America Movil's Brazil unit revenues rise 10.3 percent on strong broadband, TV gains
Brazil is one of America Movil's (NYSE: AMX) fastest growing wireline markets, the operator reported, as it added 1.1 million wireline pay-TV and broadband customer revenue generating units (RGUs) in the third quarter.
As of the end of September, the Brazil unit had a total of 31.9 million RGUs, up 11.5 percent vs. the end of 2012. Pay TV and broadband access customers rose 14.4 and 13.1 percent, respectively. Likewise, it reported a 7.1 percent uptick in wireline voice subscribers.
These gains drove up the Brazil operation revenues 10.3 percent to $3.84 billion, which it said was the fastest rate of growth it has seen in six quarters.
From an overall company standpoint, America Movil reported that it gained a total of 1.4 million RGUs during the quarter, including 698,000 pay TV, 470,000 broadband access and 256,000 fixed voice lines. RGUs rose 8.6 percent over 2012 to 68.3 million at the end of September.
America Movil's total revenues increased 0.7 percent to 194.2 billion pesos ($15.07 billion) in the quarter.
Revenues in its Central America, the Caribbean and the South American bloc rose 4.9 percent and 8.9 percent, respectively. However, in Mexico, service revenues declined 2.1 percent due to what it said was the "the weak state of economic activity."
Shares of America Movil were listed at $20.64, down 34 cents, or 1.62 percent, in Friday morning trading on the NYSE.
- see the earnings release (.pdf)
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