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America Movil profit up in Q2 on lower financial costs
2014-07-22 09:17:00| Telecompaper Headlines
(Telecompaper) America Movil signaled plans to step up investment in networks as its revenue and customer growth started to slow. The company posted second-quarter revenues up 4.0 percent year-on-year to MXN 202.6 billion, while service revenues excluding currency effects increased 5.8 percent. EBITDA rose 2.4 percent to MXN 66.6 billion and increased 4.7 percent at constant exchange rates. Operating profit fell 3.3 percent to MXN 39.2 billion due to higher depreciation and amortisation of investments. Net profit was up 32.7 percent from a year ago to MXN 18.8 billion thanks to a reduction in financing costs. Capital expenditure reached MXN 45.6 billion in the quarter, or over 22 percent of revenues, while net debt was reduced by MXN 30.9 billion to 412.3 bilion. America Movil said it raised MXN 5.7 billion in the quarter in part from selling some of its shares in Dutch operator KPN. The operator finished the quarter with 338.7 million revenue-generating units, up by 3.0 percent from a year earlier. The mobile customer base rose by 524,000 in the three months, led by growth in Brazil and Mexico, to a total 266.9 million customers at the end of June. Fixed-line RGUs were up 1.2 million in the quarter to 71.8 million, including 309,000 new fixed telephony customers, 364,000 new broadband subscribers and 608,000 additional pay-TV clients.
Tags: lower
america
costs
financial
Category:Telecommunications