AMERICA MOVIL SAB DE CV 6-K 2009
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of July, 2009
Commission file number for securities registered
pursuant to Section 12 (b) of the Act: 0-32245
Commission file number for securities registered
pursuant to Section 12 (g) of the Act: 1-16269
AMÉRICA MÓVIL, S.A.B. DE C.V.
(Exact name of registrant as specified in its charter)
(Translation of Registrant´s name into English)
Lago Alberto 366, Colonia Anahuac
11320 Mexico, D.F., Mexico
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F _______
Indicate by check mark if the Registrant is submitting this Form 6-K in paper as
AMÉRICA MÓVILS SECOND QUARTER OF 2009
Mexico City, July 21, 2009 - América Móvil, S.A.B. de C.V. (América Móvil) [BMV: AMX] [NYSE: AMX] [NASDAQ: AMOV] [LATIBEX: XAMXL], announced today its financial and operating results for the second quarter of 2009
América Móvil remains financially strong. We have kept our leverage down at 0.65 times net debt to EBITDA and the average life of our debt is 9.5 years. We have maintained adequate liquidity and a prudent foreign exchange exposure.
The industry has been experiencing a deceleration of subscriber growth; consequently our subscriber acquisition costs have fallen in most countries.
We seek to offer more and better services to our clients. For this purpose we have continued to make heavy investments that will keep us at the forefront of technological change and will allow us to offer our subscribers world-class services and innovative data communication solutions with state-of-the-art technologies.
Our market share in most of our operationssuch as Mexico and Colombiais higher in prepaid than in postpaid since we have greater coverage and cater to all clients, including those in rural areas. As of March 31st, our share of the postpaid market in Mexico was only 47% and we are working to improve it.
We have continued lowering prices and today our average price per minute of voice in Latin America is the lowest in the OECD block with the exception of that of the United States (Merrill Lynch Wireless Matrix 2Q09), which is primarily a postpaid market.
On April 20th at our annual Shareholders Meeting a dividend payment of 30 Mexican cents per share was approved. Such payment is to be made in one installment on July 24th. This represents a 15.4% increase in the dividend per share relative to the one made in 2008. Our shareholders also authorized to increase in $20,000,000,000 (twenty billion Mexican pesos) the outstanding amount of our repurchase program.
América Móvil added 3.7 million subscribers in the second quarter of 2009 bringing the total for the first semester to 7.6 million. We finished the period with 190.3 million wireless clients, 15.1% more than a year before, and 3.8 million land-lines, for a total of 194.1 million lines.
Tracfone, our subsidiary in the U.S., exhibited very good growth in spite of the harsh economic conditions experienced in the country, as the companys net subscriber additions tripled relative to those of a year before. Our operations in Ecuador, Chile, Paraguay, El Salvador and the Caribbean also recorded higher subscriber gains compared to the previous year.
Brazil came in first among our operations in terms of net adds with 899 thousand in the quarter, followed by Tracfone, which at 730 thousand set a record for a second quarter. Mexico added 548 thousand and Argentina 367 thousand subscribers in the period. Ecuador and Peru gained 229 thousand and 217 thousand, respectively. Colombia, on the other hand, added 149 thousand subscribers.
At the end of June, our subscriber base comprised 58.1 million subscribers in Mexico, 40.5 million in Brazil, 27.1 million in Colombia and 16.2 million in Argentina. Brazil grew the fastest amongst these operations at 22.3% year-on-year. Colombia and Argentina expanded at a similar pace (approximately 12%) whereas Mexico was just behind them with a 10% annual increase. The Dominican Republic exhibited the fastest rate of growth: 47.9% year-on-year.
Our South American operations have shown great dynamism; today 55% of our subscribers are located in that region.
América Móvil Consolidated Results
Our second quarter revenues were up 11.2% year-on-year to 94.0 billion pesos. They were driven by service revenues that increased 15.9% annually on the back of strong data- revenue growth in most of our operations. Equipment revenues were down 17.3% from a year before as a result of slower subscriber growth and lower handset prices.
EBITDA totaled 39.3 billion pesos, having risen 13.4% on an annual basis. Our EBITDA margin was up nearly one point from a year before, to 41.8%, helped by our robust top line, our control of costs and the deceleration of subscriber growth and its corresponding impact on subscriber acquisition costs.
With 13.8% growth, operating profits increased slightly more rapidly than EBITDA to reach 28.0 billion pesos. Depreciation and amortization charges were flat relative to revenues, at 12%.
We generated a net financial income of 2.4 billion pesos in the quarter as foreign exchange gains of 4.8 billion pesos stemming mostly from the appreciation of the Mexican peso in the quarter vs. the U.S. dollar more than doubled our overall financial expenses.
** Includes current portion of Long Term Debt
Altogether, we obtained a net profit of 22.5 billion pesos in the quarter, which exceeded by 27.5% that of a year before. It represented 69 peso cents per share and 1.03 dollars per ADR.
Through June our revenues totaled 187.9 billion pesos and our EBITDA 77.7 billion pesos. Both were 13.2% higher than those registered in the first half of 2008. The EBITDA margin for the period, 41.3%, was virtually identical to the one seen a year earlier. Net profits were up 23.6% in the period, to 38.9 billion pesos.
Our net debt stood at 95.5 billion pesos at the end of June, 25.9 billion below its December level. It is equivalent to 0.65 times EBITDA (last twelve months). In the first half our cash flow also allowed us to cover capital expenditures in the amount of 18.6 billion pesos and fund share buy-backs totaling 10.4 billion pesos.
We added 548 thousand subscribers in Mexico during the second quarter and at the end of June had 58.1 million subscribers in the country, almost 10% more than in the year-earlier quarter. Nearly half of our net additions were post-paid subscribers. We have been working in improving our postpaid market share, which as of the end of March was only 47%.
Led by data revenueswhich jumped 45% year-on-year buoyed by 3G data servicesour second quarter revenues totaled 34.9 billion pesos, with service revenues expanding 7.4% to reach nearly 30 billion pesos. Our average price per minute of voice kept on falling, coming down 16.4% to 5 U.S. dollar cents equivalent, the lowest among the OECD countries along with that of the US (Merrill Lynch Wireless Matrix 2Q09). The strong surge in data revenues and the 8.2% annual increase in MOUs explained the firmness of our Mexican ARPUs, which stood at 172 pesos in the quarter.
Our second quarter EBITDA rose 9.3% year-on-year to 19.8 billion pesos, with the margin climbing to 56.9% of revenues from 53.6% a year before propped by the deceleration of subscriber growth and its impact on subscriber acquisition costs, strict cost control policies and the expansion of data revenues.
Through June Telcels revenues totaled 68.4 billion pesos and its EBITDA 38.5 billion. They were up 3.6% and 10.1% respectively from the same period of 2008. The margin for the first half of the year came in at 56.2%, up from 52.9% a year earlier.
Argentina, Paraguay and Uruguay
Our operations in Argentina, Paraguay and Uruguay added 380 thousand subscribers in the quarter, bringing to 857 thousand the total for the first semester. For the eighth consecutive quarter, postpaid subscriber growth exceeded that of prepaid. Our consolidated subscriber base increased by 11.1% year-on year to finish June at 17.4 million.
We generated two billion Argentine pesos in revenues in the second quarter, 14.7% more than the previous year. While equipment revenues were slightly lower, service revenues expanded by 17.9% in the period on the back of a 55.6% surge in data revenues. This region is considered to be the most advanced market in Latam in terms of data usage as more than one third of our service revenues are derived from value-added services. The growth of data services was crucial in helping the company secure a 6.0% annual increase in ARPU.
Wireless penetration in Argentina was estimated to be 118% at the end of June. With subscriber growth decelerating and subscriber acquisition costs becoming less taxing, our EBITDA jumped 24.2% year-on-year to 710 million Argentinean pesos in the quarter. It was equivalent to 35.4% of revenues, 2.7 percentage points higher than a year before.
In the first semester, revenues grew 16.0% annually to nearly reach four billion Argentinean pesos, with service revenues expanding 18.9% . Data revenues were the most dynamic component of service revenues having risen 49.4% in the period. EBITDA was up 22.5% in annual terms to 1.3 billion Argentinean pesos. Our EBITDA margin climbed 1.8 percentage points from a year before, to 33.9% .
Argentina, Uruguay & Paraguay
Our Brazilian operations obtained 899 thousand new subscribers in the second quarter to finish June with 40.5 million clients, 22.3% more than a year before. Our postpaid base continued to grow at a faster pace than the prepaid one. It now represents 20.8% of our total subscribers.
Second quarter revenues of 2.9 billion reais were up 3.5% year-on-year, with service revenues increasing by 11.2% but equipment revenues falling 44.5% . Service revenues were driven by data services, which expanded by 66.3% year-on-year. ARPUs averaged 23 reais in the period; they were flat quarter-over-quarter.
EBITDA totaled 730 million reais, 12.3% more than in the same quarter of 2008. The EBITDA margin, 24.8% of revenues, was 2 percentage points higher than in the year-earlier quarter.
Year-to-date, revenues totaled 5.7 billion reais and EBITDA 1.4 billion reais.
We finished June with 3.2 million clients in Chile, 16.4% more than the previous year, after adding 106 thousand subscribers in the second quarter.
Our revenues totaled 63.4 billion Chilean pesos in the period, 1.9% more than a year before, with service revenues falling slightly even as data revenues swelled 64.9% . The average revenue per minute of voice was down 36.1% over the year and 17.9% sequentially. For the most part, this reduction resulted from a 44% decline in mobile termination rates that took place towards the end of January. Interconnection revenues plummeted pressuring service revenues.
At 1.3 billion Chilean pesos the quarters EBITDA was down from the year-earlier quarter mainly as a result of higher subscriber additionsthree times as many as last yearand the impact of the reduction of mobile termination rates.
In the six months to June we had 130.3 billion Chilean pesos in revenues and 2.8 billion in EBITDA.
Colombia and Panama
We ended June with 27.1 million subscribers after adding 180 thousand clients in the quarter. Our subscriber base is up 12.1% annually. Just over 86% of our subscriber base in Colombia is prepaid, our market share has always been higher in this segment than in postpaid since we have superior coverage to reach to more clients and aggressive commercial promotions made possible by our heavy capital deployments.
With equipment revenues falling over 40% year-on-year total revenues for the quarter remained flat at 1.4 trillion Colombian pesos even though service revenues rose 5.1% annually. Revenues from data were up 33.4% in the period, providing good support to ARPUs. In Colombia, our average price per minute of voice was down 18% year-on-year to 4 dollar cents equivalent, one of the lowest in the world.
Our EBITDA came in at 704 billion Colombian pesos. The consolidation of Panama has created some distortions as the costs associated with the launch of our operations in that country has pushed down somewhat our EBITDA figures, which remained almost unchanged from a year before, with the margin flat at 49.8% of revenues. Absent the incorporation of Panama, a greenfield operation, it would have been 2.3 percentage points higher that that of the same period of 2008.
In the six months to June, revenues amounted to 2.9 trillion Colombian pesos and were 6.8% higher relative to the previous year. They were propped by service revenues that expanded 10.2% . EBITDA totaled almost 1.5 trillion Colombian pesos, the margin stood at 49.2% .
We gained 229 thousand subscribers in the quarter, 16.5% more than a year earlier, whereas the tally for the semester was 538 thousand. At the end of June we had 8.8 million subs, which represented a rate of growth of our base of 19.6% with respect to the previous year.
Second quarter revenues of 277 million dollars were 7.2% higher that those of the same period of 2008 but service revenue growth was nearly twice as high at 14.3% . Prices per minute of voice declined almost 10% year-on-year but with the expansion in traffic not fully compensating for such reduction ARPUs were down 4.5% . Revenues from data services are accelerating; year-on-year they posted an 18.4% increase.
Our EBITDA for the quarter was 133 million dollars, up 12.8% in annual terms. Our EBITDA margin showed an expansion of 2.4 percentage points from the year-earlier quarter to 47.9% of revenues.
In the six months to June we had 559 million dollars in revenues and 267 million in EBITDA. These figures were 12.4% and 19.4% higher than the comparable figures of 2008. The margin scaled 2.8 percentage points to 47.7% .
We added 526 thousand subscribers in the first semester of 2009 of which 217 thousand were obtained in the second quarter. At the end of June, we had 7.7 million subscribers, exceeding by 20.5% those of the previous year. Postpaid growth (29.2%) outpaced that of prepaid.
We registered 552 million soles of revenues, 9.6% more than in the second quarter of 2008 while service revenues rose 13.1% . Data revenues expanded 64.0% year-on-year. We continue to observe steep reductions in the average revenue per minute of voice; as compared to last year prices fell 33.6% .
EBITDA was up 11.5% over the year to 176 million soles. The margin was slightly higher than a year before.
Revenues for the first six months increased to 1.1 billion soles, 12.7% more than in the same period of 2008, while EBITDA totaled 362 million soles. It was equivalent to 32.7% of revenues, having climbed 3.4 percentage points from the year-earlier semester.
Our operations in Central America comprising Guatemala, El Salvador, Nicaragua and Honduras added a total of 99 thousand new subscribers in the quarter, taking the total for the year to 154 thousand. We finished the period with 9.3 million wireless subscribers, 4.9% more than in the same period of last year. In addition to these, we have a total of 2.3 million landlines in the region.
We generated revenues of 330 million dollars in the quarter and 142 million dollars of EBITDA, equivalent to 43.1% of revenues. In the first semester revenues added up to 664 million dollars and EBITDA came in at 288 million. Our margin for the semester stood at 43.3% .
Central America Consolidated
Altogether, our operations in the islands added 825 thousand wireless subscribers in the semester337 thousand in the second quarteralmost twice as many as the net gains of the same period of 2008. Our combined subscriber base ended June with 5.6 million, which represents an annual increase of 43.5% and of 6.4% over the quarter.
Revenues were somewhat higher than those obtained a year before at 535 million for the quarter, as wireless revenues rose 12.7% but fixed-line revenues continued to drift lower. The average price per minute of voice has fallen by nearly 15% over the year while traffic per subscriber has risen 11.1% . ARPU figures show a more pronounced decline, result of the dilution effect of subscriber growth in the prepaid segment.
EBITDA for the quarter was 189 million dollars or 35.3% of revenues. In absolute terms it was down 5.7% year-on-year with the EBITDA margin declining 2.5 percentage points on the costs of subscriber growth.
In the first half of the year we had revenues of 1.1 billion dollars and EBITDA of 354 million.
Tracfones net additions730 thousandmore than tripled those obtained in the second quarter of 2008, bringing the total net subscriber gains through June to 1.3 million. At the end of that month our subscriber base topped 12.5 million and was 23.6% bigger than a year before.
The quarters revenues came in at 400 million dollars surpassing by 7.6% those obtained in the same period of last year, with service revenues growing somewhat faster: 8.8% . We introduced a new brandStraight Talkthat combines the benefits of having large buckets of minutes with the convenience of not getting tied to a contract. Partly because of this, our average revenue per minute of voice declined 36.2% year-on-year and 27.5% sequentially. We saw improvements in MOUs of similar dimensions. Though ARPUs were down annually, so were the costs of airtime.
EBITDA for the period was 79 million dollars 9.4% lower that in 2008 on account of the much greater number of net subscriber additions. The quarters EBITDA margin was 3.7 percentage points lower at 19.8% .
In the six months to June, revenues amounted to 780 million dollars and EBITDA to 154 million dollars. Whereas the former were up 7.2% year-on-year the latter was down 5.9% on the faster pace of subscriber growth.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: July 22, 2009