America Movil Q1 profit jumps 38% on Brazilian video growth

America Movil (NYSE: AMX) is benefiting from its Brazilian customer base adopting more of its cable and satellite video services as Q1 profit climbed 38 percent to MXN 32.6 billion (USD 2.5 billion).

Total revenues grew 12.4 percent to MXN 192.4 billion (USD 14.8 billion), up from MXN 171.2 billion (USD 13.2 billion) in Q1 2011.

Brazil continues to be a major growth target for America Movil.

In an effort to challenge Telefonica, the service provider has been building a quad play bundled service set that incorporates TV, wireless, traditional wireline voice and Internet. Last year, it spent $2.7 billion to increase its stake in Net Servicos de Comunicacao SA (NETC4) to over 90 percent.

"America Movil (NYSE: AMX) and Telefonica (NYSE: TEF) are clearly positioning themselves as the two leading pay TV providers in the region, with DirecTV/Sky as the third most important regional player, and each with distinct approaches: America Movil and DirecTV/Sky would continue to directly provide pay TV services to end users, while Telefonica's growth derives mostly from its wholesale division, Media Networks," said Jose Otero, president of Signals Consulting in a column on the state of Latin America's pay TV market.

As of the end of March America Movil had 306 million access lines, up 7.7 percent from the same period last year. In Q1 2012, wireline revenue generating units (RGUs) rose 1.9 million to include 30 million wireline connection, 16 million broadband access customers and 14 million pay-TV customers.

America Movil's shares were trading at $26 on the Nasdaq in Monday morning trading.  

For more:
- Bloomberg has this article

Special report: Wireline in the first quarter of 2012

Related articles:
Mexico's Cofetel places wholesale regulations on Telmex
America Movil to fund new Internet-based video venture
Mexican government's broadband plan targets low-income families
America Movil mulling move into the OTT video game

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