amxpr4q14_6k.htm - Generated by SEC Publisher for SEC Filing

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
 
For the month of February, 2015

Commission File Number: 1-16269
 

AMÉRICA MÓVIL, S.A.B. DE C.V.
(Exact name of registrant as specified in its charter)
America Mobile
(Translation of Registrant´s name into English)
 
Lago Zurich 245
Plaza Carso / Edificio Telcel
Colonia Granada Ampliación 
11529 Mexico, D.F., Mexico
(Address of principal executive office)
 

Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F. 
Form 20-F ___X___ Form 40-F _______

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):
Yes _______ No ___X____

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
Yes _______ No ___X____

Indicate by check mark whether the registrant by furnishing the information contained in this Form 6-K is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____


 

 

 

América Móvil’s fourth quarter of
2014 financial and operating report

 

Mexico City, February 10, 2015 - América Móvil, S.A.B. de C.V. (“América Móvil”) [BMV: AMX] [NYSE: AMX] [NASDAQ: AMOV] [LATIBEX: XAMXL], announced today its financial and operating results for the fourth quarter of 2014.

 

We ended 2014 with 368 million access lines, 8.4% more than a year before, reflecting the consolidation of Telekom Austria. The organic growth rate of our total access base was 1.2% relative to 2013. Altogether we had 289.4 million wireless subscribers, 34.3 million landlines, 22.6 million broadband accesses and 21.5 million PayTV units.

 

Brazil is our largest and fastest-growing operation with 107.2 million accesses, up 5.7% from the year before.

 

Our fourth quarter revenues totaled 229.3 billion pesos, 2.7% more than a year before in Mexican peso terms, bringing to 883.8 billion pesos the total for the year (proforma). At constant exchange rates service revenues were up 3.2% in the quarter.

 

Mobile data revenues continued to be the more important driver of growth, followed by PayTV, rising 14.6%, and 12.7%, respectively. Fixed broadband revenues increased 12.0%, while voice revenues continued to deteriorate in both platforms, partly on account of regulatory measures.

 

Consolidated EBITDA totaled 67.7 billion pesos in the quarter and 279.2 billion pesos for the full year. At constant exchange rates it was up 1.9% with that of the Americas expanding at a 4.4% pace. The EBITDA margin stood at 29.5% of revenues.

 

Our operating profits declined 11.2% in Mexican peso terms—as depreciation and amortization charges rose 12.5%. This decrease and a 42.3% increase in comprehensive financing costs, led to an 77.8% decline on net profit. The increase in comprehensive financing cost was on account of unrealized foreign exchange losses. 

 

Throughout the year we funded capital expenditures in the amount of 149.7 billion pesos and distributed 52.1 billion pesos to shareholders. We acquired minority interests and subscribed new equity in the aggregate amount of 10.2 billion pesos. Furthermore, we contributed 16.3 billion pesos to our pension funds. Net debt was up to 534.4 billion pesos.

 

América Móvil Fundamentals (IFRS)

 

4Q14

4Q13

Var. %

EPS (Mex$) (1)

0.05

0.23

-77.0%

Earning per ADR (US$) (2)

0.08

0.35

-78.4%

Net Income (millions of Mex$)

3,612

16,286

-77.8%

Average Shares Outstanding (billion) (3)

68.47

70.95

-3.5%

Average ADRs Outstanding (millions) (4)

450

493

-8.8%

 

(1) Net Income / Average Shares outstanding

(2) 20 shares per ADR

(3) All figures in the table reflect retroactively the 2:1 split that became effective on June 29th, 2011

(4) As per Bank of NY Mellon

 

 

 


 
 

 

Relevant Events

 

In November, we successfully completed a capital increase for the Telekom Austria Group of one billion euros, to which América Móvil contributed 604 million euros. The capital increase has strengthened Telekom Austria’s financial position and has secured its investment-grade ratings. It was upgraded one notch by S&P to BBB with a stable outlook, while Moody’s confirmed its stable outlook with a rating of Baa2; both rating agencies had downgraded Telekom Austria’s debt in October 2013.

 

Being the first adopters of the new technologies in Latin America, we have made important efforts to complete the rollout of our 4GLTE networks. In recent months, we participated in spectrum auctions in several countries to be able to deploy 4GLTE services and expand our 3G footprint. We have committed approximately 1,755 million dollars for the use of the frequencies. In Brazil we were granted the use of 20 MHz of spectrum in the 700MHz band at a cost of approximately 763.5 million dollars. In Argentina, we obtained 20 MHz in the 1,700MHz band and 30MHz in the 700MHz band for which we will pay in all, 641 million dollars. In January 2015, we agreed to pay 180 million dollars in Ecuador for the use of 20MHz of spectrum in the 1,900 MHz band and 40MHz in the 700MHz frequency and in Puerto Rico we were granted the use of 10MHz of spectrum in the 1,700 MHz band for a price of 170 million dollars.

 

 

Access Lines

 

We ended 2014 with 368 million access lines, 8.4% more than a year before which mostly reflects the consolidation of Telekom Austria last July. The organic growth rate of our total access base was 1.2% relative to 2013. Altogether we had 289.4 million wireless subscribers, 34.3 million landlines, 22.6 million broadband accesses and 21.5 million PayTV units.

 

América Móvil’s Subsidiaries as of December 2014

 

Country

Brand

Business

Equity

Participation

Consolidation Method

Mexico

Telcel

wireless

100.0%

Global Consolidation Method

 

Telmex

wireline

98.7%

Global Consolidation Method

 

Sección Amarilla (1)

other

98.4%

Global Consolidation Method

 

Telvista

other

89.4%

Global Consolidation Method

Argentina

Claro

wireless

100.0%

Global Consolidation Method

 

Telmex

wireline

99.7%

Global Consolidation Method

Brazil

Claro (2)

wireless

96.1%

Global Consolidation Method

Chile

Claro

wireless

100.0%

Global Consolidation Method

 

Telmex(1)

wireline

100.0%

Global Consolidation Method

Colombia

Claro

wireless

99.4%

Global Consolidation Method

 

Telmex

wireline

99.3%

Global Consolidation Method

Costa Rica

Claro

wireless

100.0%

Global Consolidation Method

Dominicana

Claro

wireless/wireline

100.0%

Global Consolidation Method

Ecuador

Claro

wireless

100.0%

Global Consolidation Method

 

Telmex(1)

wireline

98.4%

Global Consolidation Method

El Salvador

Claro

wireless/wireline

95.8%

Global Consolidation Method

Guatemala

Claro

wireless/wireline

99.3%

Global Consolidation Method

Honduras

Claro

wireless/wireline

100.0%

Global Consolidation Method

Nicaragua

Claro

wireless/wireline

99.6%

Global Consolidation Method

Panama

Claro

wireless

100.0%

Global Consolidation Method

Paraguay

Claro

wireless

100.0%

Global Consolidation Method

Peru

Claro

wireless/wireline

100.0%

Global Consolidation Method

Puerto Rico

Claro

wireless/wireline

100.0%

Global Consolidation Method

Uruguay

Claro

wireless/wireline

100.0%

Global Consolidation Method

USA

Tracfone

wireless

98.2%

Global Consolidation Method

Netherlands

KPN

wireless/wireline

21.4%

Equity Method

Austria

Telekom Austria

wireless/wireline

59.7%

Global Consolidation Method

(1) Equity Participation of Telmex Internacional of which América Móvil owns 97.79%.

(2) On December 31, 2014, Embratel and Net merged into Claro of which América Móvil owns 79.22% through Telmex Internacional and 16.90% through Sercotel. As of February 2nd, reflects the acquisition of minority shareholders.

 


 
 

 

 

With 107.2 million accesses as of December, Brazil is our largest and fastest-growing operation; its number of accesses rose 5.7% from the year before.

 

Wireless Subscribers

 

After net additions of 2.6 million in the fourth quarter we finished December with 289.4 million clients, practically flat in relation with the year before. Throughout the year we disconnected prepaid clients in various countries as we implemented a common churn policy amongst our operations. As for our postpaid base it increased 5.1% organically to 59.5 million subscribers, with net gains of 958 thousand subscribers in the quarter including 431 thousand in Brazil and 161 thousand in Mexico.

 

Our postpaid base grew particularly rapidly in Central America—15%—with Brazil and Mexico expanding at a 9.3% and 6.0% rate respectively. 

 

Brazil and Mexico each account for a fourth of our client base. Colombia contributes 10% of our subs followed by TracFone in the US with 9%. Altogether, our operations in the Argentinean block represent approximately 8%, while those in Europe and the ones in the Central America-Caribbean block each account for 7%.

 

Wireless Subscribers as of December 2014

 

Total(1) (Thousands)

Country

Dec'14

Sep'14

Var.%

Dec'13

Var.%

Argentina, Paraguay and Uruguay

22,000

22,004

0.0%

22,218

-1.0%

Austria & CEE

20,008

19,903

0.5%

20,117

-0.5%

Brazil

71,107

69,636

2.1%

68,704

3.5%

Central America & Caribbean

19,065

19,327

-1.4%

22,985

-17.1%

Chile

5,754

5,677

1.4%

5,948

-3.3%

Colombia

29,776

29,291

1.7%

28,977

2.8%

Ecuador

11,772

12,280

-4.1%

12,031

-2.2%

Mexico

71,463

70,474

1.4%

73,505

-2.8%

Peru

12,498

12,338

1.3%

11,855

5.4%

USA

26,006

25,904

0.4%

23,659

9.9%

Total Wireless Lines

289,449

286,834

0.9%

290,000

-0.2%

(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. *Central America includes Panama and Costa Rica in every table.

*Includes Panama’s wireless subscribers.

 


 

 

 

Fixed Revenue Generating Units

 

We added 840 thousand RGUs in the fourth quarter to end the year with 78.4 million RGUs, 6.5% more than a year before (proforma). Nearly half of the RGUs—46%—were in Brazil, with Mexico accounting for 28%, Colombia 7%, and both Central America and Europe (Telekom Austria) slightly less than 6%.

 

In spite of disconnections in Mexico, Puerto Rico and Europe, we managed to post a 2.9% increase in the number of fixed lines. Broadband accesses rose 8.6% and the number of PayTV clients 10.1%.

 

Fixed-Line and Other Accesses (RGUs) as of December 2014

 

Total (Thousands)

Country

Dec'14

Sep'14

Var.%

Dec'13

Var.%

Argentina, Paraguay and Uruguay

595

593

0.4%

548

8.7%

Austria & CEE

4,402

4,369

0.8%

4,212

4.5%

Brazil

36,096

35,564

1.5%

32,683

10.4%

Central America & Caribbean

6,953

6,844

1.6%

6,504

6.9%

Chile

1,231

1,236

-0.4%

1,167

5.5%

Colombia

5,307

5,188

2.3%

4,749

11.8%

Ecuador

343

336

2.2%

311

10.5%

Mexico

22,250

22,242

0.0%

22,452

-0.9%

Peru

1,233

1,199

2.9%

1,032

19.5%

Total RGUs

78,412

77,572

1.1%

73,657

6.5%

 

 

 

América Móvil Consolidated Results

 

The fourth quarter of 2014 was characterized by significant foreign exchange volatility throughout the world alongside increased expectations of interest rate hikes this year by the FED as U.S. economic activity appeared to gain momentum. Emerging market currencies suffered vis-à-vis the U.S. dollar, as did the euro, the latter on expectations of quantitative easing by the European Central Bank. The U.S. dollar rose 12.6% in the quarter against the Mexican peso; 13.4% against the Brazilian real; 24.2% vs. the Colombian peso and 13.6% vis-à-vis the euro.

 

Our fourth quarter revenues totaled 229.3 billion pesos, 2.7% more than a year before in Mexican peso terms, bringing to 883.8 billion pesos the total for the year (proforma, assuming the consolidation of TKA had taken place at the end of last year).

 

At constant exchange rates service revenues were up 3.2% in the quarter, with growth rates decelerating in several markets partly as a result of the introduction of new regulatory measures including lower interconnection rates. In the Americas the rate of growth of service revenues came down from 4.9% in the third quarter to 3.9% in the fourth; in Europe it went from +2.7% to -3.9% in the same period, partly to do with the booking of extraordinary items a year before and the phasing in of new accounting policies on revenues recognition.

 


 
 

 

 

 

 

At 14.6%, mobile data revenues continued to be the more important driver of growth, followed by PayTV, at 12.7%. Fixed broadband revenues grew 12.0%, while voice revenues continued to deteriorate in both platforms, partly on account of the regulatory measures mentioned above.

 

The South American block continued to lead in terms of service revenue growth, with 5.6% in the fourth quarter, followed by Central America-The Caribbean, at 4.5%. In Europe service revenues were down. Belarus had a positive contribution for the group, albeit at a lower rate than it used to because of the crisis in Russia.

 

América Móvil’s Income Statement (IFRS) Pro-forma* Millions of Mexican pesos

 

 

 

 

4Q14

4Q13

Var.%

Jan-Dec 14

Jan-Dec 13

Var.%

Service Revenues

197,444

195,611

0.9%

785,678

768,410

2.2%

Equipment Revenues

31,860

27,769

14.7%

98,154

90,182

8.8%

Total Revenues

229,304

223,380

2.7%

883,832

858,592

2.9%

 

 

 

 

 

 

 

Cost of Service

68,295

64,406

6.0%

266,042

256,329

3.8%

Cost of Equipment

39,391

38,893

1.3%

133,586

130,429

2.4%

Selling, General & Administrative Expenses

51,719

48,393

6.9%

192,744

184,725

4.3%

Others

2,232

3,554

-37.2%

12,247

10,266

19.3%

Total Costs and Expenses

161,637

155,245

4.1%

604,619

581,749

3.9%

 

 

 

 

 

 

 

EBITDA

67,667

68,136

-0.7%

279,213

276,843

0.9%

% of Total Revenues

29.5%

30.5%

 

31.6%

32.2%

 

Depreciation & Amortization

34,037

30,262

12.5%

126,870

116,209

9.2%

EBIT

33,630

37,874

-11.2%

152,343

160,634

-5.2%

% of Total Revenues

14.7%

17.0%

 

17.2%

18.7%

 

 

 

 

 

 

 

 

Net Interest Expense

7,550

7,279

3.7%

28,543

26,762

6.7%

Other Financial Expenses

-2,579

2,022

-227.5%

4,600

5,690

-19.2%

Foreign Exchange Loss

22,818

10,232

123.0%

28,590

19,685

45.2%

Comprehensive Financing Cost (Income)

27,789

19,533

42.3%

61,732

52,137

18.4%

Income & Deferred Taxes

593

2,050

-71.1%

37,975

31,781

19.5%

 

 

 

 

 

 

 

Net Income before Minority

Interest and Equity

5,248

16,291

-67.8%

52,636

76,716

-31.4%

Participation in Results of Affiliates minus

 

 

 

 

 

 

Equity Participation in Results of Affiliates**

-808

-423

-91.0%

-2,652

-260

n.m.

Minority Interest

-829

418

-298.2%

-2,802

-1,239

-126.1%

Net Income

3,612

16,286

-77.8%

47,182

75,217

-37.3%

* All periods include Telekom Austria

Group results pro-forma

** Includes KPN

n.m. Not meaningful

 


 
 

 

 

 

Consolidated EBITDA totaled 67.7 billion pesos in the quarter and 279.2 billion pesos for the full year. At constant exchange rates it was up 1.9% with that of the Americas expanding at a 4.4% pace. The EBITDA margin for the period stood at 29.5% of revenues, reflecting the fact that in most operations there were margin improvements relative to the prior year. 

 

Our operating profits were down 11.2% in Mexican peso terms, as depreciation and amortization charges rose 12.5%. Relative to revenues, these charges went up nearly one percentage point to 14.8%.

 

We registered a net profit of 3.6 billion pesos in the quarter, down 77.8% from the prior year, reflecting partly the above-mentioned decline in operating profits but also our comprehensive financing costs. At 27.8 billion pesos, they were 42.3% higher than a year before on account of foreign exchange losses.  Such losses are unrealized losses that accrue on the currency exposure of our debt—which has a 12-year average life—with most of our currency exposure centered in euros. Our net profit was equivalent to 5 peso cents per share or 8 dollar cents per ADR.

 

Balance Sheet (in accordance with IFRS) - América Móvil Consolidated *Pro-forma Millions of Mexican Pesos

 

Dec '14

Dec '13

Var.%

 

Dec '14

Dec '13

Var%

Current Assets

 

 

 

 

Current Liabilities

 

 

 

Cash & Securities

72,638

51,959

39.8%

 

Short Term Debt**

57,324

28,303

102.5%

Accounts Receivable

160,384

151,052

6.2%

 

Accounts Payable

244,227

215,196

13.5%

Other Current Assets

18,292

16,609

10.1%

 

Other Current
Liabilities

58,350

56,382

3.5%

Inventories

35,930

38,081

-5.6%

 

 

359,901

299,881

20.0%

 

287,245

257,702

11.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non Current Assets

 

 

 

 

Non Current Liabilities

 

 

 

Plant & Equipment

605,408

582,897

3.9%

 

Long Term Debt

549,750

542,865

1.3%

Investments in Affiliates

49,263

71,421

-31.0%

 

Other Liabilities

122,012

110,174

10.7%

 

 

 

 

 

 

671,762

653,039

2.9%

Deferred Assets

 

 

 

 

 

 

 

 

Goodwill (Net)

127,752

130,002

-1.7%

 

 

 

 

 

Intangible Assets

92,679

77,745

19.2%

 

Shareholder's Equity

224,644

246,948

-9.0%

Deferred Assets

93,960

80,101

17.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

1,256,307

1,199,868

4.7%

 

Total Liabilities

and Equity

1,256,307

1,199,868

4.7%

* Results include Telekom Austria Pro-forma.

** Includes current portion of Long Term Debt.

 

 

 


 
 

 

 

 

Financial Debt of América Móvil* Pro-forma Millions of U.S. dollars equivalent

 

Dec-13

Dec-14

Peso - denominated debt

5,914

5,783

Bonds and other securities

5,914

5,762

Banks and others

0

21

U.S. Dollar - denominated debt

16,381

16,026

Bonds and other securities

15,848

15,727

Banks and others

534

299

Debt denominated in other currencies

21,384

19,438

Bonds and other securities

19,958

18,383

Banks and others

1,425

1,055

Total Debt

43,679

41,247

*This table does not include the effect of forwards and derivatives used to hedge the foreign exchange exposure.

 

 

 

 

We finished the year with a net debt of 533.4 billion pesos, up from 518.6 billion pesos a year before (assuming we had consolidated Telekom Austria then). It was equivalent to 1.7 times LTM EBITDA adjusting for our currency exposure. Throughout the year we funded capital expenditures in the amount of 149.7 billion pesos and distributed 52.1 billion pesos to shareholders, including 35.0 billion pesos via share buybacks. In addition we acquired minority interests and subscribed new equity in the aggregate amount of 10.2 billion pesos. Furthermore, we contributed 16.3 billion pesos to our pension funds.

 

 

Mexico

 

The Mexican economy observed a moderate rate of growth in 2014. We expect it to be around 2%, but is set to increase this year in spite of falling oil prices and may turn out to be around 50% higher than it was last year. The base is there to support higher growth rates, given the investments by the private sector in energy, petrochemicals, telecoms, infrastructure and housing, among others.

 

We added nearly one million wireless subscribers in the fourth quarter to finish December with 71.5 million wireless subs, with our postpaid base adding 161 thousand subscribers in the quarter for a 6% year-on-year increase. On the fixed platform, we ended the year with 13.1 million fixed lines, including social telephony, and 9.2 million broadband accesses. 

 


 
 

 

In August the new Federal Telecommunications Law took effect. It calls for the elimination of national roaming charges for all operators and asymmetric interconnection rates for Telcel, with Telcel continuing to pay its competitors interconnection charges but not being able to charge them at all for the same service. We have sought an injunction against this measure. Shortly after the Law was passed, the two undercapitalized operators with limited capacity to invest—Iusacell and Nextel—that were to take advantage of the unusual assymetric measures imposed on us were put up for sale. AT&T acquired Iusacell and has announced an agreement to acquire Nextel.

The economic impact of the measures enacted was offset by the continued expansion of our mobile data services and a reduced support on the sale of handsets on our part relative to what we had been providing in the market for some months.

 

Given the operational problems experienced by some of our competitors there has been a major change in the setup of competitors we face in the mobile sector in Mexico.  There are now three important operators with global scale participating in the sector, which points the way towards greater investments and a rapid development of the telecommunications sector in our country: AT&T, the telecoms firm with more revenues worldwide, that has acquired Iusacell and has announced an agreement to acquire Nextel, which will be integrated into its own network in the U.S.; Telefónica, with a strong presence in Latin America and Europe; and Telcel. According to the Ministry of Communications, in addition to these three operators there will be a new entity with participation of the Federal Government, mandated to begin operations by 2018. It will offer a shared wholesale network that may be used by MVNOs that seek to compete with AT&T, Telefónica and Telcel. Telefónica has more customers than AT&T in Mexico but AT&T’s revenues are higher.

 

Revenues from our Mexican operations reached 72.9 billion pesos in the fourth quarter. They were up 1.8% relative to the year-earlier quarter on the back of equipment revenues that increased 16.0%; service revenues declined 1.2%. Wireless voice revenues plummeted 14.7%, with the average price per minute falling 15.2% in peso terms to end at a figure equivalent to 2 dollar cents. Wireless data revenues were up 12.9% as we continued to increase the penetration of data services throughout the country on the back of a more comprehensive 3G and 4G footprint. As for our fixed line revenues, they were up 3.1%, with voice revenues coming down 5.1% and those from broadband and corporate data services expanding 12.6% year-on-year.

 

EBITDA increased 4.4% year-on-year to 31.0 billion pesos. The increase in EBITDA resulted from the implementation of policies aimed at decreasing operational costs and of a more conservative commercial approach, including a reduced support on the sale of handsets.

 

A series of additional regulatory measures are being implemented in 2015 for all firms, one of the more relevant of which is that there will be no more charges for domestic long distance service beginning January 1st in the interest of our customers.

 

INCOME STATEMENT (IFRS) - Mexico Millions of MxP

 

4Q14

4Q13

Var.%

Jan - Dec 14

Jan - Dec 13

Var.%

Total Revenues

72,850

71,574

1.8%

278,050

275,597

0.9%

Total Service Revenues

58,349

59,075

-1.2%

235,930

235,316

0.3%

Wireless Revenues

46,974

47,379

-0.9%

179,155

179,353

-0.1%

Service Revenues

33,782

35,950

-6.0%

142,638

144,125

-1.0%

Equipment Revenues

12,915

11,014

17.3%

36,099

34,558

4.5%

Fixed Line and Other Revenues

27,237

26,423

3.1%

106,328

104,477

1.8%

EBITDA

31,032

29,735

4.4%

121,851

120,970

0.7%

% total revenues

42.6%

41.5%

 

43.8%

43.9%

 

EBIT

24,677

23,471

5.1%

96,654

95,944

0.7%

%

33.9%

32.8%

 

34.8%

34.8%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 


 
 

 

 

Mexico Operating Data (IFRS)

 

4Q14

4Q13

Var.%

Wireless Subscribers (thousands)

71,463

73,505

-2.8%

Postpaid

9,956

9,393

6.0%

Prepaid

61,507

64,112

-4.1%

MOU

263

271

-2.8%

ARPU (MxP)

159

165

-3.3%

Churn (%)

4.3%

4.3%

0.0

Revenue Generating Units (RGUs) *

 

22,250

22,452

-0.9%

* Fixed Line and Broadband

 

 

 

Argentina, Paraguay and Uruguay

 

Our combined operations ended December with 22 million wireless subscribers, practically flat on the quarter and slightly down on the year. In addition to these we had 595 thousand fixed RGUs, 8.7% more than a year ago.

 

The quarter’s revenues reached 6.6 billion Argentinean pesos and were up 34.6% on an annual basis. Wireless service revenues rose 23.9% on the back of data revenues that expanded 39.2% in the period. Fixed line revenues totaled 424 million Argentinean pesos and exceeded by 30.7% those obtained a year before.

 

EBITDA for the quarter came in at 2.3 billion Argentinean pesos and were equivalent to 35.3% of revenues, 3.7 percentage points more than in the year-earlier quarter. It was up 50.3% year-on-year.

 

In the fourth quarter we were granted the use of 20 MHz of spectrum nationwide in the 1,700 MHz band as well as 30 MHz in the 700 MHz band to provide 4G LTE services in the country. In addition to these, we were also awarded the use of certain blocks of 5 or 10 MHz of spectrum in the 1,800 MHz band to strengthen our 3G offer.

 

INCOME STATEMENT (IFRS) - Argentina, Paraguay & Uruguay Millions of ARP

 

4Q14

4Q13

Var.%

Jan - Dec 14

Jan - Dec 13

Var.%

Total Revenues

6,625

4,923

34.6%

24,005

17,581

36.5%

Total Service Revenues

4,950

3,958

25.1%

18,305

14,619

25.2%

Wireless Revenues

6,235

4,627

34.7%

22,531

16,568

36.0%

Service Revenues

4,530

3,655

23.9%

16,774

13,594

23.4%

Equipment Revenues

2

1

73.4%

6

3

92.5%

Fixed Line and Other Revenues

424

324

30.7%

1,615

1,139

41.8%

EBITDA

2,336

1,554

50.3%

7,970

5,675

40.5%

% total revenues

35.3%

31.6%

 

33.2%

32.3%

 

EBIT

1,891

1,233

53.4%

6,550

4,597

42.5%

%

28.6%

25.0%

 

27.3%

26.2%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 


 
 

 

 

Argentina, Paraguay & Uruguay Operating Data (IFRS)

 

4Q14

4Q13

Var.%

Wireless Subscribers (thousands)

22,000

22,218

-1.0%

Postpaid

2,789

2,947

-5.4%

Prepaid

19,211

19,270

-0.3%

MOU

137

147

-6.9%

ARPU (ARP)

69

55

24.7%

Churn (%)

2.2%

1.9%

0.2

Revenue Generating Units (RGUs) *

 

595

548

8.7%

* Fixed Line, Broadband and PayTV.

 

 

 

 

Brazil

 

We ended the year with 107.2 million accesses in Brazil, 5.7% more than in 2013. This figure includes 71.1 million wireless subscribers; it was up 3.5% year-on-year with the postpaid segment expanding 9.3%. Wireless net additions were 1.5 million in the quarter—a third of which were postpaid—bringing the year’s total to 2.4 million. On the fixed line side, RGUs were up 10.4% to 36.1 million, with the number of PayTV units climbing 10.4%, broadband accesses 13.6% and wire-lines 8.7%.

 

At 9.3 billion reais, fourth quarter revenues increased 5.6% year-on-year, with service revenues rising 6.3% and equipment revenues declining 6.9%. Mobile data revenues climbed 32.2% and those deriving from fixed data usage 15.3%, whereas PayTV revenues rose 12.5%. Voice revenues declined in both platforms. Nearly two thirds of our Brazilian revenues originate in the fixed line platform.

 

Whereas the reduction of interconnection rates had an impact on our gross revenues, it had an even greater one on our payments to other networks. Thus, in net terms, our interconnection revenues actually increased 29% from the year before.

 

 

Fourth quarter EBITDA totaled 2.3 billion reais, rising 6.5% year-on-year in spite of the solid growth of our client base. The EBITDA margin stood at 24.9% of revenues, somewhat higher than in the year-earlier quarter.

 

At the end of 2014, Claro, Embratel and Net Serviços were fully merged into one single entity, Claro S.A. This was a complex project that had to integrate systems and platforms, processes and personnel. This will result in operational efficiencies and greater benefits for our clients.

 

INCOME STATEMENT (IFRS) - Brazil Millions of BrL

 

4Q14

4Q13

Var.%

Jan - Dec 14

Jan - Dec 13

Var.%

Total Revenues

9,285

8,794

5.6%

35,603

33,197

7.2%

Total Service Revenues

8,822

8,297

6.3%

34,151

31,857

7.2%

Wireless Revenues

3,593

3,669

-2.1%

13,661

13,305

2.7%

Service Revenues

3,146

3,186

-1.3%

12,250

12,018

1.9%

Equipment Revenues

448

481

-6.9%

1,403

1,279

9.7%

Fixed Line and Other Revenues

6,099

5,581

9.3%

23,532

21,270

10.6%

EBITDA

2,314

2,174

6.5%

9,001

7,873

14.3%

% total revenues

24.9%

24.7%

 

25.3%

23.7%

 

EBIT

457

388

17.7%

1,743

1,408

23.8%

%

4.9%

4.4%

 

4.9%

4.2%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 


 
 

 

 

Brazil Operating Data (IFRS)

 

4Q14

4Q13

Var.%

Wireless Subscribers (thousands)

71,107

68,704

3.5%

Postpaid

15,652

14,318

9.3%

Prepaid

55,455

54,386

2.0%

MOU

123

137

-10.6%

ARPU (BrL)

15

16

-4.4%

Churn (%)

3.2%

3.6%

(0.4)

Revenue Generating Units (RGUs) *

 

36,096

32,683

10.4%

* Fixed Line, Broadband and Television

 

 

 

Chile

 

Our wireless base ended December with 5.8 million clients after net gains of 77 thousand subs in the quarter. Whereas the total subscriber base declined as compared to that of the prior year, on the postpaid segment we registered an increase of 4.3%. Fixed RGUs, 1.2 million, were up 5.5% relative to 2013.

 

Fourth quarter revenues of 193.7 billion Chilean pesos declined 7.8% in annual terms with wireless service revenues dropping 16.8% on the back of mobile termination rate cuts. These led to the virtual elimination of our net interconnection revenues. Data revenues were up slightly more than 15% in both platforms. Altogether fixed line revenues expanded 17.4% to 68.8 billion Chilean pesos and now account for 33.9% of our Chilean revenues.

 

EBITDA shot up 3.5 times compared to the last quarter of 2013 mostly as a result of sharp reductions in overall subscriber acquisition costs.

 

INCOME STATEMENT (IFRS) - Chile Millions of ChPL

 

4Q14

4Q13

Var.%

Jan - Dec 14

Jan - Dec 13

Var.%

Total Revenues

193,742

210,073

-7.8%

737,643

786,220

-6.2%

Total Service Revenues

159,562

175,485

-9.1%

639,756

675,101

-5.2%

Wireless Revenues

134,302

153,920

-12.7%

503,978

571,174

-11.8%

Service Revenues

99,347

119,366

-16.8%

405,644

460,068

-11.8%

Equipment Revenues

34,180

34,587

-1.2%

97,888

111,119

-11.9%

Fixed Line and Other Revenues

68,758

58,569

17.4%

257,612

224,985

14.5%

EBITDA

9,425

2,726

245.7%

48,914

28,998

68.7%

% total revenues

4.9%

1.3%

 

6.6%

3.7%

 

EBIT

-42,888

-44,096

2.7%

-142,334

-152,043

6.4%

%

-22.1%

-21.0%

 

-19.3%

-19.3%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 


 
 

 

 

Chile Operating Data (IFRS)

 

4Q14

4Q13

Var.%

Wireless Subscribers (thousands)

5,754

5,948

-3.3%

Postpaid

1,364

1,309

4.3%

Prepaid

4,390

4,640

-5.4%

MOU

172

205

-16.2%

ARPU (ChP)

5,861

6,743

-13.1%

Churn (%)

6.4%

5.3%

1.1

Revenue Generating Units (RGUs) *

 

1,231

1,167

5.5%

* Fixed Line, Broadband and Television

 

 

 

Colombia

 

After gaining 485 thousand new subs in the quarter we ended 2014 with nearly 30 million subscribers in Colombia, 2.8% more than a year before. On the fixed-line segment, we had 5.3 million RGUs, 11.8% more than in the year-earlier quarter, with the number of fixed lines and broadband accesses increasing 16.1% and 18.3%, respectively.

 

Fourth quarter revenues were up 6.3% annually and topped three trillion Colombian pesos, with service revenues practically flat in the period and equipment revenues soaring 40.4%, which reflect among other things the sale of over 250 thousand tablets under a government mandate that specifies the provision of certain subsidies.

 

Data revenues showed solid improvements in both the fixed and the wireless platforms, growing 11.7% in the former and 9.0% in the latter, and with PayTV revenues climbing 14.3%. Wireless voice revenues declined 7.2% relative to the year before with the average price per minute dropping 14.7% and MOUs jumping 5.3% to 227 minutes, the highest ever in the country. Fixed voice revenues, on the other hand, increased 5.4% year-on-year. The share of revenues originating in the fixed line platform increased to 20.3%.

 

EBITDA came in at 1.1 trillion Colombian pesos and was down 8.8% from the year-earlier quarter. The EBITDA margin for the period came in at 35.5% of revenues.

 

As part of the agreement reached in March 2014 for the renewal of the concession, we have booked costs linked to the sale of subsidized tablets and other telecom equipment.

 

INCOME STATEMENT (IFRS) - Colombia Billions of COP

 

4Q14

4Q13

Var.%

Jan - Dec 14

Jan - Dec 13

Var.%

Total Revenues

3,050

2,869

6.3%

11,391

10,827

5.2%

Total Service Revenues

2,409

2,412

-0.1%

9,533

9,471

0.7%

Wireless Revenues

2,433

2,307

5.5%

9,037

8,687

4.0%

Service Revenues

1,783

1,842

-3.2%

7,144

7,297

-2.1%

Equipment Revenues

641

457

40.4%

1,858

1,356

37.0%

Fixed Line and Other Revenues

618

550

12.3%

2,357

2,098

12.4%

EBITDA

1,081

1,186

-8.8%

4,448

4,788

-7.1%

% total revenues

35.5%

41.3%

 

39.0%

44.2%

 

EBIT

696

828

-15.9%

3,000

3,435

-12.6%

%

22.8%

28.9%

 

26.3%

31.7%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 


 
 

 

 

Colombia Operating Data (IFRS)

 

4Q14

4Q13

Var.%

Wireless Subscribers* (thousands)

29,776

28,977

2.8%

Postpaid

5,861

5,715

2.6%

Prepaid

23,914

23,263

2.8%

MOU

227

216

5.3%

ARPU (COP)

20,119

21,399

-6.0%

Churn (%)

4.3%

4.0%

0.4

Revenue Generating Units (RGUs)**

 

5,307

4,749

11.8%

*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

** Fixed Line, Broadband and Television

 

 

Ecuador

 

We finished the year with 343 thousand fixed RGUs, 10.5% more than in 2013, and 11.7 million wireless subscribers after disconnecting in the quarter 508 thousand clients that were not generating traffic. Our postpaid subscriber base was up 4.9% on the year.

 

Fourth quarter revenues totaled 438 million dollars, slightly less than a year before, with equipment revenues declining 8.3%—mostly on account of restrictions on the import of handset devices—and service revenues increasing 0.5% supported by mobile data revenues. Fixed line revenues increased 8.9% from a year before but still represent less than 5% of revenues.

 

EBITDA of 188 million dollars was 0.3% above that of the year-earlier quarter.

 

We continue to show a positive balance from mobile number portability.

 

INCOME STATEMENT (IFRS) - Ecuador Millions of Dollars

 

4Q14

4Q13

Var.%

Jan - Dec 14

Jan - Dec 13

Var.%

Total Revenues

438

441

-0.8%

1,726

1,721

0.3%

Total Service Revenues

382

380

0.5%

1,521

1,476

3.1%

Wireless Revenues

425

429

-0.9%

1,674

1,672

0.1%

Service Revenues

370

368

0.5%

1,470

1,427

3.0%

Equipment Revenues

55

61

-9.6%

204

245

-16.9%

Fixed Line and Other Revenues

17

15

8.9%

64

57

10.9%

EBITDA

188

188

0.3%

782

757

3.4%

% total revenues

43.0%

42.6%

 

45.3%

44.0%

 

EBIT

139

136

2.4%

586

567

3.3%

%

31.8%

30.8%

 

34.0%

33.0%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 


 
 

 

 

Ecuador Operating Data (IFRS)

 

4Q14

4Q13

Var.%

Wireless Subscribers (thousands)

11,772

12,031

-2.2%

Postpaid

2,420

2,306

4.9%

Prepaid

9,352

9,725

-3.8%

MOU

152

155

-2.0%

ARPU (US$)

10

10

-1.7%

Churn (%)

4.4%

2.7%

1.6

Revenue Generating Units (RGUs) *

343

311

10.5%

* Fixed Line, Broadband and Television

 

 

 

 

 

Peru

 

Our wireless subscriber base finished December with 12.5 million wireless subscribers, 5.4% more than in the same period of the prior year, with our postpaid base rising 13.0%. We added 161 thousand new clients in the quarter of which 117 thousand were postpaid.  We are the leaders in terms of fixed number portability and we have signed-in with Claro almost 91% of the ported lines in the country.

 

In addition to our wireless subscribers we had 1.2 million fixed RGUs, 19.5% more than in the previous year. Broadband is the fastest growing product at 39.1%, while both fixed telephony and PayTV accesses were expanding 14%.

 

The quarter’s revenues were up 5.9% annually to 1.4 billion soles with service revenues increasing 7.4% on the back of 13.0% data growth. Fixed line revenues expanded 14.8% year-on-year and now account for 13.2% of our gross revenues.

 

EBITDA came down 15.9% from a year before to 395 million soles as the result of higher subscriber acquisition and retention costs, in a more aggressive competitive environment.

 

 


 
 

 

INCOME STATEMENT (IFRS) - Peru Millions of Soles

 

4Q14

4Q13

Var.%

Jan - Dec 14

Jan - Dec 13

Var.%

Total Revenues

1,381

1,304

5.9%

5,268

4,862

8.4%

Total Service Revenues

1,212

1,129

7.4%

4,597

4,252

8.1%

Wireless Revenues

1,198

1,145

4.7%

4,566

4,271

6.9%

Service Revenues

1,009

964

4.7%

3,862

3,652

5.8%

Equipment Revenues

166

173

-4.1%

661

595

11.1%

Fixed Line and Other Revenues

182

159

14.8%

702

591

18.8%

EBITDA

395

470

-15.9%

1,852

1,841

0.6%

% total revenues

28.6%

36.0%

 

35.2%

37.9%

 

EBIT

248

329

-24.7%

1,253

1,288

-2.8%

%

17.9%

25.2%

 

23.8%

26.5%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 

Peru Operating Data (IFRS)

 

4Q14

4Q13

Var.%

Wireless Subscribers (thousands)

12,498

11,855

5.4%

Postpaid

3,912

3,462

13.0%

Prepaid

8,586

8,394

2.3%

MOU

157

140

11.9%

ARPU (Sol)

27

28

-2.0%

Churn (%)

4.7%

3.7%

1.0

Revenue Generating Units (RGUs) *

 

1,233

1,032

19.5%

* Fixed Line, Broadband and Television

 

 

 

 

 

Central America and the Caribbean

 

At the end of 2014 we had 26 million access lines in the Central America-Caribbean block including 19.1 million wireless subscribers, 17.1% less than a year before after the net disconnection of 579 thousand subs in Guatemala in our move to unify standards in the region. In the fixed-line platform we had almost 7 million RGUs, 6.9% more than a year before, with PayTV-units increasing 13.2% and broadband accesses 8.0%.

 

Total revenues for the quarter of one billion dollars were 3.3% higher than in the year-earlier quarter. At constant exchange rates service revenues climbed 4.5%, their best rate in several quarters with mobile data revenues growing 8.0% and mobile voice 4.1% over the year. Fixed-line revenues continued to show a positive trend expanding 1.0%  helped along by Pay TV revenues that expanded 17.5%. Fixed data services rose 7.2%.

 

Fourth quarter EBITDA stood at 371 million dollars, 14.8% more than a year before with the EBITDA margin climbing 3.6 percentage points  to 36.2% as we implemented more stringent cost controls.

 

In January we were granted in Puerto Rico the use of 10MHz of spectrum in the 1,700MHz band at a cost of 170M dollars.

 


 
 

 

 

INCOME STATEMENT (IFRS) - Central America and The Caribbean Millions of Dollars

 

4Q14

4Q13

Var.%

Jan - Dec 14

Jan - Dec 13

Var.%

Total Revenues

1,023

991

3.3%

3,964

3,885

2.0%

Total Service Revenues

963

931

3.4%

3,759

3,682

2.1%

Wireless Revenues

620

592

4.8%

2,380

2,294

3.8%

Service Revenues

564

539

4.6%

2,195

2,117

3.7%

Equipment Revenues

55

52

4.6%

184

177

3.9%

Fixed Line and Other Revenues

405

401

1.0%

1,592

1,600

-0.5%

EBITDA

371

323

14.8%

1,366

1,292

5.7%

% total revenues

36.2%

32.6%

 

34.5%

33.2%

 

EBIT

117

71

66.5%

357

259

38.1%

%

11.5%

7.1%

 

9.0%

6.7%

 

*Total Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions; Wireless Revenues and Fixed Line and Other Revenues only exclude intercompany transactions with foreign subsidiaries. The sum of the parts will not equal Total Revenues.

 

Central America and The Caribbean Operating Data (IFRS)

 

4Q14

4Q13

Var.%

Wireless Subscribers (thousands)

19,065

22,985

-17.1%

Postpaid

3,456

3,162

9.3%

Prepaid

15,609

19,824

-21.3%

MOU

215

184

16.7%

ARPU (US$)

10

8

22.9%

Churn (%)

6.2%

4.3%

1.9

Revenue Generating Units (RGUs) *

 

6,953

6,504

6.9%

* Fixed Line, Broadband and Television

 

 

 

 

United States

 

Our subscriber base topped 26 million clients at the end of 2014, 9.9% more than a year before, after adding 101 thousand new subs in the last quarter.

 

Fourth quarter revenues of 1.8 billion dollars were up 13.8% year-on-year, with service revenues rising 12.1%. ARPU of 20 dollars was up 0.8% in annual terms, helped along by data revenue growth of 14.3%.

 

Our EBITDA totaled 72 million dollars in the period, which represented a 4.1% margin relative to revenues.

 

Tracfone entered into a settlement agreement with the Federal Trade Commission and other plaintiffs to settle charges on certain commercial and advertisement practices related to Tracfone’s unlimited data plans. Under the terms of the  agreement, Tracfone will pay 40 million dollars.

 

 


 
 

 

INCOME STATEMENT (IFRS) - United States Millions of Dollars

 

4Q14

4Q13

Var.%

Jan - Dec 14

Jan - Dec 13

Var.%

Total Revenues

1,756

1,543

13.8%

6,852

6,043

13.4%

Service Revenues

1,545

1,379

12.1%

6,153

5,363

14.7%

Equipment Revenues

211

164

28.2%

698

679

2.7%

EBITDA

72

119

-39.6%

655

548

19.6%

% total revenues

4.1%

7.7%

 

9.6%

9.1%

 

EBIT

55

107

-48.2%

613

508

20.6%

%

3.2%

6.9%

 

8.9%

8.4%

 

 

United States Operating Data (IFRS)

 

4Q14

4Q13

Var.%

Wireless Subscribers (thousands)

26,006

23,659

9.9%

MOU

531

521

2.0%

ARPU (US$)

20

20

0.8%

Churn (%)

4.2%

3.6%

0.6

 

 

 

Telekom Austria Group

 

Telekom Austria ended 2014 with 24.4 million access lines, practically flat over the year before; 20 million were wireless subscribers, including 5.4 million in Austria, 4.9 million in Belarus and 4.2 in Bulgaria.

 

Fourth quarter revenues were down 2.6% from the year-earlier quarter to 1.1 billion euros, with service revenues declining 4.0%. Nearly two thirds of the revenues originated in the wireless platform. As for their geographic distribution, 60.0% came from Austria, 10% from Belarus and 9.2% from each of Bulgaria and Croatia. Serbia, Slovenia and Macedonia together contributed the remaining 11.3% of revenues.

 

EBITDA was down 32.3% in the fourth quarter from the year before and now represents 16.5% of total revenues. The EBITDA figure was affected by one-time, non-cash adjustments mostly related to the calculation of pension benefits for civil servants. The new methodology for such calculation is being contested by the Austrian Government in the courts, so there is the possibility that eventually such charges could be reversed.

 

In November, Telekom Austria completed a one billion euros capital raising exercise. It has strengthened the financial position of the company, which had been downgraded by Moody’s and S&P in October 2013 and was in danger of losing its investment grade rating. The company now has Baa2 and BBB ratings with a stable outlook.

 

INCOME STATEMENT (IFRS) - Telekom Austria Group Millions of Euros

 

4Q14

4Q13

Var.%

Jan - Dec 14

Jan - Dec 13

Var.%

Total Revenues

1,058

1,086

-2.6%

4,137

4,271

-3.1%

Wireless Revenues

692

707

-2.1%

2,755

2,810

-2.0%

Service Revenues

554

595

-6.9%

2,336

2,453

-4.8%

Equipment Revenues

111

101

10.2%

337

325

3.8%

Fixed Line and Other Revenues

365

379

-3.5%

1,382

1,461

-5.4%

EBITDA

175

258

-32.3%

1,187

1,248

-4.8%

% total revenues

16.5%

23.8%

 

28.7%

29.2%

 

EBIT

-39

38

-202.9%

333

383

-13.1%

%

-3.7%

3.5%

 

8.0%

9.0%

 

 


 
 

 

 

Telekom Austria Group Operating Data (IFRS)

 

4Q14

4Q13

Var.%

Wireless Subscribers (thousands)

20,008

20,117

-0.5%

Postpaid

14,098

14,037

0.4%

Prepaid

5,910

6,081

-2.8%

MOU

302

302

-0.1%

ARPU (Euros)

10

10

-5.0%

Churn (%)

2.1%

2.2%

(0.1)

Revenue Generating Units (RGUs) *

 

4,402

4,212

4.5%

* Fixed Line, Broadband and Television

 

 

 

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. 
 
EDGE  Enhanced Data rates for GSM Evolution. A technology that gives GSM the capacity to handle data services for the third generation mobile telephony.
 
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.
 
Equity subscribers  Subscribers weighted by the economic interest held in each company.
 
GSM  Global System for Mobile communications. It is the world’s leading and fastest growing mobile standard. 
 
GPRS  General Packet Radio Service. Enables GSM networks to offer higher capacity, Internet-based-content and packet-based data services. It is a second generation technology.
 
 
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.
 
Market share  A company’s subscriber base divided by the total number of subscribers in that country.
 
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.
 
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.
 
 
Push-to-talk  Enables compatible mobile phones to function like two-way radios.
 
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. 

 

 

 


 
 

 

 

Exchange Rates Local Currency Units per USD

 

4Q14

4Q13

Var.%

Jan - Dec 14

Jan - Dec 13

Var.%

Mexico

 

 

 

 

 

 

EoP

14.72

13.08

12.6%

14.72

13.08

12.6%

Average

13.84

13.03

6.2%

13.30

12.77

4.2%

Brazil

 

 

 

 

 

 

EoP

2.66

2.34

13.4%

2.66

2.34

13.4%

Average

2.55

2.28

11.8%

2.35

2.16

9.1%

Argentina

 

 

 

 

 

 

EoP

8.55

6.52

31.1%

8.55

6.52

31.1%

Average

8.51

6.07

40.3%

8.12

5.48

48.2%

Chile

 

 

 

 

 

 

EoP

607

525

15.7%

607

525

15.7%

Average

598

516

15.9%

570

495

15.1%

Colombia

 

 

 

 

 

 

EoP

2,392

1,927

24.2%

2,392

1,927

24.2%

Average

2,172

1,913

13.5%

2,000

1,869

7.0%

Guatemala

 

 

 

 

 

 

EoP

7.60

7.84

-3.1%

7.60

7.84

-3.1%

Average

7.63

7.91

-3.5%

7.74

7.86

-1.6%

Honduras

 

 

 

 

 

 

EoP

21.66

20.74

4.4%

21.66

20.74

4.4%

Average

21.53

20.70

4.0%

21.14

20.50

3.1%

Nicaragua

 

 

 

 

 

 

EoP

26.60

25.33

5.0%

26.60

25.33

5.0%

Average

26.44

25.18

5.0%

25.96

24.72

5.0%

Costa Rica

 

 

 

 

 

 

EoP

546

508

7.4%

546

508

7.4%

Average

543

506

7.4%

545

506

7.8%

Peru

 

 

 

 

 

 

EoP

2.99

2.80

6.9%

2.99

2.80

6.9%

Average

2.93

2.78

5.3%

2.84

2.70

5.1%

Paraguay

 

 

 

 

 

 

EoP

4,629

4,585

1.0%

4,629

4,585

1.0%

Average

4,610

4,459

3.4%

4,460

4,298

3.8%

Uruguay

 

 

 

 

 

 

EoP

24.37

21.42

13.7%

24.37

21.42

13.7%

Average

24.15

21.45

12.6%

23.24

20.48

13.5%

Dominican Republic

 

 

 

 

 

 

EoP

44.43

42.87

3.6%

44.43

42.87

3.6%

Average

44.15

42.62

3.6%

43.59

41.83

4.2%

Austria & CEE

 

 

 

 

 

 

EoP

0.83

0.73

13.6%

0.83

0.73

13.6%

Average

0.80

0.73

9.1%

0.75

0.75

0.0%

 


 
 

 

 

 

4Q14

4Q13

Var.%

Jan - Dec 14

Jan - Dec 13

Var.%

USA

 

 

 

 

 

 

EoP

0.07

0.08

-11.2%

0.07

0.08

-11.2%

Average

0.07

0.08

-5.9%

0.08

0.08

-4.0%

Brazil

 

 

 

 

 

 

EoP

0.18

0.18

0.7%

0.18

0.18

0.7%

Average

0.18

0.17

5.3%

0.18

0.17

4.7%

Argentina

 

 

 

 

 

 

EoP

0.58

0.50

16.5%

0.58

0.50

16.5%

Average

0.62

0.47

32.0%

0.61

0.43

42.3%

Chile

 

 

 

 

 

 

EoP

41.2

40.1

2.8%

41.2

40.1

2.8%

Average

43.2

39.6

9.1%

42.9

38.8

10.6%