America Movil income down in Q411

The net income of Latin American telecom giant America Movil dropped in Q411 despite a rise in revenues. The operator – which has the third-highest number of connections globally – reported a net income of MXN16.3 billion (US$1.28 billion) in the fourth quarter, a drop of 12.8% on Q311 and 33% year-on-year.

The firm has acquired stock in a number of others – among them Telmex, Telmex Internacional, StarOne and Net Servicos – and has also reacquired some of its own stock. This was cited by the firm as a key cause for the rise in net debt. Depreciation of the peso was given as a reason for the decrease in net income.

Despite this, the firm’s EBITDA for Q411 was up 3.9% from the same period in the previous year, reaching MXN64.5 billion. This drove operating profits up to MXN38.3 billion, an increase of 15.1%. Revenue meanwhile was MXN182 billion for the quarter, an increase of 12.4% on Q410.

The operator saw net additions of 304,000 in Q411, with 241.8 million subscribers at year-end 2011 – a 7.4% increase over 2010. It also acquired 1.6 million postpaid customers, pushing its total postpaid additions to 6.1 million for 2011 – a 23.7% rise on 2010.

In a statement, the firm noted: “Our strategy has been increasingly oriented towards developing a greater presence in the postpaid sector and seeking out only the best prepaid clients.”

With a 15.4% rise in Q411, revenue from wireless operations was substantial, representing nearly two thirds of the firm’s total revenue. America Movil is active in numerous South and Central American countries, as well as various nations in the Caribbean. During Q411 it added Costa Rica to this list, as well as gaining full ownership of Digicel Honduras.

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