanwhile, AM’s total number of fixed line RGUs (including wireline, broadband and pay-TV) dipped 0.1% y-o-y, to 83.983 million in 2019. Brazil accounted for the lion’s share of these, with 34.048 fixed RGUs as of end-2019.

Mexico, America Movil (AM)