America Movil reports a rise in net profit of Q2 despite sluggish subscriber growth (Mexico)

www.WirelessFederation.com/news: America Movil (AM) has posted a rise in net profit for the three-month period ended 30 June 2009, despite a downfall in subscriber growth. The company reported a net income of MXN22.5 billion (USD1.69 billion) in correspond to MXN17.7 billion a year ago, while revenue mounted 11.2% year-on-year to MXN94 billion. AM also said that service revenue increased by 15.9% compared to 2Q 2008, which it attributed to strong data revenue growth. Earnings before interest, tax, depreciation and amortisation (EBITDA) were MXN39.3 billion, a 13.4% annual increase. In 2Q 2009 AM reported that it had added 3.7 million subscribers, compared to 6.1 million a year earlier.

The sluggish growth of subscriber base is driven by slowing growth to an industry-wide slowdown, noting however that one positive it had seen from fewer additions was that subscriber acquisition costs had fallen.