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América Móvil’s first quarter of 2019 financial and operating report
Mexico City, April 29th, 2019 - América Móvil, S.A.B. de C.V. (“América Móvil”) [BMV: AMX] [NYSE: AMX, AMOV], announced today its financial and operating results for the first quarter of 2019.
· |
Beginning January 1st we implemented IFRS 16 accounting standards. The information presented in this report was prepared in a prospective basis; comparable information is provided in the appendix. |
· |
We gained 1.5 million postpaid subscribers in the quarter, including 972 thousand in Brazil, just over 200 thousand in Mexico, and 159 thousand from the acquisition in Guatemala. |
· |
We connected 463 thousand broadband accesses including 193 thousand in Central America and 74 thousand in Brazil. |
· |
Mobile postpaid and fixed-broadband were the main drivers of access growth at 6.4% and 5.6% year-on-year, respectively with mobile prepaid declining 3.4%, mostly in Brazil and both fixed-voice and Pay-TV almost flat from a year before. |
· |
Revenues of 246 billion pesos were 3.1% lower than a year before in Mexican peso terms. At constant exchange rates, service revenues were up 2.5%. |
· |
Fixed-broadband revenue growth accelerated to 9.9% and mobile postpaid revenues increased 6.8%. PayTV revenues came down 3.0%. |
· |
EBITDA of 75 billion pesos was equivalent to 30.6% of revenues. Under comparable accounting standards, EBITDA declined 5.6% annually in Mexican peso terms but at constant exchange rates it actually increased 2.6%. |
· |
Our 35.4 billion pesos operating profit and our 1.2 billion pesos in comprehensive financing costs resulted in a net profit of 19.4 billion pesos in the quarter, which was 3.6% higher than that of the prior year. It was equivalent to 29 pesos per share and 31 dollar cents per ADR. |
· |
Our capital expenditures totaled 28.0 billion pesos and were partly funded by new debt. We paid 6.3 billion pesos for Telefonica’s operation in Guatemala and contributed 5.9 billion pesos to our pension funds. |
· |
Our net debt ended March at 703 billion pesos, which includes 116 billion pesos in former lease payments that were capitalized under IFRS16. Under the previous methodology the EBITDA ratio would have been 1.95x EBITDA LTM. |
América Móvil’s Subsidiaries as of March 2019 | |||
Country | Brand | Business | Equity Participation |
Mexico | Telcel | wireless | 100.0% |
Telmex | wireline | 98.8% | |
Sección Amarilla(1) | other | 100.0% | |
Telvista | other | 90.0% | |
Argentina | Claro | wireless | 100.0% |
Telmex | wireline | 99.7% | |
Brazil | Claro | wireless/wireline | 98.5% |
Chile | Claro | wireless | 100.0% |
Telmex(1) | wireline | 100.0% | |
Colombia | Claro | wireless | 99.4% |
Telmex | wireline | 99.3% | |
Costa Rica | Claro | wireless | 100.0% |
Dominicana | Claro | wireless/wireline | 100.0% |
Ecuador | Claro | wireless/wireline | 100.0% |
El Salvador | Claro | wireless/wireline | 95.8% |
Guatemala | Claro | wireless/wireline | 99.3% |
Honduras | Claro | wireless/wireline | 100.0% |
Nicaragua | Claro | wireless/wireline | 99.6% |
Panama | Claro | wireless/wireline | 100.0% |
Paraguay | Claro | wireless/wireline | 100.0% |
Peru | Claro | wireless/wireline | 100.0% |
Puerto Rico | Claro | wireless/wireline | 100.0% |
Uruguay | Claro | wireless/wireline | 100.0% |
USA | Tracfone | wireless | 100.0% |
Netherlands | KPN | wireless/wireline | 16.1% |
Austria | Telekom Austria | wireless/wireline | 51.0% |
(1) Equity Participation of TEINTL of which América Móvil owns 100%. |
Relevant Events
On March 18th, we entered into an agreement to acquire 100% of Nextel Brazil for a purchase price of $905 million dollars on a cash free/debt free basis. The completion of the acquisition is subject to regulatory approvals from ANATEL (Telecom Regulator), and CADE (Antitrust Authority); as well as to the approval of the majority of NII shareholder’s. With this transaction, Claro will strengthen its network capacity, spectrum portfolio and subscriber base, particularly in the cities of Sao Paulo and Rio de Janeiro.
On April 9th our shareholders’ approved the payment of an ordinary cash dividend of MXP$0.35 peso cents per share, payable in two installments, one of MXP$0.18 peso cents payable on July 15th, 2019 and another of MXP$0.17 peso cents payable on November 11th, and to allocate an amount equal to three billion pesos for our buyback program.
On April 15th we issued bonds in the amount of US$2.25 billion dollars in two tranches; the first one for US$1.0 billion dollars with a coupon of 3.625%, with a 10-year maturity; and the second one, for US$1.25 billion dollars with a coupon of 4.375%, due 2049.
América Móvil Fundamentals | ||
1Q19 | 1Q18 | |
Earnings per Share (Mex$) (1) | 0.29 | 0.28 |
Earning per ADR (US$) (2) | 0.31 | 0.30 |
EBITDA per Share (Mex$) (3) | 1.14 | 1.09 |
EBITDA per ADR (US$) | 1.18 | 1.16 |
Net Income (millions of Mex$) | 19,443 | 18,766 |
Average Shares Outstanding (billion) | 66.03 | 66.06 |
(1) Net Income / Average Shares Outstanding | ||
(2) 20 shares per ADR | ||
(3) EBITDA / Average Shares Outstanding |
Access Lines
Our wireless subscriber base ended March with 277.4 million subscribers including 1.4 million from the acquisition of Telefónica Guatemala. We added 1.3 million postpaid subscribers and disconnected 1.1 million prepaids, substantially all of them in Brazil. Our postpaid base was up 6.4% organically to 83.6 million subs. Growth on the contract segment was particularly strong in Brazil where we added 972 thousand subs; then came Mexico with 201 thousand and Austria with 96 thousand. As regards prepaid, we ended the quarter with 192.4 million subs, 4.1% below last year.
On the fixed segment we reached 84.3 million RGUs, 1.4% more than a year before. We connected 463 thousand broadband accesses, including 74 thousand in Brazil, bringing the total to 30.2 million, 5.6% more than a year before. PayTV units, 21.4 thousand, were down 0.9% affected by disconnections of DTH services in Brazil.
Mobile postpaid and fixed-broadband were the main drivers of access growth at 6.4% and 5.6% year-on-year respectively, with mobile prepaid declining 4.1% and both fixed-voice and Pay-TV almost flat from a year before.
Wireless Subscribers as of March 2019 | |||||
Total(1) (Thousands) | |||||
Country | Mar ’19 | Dec ’18 | Var.% | Mar ’18 | Var.% |
Argentina, Paraguay and Uruguay |
24,370 | 24,264 | 0.4% | 24,149 | 0.9% |
Austria & CEE | 20,908 | 21,000 | -0.4% | 20,640 | 1.3% |
Brazil | 56,383 | 56,416 | -0.1% | 58,809 | -4.1% |
Central America | 15,841 | 14,364 | 10.3% | 16,101 | -1.6% |
Caribbean | 5,980 | 5,887 | 1.6% | 5,700 | 4.9% |
Chile | 6,720 | 6,707 | 0.2% | 7,048 | -4.6% |
Colombia | 29,887 | 29,681 | 0.7% | 29,401 | 1.7% |
Ecuador | 8,308 | 8,246 | 0.8% | 8,000 | 3.9% |
Mexico | 75,611 | 75,448 | 0.2% | 73,984 | 2.2% |
Peru | 11,818 | 12,098 | -2.3% | 12,507 | -5.5% |
USA | 21,599 | 21,688 | -0.4% | 22,761 | -5.1% |
Total Wireless Lines | 277,425 | 275,798 | 0.6% | 279,102 | -0.6% |
(1) Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated. | |||||
Fixed-Line and Other Accesses (RGUs) as of March 2019 | |||||
Total(1) (Thousands) | |||||
Country | Mar ’19 | Dec ’18 | Var.% | Mar ’18 | Var.% |
Argentina, Paraguay and Uruguay |
833 | 775 | 7.5% | 680 | 22.5% |
Austria & CEE | 6,248 | 6,261 | -0.2% | 6,035 | 3.5% |
Brazil | 34,993 | 35,285 | -0.8% | 35,861 | -2.4% |
Central America | 6,867 | 6,465 | 6.2% | 5,919 | 16.0% |
Caribbean | 2,545 | 2,546 | 0.0% | 2,656 | -4.2% |
Chile | 1,441 | 1,424 | 1.2% | 1,357 | 6.2% |
Colombia | 7,320 | 7,171 | 2.1% | 6,840 | 7.0% |
Ecuador | 397 | 384 | 3.2% | 370 | 7.3% |
Mexico | 22,350 | 22,337 | 0.1% | 21,988 | 1.6% |
Peru | 1,498 | 1,472 | 1.8% | 1,405 | 6.6% |
Total RGUs | 84,492 | 84,120 | 0.4% | 83,111 | 1.7% |
(1) Fixed Line, Broadband and Television (Cable & DTH). |
América Móvil Consolidated Results
The first quarter of 2019 ended with a reduction in U.S. long-term interest rates as it became apparent that the Federal Reserve would not be able to continue increasing interest rate throughout the year as it had signaled late in 2018 and in the first months of 2019. The world economy appeared to be slowing down. During this period the value of the U.S. dollar vs. the main Latin American countries was fairly stable, not too different at the end of the quarter than at its beginning.
Our revenues totaled 245.7 billion pesos in the quarter and were 3.1% lower than a year before in Mexican peso terms, reflecting the depreciation of most of our operating currencies vs. the Mexican peso, with the U.S. dollar being the main exception. On average the real fell 11.7%, the Chilean peso 7.5%, the Colombian peso 6.6% and the euro 5.3% vs. the Mexican peso in the first quarter of 2019 in relation to the year-earlier quarter.
At constant exchange rates, service revenues were up 2.5% from the year-earlier quarter, buoyed by fixed-broadband revenues that were up 9.9% and postpaid mobile revenues that increased 6.8%. Fixed-broadband revenues have accelerated significantly and are outpacing all other revenue units, including postpaid mobile. Only PayTV revenues declined, -3.0%, continuing the trend seen throughout most of the last two years.
In the South American block service revenue growth, 3.8%, remained in line with that of the prior quarter whereas in Central America it rose from 0.5% in the fourth quarter to 4.2% in the first one, basically to do with the incorporation of Telefonica’s former operation in Guatemala from February 2019. Service revenue growth decelerated in both Mexico and the U.S. to 1.6% and to 0.6% respectively. In our operations in Europe—Austria and Eastern European countries—service revenue growth picked up to 2.9%, from -1.1% the prior quarter.
On the mobile front, service revenue growth improved in Colombia, Argentina, Uruguay and Paraguay.
EBITDA came in at 75.0 billion pesos in the quarter under the new IFRS16 standard, by which most lease payments are not deducted any more from the operating cash flow and instead are capitalized as new debt coupled with rights of use of assets. Under this accounting convention, the EBITDA margin for the quarter was 30.6%. Under the prior reporting methodology, EBITDA would have been 68.0 billion pesos, representing a 27.7% EBITDA margin, and would have declined 5.6% year-on-year in Mexican peso terms and increased 2.6% at constant exchange rates (see Appendix 1).
América Móvil’s Income Statement Millions of Mexican pesos | |||
1Q19(1) | 1Q18(2) | Var.% | |
Service Revenues | 207,800 | 215,872 | -3.7% |
Equipment Revenues | 37,852 | 37,669 | 0.5% |
Total Revenues | 245,653 | 253,541 | -3.1% |
Cost of Service | 75,325 | 81,808 | |
Cost of Equipment | 39,186 | 39,787 | |
Selling, General & Administrative Expenses | 54,677 | 57,855 | |
Others | 1,417 | 2,083 | |
Total Costs and Expenses | 170,605 | 181,533 | |
EBITDA | 75,048 | 72,008 | |
% of Total Revenues | 30.6% | 28.4% | |
Depreciation & Amortization | 39,662 | 41,412 | |
EBIT | 35,386 | 30,595 | |
% of Total Revenues | 14.4% | 12.1% | |
Net Interest Expense | 8,764 | 7,570 | |
Other Financial Expenses | 674 | 14,420 | |
Foreign Exchange Loss | -8,250 | -22,903 | |
Comprehensive Financing Cost (Income) | 1,188 | -913 | |
Income & Deferred Taxes | 14,006 | 12,605 | |
Net Income before Minority Interest and Equity Participation in Results of Affiliates |
20,192 | 18,904 | |
Equity Participation in Results of Affiliates | 15 | 14 | |
Minority Interest | -765 | -152 | |
Net Income | 19,443 | 18,766 | |
(1) Under IFRS 16. | |||
(2) Under IAS 17. | |||
n.m. Not meaningful. |
Our operating profit reached 35.4 billion pesos under the same IFRS16 standard while our comprehensive financing costs totaled 1.2 billion pesos. Both line items reflect changes under the new methodology, including the allocation of the former rental payments as greater depreciation costs—coming from the new rights of use that were created as assets in the balance sheet—and greater interest costs—the interest component associated with the former rental payments.
We obtained a net profit of 19.4 billion pesos in the quarter; it was 3.6% higher than the one observed the year-earlier quarter, equivalent to 29 pesos per share and 31 dollar cents per ADR.
Our net debt ended March at 703 billion pesos, which includes 116 billion pesos in former lease payments that were capitalized under IFRS16. Using our prior methodology the net debt to LTM EBITDA ended March at 1.95x (Appendix 2).
Balance Sheet - América Móvil Consolidated Millions of Mexican Pesos | |||||||
Mar '19 | Dec '18 | Var.% | Mar '19 | Dec '18 | Var.% | ||
Current Assets | Current Liabilities | ||||||
Cash, Marketable Securities & Other Short Term Investments |
67,789 | 70,676 | -4.1% | Short Term Debt* | 161,416 | 96,231 | 67.7% |
Accounts Receivable | 224,405 | 221,514 | 1.3% | Lease-Related Debt | 26,437 | ||
Other Current Assets | 24,884 | 16,560 | 50.3% | Accounts Payable | 256,746 | 278,391 | -7.8% |
Other Current | |||||||
Inventories | 41,402 | 40,305 | 2.7% | 88,874 | 92,469 | -3.9% | |
Liabilities | |||||||
358,480 | 349,056 | 2.7% | 533,473 | 467,091 | 14.2% | ||
Non Current Assets | Non Current Liabilities | ||||||
Plant & Equipment | 746,350 | 640,001 | 16.6% | Long Term Debt | 492,917 | 542,692 | -9.2% |
Investments in Affiliates | 3,087 | 3,133 | -1.5% | Lease-Related Debt | 89,861 | ||
Other Liabilities | 176,480 | 173,568 | 1.7% | ||||
Deferred Assets | 759,258 | 716,260 | 6.0% | ||||
Goodwill (Net) | 147,693 | 145,566 | 1.5% | ||||
Intangible Assets | 122,085 | 122,138 | 0.0% | Shareholder's Equity | 257,772 | 245,872 | 4.8% |
Deferred Assets | 172,808 | 169,330 | 2.1% | ||||
Total Assets | 1,550,502 | 1,429,223 | 8.5% | Total Liabilities and Equity |
1,550,502 | 1,429,223 | 8.5% |
*Includes current portion of Long Term Debt. |
In the first quarter our capital expenditures totaled 28.0 billion pesos and were partly funded by new debt. We paid 6.3 billion pesos for Telefonica’s operation in Guatemala and contributed 5.9 billion pesos to our pension funds.
Financial Debt of América Móvil* Millions | ||
Mar -19 | Dec -18(1) | |
Peso - denominated debt (MxP) | 88,525 | 72,501 |
Bonds and other securities | 68,025 | 68,001 |
Banks and others | 20,500 | 4,500 |
U.S. Dollar - denominated debt (USD) | 10,075 | 9,947 |
Bonds and other securities | 9,353 | 9,353 |
Banks and others | 722 | 594 |
Euro - denominated Debt (EUR) | 11,229 | 11,281 |
Bonds and other securities | 11,029 | 11,036 |
Banks and others | 200 | 245 |
Sterling - denominated Debt (GBP) | 2,750 | 2,750 |
Bonds and other securities | 2,750 | 2,750 |
Reais - denominated Debt (BRL) | 8,478 | 6,480 |
Bonds and other securities | 8,475 | 6,475 |
Banks and others | 3 | 5 |
Debt denominated in other currencies (MxP) | 16,520 | 14,203 |
Bonds and other securities | 6,190 | 6,240 |
Banks and others | 10,330 | 7,963 |
Total Debt (MxP) | 654,333 | 638,922 |
Cash, Marketable Securities and Short Term Financial | ||
Investments (MxP) | 67,789 | 70,676 |
Net Debt (MxP) | 586,544 | 568,246 |
*This table does not include the effect of forwards and derivatives used to hedge our foreign exchange exposure. | ||
(1) On February 2018, TKA called its 600 million euro hybrid bond and on September AMX called its 900 million euro hybrid bond. |
Mexico
We ended March with 75.6 million mobile subscribers in Mexico, 2.2% more than a year before, after net postpaid gains of 201 thousand clients in the first quarter; our prepaid subscribers came down by 39 thousand. On the fixed-line platform we ended the quarter with 22.3 million RGUs, a 1.6% increase over the prior year.
Our first quarter revenues increased 2.0% from a year before to reach 67.2 billion pesos. Service revenues expanded 5.7% on the mobile platform on the back of postpaid revenue growth of 6.9% with prepaid revenues decelerating. On the fixed-line platform service revenues declined 4.6% dragged down by voice revenues, mainly long distance, in spite of fixed broadband revenues increasing 1.0% and those of corporate networks expanding 6.9%.
EBITDA totaled 24.8 billion pesos in the quarter using IFRS16, representing an EBITDA margin of 36.9%. A comparison with the prior year using the previous accounting standard shows a 1.1% year-on-year increase (Appendix 3), in the face of a continued fixed-line revenue decline and certain cost increases, including one-off items: the loss of a dispute with another operator and the payment of a fine to the telecom regulator.
INCOME STATEMENT - Mexico Millions of MxP | |||
1Q19(1) | 1Q18(2) | Var.% | |
Total Revenues* | 67,241 | 65,925 | 2.0% |
Total Service Revenues | 51,392 | 50,583 | 1.6% |
Wireless Revenues | 46,966 | 44,252 | 6.1% |
Service Revenues | 32,213 | 30,484 | 5.7% |
Equipment Revenues | 14,753 | 13,768 | 7.2% |
Fixed Line and Other Revenues | 20,038 | 21,323 | -6.0% |
EBITDA | 24,818 | 22,430 | |
% total revenues | 36.9% | 34.0% | |
EBIT | 16,140 | 14,759 | |
% | 24.0% | 22.4% | |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. | |||
Total revenues include other income. | |||
(1) Under IFRS 16. | |||
(2) Under IAS 17. |
Mexico Operating Data | |||
1Q19 | 1Q18 | Var.% | |
Wireless Subscribers (thousands) | 75,611 | 73,984 | 2.2% |
Postpaid | 13,714 | 12,947 | 5.9% |
Prepaid | 61,897 | 61,038 | 1.4% |
MOU | 522 | 495 | 5.4% |
ARPU (MxP)(1) | 143 | 137 | 4.2% |
Churn (%) | 4.1% | 4.2% | (0.1) |
Revenue Generating Units (RGUs)* | 22,350 | 21,988 | 1.6% |
Fixed Lines | 12,666 | 12,611 | 0.4% |
Broadband | 9,684 | 9,377 | 3.3% |
* Fixed Line and Broadband. | |||
(1) Under IFRS 15. |
Argentina, Paraguay and Uruguay
We finished March with 24.4 million wireless subscribers, 0.9% more than last year. Net additions in the quarter came in at 105 thousand subs, of which one third were postpaid. Although still small, our fixed access base rose 22.5% to 833 thousand RGUs.
Our revenues increased 43.3% annually to 20.6 billion Argentinean pesos. Mobile service revenues were up 41.7% with postpaid revenue growth outpacing that of prepaid. ARPU rose 40.2% to 204 Argentinean pesos boosted by data usage. Fixed service revenues expanded 86.1% with PayTV revenues doubling as compared to the first quarter of 2018, although from a small base.
First quarter EBTDA was 8.1 billion Argentinean pesos. It was 43.2% higher than that of the prior year under the prior accounting methodology and the EBITDA margin stood at 36.0% (Appendix 3).
We continue expanding our fiber networks in Paraguay and in Argentina where we have started the deployment in a few new cities.
INCOME STATEMENT - Argentina, Paraguay & Uruguay Millions of ARP | |||
1Q19(1) | 1Q18(2) | Var.% | |
Total Revenues* | 20,577 | 14,355 | 43.3% |
Total Service Revenues | 16,860 | 11,581 | 45.6% |
Wireless Revenues | 18,841 | 13,466 | 39.9% |
Service Revenues | 14,985 | 10,573 | 41.7% |
Equipment Revenues | 3,856 | 2,892 | 33.3% |
Fixed Line and Other Revenues | 1,875 | 1,008 | 86.1% |
EBITDA | 8,103 | 5,231 | |
% total revenues | 39.4% | 36.4% | |
EBIT | 5,965 | 4,094 | |
% | 29.0% | 28.5% | |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. | |||
Total revenues include other income. | |||
(1) Under IFRS 16. | |||
(2) Under IAS 17. |
Argentina, Paraguay & Uruguay Operating Data | |||
1Q19 | 1Q18 | Var.% | |
Wireless Subscribers (thousands)(1) | 24,370 | 24,149 | 0.9% |
Postpaid | 9,012 | 8,951 | 0.7% |
Prepaid | 15,358 | 15,199 | 1.0% |
MOU | 74 | 75 | -1.8% |
ARPU (ARP) (2) | 204 | 145 | 40.2% |
Churn (%) | 2.0% | 2.0% | (0.0) |
Revenue Generating Units (RGUs)* | 833 | 680 | 22.5% |
* Fixed Line, Broadband and Television. | |||
(1)Hybrid subscribers are now included in our postpaid figures | |||
(2) Under IFRS 15. |
Brazil
Throughout the first quarter of 2019 and continuing the trend from the prior year, Claro led the market in postpaid subscriber gains, adding 972 thousand subscribers in the period. At the same time, and following the practice from prior years, we disconnected one million prepaid subscribers; altogether we ended March with 56.4 million subs. On the fixed line platform we ended the quarter with 35.0 million RGUs, a decline of 292 thousand from the previous quarter, all of them voice and PayTV accesses; in fixed broadband we added 74 thousand clients.
Revenues were up 1.3% from the year-earlier quarter to 8.9 billion reais, with service revenues increasing 0.7%. Fixed-broadband and mobile postpaid revenues were the main drivers of revenue growth, as has been the case for several quarters now, with the former rising very much in line with the pace seen in the fourth quarter. Prepaid revenue growth was practically flat year-on-year, after several quarters of annual reductions, whereas PayTV revenues continued their decline.
Mobile ARPU was up 11.0% to 18 reais, helped along by Claro’s commercial plans that offer unlimited voice, high quality mobile internet—Claro’s is the fastest mobile network and has the broadest population by coverage with 4G+ and 4.5G—and bundled digital services including Claro Musica and Claro Video. In addition, there are passport features by which customers can rely on their local mobile data and voice plans when traveling abroad.
EBITDA came in at 3.3 billion reais (under IFRS16) and was equivalent to 37.0% of revenues. Using the prior accounting standard, it would have increased by 4.3% from the year-earlier quarter and the EBITDA margin would have moved up one percentage point (Appendix 3).
On residential services our footprint is growing fast through FTTH deployment in 30 cities. We are the leader in the ultrabroadband segment of the market.
INCOME STATEMENT - Brazil Millions of BrL | |||
1Q19(1) | 1Q18(2) | Var.% | |
Total Revenues* | 8,940 | 8,827 | 1.3% |
Total Service Revenues | 8,658 | 8,595 | 0.7% |
Wireless Revenues | 3,298 | 3,064 | 7.6% |
Service Revenues | 3,027 | 2,847 | 6.3% |
Equipment Revenues | 271 | 217 | 24.9% |
Fixed Line and Other Revenues | 5,632 | 5,749 | -2.0% |
EBITDA | 3,307 | 2,836 | |
% total revenues | 37.0% | 32.1% | |
EBIT | 1,363 | 712 | |
% | 15.2% | 8.1% | |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. | |||
Total revenues include other income. | |||
(1) Under IFRS 16. | |||
(2) Under IAS 17. |
Brazil Operating Data | |||
1Q19 | 1Q18 | Var.% | |
Wireless Subscribers (thousands) | 56,383 | 58,809 | -4.1% |
Postpaid | 24,479 | 21,270 | 15.1% |
Prepaid | 31,904 | 37,539 | -15.0% |
MOU (1) | 135 | 107 | 26.9% |
ARPU (BRL) (2) | 18 | 16 | 11.0% |
Churn (%) | 3.8% | 4.0% | (0.1) |
Revenue Generating Units (RGUs)* | 34,993 | 35,861 | -2.4% |
* Fixed Line, Broadband and Television. | |||
(1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers. | |||
(2) Under IFRS 15. |
Chile
Net additions in the quarter came in at 13 thousand subs after 47 thousand postpaid gains and 34 thousand prepaid disconnections, bringing the wireless base to 6.7 million. Our fixed-line operations ended March with 1.4 million RGUs, 6.2% more than a year before, with growth in every service line. At a pace of 9.4% broadband was the fastest-growing segment.
Total revenues for the quarter added up to 206 billion Chilean pesos, up 5.6% year-on-year with equipment revenues, rising 89% and service revenues declining 3.2%. Mobile service revenues were 9.5% below those obtained a year before as mobile termination rates were reduced 80% in January. In the absence of such change, service revenues would have declined 5.4% annually in spite of a very competitive market, with prices falling significantly for entry-level postpaid plans.
Fixed service revenues continued to accelerate to a pace of 5.9%, with broadband revenues expanding 14.5% and PayTV revenues increasing 5.4%.
Under IRFS16 the EBITDA figure for the quarter topped 43 billion Chilean pesos which represents 20.9% of revenues. Under the prior methodology, EBITDA was 4.9% lower than a year before partly on account of the reduction in termination rates (Appendix 3). Adjusting for that, the decline in EBITDA would have been 3.4%.
INCOME STATEMENT - Chile Millions of ChPL | |||
1Q19(1) | 1Q18(2) | Var.% | |
Total Revenues* | 205,683 | 194,760 | 5.6% |
Total Service Revenues | 169,365 | 174,943 | -3.2% |
Wireless Revenues | 128,056 | 121,515 | 5.4% |
Service Revenues | 93,368 | 103,188 | -9.5% |
Equipment Revenues | 34,688 | 18,327 | 89.3% |
Fixed Line and Other Revenues | 76,715 | 72,154 | 6.3% |
EBITDA | 43,051 | 34,410 | |
% total revenues | 20.9% | 17.7% | |
EBIT | -14,432 | -22,110 | |
% | -7.0% | -11.4% | |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. | |||
Total revenues include other income. | |||
(1) Under IFRS 16. | |||
(2) Under IAS 17. |
Chile Operating Data | |||
1Q19 | 1Q18 | Var.% | |
Wireless Subscribers (thousands) | 6,720 | 7,048 | -4.6% |
Postpaid | 2,127 | 1,951 | 9.0% |
Prepaid |
4,593 | 5,097 | -9.9% |
MOU | 170 | 156 | 9.0% |
ARPU (ChP)(1) | 5,074 | 5,132 | -1.1% |
Churn (%) | 6.0% | 5.4% | 0.5 |
Revenue Generating Units (RGUs)* | 1,441 | 1,357 | 6.2% |
* Fixed Line, Broadband and Television. | |||
(1) Under IFRS 15. |
Colombia
Our wireless subscriber base reached 29.9 million in March, up 1.7% year-on-year, after adding 206 thousand new subs in the first quarter. Postpaid net additions of 60 thousand subs brought the postpaid base to nearly seven million, 4.7% more than a year before. Fixed RGUs rose 7.0% year-on-year to 7.3 million after connecting 149 thousand RGUs including 61 thousand new broadband accesses and 35 thousand PayTV units.
Revenues rose 4.3% year-over-year to 2.9 trillion Colombian pesos. Fixed service revenues were up 8.2% driven by the expansion of broadband services and corporate networks that continued to accelerate, both reaching a pace of 11.3%; fixed voice and PayTV revenues increased 7.6% and 5.3%, respectively.
Mobile service revenues were 0.8% higher than the year before after several quarters of annual reductions resulting from strong competition, especially in the prepaid segment. Postpaid service revenues picked up to 2.7% from 0.3% in the fourth quarter as a result of changes in the commercial offer that have allowed us to monetize the demand for data. Mobile ARPU rose 2.7% to 17,051 Colombian pesos.
The EBITDA figure for the quarter was 1.3 trillion Colombian pesos and the margin was equivalent to 43.8%. EBITDA grew 6.8% on a comparable basis—a margin improvement of one percentage point— as part of our continued effort to reduce costs, which was particularly important in regards to administrative expenses (Appendix 3).
INCOME STATEMENT - Colombia Billions of COP | |||
1Q19(1) | 1Q18(2) | Var.% | |
Total Revenues* | 2,931 | 2,809 | 4.3% |
Total Service Revenues | 2,363 | 2,285 | 3.4% |
Wireless Revenues | 2,004 | 1,972 | 1.6% |
Service Revenues | 1,477 | 1,465 | 0.8% |
Equipment Revenues | 527 | 506 | 4.1% |
Fixed Line and Other Revenues | 903 | 831 | 8.6% |
EBITDA | 1,284 | 1,146 | |
% | 43.8% | 40.8% | |
EBIT | 720 | 659 | |
% | 24.6% | 23.5% | |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. | |||
Total revenues include other income. | |||
(1) Under IFRS 16. | |||
(2) Under IAS 17. |
Colombia Operating Data | |||
1Q19 | 1Q18 | Var.% | |
Wireless Subscribers* (thousands) | 29,887 | 29,401 | 1.7% |
Postpaid | 6,997 | 6,684 | 4.7% |
Prepaid | 22,890 | 22,717 | 0.8% |
MOU(1) | 236 | 193 | 21.9% |
ARPU (COP) (2) | 17,051 | 16,611 | 2.7% |
Churn (%) | 4.8% | 4.2% | 0.6 |
Revenue Generating Units (RGUs)** | 7,320 | 6,840 | 7.0% |
*Due to differences in the policy for accounting active subscribers, the figures in this report are different from those published by the Ministry of Communications of Colombia (MinTIC). | |||
**Fixed Line, Broadband and Television. | |||
(1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers. (2) Under IFRS 15. |
Ecuador
Our wireless subscriber base ended March with 8.3 million wireless subscribers, 3.9% more than a year before after adding 63 thousand subs in the first quarter. Fixed RGUs totaled 397 thousand, were 7.3% higher than a year before.
The quarter’s revenues increased 3.4% from a year before to 326 million dollars, with equipment revenues rising 23.3%. Service revenues were nearly flat in 2018. Prepaid service revenues fell 6.5% while postpaid revenues increased 4.0%. Fixed service revenues of 21 million dollars expanded 9.2% annually driven by broadband revenues, up 13.6%.
EBITDA of 138 million dollars in the first quarter was equivalent to 42.4% of revenues. Under comparable metrics, we registered a yearly expansion of 4.7% in absolute terms and a 0.5 percentage points increase in the EBITDA margin (Appendix 3).
INCOME STATEMENT - Ecuador Millions of Dollars | |||
1Q19(1) | 1Q18(2) | Var.% | |
Total Revenues* | 326 | 315 | 3.4% |
Total Service Revenues | 273 | 272 | 0.3% |
Wireless Revenues | 304 | 294 | 3.1% |
Service Revenues | 251 | 252 | -0.5% |
Equipment Revenues | 52 | 42 | 24.7% |
Fixed Line and Other Revenues | 23 | 21 | 7.6% |
EBITDA | 138 | 124 | |
% total revenues | 42.4% | 39.4% | |
EBIT | 81 | 72 | |
% | 24.8% | 22.9% | |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. | |||
Total revenues include other income. | |||
(1) Under IFRS 16. | |||
(2) Under IAS 17. |
Ecuador Operating Data | |||
1Q19 | 1Q18 | Var.% | |
Wireless Subscribers (thousands) | 8,308 | 8,000 | 3.9% |
Postpaid | 2,640 | 2,554 | 3.4% |
Prepaid | 5,668 | 5,446 | 4.1% |
MOU | 427 | 388 | 10.0% |
ARPU (US$) (1) | 10 | 11 | -4.0% |
Churn (%) | 4.2% | 4.6% | (0.4) |
Revenue Generating Units (RGUs)* | 397 | 370 | 7.3% |
* Fixed Line, Broadband and Television. | |||
(1) Under IFRS 15. |
Peru
We disconnected 280 thousand subs in the quarter, most of them prepaid, to finish March with 11.8 million wireless subscribers. Our 1.5 million fixed RGUs were up 6.6% year-on-year on the back of broadband accesses that posted an 11.8% increase.
Total revenues of 1.3 billion soles were 5.4% lower than a year before with equipment revenues up 6.6% and service revenues declining 9.4%. On the mobile segment, service revenues fell 12.0%. The reduction is partly linked to a mobile termination rate cut of 70% in January in absence of which service revenues would have fallen 7.4%. It also reflects subscriber losses and aggressive offers that have been launched in response to disruptive commercial practices implemented by some of the players, especially in the prepaid segment.
EBITDA of 352 million soles was equivalent to 27.9% of revenues. Under the prior accounting methodology, it would have come down 0.6% relative to 2018 (Appendix 3), although adjusting for the aforementioned change in interconnection rates, it would have increased 4.1%.
We have continued with the roll out of 4G services in the country.
INCOME STATEMENT - Peru Millions of Soles | |||
1Q19(1) | 1Q18(2) | Var.% | |
Total Revenues* | 1,264 | 1,335 | -5.4% |
Total Service Revenues | 926 | 1,023 | -9.4% |
Wireless Revenues | 1,040 | 1,116 | -6.8% |
Service Revenues | 715 | 813 | -12.0% |
Equipment Revenues | 324 | 303 | 7.0% |
Fixed Line and Other Revenues | 211 | 211 | -0.2% |
EBITDA | 352 | 316 | |
% total revenues | 27.9% | 23.7% | |
EBIT | 119 | 130 | |
% | 9.4% | 9.8% | |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. | |||
Total revenues include other income. | |||
(1) Under IFRS 16. | |||
(2) Under IAS 17. |
Peru Operating Data | |||
1Q19 | 1Q18 | Var.% | |
Wireless Subscribers (thousands) | 11,818 | 12,507 | -5.5% |
Postpaid | 4,069 | 4,186 | -2.8% |
Prepaid | 7,749 | 8,321 | -6.9% |
MOU | 252 | 226 | 11.5% |
ARPU (Sol) (1) | 20 | 22 | -8.8% |
Churn (%) | 6.3% | 6.1% | 0.2 |
Revenue Generating Units (RGUs)* | 1,498 | 1,405 | 6.6% |
* Fixed Line, Broadband and Television. | |||
(1) Under IFRS 15. |
Central America
In Central America we added 1.5 million subscribers in the first quarter mostly on account of the incorporation of the subscribers of the former Telefónica operation in Guatemala. Altogether we added 1.3 million prepaid clients and 150 thousand postpaid subscribers. On the fixed-line platform we added 402 thousand RGUs which approximately half came from the aforementioned acquisition. All our organic growth stemmed from fixed-broadband accesses.
We began consolidating the operations of Telefónica Guatemala on February 1st. On a pro forma basis, first quarter revenues of 609 million dollars were 4.6% lower than a year before with service revenues falling 4.4%. This figure reflects exchange rates variations of most of the Central American currencies that historically had been relatively stable Vis-à-vis the dollar, including the Guatemalan Quetzal that lost 5% against the U.S. dollar. In local currency, revenues were roughly flat.
Wireless service revenues declined 4.8% since there has been an important deterioration in the conditions of Nicaragua and Honduras but also as a result of ARPU pressure in Guatemala. In the fixed segment we have experienced revenue losses across the board from voice revenues which took our fixed service revenues down 3.7%.
EBITDA under IFRS16 was 235 million dollars equivalent to 38.5% of revenues. Under comparable methodologies, EBITDA would have declined 5.8% pro forma as a result of revenue losses and an increase in bad debt in several countries. It also reflect one-time costs asociated to the integration of the recent acquisition.
INCOME STATEMENT - Central America Pro forma Millions of Dollars | |||
1Q19(1) | 1Q18(2) | Var.% | |
Total Revenues* | 609 | 638 | -4.6% |
Total Service Revenues | 523 | 547 | -4.4% |
Wireless Revenues | 413 | 429 | -3.8% |
Service Revenues | 340 | 357 | -4.8% |
Equipment Revenues | 73 | 72 | 1.1% |
Fixed Line and Other Revenues | 191 | 200 | -4.1% |
EBITDA | 235 | 207 | |
% total revenues | 38.5% | 32.4% | |
EBIT | 89 | 75 | |
% | 14.7% | 11.8% | |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. | |||
Total revenues include other income. | |||
(1) Under IFRS 16. | |||
(2) Under IAS 17. |
Central America Operating Data | |||
1Q19 | 1Q18 | Var.% | |
Wireless Subscribers (thousands) | 15,841 | 16,101 | -1.6% |
Postpaid | 2,513 | 2,418 | 3.9% |
Prepaid | 13,328 | 13,683 | -2.6% |
MOU(1) | 158 | 157 | 1.1% |
ARPU (US$) (2) | 7 | 7 | -2.0% |
Churn (%) | 5.6% | 6.5% | (0.9) |
Revenue Generating Units (RGUs) * | 6,867 | 5,919 | 16.0% |
* Fixed Line, Broadband and Television. | |||
(1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers. | |||
(2) Under IFRS 15. |
Caribbean
Our combined subscriber base was just shy of six million having risen 4.9% over the year. In Dominicana we added 83 thousand new subs in the first quarter bringing the base up 5.7% from the year before, while in Puerto Rico our subscriber base was practically flat in the quarter. In Dominicana fixed RGUs of 1.9 million were up 1.8% year-on-year on the back of broadband and PayTV access growth.
Total revenues rose 5.2% in Dominicana with service revenue growth accelerating to 5.4%. Mobile service revenues increased 8.3% supported by strong prepaid revenues that have risen with data services. Fixed-line service revenues grew 2.0% with broadband and PayTV revenues expanding 11.9% and 8.7%, respectively. Wireline voice revenues came down following a contraction of long distance revenues in the order of 28.5%. The EBITDA figure for the quarter went up 5.8% and was equivalent to 44.5% of revenues.
In Puerto Rico service revenues increased 0.7% relative to the prior year. Mobile service revenues rose 2.1% while fixed service revenues declined 0.8% reflecting fixed to mobile migration as Mobile WiFi has become more widespread, especially in those areas that were severely affected by the hurricane.
Under the same premise, excluding extraordinary effects, EBITDA would have risen 35.1% relative to the year-earlier quarter and the EBITDA margin would have been 9.0 percentage points greater.
We have made important improvements in our fiber platforms and have upgraded our networks with the latest technologies consolidating our leadership position in the island.
INCOME STATEMENT - Caribbean Millions of Dollars | |||
1Q19(1) | 1Q18(2) | Var.% | |
Total Revenues* | 450 | 476 | -5.5% |
Total Service Revenues | 378 | 377 | 0.2% |
Wireless Revenues | 263 | 257 | 2.4% |
Service Revenues | 212 | 207 | 2.5% |
Equipment Revenues | 51 | 50 | 2.2% |
Fixed Line and Other Revenues | 182 | 190 | -4.0% |
EBITDA | 147 | 129 | |
% total revenues | 32.7% | 27.0% | |
EBIT | 71 | 60 | |
% | 15.8% | 12.7% | |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. | |||
Total revenues include other income. | |||
(1) Under IFRS 16. | |||
(2) Under IAS 17. |
Caribbean Operating Data | |||
1Q19 | 1Q18 | Var.% | |
Wireless Subscribers (thousands) | 5,980 | 5,700 | 4.9% |
Postpaid | 1,951 | 1,877 | 3.9% |
Prepaid | 4,029 | 3,823 | 5.4% |
MOU(1) | 238 | 248 | -4.1% |
ARPU (US$)(2) | 12 | 12 | -2.3% |
Churn (%) | 3.5% | 3.7% | -0.2 |
Revenue Generating Units (RGUs)* | 2,545 | 2,656 | -4.2% |
* Fixed Line, Broadband and Television. | |||
(1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers. | |||
(2) Under IFRS 15. |
United States
We had 21.6 million subscribers at the end of March, 5.1% less than a year before, after net disconnections of 89 thousand, compared to 371 thousand in the first quarter of 2018. Excluding SafeLink, we booked 122 thousand net subscriber additions.
First quarter revenues of nearly two billion dollars declined 0.6% as equipment revenues came down 6.9% over the year, which has partly to do with lower tax refunds in 2019. Service revenues were up 0.6% with ARPU rising 6.8% over the year to 26 dollars per subscriber.
EBITDA of 123 million dollars was down 18.9% year-on-year. The EBITDA margin stood at 6.2%
INCOME STATEMENT - United States Millions of Dollars | |||
1Q19 | 1Q18 | Var.% | |
Total Revenues | 1,992 | 2,004 | -0.6% |
Service Revenues | 1,690 | 1,679 | 0.6% |
Equipment Revenues | 302 | 325 | -6.9% |
EBITDA | 123 | 152 | -18.9% |
% total revenues | 6.2% | 7.6% | |
EBIT | 105 | 132 | -20.9% |
% | 5.3% | 6.6% | |
United States Operating Data | |||
1Q19 | 1Q18 | Var.% | |
Wireless Subscribers (thousands) | 21,599 | 22,761 | -5.1% |
Straight Talk | 9,359 | 9,041 | 3.5% |
SafeLink | 2,660 | 3,694 | -28.0% |
Other Brands | 9,581 | 10,026 | -4.4% |
MOU | 553 | 512 | 7.9% |
ARPU (US$) | 26 | 24 | 6.8% |
Churn (%) | 3.7% | 4.1% | (0.4) |
Telekom Austria Group
With a total of 20.9 million subscribers at the end of March, our wireless base was up 1.3% year on year, with our postpaid base up 3.6% and our prepaid base down 5.9%.On the postpaid segment we added 47 thousand contract subs in the quarter, this figure reflects net additions in Croatia and Serbia showing strong demand for mobile WiFi routers, but also a clean-up of our postpaid base in Bulgaria of 110 thousand subscribers. In prepaid we had net disconnections of 139 thousand in the quarter, including 61 thousand in Austria as a result of regulations that require registering SIM cards as of January 1st.
Fixed RGUs increased 3.5% year-on-year. In Austria, fixed voice RGUs came down 20 thousand lines, while Croatia, Slovenia and Macedonia registered solid growth mostly due to broadband and PayTV units.
Group revenues increased 1.5% with service revenues rising 2.9% and equipment revenues falling 6.6%. Fixed service revenues expanded 4.6%, increasing in all markets, with particularly strong growth in ICT solutions and connectivity revenues in Austria. Altogether, our operations in Eastern Europe posted fixed service revenue growth of 12.3% over the year led by Bulgaria and Belarus.
On the mobile segment, group service revenues of 495 million euros were up 1.5% year over year. In Austria, this revenue line remained flat year-on-year in spite of the reduction of roaming and interconnection revenues, whereas in the other countries we posted an increase of 3.1%.
EBITDA was up 1.9%—excluding restructuring charges—to 395 million euros, 36.3% of revenues. In Eastern Europe EBITDA increased 11%, with all segments showing annual growth which was noteworthy in Bulgaria and Macedonia. In Austria, EBITDA declined 3.3% due to lower equipment margin and higher personnel costs.
We acquired spectrum rights in Austria on 100 to 140MHz in the 3.5GHz frequency depending on the region. In Croatia and Belarus we obtained spectrum rights in the 2.1 GHz frequency.
Telekom Austria implemented IFRS16 accounting standards on a retrospective basis. As such, the EBITDA figures have been prepared under the same methodology.
INCOME STATEMENT (In accordance with IFRS 16) - A1 Telekom Austria Group | |||
Millions of Euros | |||
1Q19 | 1Q18 | Var.% | |
Total Revenues | 1,089 | 1,073 | 1.5% |
Total service revenues | 924 | 899 | 2.9% |
Wireless service revenues | 495 | 488 | 1.5% |
Fixed-line service revenues | 430 | 411 | 4.6% |
Equipment revenues | 144 | 154 | -6.6% |
Other operating income | 22 | 21 | 3.1% |
EBITDA | 374 | 388 | -3.5% |
% total revenues | 34.3% | 36.1% | |
EBIT | 140 | 62 | 126.8% |
% total revenues | 12.9% | 5.8% | |
For further detail please visit www.a1.group/en/investor-relations |
A1 Telekom Austria Group Operating Data | |||
1Q19 | 1Q18 | Var.% | |
Wireless Subscribers (thousands) | 20,908 | 20,640 | 1.3% |
Postpaid | 16,263 | 15,703 | 3.6% |
Prepaid | 4,645 | 4,937 | -5.9% |
MOU(1) | 354 | 339 | 4.5% |
ARPU (Euros) | 8 | 8 | 0.2% |
Churn (%) | 1.8% | 1.8% | 0.0 |
Revenue Generating Units (RGUs)* | 6,248 | 6,035 | 3.5% |
*Fixed Line, Broadband and Television. | |||
(1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers. |
Appendix 1
América Móvil’s Income Statement | |||
Millions of Mexican pesos |
1Q19 |
Changes brought |
1Q19 |
|
IAS 17 |
about by IFRS 16 |
IFRS 16 |
Total Costs and Expenses | 177,665 | (7,060) | 170,605 |
EBITDA | 67,988 | 7,060 | 75,048 |
Depreciation & Amortization | 33,800 | 5,861 | 39,662 |
EBIT | 34,187 | 1,199 | 35,386 |
Net Interest Expense | 6,702 | 2,063 | 8,764 |
Other Financial Expenses | 674 | 674 | |
Foreign Exchange Loss | (8,250) | (8,250) | |
Comprehensive Financing Cost (Income) | (874) | 2,063 | 1,188 |
Income & Deferred Taxes | 14,088 | (82) | 14,006 |
Net Income before Minority | |||
Interest and Equity Participation in Results | 20,974 | (782) | 20,192 |
of Affiliates | |||
Equity Participation in Results of Affiliates | 15 | 15 | |
Minority Interest | (765) | (765) | |
Net Income | 20,225 | (782) | 19,443 |
Appendix 2
Balance Sheet - América Móvil Consolidated | ||||||||
Millions of |
Mar ‘19 IAS 17 |
Changes brought about by IFRS 16 |
Mar ‘19 |
|
Mar ‘19 IAS 17 |
Changes brought about by IFRS 16 |
Mar ‘19 IFRS 16 | |
Current Assets | 358,480 |
358,480 |
|
Current Liabilities | ||||
Short Term Debt* | 161,416 | 161,416 | ||||||
Lease-Related Debt | 26,437 | 26,437 | ||||||
Non Current |
Other Current Liabilities |
345,594 | 26 | 345,620 | ||||
Plant & |
630,808 | 115,542 | 746,350 | 507,010 | 26,463 | 533,473 | ||
Deferred Assets | Non Current Liabilities | |||||||
Goodwill (Net) & |
269,778 |
269,778 |
|
Long Term Debt | 492,917 | 492,917 | ||
Others | 175,895 |
175,895 |
|
Lease-Related Debt | 89,861 | 89,861 | ||
Other Liabilities | 176,480 | 176,480 | ||||||
1,176,407 | 116,324 | 1,292,730 | ||||||
Shareholder's Equity | 258,554 | (782) | 257,772 | |||||
|
|
|||||||
Total Assets | 1,434,960 | 115,542 |
1,550,502 |
|
Total Liabilities and Equity |
1,434,960 | 115,542 | 1,550,502 |
Net debt/EBITDA - América Móvil Consolidated | |
Dollar terms | Mar’ 19 |
Net debt/ EBITDA* | 2.27x |
Net debt - Leases/EBITDA AL* | 2.08x |
Net debt - Leases/ EBITDAIAS17 LTM** | 1.95x |
EBITDA AL = EBITDA after leases = EBITDA - ” depreciation costs - ” interests costs | |
* Annualizing first quarter EBITDA and EBITDA AL. | |
** Using LTM EBITDA under IAS 17. |
Appendix 3
EBITDA (IAS 17) Millions in Local Currency | |||
1Q19 | 1Q18 | Var.% | |
Mexico | |||
EBITDA | 22,666 | 22,430 | 1.1% |
% of Total Revenues | 33.7% | 34.0% | |
Argentina, Paraguay & Uruguay | |||
EBITDA | 7,398 | 5,167 | 43.2% |
% of Total Revenues | 36.0% | 36.0% | |
Brazil | |||
EBITDA | 2,957 | 2,836 | 4.3% |
% of Total Revenues | 33.1% | 32.1% | |
Chile | |||
EBITDA | 32,732 | 34,410 | -4.9% |
% of Total Revenues | 15.9% | 17.7% | |
Colombia | |||
EBITDA | 1,224 | 1,146 | 6.8% |
% of Total Revenues | 41.8% | 40.8% | |
Ecuador | |||
EBITDA | 130 | 124 | 4.7% |
% of Total Revenues | 39.9% | 39.4% | |
Perú | |||
EBITDA | 314 | 316 | -0.6% |
% of Total Revenues | 24.9% | 23.7% | |
Central America | |||
EBITDA Pro Forma | 195 | 207 | -5.8% |
% of Total Revenues | 32.0% | 32.4% | |
Caribbean | |||
EBITDA | 135 | 129 | 4.7% |
% of Total Revenues | 29.9% | 27.0% |
Glossary of Terms
ARPU |
Average Revenue per User. The ratio of service revenues in a given period to the average number of wireless subscribers in the same period. It is presented on a monthly basis. |
| |
ARPM |
Average Revenue per Minute. The ratio of service revenues to airtime traffic. |
| |
Capex |
Capital Expenditure. Accrued capital expenditures related to the expansion of the telecommunications infrastructure. |
| |
Churn |
Disconnection Rate. The ratio of wireless subscribers disconnected during a given period to the number of wireless subscribers at the beginning of that period. |
| |
EBIT |
Earnings Before Interest and Taxes, also known as Operating Profit. |
EBIT |
The ratio of EBIT to total operating revenue. |
|
|
EBITDA | Earnings Before Interest, Taxes, Depreciation, and Amortization. |
EBITDA |
The ratio of EBITDA to total operating revenue. |
|
|
EPS |
Earnings per share. Total earnings in Mexican pesos divided by total shares. |
|
|
Earnings |
Total earnings in U.S. dollars divided by total ADRs equivalent. |
|
|
Equity |
Subscribers weighted by the economic interest held in each company. |
|
|
Gross |
Total number of subscribers acquired during the period. |
|
|
Licensed |
Licensed population. Population covered by the licenses that each of the companies manage. |
|
|
LTE | Long-term evolution is a 4th generation standard for wireless communication of high-speed data for mobile phones and data terminals. |
Market |
A company’s subscriber base divided by the total number of subscribers in that country. |
|
|
MBOU | Megabytes of Use per subscriber. The ratio of wireless data in a given period to the average number of wireless subscribers in that same period. It is presented on a monthly basis. |
MOU | Minutes of Use per subscriber. The ratio of wireless traffic in a given period to the average number of wireless subscribers in that same period. It is presented on a monthly basis. |
Net |
The difference in the subscriber base from one period to another. It is the different between gross additions and disconnections. |
|
|
Net debt | Total short and long term debt minus cash and marketable securities. |
Net debt |
The ratio of total short and long term debt minus cash and securities to trailing 12-month income before interest, taxes, depreciation and amortization. |
|
|
Prepaid | Subscriber that may purchase airtime to recharge a cellular phone. The client does not hold a contract with the company for voice and data services. |
Postpaid | Subscriber that has a contract for the use of airtime. The client has no need of activating airtime, it is done so immediately. |
SMS | Short Message Service. |
SAC |
Subscriber Acquisition Cost. The sum of handset subsidies, marketing expenses and commissions to distributors for handset activation. Handset subsidy is calculated as the difference between equipment cost and equipment revenues. |
|
|
Wireless |
|
penetration |
The ratio of total wireless subscribers in any given country divided by the total population in that country. |
Exchange Rates Local Currency Units per USD | |||
1Q19 | 1Q18 | Var.% | |
Mexico | |||
EoP | 19.32 | 18.34 | 5.3% |
Average | 19.22 | 18.76 | 2.4% |
Brazil | |||
EoP | 3.90 | 3.32 | 17.2% |
Average | 3.77 | 3.25 | 16.2% |
Argentina | |||
EoP | 43.35 | 20.15 | 115.1% |
Average | 39.01 | 19.69 | 98.1% |
Chile | |||
EoP | 679 | 603 | 12.5% |
Average | 667 | 602 | 10.8% |
Colombia | |||
EoP | 3,191 | 2,780 | 14.8% |
Average | 3,137 | 2,857 | 9.8% |
Guatemala | |||
EoP | 7.68 | 7.40 | 3.8% |
Average | 7.72 | 7.37 | 4.8% |
Honduras | |||
EoP | 24.60 | 23.64 | 4.1% |
Average | 24.55 | 23.75 | 3.4% |
Nicaragua | |||
EoP | 32.71 | 31.16 | 5.0% |
Average | 32.53 | 30.98 | 5.0% |
Costa Rica | |||
EoP | 604 | 569 | 6.1% |
Average | 610 | 572 | 6.6% |
Peru | |||
EoP | 3.32 | 3.23 | 2.8% |
Average | 3.33 | 3.24 | 2.7% |
Paraguay | |||
EoP | 6,181 | 5,548 | 11.4% |
Average | 6,074 | 5,581 | 8.8% |
Uruguay | |||
EoP | 33.48 | 28.39 | 17.9% |
Average | 32.82 | 28.51 | 15.1% |
Dominican Republic | |||
EoP | 50.59 | 49.39 | 2.4% |
Average | 50.56 | 48.96 | 3.3% |
Austria & CEE | |||
EoP | 0.89 | 0.81 | 9.9% |
Average | 0.88 | 0.81 | 8.3% |
Exchange Rates Local Currency Units per MxP | |||
1Q19 | 1Q18 | Var.% | |
USA | |||
EoP | 0.05 | 0.05 | -5.0% |
Average | 0.05 | 0.05 | -2.4% |
Brazil | |||
EoP | 0.20 | 0.18 | 11.3% |
Average | 0.20 | 0.17 | 13.4% |
Argentina | |||
EoP | 2.24 | 1.10 | 104.3% |
Average | 2.03 | 1.05 | 93.4% |
Chile | |||
EoP | 35.1 | 32.9 | 6.8% |
Average | 34.7 | 32.1 | 8.2% |
Colombia | |||
EoP | 165 | 152 | 9.0% |
Average | 163 | 152 | 7.2% |
Guatemala | |||
EoP | 0.40 | 0.40 | -1.4% |
Average | 0.40 | 0.39 | 2.3% |
Honduras | |||
EoP | 1.27 | 1.29 | -1.2% |
Average | 1.28 | 1.27 | 0.9% |
Nicaragua | |||
EoP | 1.69 | 1.70 | -0.3% |
Average | 1.69 | 1.65 | 2.5% |
Costa Rica | |||
EoP | 31.26 | 31.03 | 0.7% |
Average | 31.73 | 30.48 | 4.1% |
Peru | |||
EoP | 0.17 | 0.18 | -2.3% |
Average | 0.17 | 0.17 | 0.2% |
Paraguay | |||
EoP | 320 | 302 | 5.8% |
Average | 316 | 297 | 6.2% |
Uruguay | |||
EoP | 1.73 | 1.55 | 12.0% |
Average | 1.71 | 1.52 | 12.4% |
Dominican Republic | |||
EoP | 2.62 | 2.69 | -2.7% |
Average | 2.63 | 2.61 | 0.8% |
AMÉRICA MÓVIL, S.A.B. DE C.V. | ||
By: |
/S/ Carlos José García Moreno Elizondo
| |
Name: Title: |
Carlos José García Moreno Elizondo
Chief Financial Officer |