Will Brazil become the biggest operation for América Móvil?
By the end of the 3rd quarter of 2014, América Móvil's operations in Brazil (Claro/Embratel/Net) and Mexico answered for:
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When we compare both América Móvil's operations, the Mexican one presents bigger revenue and bigger number of mobile accesses and the Brazilian operation shows bigger number of fixed accesses.
Brazil presents the biggest revenue inside the fixed segment while Mexico shows the biggest revenue inside the mobile segment.
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Claro (Brazil) is very close to overtake Telcel (Mexico) in number of mobile accesses. The difference between both carriers dropped from 5.0 million mobile accesses in 3Q13 to 838 thousand in 3Q14.
| 3Q14 | Claro (Brazil) |
Telcel (Mexico) |
| Mobile Accesses (millions) | 69.6 |
70.5 |
| Prepaid | 78.1% |
86.1% |
| ARPU (US$) | 6.1 |
12.3 |
| MOU | 122 |
265 |
| Month Churn | 3.3% |
4.2% |
However, the same will hardly happen in revenue while Claro's ARPU (US$ 6.1) remains half of Telcel's (US$ 12.3).
To sum up:
Mexico may continue, however, to be the most profitable operation for América Móvil. By holding EBITDA margin of 44.8%, the country answers for 43.8% of the group's EBITDA. In Brazil, EBITDA margin of 24.6% answers for 17.4% of América Móvil's EBITDA.
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