In Brazil, Telefônica is mobile and América Móvil is wireline
Telefônica and América Móvil are the biggest Telecom groups in Latin America, where they into fierce competition for the leadership in region.
| 2Q12 (US$ Billion) | Telefônica |
América Móvil |
| Market Cap | 52 |
104 |
| Debt | 74 |
26 |
| Revenue | 19.6 |
14.0 |
| EBITDA Margin | 34.6% |
34.1% |
| Net Profit | 1.7 |
1.0 |
| Investments | 2.5 |
3.9 |
Telefônica Group's market cap (US$ 50 billion) is half of América Móvil's value (US$ 104 billion) due to the bigger debt (US$ 74 billion). Both groups showed almost the same EBITDA margin in 2Q12.
Telefônica Group has bigger global revenue (US$ 19.6 billion in 2Q12), but loses to América Móvil when we consider only the Latin America.
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In Brazi, Telefônica/Vivo overtakes Claro/Embratel/Net in revenue, because the mobile segment represented 62.2% of its revenue in 2Q12.
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Note: América Móvil's revenue counting common revenues.
The opposite happens when we observe América Móvil group: 39.8% of the revenue came from Claro and 60.2% from Embratel/Net. Brazil represents a singluar case in the América Móvil group's revenue profile, in which 61% of the revenue is mobile, even in Mexico.
Vivo is the cellular market share leader in Brazil (29.6%) and has invested to increase data revenue ahich represented 27.2% of the company service revenue in 2Q12.
Claro is placed in the position in market share and, after a period of low growth, resumed stronger growth in prepaid in the quarter. The company continues, however, to present low growth in postpaid, segment in which Vivo is the lerader. Calro's ARPU (R$ 16.0) is the smallest in comparison with other cellular operators.
Both operators have felt the impact of the competitiveness inside the Brazilian market and showed high churn in 2Q12: 3.8% and 3.9% respectively.
4G can be an opportunity for Claro to get over this situation in Brazil, recover the second position in market share that was lost to TIM in 2011 and threaten Vivo's leadership. Vivo and Claro were the operators that made more investments in the auction for the 2.5 GHz frequencies promoted by Anatel.
Vivo covers with 3G a must bigger number of cities (2,831) in comparison with Claro (929). Claro leads, however, in quantity of mobile broadband accesses by counting 19.0 million against Vivo's 17.5 accesses.
Inside fixed telephony, Embratel/Net is the leader in pay TV having market share of 53.8% and is second in fixed broadband market share, staying behind Oi only. The company will hardly be overtaken by Telefônica/Vivo inside this segment because its operations are more concentrated inside the state of São Paulo.
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