The impact of the economic crisis in América Móvil's performance in Brazil in 1S15
América Móvil Brasil, formed by Claro and Embratel/Net, reduced its growth pace in the first semester of 2015 (1S15).
Net adds of fixed telephones, fixed broadband and pay TV in 1S15 were smaller than in 1S14.
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Note: Fixed accesses in 2Q15 estimated by Teleco based on América Móvil's data.
The economic crisis affected mainly pay TV in which the operator presented negative net adds. The biggest part of the cancellations occurred in TV via satellite (DTH) which provides service to the population that have smaller income.
Mobile net adds registered slight growth in 1S15 due to the reduction of prepaid cancellations.
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Claro made an adjustment in its prepaid base in 1S14 and started to get positive net adds inside the segment but in 2Q15 net adds reached -804 thousand prepaid accesses.
Postpaid performance was similar to fixed accesses, registering drop in net adds in 1S15.
América Móvil BR's net revenue increased 3.7% in 1S15. Fixed services (Fixed Telephpny, Fixed Broadband and Pay TV) grew 6.3% and mobile -1.1% in comparison with 1S14.
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Source: Results published by América Móvil
In mobile service, the handsets sales revenue presented drop of 4.7% and services had drop of 0.5%.
Mobile ARPU and minutes of use (MOU) are also registering decrease in 2015. O more intense use of messaging apps in cell phones and the reduction in interconnection values (VUM) have contributed to this process.
| - | 1Q14 |
2Q14 |
3Q14 |
4Q14 |
1Q15 |
2Q15 |
| ARPU (R$) | 15 |
15 |
15 |
15 |
13 |
13 |
| MOU | 122 |
117 |
122 |
123 |
81 |
100 |
| Month Churn | 3.2% |
3.4% |
3.0% |
3.2% |
3.1% |
3.4% |
In 2Q15, in Mexico, América Móvil's MOU reached 262 minutes, drop of 2.9% in relation to 2Q14, churn of 3.7% and ARPU of R$ 30.9.
América Móvil Brasil presenteu, in 2015, improvement in the profitability of its operations.
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In the end of 2014, América Móvil concluded the fusion of Embratel, Net and Claro into one single company named Claro S.A.. This fusion is one of the factors that contributed to the improvement of its profitability in 2015.
In Mexico, América Móvil's EBITDA margin dropped from 43.6% in 2Q14 to 41.1% in 2Q15. Net revenue decreased 2.4% in this period.
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