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America Movil profits fall in Q3

America Movil profits fall in Q3

America Movil reported third-quarter net profit down 39.3 percent to MXN 10.12 billion, hurt by a rise in tax and forex losses as well as weak results at its European associates, Telekom Austria and KPN. Pro forma for the acquisition of a controlling stake in Telekom Austria in July, the company’s quarterly revenues were up 4.0 percent to MXN 220.88 billion. 

Service revenues rose 3.8 percent to MXN 198.64 billion, and hardware revenues were up 6.2 percent to MXN 22.24 billion. America Movil said growth was led by mobile data and pay-TV services, which each grew revenues around 15 percent. The operator’s EBITDA was up just 0.4 percent to MXN 69.19 billion, hurt by negative currency effects, and EBIT fell 5.5 percent to MXN 37.64 billion due to higher depreciation and amortisation after investments. 

America Movil said it spent MXN 82.0 billion on capital equipment and MXN 34 billion on shareholder distributions in the quarter, all financed from cash flow. Net debt was also reduced by MXN 30.7 billion to MXN 490.6 billion at the end of September, equal to 1.63 times annual EBITDA. 

The operator recorded only a 0.1 percent sequential increase in mobile customers in the quarter to 286.834 million. Despite growth in markets such as Brazil, Peru and the US, the group had 1.8 million disconnections in Mexico, Chile and Central America. Fixed-line revenue-generating units totaled 77.572 million at the end of September, including 4.4 million acquired from Telekom Austria and 1.4 million organic additions added in the quarter. 

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