Latin Finance - March/April 2012 - 14

Man of the Year

“He is a very seasoned CFO,” Ardura says. “He knows how the market dynamics work, as he has held several important positions during the years, and has gone through many crises.”

For the full year 2011, the company reported an Ebitda of about 252.6 billion Mexican pesos ($20 billion) and total revenues of 665.2 billion pesos ($51 billion), a rise of 1.6% and 8.7% over the previous year. Revenues are Long-Term View expected to raise even further once Net is Taking the company on the road in Europe consolidated into the numbers. in 2010, at a time when Greece debt woes This comes on the back of what was were causing another bout of risk aversion, arguably one of the largest funding sprees is just one example of Garcia Moreno’s for a corporate out of the region. Ever foresight as he looked to position the since the company became the first issuer company against global telecom names, to tap the local Chilean bond market in including well-established European 2009, it has raised close to $9 billion in credits like France Telecom, Spain’s the bond markets alone, in at least seven Telefónica and Deutsche Telekom. different currencies. He first tested the waters in the Swiss AMX was also thought to have saved franc market and then finally printed itself a considerable sum in fees after Commanding broad respect debut euro and sterling trades at a time squeezing banks on pricing last year when when many had written this market off as it conducted an unusual auction system to a viable financing option. the last part of the transaction involving mandate for a $4 billion loan. “They were probably the only issuer the purchase of Telmex shares it didn’t The one-day closed door session in conducting roadshows [in Europe] at already own, and a similar operation for New York was heard to have ruffled a few the time,” Ardura says. “He promised Brazilian cable operator Net Serviços, feathers for the unconventional way it investors he would look to build a yield sparked a series of capital market forays, awarded mandates, but for the company curve in the euro and sterling markets, making América Móvil one of the most the results were more than satisfactory. and he delivered coming back to both active corporate borrowers out of the In April, it priced a $2 billion 3.5-year at markets the next year.” region over the past year or so. Libor plus 50 basis points and a $2 billion In his position since 2001 when Garcia Moreno estimates roughly equivalent euro-denominated five-year at América Móvil was first spun off from that the entire Telmex transaction was Euribor plus 60 basis points. Such levels fixed-line telecom Telmex, Garcia Moreno valued at around $25 billion, including a have inspired other companies to try their has been at the helm luck in the bank Snapshot of AMX Income Statement (MXP millions) of a company that market as well. Revenues on the rise is soon expected to In the immediate generate revenues future, the 4Q11 4Q10 Var% Jan-Dec Jan-Dec Var% north of $50 billion 11 10 company’s capital in part thanks to markets activity Total Revenues 181,963 162,020 12.3 665,156 612,044 8.7 its integration with is likely to wane EBITDA 64,549 62,151 3.9 252,604 248,704 1.6 Telmex. somewhat now “We came to EBITDA as % of 35.5 38.4 38.0 40.6 that the Telmex Total Revenues realize that if you truly integration is want to be in data finished. With Net Interest 4,050 3,666 10.5 13,951 12,972 7.5 service, you cannot substantial cash Expense do it unless you have flows, América Móvil Net Income 16,278 25,519 -36.2 82,622 91,355 -9.6 a fixed-line platform has little need to Source: America Movil that supports it,” raise funding in the says Garcia Moreno, external market, explaining the reasoning behind bringing $10 billion cash payment for Telmex and except opportunistically. Last year, for the two companies together. “You are now Telmex Internacional and the $2.5 billion instance, the company funded capex of seeing a convergence in which fixed and purchase of the Net Serviços shares the just under $10 billion entirely with its mobile are becoming the same network. It company didn’t already own. own cash. is a unified network that may be accessed “About $12 billion was spent over the “Going forward, I don’t think we will from fixed or wireless.” 18 months, and it completely changed the be as active in the market, unless there is profile of América Móvil,” Garcia Moreno something involving an acquisition, and Creating Something New adds. “The company is now much larger even then it will have to be something The estimated $4.58 billion price tag for both in terms of revenue and Ebitda.” with scale for that to happen,” he adds. LF

14 LatinFinance

March/April 2012
Latin Finance - March/April 2012

Table of Contents for the Digital Edition of Latin Finance - March/April 2012
