America Movil posted a net loss in the third quarter of the year on the back of currency effects across its operations, and used its results announcement to reiterate calls for a pay TV licence and an end to asymmetric regulation.
The Mexican incumbent’s net loss for the three months to the end of September came in at 2.9 billion pesos (€154 million, at the current exchange rate), compared with a net profit of MXN12.6 billion in Q3 2014.
The telco was particularly hard hit by exchange rates in its home market and second-largest operation Brazil, where the peso and the real were worth an average of 7.1% and 15.2% less against the U.S. dollar than they had been a year earlier. As a result, it posted financing costs of MXN38.9 billion (€2.1 billion) for the quarter, almost quadruple the year-ago figure.
America Movil reported a foreign exchange loss of MXN45.1 billion.
"The foreign exchange losses incurred have not had an impact on cash flows," it insisted in its quarterly report.
EBITDA fell by 8.2% to MXN66.7 billion, partly due to the depreciation of the real and the Colombian peso against the Mexican peso, as well as extraordinary items elsewhere.
The company’s top line rose by 1.2% to MXN223.6 billion (€11.9 billion).
America Movil generated just over 30% of its revenue in Mexico in Q3. Service revenues in Mexico fell by 5.7% compared with the year-ago quarter, but the rate of decline was slower than in in the previous quarter.
"The acceleration of mobile data revenues was key in the stabilisation of Mexico’s service revenues and is being driven by an increase in smartphone penetration," the telco said.
It serves 73 million mobile customers in Mexico, having added 361,000 over the three-month period. Fixed-line revenue-generating units increased by 103,000 to 21.7 million.
The company reiterated some of its concerns about competition in the Mexican telecoms market, in the wake of regulatory changes and the growing presence of major international telcos.
"[There are] two major international players – AT&T, the largest in the world, and Telefónica, the largest in Iberoamérica – drumming up their investment efforts and presence in the market," generating more intense and effective competition, it said.
"On this account America Movil should not be in a position to subsidise our competitors by way of asymmetric interconnection rates and other regulatory asymmetries," the telco insisted. "In addition it is of the essence that [America Movil] be granted the concession to offer pay TV services to continue to increase competitiveness in the market."
America Movil’s European operations were also affected by exchange rate fluctuations.
Telekom Austria contributed €1.04 billion to its parent company’s turnover, down by 6.1% on the previous year; at a constant exchange rate its top line fell by 0.2%.
"The decline in revenues is linked, for the most part, to stronger competition in Bulgaria and termination rate cuts in Croatia," America Movil said. "On the other hand, in Austria, revenues increased 1.6% relative to last year’s quarter mostly on account of higher equipment sales."
Telekom Austria reported its own figures separately on Tuesday. They differ somewhat from the numbers provided by America Movil, but the pattern is ostensibly the same.
