07/16/2021 | Press release | Distributed by Public on 07/16/2021 04:02
Carlos Garcĺa-Moreno Chief Financial Officer Daniela Lecuona Torras Investor Relations Office |
América Móvil's second quarter of 2021 financial and operating report |
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Mexico City, July 13th, 2021 - América Móvil, S.A.B. de C.V. ('América Móvil') [BMV: AMX] [NYSE: AMX, AMOV], announced today its financial and operating results for the second quarter of 2021. |
2Q21 | |
• We added 4.2 million wireless subscribers in the second quarter, more than 2.0 million were postpaid subscibers. Brazil accounted for 1.1 million postpaid net adds. |
4.2M wireless net adds | |
• On the fixed-line platform we added 128 thousand broadband accesses. All in all, we had net RGU disconnections of 132 thousand accesses. |
128k new broadband clients | |
• Second quarter revenues, 253 billion pesos, were slightly higher than in the year-earlier quarter in nominal peso terms. At constant exchange rates, service revenue increased 5.3% year-on-year and 1.8% over the quarter. |
Service revenues +5.3% YoY at constant Fx |
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• Mobile and fixed-line service revenue were up both on an annual basis and sequential basis at constant exchange rates. In the case of mobile, the increases were 7.2% and 2.2%, respectively; in the case of fixed-line, 1.5% and 0.6%, respectively. The expansion of mobile service revenues was driven by prepaid services, up 9.5% and 3.7%, respectively. |
Mobile & fixed service revenues were up on an annual & sequential basis | |
• EBITDA came in at 84.9 billion pesos, a 2.8% increase in nominal peso terms from the year-earlier quarter. At constant exchange rates it increased 11.9%. However, adjusted for carrier discounts from Tracfone obtained then, EBITDA showed a strong performance, rising 14.6%. |
Adjusted EBITDA +15% YoY at constant Fx | |
• Our 44.7 billion pesos operating profit was up 9.3% in nominal peso terms. At constant exchange rates, correcting for the carrier discounts referred to above, the annual increase in our operating profit would have been 23.7%. |
Operating profit up 9.3% YoY |
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• We obtained a comprehensive financing income in the amount of 17.2 billion pesos on the back of foreign exchange gains. It helped bring about a net profit for the quarter of 42.8 billion pesos that more than doubled that of the year-earlier quarter. |
Net profit of MxP 43Bn pesos | |
• Our operating cash flow allowed us to fund capital expenditures in the amount of 57.4 billion pesos in the six months to June, reduce debt in the amount of 36.9 billion pesos and buy back shares in the amount of 11.0 billion pesos. |
CapEx of MxP 57Bn pesos | |
• We bought back 765.1 million shares, more than any amount repurchased in each of the last six years. |
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• At the end of June, our net debt stood at 591 billion pesos including 103 billion in capitalized leases; it was equivalent to 1.64 times LTM EBITDA under IAS 17. |
Net debt to EBITDA at 1.64x | |
We will host our conference call to discuss 2Q21 financial and operating results on July 14th at 9:00 am Mexico City time. To access the call please log on to www.americamovil.com/investors |
page 2 |
América Móvil Fundamentals |
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2Q21 | 2Q20 | |||||
Earnings per Share (Mex$) (1) |
0.65 | 0.30 | ||||
Earning per ADR (US$) (2) |
0.64 | 0.25 | ||||
EBITDA per Share (Mex$) (3) |
1.28 | 1.25 | ||||
EBITDA per ADR (US$) |
1.28 | 1.07 | ||||
Net Income (millions of Mex$) |
42,816 | 19,500 | ||||
Average Shares Outstanding (billion) |
66.30 | 65.97 | ||||
Shares Outstanding End of Period (billion) |
66.10 | 65.94 |
(1) Net Income / Average Shares Outstanding
(2) 20 shares per ADR
(3) EBITDA / Average Shares Outstanding
América Móvil's Subsidiaries as of June 2021 |
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Country | Brand | Business |
Equity Participation |
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Mexico |
Telcel | wireless | 100.0% | |||
Telmex | wireline | 98.8% | ||||
Sección Amarilla | other | 100.0% | ||||
Telvista | other | 90.0% | ||||
Argentina |
Claro | wireless | 100.0% | |||
Telmex | wireline | 100.0% | ||||
Brazil |
Claro | wireless/wireline | 99.6% | |||
Chile |
Claro | wireless | 100.0% | |||
Telmex | wireline | 100.0% | ||||
Colombia |
Claro | wireless/wireline | 99.4% | |||
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 | 20.9% | |||
Austria |
Telekom Austria | wireless/wireline | 51.0% |
page 3 |
The reported figures for Argentina corresponding to the second quarter of 2021 are presented in accordance with a) IAS29 reflecting the effects of the adoption of inflationary accounting that became mandatory after the Argentinean economy was deemed to be hyperinflationary in the third quarter of 2018 and b) IAS21 translated to Mexican pesos using the end-of-period exchange rate. |
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All comparisons at constant exchange rates for América Móvil's consolidated figures will exclude Argentina to ensure consistency. |
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Relevant Events |
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On May 7th, we informed that a Tribunal from the International Center for Settlement of Investment Disputes ('ICSID') issued an award in the arbitration proceeding initiated in August 2016 against the Republic of Colombia pursuant to the Free Trade Agreement between Mexico and Colombia. The ICSID Tribunal held that certain measures adopted by Colombia in relation with the concessions terminated in 2013 by Comunicación Celular, S.A. (COMCEL), subsidiary of AMX, did not represent an expropriation of AMX's investments in COMCEL. |
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On May 28th we entered into a committed five-year revolving credit facility (RCF) in an amount in euros equivalent to 1.5 billion U.S. dollars, which replaced an older one. Including this one and one entered into at the level of Telekom Austria, we have three committed RCFs in place for a total amount of 5 billion U.S. dollars that are important liquidity buffers for América Móvil. For the first time, we introduced ESG metrics in the facility, which may result in improved terms in its pricing. |
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Access Lines |
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We added 4.2 million wireless subscribers in the second quarter including 1.4 million in Brazil, 870 thousand in Argentina, approximately 430 thousand in each of Mexico and Colombia and approximately 300 thousand in each of Peru and Austria. Just over half of the net adds were postpaid with Brazil accounting for 1.1 million postpaid net adds. Our postpaid subscriber base increased 10.7% and our prepaid one 5.6% year-on-year. We ended the quarter just shy of 300 million wireless subscribers. |
Postpaid base up 11% YoY | |
On the fixed-line platform we added 128 thousand broadband accesses. All in all, we disconnected 132 thousand RGUs. At the end of June we had 80.5 million RGUs. |
128k new broadband accesses |
page 4 |
Wireless Subscribers as of June 2021
Total(1)(Thousands) | ||||||||||||||||||||
Country | Jun '21 | Mar '21 | Var.% | Jun '20 | Var.% | |||||||||||||||
Argentina, Paraguay and Uruguay |
25,541 | 24,618 | 3.8% | 24,259 | 5.3% | |||||||||||||||
Austria & CEE |
22,325 | 21,932 | 1.8% | 21,208 | 5.3% | |||||||||||||||
Brazil |
67,772 | 66,337 | 2.2% | 58,520 | 15.8% | |||||||||||||||
Central America |
15,912 | 15,569 | 2.2% | 14,541 | 9.4% | |||||||||||||||
Caribbean |
6,713 | 6,562 | 2.3% | 6,087 | 10.3% | |||||||||||||||
Chile |
6,746 | 6,581 | 2.5% | 6,793 | -0.7% | |||||||||||||||
Colombia |
33,844 | 33,461 | 1.1% | 31,535 | 7.3% | |||||||||||||||
Ecuador |
8,308 | 8,104 | 2.5% | 7,878 | 5.5% | |||||||||||||||
Mexico |
78,742 | 78,311 | 0.5% | 75,378 | 4.5% | |||||||||||||||
Peru |
11,501 | 11,181 | 2.9% | 10,387 | 10.7% | |||||||||||||||
USA |
20,334 | 20,883 | -2.6% | 20,918 | -2.8% | |||||||||||||||
Total Wireless Lines |
297,737 | 293,538 | 1.4% | 277,503 | 7.3% |
(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 June 2021
Total(1) (Thousands) | ||||||||||||||||||||
Country | Jun '21 | Mar '21 | Var.% | Jun '20 | Var.% | |||||||||||||||
Argentina, Paraguay and Uruguay |
1,679 | 1,527 | 10.0% | 1,278 | 31.4% | |||||||||||||||
Austria & CEE |
6,072 | 6,079 | -0.1% | 6,105 | -0.5% | |||||||||||||||
Brazil |
31,926 | 32,273 | -1.1% | 33,260 | -4.0% | |||||||||||||||
Central America |
4,327 | 4,291 | 0.8% | 4,379 | -1.2% | |||||||||||||||
Caribbean |
2,615 | 2,586 | 1.1% | 2,509 | 4.2% | |||||||||||||||
Chile |
1,372 | 1,376 | -0.3% | 1,401 | -2.1% | |||||||||||||||
Colombia |
8,673 | 8,527 | 1.7% | 7,938 | 9.3% | |||||||||||||||
Ecuador |
493 | 476 | 3.6% | 454 | 8.5% | |||||||||||||||
Mexico |
21,536 | 21,739 | -0.9% | 21,961 | -1.9% | |||||||||||||||
Peru |
1,855 | 1,805 | 2.8% | 1,707 | 8.7% | |||||||||||||||
Total RGUs |
80,547 | 80,680 | -0.2% | 80,993 | -0.6% |
(1) Fixed Line, Broadband and Television (Cable & DTH). Central America figures have been adjusted in accordance with the methodology used for all AMX operations.
page 5 |
América Móvil Consolidated Results | ||||
As the U.S. economy recovered rapidly, signs of higher inflation towards the latter part of the second quarter created uncertainty and confusion and drove price corrections in some segments of the financial markets. The yield on three-year Treasury notes, for instance, rose 15 basis points-the equivalent of a 50% increase in yield-as the market brought forward the expected path of increases in interest rates by the Fed. In several Latin American countries inflation exceeded expectations and pushed some central banks-notably in Brazil and Mexico-to begin to hike interest rates. Foreign exchange volatility increased throughout Latin America. |
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At 253 billion pesos, our revenue was slightly higher, 0.4% than in the year-earlier quarter in nominal peso terms, with service revenue declining 4.6% and equipment revenue jumping 34.0% on the face of greater commercial activity. At constant exchange rates, service revenue actually increased 5.3% year-on-year and, importantly, was up 1.8% on a sequential basis. It is to be noted that the second quarter of 2020 was the one in which the effects of the pandemic both in terms of commercial activity and revenue were more deeply felt, so the annual comparison may be somewhat misleading. But the first quarter of 2020 was largely free of the effects of the pandemic and happens to be a good reference: in the first quarter of this year, service revenue had risen 1.2% from the prior year. |
Service revenues +5.3% YoY at constant Fx | |||
Nominal peso revenue growth turned out to be significantly lower than that at constant exchange rates due to the fact that in the reference period the Mexican peso appreciated vs. all other currencies in our operations bar none. The value of the Mexican peso rose 16.3% vs. the U.S. dollar, 6.3% vs. the euro; 14.7% vs. the Brazilian real and 12.0% vs. the Colombian peso, appreciating even more vs. the Peruvian sol, 28.6%, and the Argentinean peso, 61.6%. The above means that the revenue of our combined international operations came down in Mexican peso terms, dragging with it the total amount of nominal peso revenue. |
2Q21 Service Revenues(1) (%) |
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Mobile and fixed-line service revenues were up both on an annual basis and on a sequential basis at constant exchange rates. In the case of mobile, the |
(1) Includes Fixed-Broadband, Pay-TV and Fixed Voice in double or triple play bundles. |
Prepaid revenues up 9.5% YoY and 3.7% QoQ at constant Fx | ||
increases were 7.2% and 2.2% respectively; in the case of fixed-line, 1.5% and 0.6%. The expansion of mobile service revenues was driven by prepaid services, up 9.5% and 3.7% respectively, with postpaid service revenues expanding 4.4% and 0.5%. The high sequential increase in prepaid revenue goes to show the strength of the recovery currently underway in Mexico and the U.S., but also in Central America/Caribbean and Eastern Europe, regions where prepaid services are relatively more important. |
page 6 |
On the fixed-line platform both broadband and corporate network services also presented annual and sequential revenue increases: 7.0% and 0.9% for broadband, and 3.9% and 1.1% for corporate networks. PayTV and wireline voice were the only business lines that exhibited declines both on an annual and sequential basis, at -5.3% and -2.3%, and -6.4% and -0.9% respectively. |
Broadband & corporate network services presented annual and sequential increases |
América Móvil's Income Statement Millions of Mexican pesos
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||||
Service Revenues |
209,466 | 219,457 | -4.6% | 416,575 | 428,970 | -2.9% | ||||||||||||||||||
Equipment Revenues |
41,137 | 30,699 | 34.0% | 80,352 | 70,179 | 14.5% | ||||||||||||||||||
Total Revenues* |
252,507 | 251,583 | 0.4% | 500,693 | 501,645 | -0.2% | ||||||||||||||||||
Cost of Service |
74,807 | 77,298 | -3.2% | 149,999 | 152,774 | -1.8% | ||||||||||||||||||
Cost of Equipment |
41,232 | 35,341 | 16.7% | 81,737 | 75,729 | 7.9% | ||||||||||||||||||
Selling, General & Administrative Expenses |
50,004 | 55,142 | -9.3% | 99,434 | 110,708 | -10.2% | ||||||||||||||||||
Others |
1,517 | 1,154 | 31.5% | 2,920 | 2,199 | 32.8% | ||||||||||||||||||
Total Costs and Expenses |
167,560 | 168,935 | -0.8% | 334,090 | 341,410 | -2.1% | ||||||||||||||||||
EBITDA |
84,947 | 82,648 | 2.8% | 166,603 | 160,236 | 4.0% | ||||||||||||||||||
% of Total Revenues |
33.6% | 32.9% | 33.3% | 31.9% | ||||||||||||||||||||
Depreciation & Amortization |
40,241 | 41,740 | -3.6% | 80,750 | 80,417 | 0.4% | ||||||||||||||||||
EBIT |
44,706 | 40,908 | 9.3% | 85,853 | 79,819 | 7.6% | ||||||||||||||||||
% of Total Revenues |
17.7% | 16.3% | 17.1% | 15.9% | ||||||||||||||||||||
Net Interest Expense |
8,363 | 8,972 | -6.8% | 17,105 | 18,352 | -6.8% | ||||||||||||||||||
Other Financial Expenses |
-4,447 | 1,339 | n.m. | 6,300 | -21,753 | 129.0% | ||||||||||||||||||
Foreign Exchange Loss |
-21,077 | 1,371 | n.m. | -4,716 | 94,099 | -105.0% | ||||||||||||||||||
Comprehensive Financing Cost (Income) |
-17,161 | 11,682 | -246.9% | 18,689 | 90,698 | -79.4% | ||||||||||||||||||
Income & Deferred Taxes |
17,762 | 8,156 | 117.8% | 20,320 | -3,864 | n.m. | ||||||||||||||||||
Net Income before Minority Interest and Equity Participation in Results of Affiliates |
44,104 | 21,070 | 109.3% | 46,845 | -7,015 | n.m. | ||||||||||||||||||
Equity Participation in Results of Affiliates |
3 | -286 | 100.9% | 16 | -284 | 105.7% | ||||||||||||||||||
Minority Interest |
-1,291 | -1,284 | -0.6% | -2,235 | -2,063 | -8.3% | ||||||||||||||||||
Net Income |
42,816 | 19,500 | 119.6% | 44,626 | -9,362 | n.m. |
*Total revenues include Other Revenues.
n.m. Not meaningful.
page 7 |
Selling and marketing expenses were up 9.6% year-on-year and 2.2% quarter-over-quarter at constant exchange rates, with the cost of equipment rising 26.7% and 2.7% respectively. Bad debt provisions, for their part, plummeted 51.2% on an annual basis and -2.0% sequentially. The cost of service increased 7.3% annually principally on account of there having been some carrier discounts applied last year for the benefit of Tracfone. In the absence of these discounts the cost of service would have increased 4.7% year-on-year. |
Bad debt was down 51% YoY at constant Fx | |
Second quarter EBITDA came in at 84.9 billion pesos, a 2.8% increase in nominal peso terms from the year-earlier quarter. At constant exchange rates it increased 11.9%. However, adjusted for the carrier discounts mentioned above, EBITDA had a strong performance, increasing 14.6%. The EBITDA margin was 33.6%, a 0.8 percentage points increase from a year before in spite of the greater commercial activity. |
Adjusted EBITDA +15% YoY at constant Fx | |
Our operating profit increased 9.3% to 44.7 billion pesos. Depreciation and amortization charges held steady at 19% of service revenues, resulting-given the increase in EBITDA-in an operating profit that was up 17.9% at constant exchange rates on an annual basis and 6.2% quarter-over-quarter. Correcting for the carrier discounts referred to above, the annual increase in our operating profit would have been 23.7%. |
Adjusted operating profit +24% YoY at constant Fx |
Balance Sheet - América Móvil ConsolidatedMillions of Mexican Pesos | ||||||||||||||||||||||||||||
Jun '21 | Dec '20 | Var.% | Jun '21 | Dec '20 | Var.% | |||||||||||||||||||||||
Current Assets |
Current Liabilities | |||||||||||||||||||||||||||
Cash, Marketable Securities & Other Short Term Ivestments |
100,140 | 90,554 | 10.6% | Short Term Debt* | 117,890 | 148,083 | -20.4% | |||||||||||||||||||||
Accounts Receivable |
216,088 | 228,906 | -5.6% | Lease-Related Debt | 27,683 | 25,068 | 10.4% | |||||||||||||||||||||
Other Current Assets |
16,991 | 10,385 | 63.6% | Accounts Payable | 265,329 | 237,287 | 11.8% | |||||||||||||||||||||
Inventories |
31,699 | 30,377 | 4.4% | Other Current Liabilities | 94,515 | 96,872 | -2.4% | |||||||||||||||||||||
364,919 | 360,223 | 1.3% | 505,418 | 507,311 | -0.4% | |||||||||||||||||||||||
Non Current Assets |
Non Current Liabilities | |||||||||||||||||||||||||||
Plant & Equipment, gross |
1,368,727 | 1,355,801 | 1.0% | Long Term Debt | 470,360 | 480,300 | -2.1% | |||||||||||||||||||||
-Depreciation |
659,395 | 632,871 | 4.2% | Lease-Related Debt | 75,518 | 84,259 | -10.4% | |||||||||||||||||||||
Plant & Equipment, net |
709,332 | 722,930 | -1.9% | Other Liabilities | 239,291 | 238,061 | 0.5% | |||||||||||||||||||||
Rights of Use |
94,481 | 101,977 | -7.4% | 785,169 | 802,620 | -2.2% | ||||||||||||||||||||||
Investments in Affiliates |
1,776 | 1,830 | -2.9% | |||||||||||||||||||||||||
Deferred Assets |
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Goodwill (Net) |
140,665 | 143,053 | -1.7% | |||||||||||||||||||||||||
Intangible Assets |
128,308 | 133,457 | -3.9% | Shareholder's Equity | 316,493 | 315,118 | 0.4% | |||||||||||||||||||||
Deferred Assets |
167,599 | 161,579 | 3.7% | |||||||||||||||||||||||||
Total Assets |
1,607,080 | 1,625,048 | -1.1% | Total Liabilities and Equity | 1,607,080 | 1,625,048 | -1.1% |
Includes current portion of Long Term Debt.
page 8 |
We registered a net comprehensive income in the amount of 17.2 billion pesos, as foreign exchange gains, 21.1 billion pesos, and gains in other financial expenses, 4.4 billion pesos, more than offset our net interest expense of 8.4 billion pesos. |
Comprehensive financing income of MxP 17Bn | |
Our net profit totaled 42.8 billion pesos in the second quarter, more than doubling that of the year-earlier quarter on the back of strong EBITDA growth and our net comprehensive financing income. It was equivalent to 65 peso-cents per share or 64 dollar-cents per ADR. |
Net profit of MxP 43Bn | |
In the six months to June our operating cash flow allowed us to fund capital expenditures in the amount of 57.4 billion pesos; reduce net debt in the amount of 36.9 billion pesos and buy back shares in the amount of 11.0 billion pesos. In addition, we reduced by 5.6 billion pesos our labor obligations. |
CapEx of MxP 57Bn | |
Our share buy-backs through June, 765.1 million shares, topped those of each of the last six years. |
Largest share buy-backs in six years | |
At the end of June our net debt stood at 591 billion pesos, including 103 billion in capitalized leases. It was equivalent to 1.64 times LTM EBITDA. |
Net debt to EBITDA at 1.64x |
Financial Debt of América Móvil* Millions | ||||||||
Jun -21 | Dec -20 | |||||||
Peso - denominated debt (MxP) |
64,250 | 78,383 | ||||||
Bonds(1) |
51,450 | 51,283 | ||||||
Banks and others |
12,800 | 27,100 | ||||||
U.S. Dollar - denominated debt(USD) |
9,376 | 9,351 | ||||||
Bonds |
9,351 | 9,351 | ||||||
Banks and others |
25 | 0 | ||||||
Euro - denominated Debt (EUR) |
9,282 | 9,780 | ||||||
Bonds |
9,197 | 8,100 | ||||||
Commercial Paper |
85 | 1,680 | ||||||
Banks and others |
0 | 0 | ||||||
Sterling - denominated Debt (GBP) |
2,200 | 2,200 | ||||||
Bonds |
2,200 | 2,200 | ||||||
Reais - denominated Debt (BRL) |
7,375 | 8,475 | ||||||
Bonds |
7,375 | 8,475 | ||||||
Banks and others |
0 | 0 | ||||||
Debt denominated in other currencies(2) (MxP) |
30,920 | 32,610 | ||||||
Bonds |
6,359 | 6,590 | ||||||
Banks and others |
24,561 | 26,020 | ||||||
Total Debt (MxP) |
588,250 | 628,383 | ||||||
Cash, Marketable Securities and Short Term Financial Investments (MxP) |
100,140 | 90,554 | ||||||
Net Debt (MxP) |
488,110 | 537,829 |
* This table does not include the effect of forwards and derivatives used to hedge our foreign exchange exposure. It includes financial debt of Telekom Austria.
(1) |
Includes the effect of inflation-linked debt. |
(2) |
Includes Peruvian soles and Chilean pesos. |
page 9 |
Mexico |
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We added 430 thousand wireless subscribers in the second quarter, all of them prepaid, to finish June with 78.7 million subscribers, increasing the activation of new lines partly as a result of more availability of handsets since supply had been very limited. On the fixed-line platform we disconnected 204 thousand accesses, of which 165 thousand were land-lines. We have made significant progress in the modernization of our customer care systems, moving to an omnichannel platform for on-line services. |
430k mobile net adds | |
Revenues rose 19.7% year-on-year to 75.3 billion pesos, as equipment revenues shot up 79.8% and service revenues expanded 7.4%. Quarter-over-quarter, equipment revenues were up 16.2% while service revenues increased 2.2%. On the mobile platform service revenues climbed 11.9% on an annual basis and 3.6% on a sequential basis, driven by prepaid revenues that soared 17.7% and 5.2%, respectively. ARPU increased 7.9% and 3.3% respectively, to reach 157 pesos in the second quarter. The sequential improvements are linked to greater mobility and economic activity. |
Service revenues +7.4% YoY and +2.2% QoQ | |
On the fixed-line platform service revenues declined slightly, -0.4%, on the back of voice revenues that were down 5.3% and broadband revenues that rose 4.1%, with corporate network revenues increasing 1.6%. Streaming plans with Netflix and Disney+, as well as HBO Max have gained significant traction in the market. |
Broadband revenues +4.1% YoY | |
EBITDA jumped 20.6% from the year-earlier quarter to 29.5 billion pesos-having increased 2.4% sequentially. At 39.1%, the EBITDA margin was 0.3 percentage points higher than a year before. As for our operating profit, it totaled 21.7 billion pesos, a 30.5% increase in the year. |
EBITDA up 21% YoY and 2.4% QoQ | |
Telcel has been expanding its coverage throughout the country looking to reach more remote and marginalized areas. |
INCOME STATEMENT - MexicoMillions of MxP
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||||
Total Revenues* |
75,291 | 62,884 | 19.7% | 146,757 | 136,066 | 7.9% | ||||||||||||||||||
Total Service Revenues |
55,743 | 51,920 | 7.4% | 110,261 | 106,520 | 3.5% | ||||||||||||||||||
Total Equipment Revenues |
18,579 | 10,332 | 79.8% | 34,566 | 28,438 | 21.5% | ||||||||||||||||||
Wireless Revenues |
55,223 | 43,095 | 28.1% | 106,561 | 96,490 | 10.4% | ||||||||||||||||||
Service Revenues |
36,760 | 32,854 | 11.9% | 72,239 | 68,409 | 5.6% | ||||||||||||||||||
Equipment Revenues |
18,464 | 10,241 | 80.3% | 34,322 | 28,081 | 22.2% | ||||||||||||||||||
Fixed Line Revenues |
19,098 | 19,158 | -0.3% | 38,267 | 38,468 | -0.5% | ||||||||||||||||||
Service Revenues |
18,984 | 19,066 | -0.4% | 38,022 | 38,110 | -0.2% | ||||||||||||||||||
Equipment Revenues |
115 | 91 | 25.5% | 244 | 357 | -31.6% | ||||||||||||||||||
EBITDA |
29,450 | 24,420 | 20.6% | 58,209 | 52,191 | 11.5% | ||||||||||||||||||
% total revenues |
39.1% | 38.8% | 39.7% | 38.4% | ||||||||||||||||||||
EBIT |
21,727 | 16,655 | 30.5% | 42,784 | 36,692 | 16.6% | ||||||||||||||||||
% |
28.9% | 26.5% | 29.2% | 27.0% |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.
page 10 |
Mexico Operating Data |
||||||||||||
2Q21 | 2Q20 | Var.% | ||||||||||
Wireless Subscribers (thousands) |
78,742 | 75,378 | 4.5% | |||||||||
Postpaid |
14,556 | 14,452 | 0.7% | |||||||||
Prepaid |
64,185 | 60,926 | 5.3% | |||||||||
MOU |
546 | 537 | 1.8% | |||||||||
ARPU (MxP) |
157 | 146 | 7.9% | |||||||||
Churn (%) |
3.5% | 4.1% | (0.6) | |||||||||
Revenue Generating Units (RGUs) * |
21,536 | 21,961 | -1.9% | |||||||||
Fixed Lines |
11,582 | 12,100 | -4.3% | |||||||||
Broadband |
9,954 | 9,861 | 0.9% |
* Fixed Line and Broadband.
Argentina | ||
For comparison purposes all comments in this section related to annual variations of the presented period for Argentina refer to figures in constant peso terms, that is, adjusted for inflation in accordance to NIC 29. Information for Uruguay and Paraguay is not presented in the table. |
||
We added 777 thousand prepaid and 93 thousand postpaid wireless subscribers in the second quarter. It was the strongest performance in commercial activities in well over a year, particularly regarding prepaid. We are focused on reducing mobile churn by improving the customer experience, delivering on quality and speed as well as customer care. We are enhancing our digital channels to be closer to our clients. |
777k prepaid netadds | |
On the fixed-line platform we connected 62 thousand broadband accesses, 20 thousand PayTV clients and 59 thousand landlines, for a total of 141 thousand fixed-line RGUs. |
We connected 62kbroadband clients | |
In the second quarter, service revenues totaled 29.5 billion Argentinean pesos, with mobile prices remaining unchanged in the second quarter. Prepaid revenues fell 1.9% quarter-over-quarter while postpaid was practically flat. |
Mobile pricesremainedunchanged | |
Fixed-line service revenue increased 7.1% annually (7.4% sequentially) with broadband revenue up 33.3% and PayTV revenues that expanded 63.3%, mostly on the back of IPTV. We will continue to develop our presence in the corporate and SME segments of the market. |
Fixed-line servicerevenues up 7.1%YoY and 7.4% QoQ | |
EBITDA came in at 14.2 billion Argentinean pesos, down 3.3% annually in real terms. The margin for the period stood at 39.7%, 1.6 percentage points higher than a year before. |
EBITDA margin at40% of revenues |
page 11 |
INCOME STATEMENT -ArgentinaMillions of Constant ARS of June 2021 |
||||||||||||||||||||||||
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||||
Total Revenues* |
35,820 | 38,600 | -7.2% | 72,147 | 78,503 | -8.1% | ||||||||||||||||||
Total Service Revenues |
29,535 | 33,821 | -12.7% | 58,874 | 66,814 | -11.9% | ||||||||||||||||||
Wireless Revenues |
31,675 | 34,468 | -8.1% | 64,211 | 70,762 | -9.3% | ||||||||||||||||||
Service Revenues |
25,510 | 30,063 | -15.1% | 51,103 | 59,519 | -14.1% | ||||||||||||||||||
Equipment Revenues |
6,165 | 4,405 | 40.0% | 13,108 | 11,244 | 16.6% | ||||||||||||||||||
Fixed Line Revenues |
4,025 | 3,758 | 7.1% | 7,771 | 7,295 | 6.5% | ||||||||||||||||||
EBITDA |
14,222 | 14,700 | -3.3% | 28,616 | 29,688 | -3.6% | ||||||||||||||||||
% total revenues |
39.7% | 38.1% | 39.7% | 37.8% | ||||||||||||||||||||
EBIT |
11,226 | 11,298 | -0.6% | 22,414 | 22,994 | -2.5% | ||||||||||||||||||
% |
31.3% | 29.3% | 31.1% | 29.3% |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.
Argentina Operating Data |
||||||||||||
2Q21 | 2Q20 | Var.% | ||||||||||
Wireless Subscribers (thousands)(1) |
22,697 | 21,564 | 5.3% | |||||||||
Postpaid |
8,642 | 8,359 | 3.4% | |||||||||
Prepaid |
14,055 | 13,205 | 6.4% | |||||||||
MOU |
82 | 95 | -14.2% | |||||||||
ARPU (ARP) |
378 | 305 | 24.2% | |||||||||
Churn (%) |
1.2% | 1.9% | (0.7) | |||||||||
Revenue Generating Units (RGUs) * |
1,362 | 962 | 41.6% |
* Fixed Line, Broadband and Television.
(1) Hybrid subscribers are now included in our postpaid figures.
page 12 |
Brazil |
||
In the second quarter Claro added 1.4 million wireless subscribers, 1.1 million of them postpaid, ending June with 67.8 million subscribers. Our postpaid base was up 22.9% year-on-year, a more rapid pace than the one shown the prior quarter. As was the case then, Claro kept a positive balance from Mobile Number Portability, porting-in 700 thousand clients in net terms. On the fixed-line platform we disconnected 347 thousand accesses in the quarter, including 148 thousand PayTV clients and 152 thousand land-lines. |
1.1M posptaid netadds | |
Second quarter revenues increased 2.3% from a year before, reaching 9.8 billion reais, with service revenues rising 1.0%. Those from mobile jumped 10.2% and those on the fixed-line platform declined 5.8%. On mobile, postpaid services won the day, climbing 11.2% on an annual basis and 2.2% quarter-over-quarter, with Claro continuing to lead market share growth in the sector. Prepaid services for their part held firm at 6.6% year-on-year revenue growth and 1.0% sequentially. |
Postpaid revenues+11% YoY and 2.2%QoQ | |
On the fixed-line platform PayTV services declined 12.7% and voice revenues 21.0%, with broadband service revenues decelerating to a 4.9% pace from 7.2% the prior quarter. We held on to our leadership position in the ultrabroadband segment. |
Leaders in theultrabroadbandsegment | |
EBITDA rose 2.6% from the year-earlier quarter to 3.9 billion reais with the EBITDA margin expanding 0.1 percentage points to 40.1% helped along by reductions in bad debt provisions and other administrative expenses. EBITDA was up 0.3% sequentially. |
EBITDA +2.6% YoY | |
Claro was the first operator to launch 5G network services in Brazil, currently available in 15 cities delivering connection speeds that are 12x faster than conventional 4G. Claro also has the best coverage with 4.5G, reaching nearly 80% of the population. |
Claro first operatorin Brazil to launch5G networkservices |
INCOME STATEMENT - BrazilMillions of BrL |
||||||||||||||||||||||||
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||||
Total Revenues* |
9,755 | 9,536 | 2.3% | 19,529 | 19,327 | 1.0% | ||||||||||||||||||
Total Service Revenues |
9,427 | 9,333 | 1.0% | 18,907 | 18,854 | 0.3% | ||||||||||||||||||
Wireless Revenues |
4,685 | 4,160 | 12.6% | 9,249 | 8,502 | 8.8% | ||||||||||||||||||
Service Revenues |
4,375 | 3,969 | 10.2% | 8,665 | 8,051 | 7.6% | ||||||||||||||||||
Equipment Revenues |
310 | 191 | 61.8% | 584 | 451 | 29.6% | ||||||||||||||||||
Fixed Line Revenues |
5,052 | 5,364 | -5.8% | 10,242 | 10,803 | -5.2% | ||||||||||||||||||
EBITDA |
3,916 | 3,816 | 2.6% | 7,821 | 7,525 | 3.9% | ||||||||||||||||||
% total revenues |
40.1% | 40.0% | 40.0% | 38.9% | ||||||||||||||||||||
EBIT |
1,383 | 1,571 | -12.0% | 2,638 | 3,000 | -12.1% | ||||||||||||||||||
% |
14.2% | 16.5% | 13.5% | 15.5% |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.
page 13 |
Brazil Operating Data |
||||||||||
2Q21 | 2Q20 | Var.% | ||||||||
Wireless Subscribers (thousands) |
67,772 | 58,520 | 15.8% | |||||||
Postpaid |
39,134 | 31,852 | 22.9% | |||||||
Prepaid |
28,638 | 26,668 | 7.4% | |||||||
MOU(1) |
160 | 186 | -14.4% | |||||||
ARPU (BrL) |
22 | 23 | -6.1% | |||||||
Churn (%) |
3.2% | 4.1% | (1.0) | |||||||
Revenue Generating Units (RGUs) * |
31,926 | 33,260 | -4.0% |
* |
Fixed Line, Broadband and Television. |
(1) |
We modified the methodology for calculating MOUs. We no longer include M2M subscribers. |
Colombia |
||
In a more complicated commercial environment-a new mobile competitor launched their operations in the quarter-Claro maintained a strong position in the market, adding 382 thousand mobile subscribers of which 159 thousand were postpaid subscribers. We gained 75 thousand subscribers in the quarter through the Number-Portability scheme. Claro's commercial offerings have significantly increased the data allowances per plan, helping the company remain competitive in spite of the more aggressive commercial pressures it faced. Our convergent platform has been key in helping us drive increased data traffic on our network. On the fixed-line platform we gained 146 thousand RGUs in the quarter, including 62 thousand broadband accesses and 34 thousand PayTV clients. |
In spite of new competitor, we added 382k wireless subscribers |
|
Revenues were up 14.1% year-on-year to 3.6 trillion Colombian pesos with service revenues expanding 8.9%, partly reflecting the revenue decline a year before; quarter-over-quarter service revenues were practically flat, -0.3%. On the mobile segment, service revenues increased 6.9% on the back of postpaid revenues that expanded 8.1% from the year-earlier quarter. |
Mobile service revenues +6.9% YoY |
|
Fixed-line service revenues decelerated somewhat, to 12.2% from 13.7% in the first quarter, mainly reflecting the slowdown in broadband revenue growth, although quarter over quarter they rose 1.7%. PayTV revenues accelerated to a 14.6% pace. We launched our 500 Mbps broadband plan during the quarter, as well as the Claro Vox plan on PayTV, which is compatible with Android TV. |
Fixed-line service revenues 12% YoY |
|
Second quarter EBITDA increased 15.6% from the year-earlier quarter to 1.5 trillion Colombian pesos, its best performance in years. It was slightly down, -0.3%, on a sequential basis, with first quarter EBITDA having risen 10.3%-prepandemic-on an annual basis. The EBITDA margin for the period was equivalent to 42.8% of revenues, slightly better than a year before in spite of the much greater commercial activity. |
EBITDA +16% YoY | |
We continue to add capacity to our network anticipating strong demand for data services. Our convergent platform allows us to significantly expand our data capabilities in cost-efficient terms. |
page 14 |
INCOME STATEMENT - ColombiaBillions of COP |
||||||||||||||||||||||
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||
Total Revenues* |
3,573 | 3,131 | 14.1% | 7,122 | 6,361 | 12.0% | ||||||||||||||||
Total Service Revenues |
2,785 | 2,556 | 8.9% | 5,579 | 5,146 | 8.4% | ||||||||||||||||
Wireless Revenues |
2,368 | 2,114 | 12.0% | 4,734 | 4,353 | 8.7% | ||||||||||||||||
Service Revenues |
1,662 | 1,555 | 6.9% | 3,352 | 3,174 | 5.6% | ||||||||||||||||
Equipment Revenues |
707 | 559 | 26.3% | 1,382 | 1,180 | 17.2% | ||||||||||||||||
Fixed Line Revenues |
1,152 | 1,005 | 14.6% | 2,285 | 1,980 | 15.4% | ||||||||||||||||
EBITDA |
1,529 | 1,323 | 15.6% | 3,062 | 2,712 | 12.9% | ||||||||||||||||
% |
42.8% | 42.2% | 43.0% | 42.6% | ||||||||||||||||||
EBIT |
910 | 727 | 25.1% | 1,820 | 1,542 | 18.1% | ||||||||||||||||
% |
25.5% | 23.2% | 25.6% | 24.2% |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.
Colombia Operating Data |
||||||||||
2Q21 | 2Q20 | Var.% | ||||||||
Wireless Subscribers* (thousands) |
33,844 | 31,535 | 7.3% | |||||||
Postpaid |
8,078 | 7,422 | 8.8% | |||||||
Prepaid |
25,765 | 24,113 | 6.9% | |||||||
MOU(1) |
294 | 336 | -12.3% | |||||||
ARPU (COP) |
16,545 | 16,670 | -0.7% | |||||||
Churn (%) |
3.9% | 4.5% | (0.6) | |||||||
Revenue Generating Units (RGUs)** |
8,673 | 7,938 | 9.3% |
*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.
(1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.
Chile |
||
Chile was hardly hit by a second wave of contagion that resulted in a strict lockdown in the second quarter. We gained 128 thousand postpaid and 37 thousand prepaid subscribers in the second quarter, with fixed-line RGUs roughly flat. |
128k postpaid net adds |
|
Revenue totaled 194.4 billion Chilean pesos, up 6.6% year-on-year as service revenues expanded 2.3% and equipment revenues shot up 35.0%. Fixed-line revenues had a good performance as demand for connectivity remains strong, with service revenues expanding 7.6% from the year-earlier quarter on the back of PayTV revenues, up 20.0%, with broadband revenues staying flat and voice revenues declining 13.4%. Mobile service revenues were down 1.8% annually, with postpaid revenues declining slightly, -0.5%. |
Service revenues up 2.3% YoY |
|
Second quarter EBITDA of 39.4 billion Chilean pesos was up slightly in annual terms, 0.5%, with the EBITDA margin representing 20.3% of revenues. |
EBITDA margin at 20% of revenues |
|
In the quarter we acquired from Entel 30MHz of spectrum in the 3.5GHz band. |
page 15 |
INCOME STATEMENT - ChileMillions of ChPL |
||||||||||||||||||||||
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||
Total Revenues* |
194,423 | 182,354 | 6.6% | 394,515 | 381,703 | 3.4% | ||||||||||||||||
Total Service Revenues |
162,097 | 158,450 | 2.3% | 325,100 | 324,204 | 0.3% | ||||||||||||||||
Wireless Revenues |
119,074 | 112,377 | 6.0% | 243,699 | 237,711 | 2.5% | ||||||||||||||||
Service Revenues |
86,900 | 88,536 | -1.8% | 175,499 | 180,575 | -2.8% | ||||||||||||||||
Equipment Revenues |
32,174 | 23,841 | 35.0% | 68,200 | 57,137 | 19.4% | ||||||||||||||||
Fixed Line Revenues |
75,197 | 69,914 | 7.6% | 149,602 | 143,629 | 4.2% | ||||||||||||||||
EBITDA |
39,395 | 39,187 | 0.5% | 83,923 | 82,180 | 2.1% | ||||||||||||||||
% total revenues |
20.3% | 21.5% | 21.3% | 21.5% | ||||||||||||||||||
EBIT |
-20,801 | -18,445 | -12.8% | -29,359 | -26,503 | -10.8% | ||||||||||||||||
% |
-10.7% | -10.1% | -7.4% | -6.9% |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.
Chile Operating Data |
||||||||||
2Q21 | 2Q20 | Var.% | ||||||||
Wireless Subscribers (thousands) |
6,746 | 6,793 | -0.7% | |||||||
Postpaid |
2,617 | 2,276 | 15.0% | |||||||
Prepaid |
4,129 | 4,517 | -8.6% | |||||||
MOU |
179 | 178 | 0.5% | |||||||
ARPU (ChP) |
4,553 | 4,782 | -4.8% | |||||||
Churn (%) |
4.8% | 6.2% | (1.4) | |||||||
Revenue Generating Units (RGUs) * |
1,372 | 1,401 | -2.1% |
* Fixed Line, Broadband and Television.
Ecuador |
||
The economic conditions in Ecuador in the aftermath of the Covid-19 crisis have shifted more clients to prepaid; we gained 204 thousand new subs in the quarter, of which 187 thousand were prepaid subscribers. On the fixed-line platform we picked up 17 thousand RGUs. |
187k prepaid net adds |
|
Mobile revenues increased 4.5% annually to 225 million dollars, with prepaid revenues rising 15.4% and postpaid revenues falling 16.4%. Sequentially they declined 1.2% and 2.6% respectively. |
Prepaid revenues +15% YoY |
|
As a challenger in the fixed-line segment we increased the pace of fiber roll-out. We ended June with 300 thousand broadband accesses, 21.3% more than a year before. This brought about an increase in broadband revenues of 10.3%. Overall, fixed-line service revenues were up 2.1% year-on-year but, importantly, they shot up 4.8% quarter-over-quarter. |
300k new broadband accesses |
|
EBITDA declined 5.3% from the year before to 115 million dollars but relative to the prior quarter it was up 4.7%. The EBITDA margin for the period was equivalent to 45.5% of revenues. |
EBITDA down 5.3% YoY |
page 16 |
INCOME STATEMENT - EcuadorMillions of Dollars
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||||
Total Revenues* |
252 | 242 | 4.2% | 506 | 549 | -7.9% | ||||||||||||||||||
Total Service Revenues |
224 | 234 | -4.1% | 451 | 496 | -9.0% | ||||||||||||||||||
Wireless Revenues |
225 | 216 | 4.5% | 453 | 497 | -8.8% | ||||||||||||||||||
Service Revenues |
198 | 208 | -4.8% | 400 | 445 | -10.1% | ||||||||||||||||||
Equipment Revenues |
27 | 7 | 266.7% | 53 | 51 | 3.0% | ||||||||||||||||||
Fixed Line Revenues |
27 | 27 | 1.2% | 52 | 52 | 0.0% | ||||||||||||||||||
EBITDA |
115 | 121 | -5.3% | 224 | 250 | -10.4% | ||||||||||||||||||
% total revenues |
45.5% | 50.0% | 44.4% | 45.6% | ||||||||||||||||||||
EBIT |
60 | 65 | -8.0% | 115 | 139 | -16.8% | ||||||||||||||||||
% |
23.8% | 26.9% | 22.8% | 25.2% |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.
Ecuador Operating Data
2Q21 | 2Q20 | Var.% | ||||||||||
Wireless Subscribers (thousands) |
8,308 | 7,878 | 5.5% | |||||||||
Postpaid |
2,048 | 2,548 | -19.6% | |||||||||
Prepaid |
6,260 | 5,329 | 17.5% | |||||||||
MOU |
335 | 475 | -29.5% | |||||||||
ARPU (US$) |
8 | 9 | -6.0% | |||||||||
Churn (%) |
3.4% | 5.4% | (2.0) | |||||||||
Revenue Generating Units (RGUs) * |
493 | 454 | 8.5% |
* Fixed Line, Broadband and Television.
Peru
Peru was amongst the countries with more stringent lockdown measures at the beginning of the pandemic. Even though some areas still have restrictions in terms of mobility and curfews, we had a considerable annual swing in top line as well as sequential improvements in both fixed and mobile platforms. Net wireless subscriber additions came in at 320 thousand-38% more than in the first quarter-of which 234 thousand were postpaid, whereas on the fixed-line platform we obtained 50 thousand RGUS, half of them broadband accesses. |
320k wireless net adds |
|
Revenue expanded 43.8% year-on-year to 1.5 billion soles, with service revenues rising 13.7%, up from 7.7% in the prior quarter, and equipment revenues jumping five times. Equipment revenues had their worst quarter ever in 2Q20 and have returned to pre-pandemic levels. We have resumed commercial efforts and launched 5G services in Lima. |
Service revenues +14%YoY | |
Mobile service revenues were 10.4% higher than a year before driven by postpaid revenues that increased 10.6%. Quarter-over-quarter they increased 3.7% and 5.1% respectively. Prepaid revenues increased 9.9% in the period and were flat sequentially. On the fixed-line platform service revenues were booming, up 24.1% on the back of strong demand for connectivity which led to an increase of 41.4% in broadband revenues. PayTV revenues increased 4.6% after four quarters of declines as we improved our IPTV offer. |
Postpaid revenues up 11% YoY and 5.1% QoQ |
page 17 |
EBITDA increased 47.3% from the year-earlier quarter to 575 million soles; the EBITDA margin was equivalent to 38.5% of revenues, nearly one percentage point more than a year before in spite of the comeback in commercial activity. To note, relative to service revenues, EBITDA shot up 12.1 percentage points from a year before. Compared to the previous quarter EBITDA rose 5.4% in absolute terms and 0.7 percentage points relative to revenues. |
EBITDA margin at 39% of revenue |
INCOME STATEMENT - PeruMillions of Soles
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||||
Total Revenues* |
1,493 | 1,038 | 43.8% | 2,936 | 2,333 | 25.9% | ||||||||||||||||||
Total Service Revenues |
1,088 | 957 | 13.7% | 2,134 | 1,928 | 10.7% | ||||||||||||||||||
Wireless Revenues |
1,201 | 806 | 49.1% | 2,368 | 1,870 | 26.6% | ||||||||||||||||||
Service Revenues |
804 | 728 | 10.4% | 1,579 | 1,472 | 7.3% | ||||||||||||||||||
Equipment Revenues |
398 | 78 | nm | 789 | 398 | 98.2% | ||||||||||||||||||
Fixed Line Revenues |
284 | 229 | 24.1% | 555 | 456 | 21.6% | ||||||||||||||||||
EBITDA |
575 | 391 | 47.3% | 1,121 | 791 | 41.8% | ||||||||||||||||||
% total revenues |
38.5% | 37.6% | 38.2% | 33.9% | ||||||||||||||||||||
EBIT |
286 | 128 | 123.7% | 552 | 268 | 105.8% | ||||||||||||||||||
% |
19.2% | 12.3% | 18.8% | 11.5% |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.
Peru Operating Data
2Q21 | 2Q20 | Var.% | ||||||||||
Wireless Subscribers (thousands) |
11,501 | 10,387 | 10.7% | |||||||||
Postpaid |
4,659 | 4,064 | 14.6% | |||||||||
Prepaid |
6,842 | 6,323 | 8.2% | |||||||||
MOU |
379 | 385 | -1.7% | |||||||||
ARPU (Sol) |
24 | 22 | 6.2% | |||||||||
Churn (%) |
3.9% | 5.2% | (1.2) | |||||||||
Revenue Generating Units (RGUs) * |
1,855 | 1,707 | 8.7% |
* Fixed Line, Broadband and Television.
page 18 |
Central America
Although there are still certain mobility restrictions in the Central American countries, very mild in general except for Panama where measures are still restrictive, we were able to add 344 thousand wireless subscribers, of which 321 thousand were prepaids. We gained 36 thousand fixed-line RGUs, including 20 thousand broadband accesses. |
321k prepaid net adds |
|
Second quarter revenues, just shy of 600 million dollars, were 12.2% higher than a year before boosted by equipment revenues, up 83.6%. Service revenues increased 6.2% annually and 1.3% on a sequential basis with mobile service revenues rising 2.2%. Prepaid services were the main growth driver with revenue growth of 20.0% year-on-year and 3.7% sequentially. On the fixed-line platform service revenues expanded 1.2% annually and declined 0.4% relative to the first quarter as broadband and PayTV failed to compensate for the reduction in legacy services. |
Service revenues up 6.2% YoY and 1.3% QoQ |
|
EBITDA was up 21.3% annually and 6.7% sequentially to 256 million dollars. It was equivalent to 42.7% of revenues, which compares to 39.5% in the second quarter of 2020. |
EBITDA up 21% YoY and 6.7% QoQ |
INCOME STATEMENT - Central AmericaMillions of Dollars
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||||
Total Revenues* |
599 | 534 | 12.2% | 1,179 | 1,116 | 5.7% | ||||||||||||||||||
Total Service Revenues |
519 | 489 | 6.2% | 1,032 | 1,003 | 2.9% | ||||||||||||||||||
Wireless Revenues |
408 | 346 | 17.8% | 797 | 738 | 7.9% | ||||||||||||||||||
Service Revenues |
338 | 310 | 9.0% | 669 | 643 | 4.1% | ||||||||||||||||||
Equipment Revenues |
69 | 36 | 94.3% | 127 | 95 | 33.6% | ||||||||||||||||||
Fixed Line Revenues |
187 | 184 | 1.4% | 374 | 371 | 0.8% | ||||||||||||||||||
EBITDA |
256 | 211 | 21.3% | 495 | 429 | 15.3% | ||||||||||||||||||
% total revenues |
42.7% | 39.5% | 42.0% | 38.5% | ||||||||||||||||||||
EBIT |
115 | 62 | 85.2% | 215 | 140 | 53.8% | ||||||||||||||||||
% |
19.3% | 11.7% | 18.3% | 12.5% |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.
Central America Operating Data
2Q21 | 2Q20 | Var.% | ||||||||||
Wireless Subscribers (thousands) |
15,912 | 14,541 | 9.4% | |||||||||
Postpaid |
2,314 | 2,459 | -5.9% | |||||||||
Prepaid |
13,599 | 12,082 | 12.6% | |||||||||
MOU(1) |
170 | 179 | -4.5% | |||||||||
ARPU (US$) |
7 | 7 | 1.5% | |||||||||
Churn (%) |
5.9% | 6.7% | (0.9) | |||||||||
Revenue Generating Units (RGUs) * |
4,327 | 4,379 | -1.2% |
* Fixed Line, Broadband and Television. Figures have been adjusted in accordance with the methodology used for all AMX operations.
(1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.
page 19 |
Caribbean
Dominicana continued to improve on the back of its strong competitive position and our ability to cope with client's needs in what has been a fairly restricted market in terms of sanitary measures. We added 126 thousand new wireless clients in the period, 3% more than in the first quarter and connected 14 thousand new broadband accesses. Service revenues increased 14.8% year-on-year (3.0% sequentially) to 12.9 billion dominican pesos, with mobile service revenues expanding 18.2% (2.5% sequentially). Prepaid service revenues, which had taken a hit in the second quarter of 2020, posted a 26.6% annual increase, and a 2.9% sequential rise. Postpaid service revenues started to pick up: they rose 9.2% and 2.1%, respectively. EBITDA was up 27.8% and 3.2%. The sequential increases across the board in revenue and EBITDA foretell the strength of the economic recovery in the island. |
126k wireless net adds in Dominicana |
|
In Puerto Rico commercial activity remained subdued, with few client additions on both the fixed and the mobile platforms. Revenues of 227 million dollars were up 13.5% year-on-year on the back of a 33.4% increase in equipment revenues and an 8.1% rise in service revenues. Mobile service revenues were up 17.2% with fixed-line service revenues declining 2.8% on an annual basis. Sequentially mobile service revenues were up 1.7% and those from the fixed-line platform down 1.2%. |
Mobile service revenues +17% YoY and 1.7% QoQ in Puerto Rico |
|
EBITDA totaled 47 million dollars having risen 24.3% annually and 1.8% sequentially. The EBITDA margin, 20.8%, was 1.8 percentage points higher than a year before. |
EBITDA up 24% YoY and 1.8% QoQ in Puerto Rico |
INCOME STATEMENT - CaribbeanMillions of Dollars
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||||
Total Revenues* |
467 | 405 | 15.4% | 919 | 840 | 9.4% | ||||||||||||||||||
Total Service Revenues |
405 | 362 | 12.0% | 799 | 750 | 6.6% | ||||||||||||||||||
Wireless Revenues |
295 | 241 | 22.2% | 581 | 505 | 15.1% | ||||||||||||||||||
Service Revenues |
235 | 199 | 18.0% | 464 | 417 | 11.4% | ||||||||||||||||||
Equipment Revenues |
59 | 42 | 42.0% | 117 | 88 | 32.5% | ||||||||||||||||||
Fixed Line Revenues |
171 | 165 | 3.8% | 339 | 339 | 0.1% | ||||||||||||||||||
EBITDA |
169 | 133 | 27.1% | 333 | 274 | 21.4% | ||||||||||||||||||
% total revenues |
36.3% | 32.9% | 36.2% | 32.6% | ||||||||||||||||||||
EBIT |
84 | 51 | 65.9% | 165 | 110 | 50.1% | ||||||||||||||||||
% |
18.0% | 12.5% | 17.9% | 13.1% |
*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.
page 20 |
Caribbean Operating Data
2Q21 | 2Q20 | Var.% | ||||||||||
Wireless Subscribers (thousands) |
6,713 | 6,087 | 10.3% | |||||||||
Postpaid |
2,112 | 2,013 | 4.9% | |||||||||
Prepaid |
4,601 | 4,073 | 13.0% | |||||||||
MOU(1) |
216 | 232 | -6.7% | |||||||||
ARPU (US$) |
12 | 11 | 9.6% | |||||||||
Churn (%) |
2.1% | 3.8% | -1.7 | |||||||||
Revenue Generating Units (RGUs) * |
2,615 | 2,509 | 4.2% |
* |
Fixed Line, Broadband and Television. |
(1) |
We modified the methodology for calculating MOUs. We no longer include M2M subscribers. |
United States
As the vaccination process progressed, many U.S. states eliminated some or all the sanitary measures. This has brought about a surge of confidence and with it, a change in the spending pattern of U.S. consumers. Additionally, contrary to what happened at the peak of the pandemic where wireless subscribers felt more comfortable taking prepaid plans, we are now seeing stronger demand for postpaid which has intensified due to the strong commercial activity and promotions in that segment. These trends, coupled with the limited supply of handsets, resulted in net disconnections of 549 thousand in the quarter, approximately two thirds of which were Safelink clients. |
549k net disconnections due to strong demand for postpaid |
|
The strength of the economic recovery under way also manifested itself in the spending by our subscribers, with service revenues climbing 5.3% year-on-year, their best performance in at least a year. They were 4.3% higher than in the preceding quarter. |
Service revenues +5.3% YoY |
|
EBITDA of 272 million dollars was down 13%; the annual comparison is affected by an extraordinary credit booked in the second quarter of last year linked to negotiations of carrier discounts, adjusting for which EBITDA would have grown 25.9%. The EBITDA margin was equivalent to 12.9% of revenues. |
Adjusted EBITDA up 26% YoY |
INCOME STATEMENT - United States Millions of Dollars
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||||
Total Revenues |
2,101 | 2,087 | 0.7% | 4,163 | 4,073 | 2.2% | ||||||||||||||||||
Service Revenues |
1,822 | 1,729 | 5.3% | 3,569 | 3,421 | 4.3% | ||||||||||||||||||
Equipment Revenues |
279 | 357 | -22.0% | 594 | 652 | -8.9% | ||||||||||||||||||
EBITDA |
272 | 313 | -13.0% | 457 | 429 | 6.6% | ||||||||||||||||||
% total revenues |
12.9% | 15.0% | 11.0% | 10.5% | ||||||||||||||||||||
EBIT |
264 | 294 | -10.2% | 441 | 392 | 12.5% | ||||||||||||||||||
% |
12.6% | 14.1% | 10.6% | 9.6% |
page 21 |
United States Operating Data
2Q21 | 2Q20 | Var.% | ||||||||||
Wireless Subscribers (thousands) |
20,334 | 20,918 | -2.8% | |||||||||
Straight Talk |
9,717 | 9,743 | -0.3% | |||||||||
SafeLink |
1,656 | 2,008 | -17.5% | |||||||||
Other Brands |
8,961 | 9,167 | -2.3% | |||||||||
MOU |
663 | 677 | -2.1% | |||||||||
ARPU (US$) |
29 | 28 | 5.6% | |||||||||
Churn (%) |
4.2% | 3.3% | 0.9 |
A1 Telekom Austria Group
We finished June with 22.3 million wireless subscribers, 5.3% more than a year before. Postpaid net additions of 355 thousand were fueled by mobile WiFi routers. In the prepaid segment we gained 38 thousand subscribers; we had 14 thousand disconnections in Austria where we are experiencing migrations from prepaid to postpaid. Fixed-line RGUs were roughly flat in the quarter. |
355k postpaid net adds |
|
Altogether, revenues increased 6.4% annually, with service revenues up 3.9% (5.0% at constant FX) on the back of service revenue growth in all markets-except for Slovenia that was flat-and equipment revenues that grew 22%. |
Service revenues +5.0% YoY at constant Fx |
|
The first quarter still reflected the impact of severe lockdowns across our footprint, but sanitary measures began to be eased in the second quarter which helped bring about a sequential increase of service revenues of 2.2% supported by roaming revenues that picked up as travel restrictions eased. |
Sequential increase of service revenues, +2.2% YoY |
|
On the mobile front, on a group level service revenues increased 4.5% over the year and 2.6% sequentially. We had strong growth in Austria, Bulgaria, Croatia and Serbia driven by mobile WiFi. Fixed-line service revenues were up 3.3%-1.7% sequentially-with growth in all segments, especially Austria and Bulgaria as demand for connectivity and solutions remained strong. |
Mobile service revenues +4.5% YoY |
|
EBITDA reached 428 million euros and was up 9.6% over the year; before restructuring charges it rose 8.1%-9.5% at constant exchange rates. On a sequential basis, EBITDA was up 7.4% with Austria expanding 8.8%. The EBITDA margin stood at 36.7% of revenues, 1.1 percentage points higher than a year before. |
Adjusted EBITDA 9.5% YoY at constant Fx |
|
Telekom Austria group has been a top performer in revenue and EBITDA growth within the European telecom sector during the last three years. |
page 22 |
INCOME STATEMENT (In accordance with IFRS 16) - A1 Telekom Austria Group
Millions of Euros | ||||||||||||||||||||||||
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||||
Total Revenues |
1,166 | 1,096 | 6.4% | 2,301 | 2,222 | 3.6% | ||||||||||||||||||
Total service revenues |
976 | 939 | 3.9% | 1,932 | 1,889 | 2.3% | ||||||||||||||||||
Wireless service revenues |
532 | 510 | 4.5% | 1,051 | 1,030 | 2.0% | ||||||||||||||||||
Fixed-line service revenues |
444 | 430 | 3.3% | 881 | 859 | 2.6% | ||||||||||||||||||
Equipment revenues |
167 | 137 | 22.0% | 329 | 295 | 11.6% | ||||||||||||||||||
Other operating income |
23 | 19 | 15.9% | 40 | 38 | 7.1% | ||||||||||||||||||
EBITDA |
428 | 390 | 9.6% | 826 | 771 | 7.2% | ||||||||||||||||||
% total revenues |
36.7% | 35.6% | 35.9% | 34.7% | ||||||||||||||||||||
Adjusted EBITDA(1) |
449 | 415 | 8.1% | 868 | 812 | 6.9% | ||||||||||||||||||
% total revenues |
38.5% | 37.9% | 37.7% | 36.5% | ||||||||||||||||||||
EBIT |
187 | 152 | 23.6% | 351 | 299 | 17.3% | ||||||||||||||||||
% total revenues |
16.1% | 13.8% | 15.2% | 13.5% |
For further detail please visit www.a1.group/en/investor-relations
(1) Does not include restructuring charges in Austria.
A1 Telekom Austria Group Operating Data |
||||||||||||
2Q21 | 2Q20 | Var.% | ||||||||||
Wireless Subscribers (thousands) |
22,325 | 21,208 | 5.3% | |||||||||
Postpaid |
18,368 | 17,195 | 6.8% | |||||||||
Prepaid |
3,956 | 4,013 | -1.4% | |||||||||
MOU(1) |
429 | 440 | -2.6% | |||||||||
ARPU (Euros) |
8 | 8 | 0.0% | |||||||||
Churn (%) |
1.2% | 1.4% | (0.2) | |||||||||
Revenue Generating Units (RGUs)* |
6,072 | 6,105 | -0.5% |
*Fixed Line, Broadband and Television. (1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.
page 23 |
Exchange Rates Local Currency Units per MxP |
||||||||||||||||||||||||||
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||||||
Euro |
||||||||||||||||||||||||||
End of Period |
0.0426 | 0.0388 | 9.9% | 0.0426 | 0.0388 | 9.9% | ||||||||||||||||||||
Average |
0.0414 | 0.0389 | 6.5% | 0.0411 | 0.0420 | -2.1% | ||||||||||||||||||||
U.S. |
||||||||||||||||||||||||||
End of Period |
0.0505 | 0.0435 | 16.0% | 0.0505 | 0.0435 | 16.0% | ||||||||||||||||||||
Average |
0.0499 | 0.0428 | 16.5% | 0.0496 | 0.0463 | 7.0% | ||||||||||||||||||||
Brazilean Real |
||||||||||||||||||||||||||
End of Period |
0.2526 | 0.2384 | 6.0% | 0.2526 | 0.2384 | 6.0% | ||||||||||||||||||||
Average |
0.2645 | 0.2302 | 14.9% | 0.2669 | 0.2275 | 17.3% | ||||||||||||||||||||
Argentinean Peso |
||||||||||||||||||||||||||
End of Period |
4.8337 | 3.0673 | 57.6% | 4.8337 | 3.0673 | 57.6% | ||||||||||||||||||||
Average |
4.6912 | 2.8962 | 62.0% | 4.5250 | 2.9908 | 51.3% | ||||||||||||||||||||
Chilean Peso |
||||||||||||||||||||||||||
End of Period |
36.7505 | 35.7500 | 2.8% | 36.7505 | 35.7500 | 2.8% | ||||||||||||||||||||
Average |
35.7278 | 35.2478 | 1.4% | 35.6841 | 37.6392 | -5.2% | ||||||||||||||||||||
Colombian Peso |
||||||||||||||||||||||||||
End of Period |
189.7049 | 163.6336 | 15.9% | 189.7049 | 163.6336 | 15.9% | ||||||||||||||||||||
Average |
184.1971 | 164.7386 | 11.8% | 179.5143 | 170.8649 | 5.1% | ||||||||||||||||||||
Guatemalan Quetzal |
||||||||||||||||||||||||||
End of Period |
0.3911 | 0.3352 | 16.7% | 0.3911 | 0.3352 | 16.7% | ||||||||||||||||||||
Average |
0.3853 | 0.3297 | 16.9% | 0.3835 | 0.3560 | 7.7% | ||||||||||||||||||||
Peruvian Sol |
||||||||||||||||||||||||||
End of Period |
0.1952 | 0.1541 | 26.6% | 0.1952 | 0.1541 | 26.6% | ||||||||||||||||||||
Average |
0.1895 | 0.1469 | 29.0% | 0.1849 | 0.1582 | 16.8% | ||||||||||||||||||||
Dominican Republic Peso |
||||||||||||||||||||||||||
End of Period |
2.8890 | 2.5484 | 13.4% | 2.8890 | 2.5484 | 13.4% | ||||||||||||||||||||
Average |
2.8519 | 2.4555 | 16.1% | 2.8536 | 2.5763 | 10.8% |
page 24 |
Exchange Rates Local Currency Units per USD |
||||||||||||||||||||||||||
2Q21 | 2Q20 | Var.% | Jan-Jun 21 | Jan-Jun 20 | Var.% | |||||||||||||||||||||
Euro |
||||||||||||||||||||||||||
End of Period |
0.8433 | 0.8902 | -5.3% | 0.8433 | 0.8902 | -5.3% | ||||||||||||||||||||
Average |
0.8301 | 0.9082 | -8.6% | 0.8298 | 0.9075 | -8.6% | ||||||||||||||||||||
Mexican Peso |
||||||||||||||||||||||||||
End of Period |
19.8027 | 22.9715 | -13.8% | 19.8027 | 22.9715 | -13.8% | ||||||||||||||||||||
Average |
20.0438 | 23.3567 | -14.2% | 20.1751 | 21.5954 | -6.6% | ||||||||||||||||||||
Brazilean Real |
||||||||||||||||||||||||||
End of Period |
5.0022 | 5.4760 | -8.7% | 5.0022 | 5.4760 | -8.7% | ||||||||||||||||||||
Average |
5.3008 | 5.3759 | -1.4% | 5.3842 | 4.9135 | 9.6% | ||||||||||||||||||||
Argentinean Peso |
||||||||||||||||||||||||||
End of Period |
95.7200 | 70.4600 | 35.9% | 95.7200 | 70.4600 | 35.9% | ||||||||||||||||||||
Average |
94.0292 | 67.6456 | 39.0% | 91.2931 | 64.5869 | 41.3% | ||||||||||||||||||||
Chilean Peso |
||||||||||||||||||||||||||
End of Period |
727.7600 | 821.2300 | -11.4% | 727.7600 | 821.2300 | -11.4% | ||||||||||||||||||||
Average |
716.1197 | 823.2708 | -13.0% | 719.9293 | 812.8329 | -11.4% | ||||||||||||||||||||
Colombian Peso |
||||||||||||||||||||||||||
End of Period |
3,756.6700 | 3,758.9100 | -0.1% | 3,756.6700 | 3,758.9100 | -0.1% | ||||||||||||||||||||
Average |
3,692.0052 | 3,847.7428 | -4.0% | 3,621.7134 | 3,689.8891 | -1.8% | ||||||||||||||||||||
Guatemalan Quetzal |
||||||||||||||||||||||||||
End of Period |
7.7440 | 7.7003 | 0.6% | 7.7440 | 7.7003 | 0.6% | ||||||||||||||||||||
Average |
7.7233 | 7.7011 | 0.3% | 7.7376 | 7.6890 | 0.6% | ||||||||||||||||||||
Peruvian Sol |
||||||||||||||||||||||||||
End of Period |
3.8660 | 3.5410 | 9.2% | 3.8660 | 3.5410 | 9.2% | ||||||||||||||||||||
Average |
3.7980 | 3.4314 | 10.7% | 3.7298 | 3.4174 | 9.1% | ||||||||||||||||||||
Dominican Republic Peso |
||||||||||||||||||||||||||
End of Period |
57.2100 | 58.5400 | -2.3% | 57.2100 | 58.5400 | -2.3% | ||||||||||||||||||||
Average |
57.1628 | 57.3524 | -0.3% | 57.5708 | 55.6356 | 3.5% |
page 25 |
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. |
||
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. |
page 26 |
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. |