Grupo Iusacell Announces Revenue of Ps.2,708 Million in 3Q09
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MEXICO CITY, Oct. 27 /PRNewswire/ -- Grupo Iusacell, S.A.B. de C.V. (BMV: CEL; LATIBEX: XCEL), the first provider of wireless cellular third generation services in Mexico with a national footprint, announced today financial results for the third quarter of 2009.
Third Quarter Results
Net revenue during the quarter was Ps.2,708 million, compared to Ps.2,693 million in the same period in 2008. Cost and expenses during the quarter were Ps.2,260 million, compared to Ps.2,198 million in the same period of the previous year.
As a result, Grupo Iusacell reported EBITDA of Ps.448 million, compared to Ps.495 million in the third quarter of 2008. The company registered a net loss of Ps.707 million, compared to Ps.777 million for the same period of the previous year.
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3Q 2008 3Q 2009 Change
--------------------------------------------------------------
Ps. %
Net Revenue $2,693 $2,708 $15 1%
EBITDA $495 $448 $(47) - 9%
Net Income $(777) $(707) $69 9%
Earnings per Share $(6.20) $(5.64) $0.56 9%
--------------------------------------------------------------
Figures in millions of pesos.
EBITDA: Revenue less costs and operating expenses.
The number of shares outstanding is 125.3 million
Net Revenue
Net revenue for the quarter increased 1% as compared to the previous year. Top line this period came mainly from postpaid rent of cellular services, roaming, prepaid plans, calling party pays revenue, and long distance services.
Subscriber Base
As previously informed, during the fourth quarter of 2008, we reduced our prepaid customer base by approximately half a million users, as part of a regular procedure to reflect only those subscribers that are currently active, meaning that they have recently acquired prepaid air time and still receive calls.
The number of subscribers at the end of the quarter was 3.5 million. Of those, 31% were postpaid subscribers and 69% were prepaid, compared to 28% postpaid users in the year-ago period.
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Sep. 2008 Sep. 2009 Change
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Subscribers (thousands) 4,051 3,565 -12%
Postpaid 1,128 1,105 -2%
Prepaid 2,924 2,459 -16%
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Costs and Expenses
Quarterly costs were Ps.1,635 million, versus Ps.1,607 million in the same 2008 period. The increase was a result of higher rent and maintenance costs of the transmission sites, due to the peso devaluation, as these payments are denominated in dollars.
Operating expenses were Ps.625 million compared with Ps.591 million in the third quarter a year earlier. The increase was the result of higher advertising expenses related to further strengthening the Unefon brand within its target market.
EBITDA and Net Result
EBITDA for the quarter was Ps.448 million, compared to Ps.495 million posted in the year-ago period. EBITDA margin this quarter was 17%.
The principal change below the EBITDA line was a reduction of Ps. 73 million in the integral cost of financing. The company registered a net loss of Ps.707 million during the quarter
Debt
As of September 30, 2009, the debt balance of the company was Ps.12,047 million, compared to the Ps.10,745 million reported a year ago; the increase is mainly due to the rise in the peso amount of the dollar denominated debt, resulting from the exchange rate depreciation.
The company continues its conversations to renegotiate its foreign currency-denominated debt. Grupo Iusacell is confident in the support of all the parties involved to reach necessary agreements.
Capex
Capital expenditures for 3Q09 were Ps.134 million mainly for systems and equipment maintenance of its 3-G network.
Nine Month Results
Income for the first nine months was Ps.8,389 million, compared to Ps.8,108 million during the year ago period. EBITDA was Ps.1,419 million, compared to Ps.1,547 million a year ago. Net loss was Ps.1,100 million, versus a net loss of Ps.1,284 million for the first nine months a year ago.
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9M08 9M09 Change
Ps. %
--------------------------------------------------------------
Net Revenue $8,108 $8,389 $282 3%
EBITDA $1,547 $1,419 $(127) - 8%
Net Income $(1,284) $(1,100) $184 14%
Earnings per Share $(10.25) $(8.78) $1.47 14%
--------------------------------------------------------------
Figures in millions of pesos.
EBITDA: Revenue less costs and operating expenses.
The number of shares outstanding is 125.3 million
About Grupo Iusacell
Grupo Iusacell, S.A.B. de C.V. (Iusacell, BMV: CEL) is a wireless cellular and PCS service provider in Mexico with a national footprint. Iusacell offers more and better voice communication and data services through state-of-the-art technology, such as its new 3G network, throughout all of the regions in which it operates. In addition to its core mobile telephony services, Iusacell also provides a wide range of other telecommunications services, including long distance, wireless local telephony and data transmission services.
Grupo Iusacell, S.A.B. de C.V. quarterly reports and all other written materials may from time to time contain statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, the Company claims the protection of the corresponding laws.
Attached is the Consolidated Financial Statement for Grupo Iusacell, S.A.B. de C.V. for the three-month and six-month period ended September 30, 2009, and the Consolidated Balance Sheet of Grupo Iusacell, S.A.B. de C.V. at September 30, 2009.
GRUPO IUSACELL, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
FIGURES IN MILLIONS OF MEXICAN PESOS
3Q08 3Q09 Change
---- ---- ------
Gross Revenues 2,806 104% 2,828 104% 22 1%
Commissions (113) (4%) (120) (4%) 7 6%
---- -- ---- -- -- --
Net Revenues 2,693 100% 2,708 100% 15 1%
Cost of services 1,040 39% 1,097 41% 57 5%
Handsets subsidy 567 21% 538 20% (30) (5%)
--- -- --- -- --- --
Total Cost 1,607 60% 1,635 60% 28 2%
----- -- ----- -- --- --
Gross Profit 1,085 40% 1,073 40% (12) (1%)
----- -- ----- -- --- --
Selling, General &
Administrative Expenses 591 22% 625 23% 34 6%
--- -- --- -- --- --
EBITDA 495 18% 448 17% (47) (9%)
--- -- --- -- --- --
Depreciation and Amortization (440) (16%) (446) (16%) (7) (2%)
Other income (expenses) (20) (1%) (7) (0%) 13 67%
Comprehensive
Financing Result
Interest Expense - Net (347) (13%) (398) (15%) (51) (15%)
Foreign exchange gain
(loss) (366) (14%) (243) (9%) 123 34%
Other financial expenses (1) (0%) 0 0% 1 106%
-- -- -- -- -- ---
(714) (27%) (641) (24%) 73 10%
---- --- ---- --- -- --
Loss Before Taxes (679) (25%) (646) (24%) 33 5%
Tax Provisions:
Corporate Flat Rate Tax (10) (0%) (12) (0%) (2) (21%)
Deferred Income Tax (88) (3%) (51) (2%) 37 42%
--- -- --- -- -- --
(98) (4%) (63) (2%) 35 36%
--- -- --- -- -- --
Minority Interest 2 0% 1 0% (0) (22%)
Discontinued Operations (2) (0%) - 0% 2 100%
---- --- ---- --- -- ---
Net Loss (777) (29%) (707) (26%) 69 9%
==== === ==== === == ==
GRUPO IUSACELL, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
FIGURES IN MILLIONS OF MEXICAN PESOS
9M08 9M09 Change
---- ---- ------
Gross Revenues 8,456 104% 8,754 104% 298 4%
Commissions (348) (4%) (364) (4%) 16 5%
---- -- ---- -- -- --
Net Revenues 8,108 100% 8,389 100% 282 3%
Cost of services 2,960 37% 3,368 40% 408 14%
Handsets subsidy 1,629 20% 1,665 20% 36 2%
----- -- ----- -- -- --
Total Cost 4,589 57% 5,033 60% 444 10%
----- -- ----- -- ---- --
Gross Profit 3,518 43% 3,356 40% (162) (5%)
----- -- ----- -- ---- --
Selling, General &
Administrative Expenses 1,972 24% 1,937 23% (35) (2%)
----- -- ----- -- ---- --
EBITDA 1,547 19% 1,419 17% (127) (8%)
----- -- ----- -- ---- --
Depreciation and
Amortization (1,425) (18%) (1,353) (16%) 72 5%
Other income (expenses) 2 0% (22) (0%) (25) n.m.
Comprehensive
Financing Result
Interest Expense - Net (1,049) (13%) (1,175) (14%) (126) (12%)
Foreign exchange gain
(loss) (5) (0%) 235 3% 240 n.m.
Other financial expenses (0) (0%) 0 0% 0 n.m.
-- -- -- -- -- ----
(1,054) (13%) (940) (11%) 114 11%
------ --- ---- --- --- --
Loss Before Taxes (929) (11%) (896) (11%) 34 4%
Tax Provisions:
Corporate Flat Rate Tax (61) (1%) (57) (1%) 4 6%
Deferred Income Tax (263) (3%) (152) (2%) 111 42%
---- -- ---- -- --- --
(324) (4%) (209) (2%) 115 35%
---- -- ---- -- --- --
Minority Interest 5 0% 5 0% (0) (1%)
Discontinued Operations (35) (0%) - 0% 35 100%
--- --- -- -- --- ---
Net Loss (1,284) (16%) (1,100) (13%) 184 14%
====== === ====== === === ==
GRUPO IUSACELL, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
FIGURES IN MILLIONS OF MEXICAN PESOS
As of September 30,
-------------------
2008 2009 Change
---- ---- ------
Cash and cash equivalents 384 2% 318 2% (66) (17%)
Customers 920 5% 1,243 8% 324 35%
Other accounts receivable 33 0% 1 0% (33) (98%)
Advanced payments and
other receivables 582 3% 633 4% 51 9%
Unamortized handsets subsidy 873 5% 1,086 7% 212 24%
Inventories 139 1% 213 1% 74 53%
Current assets 2,932 17% 3,494 22% 562 19%
Fixed assets 6,495 38% 5,610 35% (885) (14%)
Goodwill 3,780 22% 3,715 23% (65) (2%)
Other assets 4,086 24% 3,017 19% (1,069) (26%)
------ --- ------ --- ------ --
TOTAL ASSETS 17,292 100% 15,836 100% (1,456) (8%)
------ --- ------ --- ------ --
Short-term debt 2,115 12% 2,817 18% 702 33%
Accrued interests 244 1% 515 3% 271 111%
--- -- --- -- --- ---
Short-term liabilities
with financial cost 2,359 14% 3,332 21% 973 41%
Suppliers 1,289 7% 1,497 9% 209 16%
Unaccrued revenues 36 0% 156 1% 121 338%
Accumulated expenses and
other payables 1,330 8% 1,684 11% 354 27%
----- - ----- -- --- --
Short-term liabilities
without financial cost 2,655 15% 3,338 21% 683 26%
Short-term liabilities 5,014 29% 6,670 42% 1,656 33%
Long-term debt 8,631 50% 9,231 58% 600 7%
Other long-term liabilities - 0% - 0% - n.a.
-- -- -- -- -- ----
Long-term liabilities with
financial cost 8,631 50% 9,231 58% 600 7%
Deferred taxes 556 3% 364 2% (192) (35%)
Labor obligations 26 0% 43 0% 17 66%
-- - -- - -- --
Long-term liabilities
without financial cost 582 3% 407 3% (175) (30%)
Advances from customers 1,176 7% 571 4% (605) (51%)
----- - --- - ---- ---
Deferred credits 1,176 7% 571 4% (605) (51%)
------ -- ------ --- ----- --
TOTAL LIABILITIES 15,402 89% 16,878 107% 1,476 10%
------ -- ------ --- ----- --
----- -- ------ -- ------ ----
STOCKHOLDERS' EQUITY 1,890 11% (1,042) (7%) (2,932) (155%)
----- -- ------ -- ------ ----
------ --- ------ --- ------ --
LIABILITIES + EQUITY 17,292 100% 15,836 100% (1,456) (8%)
------ --- ------ --- ------ --
SOURCE Grupo Iusacell, S.A.B. de C.V.
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