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America Movil Sab De Cv (AMX) SEC Filing 6-K Foreign Issuer report for the period ending Saturday, March 31, 2018

America Movil Sab De Cv

CIK: 1129137 Ticker: AMX


SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
 
For the month of February, 2018

Commission File Number: 1-16269
 

AMÉRICA MÓVIL, S.A.B. DE C.V.
(Exact name of registrant as specified in its charter)
America Mobile
(Translation of Registrant´s name into English)
 
Lago Zurich 245
Plaza Carso / Edificio Telcel
Colonia Ampliación Granada 
Delegación 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 Form 20-F or Form 40-F. 
Form 20-F ___X___ Form 40-F _______

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):
Yes _______ No ___X____

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
Yes _______ No ___X____

Indicate by check mark whether the registrant by furnishing the information contained in this Form 6-K is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____


 
 
 

América Móvil’s fourth quarter of
2017 financial and operating report

 

Mexico City, February 13, 2018 - América Móvil, S.A.B. de C.V. (“América Móvil”) [BMV: AMX] [NYSE: AMX, AMOV], announced today its financial and operating results for the fourth quarter of 2017.

 

• Our postpaid wireless subscriber base posted a solid increase of 6.4% year-on-year after net additions of 1.7 million in the quarter, including one million in Brazil and 206 thousand in Mexico. On the fixed-line platform broadband accesses were up 4.2% year-on-year after adding 321 thousand accesses in the quarter.

 

• Fourth quarter revenues of 264 billion pesos were down 2.0% in Mexican peso terms on account of FX movements, but at constant exchange rates they actually rose 0.5% with service revenues up 1.4%. 

 

• Service revenue growth was driven by postpaid revenues, up 9.5%; prepaid data, up 9.7% and fixed-broadband revenues that rose 5.8%. Mobile ARPUs rose practically across the board driven by strong data revenue growth.

 

• EBITDA totaled 70.2 billion pesos; it was up 6.8% in Mexican peso terms and 9.8% at constant exchange rates. South America and Mexico have shown great improvements with EBITDA rising 13.5% in each segment, at constant exchange rates. Most operations posted an increase in their EBITDA margin from a year before.

 

• Fourth quarter figures were affected by a major revenue loss in Puerto Rico in the aftermath of hurricane Maria that hit the island in September. Excluding this operation, our consolidated service revenues would have been 1.9% higher than a year before and EBITDA would have risen 12.0% (at constant exchange rates).

 

• We posted a comprehensive financing cost of 37.3 billion pesos in the quarter, almost wholly determined by foreign exchange losses arising from the depreciation during the quarter of the Mexican peso vs. the U.S. dollar and the euro.

 

• Our operating profit came in at 28.6 billion pesos, having increased 10.9% from the year-earlier quarter. However, after financing costs we posted a net loss of 11.3 billion pesos in the quarter. 

 

• Our cash flow enabled us to cover capital expenditures of 136.7 billion pesos and shareholder distributions (share buybacks and dividends paid out, net of dividends received from KPN) of 15.0 billion pesos and to reduce our net debt by 47.9 billion pesos throughout the year to 614.5 billion pesos (equivalent to 2.0 times LTM EBITDA).

 

 

 


 
 

 

América Móvil’s Subsidiaries as of December 2017
Country  Brand  Business  Equity 
      Participation 
Mexico  Telcel  wireless  100.0% 
  Telmex  wireline  98.8% 
  Sección Amarilla (1)  other  98.4% 
  Telvista  other  90.0% 
Argentina  Claro  wireless  100.0% 
  Telmex  wireline  99.7% 
Brazil  Claro  wireless/wireline  97.7% 
Chile  Claro  wireless  100.0% 
  Telmex(1)  wireline  100.0% 
Colombia  Claro  wireless  99.4% 
  Telmex  wireline  99.3% 
Costa Rica  Claro  wireless  100.0% 
Dominicana  Claro  wireless/wireline  100.0% 
Ecuador  Claro  wireless/wireline  100.0% 
El Salvador  Claro  wireless/wireline  95.8% 
Guatemala  Claro  wireless/wireline  99.3% 
Honduras  Claro  wireless/wireline  100.0% 
Nicaragua  Claro  wireless/wireline  99.6% 
Panama  Claro  wireless/wireline  100.0% 
Paraguay  Claro  wireless/wireline  100.0% 
Peru  Claro  wireless/wireline  100.0% 
Puerto Rico  Claro  wireless/wireline  100.0% 
Uruguay  Claro  wireless/wireline  100.0% 
USA  Tracfone  wireless  100.0% 
Netherlands  KPN  wireless/wireline  21.1% 
Austria  Telekom Austria  wireless/wireline  51.0% 
(1) Equity Participation of Telmex Internacional of which América Móvil owns 97.90%.

 

 

Relevant Events

 

On November 13th, we made the second and final installment of our dividend payment of 30 Mexican peso cents per share corresponding to the year 2016. The second installment totaled 9.5 billion pesos in cash and 16.9 million series L shares, equivalent to 2.9% of the eligible shares.

 

On November 30th, we announced we had entered into an agreement with the International Olympic Committee for the broadcast and exhibition rights for all countries in Latin America, except for Brazil, of the Summer and Winter Olympic Games for the period 2018-2024.

 


 
 

 

América Móvil Fundamentals (IFRS)     
  4Q17  4Q16 
Earnings per Share (Mex$) (1)  -0.17  -0.09 
Earning per ADR (US$) (2)  -0.18  -0.09 
EBITDA per Share (Mex$) (3)  1.06  1.00 
EBITDA per ADR (US$)  1.12  1.01 
Net Income (millions of Mex$)  -11,295  -5,972 
Average Shares Outstanding (billion)  66.07  65.66 

(1) Net Income / Average Shares Outstanding

(2) 20 shares per ADR

(3) EBITDA / Average Shares Outstanding

 

Access Lines

 

We ended 2017 with 362 million accesses, slightly less than a year before, with our mobile postpaid and fixed-broadband accesses increasing 6.4% and 4.2%, and mobile prepaid and PayTV accesses falling by approximately 2.6% each. In fixed voice we lost 1.9% of our accesses as clients moved to triple play packages or to postpaid mobile services.

 

In mobile postpaid we added 1.7 million subscribers in the fourth quarter—one million in Brazil and 206 thousand in Mexico and 109 thousand in Austria—to finish the year with 70.6 million subs.  Our postpaid net adds surpassed those of the year-earlier quarter by 26.6%. In fixed broadband we gained 321 thousand clients in the quarter.

 

 

Wireless Subscribers as of December 2017   Total(1) (Thousands)
Country  Dec ’17  Sep ’17  Var.%  Dec ’16  Var.% 
Argentina, Paraguay and Uruguay  24,091  24,000  0.4%  23,749  1.4% 
Austria & CEE  20,658  20,828  -0.8%  20,708  -0.2% 
Brazil  59,022  60,398  -2.3%  60,171  -1.9% 
Central America  15,927  15,653  1.7%  15,085  5.6% 
Caribbean  5,637  5,583  1.0%  5,453  3.4% 
Chile  6,985  6,880  1.5%  6,628  5.4% 
Colombia  29,353  29,112  0.8%  28,954  1.4% 
Ecuador  7,960  8,612  -7.6%  8,727  -8.8% 
Mexico  73,855  73,315  0.7%  72,953  1.2% 
Peru  12,392  12,238  1.3%  12,075  2.6% 
USA  23,132  23,743  -2.6%  26,070  -11.3% 
Total Wireless Lines  279,013  280,363  -0.5%  280,572  -0.6% 
(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 December 2017   Total(1) (Thousands)
Country  Dec ’17  Sep ’17  Var.%  Dec ’16  Var.% 
Argentina, Paraguay and Uruguay  670  663  1.0%  618  8.3% 
Austria & CEE  6,036  6,015  0.4%  5,900  2.3% 
Brazil  35,904  35,962  -0.2%  36,717  -2.2% 
Central America  5,811  5,698  2.0%  5,392  7.8% 
Caribbean  2,700  2,721  -0.8%  2,663  1.4% 
Chile  1,354  1,353  0.0%  1,324  2.2% 
Colombia  6,753  6,679  1.1%  6,304  7.1% 
Ecuador  367  362  1.3%  352  4.3% 
Mexico  21,851  21,857  0.0%  22,178  -1.5% 
Peru  1,398  1,408  -0.7%  1,468  -4.8% 
Total RGUs  82,844  82,719  0.2%  82,915  -0.1% 
(1) Fixed Line, Broadband and Television (Cable & DTH).

 

 

América Móvil Consolidated Results

 

The last quarter of 2017 ended on a strong note, with inflation seemingly well contained and economic growth speeding up in most of the world, both in developed and in emerging countries. With commodity prices firming up, several Latin American countries found new stimulus for expansion, particularly in Brazil that is recovering from a long and protracted recession. In Central and Eastern Europe the region stood to benefit from the overall economic recovery in Western Europe that has been remarkably strong in bordering countries such as Germany and Austria.

 

The positive economic momentum had us posting good revenue and EBITDA growth very much across the board, with data services leading the way on both the mobile and the fixed-line platforms; mobile ARPUs rose practically everywhere beefed up by data revenues. The investments we made over the last several years on convergence, including the deployment of fiber optic and the expansion of our 4G footprint, have provided us with the fastest data networks in our region. That gives us a competitive edge on our main business segments,  which in most countries has helped us strengthen our position.

 

Our revenues totaled 264 billion pesos in the fourth quarter. They were down 2.0% in Mexican peso terms on account of foreign exchange rate movements; at constant exchange rates, however, revenues were up 0.5%, with service revenues rising 1.4%. Service revenue growth was driven by postpaid revenues, up 9.5%; prepaid data, up 9.7% and fixed-broadband revenues that rose 5.8%. 

 

By regions, the most dynamic one was the South American block, with service revenue growth of 4.5% (at constant exchange rates) followed by Mexico, with 3.3%. 

 

Fourth quarter EBITDA totaled 70.2 billion pesos; it was up 6.8% in Mexican peso terms and 9.8% at constant exchange rates, compared to 1.3% in the prior quarter (not including the Colombia ruling), when EBITDA was hit by the natural disasters in Mexico and Puerto Rico. In South America EBITDA rose 13.5% at constant exchange rates, followed by Mexico with 13.5% and Central America with 7.8%.

 

EBITDA margins were up in most of our operations with Mexico’s increasing by 4.1 percentage points, Brazil’s by 2.9, Ecuador’s by 3.9 and Peru’s by 6.5.

 


 
 

 

Our consolidated figures reflect the major loss of revenues in Puerto Rico, -16.1% year-on-year, in the aftermath of the hurricane that battered the island in September. The revenue decline, mostly to do with the lack of electrical power throughout the island and its impact on fixed-line telephony, resulted in an even greater drag on consolidated EBITDA, as that operation’s EBITDA margin plummeted to -3.5% in the fourth quarter from 21.6% in the second one.

 

Excluding Puerto Rico, our consolidated service revenues expanded 1.9% year-on-year and our EBITDA 12.0%. Our operating profit came in at 28.6 billion pesos, having increased 10.9% from the year-earlier quarter. Relative to total revenues, it rose from 9.6% a year before to 10.8%.

 

América Móvil’s Income Statement (IFRS) Millions of Mexican pesos
  4Q17  4Q16  Var.%  Jan-Dec 17  Jan-Dec 16  Var.% 
Service Revenues  220,920  223,513  -1.2%  878,411  831,885  5.6% 
Equipment Revenues  42,939  45,821  -6.3%  143,222  143,527  -0.2% 
Total Revenues  263,859  269,335  -2.0%  1,021,634  975,412  4.7% 
Cost of Service  81,854  86,042  -4.9%  327,745  314,580  4.2% 
Cost of Equipment  49,540  53,158  -6.8%  170,154  172,495  -1.4% 
Selling, General & Administrative Expenses  59,718  62,499  -4.5%  238,883  225,866  5.8% 
Others  2,594  1,960  32.4%  7,549  6,350  18.9% 
Total Costs and Expenses  193,706  203,659  -4.9%  744,332  719,291  3.5% 
Adjusted EBITDA*  70,153  65,676  6.8%  277,302  256,122  8.3% 
% of Total Revenues  26.6%  24.4%    27.1%  26.3%   
Depreciation & Amortization  41,592  39,923  4.2%  158,612  146,511  8.3% 
Adjusted EBIT*  28,560  25,752  10.9%  118,690  109,610  8.3% 
% of Total Revenues  10.8%  9.6%    11.6%  11.2%   
Net Interest Expense  7,080  7,466  -5.2%  27,375  29,669  -7.7% 
Other Financial Expenses  -6,995  4,339  -261.2%  1,944  16,226  -88.0% 
Foreign Exchange Loss  37,244  16,407  127.0%  13,819  40,427  -65.8% 
Comprehensive Financing Cost (Income)  37,329  28,212  32.3%  43,138  86,323  -50.0% 
Income & Deferred Taxes  1,485  2,654  -44.0%  30,691  11,399  169.2% 
Net Income before Minority             
Interest and Equity Participation in Results  -10,254  -5,114  -100.5%  44,861  11,889  277.3% 
of Affiliates             
Equity Participation in Results of Affiliates  10  55  -81.3%  91  190  -51.9% 
Minority Interest  326  -914  135.7%  -2,829  -3,429  17.5% 
Adjusted Net Income (Loss)  -9,917  -5,972  -66.0%  42,123  8,649  387.0% 
Net Income (Loss)  -11,295  -5,972  -89.1%  29,326  8,649  239.1% 

* Adjusted EBITDA and EBIT do not include the expense item associated with the arbitrage ruling in Colombia. For more details please visit https://www.bmv.com.mx/en/issuers/financialinformation/AMX-6024-CGEN_CAPIT 

 

 

We posted a comprehensive financing cost of 37.3 billion pesos in the quarter, almost wholly determined by foreign exchange losses arising from the depreciation of the Mexican peso vs. the U.S. dollar and the euro in the quarter; a year before, comprehensive financing costs had totaled 28.2 billion pesos. For the full year 2017 our comprehensive financing costs were down 50% from the year before, to 43.1 billion pesos.


 
 

 

We had a net loss of 11.3 billion pesos in the fourth quarter, but a net profit of 29.3 billion pesos for the full year.

 

Balance Sheet (in accordance with IFRS) - América Móvil Consolidated Millions of Mexican Pesos
  Dec '17  Dec '16  Var.%      Dec '17  Dec '16  Var.% 
Current Assets          Current Liabilities       
Cash, Marketable                 
Securities & Other Short  83,391  78,076  6.8%    Short Term Debt*  51,746  82,607  -37.4% 
Term Ivestments                 
Accounts Receivable  201,814  206,684  -2.4%    Accounts Payable  291,029  321,881  -9.6% 
Other Current Assets  18,221  20,279  -10.1%    Other Current Liabilities  70,562  65,515  7.7% 
Inventories  38,810  36,871  5.3%      413,336  470,003  -12.1% 
  342,235  341,909  0.1%           
 
Non Current Assets          Non Current Liabilities       
Plant & Equipment  676,343  701,190  -3.5%    Long Term Debt  646,139  625,194  3.4% 
Investments in Affiliates  3,735  3,603  3.7%    Other Liabilities  166,103  148,821  11.6% 
            812,242  774,015  4.9% 
Deferred Assets                 
Goodwill (Net)  151,463  152,633  -0.8%           
Intangible Assets  123,242  128,598  -4.2%    Shareholder's Equity  260,634  271,024  -3.8% 
Deferred Assets  189,193  187,109  1.1%           
 
Total Assets  1,486,212  1,515,042  -1.9%    Total Liabilities 
and Equity 
1,486,212  1,515,042  -1.9% 
*Includes current portion of Long Term Debt.

 

 

Our net debt was down by 15.2 billion pesos in 2017 to 614.5 billion pesos. This figure reflects the flow reduction in net debt of 47.9 billion pesos throughout the year; the Colombian ruling in July that added 18.5 billion pesos to our debt (a ruling that is being reviewed in an arbitration court); and the impact of foreign exchange variations (in Mexican peso terms) on our balance sheet.

 

Our cash flow enabled us to cover capital expenditures of 136.7 billion pesos and shareholder distributions (share buybacks and dividends paid out, net of dividends received from KPN) of 15.0 billion pesos. We acquired ownership interests in some companies investing 6.7 billion pesos and contributed 14.8 billion pesos to the reduction of outstanding pension liabilities.

 


 
 

 

Financial Debt of América Móvil* Millions
  Dec -17  Dec -16 
Peso - denominated debt (MxP)  83,192  87,527 
Bonds and other securities  70,692  72,416 
Banks and others  12,500  15,111 
U.S. Dollar - denominated debt (USD)  10,084  10,656 
Bonds and other securities  9,353  9,936 
Banks and others  732  720 
Euro - denominated Debt (EUR)  12,564  13,867 
Bonds and other securities  12,564  13,845 
Banks and others  0  23 
Sterling - denominated Debt (GBP)  2,750  2,750 
Bonds and other securities  2,750  2,750 
Reais - denominated Debt (BRL)  4,234  545 
Bonds and other securities  3,500  0 
Banks and others  734  545 
Debt denominated in other currencies (MxP)  17,864  23,195 
Bonds and other securities  17,765  23,069 
Banks and others  99  126 
Total Debt (MxP)  697,885  707,801 
Cash, Marketable Securities and Short Term Financial  83,391  78,076 
Investments (MxP)     
Net Debt (MxP)  614,494  629,726 
* This table does not include the effect of forwards and derivatives used to hedge the foreign exchange exposure. The debt figures include the face value amount of the outstanding América Móvil hybrid bonds (1,450M euros and 550M sterling), but do not include the TKA hybrid bond (600M euros). 

 

Mexico

 

We added 206 thousand postpaid and 335 thousand prepaid subscribers in the fourth quarter to finish the year with 73.9 million wireless clients in Mexico, with our postpaid base rising 6.2% and our prepaid base roughly flat relative to the prior year. On the fixed-line platform we added 35 thousand broadband clients in the quarter to end the year with 9.3 million.

 

Our revenues of 72 billion pesos were similar to those of the year-earlier quarter, but service revenues increased 3.3% on the back of mobile service revenues that were up 8.3%. Prepaid data revenues have made an important contribution to revenue growth, with an 18.9% increase. Our blended mobile ARPU was up 7.2% year-on-year, marking its third consecutive quarterly increase. MBOUs rose 65% year-on-year, while MOUs increased 6.0% to 494 minutes, the highest level in Latin America.

 

On the fixed-line platform service revenues were off 3.5% mostly on account of the slide that has been taking place over the last two or three quarters in international long distance and interconnection revenues, - 29.5%, and -21.5% respectively.

 

Mexican EBITDA soared 13.5% from the year-earlier quarter to 23.1 billion pesos. Relative to revenues, the EBITDA margin jumped from 28.0% in the last quarter of 2016 to 32.1% in the fourth quarter, helped along by reductions in subscriber acquisition costs.

 

Conversations have continued with the regulator (IFT) regarding the functional separation of Telmex and Telnor, through which certain elements of their local access network and passive infrastructure will be transferred into a separate entity to make them available for other operators to use on a wholesale basis. We currently expect that during March 2018, IFT will issue the final terms and conditions applicable to the functional separation in order to start the implementation process.


 
 

 

 

INCOME STATEMENT (IFRS) - Mexico Millions of MxP
  4Q17  4Q16  Var.%  Jan - Dec 17  Jan - Dec 16  Var.% 
Total Revenues  72,036  72,722  -0.9%  267,586  269,136  -0.6% 
Total Service Revenues  51,921  50,256  3.3%  202,980  200,568  1.2% 
Wireless Revenues  49,781  49,364  0.8%  177,868  175,794  1.2% 
Service Revenues  31,225  28,824  8.3%  119,973  114,096  5.2% 
Equipment Revenues  18,500  20,370  -9.2%  57,374  60,449  -5.1% 
Fixed Line and Other Revenues  24,104  25,527  -5.6%  97,174  101,012  -3.8% 
EBITDA  23,097  20,347  13.5%  84,996  85,727  -0.9% 
% total revenues  32.1%  28.0%    31.8%  31.9%   
EBIT  15,535  13,121  18.4%  55,195  58,500  -5.6% 
%  21.6%  18.0%    20.6%  21.7%   
*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. 

 

 

Mexico Operating Data (IFRS)       
  4Q17  4Q16  Var.% 
Wireless Subscribers (thousands)  73,855  72,953  1.2% 
Postpaid  12,766  12,015  6.2% 
Prepaid  61,090  60,938  0.2% 
MOU  494  466  6.0% 
ARPU (MxP)  142  132  7.2% 
Churn (%)  4.5%  4.9%  (0.4) 
Revenue Generating Units (RGUs) *  21,851  22,178  -1.5% 
Fixed Lines  12,584  12,949  -2.8% 
Broadband  9,267  9,229  0.4% 
* Fixed Line and Broadband.

 

Argentina, Paraguay and Uruguay

 

We finished the quarter with 24.1 million mobile clients and 670 thousand fixed-line RGUs, up 1.4% and 8.3% respectively from the year-earlier quarter, as PayTV accesses expanded 15.1% in Paraguay.

 

Our revenues rose 25.7% to 13.9 billion Argentinean pesos, with service revenue growing to 30.9% as mobile data revenues soared 59.2%. On the fixed-line platform revenues rose 17.0% with PayTV revenues expanding over 45%, albeit from a small base.

 

EBITDA was up 30% to 4.6 billion Argentinean pesos. The EBITDA margin stood at 32.8%, 1.1 percentage points more than a year before.

 

We have obtained the necessary regulatory approvals to begin selling PayTV in Argentina in 2018. We are committed to build an important number of homes passed to strengthen our fixed business in the country.

 

In Paraguay we were granted the use of 20MHz in the 700 MHz band in a public auction last December.

 

 


 
 

 

 

INCOME STATEMENT (IFRS) - Argentina, Paraguay & Uruguay Millions of ARP
  4Q17  4Q16  Var.%  Jan - Dec 17  Jan - Dec 16  Var.% 
Total Revenues  13,943  11,091  25.7%  49,700  39,869  24.7% 
Total Service Revenues  11,058  8,445  30.9%  40,792  30,741  32.7% 
Wireless Revenues  13,151  10,439  26.0%  46,723  37,446  24.8% 
Service Revenues  10,259  7,770  32.0%  37,769  28,282  33.5% 
Equipment Revenues  2,885  2,647  9.0%  8,908  9,128  -2.4% 
Fixed Line and Other Revenues  864  739  17.0%  3,242  2,710  19.6% 
EBITDA  4,569  3,514  30.0%  17,188  13,343  28.8% 
% total revenues  32.8%  31.7%    34.6%  33.5%   
EBIT  3,518  2,660  32.2%  13,341  10,281  29.8% 
%  25.2%  24.0%    26.8%  25.8%   
*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. 

 

 

Argentina, Paraguay & Uruguay Operating Data (IFRS)
  4Q17  4Q16  Var.% 
Wireless Subscribers (thousands)  24,091  23,749  1.4% 
Postpaid  2,394  2,454  -2.4% 
Prepaid  21,697  21,295  1.9% 
MOU  86  97  -12.1% 
ARPU (ARP)  140  111  26.7% 
Churn (%)  2.0%  2.0%  0.1 
Revenue Generating Units (RGUs) *  670  618  8.3% 
* Fixed Line, Broadband and Television.

 

 

 

Brazil

 

In the fourth quarter we added almost one million postpaid clients—our postpaid base was up 11.1% year-on-year—and disconnected 2.4 million prepaid subscribers to finish the year with just over 59 million wireless subscribers. Over the last quarters we have consistently increased our share of postpaid net adds in the market, nearly doubling it to 32% in the fourth quarter from the year-earlier quarter on the back of our new commercial plans that provide unlimited voice in all segments; the fastest mobile internet connections; and a major investment program to modernize and expand network coverage. We are currently the only mobile operator in the country delivering 4.5G services—which provides speeds up to 10x faster than regular 4G.

 

Fixed RGUs, almost 36 million, were down 2.2% after net disconnections of 170 thousand PayTV units, but broadband accesses continued to grow at a healthy pace—we connected 130 thousand accesses in the quarter and led the market growth in 2017, sustaining our leading position. It is important to note that in the “ultrabroadband” segment, we are the leader with over two million accesses thanks to our advanced fiber network capillarity that can deliver speeds of more than 34 Mbps.

 

Our revenues, 8.9 billion reais, were up 0.8% from the year-earlier quarter, with mobile service revenues rising 7.8% on the back of very strong data-revenue growth—42.3% in the quarter—which contributed greatly to the 10.2% increase in our mobile ARPU.


 
 

 

On the fixed-line platform service revenues declined 2.7% mostly on account of falling long-distance revenues—down 19.4%— but also of PayTV revenues, down 3.3%. On the other hand, fixed-broadband revenues continued to expand, increasing 3.8% year-on-year.

 

EBITDA rose 11.6% year-on-year to 2.7 billion reais as a result of revenue improvements but also due to cost reductions in all areas of the company. The EBITDA margin expanded 2.9 percentage-points to 30.1%.

 

Claro has been changing the dynamics of the Brazilian market through innovation and constructing a unique value proposition focused on convergent solutions to connect people, households and companies. We are developing corporate solutions that combine advanced connectivity with cloud and IT, helping customers accelerate their digital transformation, lowering costs, improving time to market and creating positive impacts over their entire business.

 

 

INCOME STATEMENT (IFRS) - Brazil Millions of BrL
  4Q17  4Q16  Var.%  Jan - Dec 17  Jan - Dec 16  Var.% 
Total Revenues  8,937  8,870  0.8%  35,478  35,982  -1.4% 
Total Service Revenues  8,769  8,680  1.0%  34,864  34,959  -0.3% 
Wireless Revenues  3,051  2,842  7.3%  11,674  11,704  -0.3% 
Service Revenues  2,860  2,652  7.8%  11,017  10,689  3.1% 
Equipment Revenues  168  190  -11.5%  614  1,019  -39.7% 
Fixed Line and Other Revenues  5,887  6,029  -2.4%  23,805  24,278  -1.9% 
EBITDA  2,689  2,410  11.6%  10,130  9,554  6.0% 
% total revenues  30.1%  27.2%    28.6%  26.6%   
EBIT  577  255  126.3%  1,484  820  81.1% 
%  6.5%  2.9%    4.2%  2.3%   
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

 

 

Brazil Operating Data (IFRS)
  4Q17  4Q16  Var.% 
Wireless Subscribers (thousands)  59,022  60,171  -1.9% 
Postpaid  20,335  18,310  11.1% 
Prepaid  38,687  41,861  -7.6% 
MOU(1)  103  96  7.3% 
ARPU (BrL)  16  14  10.2% 
Churn (%)  4.7%  5.5%  (0.8) 
Revenue Generating Units (RGUs) *  35,904  36,717  -2.2% 
* Fixed Line, Broadband and Television. (1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

 

 

Chile

 

We had nearly seven million wireless subscribers in Chile at the end of the year, 5.4% more than a year before, after adding 105 thousand subscribers in the last quarter, 70% of which were postpaid subscribers. Fixed RGUs increased 2.2% relative to the prior year, with broadband accesses rising 10.9%.

 

Revenues increased 7.2% year-on-year to reach 228 billion Chilean pesos as service revenues increased 8.0%. Mobile and fixed data revenues led the way, expanding in the period 31.8% and 20.8%, respectively. Revenues on the fixed platform account for 35% of total revenues.


 
 

 

Our constant efforts to control costs in the face of good revenue growth has allowed EBITDA to continue to expand rapidly, increasing 38.7% over the prior year to 35.1 billion Chilean pesos. The EBITDA margin, equivalent to 15.4% of revenues, was up 3.5 percentage points in the year.

 

INCOME STATEMENT (IFRS) - Chile Millions of ChPL
  4Q17  4Q16  Var.%  Jan - Dec 17  Jan - Dec 16  Var.% 
Total Revenues  227,982  212,672  7.2%  851,277  766,932  11.0% 
Total Service Revenues  191,465  177,336  8.0%  746,117  683,553  9.2% 
Wireless Revenues  154,951  144,768  7.0%  566,986  507,382  11.7% 
Service Revenues  118,429  109,537  8.1%  461,787  423,633  9.0% 
Equipment Revenues  36,516  35,337  3.3%  105,162  83,380  26.1% 
Fixed Line and Other Revenues  80,783  73,906  9.3%  313,887  282,284  11.2% 
EBITDA  35,116  25,319  38.7%  123,252  72,743  69.4% 
% total revenues  15.4%  11.9%    14.5%  9.5%   
EBIT  -19,194  -28,254  32.1%  -89,884  -139,353  35.5% 
%  -8.4%  -13.3%    -10.6%  -18.2%   

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. 

 

 

Chile Operating Data (IFRS)       
  4Q17  4Q16  Var.% 
Wireless Subscribers (thousands)  6,985  6,628  5.4% 
Postpaid  1,897  1,612  17.6% 
Prepaid  5,088  5,016  1.4% 
MOU  174  155  12.7% 
ARPU (ChP)  5,841  5,685  2.8% 
Churn (%)  5.7%  6.0%  (0.3) 
Revenue Generating Units (RGUs) *  1,354  1,324  2.2% 
* Fixed Line, Broadband and Television.

 

 

Colombia

 

We added 240 thousand wireless subscribers in the fourth quarter—of which 84 thousand were postpaid—to finish the year with 29.4 million wireless subscribers, 1.4% more than a year before. Our postpaid base increased 5.0% annually to 6.7 million contract clients. On the fixed-line side, our fixed-line RGUs were up 7.1% to 6.8 million, with land-lines and broadband accesses expanding 11.1% and 8.1%, respectively.

 

Total revenues were up 2.6% over the year to 2.9 trillion Colombian pesos. Service revenues expanded 3.6%, driven by fixed-line service revenues that increased 10.3% supported by data-services and PayTV revenue growth of 7.2% and 13.4%, respectively. We have made important investments in the fixed-line segment and our mix of revenues has changed such that fixed service revenues now account for 37% of the total. 

 

On the mobile platform service revenues were practically flat year-on-year in a very competitive market with aggressive holiday promotions.

 

EBITDA was up 5.5% vs. the year-earlier quarter to 1.2 trillion Colombian pesos; the EBITDA margin, 39.8%, was up one percentage point from a year before.

 


 
 

On December 20th, 2017, we submitted our memorial in the arbitration claim against the Republic of Colombia, initiated in August 2016, requesting compensation pursuant to the Mexico-Colombia Free Trade Agreement in relation to certain measures adopted by Colombia since August 2013, including a decision from the Colombian Constitutional Court holding that certain laws eliminating the reversion of telecommunication assets did not apply to Comcel’s concessions. As a result, the Colombian Government refused to recognize Comcel’s property rights over those assets and obligated Comcel to pay an amount equivalent to the value of said assets.

 

 

INCOME STATEMENT (IFRS) - Colombia Billions of COP
  4Q17  4Q16  Var.%  Jan - Dec 17  Jan - Dec 16  Var.% 
Total Revenues  2,918  2,844  2.6%  11,290  10,978  2.8% 
Total Service Revenues  2,300  2,220  3.6%  9,109  8,771  3.9% 
Wireless Revenues  2,118  2,116  0.1%  8,178  8,095  1.0% 
Service Revenues  1,492  1,488  0.3%  5,948  5,847  1.7% 
Equipment Revenues  609  615  -1.0%  2,152  2,177  -1.1% 
Fixed Line and Other Revenues  859  790  8.8%  3,340  3,023  10.5% 
Adjusted EBITDA*  1,163  1,102  5.5%  4,499  4,069  10.6% 
%  39.8%  38.8%    39.8%  37.1%   
Adjusted EBIT*  664  601  10.5%  2,589  2,248  15.2% 
%  22.8%  21.1%    22.9%  20.5%   

**Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. The full-year adjusted EBITDA does not include a cash payment of 3,155 billion Colombian pesos associated to the reversal of telecom assets under our concession titles

 

 

Colombia Operating Data (IFRS)       
  4Q17  4Q16  Var.% 
Wireless Subscribers* (thousands)  29,353  28,954  1.4% 
Postpaid  6,688  6,372  5.0% 
Prepaid  22,665  22,582  0.4% 
MOU(1)  202  212  -4.8% 
ARPU (COP)  16,915  17,205  -1.7% 
Churn (%)  4.7%  4.6%  0.1 
Revenue Generating Units (RGUs)**  6,753  6,304  7.1% 

* 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

** Fixed Line, Broadband and Television. (1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

 

Ecuador

 

We ended the year with nearly eight million subscribers after disconnecting 651 thousand clients in the fourth quarter, all of them prepaid. On the postpaid segment, we registered net gains of 27 thousand subscribers. Fixed RGUs were up 4.3% to 367 thousand, with broadband accesses rising 11.3%.

 

Revenues declined 9.4% to 320 million dollars, with service revenues falling 3.9% year-on-year as mobile voice revenues declined 16.5% on account of competitive pressures that have brought prices down to one dollar-cent per minute of voice. Mobile data revenues, up 9.2% year-on-year, compensated partly the impact of declining voice revenues. Fixed revenues, on their part, continued to show strong growth, rising 23.6% in the period.

 

Fourth quarter EBITDA was 143 million dollars, down 0.8% in absolute terms. Relative to revenues, the margin rose 3.9 percentage points to 44.9%.


 
 

 

INCOME STATEMENT (IFRS) - Ecuador Millions of Dollars
  4Q17  4Q16  Var.%  Jan - Dec 17  Jan - Dec 16  Var.% 
Total Revenues  320  353  -9.4%  1,311  1,438  -8.9% 
Total Service Revenues  280  291  -3.9%  1,130  1,225  -7.8% 
Wireless Revenues  299  336  -11.0%  1,228  1,366  -10.1% 
Service Revenues  260  275  -5.6%  1,052  1,157  -9.1% 
Equipment Revenues  39  60  -36.0%  176  209  -15.8% 
Fixed Line and Other Revenues  21  17  23.6%  83  72  15.3% 
EBITDA  143  145  -0.8%  522  603  -13.3% 
% total revenues  44.9%  41.0%    39.8%  41.9%   
EBIT  88  93  -4.7%  310  395  -21.4% 
%  27.7%  26.3%    23.7%  27.5%   
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

 

Ecuador Operating Data (IFRS)
  4Q17  4Q16  Var.% 
Wireless Subscribers (thousands)  7,960  8,727  -8.8% 
Postpaid  2,547  2,439  4.4% 
Prepaid  5,413  6,288  -13.9% 
MOU  353  240  46.8% 
ARPU (US$)  10  10  1.3% 
Churn (%)  7.3%  4.5%  2.8 
Revenue Generating Units (RGUs) *  367  352  4.3% 
* Fixed Line, Broadband and Television.

 

 

Peru

 

Our wireless subscriber base ended 2017 with 12.4 million subscribers, 2.6% more than a year before, after net additions of 153 thousand clients in the fourth quarter, including 76 thousand postpaid subscribers. After eight months of being net gainers form mobile number portability, in December we became the leader in portability by a difference of 28% vs. the second place. Additionally, we had 1.4 million fixed-line RGUs, a 4.8% reduction from a year before mostly due to the disconnection of land-line subscriptions.

 

The quarter’s revenues were up 0.7% to 1.4 billion soles with service revenues increasing 0.4%. Mobile service revenues grew 1.7% with mobile data revenues rising 14.7%. Wireless voice prices have fallen by 30% as we introduced unlimited calling in some of our plans.

 

EBITDA rose 43.2% annually to 307 million soles basically on the back of our cost-reduction efforts that led total costs and expenses to fall by 7.1% year-on-year. The EBITDA margin rose to 22.1% of revenues up from 15.5% in the last quarter of 2016.

 

We continue to expand the coverage of our 4G-LTE networks. In addition, in December  we won in a public bidding, a project to roll out almost 1,800 Km of fiber optic networks in 264 cities and towns. The project has a cost of 96.7 million dollars and is government sponsored. 

 

 

 

 


 
 

 

INCOME STATEMENT (IFRS) - Peru Millions of Soles
  4Q17  4Q16  Var.%  Jan - Dec 17  Jan - Dec 16  Var.% 
Total Revenues  1,389  1,379  0.7%  5,436  5,244  3.7% 
Total Service Revenues  1,180  1,175  0.4%  4,694  4,551  3.1% 
Wireless Revenues  1,177  1,162  1.2%  4,590  4,387  4.6% 
Service Revenues  960  943  1.7%  3,812  3,650  4.4% 
Equipment Revenues  209  203  2.8%  739  684  8.1% 
Fixed Line and Other Revenues  213  217  -2.0%  846  857  -1.3% 
EBITDA  307  214  43.2%  1,275  925  37.8% 
% total revenues  22.1%  15.5%    23.4%  17.6%   
EBIT  124  28  345.8%  531  222  138.7% 
%  8.9%  2.0%    9.8%  4.2%   
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

 

 

Peru Operating Data (IFRS)       
  4Q17  4Q16  Var.% 
Wireless Subscribers (thousands)  12,392  12,075  2.6% 
Postpaid  4,157  4,099  1.4% 
Prepaid  8,235  7,976  3.2% 
MOU  221  196  13.0% 
ARPU (Sol)  26  26  -0.9% 
Churn (%)  6.4%  5.8%  0.6 
Revenue Generating Units (RGUs) *  1,398  1,468  -4.8% 
* Fixed Line, Broadband and Television

 

 

Central America

 

Our Central American operations added 274 thousand mobile subscribers in the fourth quarter to finish December with 15.9 million clients. On the fixed-line platform we had 5.8 million accesses, 7.8% more than a year before; growth was driven by broadband accesses that rose 15.1%.

 

Revenues rose 4.7% year-on-year to 605 million dollars, with service revenues rising 1.5% driven by data revenues that expanded 10% on the mobile platform and 8.7% on the fixed one. Pay TV revenues were up 7.8% year-on-year.

 

EBITDA was up 7.6% year-on-year to 210 million dollars and the EBITDA margin expanded one percentage point to 34.8%.

 


 
 

 

INCOME STATEMENT (IFRS) - Central America Millions of Dollars
  4Q17  4Q16  Var.%  Jan - Dec 17  Jan - Dec 16  Var.% 
Total Revenues  605  578  4.7%  2,332  2,260  3.2% 
Total Service Revenues  541  533  1.5%  2,133  2,103  1.4% 
Wireless Revenues  408  397  2.7%  1,551  1,538  0.8% 
Service Revenues  354  350  1.0%  1,383  1,375  0.6% 
Equipment Revenues  54  44  23.2%  166  155  7.3% 
Fixed Line and Other Revenues  199  184  8.3%  791  736  7.4% 
EBITDA  210  196  7.6%  817  777  5.2% 
% total revenues  34.8%  33.8%    35.0%  34.4%   
EBIT  86  52  65.3%  305  216  41.2% 
%  14.2%  9.0%    13.1%  9.6%   
*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues. 

 

Central America Operating Data (IFRS)       
  4Q17  4Q16  Var.% 
Wireless Subscribers (thousands)  15,927  15,085  5.6% 
Postpaid  2,400  2,250  6.7% 
Prepaid  13,527  12,835  5.4% 
MOU(1)  162  162  0.1% 
ARPU (US$)  8  7  2.4% 
Churn (%)  6.8%  8.5%  (1.7) 
Revenue Generating Units (RGUs) *  5,811  5,392  7.8% 
* Fixed Line, Broadband and Television. (1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

 

Caribbean

 

We had 5.6 million wireless subscribers in the Caribbean at the end of 2017, 3.4% more a year ago. Net subscriber additions were 54 thousand, 24 thousand of them in Puerto Rico. The postpaid subscriber base increased 4.1%, mostly in the Dominican Republic, to 1.9 million. Fixed-line RGUs reached 2.7 million accesses, up 1.4% year-on-year.

 

The situation in Puerto Rico following the damage that occurred after hurricane Maria hit the island in September remains very complicated. Roughly 50% of the territory still lacks electrical power, which has made the restoration of the telecommunication services difficult. We worked rapidly to reestablish service on our networks; almost all our wireless base stations are now operating but more than half are being powered by diesel making it more expensive and complex for them to operate.  As regards our fixed-line infrastructure, around 75% of the infrastructure is operational; however, we have had to credit back the rents of clients that can’t use the service because they don’t have electricity.

 

Revenues in the Caribbean declined 9.0% year-on-year, basically because of the 16.1% revenue drop in Puerto Rico in the quarter. In the Dominican Republic, revenues were up 2.9% year-on-year on the back of data revenues that expanded 13.4% on the mobile platform and 11.6% on the fixed one. It is important to note that wireless service revenues in Puerto Rico have practically returned to their “normal” level—they were down 3% from a year before—but those on the fixed-line platform were over 40% lower than in the year-earlier quarter because of the inability of our clients to use the service given the lack of power in the island.

 

EBITDA declined 37.2% year-on-year to 100 million dollars, which is explained by the EBITDA loss of eight million dollars posted by Puerto Rico due to the important decline in revenues and extraordinary expenses related to the reconstruction and operation of our networks since the hurricane. In the Dominican Republic EBITDA rose 9.3% over the year.

 


 
 

 

INCOME STATEMENT (IFRS) - Caribbean Millions of Dollars
  4Q17  4Q16  Var.%  Jan - Dec 17  Jan - Dec 16  Var.% 
Total Revenues  448  492  -9.0%  1,847  1,954  -5.5% 
Total Service Revenues  376  427  -11.9%  1,611  1,723  -6.5% 
Wireless Revenues  277  276  0.3%  1,046  1,096  -4.5% 
Service Revenues  210  217  -2.8%  835  888  -6.0% 
Equipment Revenues  69  60  13.6%  219  211  4.0% 
Fixed Line and Other Revenues  171  216  -20.9%  801  858  -6.6% 
EBITDA  100  158  -37.2%  534  613  -13.0% 
% total revenues  22.2%  32.2%    28.9%  31.4%   
EBIT  26  95  -72.7%  256  336  -23.8% 
%  5.8%  19.4%    13.8%  17.2%   

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 

 

Caribbean Operating Data (IFRS)       
  4Q17  4Q16  Var.% 
Wireless Subscribers (thousands)  5,637  5,453  3.4% 
Postpaid  1,865  1,792  4.1% 
Prepaid  3,772  3,661  3.0% 
MOU(1)  234  280  -16.6% 
ARPU (US$)  13  13  -3.7% 
Churn (%)  3.9%  4.0%  (0.0) 
Revenue Generating Units (RGUs) *  2,700  2,663  1.4% 
* Fixed Line, Broadband and Television. (1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

 

United States

 

We finished the year with 23.1 million subscribers—11.3% less than a year before—after net disconnections of 685 thousand Safelink subscribers in the quarter and net gains of 74 thousand clients in our other brands.

 

Total revenues declined 8.3% to 1.9 billion dollars as a result of the important number of disconnections. Other brands with higher ARPU such as StraightTalk and Total Wireless registered net gains in the period so the client mix resulted in an 11.9% increase in our blended ARPU.

 

The aforementioned disconnections, aggressive competition in our segment, and a new blend of clients, brought EBITDA down 26.4% relative to last year to 176 million dollars and the EBITDA margin came in at 9.1%, down from 11.3%.

 

INCOME STATEMENT (IFRS) - United States Millions of Dollars
  4Q17  4Q16  Var.%  Jan - Dec 17  Jan - Dec 16  Var.% 
Total Revenues  1,939  2,115  -8.3%  7,843  7,533  4.1% 
Service Revenues  1,649  1,808  -8.8%  6,740  6,593  2.2% 
Equipment Revenues  289  306  -5.5%  1,101  939  17.2% 
EBITDA  176  239  -26.4%  739  627  18.0% 
% total revenues  9.1%  11.3%    9.4%  8.3%   
EBIT  145  219  -33.8%  655  570  15.0% 
%  7.5%  10.3%    8.4%  7.6%   

 


 
 

 

United States Operating Data (IFRS)       
  4Q17  4Q16  Var.% 
Wireless Subscribers (thousands)  23,132  26,070  -11.3% 
MOU  514  545  -5.7% 
ARPU (US$)  24  23  2.4% 
Churn (%)  4.6%  4.7%  (0.1) 

 

Telekom Austria Group

 

Altogether, our operations in Europe ended December with 20.7 million wireless subscribers after net disconnections of 170 thousand subscribers in Eastern Europe. However, almost every market saw a shift from prepaid to postpaid and we gained 216 thousand new contract clients—half of them in Austria—taking our base up 3.6% to 15.6 million. On the fixed line side we had just over six million clients, 2.3% more than a year before. PayTv units grew 10.7% after additions of 18 thousand, most of them in Bulgaria and Austria, and broadband accesses were up 3.3%.

 

Fourth quarter service revenues remained practically unchanged from a year before with mobile service revenues falling 2.1% and fixed service revenues rising 2.6%. 

 

In Austria, service revenues were flat relative to a year before. On the mobile side service revenues declined 2.8% as we continue to bear the pressure from the elimination of roaming charges within the EU and from the disconnection of prepaid subscribers. Fixed line service revenues however, rose 2.2% on the back of PayTV and broadband.

 

Underlying operating trends in Eastern Europe remain strong; Serbia, Belarus, Bulgaria and Croatia posted annual improvement in service revenues mostly on the back of fixed revenue growth, (except for Serbia in which we remain mobile only). In Macedonia, service revenues remained stable in spite of the decline in mobile termination rates. Slovenia was the only market that had negative underlying trends that had mostly to do with price cuts driven by aggressive competition in the mobile segment and the abolition of roaming charges.

 

The elimination of roaming charges within the EU for voice and data has resulted in very important increases in usage. In the fourth quarter, incoming voice traffic in Austria, Bulgaria, Croatia and Slovenia increased around 90% relative to 2016 while outgoing traffic rose even further. Net roaming voice traffic grew more than 1.5 times in Bulgaria, Croatia and Slovenia and nearly 50% in Austria. In Belarus, Macedonia and Serbia, traffic has remained more stable. We observed a similar effect on data. The rate of decline of roaming revenues has decelerated over the year. 

 

EBITDA was up 3.5% (proforma) to 288 million Euros and was equivalent to 25.5% of revenues, 0.4 percentage points higher than a year before as a result of restructuring charges in Austria, positive foreign exchange effects and positive one off effects in Eastern Europe.

 

 We have made important efforts to reduce costs across the board and have seen good results in several lines including maintenance costs, leased links, and outsourcing costs amongst others. On the other hand, higher subscriber acquisition and retention costs in Austria, greater operating costs associated to A1 Digital, and net roaming charges have weighed on EBITDA.  


 
 

 

INCOME STATEMENT (IFRS) - A1 Telekom Austria Group - Proforma Millions of Euros
  4Q17  4Q16  Var.%  Jan - Dec 17  Jan - Dec 16  Var.% 
Total Revenues*  1,158  1,139  1.7%  4,485  4,344  3.3% 
Total service revenues  940  941  -0.1%  3,775  3,716  1.6% 
Wireless service revenues  525  536  -2.1%  2,139  2,146  -0.3% 
Fixed-line service revenues  415  405  2.6%  1,636  1,570  4.2% 
Equipment revenues  161  141  14.2%  504  450  12.0% 
EBITDA  288  279  3.5%  1,397  1,370  2.0% 
% total revenues  25.5%  25.1%    31.9%  32.2%   
EBIT  -20  54  n.m.  444  496  -10.5% 
% total revenues  -1.8%  4.9%    10.1%  11.7%   
*Total Revenues include other operating income. For further detail please visit www.a1.group/en/investor-relations n.m Not meaningful.

 

 

A1 Telekom Austria Group Operating Data (IFRS) - Proforma     
  4Q17  4Q16  Var.% 
Wireless Subscribers (thousands)  20,658  20,708  -0.2% 
Postpaid  15,581  15,041  3.6% 
Prepaid  5,077  5,667  -10.4% 
MOU(1)  342  328  4.1% 
ARPU (Euros)  8  9  -2.2% 
Churn (%)  2.2%  2.2%  0.0 
Revenue Generating Units (RGUs) *  6,036  6,076  -0.6% 
*Fixed Line, Broadband and Television. (1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

 

 

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. 
 
Equity subscribers   Subscribers weighted by the economic interest held in each company. 
 
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. 

 

 

 


 
 

 

Exchange Rates Local Currency Units per USD
  4Q17  4Q16  Var.%  Jan - Dec 17  Jan - Dec 16  Var.% 
Mexico             
EoP  19.79  20.73  -4.6%  19.79  20.73  -4.6% 
Average  18.93  19.79  -4.4%  18.94  18.65  1.5% 
Brazil             
EoP  3.31  3.26  1.5%  3.31  3.26  1.5% 
Average  3.25  3.30  -1.5%  3.19  3.49  -8.5% 
Argentina             
EoP  18.65  15.89  17.4%  18.65  15.89  17.4% 
Average  17.56  15.47  13.5%  16.56  14.77  12.1% 
Chile             
EoP  615  669  -8.2%  615  669  -8.2% 
Average  633  665  -4.8%  649  676  -4.1% 
Colombia             
EoP  2,984  3,001  -0.6%  2,984  3,001  -0.6% 
Average  2,987  3,017  -1.0%  2,952  3,053  -3.3% 
Guatemala             
EoP  7.34  7.52  -2.4%  7.34  7.52  -2.4% 
Average  7.34  7.50  -2.2%  7.35  7.60  -3.3% 
Honduras             
EoP  23.75  23.67  0.4%  23.75  23.67  0.4% 
Average  23.69  23.40  1.2%  23.65  22.99  2.9% 
Nicaragua             
EoP  30.78  29.32  5.0%  30.78  29.32  5.0% 
Average  30.60  29.15  5.0%  30.05  28.62  5.0% 
Costa Rica             
EoP  573  561  2.0%  573  561  2.0% 
Average  571  560  2.1%  572  551  3.8% 
Peru             
EoP  3.25  3.36  -3.4%  3.25  3.36  -3.4% 
Average  3.25  3.40  -4.4%  3.26  3.38  -3.4% 
Paraguay             
EoP  5,590  5,767  -3.1%  5,590  5,767  -3.1% 
Average  5,642  5,730  -1.5%  5,618  5,671  -0.9% 
Uruguay             
EoP  28.81  29.34  -1.8%  28.81  29.34  -1.8% 
Average  29.16  28.58  2.0%  28.68  30.16  -4.9% 
Dominican Republic             
EoP  48.32  46.71  3.4%  48.32  46.71  3.4% 
Average  48.08  46.58  3.2%  47.57  46.07  3.3% 
Austria & CEE             
EoP  0.83  0.95  -12.4%  0.83  0.95  -12.4% 
Average  0.85  0.93  -8.4%  0.89  0.90  -2.0% 

 
 

 

Exchange Rates Local Currency Units per MxP
  4Q17  4Q16  Var.%  Jan - Dec 17  Jan - Dec 16  Var.% 
USA             
EoP  0.05  0.05  4.8%  0.05  0.05  4.8% 
Average  0.05  0.05  4.6%  0.05  0.05  -1.5% 
Brazil             
EoP  0.17  0.16  6.3%  0.17  0.16  6.3% 
Average  0.17  0.17  3.0%  0.17  0.19  -9.9% 
Argentina             
EoP  0.94  0.77  23.0%  0.94  0.77  23.0% 
Average  0.93  0.78  18.7%  0.87  0.79  10.4% 
Chile             
EoP  31.1  32.3  -3.8%  31.1  32.3  -3.8% 
Average  33.4  33.6  -0.5%  34.3  36.3  -5.5% 
Colombia             
EoP  151  145  4.2%  151  145  4.2% 
Average  158  152  3.5%  156  164  -4.8% 
Guatemala             
EoP  0.37  0.36  2.3%  0.37  0.36  2.3% 
Average  0.39  0.38  2.3%  0.39  0.41  -4.8% 
Honduras             
EoP  1.20  1.14  5.2%  1.20  1.14  5.2% 
Average  1.25  1.18  5.9%  1.25  1.23  1.3% 
Nicaragua             
EoP  1.56  1.41  10.0%  1.56  1.41  10.0% 
Average  1.62  1.47  9.8%  1.59  1.53  3.4% 
Costa Rica             
EoP  28.94  27.07  6.9%  28.94  27.07  6.9% 
Average  30.18  28.28  6.7%  30.21  29.54  2.3% 
Peru             
EoP  0.16  0.16  1.2%  0.16  0.16  1.2% 
Average  0.17  0.17  -0.1%  0.17  0.18  -4.9% 
Paraguay             
EoP  283  278  1.6%  283  278  1.6% 
Average  298  290  2.9%  297  304  -2.4% 
Uruguay             
EoP  1.46  1.42  2.9%  1.46  1.42  2.9% 
Average  1.54  1.44  6.7%  1.51  1.62  -6.4% 
Dominican Republic             
EoP  2.44  2.25  8.4%  2.44  2.25  8.4% 
Average  2.54  2.35  7.9%  2.51  2.47  1.7% 

 

For further information please visit our website at: www.americamovil.com

América Móvil, S.A.B. de C.V. (the “Company”) quarterly reports and all other written materials may from time to time contain forward-looking statements that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance, or achievements, and may contain words like “believe”, “anticipate”, “expect”, “envisages”, “will likely result”, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this report. In no event, neither the Company nor any of its subsidiaries, affiliates, directors, officers, agents or employees shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this document or for any consequential, special or similar damages.


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: February 14, 2018
 
 
AMÉRICA MÓVIL, S.A.B. DE C.V.
By: 
/S/ Carlos José García Moreno Elizondo

 
  Name:
Title:
Carlos José García Moreno Elizondo
Chief Financial Officer
 
 

 

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Ticker: AMX
CIK: 1129137
Form Type: 6-K Foreign Issuer Report
Accession Number: 0001292814-18-000385
Submitted to the SEC: Thu Feb 15 2018 11:03:37 AM EST
Accepted by the SEC: Thu Feb 15 2018
Period: Saturday, March 31, 2018
Industry: Telephone Communications No Radiotelephone

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