By Noel Randewich
MEXICO CITY, July 21 (Reuters) - America Movil, the largest cell-phone operator in Latin America, posted a 27 percent rise in second-quarter net profit on Tuesday but added fewer new subscribers because of the struggling economy.
America Movil, controlled by billionaire Carlos Slim, said it earned 22.5 billion pesos ($1.71 billion) in the April-June period, more than analysts had expected.
But hit by the global recession, the company signed up 3.7 million new clients in the second quarter, down from 6.1 million a year earlier and fewer than forecast in a Reuters poll of analysts.
Quarterly revenue rose 11 percent, year over year, to 94 billion pesos. Sales growth was driven by a 16 percent increase in revenues from clients using Internet, text messages and other data services.
America Movil is betting heavily on Internet-oriented products, promoting smartphones and selling cheap laptop computers and modems on monthly payment plans.
Amid a tough economy and rising unemployment across Latin America, America Movil said its average revenue per user slipped 11 percent in Brazil and 3 percent in Mexico.
The company, which has operations from the United States to Argentina and competes regionally with Spain's Telefonica , ended June with 194 million clients.
Earnings before interest, taxes, depreciation and amortization totaled 39.3 billion pesos, up 13 percent from the same quarter in 2008 and beating forecasts.
America Movil's higher net profit was driven by 2.4 billion pesos in net financial income thanks to gains in the Mexican peso during the quarter.
Earlier, America Movil's shares fell 1.29 percent to end at 27.60 pesos each.
($1 = 13.17 pesos at end June)
(Reporting by Noel Randewich; editing by Carol Bishopric) Keywords: AMERICAMOVIL/ (Noel.randewich@reuters.com; + 52 55 5282 7153; Reuters Messaging: noel.randewich.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
MEXICO CITY, July 21 (Reuters) - America Movil, the largest cell-phone operator in Latin America, posted a 27 percent rise in second-quarter net profit on Tuesday but added fewer new subscribers because of the struggling economy.
America Movil, controlled by billionaire Carlos Slim, said it earned 22.5 billion pesos ($1.71 billion) in the April-June period, more than analysts had expected.
But hit by the global recession, the company signed up 3.7 million new clients in the second quarter, down from 6.1 million a year earlier and fewer than forecast in a Reuters poll of analysts.
Quarterly revenue rose 11 percent, year over year, to 94 billion pesos. Sales growth was driven by a 16 percent increase in revenues from clients using Internet, text messages and other data services.
America Movil is betting heavily on Internet-oriented products, promoting smartphones and selling cheap laptop computers and modems on monthly payment plans.
Amid a tough economy and rising unemployment across Latin America, America Movil said its average revenue per user slipped 11 percent in Brazil and 3 percent in Mexico.
The company, which has operations from the United States to Argentina and competes regionally with Spain's Telefonica , ended June with 194 million clients.
Earnings before interest, taxes, depreciation and amortization totaled 39.3 billion pesos, up 13 percent from the same quarter in 2008 and beating forecasts.
America Movil's higher net profit was driven by 2.4 billion pesos in net financial income thanks to gains in the Mexican peso during the quarter.
Earlier, America Movil's shares fell 1.29 percent to end at 27.60 pesos each.
($1 = 13.17 pesos at end June)
(Reporting by Noel Randewich; editing by Carol Bishopric) Keywords: AMERICAMOVIL/ (Noel.randewich@reuters.com; + 52 55 5282 7153; Reuters Messaging: noel.randewich.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.