America Movil eyes moderate Q4 earning growth (Latin America)
America Movil SAB is expected to report moderate growth in sales and profit for the fourth quarter of 2010 as the consolidation of sister fixed-line companies Telefonos de Mexico SAB and Telmex Internacional likely offset the more dynamic margins in mobile telephony.
America Movil had practically acquired all of Telmex Internacional and about a 60% stake in Telmex last year in a mostly stock transaction valued at about $23 billion, and began consolidating results in the third quarter.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was estimated at US$5.31 billion for the quarter, and net profit at US$2.08 billion.
America Movil likely added 6.8 million wireless subscribers in the quarter to the 216.8 million it had at the end of September, led by increases in Brazil, Mexico and the U.S.
Telmex, which plans to release its fourth-quarter earnings Thursday after the market close, is expected to report net profit of US$323.48 million on sales of US$2.73 billion, down from US$416.02 billion in net profit on sales of US$2.48 billion in the year-ago quarter.
America Movil launches tender offer for Carso & Telint
www.WirelessFederation.com/news: Carso Global Telecom and Telmex International (Telint) tender offer has been launched by America Movil and the telco has announced that a share exchange offer will be launched to the shareholders of the two companies.
America Movil will get an indirect 59.4 percent stake in fixed-line operator Telefonos de Mexico (Telmex) and 60.7 percent in Telmex Internacional through the share swap. MXN 11.66 in cash or 0.373 AMX L shares for each series L share or series A share tendered has been offered by America Movil and it has offered MXN 233.20 in cash or 0.373 AMX L ADSs for each Telmex Internacional ADS tendered.
America Movil is also offering 2.0474 AMX L Shares for each Carso share tendered, and 0.20474 AMX ADSs for each Carso ADS tendered.
America Movil, Telmex plan $880m investment in Peru
www.WirelessFederation.com/news: An investment of $880 million in infrastructure in Peru has been planned by wireless operator America Movil and fixed-line company Telmex Internacional, both controlled by Carlos Slim, through 2012. America Movil will invest a total $500 million, while Telmex will invest an additional $380 million and the entire investment will be carried out over three years.
Head of America Movil’s Peruvian unit, Humberto Chavez made the announcement during the inauguration of a new $110 million, 3,200-kilometer (1,990-mile) fiber-optic network that runs the entire length of Peru’s Pacific coast.
Peruvian President Alan Garcia attended the inauguration ceremony in which construction of America Movil’s corporate headquarters in Lima was also launched.
America Movil entered Peru in the year 2005 under the brand name Claro while Telmex Peru has already installed three ducts for the fiber-optic cable.
Telmex Internacional revenue rises 32.1% (Brazil)
www.WirelessFederation.com/news: The fourth quarter revenue of South American fixed-line operator Telmex Internacional has been reported which went up 32.1 percent to reach MXN 25.722 billion. Revenue increased 14.2 percent in Argentina, 7.2 percent in Brazil, 24.9 percent in Chile, 12.8 percent in Colombia and 5.3 percent in Peru.
With 21.8 percent increase, the revenue-generating units of the company reached 18.5 million at the end of 2009. The growth has been attributed to the Brazilian unit Embratel. With 47.3 percent increase, EBITDA for the quarter totaled MXN 6.371 billion.
An investment of USD 1.164 billion over all of 2009 was made by the Mexico-based operator, mainly in Brazil and Colombia.
Telmex to spin-off, list Latin America operations (Mexico)
Mexico-based operator Telmex has decided to spin off its Latin American and directories businesses into a separate company. The new company Telmex Internacional will be listed on the stock market in the US and Mexico. The move is expected to allow its domestic business in Mexico to further tailor its activities to focus on different market segments, as well as give each company a more competitive financial position. The proposed spin-off will be subject to approval by shareholders. In Mexico, the company also plans to divide its activities into two distint operations, one focused on competitive markets where it has around 9.8 million lines in service, and one focused on monopoly rural markets, where it has 8.3 million lines. A new business unit will be set up to manage operations and marketing at the loss-making rural activities, “in order to address their particular needs and monitor their development”.
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