amxpr1q15_6k.htm - Generated by SEC Publisher for SEC Filing

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
 
For the month of April, 2015

Commission File Number: 1-16269
 

AMÉRICA MÓVIL, S.A.B. DE C.V.
(Exact name of registrant as specified in its charter)
America Mobile
(Translation of Registrant´s name into English)
 
Lago Zurich 245
Plaza Carso / Edificio Telcel
Colonia Granada Ampliación 
11529 Mexico, D.F., Mexico
(Address of principal executive office)
 

Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F. 
Form 20-F ___X___ Form 40-F _______

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):
Yes _______ No ___X____

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
Yes _______ No ___X____

Indicate by check mark whether the registrant by furnishing the information contained in this Form 6-K is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____


 

 

 

 

América Móvil’s first quarter of
2015 financial and operating report

 

Mexico City, April 23, 2015 - América Móvil, S.A.B. de C.V. (“América Móvil”) [BMV: AMX] [NYSE: AMX] [NASDAQ: AMOV] [LATIBEX: XAMXL], announced today its financial and operating results for the first quarter of 2015.

 

We ended March with 368 million access lines after net additions of 125 thousand in the quarter. This figure includes 289.6 million were wireless subscribers, 34.5 million landlines, 22.3 million broadband accesses and 21.6 million PayTV units.

 

Brazil was our largest and fastest growing operation. We finished March with 108.3 million access lines, 5.8% more than the year before.

 

Our first quarter revenues totaled 220 billion pesos, 3.1% more than a year before in Mexican peso terms. At constant exchange rates service revenues were up 1.0% in the quarter (pro-forma).

 

Mobile data revenues continued to be the more important driver of growth, followed by PayTV, rising 12.0%, and 9.9%, respectively. Fixed broadband revenues increased 9.2%, while voice revenues continued their downward trend in both fixed and mobile platforms.

 

Consolidated EBITDA totaled 68.2 billion pesos in the quarter. At constant exchange rates it was down 2.1% year on year. The EBITDA margin stood at 31.0% of revenues.

 

Our operating profits declined 6.6% in Mexican peso terms as depreciation and amortization charges rose 1.6%. Our comprehensive financing cost reflected foreign exchange losses of 17.8 billion pesos, mostly on account of the sharp depreciation of the Brazilian real vs. the U.S. dollar in the quarter.

 

In the quarter we funded capital expenditures in the amount of 29.0 billion pesos and distributed 11.4 billion pesos to shareholders.

 

Our net debt ended March at 536 billion pesos. It was equivalent to 1.75 times LTM EBITDA.

 

América Móvil Fundamentals (IFRS)

 

1Q15

1Q14

Var. %

EPS (Mex$) (1)

0.12

0.20

-40.3%

Earning per ADR (US$) (2)

0.16

0.31

-47.0%

Net Income (millions of Mex$)

8,227

14,215

-42.1%

Average Shares Outstanding (billion) (3)

67.84

70.02

-3.1%

(1) Net Income / Average Shares outstanding

(2) 20 shares per ADR

(3) All figures in the table reflect retroactively the 2:1 split that became effective on June 29th, 2011

(4) As per Bank of NY Mellon

 

 

 


 
 

 

Relevant Events

 

On March 17th, we announced that our Board of Directors decided to submit for approval at the annual Shareholders’ meeting that will be held on April 30th, an ordinary dividend payment of MXP $0.26 per share payable in July and November, and an extraordinary dividend payment of MXP $0.30 to be paid in September. A proposal to increase the amount allocated for share repurchases by MXP $35 billion will also presented in the meeting.

 

On March 18th, we announced that we entered into an agreement in Mexico with Axtel and Avantel to settle all disputes regarding termination rates and related interconnection matters that started in 2005. In addition, disputed and outstanding amounts related to mobile termination services for the period from 2005 to 2014 have been paid by Telcel and Telmex and amounted to MXP$ 950 million. We also announced that Axtel and Telcel executed a reseller agreement for the commercialization by Axtel of mobile telecommunication services as an MVNO. Likewise, Axtel and Telmex executed a passive infrastructure-sharing services agreement.

 

On April 17th, our shareholders approved the spin-off of a new company called Telesites, S.A.B. de C.V., the assets of which mainly comprise approximately 10,800 towers and other passive infrastructure used by our wireless operations in Mexico. It will have a net debt of MXP$ 21 billion. We expect the spin-off to take effect by July.

 

 

Access Lines

 

We ended March with 368 million access lines, 125 thousand more than we had at the end of 2014, as we proceeded in the quarter with a cleanup of our client base in various countries. Altogether we had 289.6 million wireless subscribers, 34.5 million landlines, 22.3 million broadband accesses and 21.6 million PayTV units.

 

América Móvil’s Subsidiaries as of March 2015

 

Country

Brand

Business

Equity

Participation

Consolidation Method

Mexico

Telcel

wireless

100.0%

Global Consolidation Method

 

Telmex

wireline

98.7%

Global Consolidation Method

 

Sección Amarilla (1)

other

98.4%

Global Consolidation Method

 

Telvista

other

89.4%

Global Consolidation Method

Argentina

Claro

wireless

100.0%

Global Consolidation Method

 

Telmex

wireline

99.7%

Global Consolidation Method

Brazil

Claro (2)

wireless

96.1%

Global Consolidation Method

Chile

Claro

wireless

100.0%

Global Consolidation Method

 

Telmex(1)

wireline

100.0%

Global Consolidation Method

Colombia

Claro

wireless

99.4%

Global Consolidation Method

 

Telmex

wireline

99.3%

Global Consolidation Method

Costa Rica

Claro

wireless

100.0%

Global Consolidation Method

Dominicana

Claro

wireless/wireline

100.0%

Global Consolidation Method

Ecuador

Claro

wireless

100.0%

Global Consolidation Method

 

Telmex(1)

wireline

98.4%

Global Consolidation Method

El Salvador

Claro

wireless/wireline

95.8%

Global Consolidation Method

Guatemala

Claro

wireless/wireline

99.3%

Global Consolidation Method

Honduras

Claro

wireless/wireline

100.0%

Global Consolidation Method

Nicaragua

Claro

wireless/wireline

99.6%

Global Consolidation Method

Panama

Claro

wireless

100.0%

Global Consolidation Method

Paraguay

Claro

wireless

100.0%

Global Consolidation Method

Peru

Claro

wireless/wireline

100.0%

Global Consolidation Method

Puerto Rico

Claro

wireless/wireline

100.0%

Global Consolidation Method

Uruguay

Claro

wireless/wireline

100.0%

Global Consolidation Method

USA

Tracfone

wireless

98.2%

Global Consolidation Method

Netherlands

KPN

wireless/wireline

21.1%

Equity Method

Austria

Telekom Austria

wireless/wireline

59.7%

Global Consolidation Method

(1) Equity Participation of Telmex Internacional of which América Móvil owns 97.8%.

(2) On December 31, 2014, Embratel and Net merged into Claro of which América Móvil owns 79.2% through Telmex Internacional and 16.9% through Sercotel. As of February 2nd, reflects the acquisition of minority shareholders.

 

Brazil, our largest operation, had at the end of that month 108.3 million access lines, 5.8% more than the year before. Brazil was our fastest growing operation.

 


 
 

 

 

 

Wireless Subscribers

 

At the close of the quarter we had 290 million clients after net additions of 197 thousand subs, as we disconnected clients in some countries that were not meeting traffic standards. As for our postpaid base it increased 4.6% year-on-year to 60.1 million subscribers, after net gains of 592 thousand clients in the quarter, including 273 thousand in Mexico and 240 thousand in Brazil. Central America was our fastest growing region in postpaid—15.3%—with Brazil and Mexico expanding at an 8.8% and 7.2% rate respectively. 

 

 

Brazil is now almost as large as Mexico in terms of wireless subscribers. Colombia contributes 10.3% of our subs followed by TracFone in the US with 8.9%. Altogether our operations in the Argentinean block represent approximately 7.6%, while those in Europe and the ones in the Central America-Caribbean block each account for 7%.

 

Wireless Subscribers as of March 2015

 

Total(1) (Thousands)

Country

Mar'15

Dec'14

Var.%

Mar'14

Var.%

Argentina, Paraguay and Uruguay

21,900

22,000

-0.5%

21,936

-0.2%

Austria & CEE

19,994

20,008

-0.1%

19,988

0.0%

Brazil

71,942

71,107

1.2%

68,749

4.6%

Central America & Caribbean

19,465

19,065

2.1%

23,409

-16.8%

Chile

5,854

5,754

1.7%

5,870

-0.3%

Colombia

29,834

29,776

0.2%

29,210

2.1%

Ecuador

10,505

11,772

-10.8%

12,145

-13.5%

Mexico

72,074

71,463

0.9%

73,343

-1.7%

Peru

12,390

12,498

-0.9%

12,030

3.0%

USA

25,688

26,006

-1.2%

25,511

0.7%

Total Wireless Lines

289,646

289,449

0.1%

292,192

-0.9%

(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. *Central America includes Panama and Costa Rica in every table.

*Includes Panama’s wireless subscribers.

 


 
 

 

 

 

 

Fixed Revenue Generating Units

 

At the end of March we had 78.3 million RGUs, after disconnecting 674 thousand broadband accesses in Mexico as we changed our churn policy. On a year-on-year comparison, our fixed-RGU base increased by 4.6%, with PayTV units expanding 7.0%, broadband accesses rising 5.0% and fixed lines growing 3.0%.

 

Nearly half of the RGUs—46%—were in Brazil, with Mexico accounting for 28%, Colombia 7%, and both Central America and Europe (Telekom Austria) slightly less than 6%.

 

Fixed-Line and Other Accesses (RGUs) as of March 2015

 

Total (Thousands)

Country

Mar'15

Dec'14

Var.%

Mar'14

Var.%

Argentina, Paraguay and Uruguay

588

595

-1.2%

568

3.5%

Austria & CEE

4,458

4,402

1.3%

4,226

5.5%

Brazil

36,346

36,096

0.7%

33,597

8.2%

Central America & Caribbean

7,084

6,953

1.9%

6,632

6.8%

Chile

1,224

1,231

-0.6%

1,200

2.0%

Colombia

5,471

5,307

3.1%

4,932

10.9%

Ecuador

357

343

3.8%

322

10.6%

Mexico

21,554

22,250

-3.1%

22,311

-3.4%

Peru

1,257

1,233

1.9%

1,091

15.2%

Total RGUs

78,339

78,412

-0.1%

74,880

4.6%

 

 

América Móvil Consolidated Results

 

In the first quarter of the year we saw some strong job growth indicators in the U.S. that buoyed expectations of a more rapid economic expansion in that country and possibly also in the rest of the world, helped along by quantitative easing in Europe and by oil prices that remained depressed worldwide. There appeared to be a good chance that economic activity would pick up in the industrialized world.  Whereas such improvement would potentially benefit Latin American countries it would also lead to greater financial volatility in anticipation of interest rates being raised in the U.S., which in turn could negatively affect the region.

 

Our consolidated revenues were up 3.1% in peso terms from a year before to 220 billion pesos, with service revenues rising 0.6%, while our EBITDA declined 3.1% relative to the prior year to 68.2 billion pesos as our consolidated EBITDA margin came down to 31%.  At constant exchange rates service revenues rose 1.0% and EBITDA fell 2.1%. The deceleration observed by service revenues reflects among other things the impact of the various regulatory measures implemented in Mexico including the elimination of termination charges for calls that terminate on our networks, and of national roaming and long distance charges (the latter ones from January 1st) on both the mobile and fixed-line platforms.

 


 
 

 

 

In Latin America data revenues increased 14.9% on the mobile platform and 10.8% on the fixed one at constant exchange rates, with PayTV revenues climbing 9.9% and voice revenues down 10.5% in both the mobile and fixed-line platforms.

 

The South American block continued to be the main driver of service revenue growth—4.6% year on year at constant exchange rates—followed by Central America and the Caribbean with 3.8%. whereas in Mexico they were down 6.0% on account of the measures mentioned above.  In the U.S. service revenues rose 7.3% and in Europe they were flat (at constant exchange rates).

 

América Móvil’s Income Statement (IFRS) Pro-forma* Millions of Mexican pesos

 

1Q15

1Q14

Var.%

Service Revenues

193,755

192,630

0.6%

Equipment Revenues

26,281

20,801

26.3%

Total Revenues

220,036

213,431

3.1%

Cost of Service

67,012

64,088

4.6%

Cost of Equipment

34,195

31,238

9.5%

Selling, General & Administrative Expenses

48,763

45,637

6.8%

Others

1,818

2,011

-9.6%

Total Costs and Expenses

151,788

142,974

6.2%

EBITDA

68,248

70,457

-3.1%

% of Total Revenues

31.0%

33.0%

 

Depreciation & Amortization

30,534

30,064

1.6%

EBIT

37,714

40,393

-6.6%

% of Total Revenues

17.1%

18.9%

 

Net Interest Expense

6,326

6,374

-0.8%

Other Financial Expenses

57

2,890

-98.0%

Foreign Exchange Loss

17,833

-79

n.m.

Comprehensive Financing Cost (Income)

24,217

9,185

163.6%

Income & Deferred Taxes

4,397

16,550

-73.4%

Net Income before Minority

Interest and Equity

9,101

14,657

-37.9%

Participation in Results of Affiliates minus

 

 

 

Equity Participation in Results of Affiliates**

6

-29

121.0%

Minority Interest

-879

-413

-112.9%

Net Income

8,227

14,215

-42.1%

* All periods include Telekom Austria Group results pro-forma

** Includes KPN

n.m. Not meaningful

 


 
 

 

 

 

Our operating profit was down 6.6% from the prior year to 37.7 billion pesos, after taking into account depreciation and amortization charges that rose 1.6%. Our comprehensive financing cost stood at 24.2 billion pesos as we incurred foreign exchange losses of 17.8 billion pesos, mostly on account of the sharp depreciation of the Brazilian real vs. the U.S. dollar, the value of which shot up 21% in the quarter in reai terms. Foreign exchange losses arose from intercompany loans; the currency position vis-à-vis third parties presented a net gain of 7.2 billion pesos.

 

We obtained a net profit of 8.2 billion pesos in the quarter. It was equivalent to 12 peso cents per share or 16 dollar cents per ADR.

 

Balance Sheet (in accordance with IFRS) - América Móvil Consolidated Millions of Mexican Pesos

 

Mar '15

Dec '14

Var.%

 

Mar '15

Dec '14

Var%

Current Assets

 

 

 

 

Current Liabilities

 

 

 

Cash & Securities

56,209

66,474

-15.4%

 

Short Term Debt**

90,599

57,324

58.0%

Accounts Receivable

163,189

168,120

-2.9%

 

Accounts Payable

232,551

254,000

-8.4%

Other Current Assets

23,700

17,884

32.5%

 

Other Current Liabilities

63,681

67,106

-5.1%

Inventories

33,568

35,930

-6.6%

 

 

386,831

378,430

2.2%

 

276,667

288,408

-4.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non Current Assets

 

 

 

 

Non Current Liabilities

 

 

 

Plant & Equipment

558,620

595,596

-6.2%

 

Long Term Debt

501,746

539,067

-6.9%

Investments in Affiliates

45,255

49,263

-8.1%

 

Other Liabilities

120,109

120,555

-0.4%

 

 

 

 

 

 

621,854

659,622

-5.7%

Deferred Assets

 

 

 

 

 

 

 

 

Goodwill (Net)

135,525

138,657

-2.3%

 

 

 

 

 

Intangible Assets

101,573

106,812

-4.9%

 

Shareholder's Equity

210,195

238,946

-12.0%

Deferred Assets

101,240

98,261

3.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

1,218,880

1,276,997

-4.6%

 

Total Liabilities and Equity

1,218,880

1,276,997

-4.6%

* Results include Telekom Austria Pro-forma.

** Includes current portion of Long Term Debt.

 

 

 

 


 
 

 

Our net debt, 536 billion pesos, was up slightly from December, 530 billion, and was equivalent to 1.75 times LTM EBITDA. Our capital expenditures reached 29.0 billion pesos and our share buybacks and dividends 11.4 billion pesos.

 

Financial Debt of América Móvil* Millions of U.S. dollars equivalent

 

Dec-14

Mar-15

Peso - denominated debt

5,783

6,660

Bonds and other securities

5,762

5,525

Banks and others

21

1,136

U.S. Dollar - denominated debt

16,026

15,510

Bonds and other securities

15,727

12,670

Banks and others

299

2,840

Debt denominated in other currencies

18,712

16,917

Bonds and other securities

17,657

15,978

Banks and others

1,055

939

Total Debt

40,521

39,088

*This chart does not include the effect of forwards and derivatives used to hedge the foreign exchange exposure.

*Pro-forma

 

 

 

Mexico

 

We gained 611 thousand clients in the first quarter—273 thousand of which were postpaid subscribers, our best performance in at least two years—to end March with 72.1 million wireless subs. Our postpaid base increased 7.2% from the year-earlier quarter. On the fixed line platform we lost 757 thousand accesses, most of them broadband accesses, to finish the period with 21.6 million accesses. The reduction in broadband accesses was due to a change in the policy for recognition of active clients.

 

Revenues totaled 66.6 billion pesos and were down 1.9%, with service revenues falling 6.0% on account of the various regulatory measures implemented since last year, including the elimination of national long distance charges that took effect at the beginning of the year. Whereas voice revenues plummeted given the above, data revenues expanded at a solid pace: 9.7% on mobile and 8.8% on the fixed-line platform. Mobile data revenues now account for 53.3% of mobile service revenues.

 

EBITDA came in at 27.8 billion pesos and was equivalent to 41.7% of revenues.  Relative to the prior year it was down 7.7%.

 

We continued with the rollout of our 4G LTE network that reaches now over 70 million people. As for mobile number portability, we kept a positive balance in the quarter.

 

We are proceeding with the spin-off of approximately 10,800 towers and other passive infrastructure used by Telcel. The new company, Telesites, will have MXP $21 billion of net debt.

 

INCOME STATEMENT (IFRS) - Mexico Millions of MxP

 

1Q15

1Q14

Var.%

Total Revenues

66,562

67,829

-1.9%

Wireless Revenues

43,084

43,920

-1.9%

Service Revenues

33,685

36,763

-8.4%

Equipment Revenues

9,444

7,279

29.7%

Fixed Line and Other Revenues

24,938

26,128

-4.6%

EBITDA

27,771

30,091

-7.7%

% total revenues

41.7%

44.4%

 

EBIT

21,343

23,825

-10.4%

%

32.1%

35.1%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 


 
 

 

 

Mexico Operating Data (IFRS)

 

1Q15

1Q14

Var.%

Wireless Subscribers (thousands)

72,074

73,343

-1.7%

Postpaid

10,229

9,546

7.2%

Prepaid

61,845

63,797

-3.1%

MOU

253

265

-4.4%

ARPU (MxP)

156

166

-6.0%

Churn (%)

3.8%

3.9%

(0.2)

Revenue Generating Units (RGUs) *

21,554

22,311

-3.4%

* Fixed Line and Broadband

 

 

Argentina, Paraguay and Uruguay

 

We finished March with 21.9 million wireless subscribers after net disconnections of 100 thousand clients in the quarter. We also had 588 thousand fixed RGUs, 3.5% more than a year ago.

 

First quarter revenues reached 6.7 billion Argentinean pesos and were up 33.8% year-on-year. Wireless service revenues rose 24.3% on the back of mobile data revenues that rose 32.8%. Fixed line revenues of 429 million Argentinean pesos expanded 18.7% relative to the year before.

 

EBITDA for the quarter was 2.3 billion Argentinean pesos, up 41.8%. The EBITDA margin was equivalent to 33.6% of revenues, 1.9 percentage points higher than in the year-earlier quarter.

 

In the first quarter, we had a positive balance from mobile number portability in Argentina.

 

INCOME STATEMENT (IFRS) - Argentina, Paraguay & Uruguay Millions of ARP

 

1Q15

1Q14

Var.%

Total Revenues

6,746

5,043

33.8%

Wireless Revenues

6,353

4,723

34.5%

Service Revenues

4,714

3,792

24.3%

Equipment Revenues

1,637

931

75.8%

Fixed Line and Other Revenues

429

361

18.7%

EBITDA

2,269

1,600

41.8%

% total revenues

33.6%

31.7%

 

EBIT

1,830

1,290

41.8%

%

27.1%

25.6%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 


 
 

 

 

Argentina, Paraguay & Uruguay Operating Data (IFRS)

 

1Q15

1Q14

Var.%

Wireless Subscribers (thousands)

21,900

21,936

-0.2%

Postpaid

2,750

2,925

-6.0%

Prepaid

19,150

19,011

0.7%

MOU

121

132

-8.6%

ARPU (ARP)

71

57

24.5%

Churn (%)

2.4%

2.5%

(0.1)

Revenue Generating Units (RGUs) *

588

568

3.5%

* Fixed Line, Broadband and PayTV.

 

 

 

 

Brazil

 

In the first quarter we added 611 thousand mobile subscribers, 240 thousand of which were postpaid clients, and finished the quarter with 71.9 million subs, 4.6% more than a year before, with the postpaid base advancing 8.8%. On the fixed-line platform we reached 36.3 million RGUs, 8.2% more than a year before, having gained 250 thousand in the period.

 

Total revenues were up 4.9% to 9.0 billion reais, with service revenues expanding slightly faster, 5.0%. Mobile data revenues are leading the way with a 30.0% year-on-year increase, followed by fixed broadband revenues, up 12.5%, and by PayTV with 9.5%. Fixed and mobile voice revenues were both down, with the latter reflecting the impact of the reduction of interconnection rates. Revenues on the fixed-line platform—they account for two thirds of our total revenues in the country—expanded 7.4% from the year-earlier quarter.

 

EBITDA was up 4.1% from the prior year to 2.3 billion reais,. The EBITDA margin remained practically unchanged in the period.

 

Following the merger of Claro, Embratel and Net Serviços that took place at the end of 2014, we have been working on integrating the operating and commercial structures of all companies to become more cost efficient.

 

INCOME STATEMENT (IFRS) - Brazil Millions of BrL

 

1Q15

1Q14

Var.%

Total Revenues

9,013

8,594

4.9%

Wireless Revenues

3,035

3,024

0.3%

Service Revenues

2,712

2,743

-1.1%

Equipment Revenues

321

280

14.7%

Fixed Line and Other Revenues

5,979

5,569

7.4%

EBITDA

2,329

2,237

4.1%

% total revenues

25.8%

26.0%

 

EBIT

387

500

-22.7%

%

4.3%

5.8%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

To make it comparable, there were some adjustments in 1Q14 that resulted from the merger of all companies into Claro.

 


 
 

 

 

Brazil Operating Data (IFRS)

 

1Q15

1Q14

Var.%

Wireless Subscribers (thousands)

71,942

68,749

4.6%

Postpaid

15,892

14,605

8.8%

Prepaid

56,050

54,144

3.5%

MOU

81

122

-33.7%

ARPU (BrL)

13

15

-14.2%

Churn (%)

3.1%

3.2%

(0.2)

Revenue Generating Units (RGUs) *

36,346

33,597

8.2%

* Fixed Line, Broadband and Television

 

 

 

Chile

 

After net gains of 100 thousand subs in the quarter we ended March with 5.9 million wireless clients, practically flat compared to the previous year. Fixed RGUs increased 2.0% over the year and we finished the quarter with 1.2 million.

 

First quarter revenues of 177.4 billion Chilean pesos declined 2.7% in annual terms as a result of a 15.4% drop in wireless voice revenues linked to mobile termination rate cuts. Data revenues were up 16.9% in the fixed platform and 8.9% in the wireless one. Altogether fixed line revenues expanded 17.7% to 69.9 billion Chilean pesos; they represent 37.4% of revenues.

 

EBITDA of 10.9 billion Chilean pesos was down 2.4% and the EBITDA margin stood at 6.1% of revenues.

 

We are expanding the reach of our 4G-LTE network which is today available in the most important cities in the country.

 

INCOME STATEMENT (IFRS) - Chile Millions of ChPL

 

1Q15

1Q14

Var.%

Total Revenues

177,387

182,233

-2.7%

Wireless Revenues

116,914

125,011

-6.5%

Service Revenues

98,124

104,883

-6.4%

Equipment Revenues

18,928

20,302

-6.8%

Fixed Line and Other Revenues

69,893

59,379

17.7%

EBITDA

10,891

11,157

-2.4%

% total revenues

6.1%

6.1%

 

EBIT

-39,326

-36,658

-7.3%

%

-22.2%

-20.1%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 


 
 

 

 

Chile Operating Data (IFRS)

 

1Q15

1Q14

Var.%

Wireless Subscribers (thousands)

5,854

5,870

-0.3%

Postpaid

1,385

1,350

2.6%

Prepaid

4,469

4,520

-1.1%

MOU

156

173

-9.9%

ARPU (ChP)

5,710

6,426

-11.1%

Churn (%)

5.5%

5.0%

0.4

Revenue Generating Units (RGUs) *

1,224

1,200

2.0%

* Fixed Line, Broadband and Television

 

 

 

Colombia

 

We had 35.3 million access lines in Colombia at the end of March of which 29.8 million were wireless subscribers, up 2.1% relative to the prior year, and 5.5 million were fixed RGUs, 10.9% greater than those of the year-earlier quarter.

 

Our revenues rose 3.0% year-on-year to 2.9 trillion Colombian pesos, with fixed-line revenues expanding 13.9% —they now account for 22.3% of the total—and wireless revenues nearly flat at 0.9%.  Mobile data and PayTV were the main drivers of revenue growth, with 17.8% and 16.1% respectively, followed by fixed broadband at 12.2% and fixed voice revenues at 7.7%.  Mobile voice revenues continued their downward trend.

 

EBITDA of 1.1 trillion Colombian pesos was nearly flat year-on-year, while the EBITDA margin was slightly down, to 39.3% of revenues from 40.1% the prior year.

 

We continue to increase the coverage of our 4G-LTE network which already processes an important portion of our data traffic.

 

INCOME STATEMENT (IFRS) - Colombia Billions of COP

 

1Q15

1Q14

Var.%

Total Revenues

2,854

2,772

3.0%

Wireless Revenues

2,228

2,208

0.9%

Service Revenues

1,714

1,817

-5.7%

Equipment Revenues

502

381

31.7%

Fixed Line and Other Revenues

639

561

13.9%

EBITDA

1,122

1,112

0.9%

% total revenues

39.3%

40.1%

 

EBIT

745

751

-0.8%

%

26.1%

27.1%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 

 


 
 

 

Colombia Operating Data (IFRS)

 

1Q15

1Q14

Var.%

Wireless Subscribers* (thousands)

29,834

29,210

2.1%

Postpaid

5,840

5,804

0.6%

Prepaid

23,994

23,406

2.5%

MOU

220

209

5.1%

ARPU (COP)

19,067

20,755

-8.1%

Churn (%)

3.9%

4.0%

(0.1)

Revenue Generating Units (RGUs)**

5,471

4,932

10.9%

*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

** Fixed Line, Broadband and Television

 

 

Ecuador

 

Our wireless subscriber base was down 13.5% year-on-year to 10.5 million at the end of March after disconnecting 1.3 million subscribers in the quarter that were not generating traffic. Our postpaid subscriber base was up 1.7% on the year. On the fixed line platform we had 357 thousand RGUs, 10.6% more than a year before.

 

At 410 million dollars first quarter revenues were down 3.5% from a year before, mostly as a result of a 6.4% fall in wireless voice revenues brought about by a sharp decline in the average price per minute of voice, which plummeted 19.3%. The reduction in the average price per minute of voice helped bring about a 29% increase in MOUs, which reached its peak level ever: 195 minutes per user per month.  Fixed line revenues increased 5.6% from a year before.

 

EBITDA of 175 million dollars was 11.4% lower than that of the year-earlier quarter. This reduction is partly linked to an increase in overall subscriber acquisition costs in a market that has become more competitive.

 

INCOME STATEMENT (IFRS) - Ecuador Millions of Dollars

 

1Q15

1Q14

Var.%

Total Revenues

410

425

-3.5%

Wireless Revenues

397

412

-3.8%

Service Revenues

350

365

-4.1%

Equipment Revenues

47

47

-1.3%

Fixed Line and Other Revenues

16

15

5.6%

EBITDA

175

198

-11.4%

% total revenues

42.8%

46.6%

 

EBIT

126

148

-15.1%

%

30.6%

34.8%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 

Ecuador Operating Data (IFRS)

 

1Q15

1Q14

Var.%

Wireless Subscribers (thousands)

10,505

12,145

-13.5%

Postpaid

2,396

2,357

1.7%

Prepaid

8,108

9,788

-17.2%

MOU

195

151

29.1%

ARPU (US$)

11

10

4.2%

Churn (%)

6.9%

2.3%

4.6

Revenue Generating Units (RGUs) *

357

322

10.6%

* Fixed Line, Broadband and Television

 

 


 
 

 

 

 

Peru

 

At the end of the quarter, we had 12.4 million wireless subscribers, 3.0% more than in the same period of the prior year, with our postpaid base rising 8.5%. We disconnected 108 thousand clients in the period that were not generating traffic. On the fixed-line platform, our RGUs increased 15.2% to 1.3 million. 

 

Our revenues rose 7.3% annually to 1.4 billion soles. On the wireless platform, voice revenues increased 4.0% and data revenues expanded 12.1%. Albeit from a small base, fixed voice revenues expanded 11.8% year-on-year and now account for 14.0% of our revenues.

 

EBITDA came down 17.1% from a year before to 399 million soles as the result of higher subscriber acquisition and retention costs, in a more competitive environment.

 

INCOME STATEMENT (IFRS) - Peru Millions of Soles

 

1Q15

1Q14

Var.%

Total Revenues

1,358

1,266

7.3%

Wireless Revenues

1,168

1,098

6.4%

Service Revenues

1,005

944

6.4%

Equipment Revenues

159

149

6.6%

Fixed Line and Other Revenues

190

168

12.8%

EBITDA

399

482

-17.2%

% total revenues

29.4%

38.1%

 

EBIT

249

333

-25.3%

%

18.3%

26.3%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 

Peru Operating Data (IFRS)

 

1Q15

1Q14

Var.%

Wireless Subscribers (thousands)

12,390

12,030

3.0%

Postpaid

3,886

3,582

8.5%

Prepaid

8,504

8,449

0.7%

MOU

151

133

13.5%

ARPU (Sol)

27

26

2.0%

Churn (%)

4.8%

4.1%

0.7

Revenue Generating Units (RGUs) *

1,257

1,091

15.2%

* Fixed Line, Broadband and Television

 

 


 
 

 

 

 

Central America and the Caribbean

 

Our operations in the Central America-Caribbean block finished March with 26.5 million access lines including 19.5 million wireless subscribers and 7.1 million fixed RGUs. We added in the quarter 400 thousand wireless subscribers and 132 thousand new RGUs.

 

First quarter revenues of 997 million dollars were 2.7% higher than in the year-earlier quarter. At constant exchange rates service revenues were up 3.8% mostly buoyed by data revenues that increased 11.1% on the wireless platform and 6.1% on the fixed, and PayTV revenues that expanded 15.1%. Wireless voice revenues came in 1.2% above those of the prior year and fixed voice revenues continued their declining trend.

 

The period’s EBITDA was 316 million dollars, slightly below that of the precedent year, with an EBITDA margin that stood at 31.7% of revenues. The annual comparison is affected by an adjustment in Puerto Rico’s EBITDA in 1Q14 linked to our pension obligations, in absence of which our EBITDA would have risen around 13%.

 

INCOME STATEMENT (IFRS) - Central America and The Caribbean Millions of Dollars

 

1Q15

1Q14

Var.%

Total Revenues

997

971

2.7%

Wireless Revenues

606

581

4.3%

Service Revenues

559

539

3.8%

Equipment Revenues

47

43

10.0%

Fixed Line and Other Revenues

393

390

0.4%

EBITDA

316

318

-0.8%

% total revenues

31.7%

32.8%

 

EBIT

88

70

26.0%

%

8.8%

7.2%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 

Central America and The Caribbean Operating Data (IFRS)

 

1Q15

1Q14

Var.%

Wireless Subscribers (thousands)

19,465

23,409

-16.8%

Postpaid

3,560

3,211

10.9%

Prepaid

15,905

20,199

-21.3%

MOU

216

181

19.4%

ARPU (US$)

10

8

25.3%

Churn (%)

5.1%

4.0%

1.1

Revenue Generating Units (RGUs) *

 

7,084

6,632

6.8%

* Fixed Line, Broadband and Television

 

 

 


 
 

 

 

United States

 

We finished March with 25.7 million clients following a clean-up of our subscriber base that led us to disconnect 318 thousand subscribers mostly from our Lifeline program.

 

Revenues climbed 9.5% to 1.8 billion dollars in the period, with service revenues rising 7.3%. ARPU of 20 dollars was up 4.0% in annual terms.

 

Our EBITDA was slightly down, 1.9%, to 214 million dollars. The reduction in EBITDA is linked to the launch of our new brand TotalWireless. The EBITDA margin  was equivalent to 11.8% of revenues.

 

INCOME STATEMENT (IFRS) - United States Millions of Dollars

 

1Q15

1Q14

Var.%

Total Revenues

1,816

1,659

9.5%

Service Revenues

1,573

1,465

7.3%

Equipment Revenues

243

193

25.9%

EBITDA

214

218

-1.9%

% total revenues

11.8%

13.1%

 

EBIT

203

210

-3.4%

%

11.2%

12.7%

 

 

United States Operating Data (IFRS)

 

1Q15

1Q14

Var.%

Wireless Subscribers (thousands)

25,688

25,511

0.7%

MOU

524

528

-0.8%

ARPU (US$)

20

19

4.0%

Churn (%)

4.5%

3.8%

0.7

 

 

Telekom Austria Group

 

Telekom Austria ended the first quarter with 24.5 million access lines, 1.0% over the prior year; 20 million were wireless subscribers, including 5.4 million in Austria, 4.9 million in Belarus and 4.3 in Bulgaria.

 

First quarter revenues were up 0.8% from the year-earlier quarter to 1.0 billion euros. Operating revenues slightly improved the negative trend to 2.0% supported by revenue growth in Croatia and improved trends in Austria.

 

Adjusted EBITDA increased 7.2% from the year before on the back of strong operational performance in Austria and Belarus; it now represents 33.5% of revenues.

 

INCOME STATEMENT (IFRS) - Telekom Austria Group Millions of Euros

 

1Q15

1Q14

Var.%

Total Revenues

1,000

992

0.8%

Wireless Revenues

655

644

1.8%

Service Revenues

536

561

-4.3%

Equipment Revenues

75

67

11.8%

Fixed Line and Other Revenues

344

348

-1.1%

EBITDA

335

312

7.2%

% total revenues

33.5%

31.5%

 

EBIT

140

97

43.5%

%

14.0%

9.8%

 

 


 
 

 

 

Telekom Austria Group Operating Data (IFRS)

 

1Q15

1Q14

Var.%

Wireless Subscribers (thousands)

19,994

19,988

0.0%

Postpaid

14,164

14,055

0.8%

Prepaid

5,831

5,933

-1.7%

MOU

295

295

-0.1%

ARPU (Euros)

10

13

-21.3%

Churn (%)

1.9%

2.0%

(0.0)

Revenue Generating Units (RGUs) *

4,458

4,226

5.5%

* Fixed Line, Broadband and Television

 

 

 

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 margin  The ratio of EBIT to total operating revenue. 
 
EBITDA  Earnings Before Interest, Taxes, Depreciation, and Amortization. 
   
EBITDA margin  The ratio of EBITDA to total operating revenue. 
 
EDGE  Enhanced Data rates for GSM Evolution. A technology that gives GSM the capacity to handle data services for the third generation mobile telephony. 
 
EPS   
(Mexican pesos)  Earnings per share. Total earnings in Mexican pesos divided by total shares. 
   
Earnings  
per ADR (US$)  Total earnings in U.S. dollars divided by total ADRs equivalent. 
 
Equity subscribers Subscribers weighted by the economic interest held in each company. 
 
GSM  Global System for Mobile communications. It is the world’s leading and fastest growing mobile standard. 
 
GPRS  General Packet Radio Service. Enables GSM networks to offer higher capacity, Internet-based-content and packet-based data services. It is a second generation technology. 
 
Gross additions  Total number of subscribers acquired during the period. 
 
Licensed pops  Licensed population. Population covered by the licenses that each of the companies manage. 
 
Market share  A company’s subscriber base divided by the total number of subscribers in that country. 
 
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   
subscriber additions  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 / EBITDA  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. 
 
Push-to-talk Enables compatible mobile phones to function like two-way radios. 
 
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

 

1Q15

1Q14

Var.%

Jan - Mar 15

Jan - Mar 14

Var.%

Mexico

 

 

 

 

 

 

EoP

15.15

13.08

15.8%

15.15

13.08

15.8%

Average

14.93

13.24

12.8%

14.93

13.24

12.8%

Brazil

 

 

 

 

 

 

EoP

3.21

2.26

41.8%

3.21

2.26

41.8%

Average

2.86

2.36

21.2%

2.86

2.36

21.2%

Argentina

 

 

 

 

 

 

EoP

8.82

8.00

10.2%

8.82

8.00

10.2%

Average

8.69

7.62

14.1%

8.69

7.62

14.1%

Chile

 

 

 

 

 

 

EoP

627

551

13.7%

627

551

13.7%

Average

624

551

13.2%

624

551

13.2%

Colombia

 

 

 

 

 

 

EoP

2,576

1,965

31.1%

2,576

1,965

31.1%

Average

2,465

2,005

22.9%

2,465

2,005

22.9%

Guatemala

 

 

 

 

 

 

EoP

7.64

7.73

-1.1%

7.64

7.73

-1.1%

Average

7.64

7.78

-1.9%

7.64

7.78

-1.9%

Honduras

 

 

 

 

 

 

EoP

22.06

20.90

5.6%

22.06

20.90

5.6%

Average

21.89

20.82

5.1%

21.89

20.82

5.1%

Nicaragua

 

 

 

 

 

 

EoP

26.92

25.64

5.0%

26.92

25.64

5.0%

Average

26.76

25.48

5.0%

26.76

25.48

5.0%

Costa Rica

 

 

 

 

 

 

EoP

539

554

-2.6%

539

554

-2.6%

Average

542

533

1.6%

542

533

1.6%

Peru

 

 

 

 

 

 

EoP

3.10

2.81

10.3%

3.10

2.81

10.3%

Average

3.06

2.81

8.9%

3.06

2.81

8.9%

Paraguay

 

 

 

 

 

 

EoP

4,799

4,437

8.2%

4,799

4,437

8.2%

Average

4,754

4,526

5.0%

4,754

4,526

5.0%

Uruguay

 

 

 

 

 

 

EoP

25.71

22.67

13.4%

25.71

22.67

13.4%

Average

24.78

22.19

11.7%

24.78

22.19

11.7%

Dominican Republic

 

 

 

 

 

 

EoP

44.76

43.16

3.7%

44.76

43.16

3.7%

Average

44.78

43.18

3.7%

44.78

43.18

3.7%

Austria & CEE

 

 

 

 

 

 

EoP

0.93

0.73

28.3%

0.93

0.73

28.3%

Average

0.89

0.73

21.6%

0.89

0.73

21.6%

 


 
 

 

 

 

1Q15

1Q14

Var.%

Jan - Mar 15

Jan - Mar 14

Var.%

USA

 

 

 

 

 

 

EoP

0.07

0.08

-13.7%

0.07

0.08

-13.7%

Average

0.07

0.08

-11.4%

0.07

0.08

-11.4%

Brazil

 

 

 

 

 

 

EoP

0.21

0.17

22.4%

0.21

0.17

22.4%

Average

0.19

0.18

7.4%

0.19

0.18

7.4%

Argentina

 

 

 

 

 

 

EoP

0.58

0.61

-4.9%

0.58

0.61

-4.9%

Average

0.58

0.58

1.1%

0.58

0.58

1.1%

Chile

 

 

 

 

 

 

EoP

41.3

42.1

-1.9%

41.3

42.1

-1.9%

Average

41.8

41.6

0.3%

41.8

41.6

0.3%

Colombia

 

 

 

 

 

 

EoP

170.0

150.2

13.2%

170.0

150.2

13.2%

Average

165.1

151.5

9.0%

165.1

151.5

9.0%

Guatemala

 

 

 

 

 

 

EoP

0.50

0.59

-14.6%

0.50

0.59

-14.6%

Average

0.51

0.59

-13.0%

0.51

0.59

-13.0%

Honduras

 

 

 

 

 

 

EoP

1.46

1.60

-8.9%

1.46

1.60

-8.9%

Average

1.47

1.57

-6.8%

1.47

1.57

-6.8%

Nicaragua

 

 

 

 

 

 

EoP

1.78

1.96

-9.3%

1.78

1.96

-9.3%

Average

1.79

1.93

-6.9%

1.79

1.93

-6.9%

Costa Rica

 

 

 

 

 

 

EoP

35.57

42.31

-15.9%

35.57

42.31

-15.9%

Average

36.30

40.29

-9.9%

36.30

40.29

-9.9%

Peru

 

 

 

 

 

 

EoP

0.20

0.21

-4.8%

0.20

0.21

-4.8%

Average

0.20

0.21

-3.5%

0.20

0.21

-3.5%

Paraguay

 

 

 

 

 

 

EoP

316.7

339.1

-6.6%

316.7

339.1

-6.6%

Average

318.4

341.9

-6.9%

318.4

341.9

-6.9%

Uruguay

 

 

 

 

 

 

EoP

1.70

1.73

-2.1%

1.70

1.73

-2.1%

Average

1.66

1.68

-1.0%

1.66

1.68

-1.0%

Dominican Republic

 

 

 

 

 

 

EoP

2.95

3.30

-10.5%

2.95

3.30

-10.5%

Average

3.00

3.26

-8.1%

3.00

3.26

-8.1%

 

 

For further information please visit our website at: www.americamovil.com

 

América Móvil, S.A.B. de C.V. (the “Company”) quarterly reports and all other written materials may from time to time contain forward-looking statements that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance, or achievements, and may contain words like “believe”, “anticipate”, “expect”, “envisages”, “will likely result”, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this report. In no event, neither the Company nor any of its subsidiaries, affiliates, directors, officers, agents or employees shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this document or for any consequential, special or similar damages.


SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: April 27, 2015
 
 
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