reports
- Soomit Datta
AMX (Buy, TP: $24, +25%) Why a seemingly (quite) healthy Telco just f...
WOM Chile filed for Chapter 11 last month (April 1), followed a couple of weeks later by a local filing for WOM Colombia. Two filings in one month. Colombia’s relatively modest financing difficulties were likely sealed by the Chilean filing and we review events in Chile to work out how a seemingly successful scaled wireless operator (close to 25% market share of service revenue, 37% EBITDA margins) ended up here.
- Soomit Datta
AMX(Buy, TP: $24, +24%) Televisa (Neutral, $3.5, +11%) Megacable (Neut...
The market continued to eek out broadband growth in Q1, with Megacable leading the charge. We applaud management’s execution here and the double digit revenue and EBITDA growth, though this now seems embedded in expectations; we think it’s time to close out Megacable stock gains (30% YTD), trading on a 5.5% EFCF yield for 2025. Our target remains MXN55, though we have taken out the probability of cable-cable deal synergies, offset by upgrades following Q1s.
Moody's downgrades Televisa's ratings to Baa3; stable outlook
Moody's Ratings ("Moody's") has today downgraded Grupo Televisa, S.A.B.'s ("Televisa") long term issuer rating and its senior unsecured ratings to Baa3 from Baa2. Moody's also downgraded Televisa's senior unsecured shelf to (P)Baa3 from (P)Baa2. The outlook remains stable. RATINGS RATIONALE The rati...
Moody's downgrades Televisa's ratings to Baa3; stable outlook
Moody's Ratings ("Moody's") has today downgraded Grupo Televisa, S.A.B.'s ("Televisa") long term issuer rating and its senior unsecured ratings to Baa3 from Baa2. Moody's also downgraded Televisa's senior unsecured shelf to (P)Baa3 from (P)Baa2. The outlook remains stable. RATINGS RATIONALE The ...
Moody's assigns Baa1 rating to America Movil's proposed notes; stable ...
Moody's Ratings (Moody's) has today assigned a Baa1 rating to America Movil, S.A.B. de C.V.'s ("America Movil") proposed up to MXN20,000 million ($1.1 billion) in senior unsecured global notes due 2029. America Movil's existing ratings remain unchanged. The outlook remains stable. Proceeds will be u...
- Soomit Datta
AMX (Buy, TP: $24, +40%) AMX - Solid underlying Q4s, messy Argentina ...
AMX reported solid underlying Q4s last night, coming in 1.5% ahead of expectations for revenue and in-line at EBITDA adjusting for Argentina (which booked a large negative contribution to both given 9m 23 hyperinflation adjustments). Trends are in the main unchanged: Mexican wireless OK but lacking the support from price rises – this may come after the Presidential elections and is arguably needed as a catalyst for better earnings momentum; elsewhere, a return to solid adds in Mexican broadband;...
- Soomit Datta
LatAm Telcos – 2024 Outlook: Top picks Brazil (TIM and Vivo) and Megac...
After strong stock performance in 2023 we think the Brazilians will continue to perform into 2024 on the back of solid wireless fundamentals: rising prices, revenue/EBITDA > inflation, falling capex/sales – and with IOC (tax) risks in the rear view for now. Shareholder returns are also sector leading whilst valuations are attractive (notably versus quickly falling rates).
Moody's assigns Baa1 rating to America Movil's proposed notes; stable ...
Moody's Investors Service (Moody's) has today assigned a Baa1 rating to America Movil, S.A.B. de C.V.'s ("America Movil") proposed up to MXN20,000 million ($1.1 billion) in Senior Unsecured Global Notes due 2034. America Movil's existing ratings remain unchanged. The outlook remains stable. Proceeds...
- Soomit Datta
AMX (Buy, TP: $27, +23%) America Movil Q2 23 - Small revenue/EBITDA m...
AMX reported Q2s after close last night. Both revenue and EBITDA slightly missed consensus and our forecasts, but net income beat expectations thanks to FX gains. Ultimately trends are robust, still supported by 1 month of Oi (on a y/y basis), though if there's an area of disappointment for our positive stance it's the still low level of buy back.
Moody's assigns Baa1 rating to America Movil's proposed sustainability...
Moody's Investors Service ("Moody's") today assigned a Baa1 rating to America Movil, S.A.B. de C.V.'s ("America Movil") proposed up to MXN20,000 million ($1.1 billion) in senior unsecured notes due 2031. America Movil's existing ratings remain unchanged. The outlook is stable. The proposed issuan...
- Soomit Datta
TIMP3 (Buy, TP: BRL21, +42%) VIVT3 (Buy, TP: BRL59, +34%) Brazilian T...
Despite a good run for the Brazilian telco equities of late we think there is much more to come over the next 12 months. Following some early testing of the water by the industry we now incorporate pre-paid wireless price increases into estimates noting how low spend as % income in Brazil should help prices stick (and reminds us of India); TIM is most geared into this segment and leads us to upgrade the stock to Buy, while we remain positive on Vivo and AMX (Brazil being 20% of EBITDA).
- Soomit Datta
AMX US (Buy, TP: $27, +23%) LILA US (Buy, TP: $14 (from $15), +85%) A...
VTR in Chile has disclosed the contribution of a convertible shareholder loan of $600m for AMX and LILA’s Chilean JV (ClaroVTR). It’s not clear that LILA has contributed its pro rata share (we’ll know at the Q2s) and the release suggests that conversion of the loans might not be in proportion to current equity levels (50/50) paving the way we think for AMX to take control of the JV over time.
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