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América Móvil’s second quarter of
2016 financial and operating report
Mexico City, July 28, 2016 - América Móvil, S.A.B. de C.V. (“América Móvil”) [BMV: AMX] [NYSE: AMX] [NASDAQ: AMOV] [LATIBEX: XAMXL], announced today its financial and operating results for the second quarter of 2016.
We ended June with 364.5 million access lines, 0.9% less than a year before, after net disconnections of 1.6 million prepaid subs in the quarter, most of them in Brazil. This figure includes 282.9 million wireless subscribers, 33.7 million landlines, 26.0 million broadband accesses and 22.0 million PayTV units.
On the mobile platform, the postpaid base was up 5.9% and the prepaid one was down 4.2%. On the fixed line platform, RGUs were up 3.6% year-on-year, driven by broadband accesses that rose 8.9%.
Second quarter revenues rose 6.1% from the year-earlier quarter to 233 billion pesos, with service revenues increasing 3.2%, reflecting the appreciation of several currencies vs. the Mexican peso. At constant exchange rates, service revenues were down 2.1% year-on-year.
EBITDA of 61 billion pesos declined 10.7% in Mexican pesos terms relative to the prior year, 13.2% at constant exchange rates.
We obtained a net profit of 7.7 billion pesos in the second quarter, down 45.2% from the year before. It was equivalent to 0.12 pesos per share or 0.13 dollars per ADR.
Our net debt stood at 608 billion pesos. In dollar terms, our net debt declined by 1.7 billion dollars at nominal exchange rates and by 1.2 billion in flow terms.
Our cash flow from operations, the distributions obtained from our shareholdings–particularly those in KPN–and the unwinding of currency swaps allowed us to finance capital expenditures amounting to 57.2 billion pesos, share buybacks of 5.2 billion pesos and acquisitions of equity interests of 3.4 billion pesos. In addition, they allowed us to further reduce our net debt.
América Móvil’s Subsidiaries as of June 2016 | |||
Country | Brand | Business | Equity Participation |
Mexico | Telcel | wireless | 100.0% |
Telmex | wireline | 98.7% | |
Sección Amarilla (1) | other | 98.4% | |
Telvista | other | 89.4% | |
Argentina | Claro | wireless | 100.0% |
Telmex | wireline | 99.7% | |
Brazil | Claro | wireless/wireline | 97.6% |
Chile | Claro | wireless | 100.0% |
Telmex(1) | wireline | 100.0% | |
Colombia | Claro | wireless | 99.4% |
Telmex | wireline | 99.3% | |
Costa Rica | Claro | wireless | 100.0% |
Dominicana | Claro | wireless/wireline | 100.0% |
Ecuador | Claro | wireless | 100.0% |
Telmex(1) | wireline | 98.4% | |
El Salvador | Claro | wireless/wireline | 95.8% |
Guatemala | Claro | wireless/wireline | 99.3% |
Honduras | Claro | wireless/wireline | 100.0% |
Nicaragua | Claro | wireless/wireline | 99.6% |
Panama | Claro | wireless/wireline | 100.0% |
Paraguay | Claro | wireless/wireline | 100.0% |
Peru | Claro | wireless/wireline | 100.0% |
Puerto Rico | Claro | wireless/wireline | 100.0% |
Uruguay | Claro | wireless/wireline | 100.0% |
USA | Tracfone | wireless | 100.0% |
Netherlands | KPN | wireless/wireline | 21.1% |
Austria | Telekom Austria | wireless/wireline | 59.7% |
(1) Equity Participation of Telmex Internacional of which América Móvil owns 97.84%. All companies are consolidated under the global consolidation method with the exception of KPN that since May, 2015 is deemed to be available for sale. |
América Móvil Fundamentals (IFRS) | ||
2Q16 | 2Q15 | |
Earnings per Share (Mex$) (1) | 0.12 | 0.21 |
Earning per ADR (US$) (2) | 0.13 | 0.27 |
EBITDA per Share (Mex$) | 0.93 | 1.02 |
EBITDA per ADR (US$) | 1.03 | 1.33 |
Net Income (millions of Mex$) | 7,700 | 14,048 |
Average Shares Outstanding (billion) | 65.69 | 67.11 |
(1) Net Income / Average Shares outstanding | ||
(2) 20 shares per ADR |
Relevant Events
On May 9th, our Peruvian subsidiary entered into an agreement to acquire 100% of the capital stock of Olo del Perú and TVS Wireless S.A.C., both of them companies that provide telecommunication services throughout Peru and hold spectrum in the 2.5 GHz band.
On May 26th, our Peruvian subsidiary acquired in a public auction 30 MHz of spectrum in the 700MHz frequency. The cost of the spectrum was 306 million dollars.
On June 9th, our subsidiary Telmex was notified of a resolution issued by the Instituto Federal de Telecomunicaciones related to the internet service UnoTV, by which the IFT resolved that the access to UnoTV’s content through Telmex’s network did not breach the prohibition to distribute television signals under its concession title.
On July 28th, in line with our commitments under the Syndicate Agreement entered into with ÖBIB in representation of the Republic of Austria, we sold to the market a part of our stake in Telekom Austria, bringing it down by 7.8% to 51.9%.
Access Lines
We ended June with 364.5 million access lines, 0.9% less than a year before, after mobile disconnections of 1.6 million prepaid subs, most of them in Brazil. Altogether we had 282.9 million wireless subscribers, 33.7 million landlines, 26.0 million broadband accesses and 22.0 million PayTV units.
Wireless Subscribers
Our wireless subscriber base ended June with 282.9 million clients, down 2.1% from a year before. Net disconnections topped one million subs, the majority of which took place in Brazil.
Wireless Subscribers as of June 2016 | |||||
Total(1) (Thousands) | |||||
Country | Jun’16 | Mar’16 | Var.% | Jun’15 | Var.% |
Argentina, Paraguay and Uruguay | 22,976 | 22,885 | 0.4% | 21,661 | 6.1% |
Austria & CEE | 20,482 | 20,530 | -0.2% | 20,005 | 2.4% |
Brazil | 64,264 | 65,289 | -1.6% | 71,202 | -9.7% |
Central America | 15,773 | 15,584 | 1.2% | 14,720 | 7.2% |
Caribbean | 5,373 | 5,331 | 0.8% | 5,193 | 3.5% |
Chile | 6,476 | 6,465 | 0.2% | 6,005 | 7.8% |
Colombia | 28,260 | 28,340 | -0.3% | 29,370 | -3.8% |
Ecuador | 8,864 | 8,665 | 2.3% | 9,923 | -10.7% |
Mexico | 73,108 | 73,495 | -0.5% | 72,633 | 0.7% |
Peru | 11,954 | 12,070 | -1.0% | 12,370 | -3.4% |
USA | 25,321 | 25,211 | 0.4% | 25,713 | -1.5% |
Total Wireless Lines | 282,851 | 283,865 | -0.4% | 288,796 | -2.1% |
(1) Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated. |
Our postpaid segment continued delivering growth as it registered an annual increase of 5.9% after net additions of 559 thousand in the quarter, including 188 thousand in Mexico and 145 thousand in Colombia. Mexico’s subscriber postpaid base increased 10.4%, Ecuador’s 8.9%, Brazil’s 6.2% and Peru’s 5.0%.
We registered net disconnections on the prepaid platform of 1.6 million, taking our subscriber base down 4.2% to 218.5 million clients. Amongst the disconnections, 1.1 million came from Brazil and 575 thousand from Mexico.
Overall, the best performing operations in terms of subscriber growth were Chile and the Central American block, registering increases of 7.8% and 7.2%, respectively. In Argentina our client base was up 5.5% over the year and in the Caribbean 3.5%.
Fixed Revenue Generating Units
We had 81.7 million fixed-line RGUs at the end of June, 3.6% more than a year before. The growth was driven by broadband accesses that expanded 8.9% over the year. The number of landlines was somewhat higher than a year before, mostly as a result of the improvements in Colombia. As regards PayTV, at the end of June we were just shy of 22 million units.
In Brazil we had 36.8 million fixed accesses, 0.8% more than a year before, with broadband units rising 7.1%. In Mexico we ended the quarter with 21.7 million fixed RGUs including nearly nine million fixed-broadband connections, 3.6% more than a year before. Colombia and the Central American block were our fastest growing operations, with accesses increasing 8.5% and 8.8%, respectively over the year.
Fixed-Line and Other Accesses (RGUs) as of June 2016 | |||||
Total(1) (Thousands) | |||||
Country | Jun’16 | Mar’16 | Var.% | Jun’15 | Var.% |
Argentina, Paraguay and Uruguay | 588 | 586 | 0.4% | 581 | 1.4% |
Austria & CEE | 5,609 | 5,594 | 0.3% | 4,509 | 24.4% |
Brazil | 36,809 | 36,876 | -0.2% | 36,516 | 0.8% |
Central America | 5,183 | 5,071 | 2.2% | 4,763 | 8.8% |
Caribbean | 2,601 | 2,553 | 1.9% | 2,431 | 7.0% |
Chile | 1,283 | 1,250 | 2.6% | 1,229 | 4.4% |
Colombia | 6,055 | 5,932 | 2.1% | 5,583 | 8.5% |
Ecuador | 354 | 354 | 0.0% | 368 | -3.8% |
Mexico | 21,722 | 21,694 | 0.1% | 21,606 | 0.5% |
Peru | 1,475 | 1,434 | 2.8% | 1,289 | 14.4% |
Total RGUs | 81,679 | 81,345 | 0.4% | 78,875 | 3.6% |
(1) Fixed Line, Broadband and Television (Cable & DTH). |
América Móvil Consolidated Results
The second quarter saw a recovery of several currencies vis-a-vis the U.S. dollar as the likelihood of new interest rates increases by the Fed appeared to wane. Some indicators pointed towards a stabilization of the main financial and economic variables in China, which had previously been a matter of concern for the international capital markets. In Latin America both the Brazilian real and the Colombian peso continued their come-back, but the Mexican peso weakened further.
Revenues rose 6.1% from the year-earlier quarter to 233 billion pesos, with service revenues increasing 3.2% as mobile revenues increased 5.5% and fixed-line revenues 7.4%. These increases reflect the appreciation of several currencies vs. the Mexican peso in the period, particularly the Brazilian real and the Colombian peso. At constant exchange rates service revenues were down 2.1% year-on-year.
Substantially all our operations maintained their growth trends in local currency terms. In Mexico, however, we saw a step down in revenues brought about mostly by more aggressive commercial plans in the pre-paid segment as a greater part of our subscribers moved towards unlimited call plans.
Our EBITDA amounted to 61 billion pesos, in what represented a 10.7% decline in Mexican pesos terms in relation to the prior year—13.2% at constant exchange rates—mostly on account of the above-mentioned revenue losses in Mexico, bringing about a 29.1% reduction in operating profits. These, in turn, brought about a 55% decrease in the provisions for income and deferred taxes in relation to the year-earlier quarter.
We obtained a net profit of 7.7 billion pesos in the second quarter, down 45.2% from the year before. It was equivalent to 0.12 pesos per share or 0.13 dollars per ADR.
Our net debt, 608 billion pesos, was up from 582 billion pesos in December because of exchange rate variations: In dollar terms our gross debt actually came down by 1.9 billion dollars in the first six months at nominal exchange rates, and by 1.5 billion dollars at constant exchange rates, while our net debt declined by 1.7 billion dollars at nominal exchange rates and by 1.2 billion in flow terms.
América Móvil’s Income Statement (IFRS) Millions of Mexican pesos | ||||||
2Q16 | 2Q15 | Var.% | Jan-Jun 16 | Jan-Jun 15 | Var.% | |
Service Revenues | 199,808 | 193,587 | 3.2% | 394,111 | 387,264 | 1.8% |
Equipment Revenues | 33,575 | 26,289 | 27.7% | 62,257 | 52,607 | 18.3% |
Total Revenues | 233,383 | 219,876 | 6.1% | 456,368 | 439,871 | 3.8% |
Cost of Service | 75,145 | 67,033 | 12.1% | 147,590 | 134,704 | 9.6% |
Cost of Equipment | 41,427 | 34,079 | 21.6% | 77,484 | 68,199 | 13.6% |
Selling, General & Administrative Expenses | 54,238 | 48,804 | 11.1% | 105,405 | 97,072 | 8.6% |
Others | 1,591 | 1,655 | -3.9% | 3,172 | 3,333 | -4.8% |
Total Costs and Expenses | 172,400 | 151,571 | 13.7% | 333,651 | 303,308 | 10.0% |
EBITDA | 60,983 | 68,305 | -10.7% | 122,717 | 136,563 | -10.1% |
% of Total Revenues | 26.1% | 31.1% | 26.9% | 31.0% | ||
Depreciation & Amortization | 35,224 | 31,988 | 10.1% | 68,917 | 62,534 | 10.2% |
EBIT | 25,758 | 36,316 | -29.1% | 53,801 | 74,030 | -27.3% |
% of Total Revenues | 11.0% | 16.5% | 11.8% | 16.8% | ||
Net Interest Expense | 7,241 | 5,699 | 27.0% | 14,188 | 11,913 | 19.1% |
Other Financial Expenses | -6,396 | -7,656 | 16.5% | 5,516 | -7,486 | 173.7% |
Foreign Exchange Loss | 11,826 | 12,935 | -8.6% | 13,665 | 30,768 | -55.6% |
Comprehensive Financing Cost (Income) | 12,671 | 10,978 | 15.4% | 33,369 | 35,194 | -5.2% |
Income & Deferred Taxes | 4,547 | 10,108 | -55.0% | 6,770 | 14,505 | -53.3% |
Net Income before Minority | ||||||
Interest and Equity Participation in Results | 8,540 | 15,230 | -43.9% | 13,661 | 24,330 | -43.9% |
of Affiliates | ||||||
Equity Participation in Results of Affiliates* | 33 | -1,395 | 102.3% | 70 | -1,389 | 105.0% |
Minority Interest | -873 | 213 | n.m. | -1,233 | -666 | -85.2% |
Net Income | 7,700 | 14,048 | -45.2% | 12,499 | 22,276 | -43.9% |
* Includes KPN | ||||||
n.m. Not meaningful |
Our cash flow from operations, the distributions obtained from our shareholdings–particularly those in KPN–and the unwinding of currency swaps allowed us to finance capital expenditures amounting to 57.2 billion pesos, share buybacks of 5.2 billion pesos and acquisitions of equity interests of 3.4 billion pesos. In addition they allowed us to further reduce our net debt.
Balance Sheet (in accordance with IFRS) - América Móvil Consolidated Millions of Mexican Pesos | |||||||
Jun '16 | Dec '15 | Var.% | Jun '16 | Dec '15 | Var.% | ||
Current Assets |
Current Liabilities |
||||||
Cash, Marketable | |||||||
Securities & Other Short | 106,025 | 101,508 | 4.5% |
Short Term Debt* |
105,727 | 119,590 | -11.6% |
Term Ivestments | |||||||
Accounts Receivable | 194,884 | 196,123 | -0.6% |
Accounts Payable |
288,899 | 249,632 | 15.7% |
Other Current Assets | 26,285 | 18,124 | 45.0% |
Other Current |
56,556 | 56,313 | 0.4% |
Inventories | 36,824 | 35,577 | 3.5% | 451,183 | 425,535 | 6.0% | |
364,019 | 351,332 | 3.6% | |||||
Non Current Assets |
Non Current Liabilities |
||||||
Plant & Equipment | 646,936 | 573,529 | 12.8% |
Long Term Debt |
608,578 | 563,627 | 8.0% |
Investments in Affiliates | 3,484 | 3,111 | 12.0% |
Other Liabilities |
161,178 | 146,470 | 10.0% |
769,756 | 710,097 | 8.4% | |||||
Deferred Assets | |||||||
Goodwill (Net) | 146,445 | 137,114 | 6.8% | ||||
Intangible Assets | 118,834 | 101,750 | 16.8% |
Shareholder's Equity |
217,836 | 160,854 | 35.4% |
Deferred Assets | 159,058 | 129,652 | 22.7% | ||||
Total Assets | 1,438,775 | 1,296,487 | 11.0% |
Total Liabilities |
1,438,775 | 1,296,487 | 11.0% |
*Includes current portion of Long Term Debt. |
Financial Debt of América Móvil Millions of U.S. dollars equivalent | ||
Jun-16 | Dec-15 | |
Peso - denominated debt | 4,078 | 5,022 |
Bonds and other securities | 3,929 | 4,869 |
Banks and others | 149 | 153 |
U.S. Dollar - denominated debt | 13,413 | 14,965 |
Bonds and other securities | 12,631 | 12,670 |
Banks and others | 782 | 2,295 |
Debt denominated in other currencies | 20,281 | 19,720 |
Bonds and other securities | 19,682 | 19,121 |
Banks and others | 598 | 599 |
Total Debt* | 37,771 | 39,707 |
Cash, Marketable Securities and Short Term |
5,606 | 5,899 |
Net Debt** | 32,165 | 33,808 |
*Includes the full face value of our hybrid bonds. | ||
**Does not include the net value of our derivatives position. |
Mexico
Our wireless subscriber base ended June with 73.1 million clients, 0.7% more than a year before. We had net disconnections of 387 thousand in the second quarter, which resulted from cutting-off 575 thousand prepaid clients that were not generating traffic, while adding 188 thousand postpaid subs. Our postpaid base rose 10.4% year-on-year to 11.6 million subscribers.
On the fixed-line platform we ended the quarter with 21.7 million RGUs including 12.8 million landlines and 8.9 million broadband connections. The growth of broadband accesses, 3.6%, more than compensated for voice-line disconnections, leading to a 0.5% increase in RGUs over the year. Our not being allowed yet to provide triple-play bundles has limited our capacity to expand in the fixed-line platform.
Service revenues declined 10.7% year-on-year to 49.4 billion pesos, mostly because of continued reductions in prepaid revenues as we moved a greater part of our subscribers over to the new unlimited plans that involve unlimited calling (and more data usage) for the duration of the cards. Prepaid cards come in different denominations and their life is a function of the given denomination.
Mobile service revenues were down 16.9% over the prior year, mainly on account of reduced prepaid revenues. On the fixed-line platform service revenues declined 1.5%.
In the prepaid segment, our customers are strongly increasing voice and data traffic per subscriber –up to six times more– and paying less than a year ago. This presents us with an important opportunity to significantly expand the services we provide our customers, leveraging the unmatched quality, coverage and capacity of our network.
Equipment revenues increased 23% reflecting both the depreciation of the currency and the fact that subsidies have been reduced.
The Mexican mobile market has become very competitive as other operators try to buy market share –even losing money in the process, after asymmetric subsidies– with plans that are substantially cheaper than the ones they offer in their home market. They have led the market in the direction of unlimited usage of some services at a low cost.
INCOME STATEMENT (IFRS) - Mexico Millions of MxP | ||||||
2Q16 | 2Q15 | Var.% | Jan - Jun 16 | Jan - Jun 15 | Var.% | |
Total Revenues | 65,118 | 68,059 | -4.3% | 129,934 | 134,621 | -3.5% |
Total Service Revenues | 49,425 | 55,343 | -10.7% | 100,630 | 110,846 | -9.2% |
Wireless Revenues | 41,876 | 44,906 | -6.7% | 83,536 | 88,021 | -5.1% |
Service Revenues | 27,913 | 33,580 | -16.9% | 57,213 | 67,265 | -14.9% |
Equipment Revenues | 13,712 | 11,144 | 23.0% | 25,330 | 20,589 | 23.0% |
Fixed Line and Other Revenues | 25,115 | 24,721 | 1.6% | 49,948 | 49,657 | 0.6% |
EBITDA | 21,502 | 28,196 | -23.7% | 44,687 | 55,967 | -20.2% |
% total revenues | 33.0% | 41.4% | 34.4% | 41.6% | ||
EBIT | 14,842 | 21,722 | -31.7% | 31,576 | 43,065 | -26.7% |
% | 22.8% | 31.9% | 24.3% | 32.0% | ||
*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. |
Mexico Operating Data (IFRS) | |||
2Q16 | 2Q15 | Var.% | |
Wireless Subscribers (thousands) | 73,108 | 72,633 | 0.7% |
Postpaid | 11,619 | 10,522 | 10.4% |
Prepaid | 61,489 | 62,111 | -1.0% |
MOU | 420 | 262 | 60.0% |
ARPU (MxP) | 127 | 155 | -17.7% |
Churn (%) | 4.6% | 3.7% | 0.8 |
Revenue Generating Units (RGUs) * | 21,722 | 21,606 | 0.5% |
Fixed Lines | 12,826 | 13,017 | -1.5% |
Broadband | 8,896 | 8,589 | 3.6% |
* Fixed Line and Broadband |
Argentina, Paraguay and Uruguay
At the end of June we had nearly 23 million wireless subscribers in Argentina, Paraguay and Uruguay; 6.1% more than last year, having added 91 thousand new clients in the second quarter. We also had 588 thousand fixed RGUs.
Second quarter revenues totaled 9.4 billion Argentinean pesos, exceeding by 40.1% those of the prior year, with wireless service revenues rising 32.5% on the back of data revenues that jumped 53.2%. Data services now account for 56.5% of wireless service revenues. Albeit from a small base, fixed-line revenues climbed 56.7% to reach 667 million Argentinean pesos.
EBITDA of 3.1 billion Argentinean pesos was up 33.7% year-on-year, with the EBITDA margin declining slightly to 33.3%.
We formally launched our 4G-LTE services in Paraguay in the second quarter. This will strengthen our position in market, as we will improve the customer experience both in terms of quality and speed.
INCOME STATEMENT (IFRS) - Argentina, Paraguay & Uruguay Millions of ARP | ||||||
2Q16 | 2Q15 | Var.% | Jan - Jun 16 | Jan - Jun 15 | Var.% | |
Total Revenues | 9,410 | 6,718 | 40.1% | 18,497 | 13,464 | 37.4% |
Total Service Revenues | 6,943 | 5,418 | 28.1% | 14,271 | 10,524 | 35.6% |
Wireless Revenues | 8,818 | 6,330 | 39.3% | 17,352 | 12,683 | 36.8% |
Service Revenues | 6,667 | 5,033 | 32.5% | 13,115 | 9,747 | 34.6% |
Equipment Revenues | 2,145 | 1,298 | 65.3% | 4,226 | 2,935 | 44.0% |
Fixed Line and Other Revenues | 667 | 426 | 56.7% | 1,277 | 854 | 49.5% |
EBITDA | 3,131 | 2,342 | 33.7% | 6,396 | 4,611 | 38.7% |
% total revenues | 33.3% | 34.9% | 34.6% | 34.2% | ||
EBIT | 2,399 | 1,866 | 28.5% | 4,983 | 3,696 | 34.8% |
% | 25.5% | 27.8% | 26.9% | 27.5% | ||
*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. |
Argentina, Paraguay & Uruguay Operating Data (IFRS) | |||
2Q16 | 2Q15 | Var.% | |
Wireless Subscribers (thousands) | 22,976 | 21,661 | 6.1% |
Postpaid | 2,504 | 2,716 | -7.8% |
Prepaid | 20,472 | 18,946 | 8.1% |
MOU | 98 | 124 | -21.3% |
ARPU (ARP) | 98 | 77 | 27.3% |
Churn (%) | 2.2% | 2.7% | (0.5) |
Revenue Generating Units (RGUs) * | 588 | 581 | 1.4% |
* Fixed Line, Broadband and PayTV. |
Brazil
We ended the second quarter with just over 101 million accesses in Brazil, including 64.3 million wireless subscribers and, on the fixed-line platform, 36.8 million RGUs, slightly more than in 2015.
In the postpaid segment we registered a 6.2% expansion of the base year-on-year after net additions of 82 thousand subs in the quarter. In the prepaid segment we continued to disconnect clients that were not generating traffic, with 1.1 million net disconnections in the quarter. On the fixed-line platform broadband connections expanded 7.1% over the year.
Second quarter revenues of 9.1 billion reais remained practically unchanged as compared to the year-earlier quarter. On the fixed division, we saw improvements in all revenue lines, 9.6% on broadband, 4.4% on PayTV and 1.6% in fixed voice. On the mobile platform the decline of voice revenues—part of it coming from the reduction of interconnection rates—is diminishing, but mobile data services fell on account of new promotions.
The period’s EBITDA of 2.4 billion reais was 4.5% lower than a year before, with the EBITDA margin coming down 1.2 percentage points to 26.2% mainly as a result of increases in maintenance costs, some of them dollar-linked, and past due accounts that have risen on the back of the economic recession afflicting the country. Energy costs have also gone up considerably, almost 45% over the year.
We are ready to welcome all the athletes and visitors to the Rio Olympic games. We executed an important project to be the official telecom service provider for the games and all the venues are now connected to Embratel’s backbone, which has been enhanced in Rio and surrounding areas to provide very high quality services.
INCOME STATEMENT (IFRS) - Brazil Millions of BrL | ||||||
2Q16 | 2Q15 | Var.% | Jan - Jun 16 | Jan - Jun 15 | Var.% | |
Total Revenues | 9,084 | 9,095 | -0.1% | 18,038 | 18,108 | -0.4% |
Total Service Revenues | 8,751 | 8,764 | -0.2% | 17,453 | 17,443 | 0.1% |
Wireless Revenues | 2,946 | 3,274 | -10.0% | 5,952 | 6,541 | -9.0% |
Service Revenues | 2,616 | 2,949 | -11.3% | 5,372 | 5,893 | -8.8% |
Equipment Revenues | 332 | 325 | 1.9% | 581 | 647 | -10.1% |
Fixed Line and Other Revenues | 6,137 | 5,821 | 5.4% | 12,086 | 11,568 | 4.5% |
EBITDA | 2,379 | 2,493 | -4.5% | 4,736 | 4,821 | -1.8% |
% total revenues | 26.2% | 27.4% | 26.3% | 26.6% | ||
EBIT | 194 | 515 | -62.3% | 340 | 901 | -62.2% |
% | 2.1% | 5.7% | 1.9% | 5.0% | ||
*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. |
Brazil Operating Data (IFRS) | |||
2Q16 | 2Q15 | Var.% | |
Wireless Subscribers (thousands) | 64,264 | 71,202 | -9.7% |
Postpaid | 16,952 | 15,956 | 6.2% |
Prepaid | 47,313 | 55,246 | -14.4% |
MOU | 103 | 100 | 3.2% |
ARPU (BrL) | 13 | 14 | -1.9% |
Churn (%) | 3.7% | 3.4% | 0.3 |
Revenue Generating Units (RGUs) * | 36,809 | 36,516 | 0.8% |
* Fixed Line, Broadband and Television |
Chile
Our wireless subscriber base ended June with 6.5 million clients, 7.8% more than a year before. Fixed RGUs increased 4.4% relative to 2015, for the most part on account of a 14.5% expansion of broadband accesses.
The quarter’s revenues, 186 billion Chilean pesos, were down 3.8% year-on-year. The decline in revenues is linked to a 44.1% drop in equipment revenues, since service revenues actually rose 4.3% over the period, with wireless data revenues rising 10.1%. Fixed-line service revenues, that already account for almost 40% of revenues, expanded 4.4% in the period.
EBITDA came in at 13.9 billion Chilean pesos, 35.6% more than in the year-earlier quarter. The EBITDA margin was 7.5% in the second quarter, 2.2 points higher than a year before.
INCOME STATEMENT (IFRS) - Chile Millions of ChPL | ||||||
2Q16 | 2Q15 | Var.% | Jan - Jun 16 | Jan - Jun 15 | Var.% | |
Total Revenues | 185,718 | 192,993 | -3.8% | 366,424 | 370,380 | -1.1% |
Total Service Revenues | 167,702 | 160,762 | 4.3% | 333,724 | 319,220 | 4.5% |
Wireless Revenues | 121,934 | 131,056 | -7.0% | 240,152 | 247,970 | -3.2% |
Service Revenues | 104,005 | 98,945 | 5.1% | 206,865 | 197,069 | 5.0% |
Equipment Revenues | 18,016 | 32,232 | -44.1% | 32,700 | 51,160 | -36.1% |
Fixed Line and Other Revenues | 69,355 | 67,057 | 3.4% | 137,403 | 132,504 | 3.7% |
EBITDA | 13,854 | 10,217 | 35.6% | 27,127 | 21,108 | 28.5% |
% total revenues | 7.5% | 5.3% | 7.4% | 5.7% | ||
EBIT | -38,909 | -41,723 | 6.7% | -78,414 | -81,049 | 3.3% |
% | -21.0% | -21.6% | -21.4% | -21.9% | ||
*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. |
Chile Operating Data (IFRS) | |||
2Q16 | 2Q15 | Var.% | |
Wireless Subscribers (thousands) | 6,476 | 6,005 | 7.8% |
Postpaid | 1,482 | 1,428 | 3.8% |
Prepaid | 4,993 | 4,577 | 9.1% |
MOU | 142 | 159 | -10.2% |
ARPU (ChP) | 5,452 | 5,626 | -3.1% |
Churn (%) | 5.5% | 5.4% | 0.1 |
Revenue Generating Units (RGUs) * | 1,283 | 1,229 | 4.4% |
* Fixed Line, Broadband and Television |
Colombia
We gained 145 thousand postpaid clients in the second quarter—the highest number in at least ten quarters—and disconnected 225 thousand prepaid subscribers to close the quarter with 28.3 million clients. Our postpaid base, 6.1 million at the end of June, rose 4.7% from the year-earlier quarter. On the fixed-line front, RGUs were up 8.5% over the year to 6.1 million accesses, with voice lines and broadband accesses exhibiting double digit growth rates.
Second quarter revenues of 2.7 trillion Colombian pesos were down 3.9% year-on-year, with service revenues falling 4.3% and equipment revenues declining 2.0%. Fixed-line revenues increased 13% in the period—they now represent 34.8% of our service revenues in the country—on the back of triple play bundles. Wireless service revenues on their part were down 10.5%, as voice prices continued to fall. Wireless data revenues were up 17.2% and already account for nearly half of our wireless service revenues
EBITDA of 957 billion Colombian pesos was 11.4% lower than in 2015 following the revenue contraction. The EBITDA margin for the quarter was 35.6%, three points below that of the prior year.
INCOME STATEMENT (IFRS) - Colombia Billions of COP | ||||||
2Q16 | 2Q15 | Var.% | Jan - Jun 16 | Jan - Jun 15 | Var.% | |
Total Revenues | 2,689 | 2,797 | -3.9% | 5,400 | 5,651 | -4.4% |
Total Service Revenues | 2,137 | 2,233 | -4.3% | 4,352 | 4,585 | -5.1% |
Wireless Revenues | 1,973 | 2,153 | -8.4% | 3,988 | 4,381 | -9.0% |
Service Revenues | 1,411 | 1,577 | -10.5% | 2,913 | 3,286 | -11.3% |
Equipment Revenues | 545 | 564 | -3.4% | 1,033 | 1,066 | -3.1% |
Fixed Line and Other Revenues | 744 | 658 | 13.0% | 1,460 | 1,297 | 12.5% |
EBITDA | 957 | 1,080 | -11.4% | 1,936 | 2,202 | -12.1% |
% total revenues | 35.6% | 38.6% | 35.9% | 39.0% | ||
EBIT | 519 | 688 | -24.5% | 1,065 | 1,433 | -25.7% |
% | 19.3% | 24.6% | 19.7% | 25.4% | ||
*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. |
Colombia Operating Data (IFRS) | |||
2Q16 | 2Q15 | Var.% | |
Wireless Subscribers* (thousands) | 28,260 | 29,370 | -3.8% |
Postpaid | 6,083 | 5,811 | 4.7% |
Prepaid | 22,177 | 23,559 | -5.9% |
MOU | 209 | 209 | 0.0% |
ARPU (COP) | 16,557 | 17,682 | -6.4% |
Churn (%) | 4.4% | 4.3% | 0.1 |
Revenue Generating Units (RGUs)** | 6,055 | 5,583 | 8.5% |
*Due to differences in the policy for accounting active subscribers, the figures in this report are different from those published by the Ministry of Communications of Colombia (MinTIC). | |||
** Fixed Line, Broadband and Television |
Ecuador
At the end of June we had 8.9 million wireless subscribers in Ecuador, having added 199 thousand subscribers in the quarter.
Our second quarter revenues totaled 364 million dollars. Service revenues declined 11.9% year on year, partly as a result of new commercial promotions but also on account of a new 15% tax levied on telecommunication services that took effect beginning May 1st, as well as an increase in VAT from 12% to 14%, that have increased the cost of telecom services to our clients and has thereby reduced their consumption.
EBITDA came in at 152 million dollars and was down 12.4% from the prior year, with the EBITDA representing 41.6% of revenues. We made some extraordinary payments of 16 million dollars in the second quarter, all of them tax-related, in absence of which we would have had an expansion of the EBITDA margin.
INCOME STATEMENT (IFRS) - Ecuador Millions of Dollars | ||||||
2Q16 | 2Q15 | Var.% | Jan - Jun 16 | Jan - Jun 15 | Var.% | |
Total Revenues | 364 | 406 | -10.2% | 729 | 816 | -10.6% |
Total Service Revenues | 312 | 354 | -11.9% | 631 | 717 | -12.0% |
Wireless Revenues | 352 | 393 | -10.5% | 704 | 789 | -10.8% |
Service Revenues | 300 | 342 | -12.3% | 606 | 692 | -12.4% |
Equipment Revenues | 52 | 51 | 1.4% | 98 | 98 | -0.2% |
Fixed Line and Other Revenues | 16 | 16 | -2.6% | 31 | 32 | -4.0% |
EBITDA | 152 | 173 | -12.4% | 304 | 349 | -12.8% |
% total revenues | 41.6% | 42.6% | 41.7% | 42.7% | ||
EBIT | 100 | 121 | -17.7% | 200 | 247 | -18.9% |
% | 27.4% | 29.9% | 27.4% | 30.3% | ||
*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. |
Ecuador Operating Data (IFRS) | |||
2Q16 | 2Q15 | Var.% | |
Wireless Subscribers (thousands) | 8,864 | 9,923 | -10.7% |
Postpaid | 2,650 | 2,433 | 8.9% |
Prepaid | 6,214 | 7,490 | -17.0% |
MOU | 213 | 184 | 15.6% |
ARPU (US$) | 11 | 11 | 2.2% |
Churn (%) | 3.2% | 5.5% | (2.3) |
Revenue Generating Units (RGUs) * | 354 | 368 | -3.8% |
* Fixed Line, Broadband and Television |
Peru
We added 23 thousand postpaid subscribers and disconnected 139 thousand prepaid clients to finish the second quarter with nearly 12 million subscribers, 3.4% below the prior year. On the fixed platform we had 1.5 million RGUs, up 14.4% year-on-year.
Our second quarter revenues, 1.3 billion soles, were down 2.0% year on year with service revenues declining 2.6% in the period as voice revenues continued their trend downwards. Wireless data revenues were up 7.4% but failed to compensate for the reduction in voice revenues. On the fixed-line segment, we saw service revenues increase 9.8%, from a small base, driven by broadband and PayTV, whose revenues climbed 12.1% and 14.6%, respectively.
EBITDA dropped 36.2% to 210 million soles, or 16.5% of revenues. The contraction of EBITDA stems from an 80% increase in net interconnection costs, as well as higher subscriber acquisition and retention costs.
In May we acquired in a public auction 30 MHz of spectrum in the 700MHz frequency. The cost of the spectrum was 306 million dollars. Our spectrum holdings will increase with the acquisition of Olo Peru, in the process of being approved by the relevant authorities. This will enable us to improve our 4G-LTE offerings in terms of the overall experience of our subscribers including more competitive prices.
INCOME STATEMENT (IFRS) - Peru Millions of Soles | ||||||
2Q16 | 2Q15 | Var.% | Jan - Jun 16 | Jan - Jun 15 | Var.% | |
Total Revenues | 1,270 | 1,296 | -2.0% | 2,542 | 2,654 | -4.2% |
Total Service Revenues | 1,106 | 1,136 | -2.6% | 2,233 | 2,333 | -4.3% |
Wireless Revenues | 1,059 | 1,102 | -3.8% | 2,123 | 2,270 | -6.5% |
Service Revenues | 882 | 935 | -5.7% | 1,794 | 1,940 | -7.5% |
Equipment Revenues | 163 | 158 | 3.2% | 306 | 316 | -3.4% |
Fixed Line and Other Revenues | 211 | 194 | 8.7% | 420 | 384 | 9.3% |
EBITDA | 210 | 329 | -36.2% | 465 | 728 | -36.1% |
% total revenues | 16.5% | 25.4% | 18.3% | 27.4% | ||
EBIT | 38 | 175 | -78.4% | 128 | 424 | -69.7% |
% | 3.0% | 13.5% | 5.0% | 16.0% | ||
*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. |
Peru Operating Data (IFRS) | |||
2Q16 | 2Q15 | Var.% | |
Wireless Subscribers (thousands) | 11,954 | 12,370 | -3.4% |
Postpaid | 4,130 | 3,935 | 5.0% |
Prepaid | 7,824 | 8,435 | -7.2% |
MOU | 166 | 153 | 8.7% |
ARPU (Sol) | 24 | 25 | -3.0% |
Churn (%) | 5.6% | 4.7% | 0.9 |
Revenue Generating Units (RGUs) * | 1,475 | 1,289 | 14.4% |
* Fixed Line, Broadband and Television |
Central America
Our operations in Central America finished June with 15.8 million wireless subscribers, 7.2% more than a year before, with our postpaid base growing almost twice as much as the prepaid one. We added 189 thousand new wireless subscribers in the quarter, primarily from Guatemala and Nicaragua. Fixed RGUs expanded 8.8% compared to a year before and reached 5.2 million. Broadband accesses jumped 18.1% year-on-year, while PayTV units were up 5.7%.
Revenues totaled 564 million dollars and were 5.0% higher than a year before. Service revenues rose 5.1% on the back of data that expanded 15.4% on the mobile platform and 12.7% on the fixed one. PayTV revenues exceeded by 8.3% those of 2015. Voice revenues declined on all platforms, 1.1% on mobile and 7.2% on the fixed.
EBITDA for the quarter came in at 195 million dollars, 7.0% above the precedent year, and was equivalent to 34.6% of revenues.
INCOME STATEMENT (IFRS) - Central America Millions of Dollars | ||||||
2Q16 | 2Q15 | Var.% | Jan - Jun 16 | Jan - Jun 15 | Var.% | |
Total Revenues | 564 | 537 | 5.0% | 1,115 | 1,062 | 4.9% |
Total Service Revenues | 524 | 503 | 4.2% | 1,042 | 999 | 4.3% |
Wireless Revenues | 382 | 358 | 6.7% | 756 | 704 | 7.3% |
Service Revenues | 341 | 324 | 5.4% | 681 | 640 | 6.4% |
Equipment Revenues | 39 | 33 | 16.6% | 72 | 63 | 14.4% |
Fixed Line and Other Revenues | 186 | 182 | 2.2% | 367 | 363 | 0.9% |
EBITDA | 195 | 182 | 7.0% | 386 | 357 | 8.3% |
% total revenues | 34.6% | 34.0% | 34.7% | 33.6% | ||
EBIT | 59 | 29 | 105.5% | 115 | 60 | 91.6% |
% | 10.5% | 5.4% | 10.3% | 5.6% | ||
*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. |
Central America Operating Data (IFRS) | |||
2Q16 | 2Q15 | Var.% | |
Wireless Subscribers (thousands) | 15,773 | 14,720 | 7.2% |
Postpaid | 2,305 | 2,064 | 11.7% |
Prepaid | 13,468 | 12,657 | 6.4% |
MOU | 167 | 192 | -13.3% |
ARPU (US$) | 7 | 8 | -2.8% |
Churn (%) | 6.1% | 5.6% | 0.5 |
Revenue Generating Units (RGUs) * | 5,183 | 4,763 | 8.8% |
* Fixed Line, Broadband and Television |
Caribbean
Our operations in the islands ended the quarter with 5.4 million wireless subscribers, up 3.5% with the postpaid base rising 8.6%. On the fixed division, we registered an increase of 7.0% in the total number of RGUs with PayTV units growing 18.5% and broadband accesses 9.6%.
The quarter’s revenues were up 6.8% mostly on account of higher equipment revenues. Service revenues declined slightly, 1.6%, as voice revenues continued to go down on both the mobile and fixed-line platforms.
EBITDA of 157 million dollars was 2.5% lower than a year before. The EBITDA margin stood at 31.6% of revenues.
INCOME STATEMENT (IFRS) - Caribbean Millions of Dollars | ||||||
2Q16 | 2Q15 | Var.% | Jan - Jun 16 | Jan - Jun 15 | Var.% | |
Total Revenues | 498 | 466 | 6.8% | 966 | 938 | 3.0% |
Total Service Revenues | 432 | 444 | -2.8% | 865 | 893 | -3.2% |
Wireless Revenues | 285 | 254 | 12.2% | 542 | 514 | 5.3% |
Service Revenues | 224 | 237 | -5.2% | 450 | 480 | -6.2% |
Equipment Revenues | 62 | 18 | 238.1% | 93 | 36 | 160.6% |
Fixed Line and Other Revenues | 213 | 212 | 0.3% | 425 | 423 | 0.3% |
EBITDA | 157 | 162 | -2.5% | 290 | 303 | -4.4% |
% total revenues | 31.6% | 34.6% | 30.0% | 32.3% | ||
EBIT | 88 | 79 | 11.0% | 140 | 135 | 3.3% |
% | 17.6% | 16.9% | 14.5% | 14.4% | ||
*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. |
Caribbean Operating Data (IFRS) | |||
2Q16 | 2Q15 | Var.% | |
Wireless Subscribers (thousands) | 5,373 | 5,193 | 3.5% |
Postpaid | 1,738 | 1,600 | 8.6% |
Prepaid | 3,634 | 3,593 | 1.2% |
MOU | 282 | 303 | -6.7% |
ARPU (US$) | 14 | 15 | -8.6% |
Churn (%) | 3.7% | 3.3% | 0.4 |
Revenue Generating Units (RGUs) * | 2,601 | 2,431 | 7.0% |
* Fixed Line, Broadband and Television |
United States
In the second quarter we added 110 thousand new clients in the U.S.—with June being the strongest month in the past two years—to finish the quarter with 25.3 million subscribers.
The quarter’s revenues stood at 1.8 billion dollars and were 5.0% greater than those of a year before, with equipment revenues rising 95.1% and service revenues declining 1.1%. The surge in subscriber growth had a significant impact on EBITDA, which at 77 million dollars was down 61% on subscriber acquisition costs.
INCOME STATEMENT (IFRS) - United States Millions of Dollars | ||||||
2Q16 | 2Q15 | Var.% | Jan - Jun 16 | Jan - Jun 15 | Var.% | |
Total Revenues | 1,775 | 1,691 | 5.0% | 3,530 | 3,506 | 0.7% |
Service Revenues | 1,563 | 1,581 | -1.1% | 3,129 | 3,154 | -0.8% |
Equipment Revenues | 212 | 109 | 95.1% | 402 | 352 | 14.2% |
EBITDA | 77 | 197 | -61.0% | 239 | 411 | -41.9% |
% total revenues | 4.3% | 11.7% | 6.8% | 11.7% | ||
EBIT | 66 | 185 | -64.6% | 216 | 388 | -44.3% |
% | 3.7% | 11.0% | 6.1% | 11.1% |
United States Operating Data (IFRS) | |||
2Q16 | 2Q15 | Var.% | |
Wireless Subscribers (thousands) | 25,321 | 25,713 | -1.5% |
MOU | 496 | 522 | -4.9% |
ARPU (US$) | 21 | 21 | 0.9% |
Churn (%) | 4.3% | 4.0% | 0.2 |
Telekom Austria Group
Altogether, our operations in Europe ended June with 20.5 million wireless subscribers, 2.4% higher than in 2015 reflecting the acquisitions in Eastern Europe, in absence of which our subscriber base would have been down 0.4%. Our postpaid base was up 4.2% relative to last year’s—2.1% organically—after net additions of 37 thousand in the quarter, most of which came from Austria. We also had 5.6 million fixed RGUs, 24.1% more than in the prior year, 2.7% adjusting for acquisitions.
Total revenues topped one billion euros in the second quarter, reflecting a slight decline of 0.2% year-on-year in a proforma basis. Total reported revenues in Austria rose by 0.4% on the back of higher equipment revenues and other operating income which compensated for the losses in service revenues that derive from the elimination of roaming, beginning April 30th. In Eastern Europe, we saw pressure in revenues stemming from Belarus (mostly FX linked), Macedonia and Slovenia.
The group’s EBITDA rose 0.7% to reach 329 million euros in the second quarter due to cost controls and important reductions in restructuring expenses. The EBITDA margin for the period stood at 31.9% of revenues.
INCOME STATEMENT (IFRS) - Telekom Austria Group- Pro-forma Millions of Euros | ||||||
2Q16 | 2Q15 | Var.% | Jan - Jun 16 | Jan - Jun 15 | Var.% | |
Total Revenues | 1,031 | 1,032 | -0.2% | 2,040 | 2,065 | -1.2% |
Total Service Revenues | 929 | 951 | -2.3% | 1,843 | 1,905 | -3.2% |
Wireless Revenues | 647 | 649 | -0.3% | 1,276 | 1,298 | -1.7% |
Service Revenues | 532 | 558 | -4.7% | 1,052 | 1,090 | -3.5% |
Equipment Revenues | 94 | 75 | 25.4% | 184 | 149 | 23.3% |
Fixed Line and Other Revenues | 384 | 384 | 0.0% | 764 | 767 | -0.3% |
EBITDA | 329 | 327 | 0.7% | 664 | 670 | -0.9% |
% total revenues | 31.9% | 31.7% | 32.5% | 32.4% | ||
EBIT | 114 | 118 | -2.9% | 232 | 257 | -9.7% |
% | 11.1% | 11.4% | 11.4% | 12.4% | ||
*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. |
Telekom Austria Group Operating Data (IFRS) Pro-forma (1) | |||
2Q16 | 2Q15 | Var.% | |
Wireless Subscribers (thousands) | 20,482 | 20,573 | -0.4% |
Postpaid | 14,845 | 14,539 | 2.1% |
Prepaid | 5,637 | 6,034 | -6.6% |
MOU | 309 | 306 | 0.9% |
ARPU (Euros) | 9 | 9 | -4.6% |
Churn (%) | 1.8% | 1.9% | (0.1) |
Revenue Generating Units (RGUs) * | 5,609 | 5,462 | 2.7% |
(1) 2015 figures adjusted for acquisitions in Bulgaria, Croacia and Macedonia. * Fixed Line, Broadband and Television. |
We will host our conference call to discuss 2Q16 financial and operating results on August 2nd at 9:00am Mexico City time. To access the call please log on to www.americamovil.com/investors.
Glossary of Terms
ARPU | Average Revenue per User. The ratio of service revenues in a given period to the average number of wireless subscribers in the same period. It is presented on a monthly basis. |
ARPM | Average Revenue per Minute. The ratio of service revenues to airtime traffic. |
Capex | Capital Expenditure. Accrued capital expenditures related to the expansion of the telecommunications infrastructure. |
Churn | Disconnection Rate. The ratio of wireless subscribers disconnected during a given period to the number of wireless subscribers at the beginning of that period. |
EBIT | Earnings Before Interest and Taxes, also known as Operating Profit. |
EBIT | The ratio of EBIT to total operating revenue. |
margin | |
EBITDA | Earnings Before Interest, Taxes, Depreciation, and Amortization. |
EBITDA | The ratio of EBITDA to total operating revenue. |
margin |
EPS | Earnings per share. Total earnings in Mexican pesos divided by total shares. |
(Mexican | |
pesos) | |
Earnings | Total earnings in U.S. dollars divided by total ADRs equivalent. |
per ADR | |
(US$) | |
Equity | Subscribers weighted by the economic interest held in each company. |
subscribers | |
Gross | Total number of subscribers acquired during the period. |
additions | |
Licensed | Licensed population. Population covered by the licenses that each of the companies manage. |
pops | |
LTE | Long-term evolution is a 4th generation standard for wireless communication of high-speed data for mobile phones and data terminals. |
Market | A company’s subscriber base divided by the total number of subscribers in that country. |
share | |
MOU | Minutes of Use per subscriber. The ratio of wireless traffic in a given period to the average number of wireless subscribers in that same period. It is presented on a monthly basis. |
Net | The difference in the subscriber base from one period to another. It is the different between gross additions and disconnections. |
subscriber | |
additions | |
Net debt | Total short and long term debt minus cash and marketable securities. |
Net debt | The ratio of total short and long term debt minus cash and securities to trailing 12-month income before interest, taxes, depreciation and amortization. |
/ EBITDA | |
Prepaid | Subscriber that may purchase airtime to recharge a cellular phone. The client does not hold a contract with the company for voice and data services. |
Postpaid | Subscriber that has a contract for the use of airtime. The client has no need of activating airtime, it is done so immediately. |
SMS | Short Message Service. |
SAC | Subscriber Acquisition Cost. The sum of handset subsidies, marketing expenses and commissions to distributors for handset activation. Handset subsidy is calculated as the difference between equipment cost and equipment revenues. |
Wireless | The ratio of total wireless subscribers in any given country divided by the total population in that country. |
penetration |
Exchange Rates Local Currency Units per USD | ||||||
2Q16 | 2Q15 | Var.% | Jan - Jun 16 | Jan - Jun 15 | Var.% | |
Mexico | ||||||
EoP | 18.91 | 15.57 | 21.5% | 18.91 | 15.57 | 21.5% |
Average | 18.04 | 15.31 | 17.8% | 18.04 | 15.12 | 19.3% |
Brazil | ||||||
EoP | 3.21 | 3.10 | 3.5% | 3.21 | 3.10 | 3.5% |
Average | 3.51 | 3.07 | 14.3% | 3.71 | 2.97 | 24.8% |
Argentina | ||||||
EoP | 15.04 | 9.09 | 65.5% | 15.04 | 9.09 | 65.5% |
Average | 14.22 | 8.95 | 58.8% | 14.33 | 8.82 | 62.5% |
Chile | ||||||
EoP | 661 | 639 | 3.5% | 661 | 639 | 3.5% |
Average | 677 | 618 | 9.6% | 689 | 621 | 11.0% |
Colombia | ||||||
EoP | 2,916 | 2,585 | 12.8% | 2,916 | 2,585 | 12.8% |
Average | 2,994 | 2,500 | 19.7% | 3,124 | 2,483 | 25.8% |
Guatemala | ||||||
EoP | 7.64 | 7.62 | 0.2% | 7.64 | 7.62 | 0.2% |
Average | 7.68 | 7.68 | 0.0% | 7.68 | 7.66 | 0.3% |
Honduras | ||||||
EoP | 22.95 | 22.06 | 4.0% | 22.95 | 22.06 | 4.0% |
Average | 22.80 | 22.09 | 3.3% | 22.76 | 21.99 | 3.5% |
Nicaragua | ||||||
EoP | 28.61 | 27.25 | 5.0% | 28.61 | 27.25 | 5.0% |
Average | 28.44 | 27.08 | 5.0% | 28.27 | 26.92 | 5.0% |
Costa Rica | ||||||
EoP | 554 | 541 | 2.4% | 554 | 541 | 2.4% |
Average | 545 | 540 | 1.0% | 544 | 541 | 0.6% |
Peru | ||||||
EoP | 3.29 | 3.18 | 3.6% | 3.29 | 3.18 | 3.6% |
Average | 3.32 | 3.14 | 5.6% | 3.39 | 3.10 | 9.2% |
Paraguay | ||||||
EoP | 5,589 | 5,184 | 7.8% | 5,589 | 5,184 | 7.8% |
Average | 5,614 | 5,051 | 11.1% | 5,705 | 4,902 | 16.4% |
Uruguay | ||||||
EoP | 30.62 | 27.07 | 13.1% | 30.62 | 27.07 | 13.1% |
Average | 31.27 | 26.59 | 17.6% | 31.41 | 25.69 | 22.3% |
Dominican Republic | ||||||
EoP | 45.97 | 44.98 | 2.2% | 45.97 | 44.98 | 2.2% |
Average | 45.90 | 44.88 | 2.3% | 45.82 | 44.83 | 2.2% |
Austria & CEE | ||||||
EoP | 0.90 | 0.90 | 0.4% | 0.90 | 0.90 | 0.4% |
Average | 0.89 | 0.90 | -2.0% | 0.90 | 0.90 | 0.0% |
Exchange Rates Local Currency Units per MxP | ||||||
2Q16 | 2Q15 | Var.% | Jan - Jun 16 | Jan - Jun 15 | Var.% | |
USA | ||||||
EoP | 0.05 | 0.06 | -17.7% | 0.05 | 0.06 | -17.7% |
Average | 0.06 | 0.07 | -15.1% | 0.06 | 0.07 | -16.2% |
Brazil | ||||||
EoP | 0.17 | 0.20 | -14.8% | 0.17 | 0.20 | -14.8% |
Average | 0.19 | 0.20 | -3.0% | 0.21 | 0.20 | 4.6% |
Argentina | ||||||
EoP | 0.80 | 0.58 | 36.2% | 0.80 | 0.58 | 36.2% |
Average | 0.79 | 0.58 | 34.8% | 0.79 | 0.58 | 36.2% |
Chile | ||||||
EoP | 35.0 | 41.0 | -14.8% | 35.0 | 41.0 | -14.8% |
Average | 37.5 | 40.4 | -7.0% | 38.2 | 41.1 | -7.0% |
Colombia | ||||||
EoP | 154 | 166 | -7.1% | 154 | 166 | -7.1% |
Average | 166 | 163 | 1.6% | 173 | 164 | 5.5% |
Guatemala | ||||||
EoP | 0.40 | 0.49 | -17.5% | 0.40 | 0.49 | -17.5% |
Average | 0.43 | 0.50 | -15.1% | 0.43 | 0.51 | -16.0% |
Honduras | ||||||
EoP | 1.21 | 1.42 | -14.4% | 1.21 | 1.42 | -14.4% |
Average | 1.26 | 1.44 | -12.4% | 1.26 | 1.45 | -13.2% |
Nicaragua | ||||||
EoP | 1.51 | 1.75 | -13.6% | 1.51 | 1.75 | -13.6% |
Average | 1.58 | 1.77 | -10.9% | 1.57 | 1.78 | -12.0% |
Costa Rica | ||||||
EoP | 29.3 | 34.7 | -15.7% | 29.3 | 34.7 | -15.7% |
Average | 30.2 | 35.2 | -14.2% | 30.1 | 35.8 | -15.7% |
Peru | ||||||
EoP | 0.17 | 0.20 | -14.8% | 0.17 | 0.20 | -14.8% |
Average | 0.18 | 0.21 | -10.3% | 0.19 | 0.21 | -8.5% |
Paraguay | ||||||
EoP | 323 | 333 | -11.2% | 296 | 333 | -11.2% |
Average | 321 | 330 | -5.7% | 316 | 324 | -2.5% |
Uruguay | ||||||
EoP | 1.62 | 1.74 | -6.9% | 1.62 | 1.74 | -6.9% |
Average | 1.73 | 1.74 | -0.2% | 1.74 | 1.70 | 2.5% |
Dominican Republic | ||||||
EoP | 2.43 | 2.89 | -15.9% | 2.43 | 2.89 | -15.9% |
Average | 2.54 | 2.93 | -13.2% | 2.54 | 2.96 | -14.3% |
For further information please visit our website at: www.americamovil.com
América Móvil, S.A.B. de C.V. (the “Company”) quarterly reports and all other written materials may from time to time contain forward-looking statements that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance, or achievements, and may contain words like “believe”, “anticipate”, “expect”, “envisages”, “will likely result”, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this report. In no event, neither the Company nor any of its subsidiaries, affiliates, directors, officers, agents or employees shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this document or for any consequential, special or similar damages.
AMÉRICA MÓVIL, S.A.B. DE C.V. | ||
By: |
/S/ Carlos José García Moreno Elizondo
| |
Name: Title: |
Carlos José García Moreno Elizondo
Attorney-in-fact |