America Movil, S.A.B. de C.V. (AMX)

Get AMX Alerts
*Delayed - data as of Nov. 24, 2015  -  Find a broker to begin trading AMX now
Exchange: NYSE
Industry: Public Utilities
Community Rating:
View:    AMX Pre-Market
Symbol List Views
FlashQuotes InfoQuotes
Stock Details
Summary Quote Real-Time Quote After Hours Quote Pre-market Quote Historical Quote Option Chain
Basic Chart Interactive Chart
Company Headlines Press Releases Market Stream
Analyst Research Guru Analysis Stock Report Competitors Stock Consultant Stock Comparison
Call Transcripts Annual Report Income Statement Revenue/EPS SEC Filings Short Interest Dividend History
Ownership Summary Institutional Holdings Insiders
(SEC Form 4)
 Save Stocks

America Movil (AMX)
Q4 2005 Earnings Conference Call
February 8th 2006, 10:00 AM.


Daniel Hajj Aboumrad, Chief Executive Officer
Carlos José García Moreno Elizondo, Chief Financial Officer
Vera Rossi, Morgan Stanley


Vera Rossi, Morgan Stanley
Charles Goldman, Credit Suisse First Boston
Inge Heydorn, Deutsche Bank
Patrick Grenham, Citigroup
James Breen, Thomas Weisel Partners
Henry Cobbe, Thames River Capital
Rizwan Ali, Bear, Stearns & Co.
Jean-Charles Lemardeley, JP Morgan Chase & Co.
Mauricio Fernandes, Merrill Lynch
Tuong Nguyen, Gartner Group



Ladies and gentlemen, thank you for your standing by and welcome to the America Movil Conference Call. At this time, all lines are in a listen-only mode. Later there will be a question-and-answer session and instructions will be given at that time. If you do need assistance during the call today, please press the "*" followed by the "0" and an operator will help you offline. As a reminder, today's conference call is being recorded. At this time, I'd like to turn the conference over to Vera Rossi. Please go ahead.

Vera Rossi, Morgan Stanley

Thank you. Good morning for those of you in the U.S. and Latin America, and good afternoon for all of you in Europe. This is Vera Rossi and on behalf of Morgan Stanley we are pleased to be hosting America Movil's Fourth Quarter '05 Conference Call. Speaking today will be Daniel Hajj, Chief Executive Officer of America Movil, Carlos Garcia Moreno, Chief Financial Officer, and also with us Paulina Amieva, Head of Investor Relations. I will turn the speaker over to Daniel Hajj. Thank you, Daniel.

Daniel Hajj Aboumrad, Chief Executive Officer

Thank you, Vera. Good morning, everybody. Thank you for holding this conference and Carlos Garcia Moreno is going to make a small summary of what we have in the fourth quarter results.

Carlos José García Moreno Elizondo, Chief Financial Officer

Thank you, Vera. Good morning, everyone. First I'd like to thank Morgan Stanley for hosting this conference call today. As some of you have already seen in the notes that we had a very strong fourth quarter. We had net additions in the quarter of 9.7 million, which was a record for America Movil in terms of organic net gain. These net additions were well above the consensus. It was 1 million, exactly above the consensus number, and that means that we ended the year with a total of 32.2 million net additions. Again, this was a record. The previous record, which has been in 2004, had been a total of 17.2 million net additions. So the numbers here was mostly organic, of the 32.2 million net additions in 2005, roughly 29 million were organic.

One thing that is important to note is the net additions in the fourth quarter were substantially higher than what we had in the same period of 2004. At that time, we have had 7.4 million net additions. So, again, fourth quarter net additions 9.7 in 2005, 7.4 in 2004. As regards revenues, we had a total of 52.4 billion pesos in the fourth quarter. This implies an increase quarter-over-quarter of 13.4% and year-over-year of 27.6%. This number again, the fourth quarter EBITDA number was also higher than the highest estimate that we were seeing among the analysts that are following the company, and it helped us reach a total of 182 billion pesos for the year, which meant an increase over the previous year of nearly 31%.

One thing that is important to highlight is that, in most operations we saw sequential increases in our prepaid ARPUs in the fourth quarter relative to the third quarter, and this is important because it was probably something that was not seen before, given the strong seasonality for the fourth quarter when we are increasing significantly the number of new subscribers, and that typically tends to reduce initially the number for the ARPUs. So the fact that we were able to show increases in prepaid ARPU sequentially in a quarter that is strong as the fourth quarter from the point of seasonality, means that it's probably something that we will continue to see in the future.

Regarding the EBITDA number, we had 15.2 billion pesos in EBITDA in the fourth quarter of '05. This was an increase year-over-year of 45.6%. I think that it is important to note that the EBITDA margin in the fourth quarter was 29%, and was well above the one that we have seen a year before in the fourth quarter of '04; we had got 25.5%. So one more thing that is important to think that is, practically all of the operations with one transaction had increases in their EBITDA margin in the fourth quarter relative to what they had one year before. The EBITDA number by the way, was 7.5% higher than the consensus. One thing that is interesting yet to note is that the results that America Movil generated implied both more subscribers and more EBITDA than the market was expecting.

One thing, again, that is also important is that, EBITDA margins have been going up although subscriber growth has continued to be very strong in absolute terms, in relative terms it has come down, of necessity, and that is something that is helping drive the EBITDA margins up when we expect to get growth of the operations. Other than this result from operations, I would like to focus on a couple of additional points. One of them is the reorganization that we effected in the fourth quarter, this reorganization that effectively consisted in a rearrangement of the corporate shareholding that we had in America Movil. The initial structure that we had was something that was very much inherited from those days of Telmex and eventually we grew the structure as things came along, we started acquiring all of analyst companies in a number of spaces, and in the end we didn't have very efficient shareholding structure. So we moved to another one that has a number of benefits for the company.

Read the rest of this transcript for free on