America Movil Q2 profit falls - Mobile World Live

America Movil Q2 profit falls

27 JUL 2012

America Movil reported a drop in profit for the second quarter, a period which saw foreign exchange movements impacting its financing costs.

Following the company’s acquisitions of stakes in Telekom Austria and KPN, Reuters reports that Daniel Hajj, its chief executive, had played-down unconfirmed speculation it was looking at TeliaSonera’s Yoigo unit in Spain.

For the second quarter, America Movil reported net income of MEP13.25 billion (US$986.4 million), down 45.5 percent year on year from MEP24.32 billion, on revenue of MEP191.74 billion, up 9.3 percent from MEP175.5 billion.

The company noted a MEP16.1 billion foreign exchange loss, as several Latin American currencies depreciated.

Net debt increased by MEP29.7 billion during the three months, as a result of new investments in KPN and Telekom Austria. It also bought Simple Mobile, a US MVNO using the T-Mobile USA network.

Mobile revenue increased by 14.1 percent during the period, making up 61.4 percent of its total sales. ARPU rose “practically everywhere” – with Brazil being the “notable exception”.

During the period, it added 5.9 million mobile subscribers, including 1.1 million gained from the acquisition of Simple Mobile, with 1.4 million additions in Brazil and 1.4 million additions in Mexico. At the end of the period it had 251.8 million mobile subscribers.

Mexico is America Movil’s biggest market, where it has 68.1 million subscribers, followed by Brazil, where it has 63 million.

Among the highlights noted by the company were a 32 percent increase in mobile data revenue (at constant currency), which, alongside strong growth in its PayTV business, offset declines in its fixed-line voice business.

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