) reported third-quarter 2013 earnings per ADR of 35 cents,
missing the Zacks Consensus Estimate of 49 cents. The results
deteriorated 41.7% from 61 cents earned in the year-ago
Total revenue of MXN$194.2 billion ($15.1 billion) improved
0.7% year over year and was slightly above the Zacks Consensus
Estimate of $14.8 billion.
revenues were MXN$174.5 billion ($13.5 billion), down 0.9% year
over year due to currency fluctuations.
revenues were MXN$19.7 billion ($1.5 billion), up 17.7% year over
year on growing demand for smartphones and tablets.
Total costs and expenses in the reported quarter increased
4.2% year over year to MXN$130.9 billion ($10.1 billion).
Quarterly EBITDA dropped 5.8% year over year to MXN$63.3 billion
($4.9 billion). EBITDA margin dropped 220 basis points year over
year to 32.6%.
America Movil's total subscriber base reached 333 million in
Sep 2013, up 4.6% year over year. Of the total, wireless and
fixed-line subscribers were 265 million and 68 million,
representing year-over-year growth of 3.6% and 8.6%,
Results by Prime Regional Segments
Quarterly revenues from Mexico, America Movil's home ground,
dipped 0.3% year over year to MXN$68.181 billion ($5.3 billion).
Mexican ARPU (average revenue per user) decreased 6.4% and the
churn rate deteriorated 10 basis points year over year.
Revenues from the Brazilian operation climbed 10.3% year over
year to BRL8.4 billion ($3.7 billion). Brazilian ARPU fell
3.9 %, while churn rate improved 30 basis points year over
America Movil's U.S. operation (Tracfone) saw 17.2%
year-over-year growth in revenues to $1.5 billion. ARPU increased
10.7% year over year, while the churn rate deteriorated 20 basis
points year over year.
At the end of the third quarter, America Movil had around
MXN$72.2 billion ($5.7 billion) of cash and cash equivalents
compared with MXN$45.5 billion ($3.6 billion) as of Dec 31, 2012.
Total long-term debt was around MXN$468.9 billion ($37 billion)
compared with MXN$404.0 billion ($31.9 billion) at the end of
2012. The company's capital expenditure netted MXN$78.7 billion
We believe America Movil has a strong grip over the Latin
American wireless market thanks to consistent subscriber growth.
Increased penetration of 4G mobile services and a competitive
pricing policy are expected to boost the company's growth
prospects. Further, America Movil is concentrating on expanding
the PayTV platform, which remains one of its highest revenue
contributors. America Movil's various collaborations will likely
enhance its network within Latin America as well as in offshore
key markets such as Asia and the Middle East. Nevertheless, we
prefer to stay on the sidelines considering unstable economic
conditions, regulatory issues, high spending associated with
promotional activity and stiff competition from carriers like
NII Holdings Inc.
America Movil has a Zacks Rank #3 (Hold).
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