What's the importance of Brazil to América Móvil/Telmex?
The Group of the mexican business man Carlos Slim, controller of América Móvil and Telmex, is the biggest telecommunication group of Latin America.
| Millions | 2007 |
| Cellulars | 153,422 |
| Fixed Telephones in Service | 26,409 |
| Net Revenue (US$ Millions) | 46,954 |
| Ebitda Margin | 40.6% |
Note: América Móvil, Telmex and Telmex Internacional.
After Mexico (headquarter), Brazil, where the group controls Claro and Embratel, is the most important country. Brazil had in 2007 22.4% of the revenue of the group, 19.7% of the cellulars and 10.1% of the fixed telephones.
Claro presented in 2007 net revenue of 15.6% more than Embratel.
| US$ Millions | Claro |
Embratel |
| Net Revenue | 5,643 |
4,883 |
| Ebitda Margin | 25% |
25.1% |
The importance of Brazil in the Group still increases because of the growth of the brazilian market. Cellular net adds of Claro in Brazil (6.3 millions) similar to Telcel in Mexico (6.8 millions).
Note: In the United States (US) América Móvil works as MVNO
The following figure presents the participation of cellulars and revenue of each countries/regions in the total of América Móvil.
The following table presents the indicators to many countires/regions where América Móvil is present.
| 4Q07 | ARPU US$ |
MOU |
Pre-paid |
Churn month |
Ebitda Margin |
| Mexico | 16.8 |
165 |
92.9% |
3.6% |
51.5% |
| Argentina, Uruguay, Parag. | 10.5 |
131 |
95.6% |
2.0% |
27.9% |
| Brazil | 15.8 |
85 |
81.0% |
2.0% |
23.6% |
| Chile | 14.4 |
123 |
85.2% |
4.9% |
-13.3% |
| Colombia | 9.5 |
131 |
85.5% |
2.4% |
48.0% |
| Ecuador | 9.0 |
69 |
88.9% |
2.8% |
39.0% |
| Peru | 8.7 |
73 |
90.4% |
2.5% |
27.9% |
| América Central | 7.0 |
138 |
94.9% |
1.6% |
46.2% |
| US | 12.0 |
76 |
100.0% |
3.6% |
4.4% |
Claro in Brazil has ARPU US$ 15.8, similar to Telcel in Mexico (US$ 16.8), but minutes of use (MOU) lower ( 85 minutes x 165 minutes). Even though MOU of Claro has increased 18% in 2007 (4Q07/4Q06) and it's one of the lowest of the Group.
Claro is the operator with lesser percentage of pre-paid of the group (81%) and had month churn of 2% in the 4Q07, between the lowest of the Group. Ebitda Margin of Claro in the 4Q07 (23.6%) still very distant from other operators of América Móvil in Mexico (51.5%), Colombia (48%), Central America (46.2%) and Ecuador (39%), but it's an acceptable value, when compared to United States (4.4%) and Chile (-13.3%).
According to the text above you could ask:
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