Another poor quarter for Unefón

2 Aug 2006

Mexican mobile operator Unefón said second quarter revenues declined by 10% year-on-year to USD81 million, primarily due to the previous year’s results being inflated by the sale of spectrum to rival operator Telcel, according to BNamericas citing a company statement to the Mexican stock exchange BMV. EBITDA was down 52% to USD14 million, and the company swung to net loss of USD10.7 million.

Unefón ended June 2006 with 1.3 million subscribers, down 7% compared to 2Q05, as the company chased higher revenue post-paid subscribers whilst shedding pre-paid users. Contract customers made up 14% of the total base, compared with 6% a year earlier, but monthly blended ARPU shrank 5% to MXN210, down from MXN220 in 2Q05. Unefón extended its CDMA network to 16 new cities in the period, and now operates in 52 cities; it also offers services in an additional twelve under an agreement with its sister operator Iusacell. It is investing USD150 million in 2006 and expects to expand its network to 13 more cities by the end of the year.



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