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Seção: Teleco English

12/12/2006

 

Telefonica, América Móvil/Telmex and Telecom Italia in Latin America

 

Telefonica, América Móvil/Telmex and Telecom Itália are between the biggest telecommunications groups in the World.

 

 

Total Results (World) of the Groups in the 3Q06

 

3Q06
Billion of Euros
Telefonica
A Movil/
Telmex
Telecom Itália
Net Revenue
13.7
7.5
7.8
EBITDA
5.4
2.8
3.3
Margin EBITDA
39.6%
37.6%
42.1%
Debt
52.2
8.3
39.5

Note: Revenue of Telefonica and Telecom Italia according to IFRS and give to Móvil/ Telmex according to the mexican countable standards. Revenue and Ebitda of Telefonica proportional to it participation in the operator (Include 50% of Vivo).

 

Telefonica group presented in the 3rd trimester of 2006 the biggest revenue, but also the biggest debt. The debt Telefonica grew in 23 Billion euros in 2006 with the acquisition of Group O2 composed by many cellular operators in Europe.

 

Telefonica Group

 

3Q06 Billion Euros
Revenue
EBITDA
EBITDA Margin
Telefonica Espanha (Fixed)
3.0
1.5
48.7%
Telef. Latin America (Fixed)
2.4
1.1
48.0%
Telefonica Móviles
4.7
1.8
38.0%
Grupo O2
3.6
1.0
28.9%
Grupo Telefonica (Total)
13.7
5.4
39.6%

 

The groups of the mexican Carlos Slim ( América Móvil/ Telmex) and Telecom Itália presented similar revenues in the 3Q06. The disadvantage of Telecom Itália is the debt of 39.5 Billion euros.

 

Tim in Brazil contributed with 1.1 billion euros to the revenue of Telecom Italia in the 3Q06, but with just 250 million euros to the EBITDA.

 

Telecom Italia Group

 

3Q06 Billion Euros
Revenue
Ebitda
Margin
Fixed
4.3
1.8
42.7%
Tim in Italy
2.6
1.3
50.6%
Tim in Brazil
1.1
0.2
23.4%
Others and eliminations
-0.2
-0.1
-
Telecom Italia (Total)
7.8
3.3
42.1%

 

In Telecom Itália the biggest contribution to revenue and to EBITDA of the group comes from fixed telephony, what doesn't happen with the other two Groups.

 

América Móvil/Telmex Group

 

Billion of Euros
3Q06
EBITDA
EBITDA Margin
America Movil
4.3
1.6
36.8%
Telmex
3.2
1.2
38.7%
Total
7.5
2.8
37.6%

 

América Móvil/Telmex and Telefonica are the biggest groups of telecommunications of Latin America with around 70% of cellulars of the region. The América Móvil/Telmex group is also the leader in revenue, fixed telephony and cellular, and Telefonica in second place.

 

Latin America - Biggest Telecommunications Groups

 

3Q06 Billion Euros
A Movil/
Telmex
Telefonica
Fixed
3.2
2.4
Cellular
4.3
2.3
Total
7.5
4.7

 

Telecom Itália is getting out of Latin America and sold it operations in Venezuela, Chile and Peru. This was also the destine of other groups that had invested in the region, as much as Bell South, Verizon and Bell Canada.

 

The same situation repeats in Brazil where the gross revenue of the mexican group (Embratel/Claro/Net/Vivax) reached Telemar in the 3Q06.

 

Biggest Groups of Telecommunication in Brazil

 

Note: According to brazilian countable norms. Telemar includes Oi and BrT to BrT GSM. The group of da Telefonica just includes 50% of the Vivo's Revenue.

 

According to the situation you could ask:

  • Consolidated it position in Latin America, the mexican group must expand to other regions?
  • Will Telecom Italia sale Tim in Brazil and abandon Latin America ? Consult: Who'is gonna buy Tim?
  • Are there other international operators interested in operate in Latin America? and in Brazil?
  • What's the future of Telemar and Brasil Telecom in a situation of joint venture and acquisitions that is consolidating the telecommunication operators? Is there any space to regional players?

 

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