America Movil notes mobile data as growth driver – Mobile World Live

America Movil notes mobile data as growth driver

11 FEB 2015

America Movil identified mobile data as the “more important driver of growth”, followed by pay-TV, stating that it has made “important efforts to complete the rollout of our 4G-LTE networks”.

For the fourth quarter of 2014, the company reported a net income of MEP3.61 billion ($241.83 million), down 77.8 per cent from MEP16.29 billion, on revenue of MEP229.3 billion, up 2.7 per cent from MEP223.38 billion.

The company noted a number of factors impacting its bottom line, including an increase in depreciation and amortisation charges, and also higher financing costs related to foreign currency issues.

Mobile data growth was 14.6 per cent, while pay-TV growth was at 12.7 per cent. Fixed broadband revenue increased by 12 per cent, while voice sales across both fixed and mobile fell, partly due to regulatory measures.

With regard to its mobile business, Telekom Austria said that in recent months it participated in spectrum auctions in several countries in order to support 4G services, and expand its 3G footprint.

This has included around $1.76 billion for frequencies in Brazil, Argentina, Ecuador and Puerto Rico.

America Movil also had an interesting take on consolidation in its home market of Mexico. It noted that a law has been passed which led to the introduction of asymmetric interconnection rates for its Telcel business, and “shortly after the law was passed, the two undercapitalised operators with limited capacity to invest – Iusacell and Nextel – that were to take advantage of the unusual asymmetric measures imposed on us were put up for sale”.

AT&T acquired Iusacell, and has lined-up a deal with Nextel.

Against a backdrop of criticism about the amount of competition in the market, it noted: “There are now three important operators with global scale participating in the sector, which points the way towards greater investments and a rapid development of the telecommunications sector in our country.”

On a group level, it ended the year with 289.4 million wireless customers, “practically flat” year-on-year. During 2014, it disconnected prepaid customers in various countries as a common churn policy was adopted.

For the full year, net income was MEP47.18 billion, down 37.3 per cent from MEP75.22 billion, on revenue of MEP883.83 billion, up 2.9 per cent on MEP858.59 billion.

The company ended the year with net debt of MEP533.4 billion, up from MEP518.6 billion at the end of 2013 (assuming Telekom Austria had been consolidated then). During the year, it spent MEP149.7 billion in capital expenditure and distributed MEP52.1 billion to shareholders.

During the year, America Movil also participated in a capital increase at Telekom Austria Group, contributing €604 million of the €1 billion total. This has “strengthened Telekom Austria’s financial position and has secured its investment-grade ratings”.

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Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

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