October 27, 2016
We ended September with 366 million access lines, 0.5% less than a year before. This figure includes 284 million wireless subscribers, 34 million landlines, 27 million broadband accesses and 22 million Pay TV units. On the mobile platform, we added 750 thousand postpaid subs in the third quarter. Our postpaid base was up 5.7% from the year before whereas the prepaid one was down 3.5%. On the fixed line platform, RGUs were up 3.1% year-on-year, driven by broadband accesses that were up 8.3%. Third quarter revenues totaled 250 billion pesos. They were up 11.8% year-onyear in Mexican peso terms and 3.1% at constant exchange rates. Service revenues were flat relative to the year-earlier quarter at constant exchange rates, which was an improvement of two percentage points relative to the year-on-year decline posted in the second quarter. EBITDA improved 1.5% annually in Mexican peso terms, to 67.7 billion pesos.
At constant exchange rates EBITDA was down 5.4%; it was nevertheless a significant recovery relative to the 13.2% reduction observed the prior quarter. Our operating profits were 30 billion pesos in the quarter. With comprehensive financing costs of 24.7 billion pesos, our net income totaled 2.1 billion pesos in the quarter, up from a 2.9 billion pesos loss a year before. In the nine months to September we made capital expenditures in the amount of 100.5 billion pesos, reduced our net debt by 19.0 billion pesos and distributed to shareholders 9.6 billion pesos in dividends and share buybacks. These outlays were funded with our cash flow, the unwinding of certain currency hedges, distributions received from our investments in Europe and the sale of a part of our stake in Telekom Austria. Our gross debt has come down by the equivalent of 3.5 billion dollars since December; our dollar-denominated obligations in particular were reduced by 4.3 billion dollars in the period.
Our ratio of net debt to LTM EBITDA came in at 2.2x and was similar to the one of the second quarter. CONTENT Highlights Relevant events Subscribers América Móvil Consolidated Mexico Argentina, Paraguay & Uruguay Brazil Chile Colombia Ecuador Peru Central America Caribbean USA Austria & CEE Glossary Currency Exchange Rates 3Q16 Revenues of MxP 250 Bn, 3.1% YoY at constant Fx Postpaid subs +5.7% YoY; RGUs +3.1% YoY 3Q16 3Q16 EBITDA of MxP 68Bn Gross debt down USD 3.5 Bn 366M Access lines Net profit of MxP 2.1Bn Capex of MxP 101 Bn YTD page 2 Relevant Events In July we sold 58 million shares of Telekom Austria, bringing down our ownership interest of the company to 51% from 59.7%. This had been agreed with the Austrian Government in the Syndicate Agreement subscribed in 2014.
We covered the Olympic Games in Rio through our platforms Claro Video and Claro Sports. Other than in Brazil, where it was not exclusive, we had the exclusive rights to transmit the Games throughout Latin America on all platforms, including open broadcast, cable and streaming. Altogether we transmitted 903 events in 16 countries, which entailed 780 million minutes. It was therefore the most accessible and better connected event in Latin America.
