America Movil to cut investment by 25% in 2016

America Movil KPN deal
America Movil said its investment towards Capex program in 2016 will decrease by 20 to 25 percent against Capex of MXN164 billion or $8.57 billion in 2015.

America Movil has invested $33 billion in total towards Capex (capital expenditure) in 2013, 2014 and 2015. In the last two to three years, America Movil invested in the backbone in the links and in the fiber.

“We move from 2G to 3G and from 3G to 4G by making big investments and I think this year we can reduce the Capex. It’s around 25 percent of what we do last year,” said Daniel Hajj, chief executive officer of America Movil.

The net debt of America Movil was MXN585 billion in 2015 as compared to MXN537 billion a year earlier.

The Latin American telecom major said that its revenue rose 0.6 percent to 231 billion pesos in Q4 2015. Service revenues of America Movil fell 0.6 percent. Wireless data revenues grew 10.3 percent, fixed data 7.9 percent and PayTV revenues 6.6 percent.

Thanks to its investment plan, America Movil generated 32.5 percent revenue from wireless voice, 31.7 percent from wireless data, 13.7 percent from wireline voice, 13.7 percent from wireline data and 8.7 percent from Pay TV in Q4 2015.

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