Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Wednesday, July 15, 2020

América Móvil lost 5 million mobile subscribers in second quarter due to confinement measures

4.6 million of them correspond to the prepaid modality. Reductions in the customer base in Mexico (1.7 million prepaid disconnections) and Peru (1 million) were highlighted. Revenues rose 0.6%, despite a 27.2% drop in equipment sales revenue.

The impact of the health crisis is evident throughout the breakdown of América Móvil's results for the second quarter of 2020. Although revenues remained practically stable - they rose 0.6% to US$11.141 billion - they suffered a drop in 27.2% in the case of sale of terminals due to the cessation of commercial activities in most of the markets where the company operates. This was offset by a 6.5% rise in service revenues (the rise in mobile phones was 2.3%) and the expansion of fixed accesses (450,000 were added in the period).

Operating income increased 10.5% to US$1.808 billion, which contributed to a net profit of US$888 million (+39.7% year-on-year). The firm also reported a decrease in financial costs of 6.3% to US$490 million.

Between April and June, América Móvil lost 5 million mobile subscribers, highlighting prepaid disconnections in Mexico (1.7 million), Peru (1 million) and Ecuador and Guatemala (450,000 each). The operator's total fleet of mobile accesses reached 277.5 million, a variation of -0.1% compared to June 2019 and -1.8% compared to March 2020.

In the fixed segment, the IGUs totaled 80.9 million, a decrease of 1.2% compared to the second quarter of last year. There were notable increases in Argentina, Paraguay and Uruguay (38.3%), Ecuador (11.1%) and Peru (10.9%).

All the operations showed extensions in fixed accesses (except Telekom Austria), although Brazil showed significant disconnections from pay TV (190,000).

Last news and analysis

Estados Unidos · Software and Applications

27/03/2024

25% of advertisers' budget invested in social networks and the Internet

Uruguay · Pay TV · Internet & OTT · Operators

27/03/2024

Through agreements with Claro and Movistar, cable operators expand their Internet offer

These are agreements of different types, which include leaving the last mile for the cable operator or contracts for available bandwidth. Antel could join with infrastructure leasing. Some cable operators are already building their own networks.

Uruguay · Pay TV · Internet & OTT · Operators

27/03/2024

Through agreements with Claro and Movistar, cable operators expand their Internet offer

These are agreements of different types, which include leaving the last mile for the cable operator or contracts for available bandwidth. Antel could join with infrastructure leasing. Some cable operators are already building their own networks.

Paraguay · Operators

26/03/2024

Government analyzes partial privatization of Copaco

The state operator is going through a delicate moment. Its income does not cover operating expenses and it must fulfil a debt obligation of US$110 million. Furthermore, the lack of investments led to the obsolescence of its infrastructure. Oscar Stark, president of the firm, states that alternatives are being evaluated to obtain the necessary funds, including the possibility of adding private partners. And he believes that in 18 months "the situation will be resolved."

América Latina · Equipment Providers and Network Solutions

25/03/2024

Andina Link 2024: Padtec targets small and medium-sized ISPs in Colombia

The Brazilian supplier Padtec participated in Andina Link 2024. From the fair, Hernán Yepes, CALA Norte Regional Manager, told Convergencialatina about the plans with the Colombian market, shaken by 5G deployment.

Search news