America Movil is alert: the major collapse in almost two decades

Pedro Pablo Kuczynski,
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America Movil is alert: the major collapse in almost two decades

America Movil, a telecommunications company in Mexico which operates the mobile phone company Claro in Peru and other countries in the region, lost 11.295 million pesos, about 574,53 million dollars, at the end of the fourth quarter of last year.

The reason? According to the company itself, its performance was influenced by the exchange fluctuations and a collapse of the income in Puerto Rico, after the calamitous effect of the hurricane Maria last September.

According to the experts of Reuters, this loss was virtually twice of the lost in 2016, approximately 5,971 million pesos.

However, according to a survey designed by Reuters, experts predicted that America Movil, with regional presence in Austria and East Europe, would obtain a net gain of 4.231 million pesos.

América Móvil - México

A report where it approximately detailed that the total income had a went down 2% to be at 263,859 million pesos, about 13.5 million dollars, all this because of the different exchanges, but it must be emphasized that the types of constant change increased 0.5%.

The company made the count of the lapse, an integral cost of financing of approximately 37,329 million pesos, that is to say, about 1,899.66 million dollars, which means 32.3% more than in 2016, mainly by the exchange losses that were derived from the depreciation of the Mexican peso against the dollar and euro during the trimester.

EBITDA to the rescue

The gains before taxes, interests, amortization and depreciation, indicated that it registers the pure business of the company or the operative flow of yield, EBITDA increased 6.8% interannual, closing for the period in 70,153 million pesos, around 3,570 million dollars, in the middle of better performances in South America markets and Mexico, said the text of the official document of the company.

In addition, the company commented on the information that it is waiting for the Federal Institute of Telecommunications, the regulator of this sector in the Mexican country, to pronounce during the month of March with the purpose of giving final terms for the functional separation of the subsidiaries of the fixed lines for Telmex and Telnor.

The total debt of the company by the end of last year was located in the 614,494 million pesos, approximately 31.3 million dollars, a reduction of 15,232 million pesos regarding the previous year, according to the analyses of Reuters. America Movil considers to invest near $8 billion dollars in the current year.

That’s what the CEO of the company, Daniel Hajj, commented to the press, investors and analysts in City of Mexico. Regarding the proximity of the elections in the country, the high executive indicated that he will continue investing in Mexico regardless of the elections.

Regarding the shared network, the director commented that he does not understand the model of this business but that it is a new competitor in the market and he doesn’t intend on using this network as it doesn’t offer anything new to the company that he represents.

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