America Movil S.A.B. de C.V. AMX reported third-quarter 2015 loss per ADR (American Depository Receipt) of 5 cents. In contrast, the Zacks Consensus Estimate of earnings was 24 cents per ADR. The last time the company reported a loss was in the fourth quarter of 2001.
The company’s results have been hurt by the adverse foreign exchange rate movement in several Latin American countries. During the third quarter, Mexican Peso, Brazilian Real and Colombian Peso dropped a respective 7%, 21% and 18% sequentially with respect to the U.S. dollar.
Meanwhile, total revenue of approximately $13,640 million in the reported quarter rose 1.2% year over year. The top line also steered ahead of the Zacks Consensus Estimate of $13,538 million. Segment-wise, Services revenues were around $11,933 million, down 1% year over year. Equipment revenues totaled $1,640 million, up 21.4% year over year on growing demand for smartphones and tablets.
Total costs and expenses in the third quarter increased 5.9% year over year to $9,522 million. Quarterly EBITDA declined 8.2% year over year to $4,051 million. EBITDA margin stood at 29.8% compared with 32.9% in the year-ago quarter.
Liquidity
At the end of third quarter of 2015, America Movil had around $7,583 million of cash and marketable securities compared with $4,430 million at the end of 2014. Long-term debt at the end of the said quarter was around $42,176 million against $35,650 million at the end of 2014.
Subscriber Statistics
America Movil's total subscriber count stood at 368.2 million at the end of Sep 30, 2015, up 1% year over year. This figure includes 288.4 million wireless subscribers, 34.9 million landlines subscribers, 23.4 million broadband accesses and 21.6 million pay-TV units.
Results by Prime Regional Segments
Quarterly revenues from Mexico, America Movil's home ground, declined 0.7% year over year to $4,136 million. On the other hand, EBITDA fell 9.5% to $1,666 million. Mexican ARPU (average revenue per user) decreased 8.6% year over year to $9.23 while the churn rate stood at 3.9%, in comparison with 4.2% in the third quarter of 2014.
Revenues from Brazilian operations climbed 1.3% year over year to $2,584 million. EBITDA increased 12.4% to $702 million. Meanwhile, Brazilian ARPU declined 14.6% year over year to $3.7 while churn rate stood at 3.5% compared with 3.3% in the year-ago quarter.
America Movil's U.S. operation (Tracfone) revenues declined 0.2% year over year, taking the number to $1,722 million. EBITDA decreased 33.1% to $105 million. ARPU came in at $20, flat year over year, while churn rate rose by 10 basis points to 4.1%.
Stocks to Consider
America Movil currently carries a Zacks Rank #4 (Sell). Better-ranked stocks in this sector include Nippon Telegraph and Telephone Corp. NTT, NTT DOCOMO Inc. DCM, and SK Telecom Co. Ltd. SKM. All these stocks sport a Zacks Rank #1 (Strong Buy).
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