América Móvil increases profitability, cash flow and revenues in Mexico in 4Q19
América Móvil's profitability, average revenue per user (ARPU), EBITDA and revenues from its Mexican operations increased during the fourth quarter of 2019, according to the financial report submitted to the Mexican Stock Exchange (BMV).
Globally, the company's net income increased by more than 60%.
The company controlled by Carlos Slim detailed that the operating flow (EBITDA) of its main market reached $30,149 billion pesos under IFRS 16 which, under comparable accounting standards, represents an increase of 12.7% over the previous year.
However, when adjusted for extraordinary items it grew 5.9% due to the strength of service revenue growth in both fixed and mobile platforms, which was reflected in an EBITDA margin, i.e. profitability, of 1.9 percentage points.
Meanwhile, ARPU continued to show growth, reaching 154 pesos, an annual increase of 5.8%, a rise driven by the constant advances in the use of data services per customer.
América Móvil explained that it has been expanding mobile coverage to reach smaller towns and rural areas, while on the fixed platform, "we have also been more active in building fiber to the home" by upgrading its network to offer higher speeds.
The company increased by 6.4% revenue in Mexico to $81.71 billion pesos, while mobile customers reached 76'918,000, an increase of almost 2%.
Although fixed-line service revenues increased 0.8% after several quarters of declines, mainly due to growth in broadband revenues and corporate networks, fixed lines fell 3.3%.
On January 27th, Teléfonos del Noroeste (Telnor) was notified of a resolution issued by the IFT, imposing a fine of 1,311.8 million pesos derived from a sanctioning procedure initiated for the alleged non-compliance with the availability of information of certain passive infrastructure.
Global net income 'turns on' more than 60%
América Móvil's global operating income reached 44.6 billion pesos, while the integral cost of financing was 8 billion pesos.
This resulted in a net income of 21.2 billion pesos in the quarter from October to December of last year, 63.4% more than in the same period of the previous year.
In the detail of consolidated results, América Móvil referred to the stabilization of long-term interest rates in the fourth quarter, after a sharp drop that started in February 2019 and with the stock market reaching historic highs.
The above, supported by the sustained economic inertia and the mentioned fall in interest rates, for the year ended with a better economic environment in the United States.
AMÉRICA MÓVIL SIGNS PARTNERSHIP WITH GOOGLE
América Móvil will offer the G Suite service in Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Peru, Puerto Rico, the Dominican Republic, Uruguay, and the United States.
América Móvil and Google Cloud announced a business alliance that will allow Telmex, Telcel and Claro customers in 16 countries in Latin America and the United States to access G Suite, a platform that offers a set of smart applications such as Gmail, Docs, Drive, Calendar and Hangouts, among others.
Through its subsidiaries, América Móvil will offer the G Suite service with a monthly charge to its invoice, in local currency and with flexible plans according to the needs of each company or business. It will also provide its users with personalized attention and technical support in their own language, 24 hours of the day.
The solutions that América Móvil will offer will facilitate communication among its customers, through the use of tools such as Gmail, Google Calendar, Hangouts Chat for messages and Hangouts Meet for video calls, allowing people to be connected in real time.
In addition, storage and search solutions will be provided through Google Drive and Google Cloud Search, as well as tools that facilitate work such as Google Docs, Sheets and Slides, which allow the generation of documents, spreadsheets or presentations. Additionally, users can use Google Forms to create surveys or forms, Google App Maker to organize and get applications quickly in the cloud, and Google Keep to keep orderly and create notes or reminders.
"The partnership with Google Cloud is part of the continuous innovation that América Móvil offers to all its clients to achieve their goals. In the case of companies and businesses, G Suite provides applications that will help them be more productive, reduce costs And in this way, in a world characterized by its constant evolution, we respond in a more efficient and timely manner to the needs of all our users," said Oscar Von Hauske, Director of Fixed Operations at América Móvil.
"More than 5 million companies worldwide have found in Google Docs, Sheets, Slides, Drive or Keep accessible technology solutions for their teams to save time, improve their capabilities and increase their efficiency." With the support of América Mobile, we hope that more companies in Latin America take advantage of G Suite tools to improve the management of their business, increase productivity and promote greater collaboration among their teams," said João Bolonha, Director of Google Cloud in Latin America.
América Móvil will have G Suite services available in Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Peru, Puerto Rico, the Dominican Republic, Uruguay and the United States. This offer will be available in local currency.
Google Cloud is widely recognized as a global leader in the delivery of a secure, open and intelligent enterprise cloud platform. Our technology is built on Google's private network and is a product with about 20 years of innovation in network architecture security, collaboration, artificial intelligence, and open-source software.
América Móvil is the leading company in integrated telecommunications services in Latin America. The deployment of its world-class communications platform allows it to offer its clients a portfolio of value-added services and improved communication solutions in 25 countries in the Americas and Europe.
As of March 31, 2019, the company had 362 million access lines, including 277.4 million mobile subscribers and 84.4 million fixed income generating units (fixed telephony, broadband and pay television).