October 23, 2009 / 5:06 PM / 8 years ago

America Movil seen posting strong quarterly figures

 * America Movil net seen up 53 pct
 * 4.64 million net new additions expected
 * Company to report Monday after market close
 MEXICO CITY, Oct 23 (Reuters) - Latin American cellphone
operator America Movil is expected to post stronger sales and
profits in the third quarter when it reports on Monday thanks
to a pickup in new subscribers following the economic slump.
 America Movil AMXL.MXAMX.N, controlled by billionaire
Carlos Slim, probably had net profit of 19.015 billion pesos
($1.41 billion) in the July-September period, up 53 percent
from the year-ago period, according to the average estimate of
12 analysts consulted by Reuters. Sales are expected to rise 15
percent in the quarter compared with the year-ago period.
 As Latin America emerges from a deep downturn, America
Movil likely signed up 4.64 million new clients in the third
quarter, up from 3.7 million in the second quarter when the
economic slump was at its worst, but still less than in the
year-ago period.
 Net additions will probably be driven by Brazil and
Colombia rather than Mexico, which has been hit harder by the
U.S. recession, said BBVA analyst Andres Coello.
 Growth in earnings before interest, tax, depreciation and
amortization will be helped by the weakness of Mexico's peso
MEX01 MXN= against Brazil's currency during the quarter,
analysts said.
 Clients in Brazil account for about 20 percent of America
Movil's market across North America and South America, with
Mexico accounting for 30 percent.
 Santander analyst Gregorio Tomassi said a key indicator to
watch for will be growth in revenues from data services as
America Movil, Latin America's leading cellphone operator,
pushes clients to use more Internet and text messages.
 Latin Americans in well-heeled neighborhoods such as Sao
Paulo's Jardins and Mexico City's Polanco are increasingly
surfing the Internet on Research in Motion Ltd's RIM.TO
BlackBerries and Apple Inc's AAPL.O iPhones. But most people
in the region continue to use much less expensive handsets on
pay-as-you-go plans.
 America Movil and rival Telefonica SA TEF.MC have both
introduced prepaid plans for Internet access, charging about
$32 for a month of broadband access in Mexico from a mobile
phone or laptop computer.
 America Movil has operations in 17 countries across Latin
America and the Caribbean.
===============================================================                        2009            2008        Percent  
                  JUL-SEP        JUL-SEP        Chg
(in pesos)
Revenues           97.725 bln        85.335 bln    +14.52 pct
EBITDA             39.848 bln        34.865 bln    +14.29 pct
Operating Profit   28.461 bln        24.708 bln    +15.19 pct
Net Profit         19.015 bln        12.404 bln    +53.29 pct
Net Adds             4.64 mln          7.30 mln    -36.49 pct
  ($1 = 13.5035 pesos at end of September)
  (Reporting by Noel Randewich; editing by Andre Grenon)

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