July 23, 2014
America Movil SAB is planning a spinoff of its wireless towers in Mexico as the company studies how to break apart its wireless and landline phone operations in the country, where tougher regulations are cutting into profits.
A spinoff will better reflect the value of the towers, which can be rented to competitors, Chief Executive Officer Daniel Hajj said today on a conference call. The company continues to work on a breakup plan to present to Mexico’s telecommunications regulator, which can revoke penalties against the carrier if its market share falls below 50 percent.
July 22, 2014
America Movil SAB (AMXL) beat second-quarter estimates for adjusted earnings and sales as growth outside of Mexico shone through the gloom of tougher regulations in its home market, where it lost 2 million subscribers.
Billionaire Carlos Slim’s mobile-phone carrier said profit rose 2.4 percent from a year earlier to 66.6 billion pesos ($5.1 billion), leaving out interest, taxes, depreciation and amortization. That compared with the average estimate of 65.8 billion pesos of nine analysts compiled by Bloomberg.
July 2, 2014
Billionaire Carlos Slim will buy out AT&T Inc. (T)’s stake in America Movil SAB for $5.57 billion, propping up his Latin American mobile-phone company’s stock price as his longtime partner from the U.S. exits the business.
Slim’s holding company, Inmobiliaria Carso, told America Movil’s board it will acquire AT&T’s 8.3 percent stake, which includes 24 percent of the company’s voting shares, according to a filing yesterday. AT&T will receive $4.57 billion at the close of the sale and another $1 billion within 60 days of the closing, the Dallas-based company said in a separate filing.
June 26, 2014
Carlos Slim’s America Movil (AMXL.MX) said on Wednesday it had created a committee to evaluate options in response to an overhaul of Mexico’s telecommunications sector which aims to curb its dominance.
The committee will study “structural, commercial, technological and other options … as well as the opportunities offered by the new Mexican regulatory framework,” the company said in a statement.
April 10, 2014
Carlos Slim, Latin America’s wealthiest businessman, has long enjoyed a dominant position in Mexico’s telecom sector. New rules spearheaded by the administration of Mexican President Enrique Peña Nieto, however, could threaten Slim’s position in the market.
Right now Slim and his company, America Movil, have a behemoth presence in Mexico. According to The Economist, “América Móvil controls 80% of fixed-line and 70% of mobile subscriptions, giving it a massive advantage when it comes to selling internet access. Although his businesses are exceptionally profitable by global standards, the services are slow and expensive, and their uptake low, even by Latin American standards.”
Slim’s net worth is estimated at $71 billion, more than double the annual revenues generated by Mexico’s entire telecom sector. According some estimates Slim’s companies cost Mexico $129 billion over the course of four years, an amount that is equal to 2% of Mexico’s GDP.
March 31, 2014
The Wall Street Journal, 3/28/14
A telecom bill presented this week by President Enrique Peña Nieto to open up the market to more competition hasn’t pleased many in Mexico: longtime dominant players such as Carlos Slim’s phone company labeled some parts of the bill “confiscatory,” while the heads of the main opposition parties say it doesn’t go far enough. Conflicting views show how sensitive and controversial the subject of Mexico’s telephone and TV markets have become.
Hopes for change are high among Mexicans, who have seen Mr. Slim’s América Móvil and giant broadcaster Grupo Televisa almost monopolizing the industries for decades. Stakes are also high for the companies, which could see their profit margins decrease. Mr. Peña Nieto’s government maintains that the proposed telecom bill is what Mexico needs to make it easier for small players and newcomers to gain market share, ultimately improving service and lower tariffs for Mexicans.
December 18, 2013
Latin America’s biggest phone company, America Movil, controlled by billionaire Carlos Slim, said on Tuesday it had connected its Mexican lines to a newly built $1.1 billion submarine cable that stretches from South America to the United States.
The cable, designed for high-speed data transmission, will boost service to America Movil’s customers, particularly in Latin America where demand for internet capacity is rising rapidly, the company said.
The cable, which took 19 months to lay, will connect the United States, Brazil, Colombia, Guatemala, Mexico, Puerto Rico and the Dominican Republic.