Claro Chile, the Mexican telecommunications giant's local subsidiary, América Móvil, to businessman Carlos Slim, continued to improve his performance in 2018 but failed to reverse the negative balance and finished 14 years since he began operating in the country with losses, the only a non-profit subsidiary in the region.
The company cut its losses last year to $ 75,351 million compared to $ 89,884 million in 2017 after cutting the negative result to $ 18,229 in the fourth quarter of a negative $ 19,194 million in the same period in 2017 year.
Meanwhile, Ebitda (profit before interest, taxes, depreciation) grew by 23.1% to COP 151.726 million. In 2018, while in the fourth quarter it rose by 9.8% to COP 38.568 million. The Ebitda margin reached 17.4%, which is two percentage points higher than the previous year.
"In a competitive environment, we continue to focus our efforts on controlling costs and generating operational efficiencies," the Mexican company said in its Revenue Report.
The company's total revenue fell 0.9 percent to $ 843,905 million in the year, after declining from 3 percent in the quarter to $ 221,240 million.
"Revenue from mobile services decreased by 4.4% (in the quarter) due to prepaid revenue, which fell against the fourth quarter of last year. Competition in the prepaid segment grew in the second half of 2018 and peaked during the Christmas season., the company added.
However, he specified that "in the segment of subscription services we have introduced some unique features in our plans and managed to maintain stable revenues."
Fixed line revenue grew by 5.3% in the quarter and now accounts for almost 40% of the total. In this respect, América Móvil pointed out that "we saw very robust growth in the corporate segment that offers cloud services and personalized solutions. In the housing sector, we are re-launching the deployment of past homes in 2018, allowing us to increase broadband revenue by 3.1% and pay television revenue by 1.7%.
Claro Chile closed 6.8 million subscribers for mobile services in 2018, 4% less than the previous year, after net interruptions of 165 thousand prepaid subscribers. On the contrary, the basis of the contracts increased by 9.6%. At the same time, fixed-income units amounted to 1.4 million people, up 5.2% more and broadband access grew by 8%.