America Movil Capex reaches 100.5 bn pesos in Q3

America Movil CEO Carlos SlimAmerica Movil has announced its third quarterly results with a Capex (capital expenditure) of 100.5 billion pesos, slashing down net debt by 19 billion pesos.

America Movil also posted a small net profit in the quarter compared to the loss it went through in same quarter of 2015, attributed to falling of financial costs and weaker Mexican peso.

The company saw a subscriber addition of one million mobile subscribers in the quarter, leading to a net 283.9 million user base, falling by 0.5 percent.

The net profit amounted to 2.1 billion Mexican pesos, or $113 million, as of 2.9 billion pesos in 3Q15.

Also the America Movil saw revenue of 249.7 billion pesos, with a 12 percent hike.

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Wireless subscribers

America Movil saw a net 284 million wireless subscribers, including 1.2 million prepaid connections acquired from T-Mobile in August.

Also, in an overall addition of 750,000 postpaid clients, 334,000 were from Brazil, 168,000 from Mexico and 141,000 from Colombia.

America Movil witnessed a postpaid subscriber base expansion of 5.7 percent YoY, during this quarter.

ALSO READ: America Movil to cut investment by 25% in 2016

Fixed line subscribers

Subscriptions to fixed-line services rose by 628,000 to turn into a net 82.3 million fixed user base, with a 3.1 percent hike.

The increase was attributed to broadband hiking 8.3 percent with 505,000 new additions.

PayTV gained 22 million units, with a 2.1 percent rise due to operational expansion in Central America, the Caribbean and Europe.

Landline connection base stayed almost dormant at 33.7 million.

Brazil, with a 37 million fixed user base, has the largest fixed line user base seeing 0.6 percent more additions and an expansion of 7.1 percent in broadband.

Mexico ended the quarter with 21.9 million fixed users to sum up to 9 million broadband connections with 3.8 percent hike in additions.

Colombia continued to add to its user base, up by 8.2 percent annually, with 6.2 million subscribers.

Peru and Central observed fastest hike in fixed user base at10.2 percent and 8.7 percent, respectively.

Overall stats

The major contributing factor behind the improved revenue was the renewed dynamism of mobile data revenues, with a growth of 7.7 percent in 3Q16 to 4.1 percent in 3Q16.

Also, fixed-broadband revenue also became 8.8 percent in this quarter, as to the 7.9 percent in the previous year quarter.

PayTV revenue went up by 6.1 percent, while voice revenues, both fixed and mobile, saw a comparatively shallow fall in the third compared to the second quarter.

Also, the Mexican market was affected by stringent regulations and stiff competition.

The major rival was AT&T, which launched its services in the market last year by acquiring Nextel Mexico and Iusacell for about $4.4 billion.

AT&T saw 769,000 subscriber additions in Mexico in the last quarter, with a net 10.7 million user base alongside the 72.7 million of America Movil at a 0.3 percent decrease from Q3 2015.

Telefonica currently has over 26 million wireless subscribers in Mexico.