This excerpt taken from the AMX 20-F filed Jun 30, 2006.
CTIs operating revenues increased by 94.8% in 2005. The increase in 2005 was attributable primarily to subscriber growth. In 2005, the number of CTI subscribers increased by 3.0 million subscribers, to approximately 6.6 million subscribers. Average MOUs per subscriber decreased by 11.0% in 2005 compared to 2004, while ARPUs declined by 11.9% during the same period, and we experienced an increase in our churn rate, from 2.0% in 2004 to 2.3% in 2005. The decline in MOUs and ARPUs in 2005 principally reflected subscriber growth. New subscribers generally generate lower average revenues than existing subscribers as a result of traffic subsidies and lower usage. In addition, ARPUs in 2005 were negatively affected by an increase in the share of total traffic represented by data services, such as SMS messaging, which on average generate lower revenues per minute of use than voice services.
CTI reported operating income of Ps. 578 million in 2005, as compared to operating loss in 2004 of Ps. 417 million. This reflected both the increased scale of our business in Argentina and lower acquisition costs per subscriber, principally lower average handset acquisition costs.
This excerpt taken from the AMX 20-F filed Jun 30, 2005.
We began consolidating the results of CTI in November 2003, such that our audited consolidated financial statements do not reflect revenues or operating income from Argentina prior to that date. To measure the operating performance of CTI, we compare its operating revenues and operating income for continuing operations using its full-year 2003 results. On that basis, CTIs operating revenues from continuing operations increased by 96.2% in 2004. The increase in 2004 was attributable primarily to subscriber growth. In 2004, the number of CTI subscribers increased by 2.2 million subscribers, to approximately 3.6 million subscribers. Average monthly MOUs per subscriber increased by 13.2% in 2004 compared to 2003, while ARPUs declined by 11.5% during the same period, and we experienced an increase in our churn rate, from 1.5% in 2003 to 2.0% in 2004. The decline in ARPUs in 2004 principally reflects subscriber growth. New subscribers generally generate lower average revenues than existing subscribers as a result of traffic subsidies and lower usage.
CTI reported an operating loss of Ps. 403 million in 2004, as compared to operating income in 2003 of Ps. 712 million. The operating loss in 2004 resulted principally from higher subscriber acquisition costs.
This excerpt taken from the AMX 6-K filed Apr 28, 2005.
In the first quarter, our Argentinean subsidiary, operating under the CTI Móvil brand, gained 503 thousand net subscribers, bringing its subscriber base to 4.1 million.
Its revenues in the quarter, 573 million Argentine pesos, rose 10% sequentially and were 2.5 times higher than those of the first quarter of 2004. Quarter-over-quarter, service revenues were up 16.5%, reflecting the strength of past and current subscriber growth.
The number of net additions for the quarter was roughly 2.5 times the one registered in the first quarter of 2004. In spite of the impact that this subscriber growth had on subscriber acquisition costs, EBITDA still increased by 77%, to reach 70 million pesos; it was equivalent to 12.2% of revenues.
CTI registered an operating profit of 48 million pesos, which was more than twice as large the one seen the year before.
This excerpt taken from the AMX 6-K filed Jan 31, 2005.
Millions of ARP$
Our Brazilian operationunder the brand name Claroregistered its best quarter to date in terms of subscriber growth with 1.7 million net subscribers, which brought the total number of net additions in 2004 to 4.1 million. This represented a 43.4% annual increase of the subscriber base.
Revenues totaled 5.2 billion reais (1.9 billion dollars) in the year, of which 1.7 billion were generated in the last quarter. Relative to 2003, they increased by 76% for the full year and by 68% for the fourth quarter. These rates of increase reflect the rate of growth of the client base, but also the incorporation to Claro of BSE, in the Northeast of Brazil, and BCP, in the metropolitan area of Sao Paulo, in May and December of 2003.
EBITDA for the year was 18 million reais, or 0.3% of revenues. The acceleration of subscriber growth in Brazil led to a 2.3 times increase in the consolidated level of gross subscriber additions in relation to 2003. And this translated into an important increase in overall subscriber acquisition costs that ended up reducing Claros EBITDA.
The strong seasonality of subscriber growth in Brazilthe fourth quarter typically generates between one third and 40% of the net subscriber additions of the yearusually leads to a reduction in EBITDA margins in the fourth quarter, and 2004 was no exception. If anything, this seasonality was even more marked that year, with net additions in the fourth quarter representing 41.5% of the years total. This resulted in an EBITDA loss of 192 million reais (69 million dollars) in the last quarter, which was equivalent to 11.6% of revenues.
In spite of the surge in subscriber growth in the fourth quarter, MOUs actually rose by 2.5% sequentially and ARPUs remained flat at 28 reais (16.5 dollars).