America Movil says it made investment of 26 billion pesos or $1.5 billion towards Capex (capital expenditures) — mostly for the deployment of 4G and the expansion of fiber-optic networks – in the first quarter of 2016.
The investment of America Movil is not reflecting in the revenue growth. Revenue of America Movil reached 223 billion pesos (+1.4 percent) or $1.5 billion with service revenues increasing 0.3 percent, showing competition and sharp reductions in interconnection rates. Growth in fixed-broadband revenue was 7.9 percent, while PayTV revenues rose 5.9 percent.
Mobile data revenues of America Movil decelerated, particularly in Mexico and Brazil. Mobile voice revenues were impacted by sharp reductions in interconnection rates in Peru, Colombia, Brazil and Chile.
America Movil generated 32.1 percent revenue from wireless voice, 30.7 percent from wireless data, 13.2 percent from wireline voice, 15.8 percent from wireline data and 8.8 percent from Pay TV in the first quarter of 2016.
Net profit was 4.8 billion pesos in the quarter.
America Movil had 365 million users (–0.8 percent) including 284 million wireless subscribers, 34 million landlines, 26 million broadband users and 22 million PayTV units. The telecom operator lost users due to mobile disconnections. It lost 1.7 million wireless subscribers, while achieving 3.8 percent growth in fixed lines primarily due to 9.3 percent increase in broadband user base.
America Movil’s net debt totaled 577 billion pesos in March 2016 against 582 billion pesos in December 2015.
