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					Ticker: AMX
Sector:   Wireless Telecom
Industry: Telecommunications

Recommendation: HOLD
                                        AMERICA MOVIL
Pricing
Closing Price     $48.14 (10/16/09)     Recommendation: Hold
52-wk High        $48.82 (10/14/09)
52-wk Low         $23.63 (10/27/08)     America Movil gives us our most exposure to emerging markets.
                                        I believe that is where the strongest economic growth and the
                                        largest profits will be for the foreseeable future, so that reason
                                        alone is nearly enough to keep them in our portfolio. However, I
Market Data
Market Cap        $79.43B               also think that they are a strong company on solid financial
Total assets      $32.33B               footing. Wireless telecommunications is a profitable industry,
Trading vol       3.67M (3mon avg)      and they are a near monopoly in a couple of their markets.
                                        While I don’t think they are undervalued, I also do not believe
                                        they are strongly overvalued, if at all. I came up with an intrinsic
Valuation                               value of $47.24, but I think anywhere in the range $40-$55 is
EPS (ttm)         $3.06                 possible. Since they are trading at $48, they are valued pretty
P/E (ttm)         15.1                  appropriately and I think they are a good company to have in our
Current            .73                  portfolio.
Dividend           .94%
                                        Company Overview1
Profitability & Effectiveness (ttm)
ROA             17.16%                  America Movil and its subsidiaries provide wireless and fixed
ROE             45.28%                  communications in Latin America. Its offering of wireless
Profit Margin 18.22%                    services includes prepaid voice and data, data-based wireless
Oper Margin 27.70%                      services, group messaging, content download, internet access,
Gross Margin 46.42%                     and much more. The company also offers fixed line services,
                                        including cable and internet, and sells cellular phones and
                                        accessories. They have approximately 190 million mobile
                                        customers in 18 countries in the Americas. This makes them the
                                        fourth largest wireless provider in the world, and they are also
                                        one of the three largest privately (not government owned)
                                        companies in Mexico. In 2008, they had revenues of $25 billion
                                        and net income of nearly $4 billion. They were ranked this year
                                        by BusinessWeek as the 18th best performing company in the
                                        world2. AMX was spun off from Telmex in 2000, and is based
                                        in Mexico City, Mexico. The CEO is Daniel Hajj Aboumrad,
Aaron Foster                            and the Chairman is Patrick Slim, son of Carlos Slim, who is
adfrhc@mail.missouri.edu


    1
        Yahoo!finance, www.americamovil.com, and www.answers.com
    2
        www.businessweek.com


                                                                                                          1
also their controlling shareholder and one of the three richest people in the world (along with Bill
Gates and Warren Buffett).

Regions of Operation3
Mexico

The largest wireless provider in Mexico, AMX operates under the name Telcel and has over 58
million subscribers. Their network covers over 90% of the country, and they are the clear market
leader with over 70% of all wireless users.

Brazil

Operating under the name Claro, they have 40.4 million subscribers in Brazil, an increase of 22%
since the second quarter of 2008. This makes them one of the three largest wireless providers,
with about 25% of the market. Their network covers all the major cities, including Rio de Janeiro
and Sao Paulo.

Southern Cone

This region includes the countries of Argentina, Chile, Uruguay and Paraguay. They operate as
Claro here, and have over 20 million subscribers.

Colombia

As Comcel in Colombia, they have about 27 million subscribers and are the largest wireless
service provider in the country, commanding a 67% market share.

Andean Region

This covers the countries of Peru and Ecuador, where they have 16.6 million subscribers, a 20%
increase since quarter 2 of ‘08. Their brand name is Porto in Ecuador, and Claro in Peru.

Central America

Once again using the Claro name, they have both fixed-line and wireless services in Guatemala,
El Salvador, Honduras, Nicaragua, and as of March this year, Panama. They have approximately
9.3 million wireless subscribers and are the largest fixed line provider, with about 2.2 million.

United States

Operating under the Tracfone name, they provide a lot of prepaid wireless services in the US,
Puerto Rico, and the US Virgin Islands. They have 12.5 million subscribers here.



3
    AMX 20-F, 6-K, Datamonitor SWOT analysis


                                                                                                  2
Caribbean

This region includes Codetel in the Dominican Republic, Telpri in Puerto Rico, and Oceanic in
Jamaica. Combined they have about 5.6 million wireless subscribers which is a 43% increase
over last year. They also have numerous fixed-line and broadband service users.

The following charts where their wireless subscribers come from, and their market shares in
those countries. Both charts are as of this summer.


                              Caribbean USA
                                 3%     7%
                         Central
                         America
                           5%
                        Andean
                        Region                         Mexico
                          9%                            31%

                       Colombia
                         and                         Brazil
                       Panama                        22%
                         14% Southern
                              Cone
                               9%


                                             Market Share
 90.0%
 80.0%
 70.0%
 60.0%
 50.0%
 40.0%
 30.0%
 20.0%
 10.0%
  0.0%
            o




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                                                                                           3
Clearly, America Movil is strongest in Mexico. However, they have done a nice job diversifying,
and are a major competitor throughout Latin America. Brazil is probably their fiercest
battleground right now, where they are one of the three largest carriers with about 25% of the
market. If they can grow there it would be huge, but it will be an uphill battle as they are
competing against larger European firms.

Industry

The wireless telecommunications industry is dominated by a few very large firms in every
market. This is because the fixed costs to enter the market are extremely high, and therefore it is
almost a natural monopoly industry. In actuality it usually results in an oligopoly. For new firms
to enter the market, they must have the satellites and infrastructure to provide satisfactory service
and this is very hard to do. Relationships with cell phone makers are also very important, and
these can take years to build. Therefore, this is often a profitable business with fairly high
margins for those companies that have established themselves as one of the main players. For
America Movil, they have become the largest wireless carrier in Latin America as a whole, and
they can take advantage of these industry dynamics.

On the other hand, due to profit margins and near monopolistic power of some wireless firms,
they are also popular targets for government taxes, regulations, and restrictions. One particularly
pertinent example is that Mexico has proposed a telecommunications tax to raise $1 billion4. If
this passes, it is expected to drive costs up and cause many poor people to give up their mobile
phone. This is definitely a serious risk to AMX, as would be any other similar tax or regulation.

One final note on this industry is that it is primarily driven by technology and relationships with
phone manufacturers. America Movil has been successful on these fronts to this point, but their
success in the future is largely dependent on their ability to continue keeping up in these two
areas.

Competitors5
Grupo Iusacell SA de CV

The third largest wireless carrier in Mexico, they have approximately 3.5 million subscribers.
Based in Mexico City, they merged with Unefon Holding in 2007. After losing almost $230
million last year, they had debt/equity ratio of 15,665%. They have continued to lose money this
year, and their owner has insisted they are not up for sale but are trying to raise more funds to
satisfy their creditors. This is not a very strong company.

Telefonica SA (TEF)

Although based in Madrid, this is a global wireless provider that operates in many Latin
American countries, including the second largest market share in Mexico. They are much larger

4
    www.bloomberg.com
5
    Yahoo! Finance, Businessweek.com, and Google Finance


                                                                                                   4
     than AMX, with $86 billion in revenues last year and over $11 billion in profits. They have $147
     billion in assets, and are very highly leveraged with a debt to capital ratio of 73%. Due to their
     recent acquisitions in Latin America, this is the strongest competitor to AMX.

     Vivo6

     A joint venture between Portugal Telecom and Telefonica, this is the market leader in Brazil.
     With about 47 million subscribers, they produced around $100 million of net income in the
     second quarter. They are a quickly growing company and just turned a profit for the first time
     last year, about $275 million on $8 billion of revenue. They are definitely a formidable opponent
     in the Brazilian market.

     Telecom Italia SpA (TI)

     As its name implies, this is an Italian based company, but it has a strong presence in Brazil. TI is
     smaller than AMX, as it had only 500 million Euros of income last year, or less than $1 billion.
     As of June this year however, they had 37.8 million wireless lines in Brazil, or almost 24% of the
     market. They also recently got a license to operate fixed lines, and seem to have strong internet
     connection capabilities. Their CEO also recently announced plans to speed up a $4 billion
     investment strategy to improve voice and data services.7

     NII Holdings (NIHD)

     This American based company was formerly Nextel International. They offer wireless services
     and International Direct Connect services in Mexico, Brazil, Argentina, Peru, Chile, the US, and
     Canada. A somewhat smaller company, they just have a market capitalization of $5 billion and
     had $369 million of profit on $4.2 billion of revenue. They are quickly growing though, as their
     revenues have increased by 145% over the last three years, and their income has more than
     doubled.

     The following table compares AMX with their most relevant competitors (for last quarter). The
     top four companies are their direct competitors and the bottom three are wireless carriers in
     America, just to compare ratios. Highlighted numbers are the ratio leaders for them and their
     direct competitors.
                                                                                          Profit                  Net
Company             EPS      P/E     Mkt Cap    Div    Current    D/A     ROA     ROE     Margin    Revenue     Income
America Movil        3.06    15.71     79.32B   0.46       0.73   61.90   17.16   45.28     23.97    7,176.25   1,720.02
NII Holdings         1.81    17.26      5.18B      0       2.29   39.24   10.02   25.21     12.68    1,058.86     134.29
Vivo                 1.04    27.38     10.59B      0       1.03    30.8    3.37    8.16      4.71    2,302.73      108.5
TIM Participacoes   -0.02               6.76B      0       1.26   25.93   -0.42    -0.8     -0.46    1,933.27      -8.92
Telefonica           7.42    11.36    132.19B      0       0.76   52.71    7.71   44.49     14.12   20,690.84   2,922.20
Verizon              2.12    13.62     82.09B   0.46       0.81   28.85    5.61   14.07     11.76   26,861.00   3,160.00
AT&T                 2.02    12.72    151.63B   0.41       0.74   28.64    4.94    13.1     10.66   30,734.00   3,276.00
Sprint              -1.02               9.77B      0       1.32   37.56   -2.72   -8.16     -4.72    8,141.00       -384



     6
         www.vivo.com/br
     7
         www.bloomberg.com


                                                                                                          5
Based on the above numbers, AMX seems to be in pretty good shape compared to their peers.
They are the only Latin American carrier that pays a dividend, which is nice for our fund. Their
current ratio is low, only .73, but that seems to be pretty normal for this industry. With continual
subscription payments coming in, I wouldn’t think that they would have any issues meeting their
short term obligations. They also have the best returns and margins of anyone in the industry,
much better than any of the American companies. This is probably mainly due to their
dominance of the Mexican market.

Strengths/Opportunities8

          They are an emerging market company, which is where the most growth will be coming
           from over the next decade or so. True, Mexico is strongly tied to the US, but they still
           should see a greater overall increase in wealth than the OECD countries. If the US dollar
           falls as many are predicting, this will also help AMX a lot.
          3G technology is just now coming on the scene, especially in emerging markets. As users
           upgrade their phones they will need more expensive service plans and better coverage.
           AMX is well positioned to take advantage of this, and to provide the necessary service as
           smartphones become ever more important to society in the coming years.
          A strong cash flow. This has enabled them to grow by acquisitions, and should enable
           them to continue doing so, or to possibly increase the dividend or buy back shares.
          Familiarity with the Latin American market. Although European companies are
           beginning to compete hard for Latin American subscribers, AMX has already been there
           for a while and knows the industry.
          Carlos Slim is a huge advantage. Possibly now the richest man in the world,9 there is little
           question that he has connections in Mexico and knows how to get around any corruption
           or use it to his advantage. This should limit adverse effects from any Mexican
           government regulation, at least somewhat.
          They have used less profitable prepaid services to grow their subscriber base, and if they
           can shift some of those to postpaid they could boost their revenues and profits. Recently,
           postpaid subscribers in both Mexico and Brazil have been growing quicker than prepaid.
           This is a great sign, but they still have a lot of subscribers to get to make the shift. The
           chart below shows their breakdown between prepaid and postpaid subscribers.

                               Postpaid
                                 13%




                                                                        Prepaid
                                                                         87%




8
    Datamonitor SWOT analysis, Morningstar - Jacqueline Zhang
9
    www.bloomberg.com


                                                                                                     6
Risk Factors10

         Intense competition in the wireless industry. Although AMX is the dominant player in
          Mexico, competition is much stiffer in their other markets. Regardless of their market
          power, competition is a real concern. Innovation and technology advances are important
          in telecommunications, and any breakthroughs from their competitors offer serious
          threats.
         Government regulations and taxes are major factors in this industry. Currently, both
          Brazil and Mexico are contemplating further regulations and requirements which would
          be adverse to America Movil’s operating profits. Further regulation down the road as
          well as restrictions in other countries are very possible as well.
              o In Mexico they are being investigated for possible monopolistic practices.
              o As already mentioned, Mexico is proposing a telecommunications tax which
                   would negatively affect them.
         Their recent geographic diversification into other countries outside Mexico comes with
          unique risks associated with those markets that they are less familiar with. There may be
          certain barriers to success in these other countries that they have not foreseen.
         A significant chunk of their business is prepaid, which is necessarily more uncertain than
          the postpaid wireless system dominant in the US. While this is definitely the more
          popular practice in emerging markets and has helped them grow as much as they have, it
          also makes higher churn rates possible and makes them more susceptible to severe
          economic downturns.
         Natural disasters or power outages are serious dangers to wireless companies, as they
          may not be able to provide satisfactory service and could lose customers.
         In a technology driven industry, if they cannot keep up with the latest in technology and
          advancements, they could miss out substantially.
         They have a complex and intricate network of other companies they are dependent upon
          (phone manufacturers, etc). Any problems or failures to maintain these relationships
          could hurt them.
         The countries they operate in are fraught with geopolitical risk. Any economic or social
          upheaval could impact them negatively.

Financial Statement Analysis11
Looking at the balance sheet, the first thing that jumps out is total debt ratio, which is not that
good. Roughly 62% of their assets are financed through debt. However, this is improving as it
was around 67% at the end of 2008. This high number is probably because of all the acquisitions
they have made to expand throughout Latin America. It is a concern though, especially since
about 20% of their assets are intangible (goodwill, patents, etc.). Their income statement does
look very good though. As mentioned above, they had about $25 billion in revenue last year and
almost $4 billion in income. Both of these numbers were increases over last year; their revenues
have grown by an average of 15.5% the last 2 years. This trend looks to continue this year, as


10
     AMX 20-F
11
     AMX 20-F and 6-K


                                                                                                  7
their first two quarters’ revenues were up by 14%. Income is even better, growing by over 20%
so far this year. Other than perhaps a little too much debt, this is a strong and growing company.

Valuation12
This was a very difficult company to value. Besides exchange rates and US GAAP accounting
differences, they have at least 4 different classes of stock. However, I was able to sift through it
all and I believe I came up with a fairly accurate valuation. I used the owner’s earnings
discounted cash flow model, as everyone in this class uses. I’m not a big fan of beta so I just
arbitrarily picked a discount rate of 12%, which I think is a fair balance between the risky
markets they are in and the market dominance they possess. Their net working capital has
actually decreased on average the last several years, so much so that they actually have negative
net working capital now. While I think they can stay in the negative because of the certainty of
their cash inflows, I do not the think the downward trend is sustainable, so I left their increase in
net working capital at zero. I also averaged their capital expenditures for the last 4 years, and
then increased it by 10% since they are expecting to increase it over the next several years. I used
my growth rates based on this year’s numbers, historical numbers, an analyst’s estimation, and
my own estimations. I started with 15% for this year, which is actually fairly conservative,
dropped down to 12%, then 10%, 8%, and finally 3% terminally. I think these are probably fairly
conservative numbers for a powerful emerging market company like AMX. I found the intrinsic
value of the stock to be $47.24, or very close to where it is trading at right now. The chart below
shows a sensitivity analysis and my DCF is on the next page.



                            First Stage Growth Rate

           Discount Rate         6             8           10            12            14

                10          $ 45.05       $ 52.14      $ 60.38       $ 69.94       $ 80.99

                11          $ 39.48       $ 45.48      $ 52.43       $ 60.46       $ 69.75

                12          $ 35.17       $ 40.33      $ 46.29       $ 53.17       $ 61.11

                13          $ 31.74       $ 36.25      $ 41.43       $ 47.41       $ 54.28

                14          $ 28.96       $ 32.93      $ 37.50       $ 42.74       $ 48.76




12
     www.marketwatch.com, www.gurufocus.com


                                                                                                   8
Two-Stage Discounted Free Cash Flow Valuation Model (aka Warren Buffett Way Owners' Earnings Discount Model)
assuming discount rate (k) of                             12.00%

Free Cash Flow ("owner earnings") in 2008:
Net Income                                       $    3,915,716.46
Average Increase in Working Capital (subtract)   $             -
Depreciation/Amortization (add)                  $    3,019,614.66
Average Capital Expenditures (subtract)          $   (3,201,665.95)
Free Cash Flow (Owner Earnings)                  $    3,733,665.17


FIRST STAGE                                                                                                                         Year:
                                                              2009            2010            2011           2012           2013              2014
                                                                                                                                     $
Prior Year Free Cash Flow                        $    3,733,665.2     $ 4,293,714.9   $ 4,808,960.7   $5,386,036.0   $5,924,639.6   6,517,103.6
First Stage Growth Rate (add)                                15.0%           12.0%           12.0%          10.0%          10.0%            10.0%
                                                                                                                                     $
Free Cash Flow                                   $    4,293,714.9     $ 4,808,960.7   $ 5,386,036.0   $5,924,639.6   $6,517,103.6   7,168,814.0
Discounted Value per annum                            $4,293,714.9     $4,293,714.9    $4,293,714.9   $4,217,041.5   $4,141,737.2     $4,067,777.6

Sum of present value of owner earnings                $40,658,828.5


SECOND STAGE
Residual Value                                                                                2015           2016           2017             2018
                                                                                                                                     $
Free Cash Flow in year 9                         $   10,117,662.6                     $ 7,168,814.0   $7,885,695.3   $8,674,264.9   9,368,206.1
Second Stage Growth Rate (g) (add)                           3.00%                           10.0%          10.0%            8.0%            8.0%

Free Cash Flow in year 11                        $  10,421,192.4                      $ 7,885,695.3   $8,674,264.9   $9,368,206.1   $10,117,662.6
Capitalization rate (k-g)                                   9.00%                      $3,995,138.7   $3,923,796.9   $3,783,661.3    $3,648,530.5
Value at end of year 10                          $ 115,791,027.07

Present Value of Residual                            $37,281,611.75
Intrinsic Value of Company                           $77,940,440.21

Shares outstanding assuming dilution                       1650000
Intrinsic Value per share                                   $47.24




                                                                                                                                                     9
Recent Performance13

AMX is already up substantially this year. As the charts below show, it has beaten the S&P (top)
significantly over the last year, and it is also doing better than it’s major competitor TEF and
much better than AT&T and Verizon, two American wireless carriers. This could be a sign that
the stock is no longer undervalued and possibly even overvalued.




13
     www.bigcharts.com


                                                                                             10
Financial Statements14

2008 Income Statement

                          AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES
                                      Consolidated Statements of Income
           (In thousands of Mexican pesos, except for earnings per share and weighted-average number of
                                               shares outstanding)


                                                              For the year ended December 31,
                                                                                                      (Millions of
                                                                                                     U.S. dollars
                                                                                                       except for
                                                                                                     earnings per
                                            2006                 2007                    2008            share)
Operating revenues:
      Services:
            Air time                   Ps. 74,385,210      Ps. 87,522,245         Ps. 99,258,566     USD 7,332
            Interconnection                40,700,953          58,554,255             60,371,865         4,459
            Monthly rent                   40,683,385          59,551,717             66,805,611         4,935
            Long-distance                  16,465,433          20,348,067             20,624,128         1,523
            Value added services
               and other services          30,495,814          40,359,659              51,089,479          3,774
Sales of handsets and accessories          40,274,070          45,243,819              47,505,259          3,509
                                         243,004,865          311,579,762             345,654,908         25,532
Operating costs and expenses:
     Cost of sales and services          113,444,561          132,373,998             146,025,037         10,786
     Commercial, administrative
        and general expenses               40,642,325          53,605,408              62,316,415          4,603
     Depreciation and
        amortization (Notes 8 and
        9) (includes Ps.
        20,266,970, Ps.
        29,389,162 and Ps.
        30,047,363 for the years
        ended December 31,
        2006, 2007 and 2008,
        respectively, not included
        in cost of sales and
        services)                          27,883,799          40,406,018              41,767,309          3,084
                                         181,970,685          226,385,424             250,108,761         18,474
Operating income                          61,034,180           85,194,338              95,546,147          7,057
Other income (expenses), net                 483,671           (3,712,874)             (2,326,959)          (172)
Comprehensive result of financing:
      Interest income                       4,669,081            2,960,265              2,414,390            178
      Interest expense                     (9,457,545)          (7,696,967)            (8,950,562)          (661)
      Exchange gain (loss), net             2,321,238            2,463,442            (13,686,423)        (1,011)
      Monetary gain, net (Note 2 f)         3,848,095            5,038,406                    —              —
      Other financing (cost)               (1,408,889)          (3,152,631)             6,357,722            470

14
     AMX 20-F & 6-K


                                                                                                                 11
         income, net
                                                 (28,020)           (387,485)           (13,864,873)         (1,024)
Equity interest in net income of
   affiliates                                    37,778               57,621                109,416             8
Income before taxes on profits               61,527,609           81,151,600             79,463,731         5,869
      Taxes on profits (Note 19)             17,018,144           22,454,267             19,888,337         1,469
Net income                              $    44,509,465      $    58,697,333      $      59,575,394     USD 4,400
Distribution of the net income:
      Majority interest                 Ps. 44,421,948       Ps. 58,587,511       Ps. 59,485,502        USD 4,393
      Non-controlling interest                  87,517              109,822               89,892               (7)
Net income                              $ 44,509,465         $ 58,697,333         $ 59,575,394          USD 4,400
Weighted average number of
   common shares outstanding (in
   millions)                                     35,459               35,149                  34,220       34,220
Earnings per share                      $          1.25      $          1.67      $             1.74    USD 0.13

2008 Balance Sheet

                           AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES
                                             Consolidated Balance Sheets
                                            (In thousands of Mexican pesos)


                                                                                      At December 31,
                                                                                                          Millions of
                                                                                                          U.S. dollars
                                                                      2007                    2008           2008
Assets
Current assets:
      Cash and cash equivalents                                  Ps. 11,972,119        Ps. 22,092,139    USD 1,632
      Investments in financial instruments (Note 4)                      49,931                   —            —
      Accounts receivable, net (Note 5)                              44,756,338            52,770,676        3,898
      Derivative financial instruments (Note 11)                            —               3,125,214          231
      Related parties (Note 17)                                       1,334,610             1,052,796           78
      Inventories, net (Note 6)                                      21,060,030            31,805,142        2,349
      Other current assets, net (Note 7)                              1,506,424             2,639,912          195
Total current assets                                                 80,679,452           113,485,879        8,383
      Plant, property and equipment, net (Note 8)                   167,083,906           209,896,820       15,504
      Licenses, net (Note 9)                                         36,564,304            43,098,985        3,183
      Trademarks, net (Note 9)                                        5,601,154             5,010,539          370
      Goodwill, net (Note 9)                                         44,724,872            44,696,281        3,301
      Investments in affiliates and others (Note 10)                    589,615               789,612           58
      Deferred taxes (Note 19)                                        3,395,396             9,296,367          687
      Other non-current assets, net (Note 7)                         10,482,616             9,180,987          678
Total assets                                                     Ps.349,121,315        Ps.435,455,470    USD32,164
Liabilities and shareholders’ equity
Current liabilities:
     Short-term debt and current portion of long-term
         debt (Note 14)                                          Ps. 19,952,907        Ps. 26,731,355    USD 1,974
     Accounts payable and accrued liabilities (Note 13)              72,891,964            90,867,401        6,712
     Taxes payable                                                    9,250,714            14,612,465        1,079
     Derivative financial instruments (Note 11)                         316,594                   —            —



                                                                                                                   12
      Related parties (Note 17)                                1,249,775              922,254                 68
      Deferred revenues                                       12,396,421           14,662,631              1,083
Total current liabilities                                    116,058,375          147,796,106             10,916
Long-term liabilities:
Long-term debt (Note 14)                                      84,799,487          116,755,093              8,624
Deferred taxes (Note 19)                                      12,496,344           14,621,075              1,080
Employee benefits (Note 12)                                    8,909,339           11,358,647                840
Total liabilities                                            222,263,545          290,530,921             21,460
Shareholders’ equity (Note 18):
      Capital stock                                           36,552,039           36,532,481              2,698
Retained earnings:
      From prior years                                        35,085,723           29,261,187              2,161
      Current year                                            58,587,511           59,485,502              4,394
                                                              93,673,234           88,746,689              6,555
Accumulated other comprehensive (loss) income items           (4,001,203)          18,988,897              1,403
Total majority shareholders’ equity                          126,224,070          144,268,067             10,656
Non-controlling interest                                         633,700              656,482                 48
Total shareholders’ equity                                   126,857,770          144,924,549             10,704
Total liabilities and shareholders’ equity                Ps.349,121,315       Ps.435,455,470          USD32,164


2nd Quarter 2009 Income Statement

America Movil's Income Statement


Millions of MxP
                                                  2Q09     2Q08      Var.% Jan - Jun 09 Jan - Jun 08       Var.%
Service Revenues                                 84,051   72,528      15.9%     168,298      143,629        17.2%
Equipment Revenues                                9,965   12,049     -17.3%      19,553       22,277       -12.2%
Total Revenues                                   94,016   84,577      11.2%     187,851      165,906        13.2%

Cost of Service                                  19,823   16,860     17.6%       40,460       33,593       20.4%
Cost of Equipment                                17,167   18,241     -5.9%       34,641       34,825       -0.5%
Selling, General & Administrative Expenses       17,688   14,790     19.6%       35,090       28,859       21.6%
Total Costs and Expenses                         54,678   49,891      9.6%      110,191       97,277       13.3%

EBITDA                                           39,338   34,686     13.4%       77,660       68,629       13.2%
% of Total Revenues                              41.8%    41.0%                  41.3%        41.4%

Depreciation & Amortization                      11,336   10,081     12.5%       22,759       20,257       12.4%

EBIT                                             28,002   24,606     13.8%       54,901       48,372       13.5%
% of Total Revenues                              29.8%    29.1%                  29.2%        29.2%

Net Interest Expense                              1,476     1,481     -0.3%        3,135       3,350        -6.4%
Other Financial Expenses                            939     2,043    -54.0%          246       3,778       -93.5%
Foreign Exchange Loss                            -4,790    -3,758    -27.5%       -2,707      -4,115        34.2%
Comprehensive Financing Cost (Income)            -2,375      -235       n.m.         675       3,012       -77.6%

Other Income and Expenses                           973    1,038     -6.2%        1,793        1,440       24.6%
Income & Deferred Taxes                           6,928    6,122     13.2%       13,648       12,442        9.7%
Net Income before Minority Interest and Equity   22,476   17,681     27.1%       38,785       31,478       23.2%
Participation in Results of Affiliates
minus
Equity Participation in Results of Affiliates        58       12     367.1%         118           29       311.1%
Minority Interest                                   -27      -34      21.8%         -46          -71        35.6%
Net Income                                       22,507   17,659      27.5%      38,858       31,436        23.6%
n.m. Not meaningful




                                                                                                              13
2nd Quarter 2009 Balance Sheet
América Móvil Consolidated
Millions of Mexican Pesos

                             Jun '09 Dec '08 Var.% Jun '08 Var%                                      Jun '09 Dec '08 Var.% Jun '08 Var%


Current Assets                                                        Current Liabilities
Cash & Securities             19,659    22,092   -11.0% 8,327 136.1% Short Term Debt**                12,687    26,731 -52.5% 23,318 -45.6%
Accounts Receivable           47,195    55,896   -15.6% 42,197 11.8% Accounts Payable                 92,142    90,867 1.4% 81,388 13.2%
Other Current Assets           7,542     3,693   104.2% 6,289 19.9% Other Current Liabilities         25,768    30,197 -14.7% 24,191 6.5%
Inventories                   21,557    31,805   -32.2% 25,249 -14.6%                                130,597   147,796 -11.6% 128,897 1.3%
                              95,954   113,486   -15.4% 82,063 -100%

Long-Term Assets
Plant & Equipment            216,600 209,897 3.2% 165,735 30.7%
Investments in Affiliates        897     790 13.7%    613 46.4% Long-Term Liabilities
                                                                Long Term Debt                       102,456 116,755 -12.2% 69,939 46.5%
Deferred Assets                                                 Other Liabilities                     30,470 25,980 17.3% 21,521 41.6%
Goodwill (Net)                44,664 44,696 -0.1% 43,615 2.4%                                        132,926 142,735 -6.9% 91,460 45.3%
Brands, Patents & Licenses    48,047 48,110 -0.1% 49,389 -2.7%
Deferred Assets               17,526 18,477 -5.1% 15,484 13.2% Shareholder's Equity                  160,166 144,925 10.5% 136,542 17.3%

Total Assets                 423,688 435,455      -2.7% 356,899 18.7% Total Liabilities and Equity   423,688 435,455 -2.7% 356,899 18.7%




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