America Movil improved EBITDA growth to 7.7 percent in the third quarter, to MXN 71.8 billion, driven by improved margins in Brazil. Revenues rose a slower 2.1 percent to MXN 250 billion. At constant exchange rates, EBITDA increased 13.0 percent year-on-year and revenue was up 3.4 percent.
The company said the results were helped by the release of provisions taken in Brazil for a lawsuit over disputed taxes that Claro won. This contributed around half of the 2 percent increase in the EBITDA margin to 28.8 percent.
Service revenue growth improved across most operations, with Mexico up 4.7 percent. Postpaid mobile revenues led the way with an 8.6 percent increase, followed by fixed-broadband revenues up 6.2 percent.
Operating profit increased 23.4 percent to MXN 35.3 billion, and the net result moved to a profit of MXN 18.6 billion from a loss of MXN 9.5 billion a year ago, thanks to foreign exchange gains as well as the provisions in Brazil.
In the year to September, the operator spent MXN 91.7 billion on capital expenditure, MXN 10.1 billion on dividends, MXN 15.6 billion to pension funds and MXN 14.0 billion on debt reduction. Net debt stood at MXN 584 billion at the end of September, down by MXN 45 billion since December and equal to 2.0 times EBITDA.
The company ended the third quarter with 362.7 million access lines. Fixed RGUs increased 0.7 percent from a year before to 83.3 million, led by 4.7 percent growth in broadband, while the mobile base declined 0.4 percent to 279.4 million. Compared to June, the company added a net 340,000 new mobile customers.
The mobile postpaid base was up by 1.1 million in the quarter to 74.2 million, a 7.6 percent increase from the prior year. Brazil led the way with 472,000 net additions, followed by Mexico with 184,000 and Colombia with 100,000. In the prepaid segment, the operator disconnected 767,000 customers, including 522,000 in Brazil and 333,000 in the US.
