6-K 1 d80697d6k.htm FORM 6-K Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF A FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of October 2020

Commission File Number: 1-16269

 

 

AMÉRICA MÓVIL, S.A.B. DE C.V.

(Exact Name of the Registrant as Specified in the Charter)

 

 

America Mobile

(Translation of Registrant’s Name into English)

 

 

Lago Zurich 245

Plaza Carso / Edificio Telcel, Piso 16

Colonia Ampliación Granada, Miguel Hidalgo

11529 Mexico City, Mexico

(Address of Principal Executive Office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


América Móvil’s third quarter of

2020 financial and operating report

 

 

Mexico City, October 20th, 2020 - América Móvil, S.A.B. de C.V. (“América Móvil”) [BMV: AMX] [NYSE: AMX, AMOV], announced today its financial and operating results for the third quarter of 2020.

 

 

As confinement measures began to be lifted our commercial activity saw a rebound in most countries in our region of operations.

 

 

Postpaid net additions totaled 1.8 million wireless subscribers, the majority coming from Brazil, Austria and Colombia. In the prepaid segment, we gained 1.4 million clients including 1.2 million in Mexico, approximately 300 thousand in each of Colombia and Ecuador, and 237 thousand in Peru.

 

 

Fixed-broadband remains the main driver on the fixed-line platform; we connected 446 thousand new broadband accesses, including 122 thousand in Colombia, 117 thousand in Mexico, 70 thousand in Peru and 62 thousand in Brazil.

 

 

Third quarter revenues of 260 billion pesos rose 4.7% year-on-year in Mexican peso terms as service revenues expanded 5.4%. At constant exchange rates, service revenues increased 1.5%. from 0.8% in the prior quarter with those on the mobile platform accelerating to 3.5% from 2.3% in the prior quarter.

 

 

Mobile service revenues were lifted by prepaid revenues which rose 2.5% after declining 2.0% the prior quarter.

 

 

EBITDA of 86.5 billion pesos was up 10.1% in Mexican peso terms. At constant exchange rates EBITDA increased 7.2%, more than twice as in the prior quarter.

 

 

Our operating profit jumped 18.4% to 45.1 billion pesos and helped bring about an increase of 45% in our net income of 18.9 billion pesos in the third quarter, even after financing costs of 22.4 billion pesos that were up 82% year-on-year.

 

 

Our cash flow covered our capital expenditures of 91.0 billion pesos and allowed us to significantly reduce our liabilities, directing 47.0 billion pesos to the reduction of our net debt and 15 billion pesos to pension obligations.

 

 

At the end of September our net debt stood at 726 billion pesos, up from 677 billion pesos relative to December on account of the depreciation of the Mexican peso vs. the U.S. dollar and the euro. It stood at 1.88 times EBITDA under IAS 17.

 

 

 

 

 

 

 

We will host our conference call to discuss 3Q20 financial and operating results on October 21st at 9:00am Mexico City time. To access the call please log on to www.americamovil.com/investors


América Móvil Fundamentals

 

 
     3Q20                                                   3Q19  

 

 

Earnings per Share (Mex$)(1)

     0.28        0.20  

 

 

Earning per ADR (US$)(2)

     0.26        0.20  

 

 

EBITDA per Share (Mex$)(3)

     1.30        1.19  

 

 

EBITDA per ADR (US$)

     1.18        1.22  

 

 

Net Income (millions of Mex$)

     18,861        13,043  

 

 

Average Shares Outstanding (billion)

     66.37        66.01  

 

 

(1)Net Income / Average Shares Outstanding

(2)20 shares per ADR

(3)EBITDA/ Average Shares Outstanding

América Móvil’s Subsidiaries as of September 2020    

 

 
Country    Brand    Business   

Equity

Participation

 

 

 

Mexico

  

Telcel

  

wireless

     100.00%  

 

 
  

Telmex

  

wireline

     98.80%  

 

 
  

Sección Amarilla

  

other

     100.00%  

 

 
  

Telvista

  

other

     90.00%  

 

 

Argentina

  

Claro

  

wireless

     100.00%  

 

 
  

Telmex

  

wireline

     100.00%  

 

 

Brazil

  

Claro

  

wireless/wireline

     98.50%  

 

 

Chile

  

Claro

  

wireless

     100.00%  

 

 
  

Telmex

  

wireline

     100.00%  

 

 

Colombia

  

Claro

  

wireless/wireline

     99.40%  

 

 

Costa Rica

  

Claro

  

wireless

     100.00%  

 

 

Dominicana

  

Claro

  

wireless/wireline

     100.00%  

 

 

Ecuador

  

Claro

  

wireless/wireline

     100.00%  

 

 

El Salvador

  

Claro

  

wireless/wireline

     95.80%  

 

 

Guatemala

  

Claro

  

wireless/wireline

     99.30%  

 

 

Honduras

  

Claro

  

wireless/wireline

     100.00%  

 

 

Nicaragua

  

Claro

  

wireless/wireline

     99.60%  

 

 

Panama

  

Claro

  

wireless/wireline

     100.00%  

 

 

Paraguay

  

Claro

  

wireless/wireline

     100.00%  

 

 

Peru

  

Claro

  

wireless/wireline

     100.00%  

 

 

Puerto Rico

  

Claro

  

wireless/wireline

     100.00%  

 

 

Uruguay

  

Claro

  

wireless/wireline

     100.00%  

 

 

USA

  

Tracfone

  

wireless

     100.00%  

 

 

Netherlands

  

KPN

  

wireless/wireline

     17.90%  

 

 

Austria

  

Telekom Austria

  

wireless/wireline

     51.00%  

 

 

The reported figures for Argentina corresponding to the third quarter of 2020 are presented in accordance with a) IAS29 reflecting the effects of the adoption of inflationary accounting that became mandatory after the Argentinean economy was deemed to be hyperinflationary in the third quarter of 2018 and b) IAS21 translated to Mexican pesos using the end-of-period exchange rate.

All comparisons at constant exchange rates for América Móvil’s consolidated figures will exclude Argentina to ensure consistency.


Relevant Events

 

 

On September 14th, 2020 we announced that we entered into an agreement with Verizon Communications Inc. to sell our 100% interest in TracFone Wireless, Inc., the largest mobile virtual prepaid service operator in the United States, serving 21 million subscribers. The agreed purchase price payment at the closing is US$6,250 million, of which one-half will be in cash and the other in Verizon stock. In addition, following the closing, Verizon shall pay to AMX: (i) up to US$500 million as an earn-out if Tracfone continues to achieve certain performance measures during the 24 months following the closing, calculated and paid in 4 consecutive 6-month periods, and (ii) US$150 million deferred commercial consideration payable within two years following the closing. AMX will continue to benefit from EBITDA generated by Tracfone during fiscal year 2020 and until the closing date of the transaction. The closing of the transaction is subject to customary conditions for this type of transactions, including obtaining required governmental approvals. Parties expect the closing to occur during 2021.

On September 3rd we terminated the agreement to purchase 99.3% of Telefónica Móviles El Salvador, S.A. de C.V. The decision comes after careful consideration by both parties of the conditions established by the Superintendencia de Competencia for approval of the transaction.

On July 27th we informed that our Brazilian subsidiary, Claro S.A. (“Claro”), agreed to extend a binding offer submitted jointly with Telefónica Brasil S.A. and TIM S.A for the acquisition of the mobile business owned by Oi Group, in the amount of R$16,500 million. The offer was submitted by the parties, and is subject to certain conditions, including their right to make a higher bid than any other offer potentially presented by a third party (“right to top”) in the competitive process of Oi Group’s mobile business sale. Claro believes that the joint offer with TIM and Telefónica is the one that best serves the interests of current customers of Oi, as it provides long-term experience in the Brazilian market, investment capacity and technical innovation to the sector as a whole and it is in line with current regulation.

In August we established a Euro Commercial Paper Program in the amount of 2.0 billion euros under which we expect to issue regularly securities with maturities of up to 360 days.

Access Lines

 

 

As confinement measures began to be lifted throughout our region of operations towards the end of the second quarter, an improving trend became apparent on commercial activity.

We ended September with 281 million wireless subscribers, after net additions of 3.2 million. This figure comprises 1.8 million postpaid net gains and 1.4 million prepaid net gains. Our postpaid base was up 5.7% organically. Brazil led the way in terms of postpaid growth after adding 1.8 million subscribers followed by Austria with 241 thousand and Colombia with 142 thousand. The prepaid base ended the quarter with 186 million subscribers, after adding 1.2 million in Mexico, approximately 300 thousand in each of Colombia and Ecuador, and 237 thousand in Peru.

On the fixed-line segment we gained 446 thousand new broadband clients with every operation posting an increase in accesses, except for Austria and Croatia. However, in the PayTV segment we registered disconnections of 243 thousand in the quarter and in fixed-line voice the number of lines came down by 242 thousand.

We ended September with a total of 362 million access lines, which includes 281 million wireless subscribers and 81 million fixed-line RGUs.


Wireless Subscribers as of September 2020         

     Total(1) (Thousands)  

 

 
Country    Sep ’20      Jun ’20      Var.%      Sep ’19      Var.%    

 

 

Argentina, Paraguay and Uruguay

     23,996        24,259        -1.1%        24,536        -2.2%    

 

 

Austria & CEE

     21,609        21,208        1.9%        21,520        0.4%    

 

 

Brazil

     60,005        58,520        2.5%        56,451        6.3%    

 

 

Central America

     14,533        14,541        -0.1%        15,290        -4.9%    

 

 

Caribbean

     6,237        6,087        2.5%        6,139        1.6%    

 

 

Chile

     6,505        6,793        -4.2%        6,779        -4.0%    

 

 

Colombia

     32,024        31,535        1.6%        30,577        4.7%    

 

 

Ecuador

     7,822        7,878        -0.7%        8,422        -7.1%    

 

 

Mexico

     76,563        75,378        1.6%        76,150        0.5%    

 

 

Peru

     10,552        10,387        1.6%        11,623        -9.2%    

 

 

USA

     20,876        20,918        -0.2%        21,229        -1.7%    

 

 

Total Wireless Lines

     280,722        277,503        1.2%        278,716        0.7%    

 

 

(1)Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated.

Fixed-Line and Other Accesses (RGUs) as of September 2020

     Total(1) Thousands  

 

 
Country    Sep ’20      Jun ’20      Var.%      Sep ’19      Var.%    

 

 

Argentina, Paraguay and Uruguay

     1,385        1,278        8.4%        1,023        35.3%    

 

 

Austria & CEE

     6,066        6,105        -0.6%        6,135        -1.1%    

 

 

Brazil

     32,952        33,260        -0.9%        34,448        -4.3%    

 

 

Central America

     4,227        4,379        -3.5%        4,385        -3.6%    

 

 

Caribbean

     2,532        2,509        0.9%        2,537        -0.2%    

 

 

Chile

     1,391        1,401        -0.7%        1,418        -1.9%    

 

 

Colombia

     8,155        7,938        2.7%        7,555        7.9%    

 

 

Ecuador

     446        454        -1.8%        431        3.5%    

 

 

Mexico

     22,011        21,961        0.2%        22,158        -0.7%    

 

 

Peru

     1,787        1,707        4.7%        1,578        13.3%    

 

 

Total RGUs

       80,953          80,993          0.0%          81,669        -0.9%    

 

 

(1)Fixed Line, Broadband and Television (Cable & DTH). Central America figures have been adjusted in accordance with the methodolgy used for all AMX operations.


América Móvil Consolidated Results

 

 

Following the massive monetary and fiscal stimulus introduced throughout the world since the advent of the pandemic, the third quarter saw a rebound in economic activity in most countries in our region of operation and little of the volatility that was present in the prior two quarters. With the exception of the Brazilian real, which continued to deteriorate vs. the U.S. dollar, the main currencies in Latin America did not see much change over the period.

Our third quarter revenues rose 4.7% in Mexican peso terms from a year before to reach 260 billion pesos, as service revenues expanded 5.4%. At constant exchange rates service revenues were up 1.5%—roughly twice as fast as in the preceding quarter—on the back of continued strong performance of fixed-broadband revenues and the recovery of mobile prepaid revenues, those most affected in the prior quarter in the midst of the lockdown measures implemented throughout Latin America. The difference between the growth rate in peso terms and that at constant exchange rates has to do with the Mexican peso having depreciated against practically all other operating currencies except the Brazilian real and the Argentinean peso in the period: revenues in other currencies increased faster in peso terms.

Mobile service revenues accelerated to 3.5% from 2.3% in the second quarter buoyed by prepaid revenues—they rose to +2.5% from -2.0%—while fixed-line service revenues maintained a 1.4% pace of decline as the gains observed in fixed-broadband revenues—from a pace of +7.3% to one of +9.1%—were equaled by new revenue losses in fixed-line voice and PayTV revenues. The rhythm of decline of the latter, -9.2%, equaled the pace of growth of fixed-broadband revenues.

Colombia was the only country where service revenues expanded on both the mobile and the fixed-line platform in the third quarter—almost at the same pace in each one. The strongest growth on that platform was in those countries that have more recently initiated their fixed-line operations—Peru, Ecuador, Argentina, Costa Rica—while Dominicana, Brazil and Puerto Rico all had, together with Colombia, very strong showings on the mobile platform.

Across our operations, voice MOUs rose 11.7% while mobile data per user was up 41.2%, all of which resulted in a 5.0% increase in mobile ARPUs at constant exchange rates. Prepaid ARPUs shot up to an 8.0% year-on-year increase from 0% the preceding quarter while postpaid ARPUs decelerated sharply their rate of decline, from -6.4% in the second quarter to -1.4% in the third.

EBITDA was up 10.1% in the third quarter from the year-earlier quarter to 86.5 billion pesos as the EBITDA margin remained at 33.2%. At constant exchange rates EBITDA increased 7.2%, more than twice as fast as it had in the preceding quarter, with Puerto Rico, Mexico and Dominicana posting important advances. Puerto Rico’s EBITDA growth went from 10% to 38%; Mexico’s improved from -10.3% to +1.3% whereas Dominicana’s increased from -5.5% to +5.8%.


América Móvil’s Income Statement Millions of Mexican pesos

 

     3Q20      3Q19      Var.%      Jan-Sep 20      Jan-Sep 19      Var.%  

 

 

Service Revenues

     216,113        205,038        5.4%        645,083        617,637        4.4%  

 

 

Equipment Revenues

     42,636        41,968        1.6%        112,814        122,003        -7.5%  

 

 

Total Revenues*

     260,172        248,475        4.7%        761,857        744,207        2.4%  

 

 

Cost of Service

     76,755        74,009        3.7%        229,528        223,091        2.9%  

 

 

Cost of Equipment

     43,779        42,451        3.1%        119,507        123,574        -3.3%  

 

 

Selling, General & Administrative Expenses

     52,088        52,166        -0.1%        162,796        161,648        0.7%  

 

 

Others

     1,091        1,341        -18.7%        3,289        3,939        -16.5%  

 

 

Total Costs and Expenses

     173,712        169,966        2.2%        515,120        512,252        0.6%  

 

 

EBITDA

     86,460        78,509        10.1%        246,737        231,955        6.4%  

 

 

% of Total Revenues

     33.2%        31.6%           32.4%        31.2%     

 

 

Depreciation & Amortization

     41,394        40,454        2.3%        121,811        121,409        0.3%  

 

 

EBIT

     45,066        38,055        18.4%        124,926        110,546        13.0%  

 

 

% of Total Revenues

     17.3%        15.3%           16.4%        14.9%     

 

 

Net Interest Expense

     8,298        8,406        -1.3%        26,650        26,330        1.2%  

 

 

Other Financial Expenses

     6,572        -2,951        322.7%        -15,181        2,547        n.m.  

 

 

Foreign Exchange Loss

     7,511        6,877        9.2%        101,610        -3,539        n.m.  

 

 

Comprehensive Financing Cost (Income)

     22,381        12,333        81.5%        113,079        25,338        346.3%  

 

 

Income & Deferred Taxes

     2,169        11,431        -81.0%        -1,696        35,716        -104.7%  

 

 

Net Income before Minority

                 

Interest and Equity Participation in Results

of Affiliates

     20,516        14,292        43.6%        13,542        49,491        -72.6%  

 

 

Equity Participation in Results of Affiliates

     1        -7        107.5%        -283        7        n.m.  

 

 

Minority Interest

     -1,655        -1,242        -33.3%        -3,718        -2,541        -46.3%  

 

 

Net Income

     18,861        13,043        44.6%        9,540        46,957        -79.7%  

 

 

*Total revenues include Other Revenues,

n.m. Not meaningful.

Our operating profit shot up 18.4% to 45.1 billion pesos and was the driver of a 45% increase in our net income, which totaled 18.9 billion pesos.

In cash flow terms, our net debt came down by 47.0 billion pesos over the nine months to September. In addition, we devoted 15 billion pesos to cover our pension-related commitments. Notwithstanding the above, our net debt (after leases) ended September 48.8 billion pesos higher than in December, at 726 billion. The increase in the amount outstanding in peso terms is due solely to the impact of changes in foreign exchange rates on the non-peso debt, with the peso falling 12.4% vs. the U.S. dollar and 15.6% vs. the euro in relation to December 2019. At the end of the month our net debt to EBITDA ratio stood at 1.88 times under IAS17, slightly less than at the end of June.

Our capital expenditures totaled 91.0 billion pesos in the period and were directed to securing adequate capacity in our networks and maintaining good quality of service.


Balance Sheet - América Móvil Consolidated Millions of Mexican Pesos

 

     Sep ‘20    Dec ‘19    Var.%           Sep ‘20    Dec ‘19    Var.%

 

Current Assets

            Current Liabilities         

 

Cash, Marketable Securities & Other Short Term Investments

   81,737    67,464      21.2%      Short Term Debt*    124,433    129,172    -3.7%

 

Accounts Receivable

   232,187    211,532      9.8%      Lease-Related Debt    24,621    25,895    -4.9%

 

Other Current Assets

   16,221    10,747      50.9%      Accounts Payable    247,853    268,484    -7.7%

 

Inventories

   35,029    41,102      -14.8%      Other Current Liabilities    100,315    101,849    -1.5%

 

   365,173    330,844      10.4%         497,221    525,400    -5.4%

 

Non Current Assets

            Non Current Liabilities         

 

Plant & Equipment, gross

   1,366,504    1,319,588      3.6%      Long Term Debt    566,730    495,082    14.5%

 

-Depreciation

   724,277    680,244      6.5%      Lease-Related Debt    92,102    94,702    -2.7%

 

Plant & Equipment, net

   642,227    639,343      0.5%      Other Non Current Liabilities    199,476    189,843    5.1%

 

Rights of Use

   110,880    118,003      -6.0%         858,308    779,627    10.1%

 

Investments in Affiliates

   1,838    2,474      -25.7%              

 

                    

 

Deferred Assets

                    

 

Goodwill (Net)

   150,366    152,900      -1.7%              

 

Intangible Assets

   136,311    125,169      8.9%      Shareholder’s Equity    228,840    226,907    0.9%

 

Deferred Assets

   177,573    163,199      8.8%              

 

Total Assets

   1,584,369    1,531,934      3.4%     

Total Liabilities and Equity

   1,584,369    1,531,934    3.4%

 

*Includes current portion of Long Term Debt.

Financial Debt of América Móvil* Millions

 

 
     Sep -20      Dec -19  

 

 

Peso - denominated debt (MxP)

     66,511        80,129  

 

 

Bonds

     51,241        58,129  

 

 

Banks and others

     15,270        22,000  

 

 

U.S. Dollar - denominated debt (USD)

     10,263        9,472  

 

 

Bonds

     9,351        8,975  

 

 

Banks and others

     912        497  

 

 

Euro - denominated Debt (EUR)

     9,700        11,165  

 

 

Bonds

     8,100        10,942  

 

 

Commercial Paper

     1,600        123  

 

 

Banks and others

     0        100  

 

 

Sterling - denominated Debt (GBP)

     2,200        2,750  

 

 

Bonds

     2,200        2,750  

 

 

Reais - denominated Debt (BRL)

     9,975        7,475  

 

 

Bonds

     9,975        7,475  

 

 

Banks and others

     0        0  

 

 

Debt denominated in other currencies(1) (MxP)

     35,299        26,045  

 

 

Bonds

     6,858        5,818  

 

 

Banks and others

     28,441        20,227  

 

 

Total Debt (MxP)

     691,162        624,254  

 

 

Cash, Marketable Securities and Short Term Financial Investments (MxP)

     81,737        67,464  

 

 

Net Debt (MxP)

     609,425        556,790  

 

 

*This table does not include the effect of forwards and derivatives used to hedge our foreign exchange exposure. It includes financial debt of Telekom Austria.

(1)Includes Peruvian soles and Chilean pesos.


Mexico

 

We added 1.2 million wireless subscribers in the second quarter—substantially all of them prepaid clients— reverting most of the subscriber losses observed in the second quarter as confinement restrictions were relaxed and we resumed more forcefully our commercial activity. Prepaid churn came down by nearly one percentage point from the prior quarter. On the fixed-line platform we added 117 thousand broadband clients twice as many as in the second quarter, supported by our alliances with OTT providers.

Our Mexican revenues totaled 73.2 billion pesos, up 0.4% from the year before, with service revenues declining slightly, -0.7%, an improvement on the -2.1% year-on-year reduction observed the prior quarter.

Mobile service revenues declined 0.6%, improving on their -2.5% pace of the second quarter. The recovery of Mexican mobile revenues was wholly driven by the bounce in prepaid revenues, which went from a -3.8% pace in the second quarter to +1.1% in the third.

Similarly, fixed-line service revenues came down 1.0% year-on-year in the third quarter, having fallen 1.4% the previous one. There were important advances both on fixed-broadband services—their expansion moved up from 1.8% in the second quarter to 6.0%—and in corporate networks, overcoming a 3.3% fall in the second quarter to a +2.2% increase in the third quarter. Losses in fixed-line voice revenues determined that revenues on that platform continued to decline.

EBITDA expanded 1.3% in the third quarter helped along by the improvement in revenues, recovering from a 10.3% year-on-year plunge in the second quarter. The EBITDA margin was slightly higher, 37.6%, on the relative normalization of commercial activities and associated expenses.

INCOME STATEMENT - Mexico Millions of MxP

 

 

 
     3Q20      3Q19(1)      Var.%      Jan-Sep 20      Jan-Sep 19(1)      Var.%  

 

 

Total Revenues*

     73,187        72,926        0.4%        209,253        213,473        -2.0%  

 

 

Total Service Revenues

     52,992        53,377        -0.7%        159,511        157,553        1.2%  

 

 

Wireless Revenues

     54,031        52,699        2.5%        150,522        151,936        -0.9%  

 

 

Service Revenues

     34,378        34,569        -0.6%        102,787        100,462        2.3%  

 

 

Equipment Revenues

     19,653        18,130        8.4%        47,734        51,474        -7.3%  

 

 

Fixed Line Revenues

     18,705        19,539        -4.3%        57,173        59,608        -4.1%  

 

 

EBITDA

     27,525        27,178        1.3%        79,717        79,219        0.6%  

 

 

% total revenues

     37.6%        37.3%           38.1%        37.1%     

 

 

EBIT

     19,819        18,431        7.5%        56,511        53,008        6.6%  

 

 

%

     27.1%        25.3%           27.0%        24.8%     

 

 

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

(1)2019 reflects reclassifications of “other revenues’.

Mexico Operating Data

 

 
                     3Q20                      3Q19                      Var.%  

 

 

Wireless Subscribers (thousands)

     76,563        76,150        0.5%  

 

 

Postpaid

     14,485        14,107        2.7%  

 

 

Prepaid

     62,077        62,043        0.1%  

 

 

MOU

     561        530        5.7%  

 

 

ARPU (MxP)

     152        152        -0.6%  

 

 

Churn (%)

     3.3%        4.2%        -0.8%  

 

 

Revenue Generating Units (RGUs)*

     22,011        22,158        -0.7%  

 

 

Fixed Lines

     12,032        12,448        -3.3%  

 

 

Broadband

     9,978        9,710        2.8%  

 

 

*Fixed Line and Broadband.


Argentina

 

For comparison purposes all comments in this section related to annual variations of the presented period for Argentina refer to figures in constant peso terms, that is, adjusted for inflation in accordance to NIC 29. Information for Uruguay and Paraguay is not presented in the table.

Telecommunication services have been considered “essential services” by presidential decree beginning in August; as such, we have been forbidden to raise prices for our services for the remainder of 2020.

Third quarter revenues declined 9.6% in real terms (after inflation) from the year-earlier quarter with service revenues falling 9.4%. Mobile service revenues came down 12.0% as subscribers curtailed their usage or disconnected lines as disposable income contracted and unemployment rates increased on account of lockdown measures that were prolonged through September. The impact was more hardly felt on the postpaid segment where revenues declined 13.0%; prepaid revenues declined 7.7%. Fixed-line service revenues rose 13.9% from a small base driven by broadband revenue growth of 22.7% and PayTV revenues that increased 164.4%.

Third quarter EBITDA was down 9.1% year-on-year and the EBITDA margin stayed roughly flat at 41.6%. Given the current conditions, we have made extraordinary efforts to contain costs and thrive in an inflationary environment. As a result of strict cost controls we were able to post a sequential increase in EBITDA of 8.6% in spite a 7.2% plunge in service revenues. The sequential increase in the EBITDA margin was 3.5 percentage points.

INCOME STATEMENT - Argentina Millions of Constant ARS of September 2020

 

    

 

                3Q20

                     3Q19                      Var.%                  Jan-Sep 20                      Jan-Sep 19                      Var.%  

 

 

Total Revenues*

     27,630        30,578        -9.6%        84,192        92,778        -9.3%  

 

 

Total Service Revenues

     22,620        24,976        -9.4%        70,759        75,289        -6.0%  

 

 

Wireless Revenues

     24,664        28,091        -12.2%        75,648        85,448        -11.5%  

 

 

Service Revenues

     19,853        22,548        -12.0%        62,737        68,156        -8.0%  

 

 

Equipment Revenues

     4,810        5,542        -13.2%        12,912        17,293        -25.3%  

 

 

Fixed Line Revenues

     2,766        2,428        13.9%        8,022        7,134        12.5%  

 

 

EBITDA

     11,500        12,652        -9.1%        32,891        38,490        -14.5%  

 

 

% total revenues

     41.6%        41.4%           39.1%        41.5%     

 

 

EBIT

     8,803        9,886        -11.0%        25,370        31,080        -18.4%  

 

 

%

     31.9%        32.3%           30.1%        33.5%     

 

 

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

Argentina Operating Data

 

    

 

                3Q20

                     3Q19                      Var.%  

 

 

Wireless Subscribers (thousands)(1)

     21,295        21,885        -2.7%  

 

 

Postpaid

     8,394        8,418        -0.3%  

 

 

Prepaid

     12,901        13,467        -4.2%  

 

 

MOU

     94        77        21.0%  

 

 

ARPU (ARP)

     302        240        26.0%  

 

 

Churn (%)

     2.0%        1.8%        0.2%  

 

 

Revenue Generating Units (RGUs)*

     1067        695        53.6%  

 

 

*Fixed Line, Broadband and Television.

(1)Hybrid subscribers are now included in our postpaid figures.


Brazil

 

In the third quarter we added 1.8 million postpaid subscribers—one of our best quarters in terms of net additions—and lost 321 thousand prepaid subscribers on the mobile platform. On the fixed-line one, we gained 62 thousand broadband accesses and lost 209 thousand PayTV clients and 162 thousand voice lines.

Third quarter revenues were up 1.1% from the year-earlier quarter to 9.8 billion reais, with service revenues roughly flat, 0.3%, as mobile service revenues rose 8.1% and fixed-line revenues came down 5.1%.

Mobile service revenues were buoyed by the strong recovery of prepaid revenues, from -1.0% in the second quarter to +5.1% in the third, and by continued strong performance of postpaid revenues, up 9.0% in the quarter.

Mobile ARPU rose 25.7% on the back of a 50% increase in consumption of data services per client and 19.8% in voice services (MOUs) which also increased significantly.

On the fixed-line platform broadband revenues continued growing along their trend line—at 9.9% they were expanding at the same pace as in the second quarter—but the down-trend on PayTV revenues accelerated to -13.6% from -11.7% the precedent quarter along with the reduction of PayTV accesses.

EBITDA increased 6.1% year-on-year in the third quarter and nearly reached four billion reais, as the EBITDA margin topped 40% for the second consecutive quarter; it was up 1.9 percentage points higher than a year before.

INCOME STATEMENT - Brazil Proforma Millions of BrL

 

 

                     3Q20                      3Q19                          Var.%      Jan-Sep 20      Jan-Sep 19      Var.%  

 

 

Total Revenues*

     9,790        9,681        1.1%        29,117        28,706        1.4%  

 

 

Total Service Revenues

     9,423        9,398        0.3%        28,277        27,852        1.5%  

 

 

Wireless Revenues

     4,467        4,062        10.0%        12,969        11,820        9.7%  

 

 

Service Revenues

     4,117        3,809        8.1%        12,168        11,021        10.4%  

 

 

Equipment Revenues

     350        253        38.4%        801        799        0.3%  

 

 

Fixed Line Revenues

     5,306        5,590        -5.1%        16,109        16,831        -4.3%  

 

 

EBITDA

     3,943        3,716        6.1%        11,469        10,614        8.1%  

 

 

% total revenues

     40.3%        38.4%           39.4%        37.0%     

 

 

EBIT

     1,554        1,496        3.9%        4,554        4,131        10.2%  

 

 

%

     15.9%        15.4%           15.6%        14.4%     

 

 

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

Brazil Operating Data    

 

                     3Q20                      3Q19                      Var.%  

 

 

Wireless Subscribers (thousands)

     60,005        56,451        6.3%  

 

 

Postpaid

     33,658        26,243        28.3%  

 

 

Prepaid

     26,348        30,207        -12.8%  

 

 

MOU(1)

     190        159        19.8%  

 

 

ARPU (BrL)

     24        19        25.7%  

 

 

Churn (%)

     4.7%        4.2%        0.5%  

 

 

Revenue Generating Units (RGUs)*

     32,952        34,448        -4.3%  

 

 

*Fixed Line, Broadband and Television.

(1)We modified the methodology for calculating MOUs. We no longer include M2M subscribers.    


Colombia

 

 

Our wireless subscriber base topped 32 million clients at the end of September after net additions of 489 thousand in the quarter, the highest in at least a year. Postpaid net additions totaled 142 thousand and prepaid gains 347 thousand subscribers.

There was a sharp acceleration in fixed-broadband accesses with net gains of 122 thousand clients, more than three times as many as in the year-earlier quarter. PayTV accesses were also on the rise, reaching 41 thousand.

Revenues totaled 3.4 trillion Colombian pesos, 3.0% more than a year before, with service revenues rising 9.2%, in line with the pace recorded prior to the pandemic. It was our only operation that presented revenue growth in both the mobile and the fixed-line platforms.

Mobile service revenues were up 8.3% showing a marked recovery from the second quarter in both prepaid and postpaid—the former went from 7.5% to 12.1% whereas the latter moved up from 3.5% to 6.3%—as the lockdown measures eased and the economy resumed its course. ARPU was up 3.6% compared to the same period of the prior year with data usage per client rising 36%.

Fixed-line service revenues increased 10.6% year-on-year on the back of broadband revenues that expanded 16.1%, as the increase in demand for such services brought about by the lockdown measures continued to come through in the third quarter. PayTV, which is typically bundled with broadband services, showed similar trends, rising 10.3% in the period. On corporate networks, we also observed solid revenue growth, 12.3%.

As revenues recovered, EBITDA rose 3.4% relative to the prior year to 1.5 trillion Colombian pesos, with the margin, at 43.4%, slightly higher in spite of the greater commercial activity.

INCOME STATEMENT - Colombia Billions of COP    

 

 
     3Q20      3Q19      Var.%      Jan-Sep 20      Jan-Sep 19      Var.%  

 

 

Total Revenues*

     3,368        3,269        3.0%        9,729        9,302        4.6%  

 

 

Total Service Revenues

     2,687        2,462        9.2%        7,833        7,219        8.5%  

 

 

Wireless Revenues

     2,300        2,293        0.3%        6,654        6,452        3.1%  

 

 

Service Revenues

     1,654        1,528        8.3%        4,828        4,488        7.6%  

 

 

Equipment Revenues

     646        766        -15.6%        1,826        1,964        -7.1%  

 

 

Fixed Line Revenues

     1,036        962        7.7%        3,016        2,794        8.0%  

 

 

EBITDA

     1,461        1,413        3.4%        4,173        4,051        3.0%  

 

 

%

     43.4%        43.2%           42.9%        43.5%     

 

 

EBIT

     841        838        0.3%        2,383        2,334        2.1%  

 

 

%

     25.0%        25.6%           24.5%        25.1%     

 

 

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

Colombia Operating Data    

 

 
                 3Q20                  3Q19                  Var.%  

 

 

Wireless Subscribers* (thousands)

     32,024        30,577        4.7%  

 

 

Postpaid

     7,564        7,249        4.3%  

 

 

Prepaid

     24,460        23,328        4.9%  

 

 

MOU(1)

     336        279        20.4%  

 

 

ARPU (COP)

     17,509        16,897        3.6%  

 

 

Churn (%)

     4.7%        4.6%        0.1%  

 

 

Revenue Generating Units (RGUs)**

     8,155        7,555        7.9%  

 

 

*Due to differences in the policy for accounting active subscribers, the figures in this report are different from those published by the Ministry of Communications of Colombia (MinTIC).**Fixed Line, Broadband and Television.

(1)We modified the methodology for calculating MOUs. We no longer include M2M subscribers.


Chile

 

 

Third quarter revenues of 192.7 billion Chilean pesos were down 6.6% on an annual basis with service revenues declining 7.2%—compared to 7.0% in the prior quarter—and equipment revenues declining 4.4%.

Mobile service revenues declined 9.0% in the third quarter. In the prepaid segment revenues were down 14.7%, which marked a sequential improvement from the 31.8% decline observed the prior quarter. But in postpaid, revenues dropped 8.3% exacerbating the contraction that began in the second quarter mostly as a result of the pandemic, in particular due to the poor performance of SMEs that had to materially reduce or cancel the services altogether. In spite of the tough conditions generated by the sanitary crisis, we continued to observe aggressive promotional activity in Chile.

Fixed-line service revenues were down 4.9%, an improvement over the 9.4% reduction observed the prior quarter with fixed-broadband revenues increasing 10.2%, slightly faster than in the second quarter. Even as mandatory lockdown has been relaxed for the vast majority of the population, students are still homeschooling and companies still have an important proportion of employees working from home which has accelerated the demand for broadband services.

EBITDA declined 13.5% year-on-year to 40.5 billion pesos on account of the reduction in revenues.

INCOME STATEMENT - Chile Millions of ChPL

 

 
                 3Q20                  3Q19(1)                  Var.%      Jan-Sep 20      Jan-Sep 19(1)      Var.%  

 

 

Total Revenues*

     192,679        206,234        -6.6%        574,382        623,953        -7.9%  

 

 

Total Service Revenues

     158,644        170,876        -7.2%        482,848        511,037        -5.5%  

 

 

Wireless Revenues

     119,422        129,460        -7.8%        357,133        393,118        -9.2%  

 

 

Service Revenues

     85,693        94,193        -9.0%        266,268        281,574        -5.4%  

 

 

Equipment Revenues

     33,729        35,268        -4.4%        90,865        111,544        -18.5%  

 

 

Fixed Line Revenues

     72,951        76,683        -4.9%        216,580        229,463        -5.6%  

 

 

EBITDA

     40,513        46,855        -13.5%        122,693        131,510        -6.7%  

 

 

% total revenues

     21.0%        22.7%           21.4%        21.1%     

 

 

EBIT

     -12,236        -37,415        67.3%        -38,739        -85,952        54.9%  

 

 

%

     -6.4%        -18.1%           -6.7%        -13.8%     

 

 

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

Total revenues include other income.

(1)2019 reflects restatements of fixed and mobile revenues.

Chile Operating Data

 

 
    

 

            3Q20

                 3Q19                  Var.%  

 

 

Wireless Subscribers (thousands)

     6,505        6,779        -4.0%  

 

 

Postpaid

     2,282        2,242        1.8%  

 

 

Prepaid

     4,223        4,537        -6.9%  

 

 

MOU

     190        168        13.4%  

 

 

ARPU (ChP)

     4,777        5,161        -7.5%  

 

 

Churn (%)

     7.5%        6.0%        1.5%  

 

 

Revenue Generating Units (RGUs)*

     1,391        1,418        -1.9%  

 

 

*Fixed Line, Broadband and Television.


Ecuador

 

 

In the third quarter we added 314 thousand prepaid subscribers but disconnected 370 thousand postpaid clients to finish September with 7.8 million wireless subscribers.

Our third quarter revenues were down 18.5% from the year-earlier quarter to 266 million dollars with service revenues declining 10.0% and equipment revenues plummeting 64.0% as commercial activity remained subdued. Service revenues on the mobile segment fell 12.1% compared to -18.9% in the second quarter as prepaid revenues recovered following the relaxation of lockdown measures: although still down 12.3% year-on-year, that was an improvement relative to the 27.5% observed in the second quarter. Postpaid revenues carried forward to the third quarter their 12% annual rate of decline.

Fixed-line service revenues, albeit at 10% still a small share of service revenues, were up 14.7% supported by broadband revenues that increased 23.3%.

We continued working on adjusting our cost structure and were able to lift our EBITDA margin by 6.2 percentage points relative to the year-earlier quarter to 49.8% of revenues. Nonetheless, at 133 million dollars our EBITDA was down 6.9%.

 

INCOME STATEMENT - Ecuador Millions of Dollars

                      

 

 
                 3Q20                  3Q19                  Var.%      Jan-Sep 20      Jan-Sep 19                  Var.%  

 

 

Total Revenues*

     266        327        -18.5%        815        987        -17.4%  

 

 

Total Service Revenues

     248        275        -10.0%        743        826        -10.0%  

 

 

Wireless Revenues

     239        304        -21.2%        736        917        -19.7%  

 

 

Service Revenues

     222        253        -12.1%        668        761        -12.2%  

 

 

Equipment Revenues

     17        51        -66.2%        68        156        -56.3%  

 

 

Fixed Line Revenues

     27        23        16.4%        79        69        15.5%  

 

 

EBITDA

     133        143        -6.9%        383        427        -10.2%  

 

 

% total revenues

     49.8%        43.6%           47.0%        43.2%     

 

 

EBIT

     78        86        -9.9%        217        256        -15.5%  

 

 

%

     29.2%        26.5%           26.6%        26.0%     

 

 

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

 

Ecuador Operating Data    

                    

 

 
                 3Q20                  3Q19                  Var.%  

 

 

Wireless Subscribers (thousands)

     7,822        8,422        -7.1%  

 

 

Postpaid

     2,179        2,672        -18.5%  

 

 

Prepaid

     5,643        5,750        -1.9%  

 

 

MOU

     436        447        -2.5%  

 

 

ARPU (US$)

     10        10        -5.6%  

 

 

Churn (%)

     4.4%        4.3%        0.1%  

 

 

Revenue Generating Units (RGUs)*

     446        431        3.5%  

 

 

*Fixed Line, Broadband and Television.


Peru

 

 

We obtained net additions of 237 thousand prepaid subscribers and disconnected 72 thousand postpaid clients in the third quarter. Fixed-line RGUs increased by 81 thousand new units including 70 thousand broadband connections. RGUs were up 13.3% annually to 1.8 million.

Revenues declined 3.6% in the third quarter, compared to -17.7% in the prior one. The improvement came from equipment revenues that went from minus 76.4% in the second quarter to -23.1% in the current period.

Mobile service revenues remained flat as compared to last year with a very different trend in the segments: In prepaid, service revenue growth accelerated to 9.7% as a result of subscriber growth and ARPU improvement, whereas in postpaid revenues continued to decelerate, declining -3.9% from +1.6% in the second quarter. The economic conditions have forced some clients to move to prepaid, including the smaller businesses.

Fixed-line service revenues increased 17.6%, up from 11.0% in the second quarter, on the back of residential broadband services. We have seen broadband revenue growth accelerate for six quarters in a row to 42.3% (32.9% growth in the precedent quarter).

EBITDA was up 10.2% year-over-year to 435 million soles, with the EBITDA margin, 34.5%, rising 4.3 percentage points from a year before. The improvement in EBITDA is the result of cost control efforts, lower handset subsidies and fixed-line service revenue growth.

 

INCOME STATEMENT - Peru Millions of Soles

                             

 

 
                 3Q20                  3Q19                  Var.%      Jan-Sep 20      Jan-Sep 19                  Var.%  

 

 

Total Revenues*

     1,260        1,307        -3.6%        3,593        3,832        -6.2%  

 

 

Total Service Revenues

     976        940        3.8%        2,904        2,788        4.2%  

 

 

Wireless Revenues

     1,006        1,091        -7.7%        2,876        3,177        -9.5%  

 

 

Service Revenues

     729        730        -0.1%        2,201        2,161        1.8%  

 

 

Equipment Revenues

     277        361        -23.1%        676        1,016        -33.5%  

 

 

Fixed Line Revenues

     247        210        17.6%        704        627        12.2%  

 

 

EBITDA

     435        395        10.2%        1,226        1,101        114%  

 

 

% total revenues

     34.5%        30.2%           34.1%        28.7%     

 

 

EBIT

     167        129        29.6%        435        354        22.9%  

 

 

%

     13.2%        9.8%           12.1%        9.2%     

 

 

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

 

Peru Operating Data

                    

 

 
                 3Q20                  3Q19                  Var.%  

 

 

Wireless Subscribers (thousands)

     10,552        11,623        -9.2%  

 

 

Postpaid

     3,992        4,090        -2.4%  

 

 

Prepaid

     6,560        7,533        -12.9%  

 

 

MOU

     433        270        60.1%  

 

 

ARPU (Sol)

     23        21        11.5%  

 

 

Churn (%)

     3.6%        5.2%        -1.6%  

 

 

Revenue Generating Units (RGUs)*

     1,787        1,578        13.3%  

 

 

*Fixed Line, Broadband and Television.


Central America

 

 

In the third quarter we gained 89 thousand prepaid subscribers and disconnected 97 thousand postpaid subscribers. On the fixed-line segment we had disconnections of 152 thousand units in the quarter, most of them voice lines.

Disconnections of postpaid subscribers and fixed-line RGUs stemmed from the decision of subscribers to cancel their services after the measures imposed at the beginning of the sanitary crisis in most Central American markets that prohibited us to disconnect any line in absence of payment were lifted in the months of July and August. Subscribers were supposed to cover the balance due in installments.

This was reflected in total revenues that posted a 9.4% year-on-year decline, to 552 million dollars. Service revenues were down 5.4% and equipment revenues 36.4%. On the mobile platform service revenues declined 6.9% with postpaid revenues off 9.6% (from -3.8% the prior quarter) and prepaid revenues 4.4%. On the fixed-line segment service revenues were 2.6% lower than a year before with broadband being the only business line that saw revenue expansion, 5.8%, over the year.

EBITDA came in at 221 million dollars, 4.5% below that of the year-earlier quarter. We managed to increase our EBITDA margin by 2.1 percentage points relative to last year, to 40.1% of revenues, on the back of efficiency gains.

INCOME STATEMENT - Central America Proforma Millions of Dollars

 

 
                 3Q20                  3Q19(1)                  Var.%      Jan-Sep 20      Jan-Sep 19(1)                  Var.%  

 

 

Total Revenues*

     552        609        -9.4%        1,668        1,825        -8.6%  

 

 

Total Service Revenues

     498        526        -5.4%        1,500        1,573        -4.6%  

 

 

Wireless Revenues

     365        414        -11.9%        1,103        1,240        -11.0%  

 

 

Service Revenues

     320        343        -6.9%        963        1,023        -5.9%  

 

 

Equipment Revenues

     45        71        -36.2%        141        217        -35.0%  

 

 

Fixed Line Revenues

     183        190        -4.0%        554        571        -3.0%  

 

 

EBITDA

     221        232        -4.5%        651        684        -4.9%  

 

 

% total revenues

     40.1%        38.0%           39.0%        37.5%     

 

 

EBIT

     55        89        -38.8%        195        252        -22.8%  

 

 

%

     9.9%        14.7%           11.7%        13.8%     

 

 

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

(1)2019 figures were restated for IFRS 16.

Central America Operating Data

 

 
    

 

                3Q20

                     3Q19                      Var.%  

 

 

Wireless Subscribers (thousands)

     14,533        15,290        -4.9%  

 

 

Postpaid

     2,362        2,508        -5.8%  

 

 

Prepaid

     12,171        12,782        -4.8%  

 

 

MOU(1)

     194        166        17.1%  

 

 

ARPU (US$)

     8        8        -0.7%  

 

 

Churn (%)

     6.3%        6.8%        -0.5%  

 

 

Revenue Generating Units (RGUs)*

     4,227        4,385        -3.6%  

 

 

*Fixed Line, Broadband and Television. Figures have been adjusted in accordance with the methodolgy used for all AMX operations.

(1)We modified the methodology for calculating MOUs. We no longer include M2M subscribers.


Caribbean

 

 

Net additions in Dominicana were concentrated in the prepaid segment and reached 126 thousand subs—nearly 76% more than a year before. In Puerto Rico we gained 24 thousand new subscribers, including 13 thousand postpaids. On the fixed-line segment net additions were driven by broadband accesses: 14 thousand in Dominicana and 5 thousand in Puerto Rico.

Total revenues in Dominicana were up 1.4% showing an important sequential improvement coming from minus 6.0% in 2Q20. Service revenues rose 3.7% annually. Mobile service revenues rose 7.6%, compared to minus 2.0% in the prior quarter. The rebound was noteworthy in the prepaid segment where revenues expanded 11.4% compared to a 3.5% reduction the prior quarter. In the postpaid segment revenues were 3.4% greater than a year before (compared to -0.4% in the second quarter).

EBITDA was up 5.8% with the margin climbing two percentage points from the year-earlier quarter to 48.5% on the back of operational efficiencies and the recovery of the revenue base.

Puerto Rico’s revenue grew 10.9% year-on-year with service revenues expanding 2.8%. Growth is partly linked to federal and local government aid to students that helped boost equipment sales and a greater demand for fixed broadband and mobile WiFi services. This is reflected in a 13.8% increase in mobile postpaid service revenues—from 2.7% the second quarter.

EBITDA for the quarter was up 38.3% following revenue improvements and greater equipment profits along with overall cost containment efforts; the EBITDA margin stood at 19.5% of revenues, 3.9 percentage points higher than a year before.

INCOME STATEMENT - Caribbean Millions of Dollars

 

 
             3Q20                  3Q19(1)                  Var.%      Jan-Sep 20      Jan-Sep 19(1)                  Var.%  

 

 

Total Revenues*

     439        441        -0.6%        1,279        1,342        -4.7%  

 

 

Total Service Revenues

     377        391        -3.4%        1,127        1,192        -5.4%  

 

 

Wireless Revenues

     272        260        4.6%        777        790        -1.7%  

 

 

Service Revenues

     214        210        1.9%        631        640        -1.5%  

 

 

Equipment Revenues

     58        50        16.0%        146        150        -2.6%  

 

 

Fixed Line Revenues

     166        183        -9.1%        505        560        -9.9%  

 

 

EBITDA

     150        145        3.4%        423        440        -3.8%  

 

 

% total revenues

     34.1%        32.8%           33.1%        32.8%     

 

 

EBIT

     69        66        3.6%        178        198        -9.8%  

 

 

%

     15.6%        15.0%           13.9%        14.7%     

 

 

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

(1)2019 reflects reclassifications of fixed and mobile service revenues.

Caribbean Operating Data

 

 
    

 

                3Q20

                     3Q19                      Var.%  

 

 

Wireless Subscribers (thousands)

     6,237        6,139        1.6%  

 

 

Postpaid

     2,024        1,994        1.5%  

 

 

Prepaid

     4,213        4,145        1.6%  

 

 

MOU(1)

     237        227        4.4%  

 

 

ARPU (US$)

     12        12        1.0%  

 

 

Churn (%)

     3.3%        3.4%        -0.2%  

 

 

Revenue Generating Units (RGUs)*

     2,532        2,537        -0.2%  

 

 

*Fixed Line, Broadband and Television.

(1)We modified the methodology for calculating MOUs. We no longer include M2M subscribers.


United States

 

 

We ended September with 20.9 million subscribers after net disconnections of 42 thousand in the third quarter.

Our revenues topped two billion dollars in the third quarter, up 0.7% year-on-year. Service revenues increased 3.5%, up from 1.2% in the second quarter and 0.1% in the first, as the prepaid segment we serve has become, under current economic conditions, more appealing to clients that seek flexibility and better control over their expenditures. ARPU rose 5.5% from the year-earlier quarter to 28 dollars.

EBITDA of 269 million dollars was 69.1% higher than a year before. This figure reflects certain reductions in the cost of airtime following negotiations reached with certain carriers in the second quarter, in absence of which EBITDA growth would have been 20.1% in the quarter. The EBITDA margin was equivalent to 13.2%, compared to 7.8% in 2019.

INCOME STATEMENT - United States Millions of Dollars

 

 
    

 

            3Q20

                 3Q19                  Var.%      Jan-Sep 20      Jan-Sep 19                  Var.%  

 

 

Total Revenues

     2,043        2,030        0.7%        6,116        6,020        1.6%  

 

 

Service Revenues

     1,764        1,704        3.5%        5,185        5,103        1.6%  

 

 

Equipment Revenues

     278        325        -14.4%        930        917        1.5%  

 

 

EBITDA

     269        159        69.1%        698        460        51.7%  

 

 

% total revenues

     13.2%        7.8%           11.4%        7.6%     

 

 

EBIT

     251        142        77.2%        643        405        58.9%  

 

 

%

     12.3%        7.0%           10.5%        6.7%     

 

 

United States Operating Data

 

 
                     3Q20                      3Q19                      Var.%  

 

 

Wireless Subscribers (thousands)

     20,876        21,229        -1.7%  

 

 

Straight Talk

     9,683        9,307        4.0%  

 

 

SafeLink

     2,017        2,448        -17.6%  

 

 

Other Brands

     9,176        9,474        -3.1%  

 

 

MOU

     657        591        11.1%  

 

 

ARPU (US$)

     28        27        5.5%  

 

 

Churn (%)

     3.5%        4.0%        -0.5%  

 

 


A1 Telekom Austria Group

 

 

We added 310 thousand postpaid wireless subscribers—241 thousand in Austria—and 91 thousand prepaids in the third quarter. On the fixed-line platform, the number of fixed broadband and PayTV accesses changed marginally.

On a consolidated basis, third quarter revenues decreased 0.9% to 1.1 billion euros, with service revenues declining 2.1% due to roaming losses and negative foreign exchange effects arising form the devaluation of the Belarussian currency. At constant exchange rates service revenues increased 0.1%.

Mobile service revenues declined 3.8% on a group level. In Austria, mobile service revenues were down 0.5% and in our international operations they declined 6.5%. The loss of roaming revenues was felt more strongly in Austria, Croatia and Slovenia whereas the currency effects were limited to Belarus.

On the fixed-line segment revenues were flat year-on-year with Austria falling 1.6% driven by lower interconnection revenues as international traffic volumes decreased sharply. Our international operations saw fixed-line service revenues rising 2.3%.

Adjusted EBITDA (before restructuring charges) increased 0.5% to 463 million euros; after restructuring charges EBITDA was up 0.6%. In Austria EBITDA rose 4.7% before restructuring charges while in our international operations it was up 3.3% (adjusted by foreign exchange and one-offs) on the back of strong performances in Belarus, Bulgaria and Slovenia.

INCOME STATEMENT (In accordance with IFRS 16) - A1 Telekom Austria Group

Millions of Euros

 

 
             3Q20              3Q19     

 

        Var.%

             Jan-Sep 20              Jan-Sep 19              Var.%  

 

 

Total Revenues

     1,142        1,153        -0.9%        3,364        3,365        0.0%  

 

 

Total service revenues

     954        975        -2.1%        2,843        2,843        0.0%  

 

 

Wireless service revenues

     524        545        -3.8%        1,554        1,555        0.0%  

 

 

Fixed-line service revenues

     430        430        0.0%        1,289        1,288        0.1%  

 

 

Equipment revenues

     169        158        7.2%        464        451        2.8%  

 

 

Other operating income

     19        20        -5.0%        57        71        -19.8%  

 

 

EBITDA

     442        439        0.6%        1,212        1,205        0.6%  

 

 

% total revenues

     38.7%        38.1%           36.0%        35.8%     

 

 

Adjusted EBITDA(1)

     463        460        0.5%        1,274        1,268        0.5%  

 

 

% total revenues

     40.5%        39.9%           37.9%        37.7%     

 

 

EBIT

     211        202        4.3%        510        497        2.6%  

 

 

% total revenues

     18.4%        17.5%           15.2%        14.8%     

 

 

For further detail please visit www.a1.group/en/investor-relations    

(1)Does not include restructuring charges in Austria.    

A1 Telekom Austria Group Operating Data    

 

 
                     3Q20                      3Q19                      Var.%  

 

 

Wireless Subscribers (thousands)

     21,609        21,512        0.5%  

 

 

Postpaid

     17,505        16,814        4.1%  

 

 

Prepaid

     4,104        4,698        -12.6%  

 

 

MOU(1)

     410        358        14.5%  

 

 

ARPU (US$)

     8        8        -4.1%  

 

 

Churn (%)

     1.2%        1.6%        -0.4%  

 

 

Revenue Generating Units (RGUs)*

     6,066        6,139        -1.2%  

 

 

*Fixed Line, Broadband and Television.

(1)We modified the methodology for calculating MOUs. We no longer include M2M subscribers.    


Exchange Rates Local Currency Units per MxP

                 
     

        3Q20

    

        3Q19

    

        Var.%

  

        Jan-Sep  20

  

        Jan-Sep  19

  

        Var.%

Euro

                                     

End of Period

  

 

0.0380

 

  

 

0.0467

 

  

-18.7%

  

0.0380

  

0.0467

  

-18.7%

Average

  

 

0.0387

 

  

 

0.0463

 

  

-16.5%

  

0.0409

  

0.0462

  

-11.6%

U.S.

                                     

End of Period

  

 

0.0445

 

  

 

0.0509

 

  

-12.6%

  

0.0445

  

0.0509

  

-12.6%

Average

  

 

0.0452

 

  

 

0.0515

 

  

-12.2%

  

0.0459

  

0.0519

  

-11.5%

Brazilean Real

                                     

End of Period

  

 

0.2512

 

  

 

0.2121

 

  

18.4%

  

0.2512

  

0.2121

  

18.4%

Average

  

 

0.2430

 

  

 

0.2044

 

  

18.9%

  

0.2328

  

0.2019

  

15.3%

Argentinean Peso

                                     

End of Period

  

 

3.3922

 

  

 

2.9328

 

  

15.7%

  

3.3922

  

2.9328

  

15.7%

Average

  

 

3.3139

 

  

 

2.5976

 

  

27.6%

  

3.1002

  

2.3091

  

34.3%

Chilean Peso

                                     

End of Period

  

 

35.0955

 

  

 

37.0849

 

  

-5.4%

  

35.0955

  

37.0849

  

-5.4%

Average

  

 

35.2908

 

  

 

36.3210

 

  

-2.8%

  

36.8441

  

35.5985

  

3.5%

Colombian Peso

                                     

End of Period

  

 

172.7251

 

  

 

176.3066

 

  

-2.0%

  

172.7251

  

176.3066

  

-2.0%

Average

  

 

168.6392

 

  

 

171.8567

 

  

-1.9%

  

170.1113

  

168.2032

  

1.1%

Guatemalan Quetzal

                                     

End of Period

  

 

0.3467

 

  

 

0.3939

 

  

-12.0%

  

0.3467

  

0.3939

  

-12.0%

Average

  

 

0.3491

 

  

 

0.3956

 

  

-11.8%

  

0.3537

  

0.3995

  

-11.5%

Peruvian Sol

                                     

End of Period

  

 

0.1603

 

  

 

0.1724

 

  

-7.0%

  

0.1603

  

0.1724

  

-7.0%

Average

  

 

0.1604

 

  

 

0.1722

 

  

-6.8%

  

0.1590

  

0.1729

  

-8.1%

Dominican Republic Peso

                                     

End of Period

  

 

2.6049

 

  

 

2.6894

 

  

-3.1%

  

2.6049

  

2.6894

  

-3.1%

Average

  

 

2.6463

 

  

 

2.6775

 

  

-1.2%

  

2.6000

  

2.6543

  

-2.0%


Exchange Rates Local Currency Units per USD

                 
     

        3Q20

    

        3Q19

    

        Var.%

  

        Jan-Sep  20

  

        Jan-Sep  19

  

        Var.%

Euro

                                     

End of Period

  

 

0.8532

 

  

 

0.9175

 

  

-7.0%

  

0.8532

  

0.9175

  

-7.0%

Average

  

 

0.8554

 

  

 

0.8998

 

  

-4.9%

  

0.8895

  

0.8901

  

-0.1%

Mexican Peso

                                     

End of Period

  

 

22.4573

 

  

 

19.6363

 

  

14.4%

  

22.4573

  

19.6363

  

14.4%

Average

  

 

22.1111

 

  

 

19.4227

 

  

13.8%

  

21.7673

  

19.2546

  

13.0%

Brazilean Real

                                     

End of Period

  

 

5.6407

 

  

 

4.1644

 

  

35.5%

  

5.6407

  

4.1644

  

35.5%

Average

  

 

5.3732

 

  

 

3.9694

 

  

35.4%

  

5.0667

  

3.8868

  

30.4%

Argentinean Peso

                                     

End of Period

  

 

76.1800

 

  

 

57.5900

 

  

32.3%

  

76.1800

  

57.5900

  

32.3%

Average

  

 

73.2740

 

  

 

50.4516

 

  

45.2%

  

67.4826

  

44.4612

  

51.8%

Chilean Peso

                                     

End of Period

  

 

788.1500

 

  

 

728.2100

 

  

8.2%

  

788.1500

  

728.2100

  

8.2%

Average

  

 

780.3197

 

  

 

705.4527

 

  

10.6%

  

801.9951

  

685.4349

  

17.0%

Colombian Peso

                                     

End of Period

  

 

3,878.9400

 

  

 

3,462.0100

 

  

12.0%

  

3,878.9400

  

3,462.0100

  

12.0%

Average

  

 

3,728.8049

 

  

 

3,337.9230

 

  

11.7%

  

3,702.8610

  

3,238.6848

  

14.3%

Guatemalan Quetzal

                                     

End of Period

  

 

7.7860

 

  

 

7.7355

 

  

0.7%

  

7.7860

  

7.7355

  

0.7%

Average

  

 

7.7195

 

  

 

7.6842

 

  

0.5%

  

7.6992

  

7.6919

  

0.1%

Peruvian Sol

                                     

End of Period

  

 

3.5990

 

  

 

3.3850

 

  

6.3%

  

3.5990

  

3.3850

  

6.3%

Average

  

 

3.5469

 

  

 

3.3439

 

  

6.1%

  

3.4606

  

3.3300

  

3.9%

Dominican Republic Peso

                                     

End of Period

  

 

58.5000

 

  

 

52.8100

 

  

10.8%

  

58.5000

  

52.8100

  

10.8%

Average

  

 

58.5137

 

  

 

52.0039

 

  

12.5%

  

56.5950

  

51.1082

  

10.7%


Glossary of Terms

 

ARPU   

Average Revenue per User. The ratio of service revenues in a given period to the average number of wireless subscribers in the same period. It is presented on a monthly basis.

ARPM   

Average Revenue per Minute. The ratio of service revenues to airtime traffic.

Capex   

Capital Expenditure. Accrued capital expenditures related to the expansion of the telecommunications infrastructure.

Churn   

Disconnection Rate. The ratio of wireless subscribers disconnected during a given period to the number of wireless subscribers at the beginning of that period.

EBIT   

Earnings Before Interest and Taxes, also known as Operating Profit.

EBIT margin   

The ratio of EBIT to total operating revenue.

EBITDA   

Earnings Before Interest, Taxes, Depreciation, and Amortization.

EBITDA margin   

The ratio of EBITDA to total operating revenue.

EPS (Mexican pesos)   

Earnings per share. Total earnings in Mexican pesos divided by total shares.

Earnings per ADR (US$)   

Total earnings in U.S. dollars divided by total ADRs equivalent.

Gross additions   

Total number of subscribers acquired during the period.

Licensed pops   

Licensed population. Population covered by the licenses that each of the companies manage.

LTE   

Long-term evolution is a 4th generation standard for wireless communication of high-speed data for mobile phones and data terminals.

Market share   

A company’s subscriber base divided by the total number of subscribers in that country.

MBOU   

Megabytes of Use per subscriber. The ratio of wireless data in a given period to the average number of wireless subscribers in that same period. It is presented on a monthly basis.

MOU   

Minutes of Use per subscriber. The ratio of wireless traffic in a given period to the average number of wireless subscribers in that same period. It is presented on a monthly basis.

Net subscriber additions   

The difference in the subscriber base from one period to another. It is the different between gross additions and disconnections.

Net debt   

Total short and long term debt minus cash and marketable securities.

Net debt / EBITDA   

The ratio of total short and long term debt minus cash and securities to trailing 12-month income before interest, taxes, depreciation and amortization.

Prepaid   

Subscriber that may purchase airtime to recharge a cellular phone. The client does not hold a contract with the company for voice and data services.

Postpaid   

Subscriber that has a contract for the use of airtime. The client has no need of activating airtime, it is done so immediately.

SMS   

Short Message Service.

SAC   

Subscriber Acquisition Cost. The sum of handset subsidies, marketing expenses and commissions to distributors for handset activation. Handset subsidy is calculated as the difference between equipment cost and equipment revenues.

Wireless penetration   

The ratio of total wireless subscribers in any given country divided by the total population in that country.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: October 22, 2020     AMÉRICA MÓVIL, S.A.B. DE C.V.
    By:  

/s/ Carlos José García Moreno Elizondo

    Name:  

Carlos José García Moreno Elizondo

    Title:  

Chief Financial Officer