America Movil CFO says company is eyeing wireline deals in Europe

Facing increased competition in Mexico from new competitor AT&T and a potential recession in Brazil, America Movil is considering possible wireline acquisitions in Europe to grow the company's revenues.

In an interview with Reuters, America Movil CFO Carlos Garcia Moreno said that it was possible that the company could draw 15 percent of its revenue from Europe by 2020, up from just under 7 percent of revenue that is accounts for today. 

Specifically, Moreno noted that Eastern Europe is similar to Latin America -- companies stopped investing in their wireline infrastructure when wireless growth started escalating, but the fixed line infrastructure is necessary to support all the growth in mobile because it's necessary for backhaul.

"In Eastern Europe you need to build a lot more, develop the fixed platform much more for the new phase of growth in mobile data services," Moreno told Reuters. "In this process there are acquisitions that can be made."

Morena didn't reveal specific companies that America Movil is considering but noted that the company already has a subsidiary in Austria, Telekom Austria and owns cable companies in Bulgaria and Macedonia.  

In June, America Movil said it was planning to build a new $50 billion fiber-to-the-home (FTTH) network in Mexico that will enhance its residential services with a focus on pay-TV.  

 For more:
- see this Reuters article

Related articles:
America Movil anticipates AT&T's Mexico push with FTTH plans
America Movil's first-quarter wireline revenues rise 9.2%, but profits drop 42%
America Movil to sell off Sercotel subsidiary
America Movil's Q3 profit slides 39% to $754M
America Movil gets green light to consolidate Brazil operations


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