Brazil remained one of the jewels of Mobile America (AMX) in the first quarter of 2023, with widespread growth in all business lines, including double-digit increases in its total billing and in attracting new users of mobile services, except in the fixed voice line segment which contracted its income for the period by 1%.
América Móvil, owned by the Mexican businessman Carlos Slim, saw an 11% growth in total revenue from its Brazilian business; also an increase of 23.3% only in cellular services and also saw a growth of 15.4% in its portfolio of mobile users, while its broadband accesses expanded by more than 7% in the first quarter of 2023.
Brazil has not stopped expanding for América Móvil and at the beginning of 2023 it reported a spectacular quarter for its parent company, after adding 1.1 million net mobile users between last January and March, of which 944,000 were contract customers, the segment more lucrative for the phone companies.
More importantly, Brazil reported a total general business of 2,222 million dollars in the first quarter of 2023. The figure indicates that América Móvil would report another record year in terms of billing in that market at the end of this year.
In five years, América Móvil has managed to increase the general income of its Brazilian business by more than one billion dollars.
In 2017, Brazil reported 7,115 million dollars to América Móvil and 8,480 million dollars five years later, in the 2022 financial year.
The data means that the company managed to increase the turnover of its Brazilian business by 1,365 million dollars, 9.18%, and this increase is attributed by AMX to its intensive investments and the convergence opportunities that Brazil offers.
The Brazilian market is still smaller in size in a simple comparison with the Mexican business. Mexico reported a business of 17,107 million dollars in 2022 and it has grown by 8.39% since 2017, or 1,326 million dollars. The business in Brazil is equivalent in income to 49.57% of the data registered by the Mexican unit.
Brazil has also shown notable growth in América Móvil’s Claro cellular clients in the last five years.
The company there has grown its share of mobile users by 26.11 million, between postpaid and prepaid. In 2019, Clear had reported 56.39 million subscribers and by 2022 the figure had risen to 82.5 million mobile customers, an advance of 46.30% and derived, in part, from the acquisition of cellular assets from the competitor Oi and the growth of 4G networks -LTE and 5G from América Móvil in the country.
At the end of the first quarter of 2023, América Móvil reported almost the same number of cellular clients in Brazil as in Mexico, although with different market contexts, between economic and regulatory.
At the end of March 2023, Telcel reported 82.98 million users to parent company América Móvil, while Claro closed the same month with 82.84 million mobile consumers.
Brazil and Mexico present different scenarios for América Móvil in terms of their respective mobile markets. Brazil meant a cellular business of 1,248 million dollars in the first quarter of 2023, while only the cellular business in Mexico registered 3,194 million dollars for the Slim family.
Brazil and Mexico combined a market of 345 million people in 2022 and almost 21 million SMEs in 2021, interesting figures for companies that provide fixed and mobile services, and also for Industry 4.0 in the case of process robotization in both countries.
Companies in the telecommunications sector, including fixed or mobile service providers and through wired or wireless technologies, directed at least 5,098.7 million dollars to the development and maintenance of networks in Brazil and Mexico in the first half of 2022, according to preliminary data. . These are the two largest markets in Latin America by volume of consumers and which also promise the greatest growth and investment recoveries with the maturation of 4G-LTE networks and the advent of 5G technology for mass consumption products and applications. industrial.
The consulting firm Conexis Brasil Digital indicated that based on its own analysis, the group of companies that participate in the Brazilian market would have invested some 17.4 billion reais during the first six months of 2022, a figure that translates as an investment of 3.293 billion reais. dollars in that period.
In the last three years, América Móvil has invested more than 1.6 billion dollars only in the purchase of cellular and fixed assets that were Nextel and I heard of Brazil, in addition to investments in the deployment of its own network, which includes spectrum allocation and infrastructure construction. These investments, according to the company, have had an impact on making a notable participation in Brazil.
“Claro was recognized by the regulator Anatel for offering the best experience in accessibility in the telecommunications sector and in 2022 maintained absolute leadership in the survey of satisfaction and perception of quality of mobile services (…) We have increased our coverage from 5G to 77 cities and according to Anatel we continue to be leaders in 5G,” the company said in a stock market report on its Brazilian activities.
