TRACFONE (US MVNO) Q'3 RESULTS

US MVNO Tracfone, a unit of America Movil, added 745,000 new subscribers in the third quarter, 4.6 percent more than a year ago, to finish September with 16.7 million clients, a 26.2 percent year-on-year increase, reports Telecompaper.com. Quarterly revenues came in at USD 738 million dollars, up 75.1 percent from a year earlier. The operator attributed the growth to success in its strategy to move upscale in the prepaid segment, which resulted in ARPU expanding by one third to USD 13. EBITDA for the period was USD 81 million, up 3.9 percent, held back by the costs associated with the development and expansion of its StraightTalk brand, with the EBITDA margin for the period falling to 11.0 percent.

Tracfone Wireless
TracFone Wireless or TracFone is a prepaid mobile phone provider. A subsidiary of América Móvil, it provides service in the United States, Puerto Rico and the United States Virgin Islands. TracFone was established in 1996 as Topp Telecom Inc., a prepaid cell phone company, in Miami, Florida. In February 1999, Topp received a major infusion of capital from Teléfonos de México or Telmex , Mexico’s largest telephone company. TelMex paid $57.5 million for a 55 percent controlling interest in the company. In 2000, Telmex spun off their mobile unit, creating América Móvil, of which Topp Telecom became a subsidiary. In November 2000, Topp Telecom Inc. changed its name to TracFone Wireless Inc TracFone provides four brands of service: Tracfone Wireless, NET10, Safe Wireless, and Straight Talk. These brands differ not only in their logos and prepaid minute rates but their underlying Networks: using AT&T Wireless / T-Mobile / Verizon Wireless

Straight Talk
Straight Talk is a service provided by Tracfone Wireless, America’s largest no-contract cell phone provider in the U.S., with over 15 million subscribers. Tracfone Wireless is a subsidiary of América Móvil S.A.B. de C.V.
MVNO; Networks: Verizon Wireless

America Movil SAB Earners’Q’3
Latin America’s largest telecommunications concern, America Movil SAB, is expected to report big gains in its third-quarter earnings as the company consolidates results of other companies also controlled by Mexican billionaire Carlos Slim.

In July, America Movil took over Carso Global Telecom, a holding company for around 60% of flagship fixed-line operator Telefonos de Mexico SAB, or Telmex, and Telmex Internacional in a mostly stock deal valued at about $23 billion. The company plans to report consolidated results starting in the third quarter.

America Movil will probably report revenue of 155.46 billion pesos ($12.34 billion), compared with MXN99.8 billion in the third quarter of 2009, according to the median estimate of six equities analysts consulted by Dow Jones. Earnings before interest, taxes, depreciation and amortization are expected to be MXN61.8 billion, compared with MXN40.4 billion, and net profit is seen at MXN25.47 billion compared with MXN18.68 billion.

The inclusion of Telmex, which has been battling to maintain growth levels as traditional phone service shrinks and it pursues value-added services such as corporate services and broadband Internet, is expected to introduce some drag into America Movil’s cash flow growth. Telmex Internacional–which offers voice, data, video transmission, paid cable, satellite television and internet– could also pressure margins.

Nevertheless, Telmex likely slowed the deterioration in its Ebitda, which was down 13% year-on-year in the second quarter, BBVA Bancomer said in a report.

Telmex, which plans to release its results Monday, ahead of America Movil’s Wednesday report, is expected to have revenue of MXN28.42 billion, down from MXN29.54 billion a year ago, according to the analysts. Telmex Ebitda is seen falling to MXN11.5 billion from MXN12.96 billion, and net profit likely fell to MXN3.91 billion from MXN4.79 billion.

America Movil had 211 million wireless subscribers in 17 countries in the Americas at the end of June, and is expected to add 4.85 million in the third quarter.

“In mobile, we look for a continuation of recent trends: solid Mexico profitability, sluggish growth in Brazil, accelerating growth in the U.S., and improving profitability in most other countries,” Barclays Capital said.

Currency appreciation in many of America Movil’s markets, including heavyweights Brazil and Mexico

About América Móvil
América Móvil, S.A.B. de C.V. and its subsidiaries provide wireless and fixed communications services in Latin America. It offers wireless services, including prepaid wireless voice and data services; and data-based wireless services, such as SMS, MMS, WAP, PTT, SMS notifications, group messaging, infotainment, content download, video streaming, location-based services, vehicle location, and Internet access services. The company also provides voice and data network services, including TDMA, GSM, CDMA, GPRS, EDGE, UMTS, and HSDPA services; fixed line services, which include voice, Internet access, cable television, and data transmission; and voice and data network services. In addition, it involves in the sale of cellular phones and accessories. As of December 31, 2008, América Móvil had approximately 182.7 million wireless subscribers and 3.8 million fixed-line subscribers in Mexico, Guatemala, Nicaragua, Ecuador, El Salvador, Brazil, Argentina, Colombia, the United States, Honduras, Chile, Peru, Paraguay, Uruguay, the Dominican Republic, Puerto Rico, Jamaica, and Panama. The company was founded in 2000 and is based in Mexico City, Mexico.

Lago Alberto 366
Colonia Anahuac
Mexico, DF 11320
Mexico
Phone: 52 55 2581 4449
Fax: 52 55 2581 4422
www.americamovil.com

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