America Movil Q4 losses widen on weaker peso, underlying revenue higher

Wednesday 14 February 2018 | 08:22 CET | News

America Movil saw its net loss nearly double in the fourth quarter, to MXN 11.3 billion from MXN 6.0 billion a year ago. The company was hurt by the depreciation in the Mexican peso versus the US dollar and euro. EBITDA rose 6.8 percent to MXN 70.2 billion, and operating profit was up 10.9 percent to MXN 28.6 billion, supported by improving economic conditions, the company said.

Quarterly revenues fell 2 percent to MXN 264 billion, but were up 0.5 percent at constant exchange rates, and service revenues rose 1.4 percent excluding forex. The growth was held back by the impact of the hurricane in Puerto Rico; excluding this, service revenues would have risen 1.9 percent, the company said. 

Service revenue growth was driven by postpaid revenues up 9.5 percent, prepaid data growing 9.7 percent, and fixed-broadband revenues 5.8 percent higher. Mobile ARPUs rose practically across the board, driven by strong data revenue growth, America Movil said. 

The company ended 2017 with 362 million accesses, slightly less than a year before. Mobile postpaid and fixed-broadband connections increased 6.4 and 4.2 percent respectively, while mobile prepaid and pay-TV were down by 2.6 percent each. In fixed voice, the company lost 1.9 percent of lines over the year as clients moved to triple-play packages or to postpaid mobile services.

Over the fourth quarter, the mobile postpaid base grew by 1.7 million subscribers, including 1 million in Brazil, 206,000 in Mexico and 109,000 in Austria, to finish the year with 70.6 million subs. Postpaid net adds surpassed those of the year-earlier quarter by 26.6 percent. In fixed broadband, the group gained 321,000 clients in the quarter.

America Movil reduced its net debt by MXN 15.2 billion in 2017 to MXN 614.5 billion. Annual cash flow was enough to cover MXN 136.7 billion in capital expenditure and MXN 15.0 billion in dividends and buybacks for shareholders (net of KPN dividend). 

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