Pay-TV, mobile revs rising but América Móvil profits dip sharply
DetailsJuan Fernandez Gonzalez | 12 February 2015
América Móvil has seen a strong fall in net profit during last two quarters of 2014 which have led to poor figures for the year. However, its pay-TV and mobile operations are clearly growing across Latin America, and giving optimism to the telco giant.
With over $15,000 million in revenues in Q4 and almost $60,000 million during the whole year, América Móvil's growth has been driven by mobile business (up 14.6%) and pay-TV operations (12.7%). In addition, the Mexican telco has purchased Telekom Austria, which consolidated its jump into the European market and increased its figure of access lines up to 368 million, 8.4% more than a year before.
But when looking at the results published América Móvil they show a big drop in profits in Q4. In the last quarter it saw a profit of $240 million, 77.8% lower than the over $1,000 million profit of a year before. The figures also show a general drop in the year, as the telco finished 2014 with over $3,000 million in profit, 37.3% less than by the end of 2013, when it had over $5,000 million.
Even though it's growing fast, its pay-TV business is still the smallest sector for Carlos Slim's company. While gathering 289.4 million wireless subscribers across the Americas and Europe, América Móvil owns 34.3 million landlines, 22.6 million broadband accesses and has 21.5 million pay-TV subs.
Looking specifically at the pay-TV business, the sector's growth is led by operations in Brazil - the country in which the Claro brand has its largest market - with 10.4% growth, Colombia and Peru, both up by 14% by the end of the quarter, and Central America.