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

AMOV 
$25.64
*  
0.24
0.94%
Get AMOV Alerts
*Delayed - data as of Sep. 12, 2014  -  Find a broker to begin trading AMOV now
Exchange: NASDAQ
Industry: Public Utilities
Community Rating:
 
 
Symbol List Views
FlashQuotes InfoQuotes
Stock Details
Summary Quote Real-Time Quote After Hours Quote Pre-market Quote Historical Quote Option Chain
CHARTS
Basic Chart Interactive Chart
COMPANY NEWS
Company Headlines Press Releases Market Stream
STOCK ANALYSIS
Analyst Research Guru Analysis Stock Report Competitors Stock Consultant Stock Comparison
FUNDAMENTALS
Call Transcripts Annual Report Income Statement Revenue/EPS SEC Filings Short Interest Dividend History
HOLDINGS
Ownership Summary Institutional Holdings Insiders
(SEC Form 4)
 Save stocks for next time

America Movil SAB de CV (AMOV)

Q4 2012 Conference Call

February 13, 2013 10:00 am ET

Executives

Daniel Hajj Aboumrad – Chief Executive Officer

Carlos Jose Garcia Moreno Elizondo – Chief Financial and Administrative Officer

Oscar Von Hauske Solís – Chief Fixed Line Operations

Analysts

Alex García – Citibank

Dan Kwiatkowski – UBS Ltd.

Sean Glickenhaus – HSBC Securities USA, Inc.

Mauricio Fernandes – BofA Merril Lynch

Andrew Campbell – Credit Suisse

Alejandro Gallostra – BBVA Latam Research

Sumit Datta – New Street Research

Andrés Medina Mora – GBM Grupo Bursátil Mexicano SAB Casa de Bolsa

Andre Baggio – JPMorgan

Ric Prentiss – Raymond James & Associates, Inc.

Diego Aragão – Morgan Stanley

Presentation

Operator

Welcome to the América Móvil Fourth Quarter 2012 Conference Call and Webcast. Joining us this morning is Daniel Hajj, Chief Executive Officer; Carlos Garcia Moreno, Chief Financial Officer; Oscar Von Hauske, Chief Operating Officer; and Carlos Robles, Chief Financial Officer of Telmex. My name is Shenera, and I will be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the conference over to Mr. Daniel Hajj, Chief Executive Officer. Please proceed sir.

Carlos Garcia Moreno Elizondo

I will be taking the call from the beginning, it’s Carlos Garcia Moreno. Thank you all for participating in the call. We ended the year with 325.7 million accesses lines, 8.7% more than a year before. Our fixed line accesses includes 10.8% year-on-year on the back of PayTV and fixed broadband accesses, while our wireless subscriber base rose 8.2%.

We added 5.6 million wireless subscribers in the fourth quarter. After one-off disconnections of 1.5 million clients taking our net adds for the year to 19.8 million, which is 18% more than the prior year. Of the quarter’s net gains 1.8 million came from Brazil, because we got approximately half of the net additions of the market. 1.2 million from Mexico, and this is after disconnecting in Mexico 1 million. So after disconnecting 1 million, we got 1.2 million net. So total in the market that we obtained was 2.2 million, 753,000 from the U.S., and 409,000 from Colombia, with net additions more than doubling in Chile and the Caribbean.

Our postpaid base increased by 1.4 million clients in the fourth quarter. We added 1.3 million RGUs in the quarter bringing to 6.3 million the net RGUs adds for the year. Whereas financial volatility became more subdued in the fourth quarter, the uncertainty around the euro continued to subside, economic activity faced significant headwinds throughout the world with the recessionary situation in much of Europe appearing set to continue throughout 2013 and with the U.S. economy slowing down sharply. Some Latin American countries resented these trends.

América Móvil revenues reached 198 billion pesos in the quarter and 775 billion pesos in the full year. They were down 1.1% from the year earlier quarter in Mexican peso terms on account of the depreciation of various currencies versus the Mexican peso, particularly the U.S. dollar and the Brazilian real. Mobile data revenues continued to gain share of revenues and have come to represent one third of wireless revenues and 18% of total revenues.

At constant exchange rates service revenues were up 5.2% year-on-year and total revenues 5.8% compared to 6.1% and 6.5% in the third quarter. Service revenue growth improved from the prior quarter in all major regions except Mexico.

As regards of our main business lines, mobile data and PayTV were the drivers of revenue growth, with 33.3% and 20.2% respectively, while fixed line voice posted a 7.2% revenue decline continuing the trend seen over the last several quarters. Mobile voice revenues were down 1.7%, partly on account of the marked economic slowdown observed in several countries in the region particularly in Mexico that took place hand in hand with that of the U.S.

The quarter’s EBITDA totaled 61.7 billion pesos and that of the full year 260.7 billion pesos, with the quarter’s margin declining to 31.1% from 33.5% a year before. The reduction of the margin partly arises from the growth of PayTV and TracFone, that are lower margin businesses, but also reflects the continued migration to smartphones that has entailed somewhat larger subsidies and of course the OpEx effects of covering a large investment plan in place.

In reduction of the consolidated EBITDA margin you are dosing in Mexico and Brazil and there were even larger market declines in the U.S. or it came down 4.6 points and in Ecuador 3.24. So these countries together account for three quarters of our revenues in Mexico, Brazil, Ecuador and the U.S. The lower EBITDA margin was the main factor driving the all of the consolidated margin. The rise in of smartphones and accelerated subscriber growth were de facto in the U.S. and Ecuador where they account fully for the margin reduction. It is important basically to put in prospective, our growth in the U.S. has been very, very fast and in the U.S, the data services, it’s a relatively new part of the business, but it’s already doubled it’s data revenues year-on-year. And we are gaining a lot of share such that data is now accounting for approximately one-third of platforms owned 77% in another one year. So this is a new part of the business. Smartphone sales are becoming hugely important to continue to drive these data revenue growth.

Read the rest of this transcript for free on seekingalpha.com