America Movil bottom line boosted by foreign exchange profit in 2Q14

22 Jul 2014

Latin American telecoms giant America Movil has published its financial results for the quarter ended 30 June 2014, revealing a 32.7% year-on-year increase in net profit on the back of lower financial costs.

For the three-month period AM generated a total turnover of MXN202.635 billion (USD15.6 billion), up from MXN194.800 billion in the second quarter of 2013, while service revenues rose by 3.6% year-on-year to MXN180.644 billion. At constant exchange rates, AM noted that service revenues were, in fact, up 5.8% against 2Q13, with both mobile data revenues and pay-TV revenues said to have expanded at a rate of approximately 18.8%. By contrast, fixed voice revenues continued to decline, though AM said the rate of decline had slowed, while mobile voice revenues were 3.3% lower than in 2Q13; such deterioration, the company said, was ‘mostly to do with the implementation of new regulatory measures in Mexico, the introduction of new competitive plans in Colombia, and the reduction of termination rates in Brazil and Chile’.

Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at MXN66.6 billion in the quarter under review, representing a 2.4% increase against the year-ago period, although operating profit fell by 3.3% y-o-y as a result of a 12.0% increase in depreciation and amortization charges which were said to reflect AM’s ‘increased levels of investment practically across the board’. Meanwhile, comprehensive financing costs fell by 34.3% to MXN13.670 billion, despite net interest expenses rising by 16.3% because of higher levels of net debt; a foreign exchange profit of MXN3.082 billion helped offset that increase, however. Net income in 2Q14 totalled MXN18.833 billion, up from MXN14.193 billion a year earlier.

In operational terms, at the end of June 2014 AM reported a total subscriber base of almost 339 million, representing a 3.0% increase against the same date in 2013, comprising 266.9 million wireless subscribers, 31.6 million fixed voice, 20.0 million broadband and 20.3 million pay-TV. In the wireless arena, AM finished June 2014 with some 43.9 million post-paid subscribers across all its regions of operation, 7.8% more than at end-June 2013 after net gains of 524,000 subscribers, including 207,000 in Brazil and 121,000 in Mexico.

Mexico, America Movil,

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