Iusacell Revenues Rise
"We have had enormous accomplishments in the Company during the quarter, including historical maximums in revenues and EBITDA. We not only reached agreements with the majority of our creditors, but during the quarter we celebrated the convenio concursal of Grupo Iusacell that materialized the agreements reached with the majority or our creditors," commented Gustavo Guzman, CEO of Grupo Iusacell.
The Company reflected in its financial statements for the quarter the following accounting and financial effects derived from the convenio concursal:
I. The cancellation of the debt originated by its US$ 350 million notes due in 2006 (the "2006 Notes").
II. The issuance of new notes in the principal amount of US$ 175 million with a maturity date of 2013 (the "New Notes").
III. The cancellathttp://staging.lightreading.com/admin/document.asp?doc_id=109095&page_number=1&new_pool=ion of all the past due interest for the 2006 Notes in the amount of approximately US$ 183 million.
These cancellations affected a change on the Stockholders' Equity of the Company, which increased from a negative Ps. $2,081 million in September 30, 2005 to Ps. 704 million in this quarter, as well as a decrease in the liabilities of the Company of Ps $3,935 million.
Results for Third Quarter 2006
Net revenues in the third quarter of 2006 increased by 20% to Ps. $1,913 million, as compared to Ps $1,589 million during the same period 2005. This increase is primarily as a result of growth in postpaid revenues as well as higher revenues from value added services and an increase in the subscriber base.
Iusacell ended the third quarter 2006 with approximately 2.0 million subscribers, an increase of 19% as compared to the third quarter 2005.
Cost and Expenses
The total cost during the quarter increased by 23% to Ps. $1,125 million, as compared to Ps $915 million in the third quarter 2005. Operating expenses decreased by 5% to Ps. $455 million, as compared to Ps $481 million in the same period 2005.
The increase in the total cost mainly reflects the increase in (i) handset subsidy, (ii) cost related to value added services, and (iii) technical expenses.
The decrease in the operating expenses during the quarter reflects the result of the efforts and strategy for the control of expenses of the Company.
Operating income before depreciation and amortization
Iusacell's operating income before depreciation and amortization for the third quarter of 2006 was Ps. $332 million, an increase of 72%, as compared to Ps. $193 million during the same period the year before.
Iusacell had a net income of Ps $4,199 million during the third quarter of 2006, as compared to a net loss of Ps $449 million registered in the same period of 2005. The net income is mainly impelled by the gain registered as a result of the decrease of the debt and cancellation of past due interest of the 2006 Notes.
Grupo Iusacell S.A. de C.V.