Latin American-based telecommunications provider America Movil S.A.B. de C.V. (AMX) said it added six million wireless customers during the first quarter of this year, ending the period with 231 million total customers across its numerous wireless operations.
America Movil has wireless operations in Mexico (Telcel), Argentina (Claro), Brazil (Claro), Chile (Claro), Colombia (Comcel), Dominican Republic (Claro), Ecuador (Porta), El Salvador (Claro), Guatemala (Claro), Honduras (Claro), Jamaica (Claro), Nicaragua (Claro), Panama (Claro), Paraguay (Claro), Peru (Claro), Puerto Rico (Claro), Uruguay (Claro), and the United States (Tracfone).
America Movil reported a 6.3% increase in revenues across its operations, surging to $13.5 billion for the quarter. The company’s wireless operations accounted for 63.5%, or nearly $8.6 billion, of those revenues, an increase of 11.1% year-over-year. Of its total revenues America Movil reported that wireless data services accounted for $2.16 billion.
“Mobile data was a major driver of growth, with revenues jumping by two-thirds in Central America and the Caribbean and climbing by approximately 27% in the rest of Latin America,” the company noted.
America Movil’s consolidated net income increased 12% year-over-year to just over $2 billion.
Tracfone
In its Tracfone Wireless Inc. operations, America Movil said the carrier added 780,000 customers, ending the period with 18.5 million subscribers. Tracfone’s operations include prepaid services under its Tracfone and Net10 brand as well as a partnership with Wal-Mart Stores Inc. for its Straight Talk offering.
Minutes of use for Tracfone more than doubled year-over-year from an average of 153 minutes per month to 354 minutes per month, likely bolstered by the unlimited calling offered through Straight Talk. Average revenue per user also surged from $11 in 2010 to $14 this year, again with Straight Talk offering rate plans at the $30 and $45 price points. However, customer churn also increased from 3.5% during the first quarter of 2010 to 4.1% this year.
Tracfone posted just over $75 million in revenues for the quarter.
Tracfone’s branded and Net10 services wholesale services from a number of domestic operators, while the Straight Talk service works across both Verizon Wireless and AT&T Mobility.
Mexico
In it Mexican operations, America Movil said it added 1.5 million net customers, a 38.2% increase compared with the first quarter of 2010. The company noted postpaid customers accounted for 271,000 net subscriber additions, and that it was the receipient of 147,000 net port-ins to the carrier from its rivals. The company ended the quarter with nearly 65.7 million subscribers in the market.
Wireless revenues increased 5% year-over-year to $3.2 billion, with wireless data services posting a 26.4% growth. The company added that its wireless voice revenues was impacted by airtime bonuses sent out to customers in December and January related to interference-related call quality issues in the Mexico City area.
Brazil
In Brazil, America Movil said it added 1.8 million customers, a 52.3% increase compared with the first quarter of 2010 and pushing its total customer base in the country to 53.4 million subscribers. America Movil noted that postpaid net additions more than doubled from the previous year to 687,000 net customer additions, and that postpaid customers accounted for 24.8% of its total base at the end of the quarter. The carrier ended the quarter with 42.5 million prepaid and 10.9 million postpaid customers on its network.
Wireless revenues increased 5.7% year-over-year to nearly $1.9 billion, bolstered by a 27.8% increase in data revenues. However, average revenue per user dropped 10% to $11.30, which the company attributed to a drop in the average price charged per minute and rapid increase in its customer base. Customer churn also increased year-over-year from 2.8% to 3.3%.
Argentina, Paraguay and Uruguay
Across its Argentina, Paraguay and Uruguay operations, America Movil said it ended the first quarter with 19.7 million wireless subscribers, including 17.1 million prepaid customers and 2.6 million postpaid customers. ARPU across the region increased from $8.83 during the first quarter of 2010 to $9.57 this year, helping to boost wireless revenues 17.9% to $631.6 million.
Customer churn across the region increased from 1.9% during the first quarter of 2010 to 2.7% this year.
Colombia and Panama
Across its operations in Colombia and Panama, America Movil reported a doubling in customer growth for the quarter adding 788,000 customers and ending the period with 30.2 million wireless customers. Prepaid customers numbered 25.8 million subscribers at the end of the quarter.
ARPU remained relatively flat year-over-year at $9.30, though wireless data services increased 42.6%. Total wireless revenues increased 8.2% to $933.5 million for the quarter.
