Latin America’s largest telecom group (measured by subscribers), América Móvil, posted an increase of 37.5% in net profit for the first quarter 2012, beating analysts’ forecasts largely due to the company’s acquisition of the Brazilian cable television company, Net Servicos.
Net income climbed to US$ 2.5 billion and revenue grew by 12.4% to $14.7 billion (192.498 billion pesos). Fixed-line revenues grew by 7.1% and wireless revenues grew by 15.8%, the latter accounting for 62.5% of the company’s total revenues. Read full financial and operating results report here.
The company, controlled by Mexican billionaire Carlos Slim, finished March with 306 million accesses, 7.7% more than in the first quarter of 2011, after adding 4.2 million wireless subscribers and 1.9 million RGUs in the first quarter. This figure comprises 246 million wireless subscribers, 30 million landlines, 16 million broadband accesses, and 14 million pay-TV clients.
Brazil has become América Móvil’s largest fixed-line operation, by accesses, with 25.2 million RGUs. In the wireless sphere, Brazil added 1.2 million new subscribers in the period and Mexico added 1.1 million. Central America and the Caribbean obtained 529 thousand net adds and Peru and the U.S. added around 360 thousand clients each.
Embratel exercised a call option by which it acquired the control of Net Serviços, the Brazilian cable company. On April 5, Embratel announced that it will launch a tender offer for the shares it does not currently own and, if the results of the tender offer allow it, will delist the stock. Embratel currently owns 92.2% of Net Serviços.
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