America Movil (NYSE: AMX) reported on Wednesday that Q4 2012 revenues dropped 1.1 percent sequentially to MXN 198 billion (USD 15.6 billion ) despite seeing strong gains in both wireless and pay-TV service.
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Click here for selected charts from America Movil's Q4 earnings announcement. |
On a year-over-year basis, revenues rose 5.2 percent, while full year 2012 total revenues were up 5.8 percent. EBIDTA dropped 8.2 percent to MXN 61.7 billion (USD 4.85 billion) or 31.1 percent of sales, due to growth in low-margin products such as pay-TV--which saw net income of MXN 91.441 billion (USD 6.95 billion) in FY2012, up from MXN 82.7 billion (USD 6.5 billion) in 2011.
Net profit declined 8.2 percent to MXN 15 billion (USD 1.2 billion) or MXN 0.20 (USD .016) per share.
The service provider's effort to expand its European presence by acquiring stakes in both KPN and Telekom Austria drove up its net debt to MXN 372.2 billion (USD 29.3 billion).
Despite seeing a sequential drop in revenue, the service provider reported that in 2012 access lines rose 8.7 percent to a total of 325.7 million. It also added 1.4 million revenue generating units (RGUs) to end the quarter with a total of 6.3 million.
A key area of wireline growth for America Movil and its Latin American subsidiaries was video services.
In November, the service provider surpassed satellite provider DirecTV (Nasdaq: DTV) as the region's dominant pay-TV provider. According to a TeleGeography report, America Movil had 11.3 million, or 22 percent, of Latin America's 51 million pay-TV subscribers in the first half of this year, while DirecTV had 9.1 million, or 18 percent, of the market.
For more:
- see the earnings release (.pdf)
- TeleGeography has this article
Special report: Wireline telecom earnings in the fourth quarter of 2012
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