UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF A FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2021

Commission File Number: 1-16269

 

 

AMÉRICA MÓVIL, S.A.B. DE C.V.

(Exact Name of the Registrant as Specified in the Charter)

 

 

America Mobile

(Translation of Registrant’s Name into English)

 

 

Lago Zurich 245

Plaza Carso / Edificio Telcel, Piso 16

Colonia Ampliación Granada, Miguel Hidalgo

11529 Mexico City, Mexico

(Address of Principal Executive Office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


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Carlos Garcĺa-Moreno

Chief Financial Officer

carlos.garciamoreno@amovil.com

 

Daniela Lecuona Torras

Investor Relations Office

daniela.lecuona@americamovil.com

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América Móvil’s second quarter of

2021 financial and operating report

  

Mexico City, July 13th, 2021 - América Móvil, S.A.B. de C.V. (“América Móvil”) [BMV: AMX] [NYSE: AMX, AMOV], announced today its financial and operating results for the second quarter of 2021.

   2Q21

•   We added 4.2 million wireless subscribers in the second quarter, more than 2.0 million were postpaid subscibers. Brazil accounted for 1.1 million postpaid net adds.

   4.2M wireless net adds

•   On the fixed-line platform we added 128 thousand broadband accesses. All in all, we had net RGU disconnections of 132 thousand accesses.

   128k new broadband clients

•   Second quarter revenues, 253 billion pesos, were slightly higher than in the year-earlier quarter in nominal peso terms. At constant exchange rates, service revenue increased 5.3% year-on-year and 1.8% over the quarter.

  

Service revenues

+5.3% YoY at constant Fx

•   Mobile and fixed-line service revenue were up both on an annual basis and sequential basis at constant exchange rates. In the case of mobile, the increases were 7.2% and 2.2%, respectively; in the case of fixed-line, 1.5% and 0.6%, respectively. The expansion of mobile service revenues was driven by prepaid services, up 9.5% and 3.7%, respectively.

   Mobile & fixed service revenues were up on an annual & sequential basis

•   EBITDA came in at 84.9 billion pesos, a 2.8% increase in nominal peso terms from the year-earlier quarter. At constant exchange rates it increased 11.9%. However, adjusted for carrier discounts from Tracfone obtained then, EBITDA showed a strong performance, rising 14.6%.

   Adjusted EBITDA +15% YoY at constant Fx

•   Our 44.7 billion pesos operating profit was up 9.3% in nominal peso terms. At constant exchange rates, correcting for the carrier discounts referred to above, the annual increase in our operating profit would have been 23.7%.

  

Operating profit up

9.3% YoY

•   We obtained a comprehensive financing income in the amount of 17.2 billion pesos on the back of foreign exchange gains. It helped bring about a net profit for the quarter of 42.8 billion pesos that more than doubled that of the year-earlier quarter.

   Net profit of MxP 43Bn pesos

•   Our operating cash flow allowed us to fund capital expenditures in the amount of 57.4 billion pesos in the six months to June, reduce debt in the amount of 36.9 billion pesos and buy back shares in the amount of 11.0 billion pesos.

   CapEx of MxP 57Bn pesos

•   We bought back 765.1 million shares, more than any amount repurchased in each of the last six years.

  

•   At the end of June, our net debt stood at 591 billion pesos including 103 billion in capitalized leases; it was equivalent to 1.64 times LTM EBITDA under IAS 17.

   Net debt to EBITDA at 1.64x

We will host our conference call to discuss 2Q21 financial and operating results on July 14th at 9:00 am Mexico City time. To access the call please log on to www.americamovil.com/investors

  
 


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América Móvil Fundamentals

             
     
      2Q21                                                   2Q20

Earnings per Share (Mex$) (1)

     0.65      0.30

Earning per ADR (US$) (2)

     0.64      0.25

EBITDA per Share (Mex$) (3)

     1.28      1.25

EBITDA per ADR (US$)

     1.28      1.07

Net Income (millions of Mex$)

     42,816      19,500

Average Shares Outstanding (billion)

     66.30      65.97

Shares Outstanding End of Period (billion)

     66.10      65.94

(1) Net Income / Average Shares Outstanding

(2) 20 shares per ADR

(3) EBITDA / Average Shares Outstanding

 

América Móvil’s Subsidiaries as of June 2021

   
       
    Country    Brand    Business  

Equity

Participation

Mexico

   Telcel    wireless   100.0%
     Telmex    wireline   98.8%
     Sección Amarilla    other   100.0%
     Telvista    other   90.0%

Argentina

   Claro    wireless   100.0%
     Telmex    wireline   100.0%

Brazil

   Claro    wireless/wireline   99.6%

Chile

   Claro    wireless   100.0%
     Telmex    wireline   100.0%

Colombia

   Claro    wireless/wireline   99.4%

Costa Rica

   Claro    wireless   100.0%

Dominicana

   Claro    wireless/wireline   100.0%

Ecuador

   Claro    wireless/wireline   100.0%

El Salvador

   Claro    wireless/wireline   95.8%

Guatemala

   Claro    wireless/wireline   99.3%

Honduras

   Claro    wireless/wireline   100.0%

Nicaragua

   Claro    wireless/wireline   99.6%

Panama

   Claro    wireless/wireline   100.0%

Paraguay

   Claro    wireless/wireline   100.0%

Peru

   Claro    wireless/wireline   100.0%

Puerto Rico

   Claro    wireless/wireline   100.0%

Uruguay

   Claro    wireless/wireline   100.0%

USA

   Tracfone    wireless   100.0%

Netherlands

   KPN    wireless/wireline   20.9%

Austria

   Telekom Austria    wireless/wireline   51.0%
 


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The reported figures for Argentina corresponding to the second quarter of 2021 are presented in accordance with a) IAS29 reflecting the effects of the adoption of inflationary accounting that became mandatory after the Argentinean economy was deemed to be hyperinflationary in the third quarter of 2018 and b) IAS21 translated to Mexican pesos using the end-of-period exchange rate.

  

All comparisons at constant exchange rates for América Móvil’s consolidated figures will exclude Argentina to ensure consistency.

  

Relevant Events

  

 

 

On May 7th, we informed that a Tribunal from the International Center for Settlement of Investment Disputes (“ICSID”) issued an award in the arbitration proceeding initiated in August 2016 against the Republic of Colombia pursuant to the Free Trade Agreement between Mexico and Colombia. The ICSID Tribunal held that certain measures adopted by Colombia in relation with the concessions terminated in 2013 by Comunicación Celular, S.A. (COMCEL), subsidiary of AMX, did not represent an expropriation of AMX’s investments in COMCEL.

  

On May 28th we entered into a committed five-year revolving credit facility (RCF) in an amount in euros equivalent to 1.5 billion U.S. dollars, which replaced an older one. Including this one and one entered into at the level of Telekom Austria, we have three committed RCFs in place for a total amount of 5 billion U.S. dollars that are important liquidity buffers for América Móvil. For the first time, we introduced ESG metrics in the facility, which may result in improved terms in its pricing.

  

Access Lines

  

 

  

We added 4.2 million wireless subscribers in the second quarter including 1.4 million in Brazil, 870 thousand in Argentina, approximately 430 thousand in each of Mexico and Colombia and approximately 300 thousand in each of Peru and Austria. Just over half of the net adds were postpaid with Brazil accounting for 1.1 million postpaid net adds. Our postpaid subscriber base increased 10.7% and our prepaid one 5.6% year-on-year. We ended the quarter just shy of 300 million wireless subscribers.

   Postpaid base up 11% YoY

On the fixed-line platform we added 128 thousand broadband accesses. All in all, we disconnected 132 thousand RGUs. At the end of June we had 80.5 million RGUs.

   128k new broadband accesses
 


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Wireless Subscribers as of June 2021

 

      Total(1) (Thousands)  
           
Country           Jun ’21             Mar ’21             Var.%             Jun ’20             Var.%  

Argentina, Paraguay and Uruguay

     25,541        24,618        3.8%        24,259        5.3%  

Austria & CEE

     22,325        21,932        1.8%        21,208        5.3%  

Brazil

     67,772        66,337        2.2%        58,520        15.8%  

Central America

     15,912        15,569        2.2%        14,541        9.4%  

Caribbean

     6,713        6,562        2.3%        6,087        10.3%  

Chile

     6,746        6,581        2.5%        6,793        -0.7%  

Colombia

     33,844        33,461        1.1%        31,535        7.3%  

Ecuador

     8,308        8,104        2.5%        7,878        5.5%  

Mexico

     78,742        78,311        0.5%        75,378        4.5%  

Peru

     11,501        11,181        2.9%        10,387        10.7%  

USA

     20,334        20,883        -2.6%        20,918        -2.8%  

Total Wireless Lines

     297,737        293,538        1.4%        277,503        7.3%  

(1) Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated.

Fixed-Line and Other Accesses (RGUs) as of June 2021

 

       Total(1) (Thousands)  
           
Country           Jun ’21             Mar ’21             Var.%             Jun ’20             Var.%  

Argentina, Paraguay and Uruguay

     1,679        1,527        10.0%        1,278        31.4%  

Austria & CEE

     6,072        6,079        -0.1%        6,105        -0.5%  

Brazil

     31,926        32,273        -1.1%        33,260        -4.0%  

Central America

     4,327        4,291        0.8%        4,379        -1.2%  

Caribbean

     2,615        2,586        1.1%        2,509        4.2%  

Chile

     1,372        1,376        -0.3%        1,401        -2.1%  

Colombia

     8,673        8,527        1.7%        7,938        9.3%  

Ecuador

     493        476        3.6%        454        8.5%  

Mexico

     21,536        21,739        -0.9%        21,961        -1.9%  

Peru

     1,855        1,805        2.8%        1,707        8.7%  

Total RGUs

     80,547        80,680        -0.2%        80,993        -0.6%  

(1) Fixed Line, Broadband and Television (Cable & DTH). Central America figures have been adjusted in accordance with the methodology used for all AMX operations.

 


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América Móvil Consolidated Results   

 

  

As the U.S. economy recovered rapidly, signs of higher inflation towards the latter part of the second quarter created uncertainty and confusion and drove price corrections in some segments of the financial markets. The yield on three-year Treasury notes, for instance, rose 15 basis points—the equivalent of a 50% increase in yield—as the market brought forward the expected path of increases in interest rates by the Fed. In several Latin American countries inflation exceeded expectations and pushed some central banks—notably in Brazil and Mexico—to begin to hike interest rates. Foreign exchange volatility increased throughout Latin America.

  

At 253 billion pesos, our revenue was slightly higher, 0.4% than in the year-earlier quarter in nominal peso terms, with service revenue declining 4.6% and equipment revenue jumping 34.0% on the face of greater commercial activity. At constant exchange rates, service revenue actually increased 5.3% year-on-year and, importantly, was up 1.8% on a sequential basis. It is to be noted that the second quarter of 2020 was the one in which the effects of the pandemic both in terms of commercial activity and revenue were more deeply felt, so the annual comparison may be somewhat misleading. But the first quarter of 2020 was largely free of the effects of the pandemic and happens to be a good reference: in the first quarter of this year, service revenue had risen 1.2% from the prior year.

   Service revenues +5.3% YoY at constant Fx

Nominal peso revenue growth turned out to be significantly lower than that at constant exchange rates due to the fact that in the reference period the Mexican peso appreciated vs. all other currencies in our operations bar none. The value of the Mexican peso rose 16.3% vs. the U.S. dollar, 6.3% vs. the euro; 14.7% vs. the Brazilian real and 12.0% vs. the Colombian peso, appreciating even more vs. the Peruvian sol, 28.6%, and the Argentinean peso, 61.6%. The above means that the revenue of our combined international operations came down in Mexican peso terms, dragging with it the total amount of nominal peso revenue.

  

2Q21 Service Revenues(1)

(%)

 

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Mobile and fixed-line service revenues were up both on an annual basis and on a sequential basis at constant exchange rates. In the case of mobile, the

  

(1) Includes Fixed-Broadband, Pay-TV and Fixed Voice in double or triple play bundles.

   Prepaid revenues up 9.5% YoY and 3.7% QoQ at constant Fx

increases were 7.2% and 2.2% respectively; in the case of fixed-line, 1.5% and 0.6%. The expansion of mobile service revenues was driven by prepaid services, up 9.5% and 3.7% respectively, with postpaid service revenues expanding 4.4% and 0.5%. The high sequential increase in prepaid revenue goes to show the strength of the recovery currently underway in Mexico and the U.S., but also in Central America/Caribbean and Eastern Europe, regions where prepaid services are relatively more important.

  
 


 

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On the fixed-line platform both broadband and corporate network services also presented annual and sequential revenue increases: 7.0% and 0.9% for broadband, and 3.9% and 1.1% for corporate networks. PayTV and wireline voice were the only business lines that exhibited declines both on an annual and sequential basis, at -5.3% and -2.3%, and -6.4% and -0.9% respectively.

   Broadband & corporate network services presented annual and sequential increases

América Móvil’s Income Statement Millions of Mexican pesos

             
      2Q21      2Q20      Var.%        Jan-Jun 21        Jan-Jun 20      Var.%  

Service Revenues

     209,466          219,457        -4.6%        416,575        428,970        -2.9%  

Equipment Revenues

     41,137        30,699        34.0%        80,352        70,179        14.5%  

Total Revenues*

     252,507        251,583        0.4%        500,693        501,645        -0.2%  

Cost of Service

     74,807        77,298        -3.2%        149,999        152,774        -1.8%  

Cost of Equipment

     41,232        35,341        16.7%        81,737        75,729        7.9%  

Selling, General & Administrative Expenses

     50,004        55,142        -9.3%        99,434        110,708        -10.2%  

Others

     1,517        1,154        31.5%        2,920        2,199        32.8%  

Total Costs and Expenses

     167,560        168,935        -0.8%        334,090        341,410        -2.1%  

EBITDA

     84,947        82,648        2.8%        166,603        160,236        4.0%  

% of Total Revenues

     33.6%        32.9%                 33.3%        31.9%           

Depreciation & Amortization

     40,241        41,740        -3.6%        80,750        80,417        0.4%  

EBIT

     44,706        40,908        9.3%        85,853        79,819        7.6%  

% of Total Revenues

     17.7%        16.3%                 17.1%        15.9%           

Net Interest Expense

     8,363        8,972        -6.8%        17,105        18,352        -6.8%  

Other Financial Expenses

     -4,447        1,339        n.m.        6,300        -21,753        129.0%  

Foreign Exchange Loss

     -21,077        1,371        n.m.        -4,716        94,099        -105.0%  

Comprehensive Financing Cost (Income)

     -17,161        11,682        -246.9%        18,689        90,698        -79.4%  

Income & Deferred Taxes

     17,762        8,156        117.8%        20,320        -3,864        n.m.  

Net Income before Minority Interest and Equity Participation in Results of Affiliates

     44,104        21,070        109.3%        46,845        -7,015        n.m.  

Equity Participation in Results of Affiliates

     3        -286        100.9%        16        -284        105.7%  

Minority Interest

     -1,291        -1,284        -0.6%        -2,235        -2,063        -8.3%  

Net Income

     42,816        19,500        119.6%        44,626        -9,362        n.m.  

*Total revenues include Other Revenues.

n.m. Not meaningful.

 


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Selling and marketing expenses were up 9.6% year-on-year and 2.2% quarter-over-quarter at constant exchange rates, with the cost of equipment rising 26.7% and 2.7% respectively. Bad debt provisions, for their part, plummeted 51.2% on an annual basis and -2.0% sequentially. The cost of service increased 7.3% annually principally on account of there having been some carrier discounts applied last year for the benefit of Tracfone. In the absence of these discounts the cost of service would have increased 4.7% year-on-year.

   Bad debt was down 51% YoY at constant Fx

Second quarter EBITDA came in at 84.9 billion pesos, a 2.8% increase in nominal peso terms from the year-earlier quarter. At constant exchange rates it increased 11.9%. However, adjusted for the carrier discounts mentioned above, EBITDA had a strong performance, increasing 14.6%. The EBITDA margin was 33.6%, a 0.8 percentage points increase from a year before in spite of the greater commercial activity.

   Adjusted EBITDA +15% YoY at constant Fx

Our operating profit increased 9.3% to 44.7 billion pesos. Depreciation and amortization charges held steady at 19% of service revenues, resulting—given the increase in EBITDA—in an operating profit that was up 17.9% at constant exchange rates on an annual basis and 6.2% quarter-over-quarter. Correcting for the carrier discounts referred to above, the annual increase in our operating profit would have been 23.7%.

   Adjusted operating profit +24% YoY at constant Fx

 

Balance Sheet - América Móvil Consolidated Millions of Mexican Pesos

 

     Jun ‘21     Dec ‘20     Var.%                Jun ‘21     Dec ‘20     Var.%  

Current Assets

                               Current Liabilities                        

Cash, Marketable Securities & Other Short Term Ivestments

    100,140       90,554       10.6%          Short Term Debt*     117,890       148,083       -20.4%  

Accounts Receivable

    216,088       228,906       -5.6%          Lease-Related Debt     27,683       25,068       10.4%  

Other Current Assets

    16,991       10,385       63.6%          Accounts Payable     265,329       237,287       11.8%  

Inventories

    31,699       30,377       4.4%          Other Current Liabilities     94,515       96,872       -2.4%  
      364,919       360,223       1.3%                505,418       507,311       -0.4%  
                                                          

Non Current Assets

 

               Non Current Liabilities

 

Plant & Equipment, gross

    1,368,727       1,355,801       1.0%             Long Term Debt     470,360       480,300       -2.1%  

-Depreciation

    659,395       632,871       4.2%          Lease-Related Debt     75,518       84,259       -10.4%  

Plant & Equipment, net

    709,332       722,930       -1.9%          Other Liabilities     239,291       238,061       0.5%  

Rights of Use

    94,481       101,977       -7.4%                785,169       802,620       -2.2%  

Investments in Affiliates

    1,776       1,830       -2.9%                                   
                                                          

Deferred Assets

                                                        

Goodwill (Net)

    140,665       143,053       -1.7%                                   

Intangible Assets

    128,308       133,457       -3.9%          Shareholder’s Equity     316,493       315,118       0.4%  

Deferred Assets

    167,599       161,579       3.7%                                   
                                                          

Total Assets

    1,607,080       1,625,048       -1.1%          Total Liabilities and Equity     1,607,080       1,625,048       -1.1%  

Includes current portion of Long Term Debt.

 


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We registered a net comprehensive income in the amount of 17.2 billion pesos, as foreign exchange gains, 21.1 billion pesos, and gains in other financial expenses, 4.4 billion pesos, more than offset our net interest expense of 8.4 billion pesos.

   Comprehensive financing income of MxP 17Bn

Our net profit totaled 42.8 billion pesos in the second quarter, more than doubling that of the year-earlier quarter on the back of strong EBITDA growth and our net comprehensive financing income. It was equivalent to 65 peso-cents per share or 64 dollar-cents per ADR.

   Net profit of MxP 43Bn

In the six months to June our operating cash flow allowed us to fund capital expenditures in the amount of 57.4 billion pesos; reduce net debt in the amount of 36.9 billion pesos and buy back shares in the amount of 11.0 billion pesos. In addition, we reduced by 5.6 billion pesos our labor obligations.

   CapEx of MxP 57Bn

Our share buy-backs through June, 765.1 million shares, topped those of each of the last six years.

   Largest share buy-backs in six years

At the end of June our net debt stood at 591 billion pesos, including 103 billion in capitalized leases. It was equivalent to 1.64 times LTM EBITDA.

   Net debt to EBITDA at 1.64x

 

Financial Debt of América Móvil* Millions      
     
      Jun -21      Dec -20  

Peso - denominated debt (MxP)

     64,250        78,383  

Bonds(1)

     51,450        51,283  

Banks and others

     12,800        27,100  

U.S. Dollar - denominated debt (USD)

     9,376        9,351  

Bonds

     9,351        9,351  

Banks and others

     25        0  

Euro - denominated Debt (EUR)

     9,282        9,780  

Bonds

     9,197        8,100  

Commercial Paper

     85        1,680  

Banks and others

     0        0  

Sterling - denominated Debt (GBP)

     2,200        2,200  

Bonds

     2,200        2,200  

Reais - denominated Debt (BRL)

     7,375        8,475  

Bonds

     7,375        8,475  

Banks and others

     0        0  

Debt denominated in other currencies(2) (MxP)

     30,920        32,610  

Bonds

     6,359        6,590  

Banks and others

     24,561        26,020  

Total Debt (MxP)

     588,250                             628,383  

Cash, Marketable Securities and Short Term Financial Investments (MxP)

     100,140        90,554  

Net Debt (MxP)

     488,110        537,829  

* This table does not include the effect of forwards and derivatives used to hedge our foreign exchange exposure. It includes financial debt of Telekom Austria.

  (1) 

Includes the effect of inflation-linked debt.

  (2)

Includes Peruvian soles and Chilean pesos.

 


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Mexico

  

We added 430 thousand wireless subscribers in the second quarter, all of them prepaid, to finish June with 78.7 million subscribers, increasing the activation of new lines partly as a result of more availability of handsets since supply had been very limited. On the fixed-line platform we disconnected 204 thousand accesses, of which 165 thousand were land-lines. We have made significant progress in the modernization of our customer care systems, moving to an omnichannel platform for on-line services.

   430k mobile net adds

Revenues rose 19.7% year-on-year to 75.3 billion pesos, as equipment revenues shot up 79.8% and service revenues expanded 7.4%. Quarter-over-quarter, equipment revenues were up 16.2% while service revenues increased 2.2%. On the mobile platform service revenues climbed 11.9% on an annual basis and 3.6% on a sequential basis, driven by prepaid revenues that soared 17.7% and 5.2%, respectively. ARPU increased 7.9% and 3.3% respectively, to reach 157 pesos in the second quarter. The sequential improvements are linked to greater mobility and economic activity.

   Service revenues +7.4% YoY and +2.2% QoQ

On the fixed-line platform service revenues declined slightly, -0.4%, on the back of voice revenues that were down 5.3% and broadband revenues that rose 4.1%, with corporate network revenues increasing 1.6%. Streaming plans with Netflix and Disney+, as well as HBO Max have gained significant traction in the market.

   Broadband revenues +4.1% YoY

EBITDA jumped 20.6% from the year-earlier quarter to 29.5 billion pesos—having increased 2.4% sequentially. At 39.1%, the EBITDA margin was 0.3 percentage points higher than a year before. As for our operating profit, it totaled 21.7 billion pesos, a 30.5% increase in the year.

   EBITDA up 21% YoY and 2.4% QoQ

Telcel has been expanding its coverage throughout the country looking to reach more remote and marginalized areas.

  

INCOME STATEMENT - Mexico Millions of MxP

             
      2Q21      2Q20      Var.%        Jan-Jun 21        Jan-Jun 20      Var.%  

Total Revenues*

     75,291        62,884        19.7%        146,757        136,066        7.9%  

Total Service Revenues

     55,743        51,920        7.4%        110,261        106,520        3.5%  

Total Equipment Revenues

     18,579        10,332        79.8%        34,566        28,438        21.5%  

Wireless Revenues

     55,223        43,095        28.1%        106,561        96,490        10.4%  

Service Revenues

     36,760        32,854        11.9%        72,239        68,409        5.6%  

Equipment Revenues

     18,464        10,241        80.3%        34,322        28,081        22.2%  

Fixed Line Revenues

     19,098        19,158        -0.3%        38,267        38,468        -0.5%  

Service Revenues

     18,984        19,066        -0.4%        38,022        38,110        -0.2%  

Equipment Revenues

     115        91        25.5%        244        357        -31.6%  

EBITDA

     29,450            24,420            20.6%            58,209            52,191            11.5%  

% total revenues

     39.1%        38.8%                 39.7%        38.4%           

EBIT

     21,727        16,655        30.5%        42,784        36,692        16.6%  

%

     28.9%        26.5%                 29.2%        27.0%           

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

 


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Mexico Operating Data

                          
       
      2Q21                          2Q20                          Var.%  

Wireless Subscribers (thousands)

     78,742        75,378        4.5%  

Postpaid

     14,556        14,452        0.7%  

Prepaid

     64,185        60,926        5.3%  

MOU

     546        537        1.8%  

ARPU (MxP)

     157        146        7.9%  

Churn (%)

     3.5%        4.1%        (0.6)  

Revenue Generating Units (RGUs) *

     21,536        21,961        -1.9%  

Fixed Lines

     11,582        12,100        -4.3%  

Broadband

     9,954        9,861        0.9%  

* Fixed Line and Broadband.

 

Argentina   

 

  

For comparison purposes all comments in this section related to annual variations of the presented period for Argentina refer to figures in constant peso terms, that is, adjusted for inflation in accordance to NIC 29. Information for Uruguay and Paraguay is not presented in the table.

  

We added 777 thousand prepaid and 93 thousand postpaid wireless subscribers in the second quarter. It was the strongest performance in commercial activities in well over a year, particularly regarding prepaid. We are focused on reducing mobile churn by improving the customer experience, delivering on quality and speed as well as customer care. We are enhancing our digital channels to be closer to our clients.

   777k prepaid net adds

On the fixed-line platform we connected 62 thousand broadband accesses, 20 thousand PayTV clients and 59 thousand landlines, for a total of 141 thousand fixed-line RGUs.

   We connected 62k broadband clients

In the second quarter, service revenues totaled 29.5 billion Argentinean pesos, with mobile prices remaining unchanged in the second quarter. Prepaid revenues fell 1.9% quarter-over-quarter while postpaid was practically flat.

   Mobile prices remained unchanged

Fixed-line service revenue increased 7.1% annually (7.4% sequentially) with broadband revenue up 33.3% and PayTV revenues that expanded 63.3%, mostly on the back of IPTV. We will continue to develop our presence in the corporate and SME segments of the market.

   Fixed-line service revenues up 7.1% YoY and 7.4% QoQ

EBITDA came in at 14.2 billion Argentinean pesos, down 3.3% annually in real terms. The margin for the period stood at 39.7%, 1.6 percentage points higher than a year before.

   EBITDA margin at 40% of revenues
 


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INCOME STATEMENT - Argentina Millions of Constant ARS of June 2021

 

                 
             
      2Q21          2Q20            Var.%      Jan-Jun 21      Jan-Jun 20          Var.%  

Total Revenues*

     35,820        38,600        -7.2%        72,147        78,503        -8.1%  

Total Service Revenues

     29,535        33,821        -12.7%        58,874        66,814        -11.9%  

Wireless Revenues

     31,675        34,468        -8.1%        64,211        70,762        -9.3%  

Service Revenues

     25,510        30,063        -15.1%        51,103        59,519        -14.1%  

Equipment Revenues

     6,165        4,405        40.0%        13,108        11,244        16.6%  

Fixed Line Revenues

     4,025        3,758        7.1%        7,771        7,295        6.5%  

EBITDA

     14,222        14,700        -3.3%        28,616        29,688        -3.6%  

% total revenues

     39.7%        38.1%                 39.7%        37.8%           

EBIT

     11,226        11,298        -0.6%        22,414        22,994        -2.5%  

%

     31.3%        29.3%                 31.1%        29.3%           

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

 

Argentina Operating Data

                          
       
                      2Q21                      2Q20                      Var.%  

Wireless Subscribers (thousands)(1)

     22,697        21,564        5.3%  

Postpaid

     8,642        8,359        3.4%  

Prepaid

     14,055        13,205        6.4%  

MOU

     82        95        -14.2%  

ARPU (ARP)

     378        305        24.2%  

Churn (%)

     1.2%        1.9%        (0.7)  

Revenue Generating Units (RGUs) *

     1,362        962        41.6%  

* Fixed Line, Broadband and Television.

(1) Hybrid subscribers are now included in our postpaid figures.

 


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Brazil

 

  

In the second quarter Claro added 1.4 million wireless subscribers, 1.1 million of them postpaid, ending June with 67.8 million subscribers. Our postpaid base was up 22.9% year-on-year, a more rapid pace than the one shown the prior quarter. As was the case then, Claro kept a positive balance from Mobile Number Portability, porting-in 700 thousand clients in net terms. On the fixed-line platform we disconnected 347 thousand accesses in the quarter, including 148 thousand PayTV clients and 152 thousand land-lines.

   1.1M posptaid net adds

Second quarter revenues increased 2.3% from a year before, reaching 9.8 billion reais, with service revenues rising 1.0%. Those from mobile jumped 10.2% and those on the fixed-line platform declined 5.8%. On mobile, postpaid services won the day, climbing 11.2% on an annual basis and 2.2% quarter-over-quarter, with Claro continuing to lead market share growth in the sector. Prepaid services for their part held firm at 6.6% year-on-year revenue growth and 1.0% sequentially.

   Postpaid revenues +11% YoY and 2.2% QoQ

On the fixed-line platform PayTV services declined 12.7% and voice revenues 21.0%, with broadband service revenues decelerating to a 4.9% pace from 7.2% the prior quarter. We held on to our leadership position in the ultrabroadband segment.

   Leaders in the ultrabroadband segment

EBITDA rose 2.6% from the year-earlier quarter to 3.9 billion reais with the EBITDA margin expanding 0.1 percentage points to 40.1% helped along by reductions in bad debt provisions and other administrative expenses. EBITDA was up 0.3% sequentially.

   EBITDA +2.6% YoY

Claro was the first operator to launch 5G network services in Brazil, currently available in 15 cities delivering connection speeds that are 12x faster than conventional 4G. Claro also has the best coverage with 4.5G, reaching nearly 80% of the population.

   Claro first operator in Brazil to launch 5G network services

 

INCOME STATEMENT - Brazil Millions of BrL

 

                 
      2Q21              2Q20                Var.%      Jan-Jun 21      Jan-Jun 20                Var.%  

Total Revenues*

     9,755        9,536        2.3%        19,529        19,327        1.0%  

Total Service Revenues

     9,427        9,333        1.0%        18,907        18,854        0.3%  

Wireless Revenues

     4,685        4,160        12.6%        9,249        8,502        8.8%  

Service Revenues

     4,375        3,969        10.2%        8,665        8,051        7.6%  

Equipment Revenues

     310        191        61.8%        584        451        29.6%  

Fixed Line Revenues

     5,052        5,364        -5.8%        10,242        10,803        -5.2%  

EBITDA

     3,916        3,816        2.6%        7,821        7,525        3.9%  

% total revenues

     40.1%        40.0%                 40.0%        38.9%           

EBIT

     1,383        1,571        -12.0%        2,638        3,000        -12.1%  

%

     14.2%        16.5%                 13.5%        15.5%           

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

 


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Brazil Operating Data

                          
      2Q21        2Q20        Var.%

Wireless Subscribers (thousands)

     67,772          58,520        15.8%

Postpaid

     39,134          31,852        22.9%

Prepaid

     28,638          26,668        7.4%

MOU(1)

     160          186        -14.4%

ARPU (BrL)

     22          23        -6.1%

Churn (%)

     3.2%          4.1%        (1.0)

Revenue Generating Units (RGUs) *

     31,926          33,260        -4.0%

 

  *

Fixed Line, Broadband and Television.

  (1) 

We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

 

Colombia

 

  

In a more complicated commercial environment—a new mobile competitor launched their operations in the quarter—Claro maintained a strong position in the market, adding 382 thousand mobile subscribers of which 159 thousand were postpaid subscribers. We gained 75 thousand subscribers in the quarter through the Number-Portability scheme. Claro’s commercial offerings have significantly increased the data allowances per plan, helping the company remain competitive in spite of the more aggressive commercial pressures it faced. Our convergent platform has been key in helping us drive increased data traffic on our network. On the fixed-line platform we gained 146 thousand RGUs in the quarter, including 62 thousand broadband accesses and 34 thousand PayTV clients.

  

In spite of new

competitor, we

added 382k

wireless subscribers

Revenues were up 14.1% year-on-year to 3.6 trillion Colombian pesos with service revenues expanding 8.9%, partly reflecting the revenue decline a year before; quarter-over-quarter service revenues were practically flat, -0.3%. On the mobile segment, service revenues increased 6.9% on the back of postpaid revenues that expanded 8.1% from the year-earlier quarter.

  

Mobile service

revenues +6.9% YoY

Fixed-line service revenues decelerated somewhat, to 12.2% from 13.7% in the first quarter, mainly reflecting the slowdown in broadband revenue growth, although quarter over quarter they rose 1.7%. PayTV revenues accelerated to a 14.6% pace. We launched our 500 Mbps broadband plan during the quarter, as well as the Claro Vox plan on PayTV, which is compatible with Android TV.

  

Fixed-line service

revenues 12% YoY

Second quarter EBITDA increased 15.6% from the year-earlier quarter to 1.5 trillion Colombian pesos, its best performance in years. It was slightly down, -0.3%, on a sequential basis, with first quarter EBITDA having risen 10.3%—prepandemic—on an annual basis. The EBITDA margin for the period was equivalent to 42.8% of revenues, slightly better than a year before in spite of the much greater commercial activity.

   EBITDA +16% YoY

We continue to add capacity to our network anticipating strong demand for data services. Our convergent platform allows us to significantly expand our data capabilities in cost-efficient terms.

  
 


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INCOME STATEMENT - Colombia Billions of COP

      2Q21        2Q20        Var.%      Jan-Jun 21      Jan-Jun 20        Var.%

Total Revenues*

     3,573          3,131          14.1%        7,122        6,361        12.0%

Total Service Revenues

     2,785          2,556          8.9%        5,579        5,146        8.4%

Wireless Revenues

     2,368          2,114          12.0%        4,734        4,353        8.7%

Service Revenues

     1,662          1,555          6.9%        3,352        3,174        5.6%

Equipment Revenues

     707          559          26.3%        1,382        1,180        17.2%

Fixed Line Revenues

     1,152          1,005          14.6%        2,285        1,980        15.4%

EBITDA

     1,529          1,323          15.6%        3,062        2,712        12.9%

%

     42.8%          42.2%                   43.0%        42.6%         

EBIT

     910          727          25.1%        1,820        1,542        18.1%

%

     25.5%          23.2%                   25.6%        24.2%         

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

 

Colombia Operating Data

            
       
      2Q21        2Q20        Var.%

Wireless Subscribers* (thousands)

     33,844          31,535        7.3%

Postpaid

     8,078          7,422        8.8%

Prepaid

     25,765          24,113        6.9%

MOU(1)

     294          336        -12.3%

ARPU (COP)

     16,545          16,670        -0.7%

Churn (%)

     3.9%          4.5%        (0.6)

Revenue Generating Units (RGUs)**

     8,673          7,938        9.3%

*Due to differences in the policy for accounting active subscribers, the figures in this report are different from those published by the Ministry of Communications of Colombia (MinTIC). **Fixed Line, Broadband and Television.

(1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

 

Chile

 

  

Chile was hardly hit by a second wave of contagion that resulted in a strict lockdown in the second quarter. We gained 128 thousand postpaid and 37 thousand prepaid subscribers in the second quarter, with fixed-line RGUs roughly flat.

  

128k postpaid net

adds

Revenue totaled 194.4 billion Chilean pesos, up 6.6% year-on-year as service revenues expanded 2.3% and equipment revenues shot up 35.0%. Fixed-line revenues had a good performance as demand for connectivity remains strong, with service revenues expanding 7.6% from the year-earlier quarter on the back of PayTV revenues, up 20.0%, with broadband revenues staying flat and voice revenues declining 13.4%. Mobile service revenues were down 1.8% annually, with postpaid revenues declining slightly, -0.5%.

  

Service revenues

up 2.3% YoY

Second quarter EBITDA of 39.4 billion Chilean pesos was up slightly in annual terms, 0.5%, with the EBITDA margin representing 20.3% of revenues.

  

EBITDA margin at

20% of revenues

In the quarter we acquired from Entel 30MHz of spectrum in the 3.5GHz band.

  
 


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INCOME STATEMENT - Chile Millions of ChPL

             
      2Q21      2Q20      Var.%      Jan-Jun 21      Jan-Jun 20        Var.%

Total Revenues*

     194,423        182,354        6.6%        394,515        381,703        3.4%

Total Service Revenues

     162,097        158,450        2.3%        325,100        324,204        0.3%

Wireless Revenues

     119,074        112,377        6.0%        243,699        237,711        2.5%

Service Revenues

     86,900        88,536        -1.8%        175,499        180,575        -2.8%

Equipment Revenues

     32,174        23,841        35.0%        68,200        57,137        19.4%

Fixed Line Revenues

     75,197        69,914        7.6%        149,602        143,629        4.2%

EBITDA

     39,395        39,187        0.5%        83,923        82,180        2.1%

% total revenues

     20.3%        21.5%                 21.3%        21.5%         

EBIT

     -20,801        -18,445        -12.8%        -29,359        -26,503        -10.8%

%

     -10.7%        -10.1%                 -7.4%        -6.9%         

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

 

Chile Operating Data

       
      2Q21        2Q20        Var.%

Wireless Subscribers (thousands)

     6,746          6,793        -0.7%

Postpaid

     2,617          2,276        15.0%

Prepaid

     4,129          4,517        -8.6%

MOU

     179          178        0.5%

ARPU (ChP)

     4,553          4,782        -4.8%

Churn (%)

     4.8%          6.2%        (1.4)

Revenue Generating Units (RGUs) *

     1,372          1,401        -2.1%

* Fixed Line, Broadband and Television.

 

Ecuador

 

  

The economic conditions in Ecuador in the aftermath of the Covid-19 crisis have shifted more clients to prepaid; we gained 204 thousand new subs in the quarter, of which 187 thousand were prepaid subscribers. On the fixed-line platform we picked up 17 thousand RGUs.

  

187k prepaid net

adds

Mobile revenues increased 4.5% annually to 225 million dollars, with prepaid revenues rising 15.4% and postpaid revenues falling 16.4%. Sequentially they declined 1.2% and 2.6% respectively.

  

Prepaid revenues

+15% YoY

As a challenger in the fixed-line segment we increased the pace of fiber roll-out. We ended June with 300 thousand broadband accesses, 21.3% more than a year before. This brought about an increase in broadband revenues of 10.3%. Overall, fixed-line service revenues were up 2.1% year-on-year but, importantly, they shot up 4.8% quarter-over-quarter.

  

300k new

broadband

accesses

EBITDA declined 5.3% from the year before to 115 million dollars but relative to the prior quarter it was up 4.7%. The EBITDA margin for the period was equivalent to 45.5% of revenues.

  

EBITDA down 5.3% YoY

 


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INCOME STATEMENT - Ecuador Millions of Dollars

             
      2Q21        2Q20        Var.%        Jan-Jun 21        Jan-Jun 20        Var.%  

Total Revenues*

     252          242          4.2%          506          549          -7.9%  

Total Service Revenues

     224          234          -4.1%          451          496          -9.0%  

Wireless Revenues

     225          216          4.5%          453          497          -8.8%  

Service Revenues

     198          208          -4.8%          400          445          -10.1%  

Equipment Revenues

     27          7          266.7%          53          51          3.0%  

Fixed Line Revenues

     27          27          1.2%          52          52          0.0%  

EBITDA

     115          121          -5.3%          224          250          -10.4%  

% total revenues

     45.5%          50.0%                     44.4%          45.6%             

EBIT

     60          65          -8.0%          115          139          -16.8%  

%

     23.8%          26.9%                     22.8%          25.2%             

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

Ecuador Operating Data

       
      2Q21        2Q20        Var.%  

Wireless Subscribers (thousands)

     8,308          7,878          5.5%  

Postpaid

     2,048          2,548          -19.6%  

Prepaid

     6,260          5,329          17.5%  

MOU

     335          475          -29.5%  

ARPU (US$)

     8          9          -6.0%  

Churn (%)

     3.4%          5.4%          (2.0)  

Revenue Generating Units (RGUs) *

     493          454          8.5%  

* Fixed Line, Broadband and Television.

Peru

    

 

Peru was amongst the countries with more stringent lockdown measures at the beginning of the pandemic. Even though some areas still have restrictions in terms of mobility and curfews, we had a considerable annual swing in top line as well as sequential improvements in both fixed and mobile platforms. Net wireless subscriber additions came in at 320 thousand—38% more than in the first quarter—of which 234 thousand were postpaid, whereas on the fixed-line platform we obtained 50 thousand RGUS, half of them broadband accesses.

  

 

320k wireless net adds

Revenue expanded 43.8% year-on-year to 1.5 billion soles, with service revenues rising 13.7%, up from 7.7% in the prior quarter, and equipment revenues jumping five times. Equipment revenues had their worst quarter ever in 2Q20 and have returned to pre-pandemic levels. We have resumed commercial efforts and launched 5G services in Lima.

   Service revenues +14%YoY

Mobile service revenues were 10.4% higher than a year before driven by postpaid revenues that increased 10.6%. Quarter-over-quarter they increased 3.7% and 5.1% respectively. Prepaid revenues increased 9.9% in the period and were flat sequentially. On the fixed-line platform service revenues were booming, up 24.1% on the back of strong demand for connectivity which led to an increase of 41.4% in broadband revenues. PayTV revenues increased 4.6% after four quarters of declines as we improved our IPTV offer.

  

Postpaid revenues up 11% YoY and

5.1% QoQ

 


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EBITDA increased 47.3% from the year-earlier quarter to 575 million soles; the EBITDA margin was equivalent to 38.5% of revenues, nearly one percentage point more than a year before in spite of the comeback in commercial activity. To note, relative to service revenues, EBITDA shot up 12.1 percentage points from a year before. Compared to the previous quarter EBITDA rose 5.4% in absolute terms and 0.7 percentage points relative to revenues.

   EBITDA margin at 39% of revenue

INCOME STATEMENT - Peru Millions of Soles

             
      2Q21        2Q20        Var.%        Jan-Jun 21        Jan-Jun 20        Var.%  

Total Revenues*

     1,493          1,038          43.8%          2,936          2,333          25.9%  

Total Service Revenues

     1,088          957          13.7%          2,134          1,928          10.7%  

Wireless Revenues

     1,201          806          49.1%          2,368          1,870          26.6%  

Service Revenues

     804          728          10.4%          1,579          1,472          7.3%  

Equipment Revenues

     398          78          nm          789          398          98.2%  

Fixed Line Revenues

     284          229          24.1%          555          456          21.6%  

EBITDA

     575          391          47.3%          1,121          791          41.8%  

% total revenues

     38.5%          37.6%                     38.2%          33.9%             

EBIT

     286          128          123.7%          552          268          105.8%  

%

     19.2%          12.3%                     18.8%          11.5%             

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

Peru Operating Data

 

       
      2Q21        2Q20        Var.%  

Wireless Subscribers (thousands)

     11,501          10,387          10.7%  

Postpaid

     4,659          4,064          14.6%  

Prepaid

     6,842          6,323          8.2%  

MOU

     379          385          -1.7%  

ARPU (Sol)

     24          22          6.2%  

Churn (%)

     3.9%          5.2%          (1.2)  

Revenue Generating Units (RGUs) *

     1,855          1,707          8.7%  

* Fixed Line, Broadband and Television.

 


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Central America

    

 

Although there are still certain mobility restrictions in the Central American countries, very mild in general except for Panama where measures are still restrictive, we were able to add 344 thousand wireless subscribers, of which 321 thousand were prepaids. We gained 36 thousand fixed-line RGUs, including 20 thousand broadband accesses.

  

 

321k prepaid net

adds

Second quarter revenues, just shy of 600 million dollars, were 12.2% higher than a year before boosted by equipment revenues, up 83.6%. Service revenues increased 6.2% annually and 1.3% on a sequential basis with mobile service revenues rising 2.2%. Prepaid services were the main growth driver with revenue growth of 20.0% year-on-year and 3.7% sequentially. On the fixed-line platform service revenues expanded 1.2% annually and declined 0.4% relative to the first quarter as broadband and PayTV failed to compensate for the reduction in legacy services.

  

Service revenues

up 6.2% YoY and

1.3% QoQ

EBITDA was up 21.3% annually and 6.7% sequentially to 256 million dollars. It was equivalent to 42.7% of revenues, which compares to 39.5% in the second quarter of 2020.

   EBITDA up 21% YoY and 6.7% QoQ

INCOME STATEMENT - Central America Millions of Dollars

             
      2Q21        2Q20        Var.%        Jan-Jun 21        Jan-Jun 20        Var.%  

Total Revenues*

     599          534          12.2%          1,179          1,116          5.7%  

Total Service Revenues

     519          489          6.2%          1,032          1,003          2.9%  

Wireless Revenues

     408          346          17.8%          797          738          7.9%  

Service Revenues

     338          310          9.0%          669          643          4.1%  

Equipment Revenues

     69          36          94.3%          127          95          33.6%  

Fixed Line Revenues

     187          184          1.4%          374          371          0.8%  

EBITDA

     256          211          21.3%          495          429          15.3%  

% total revenues

     42.7%          39.5%                     42.0%          38.5%             

EBIT

     115          62          85.2%          215          140          53.8%  

%

     19.3%          11.7%                     18.3%          12.5%             

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

Central America Operating Data

       
      2Q21        2Q20        Var.%  

Wireless Subscribers (thousands)

     15,912          14,541          9.4%  

Postpaid

     2,314          2,459          -5.9%  

Prepaid

     13,599          12,082          12.6%  

MOU(1)

     170          179          -4.5%  

ARPU (US$)

     7          7          1.5%  

Churn (%)

     5.9%          6.7%          (0.9)  

Revenue Generating Units (RGUs) *

     4,327          4,379          -1.2%  

* Fixed Line, Broadband and Television. Figures have been adjusted in accordance with the methodology used for all AMX operations.

(1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

 


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Caribbean

    

 

Dominicana continued to improve on the back of its strong competitive position and our ability to cope with client’s needs in what has been a fairly restricted market in terms of sanitary measures. We added 126 thousand new wireless clients in the period, 3% more than in the first quarter and connected 14 thousand new broadband accesses. Service revenues increased 14.8% year-on-year (3.0% sequentially) to 12.9 billion dominican pesos, with mobile service revenues expanding 18.2% (2.5% sequentially). Prepaid service revenues, which had taken a hit in the second quarter of 2020, posted a 26.6% annual increase, and a 2.9% sequential rise. Postpaid service revenues started to pick up: they rose 9.2% and 2.1%, respectively. EBITDA was up 27.8% and 3.2%. The sequential increases across the board in revenue and EBITDA foretell the strength of the economic recovery in the island.

  

 

126k wireless net adds in Dominicana

In Puerto Rico commercial activity remained subdued, with few client additions on both the fixed and the mobile platforms. Revenues of 227 million dollars were up 13.5% year-on-year on the back of a 33.4% increase in equipment revenues and an 8.1% rise in service revenues. Mobile service revenues were up 17.2% with fixed-line service revenues declining 2.8% on an annual basis. Sequentially mobile service revenues were up 1.7% and those from the fixed-line platform down 1.2%.

  

Mobile service

revenues +17% YoY

and 1.7% QoQ in

Puerto Rico

EBITDA totaled 47 million dollars having risen 24.3% annually and 1.8% sequentially. The EBITDA margin, 20.8%, was 1.8 percentage points higher than a year before.

  

EBITDA up 24% YoY

and 1.8% QoQ in

Puerto Rico

INCOME STATEMENT - Caribbean Millions of Dollars

             
      2Q21        2Q20        Var.%        Jan-Jun 21        Jan-Jun 20        Var.%  

Total Revenues*

     467          405          15.4%          919          840          9.4%  

Total Service Revenues

     405          362          12.0%          799          750          6.6%  

Wireless Revenues

     295          241          22.2%          581          505          15.1%  

Service Revenues

     235          199          18.0%          464          417          11.4%  

Equipment Revenues

     59          42          42.0%          117          88          32.5%  

Fixed Line Revenues

     171          165          3.8%          339          339          0.1%  

EBITDA

     169          133          27.1%          333          274          21.4%  

% total revenues

     36.3%          32.9%                     36.2%          32.6%             

EBIT

     84          51          65.9%          165          110          50.1%  

%

     18.0%          12.5%                     17.9%          13.1%             

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

 


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Caribbean Operating Data

       
      2Q21        2Q20        Var.%  

Wireless Subscribers (thousands)

     6,713          6,087          10.3%  

Postpaid

     2,112          2,013          4.9%  

Prepaid

     4,601          4,073          13.0%  

MOU(1)

     216          232          -6.7%  

ARPU (US$)

     12          11          9.6%  

Churn (%)

     2.1%          3.8%          -1.7  

Revenue Generating Units (RGUs) *

     2,615          2,509          4.2%  

 

  *

Fixed Line, Broadband and Television.

  (1)

We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

United States

    

As the vaccination process progressed, many U.S. states eliminated some or all the sanitary measures. This has brought about a surge of confidence and with it, a change in the spending pattern of U.S. consumers. Additionally, contrary to what happened at the peak of the pandemic where wireless subscribers felt more comfortable taking prepaid plans, we are now seeing stronger demand for postpaid which has intensified due to the strong commercial activity and promotions in that segment. These trends, coupled with the limited supply of handsets, resulted in net disconnections of 549 thousand in the quarter, approximately two thirds of which were Safelink clients.

  

549k net disconnections due to strong demand

for postpaid

The strength of the economic recovery under way also manifested itself in the spending by our subscribers, with service revenues climbing 5.3% year-on-year, their best performance in at least a year. They were 4.3% higher than in the preceding quarter.

  

Service revenues

+5.3% YoY

EBITDA of 272 million dollars was down 13%; the annual comparison is affected by an extraordinary credit booked in the second quarter of last year linked to negotiations of carrier discounts, adjusting for which EBITDA would have grown 25.9%. The EBITDA margin was equivalent to 12.9% of revenues.

  

Adjusted EBITDA up 26% YoY

INCOME STATEMENT - United States Millions of Dollars

             
      2Q21        2Q20        Var.%        Jan-Jun 21        Jan-Jun 20        Var.%  

Total Revenues

     2,101          2,087          0.7%          4,163          4,073          2.2%  

Service Revenues

     1,822          1,729          5.3%          3,569          3,421          4.3%  

Equipment Revenues

     279          357          -22.0%          594          652          -8.9%  

EBITDA

     272          313          -13.0%          457          429          6.6%  

% total revenues

     12.9%          15.0%                     11.0%          10.5%             

EBIT

     264          294          -10.2%          441          392          12.5%  

%

     12.6%          14.1%                     10.6%          9.6%             
 


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United States Operating Data

       
      2Q21        2Q20        Var.%  

Wireless Subscribers (thousands)

     20,334          20,918          -2.8%  

Straight Talk

     9,717          9,743          -0.3%  

SafeLink

     1,656          2,008          -17.5%  

Other Brands

     8,961          9,167          -2.3%  

MOU

     663          677          -2.1%  

ARPU (US$)

     29          28          5.6%  

Churn (%)

     4.2%          3.3%          0.9  

A1 Telekom Austria Group

    

 

We finished June with 22.3 million wireless subscribers, 5.3% more than a year before. Postpaid net additions of 355 thousand were fueled by mobile WiFi routers. In the prepaid segment we gained 38 thousand subscribers; we had 14 thousand disconnections in Austria where we are experiencing migrations from prepaid to postpaid. Fixed-line RGUs were roughly flat in the quarter.

  

 

355k postpaid net

adds

Altogether, revenues increased 6.4% annually, with service revenues up 3.9% (5.0% at constant FX) on the back of service revenue growth in all markets—except for Slovenia that was flat—and equipment revenues that grew 22%.

  

Service revenues

+5.0% YoY at

constant Fx

The first quarter still reflected the impact of severe lockdowns across our footprint, but sanitary measures began to be eased in the second quarter which helped bring about a sequential increase of service revenues of 2.2% supported by roaming revenues that picked up as travel restrictions eased.

  

Sequential increase

of service revenues,

+2.2% YoY

On the mobile front, on a group level service revenues increased 4.5% over the year and 2.6% sequentially. We had strong growth in Austria, Bulgaria, Croatia and Serbia driven by mobile WiFi. Fixed-line service revenues were up 3.3%—1.7% sequentially—with growth in all segments, especially Austria and Bulgaria as demand for connectivity and solutions remained strong.

  

Mobile service

revenues +4.5% YoY

EBITDA reached 428 million euros and was up 9.6% over the year; before restructuring charges it rose 8.1%—9.5% at constant exchange rates. On a sequential basis, EBITDA was up 7.4% with Austria expanding 8.8%. The EBITDA margin stood at 36.7% of revenues, 1.1 percentage points higher than a year before.

  

Adjusted EBITDA

9.5% YoY at

constant Fx

Telekom Austria group has been a top performer in revenue and EBITDA growth within the European telecom sector during the last three years.

  
 


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INCOME STATEMENT (In accordance with IFRS 16) - A1 Telekom Austria Group

                                                                                                                                               
Millions of Euros                                          
             
      2Q21      2Q20      Var.%      Jan-Jun 21      Jan-Jun 20      Var.%  

Total Revenues

     1,166        1,096        6.4%        2,301        2,222        3.6%  

Total service revenues

     976        939        3.9%        1,932        1,889        2.3%  

Wireless service revenues

     532        510        4.5%        1,051        1,030        2.0%  

Fixed-line service revenues

     444        430        3.3%        881        859        2.6%  

Equipment revenues

     167        137        22.0%        329        295        11.6%  

Other operating income

     23        19        15.9%        40        38        7.1%  

EBITDA

     428        390        9.6%        826        771        7.2%  

% total revenues

     36.7%        35.6%                 35.9%        34.7%           

Adjusted EBITDA(1)

     449        415        8.1%        868        812        6.9%  

% total revenues

     38.5%        37.9%                 37.7%        36.5%           

EBIT

     187        152        23.6%        351        299        17.3%  

% total revenues

     16.1%        13.8%                 15.2%        13.5%           

For further detail please visit www.a1.group/en/investor-relations

(1) Does not include restructuring charges in Austria.

 

                                                                                                              

A1 Telekom Austria Group Operating Data

        
       
      2Q21      2Q20      Var.%  

Wireless Subscribers (thousands)

     22,325        21,208        5.3%  

Postpaid

     18,368        17,195        6.8%  

Prepaid

     3,956        4,013        -1.4%  

MOU(1)

     429        440        -2.6%  

ARPU (Euros)

     8        8        0.0%  

Churn (%)

     1.2%        1.4%        (0.2)  

Revenue Generating Units (RGUs)*

     6,072        6,105        -0.5%  

*Fixed Line, Broadband and Television. (1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

 


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Exchange Rates Local Currency Units per MxP

 

                                   
               
                   2Q21              2Q20              Var.%          Jan-Jun 21          Jan-Jun 20              Var.%  

Euro

            

End of Period

         0.0426        0.0388        9.9%        0.0426        0.0388        9.9%  

Average

         0.0414        0.0389        6.5%        0.0411        0.0420        -2.1%  

U.S.

               

End of Period

         0.0505        0.0435        16.0%        0.0505        0.0435        16.0%  

Average

         0.0499        0.0428        16.5%        0.0496        0.0463        7.0%  

Brazilean Real

            

End of Period

         0.2526        0.2384        6.0%        0.2526        0.2384        6.0%  

Average

         0.2645        0.2302        14.9%        0.2669        0.2275        17.3%  

Argentinean Peso

            

End of Period

         4.8337        3.0673        57.6%        4.8337        3.0673        57.6%  

Average

         4.6912        2.8962        62.0%        4.5250        2.9908        51.3%  

Chilean Peso

            

End of Period

         36.7505        35.7500        2.8%        36.7505        35.7500        2.8%  

Average

         35.7278        35.2478        1.4%        35.6841        37.6392        -5.2%  

Colombian Peso

            

End of Period

         189.7049        163.6336        15.9%        189.7049        163.6336        15.9%  

Average

         184.1971        164.7386        11.8%        179.5143        170.8649        5.1%  

Guatemalan Quetzal

            

End of Period

         0.3911        0.3352        16.7%        0.3911        0.3352          16.7%  

Average

         0.3853        0.3297        16.9%        0.3835        0.3560        7.7%  

Peruvian Sol

            

End of Period

         0.1952        0.1541        26.6%        0.1952        0.1541        26.6%  

Average

         0.1895        0.1469        29.0%        0.1849        0.1582        16.8%  

Dominican Republic Peso

                     

End of Period

         2.8890        2.5484        13.4%        2.8890        2.5484        13.4%  

Average

         2.8519        2.4555        16.1%        2.8536        2.5763        10.8%  
 


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Exchange Rates Local Currency Units per USD

 

           
               
                    2Q21              2Q20              Var.%          Jan-Jun 21          Jan-Jun 20              Var.%  

Euro

             

End of Period

          0.8433        0.8902        -5.3%        0.8433        0.8902        -5.3%  

Average

          0.8301        0.9082        -8.6%        0.8298        0.9075        -8.6%  

Mexican Peso

             

End of Period

          19.8027        22.9715        -13.8%        19.8027        22.9715        -13.8%  

Average

          20.0438        23.3567        -14.2%        20.1751        21.5954        -6.6%  

Brazilean Real

             

End of Period

          5.0022        5.4760        -8.7%        5.0022        5.4760        -8.7%  

Average

          5.3008        5.3759        -1.4%        5.3842        4.9135        9.6%  

Argentinean Peso

             

End of Period

          95.7200        70.4600        35.9%        95.7200        70.4600        35.9%  

Average

          94.0292        67.6456        39.0%        91.2931        64.5869        41.3%  

Chilean Peso

             

End of Period

          727.7600        821.2300        -11.4%        727.7600        821.2300        -11.4%  

Average

          716.1197        823.2708        -13.0%        719.9293        812.8329        -11.4%  

Colombian Peso

             

End of Period

          3,756.6700        3,758.9100        -0.1%        3,756.6700        3,758.9100        -0.1%  

Average

          3,692.0052        3,847.7428        -4.0%        3,621.7134        3,689.8891        -1.8%  

Guatemalan Quetzal

             

End of Period

          7.7440        7.7003        0.6%        7.7440        7.7003        0.6%  

Average

          7.7233        7.7011        0.3%        7.7376        7.6890        0.6%  

Peruvian Sol

             

End of Period

          3.8660        3.5410        9.2%        3.8660        3.5410        9.2%  

Average

          3.7980        3.4314        10.7%        3.7298        3.4174        9.1%  

Dominican Republic Peso

             

End of Period

          57.2100        58.5400        -2.3%        57.2100        58.5400        -2.3%  

Average

          57.1628        57.3524        -0.3%        57.5708        55.6356        3.5%  
 


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Glossary of Terms

 

ARPU  

Average Revenue per User. The ratio of service revenues in a given period to the average number of wireless subscribers in the same period. It is presented on a monthly basis.

 
ARPM  

Average Revenue per Minute. The ratio of service revenues to airtime traffic.

 
Capex  

Capital Expenditure. Accrued capital expenditures related to the expansion of the telecommunications infrastructure.

 
Churn  

Disconnection Rate. The ratio of wireless subscribers disconnected during a given period to the number of wireless subscribers at the beginning of that period.

 
EBIT  

Earnings Before Interest and Taxes, also known as Operating Profit.

 

EBIT

margin

 

The ratio of EBIT to total operating revenue.

 
EBITDA  

Earnings Before Interest, Taxes, Depreciation, and Amortization.

 

EBITDA

margin

 

The ratio of EBITDA to total operating revenue.

 

EPS

(Mexican

pesos)

 

Earnings per share. Total earnings in Mexican pesos divided by total shares.

 

Earnings

per ADR

(US$)

 

Total earnings in U.S. dollars divided by total ADRs equivalent.

 

Gross

additions

 

Total number of subscribers acquired during the period.

 

Licensed

pops

 

 

Licensed population. Population covered by the licenses that each of the companies manage.

 
LTE  

Long-term evolution is a 4th generation standard for wireless communication of high-speed data for mobile phones and data terminals.

 

Market

share

 

 

A company’s subscriber base divided by the total number of subscribers in that country.

 
MBOU  

Megabytes of Use per subscriber. The ratio of wireless data in a given period to the average number of wireless subscribers in that same period. It is presented on a monthly basis.

 
MOU  

Minutes of Use per subscriber. The ratio of wireless traffic in a given period to the average number of wireless subscribers in that same period. It is presented on a monthly basis.

 

Net

subscriber

additions

 

 

The difference in the subscriber base from one period to another. It is the different between gross additions and disconnections.

 
 


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