America Movil, S.A. de C.V. - Company Strategy & Performance Analysis

America Movil, S.A. de C.V. - Company Strategy & Performance Analysis

Summary

The company enjoys a robust position in several markets such as Mexico, Colombia, Argentina, and Puerto Rico. America Movil’s total number of mobile subscriptions in Mexico increased at a CAGR of 0.9% during 2012-2016, from 70.3 million in 2012 to reach 73.2 million in 2016. In Mexico, declining handset prices and growing technology advancement (the launch of LTE and 4G networks) has accelerated subscriber penetration.

MarketLine's Premium company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading telecommunication companies. The reports detail company operations in key geographies as well as comprehensive analysis of each company’s growth strategy and financial performance. Furthermore the reports allow benchmarking company performance through the provision of key performance indicators including: subscriber volumes, subscriber churn, ARPU, and MoU.

Key Highlights

Wide portfolio of operations enables America Movil to maintain its revenue stream

America Movil comprises a wide portfolio of operations across a large geographic area. The company offers mobile and fixed voice services which include airtime, local, domestic and international long-distance services, and network interconnection services. America Movil also offers data services which include value added, corporate networks, data and internet services. Additionally, America Movil also leverages its network and customer base to offer pay television (pay-TV) services.

Increase in operational expenses affecting profit margins

America Movil reported weak operational performance, which is a major concern. It posted an increase in operational expenses, which led to a decline in its operating margins. Although the company has good cash flow to support its operations, the company is focusing on acquisitions for expansion in other Latin American countries which will require significant capital expenditure.

Increasing investments in technology

The company has been focusing on investing in new technologies to remain competitive in the market. It plans to launch a 4.5G network in Mexico by the end of 2017 and launch 5G by 2020. In March 2016, America Movil planned to invest US$6,000 million in the Mexican telecom market over the next three years. AT&T aims to offer 4G LTE mobile internet service to over 100 million Mexican customers by the end of 2018.

Scope

• Company Snapshot - details key indicators and rankings of America Movil in terms of Subscribers, Revenue, and Market Share in the company’s key markets.
• Company SWOT Analysis - outlines America Movil’s Strengths and Weaknesses, and Opportunities and Threats facing the company.
• Growth Strategies - understand America Movil’s corporate goals and strategic initiatives and evaluate their outcomes.
• Company Performance and Competitive Landscape - analyze the company’s performance by business segment compared to other players across key markets on metrics such as such as Revenues, Customer Churn, MoU, and Subscribers.
• Key Developments - showcase America Movil’s significant recent corporate events, changes, or product initiatives.

Reasons to buy

• How does America Movil rank among telecommunication service providers in Latin America and globally?
• What is the company’s market share in its key markets in the Mexico, Brazil, and Argentina?
• What are America Movil’s main growth strategies and how successful has the company been at implementing them?
• How has the company performed since 2012 in terms of Subscriber and Revenue growth, ARPS, Customer Churn, and MOU?
• How has America Movil performed in comparison to competitors such as Movistar and AT&T?
• What are America Movil’s strengths and weaknesses and what opportunities and threats does it face?