America Movil reported an improvement in underlying third-quarter results, saying there signs of an improving economic climate in some Latin American countries. Service revenues were stable year-on-year excluding currency effects, compared to an annual decline in the previous quarter. This was supported by 7.7 percent annual growth in mobile data revenues, better than the 4.1 percent growth in Q2, and a slower decline in voice revenues.
Total revenues rose 11.8 percent to MXN 250 billion and were up 3.1 percent at constant exchange rates. EBITDA improved 1.5 percent to MXN 67.7 billion and fell 5.4 percent excluding forex effects, less than the 13.2 percent reduction in the prior quarter. The margin still fell to 27.1 percent from 29.9 percent a year ago. The operator's net result improved to a profit of MXN 2.1 billion from a loss of MXN 2.9 billion a year ago thanks to lower forex losses.
In the nine months to September, America Movil spent MXN 100.5 billion on capital expenditure, reduced net debt by MXN 19.0 billion and distributed to shareholders MXN 9.6 billion in dividends and share buybacks. The spending was supported in part by the sale of part of its shares in Telekom Austria. Leverage was similar to Q2, with net debt of USD 32.3 billion at 2.2x annual EBITDA.
The company's customer base was down 0.5 percent year-on-year to 366.2 million at the end of September. In fixed services, RGUs were up 3.1 percent year-on-year, driven by 8.3 percent growth in broadband. Mobile customers numbered 284 million, including 1.2 million acquired from T-Mobile US in August. Compared to the end of June, the operator added 750,000 postpaid subscribers and disconnected 881,000 prepaid customers. Postpaid growth was strongest in Brazil, Mexico and Colombia.
