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 April 2010

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 Alberto 366, Colonia Anáhuac, 11320 México, D.F., México

(Address of principal executive offices)

 

 

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 the 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 the 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 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

 

 

 

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AMÉRICA MÓVIL’S FIRST QUARTER OF 2010

FINANCIAL AND OPERATING REPORT

Mexico City, April 29, 2010 - 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 first quarter of 2010.

 

•

In the first quarter of 2010 América Móvil added 5.5 million subscribers—41.3% more than last year—bringing to 206.4 million our wireless subscriber base. Our Brazilian operations gained 1.2 million subscribers, followed by Mexico, with 1.1 million and Tracfone in the US with just over a million. Several operations recorded higher subscriber gains than last year.

 

•

We had 3.8 million landlines in Central America and the Caribbean at the end of the quarter, for a total of 210.2 million lines in the Americas. Wireless penetration is estimated to have reached 92% in our region of operations (excluding the U.S.) at the end of March.

 

•

First quarter revenues of 98.7 billion pesos were up 9.8% year-on-year. Data revenues continued to grow rapidly and have reached 21.3% of service revenues. ARPUs increased in several countries.

 

•

Operating income grew 11.1% to 29.4 billion pesos. They were equivalent to nearly 30% of revenues.

 

•

Due to our lower level of net debt and substantial foreign exchange gains, our comprehensive financing cost came down by 38.2%.

 

•

We generated a net income of 16.9 billion pesos that was equivalent to 52 peso cents per share and 82 dollar cents per ADR.

 

•

Our net debt came down by 17.2 billion pesos in the quarter to 66.4 billion pesos in March. Our capital outlays totaled 10.8 billion pesos, half of which was linked to capital expenditures and the rest to share buybacks.

 

•

Our shareholders’ assembly on April 7th approved the payment of a 32 peso cents dividend per share. The dividend will be paid in equal installments in July and November. The assembly also approved the increase of 50 billion pesos in our fund for share buybacks.

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América Móvil Fundamentals

Mexican Pesos

 

		1Q10		1Q09		Var. %
EPS (Mex$)*		0.52		0.50		4.7	%
Earning per ADR (US$)**		0.82		0.71		15.5	%
Net Income (millions of Mex$ )		16,874		16,560		1.9	%
Operating Income (millions of Mex$)		29,398		26,470		11.1	%
Shares Outstanding as of March 31th (billion)		32.11		32.95		-2.6	%
ADRs Outstanding as of March 31th (millions) ***		575		627		-8.3	%

 

*	Net Income / Total Shares outstanding

**	20 shares per ADR

***	As per Bank of NY Mellon

Relevant Events

Beginning January 1st, 2010 América Móvil’s financial statements will be presented in accordance to International Financial Reporting Standards (IFRS) both at the consolidated and subsidiary levels. The move towards IFRS is mandatory for all Mexican listed companies, which are obliged to adopt them by January 1st, 2012 at the latest. The main change regarding the income statement is that revenues are now presented net of commissions to postpaid distributors and the cost of loyalty programs. All the information in this report, including the figures for the first quarter of 2009, was prepared under IFRS.

In March both Moody’s and Standard and Poor’s upgraded by one notch América Móvil’s credit ratings, to A2 and A- respectively. Fitch rates América Móvil at A-. All the agencies have our ratings today under a stable outlook.

Taking advantage of favorable market conditions, in March we placed 4 billion dollars of securities in an offering comprising five, ten and thirty-year notes in the U.S. market. This was the largest issue to date by a private sector company in the emerging markets space. Earlier in the quarter, we had issued debt securities in Mexico and Switzerland in the amount of 1.4 billion dollars equivalent.

América Móvil Subsidiaries & Affiliates as of March 2010

 

Country						Company		Business		Equity Participation			Consolidation Method
Subsidiaries
		-		Mexico		Telcel		wireless		100.0	%		Global Consolidation Method
		-		Argentina		Claro		wireless		100.0	%		Global Consolidation Method
		-		Brazil		Claro		wireless		99.4	%		Global Consolidation Method
		-		Chile		Claro		wireless		100.0	%		Global Consolidation Method
		-		Colombia		Comcel		wireless		99.4	%		Global Consolidation Method
		-		Dominicana		Claro		wireless, wireline		100.0	%		Global Consolidation Method
		-		Ecuador		Conecel		wireless		100.0	%		Global Consolidation Method
		-		El Salvador		Claro		wireless, wireline		95.8	%		Global Consolidation Method
		-		Guatemala		Claro		wireless, wireline		99.2	%		Global Consolidation Method
		-		Honduras		Claro		wireless, wireline		100.0	%		Global Consolidation Method
		-		Jamaica		Claro		wireless		99.4	%		Global Consolidation Method
		-		Nicaragua		Claro		wireless, wireline		99.5	%		Global Consolidation Method
		-		Panama		Claro		wireless		100.0	%		Global Consolidation Method
		-		Paraguay		Claro		wireless		100.0	%		Global Consolidation Method
		-		Peru		Claro		wireless		100.0	%		Global Consolidation Method
		-		Puerto Rico		Claro		wireless, wireline		100.0	%		Global Consolidation Method
		-		Uruguay		Claro		wireless		100.0	%		Global Consolidation Method
		-		USA		Tracfone		wireless		98.2	%		Global Consolidation Method
Affiliate
		-		Mexico		Telvista		other		45.0	%		Equity Method

---

Subscribers

We added 5.5 million subscribers—14.6% of them postpaid clients—in the first quarter of 2010, 41.3% more than in the same period of the prior year, as we continued with our focus on higher value clients. Brazil, Chile, Argentina, Colombia, Ecuador, Peru, Central America, and Tracfone, in the US all obtained higher net additions than in 2009. We finished the period with 206.4 million wireless subscribers, 10.6% more than a year before. In addition to these, we had 3.8 million fixed lines in Central America and the Caribbean taking the total to 210.2 million lines in the Americas.

Brazil came in first in terms of net adds with 1.2 million, followed closely by Mexico with 1.1 million subscribers and Tracfone, with just over one million subs. Our operations in Argentina and Peru both added close to 450 thousand subscribers, while Colombia gained 381 thousand new clients.

As of March we had 60.3 million subscribers in Mexico, 45.6 million in Brazil, 28.1 million in Colombia and 17.4 million in Argentina. Amongst the large Latin-American countries, Brazil grew the fastest in relative terms (15.1% year-on-year), followed by Argentina (10.1%), México (4.7%) and Colombia (4.1%). The most dynamic growth was observed in the US, where Tracfone’s subscriber base expanded by 31.4% year-on-year.

Wireless penetration is estimated to have reached nearly 92% in our region of operations (excluding the U.S.) at the end of the quarter.

Subscribers as of March 2010

Thousands

 

		Total(1)
Country		Mar’10		Dec’09		Var.%			Mar’09		Var.%
Mexico		60,265		59,167		1.9	%		57,533		4.7	%
Brazil		45,583		44,401		2.7	%		39,587		15.1	%
Chile		3,769		3,597		4.8	%		3,080		22.4	%
Argentina, Paraguay and Uruguay		18,686		18,236		2.5	%		17,066		9.5	%
Colombia and Panama		28,160		27,797		1.3	%		26,949		4.5	%
Ecuador		9,782		9,449		3.5	%		8,613		13.6	%
Peru		8,741		8,311		5.2	%		7,487		16.8	%
Central America		9,735		9,535		2.1	%		9,213		5.7	%
Caribbean		6,256		6,052		3.4	%		5,296		18.1	%
USA		15,452		14,427		7.1	%		11,759		31.4	%
Total Wireless		206,429		200,972		2.7	%		186,586		10.6	%
Central America		2,268		2,259		0.4	%		2,251		0.8	%
Caribbean		1,515		1,531		-1.0	%		1,590		-4.7	%
Total Fixed		3,783		3,789		-0.1	%		3,841		-1.5	%
Total Lines		210,213		204,761		2.7	%		190,427		10.4	%

 

(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. Total wireless historical data does not include recent acquisitions.

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América Móvil Consolidated Results

With the economic recovery throughout the Americas helping to reaccelerate consumer spending and subscriber growth, and with the secular trend towards the increased use of data services still very much in evidence, América Móvil´s operations exhibited a strong performance in the first quarter.

First quarter revenues—now presented under International Financial Reporting Standards (IFRS) for both 2010 and 2009—rose 9.8% from a year before to 98.7 billion pesos, with equipment revenues increasing 15.1% buoyed by the fast pace of net subscriber additions and service revenues climbing 9.2%. The latter figure would have been a point higher had the exchange rates remained constant throughout the quarter, which speaks to the strength of revenue growth in local currencies. Data services continued to increase their share of service revenues, which hit 21.3% in the quarter vs. 16.4% in the year-earlier quarter.

Depreciation and amortization charges totaled 13.0% of revenues, having risen 15.7% from a year before mostly as a result of faster depreciation of network equipment in Brazil. Operating income increased 11.1% to 29.4 billion pesos, a figure that was just shy of 30% of revenues.

America Movil’s Income Statement (IFRS)

Millions of MxP

 

		1Q10			1Q09			Var.%
Net Service Revenues		87,641			80,279			9.2	%
Equipment Revenues		11,039			9,588			15.1	%
Total Revenues		98,680			89,867			9.8	%
Cost of Service		23,178			20,637			12.3	%
Cost of Equipment		17,958			17,474			2.8	%
Selling, General & Administrative Expenses		14,123			13,141			7.5	%
Others		1,136			1,012			12.3	%
Total Costs and Expenses		56,396			52,263			7.9	%
Depreciation & Amortization		12,886			11,133			15.7	%
Operating Income		29,398			26,470			11.1	%
% of Total Revenues		29.8	%		29.5	%
Net Interest Expense		1,336			1,659			-19.5	%
Other Financial Expenses		2,864			-594			n.m.
Foreign Exchange Loss		-2,165			2,229			-197.1	%
Comprehensive Financing Cost (Income)		2,036			3,295			-38.2	%
Income & Deferred Taxes		10,485			6,656			57.5	%
Net Income before Minority Interest and Equity		16,878			16,519			2.2	%
Participation in Results of Affiliates
minus
Equity Participation in Results of Affiliates		11			60			-81.3	%
Minority Interest		-15			-19			19.8	%
Net Income		16,874			16,560			1.9	%

n.m. Not meaningful

---

Balance Sheet (in accordance with IFRS)

América Móvil Consolidated

Millions of Mexican Pesos

 

		Mar ‘10		Dec ‘09		Var.%					Mar ‘10		Dec ‘09		Var.%
Current Assets									Current Liabilities
Cash & Securities		114,017		27,446		315.4	%		Short Term Debt**		7,347		9,168		-19.9	%
Accounts Receivable		50,556		55,927		-9.6	%		Accounts Payable		89,269		95,924		-6.9	%
Other Current Assets		7,940		3,189		149.0	%		Other Current Liabilities		36,907		35,642		3.5	%
Inventories		19,677		21,536		-8.6	%				133,523		140,734		-5.1	%
		192,190		108,098		77.8	%
Non Current Assets
Plant & Equipment		210,017		224,740		-6.6	%
Investments in Affiliates		969		975		-0.6	%		Non Current Liabilities
									Long Term Debt		173,066		101,741		70.1	%
									Other Non Current Liabilities		25,791		25,233		2.2	%
Deferred Assets											198,857		126,975		56.6	%
Goodwill (Net)		45,861		45,805		0.1	%
Intangible		41,436		45,822		-9.6	%
Deferred Assets		22,083		21,170		4.3	%		Shareholder’s Equity		180,175		178,901		0.7	%
Total Assets		512,555		446,610		14.8	%		Total Liabilities and Equity		512,555		446,610		14.8	%

 

**	Includes current portion of Long Term Debt

Our comprehensive financing costs totaled 2.0 billion pesos, having come down by 38.2% from the previous year as a result of a lower level of net debt and foreign exchange gains stemming mostly from the appreciation of the Mexican peso vs. the dollar.

We obtained net income of 16.9 billion pesos in the quarter, slightly higher than the one seen a year before. It was equivalent to 52 peso cents per share and 82 dollar cents per ADR. These figures were up 4.7% and 15.5% year-on-year.

Our net debt came down by 17.2 billion pesos in the quarter to 66.4 billion pesos, even after capital expenditures and share repurchases of 5.4 billion pesos each.

By the end of March, we had finished approximately 95% of the international transport network for voice and data we have been building in various countries. This new network will allow us to improve the quality and the cost of various services, particularly as regards long distance and data traffic.

Financial Debt of América Móvil*

Millions of U.S. Dollars

 

		Mar-10		Dec-09
Peso Denominated Debt		3,315		2,019
Bonds and other securities		3,315		2,019
Banks and others		0		0
U.S. Dollar—denominated debt		8,618		4,365
Bonds and other securities		7,952		3,952
Banks and others		666		413
Debt denominated in other currencies		2,541		2,109
Bonds and other securities		665		788
Banks and others		1,877		1,321
Total Debt		14,475		8,493
Short term debt and current portion of long-term debt		589		702
Long-term debt		13,885		7,791

 

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

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Mexico

Net subscriber additions came in at 1.1 million in the first quarter, with postpaid subs accounting for a quarter of them. At the end of March we had 60.3 million subs in Mexico, 4.7% more than in the year-earlier quarter.

First quarter revenues expanded 10.3% annually to 35.2 billion pesos, with equipment revenues jumping 24.1% and service revenues rising 7.9% on the back of data revenues that soared 28.7% as the demand for data services continues to take hold. ARPU was up 3.1% to 163 from 158 the previous year. The average price per minute declined 9.5% year-on-year to 4.8 dollar cents, helping bring about an 8.3% increase in MOUs; for the first time they broke through 200 minutes per month.

In March, Teligen, the company that acts as the database provider of the OECD on telecom pricing, released its Teligen Baskets report—the one on which the OECD’s analysis are based—with information as of February 2010. According to this report, in the case of the OECD´s prepaid basket Telcel’s plans are the second cheapest in US dollar terms among the 30 countries that make up that Organization and the seventh cheapest in the OECD’s PPP units (Purchasing Power Parity). Approximately 91% of Telcel’s subscribers are prepaid customers.

On April 10th the period set by Cofetel for the registry of wireless subscribers expired. On acount of existing regulations, Telcel had to proceed with the suspension of service to those subscribers that had not yet registered. However, this requirement has been temporarily waived so as to not affect the communications services of many of our clients. Telcel remains fully supportive of the regulation and is actively reminding its clients that they need to register. To date, the majority of Telcel’s clients have already registered.

INCOME STATEMENT (IFRS)

Mexico

Millions of MxP

 

		1Q10			1Q09			Var.%
Revenues		35,194			31,905			10.3	%
Operating Income		17,961			16,251			10.5	%
%		51.0	%		50.9	%

Mexico Operating Data

 

		1Q10			1Q09			Var.%
Wireless Subscribers (thousands)		60,265			57,533			4.7	%
Postpaid		5,491			4,346			26.3	%
Prepaid		54,774			53,187			3.0	%
MOU		201			185			8.3	%
ARPU (MxP)*		163			158			3.1	%
Churn (%)		3.2	%		3.1	%		0.0

 

*	These figures are presented under IFRS. Under local GAAP, ARPUs would have been 174 pesos and 168 pesos for 1Q10 and 1Q09, respectively

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Argentina, Paraguay & Uruguay

Our combined subscriber base in Argentina Paraguay and Uruguay ended the quarter with 18.7 million subscribers. It was up 9.5% in annual terms. Net additions came in at 451 thousand, of which 27% were postpaid. Argentina has the highest penetration rate in the Americas: it is estimated to have reached 126% at the end of March. This notwithstanding, our net additions in Argentina were still higher than those of a year ago.

Revenues for the quarter, 2.2 billion Argentinean pesos, were 18.3% greater than those of 2009, as service revenues expanded 23.0% in the period. The dynamism of data revenues continued as they climbed 18.7% on an annual basis fueling a 12.8% increase in ARPU year-on-year: The latter also benefited from an important increase in voice revenues.

INCOME STATEMENT (IFRS)

Argentina, Uruguay & Paraguay

Millions of ARP

 

		1Q10			1Q09			Var.%
Revenues		2,184			1,846			18.3	%
Operating Income		768			479			60.1	%
%		35.1	%		26.0	%

Argentina, Uruguay & Paraguay Operating Data

 

		1Q10			1Q09			Var.%
Wireless Subscribers (thousands)		18,686			17,066			9.5	%
Postpaid		2,441			2,205			10.7	%
Prepaid		16,246			14,862			9.3	%
MOU		130			134			-2.4	%
ARPU (ARP)*		35			31			12.8	%
Churn (%)		1.9	%		2.2	%		(0.3	)

 

*	These figures are presented under IFRS. Under local GAAP, ARPUs would have been 38 Argentinean pesos and 34 Argentinean pesos for 1Q10 and 1Q09, respectively.

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Brazil

We gained 1.2 million clients in Brazil in the first quarter, 38.2% more than in the same period of 2009, to finish the quarter with 45.6 million subs, which represents an increase of 15.1% year-on-year.

Revenues of 2.8 billion reais exceeded by 3.3% those of the year-earlier quarter. Service revenues rose at a somewhat faster rate on the back of a 44.4% increase in data revenues which helped compensate a slight reduction in voice revenues. ARPU fell 8.7% to 20 reais, partly as a result of prices per minute falling 19.6%

INCOME STATEMENT (IFRS)

Brazil

Millions of BrL

		1Q10			1Q09			Var.%
Revenues		2,769			2,681			3.3	%
Operating Income		182			220			-17.6	%
%		6.6	%		8.2	%

Brazil Operating Data

 

		1Q10			1Q09			Var.%
Wireless Subscribers (thousands)		45,583			39,587			15.1	%
Postpaid		8,758			8,148			7.5	%
Prepaid		36,825			31,439			17.1	%
MOU		92			85			8.2	%
ARPU (BrL)*		20			22			-8.7	%
Churn (%)		2.8	%		2.5	%		0.3

 

*	These figures are presented under IFRS. Under local GAAP, ARPUs would have been 20 reais and 23 reais for 1Q10 and 1Q09, respectively.

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Chile

At 171 thousand, our net additions in the first quarter more than doubled those of the year-earlier quarter bringing to 3.8 million our subscriber base. Whereas the latter expanded by 22.4% in annual terms, our postpaid subscriber base increased 42.7%. Approximately one fourth of the net additions of the quarter were postpaid.

Revenues were up 23.1% from a year before to 72.2 billion Chilean pesos. Service revenues expanded 13.8% in the period as data revenues nearly doubled.

On February 7th Chile was struck by an earthquake that produced severe damages in the country. We were able to restore communications in a relatively short period of time.

INCOME STATEMENT (IFRS)

Chile

Millions of ChP

		1Q10			1Q09			Var.%
Revenues		72,158			58,641			23.1	%
Operating Income		-9,695			-9,723			0.3	%
%		-13.4	%		-16.6	%

Chile Operating Data

 

		1Q10			1Q09			Var.%
Wireless Subscribers (thousands)		3,769			3,080			22.4	%
Postpaid		571			400			42.7	%
Prepaid		3,198			2,679			19.3	%
MOU		170			142			19.3	%
ARPU (ChP)*		5,122			5,350			-4.3	%
Churn (%)		3.9	%		3.5	%		0.4

 

*	These figures are presented under IFRS. Under local GAAP, ARPUs would have been 6,048 Chilean pesos and 6,263 Chilean pesos for 1Q10 and 1Q09, respectively.

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Colombia and Panama

We finished the quarter with 28.2 million subscribers in Colombia-Panama after adding 363 thousand new clients in those countries. Postpaid net additions were 54.4% greater than those gained in the first quarter of 2009 and represent a fifth of the period’s net adds. Our subscriber base was up 4.5% relative to last year.

We generated revenues of 1.5 trillion Colombian pesos in the first quarter that were flat year-on-year. Data continues to gain traction with revenue growth of 92.7% from the prior year. Our average price per minute of voice came down by 20.7% and was not fully compensated by the associated 14.8% increase in MOUs, but the ARPU remained firm thanks to the great growth of data revenues.

INCOME STATEMENT (IFRS)

Colombia and Panama

Billions of COP

		1Q10			1Q09			Var.%
Revenues		1,463			1,463			0.0	%
Operating Income		542			460			17.9	%
%		37.0	%		31.4	%

Colombia and Panama Operating Data

 

		1Q10			1Q09			Var.%
Wireless Subscribers (thousands)		28,160			26,949			4.5	%
Postpaid		4,039			3,699			9.2	%
Prepaid		24,121			23,250			3.7	%
MOU		186			162			14.8	%
ARPU (COP)*		15,707			15,955			-1.5	%
Churn (%)		3.5	%		3.4	%		0.1

 

*	These figures are presented under IFRS. Under local GAAP, ARPUs would have been 16,545 Colombian pesos and 16,700 Colombian pesos for 1Q10 and 1Q09, respectively

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Ecuador

After adding 333 thousand new subscribers in the first quarter of the year—7.8% more than in the prior year—our subscriber base reached almost 10 million, a 13.6% increase over the previous year. Postpaid subs increased somewhat more rapidly (16.1%).

Our first quarter revenues, 286 million dollars, were up 8.7% year-over-year, with service revenues rising 10.4%. Data revenues increased 31.9% and now account for just over a fourth of service revenues. The average price per minute of voice came down sharply (27.8%) helping bring about a 27.8% increase in minutes of use per subscriber.

INCOME STATEMENT (IFRS)

Ecuador

Millions of Dollars

		1Q10			1Q09			Var.%
Revenues		286			263			8.7	%
Operating Income		102			88			16.4	%
%		35.7	%		33.3	%

Ecuador Operating Data

 

		1Q10			1Q09			Var.%
Wireless Subscribers (thousands)		9,782			8,613			13.6	%
Postpaid		1,119			964			16.1	%
Prepaid		8,663			7,649			13.2	%
MOU		106			83			27.8	%
ARPU (US$)*		8			9			-2.7	%
Churn (%)		1.5	%		1.4	%		0.1

 

*	These figures are presented under IFRS. Under local GAAP, ARPUs would have been 9 dollars and 9 dollars for 1Q10 and 1Q09, respectively.

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Peru

Net additions for the quarter, 430 thousand, exceeded by almost 40% those of a year ago. They brought our subscriber base to 8.7 million subscribers, which represented a 16.8% increase year-on-year.

Revenues reached 654 million soles in the first three months of the year. They were up 19.4% from a year before on the back of service revenues that jumped 22.7%, led by data revenues that expanded 73.6%. The growth of data revenues was key in bringing about a 5.9% jump in ARPU.

Few months after number portability was implemented in Peru, Claro is a net gainer of ported numbers by a wide margin.

INCOME STATEMENT (IFRS)

Peru

Millions of Soles

 

		1Q10			1Q09			Var.%
Revenues		654			548			19.4	%
Operating Income		221			133			65.9	%
%		33.8	%		24.3	%

Peru Operating Data

 

		1Q10			1Q09			Var.%
Wireless Subscribers (thousands)		8,741			7,487			16.8	%
Postpaid		950			833			14.1	%
Prepaid		7,791			6,654			17.1	%
MOU		95			112			-14.6	%
ARPU (Sol)*		22			21			5.9	%
Churn (%)		2.7	%		3.2	%		(0.5	)

 

*	These figures are presented under IFRS. Under local GAAP, ARPUs would have been 22 soles and 21 soles for 1Q10 and 1Q09, respectively.

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Central America

Our combined subscriber base in Central America ended March with 9.7 million subscribers after gaining 200 thousand new clients in the period. Net additions more than tripled as compared to those of last year. We also had a total of 2.3 million landlines in this region.

First quarter revenues came in at 332 million dollars, slightly less than in the year-earlier quarter, with wireless service revenues staying firm in spite of the significant reduction in the average revenue per minute (-22.9%) thanks to data revenue growth.

INCOME STATEMENT (IFRS)

Central America Consolidated

Millions of Dollars

 

		1Q10			1Q09			Var.%
Revenues		332			342			-2.9	%
Operating Income		47			59			-20.6	%
%		14.0	%		17.2	%

Central America Operating Data

 

		1Q10			1Q09			Var.%
Wireless Subscribers (thousands)		9,735			9,213			5.7	%
Postpaid		473			436			8.6	%
Prepaid		9,262			8,777			5.5	%
Fixed Lines (thousands)		2,268			2,251			0.8	%
Total Lines (Wireless + Fixed, 000’s)		12,004			11,463			4.7	%
MOU		126			106			18.8	%
ARPU (US$)*		6			6			-5.0	%
Churn (%)		2.2	%		2.2	%		0.0

 

*	These figures are presented under IFRS. Under local GAAP, ARPUs would have been 6 dollars and 6 dollars for 1Q10 and 1Q09, respectively.

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Caribbean

Our subscriber base ended March with 6.3 million subscribers—it was up 18.1% year-over-year—after adding 203 thousand subs in the first quarter. Postpaid net adds were nearly 3 times as high as those of the same period of the precedent year although total net additions were down partly on account of the high penetration rate already attained in the region.

At 524 million dollars first quarter revenues were flat year-on-year, with service revenues declining only slightly in the face of a marked reduction (25.8%) in prices per minute. Wireless revenues kept on expanding their share of service revenues, as did data revenues, which shot up nearly 50% over the prior year.

INCOME STATEMENT (IFRS)

Caribbean Consolidated

Millions of Dollars

 

		1Q10			1Q09			Var.%
Revenues		524			524			0.0	%
Operating Income		51			12			333.0	%
%		9.8	%		2.3	%

Caribbean Operating Data

 

		1Q10			1Q09			Var.%
Wireless Subscribers (thousands)		6,256			5,296			18.1	%
Postpaid		1,338			977			36.9	%
Prepaid		4,917			4,319			13.9	%
Fixed Lines (thousands)		1,515			1,590			-4.7	%
Total Lines (Wireless + Fixed, 000’s)		7,771			6,886			12.8	%
MOU		291			239			21.8	%
ARPU (US$)*		12			13			-7.1	%
Churn (%)		5.2	%		3.9	%		1.3

 

*	These figures are presented under IFRS. Under local GAAP, ARPUs would have been 13 dollars and 13 dollars for 1Q10 and 1Q09, respectively.

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United States

Our operation in the U.S. exhibited the fastest pace of subscriber growth among our operations. Net additions for the quarter, one million, were 80.8% higher than those of a year before, leading our subscriber base to 15.5 million clients at the end of the period. This is a 31.4% increase over the year-earlier quarter.

First quarter revenues reached a record high of 605 million dollars, having increased 60.5% in annual terms. Our new product, StraightTalk, and the commercial efforts made to strengthen our other brands helped bring about a 45.1% increase in service revenues. MOUs more than doubled in the period, with the ARPU climbing 11.2% from a year before.

INCOME STATEMENT (IFRS)

United States

Millions of Dollars

 

		1Q10			1Q09			Var.%
Revenues		605			377			60.5	%
Operating Income		70			67			4.5	%
%		11.6	%		17.8	%

United States Operating Data

 

		1Q10			1Q09			Var.%
Wireless Subscribers (thousands)		15,452			11,759			31.4	%
MOU		153			74			106.5	%
ARPU (US$)*		11			10			11.2	%
Churn (%)		3.6	%		4.0	%		(0.4	)

 

*	These figures are presented under IFRS. Under local GAAP, ARPUs would have been 11 dollars and 10 dollars for 1Q10 and 1Q09, respectively.

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Exchange Rates Vs Usd

 

		1Q10		1Q09		Var.%
Mexico
EoP		12.46		14.33		-13.0	%
Average		12.80		14.12		-9.4	%
Brazil
EoP		1.78		2.32		-23.1	%
Average		1.80		2.23		-19.3	%
Argentina
EoP		3.88		3.72		4.2	%
Average		3.84		3.49		10.0	%
Chile
EoP		524		583		-10.1	%
Average		519		607		-14.5	%
Colombia
EoP		1,929		2,561		-24.7	%
Average		1,948		2,412		-19.3	%
Guatemala
EoP		7.99		8.11		-1.6	%
Average		8.19		7.95		2.9	%
Honduras
EoP		19.03		19.03		0.0	%
Average		19.03		19.03		0.0	%
Nicaragua
EoP		21.09		20.09		5.0	%
Average		20.97		19.97		5.0	%
Peru
EoP		2.84		3.16		-10.1	%
Average		2.85		3.14		-9.2	%
Paraguay
EoP		4,698		5,100		-7.9	%
Average		4,681		5,062		-7.5	%
Uruguay
EoP		19.46		24.07		-19.2	%
Average		19.65		22.40		-12.2	%
Dominican
EoP		36.48		35.97		1.4	%
Average		36.34		34.00		6.9	%
Jamaica
EoP		89.51		88.82		0.8	%
Average		89.69		84.99		5.5	%

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Exchange Rates Vs mexican peso

 

		1Q10		1Q09		Var.%
USA
EoP		0.08		0.07		15.0	%
Average		0.08		0.07		10.4	%
Brazil
EoP		7.00		6.19		13.1	%
Average		7.10		6.32		12.3	%
Argentina
EoP		3.21		3.85		-16.6	%
Average		3.33		4.05		-17.7	%
Chile
EoP		0.024		0.025		-3.3	%
Average		0.025		0.023		6.0	%
Colombia
EoP		0.0065		0.0056		15.5	%
Average		0.0066		0.0059		12.2	%
Guatemala
EoP		1.56		1.77		-11.6	%
Average		1.56		1.78		-12.0	%
Honduras
EoP		0.66		0.75		-13.0	%
Average		0.67		0.74		-9.4	%
Nicaragua
EoP		0.59		0.71		-17.2	%
Average		0.61		0.71		-13.7	%
Peru
EoP		4.39		4.53		-3.3	%
Average		4.49		4.50		-0.2	%
Paraguay
EoP		0.0027		0.0028		-5.6	%
Average		0.0027		0.0028		-2.0	%
Uruguay
EoP		0.64		0.60		7.6	%
Average		0.65		0.63		3.2	%
Dominican
EoP		0.34		0.40		-14.2	%
Average		0.35		0.42		-15.2	%
Jamaica
EoP		0.14		0.16		-13.7	%
Average		0.14		0.17		-14.1	%

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: April 30, 2010

 

 

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