Home - - America Movil Reports 3 Million Customer Loss in Q4 2017

America Movil Reports 3 Million Customer Loss in Q4 2017

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America Movil recently reported its Fourth Quarter earnings and it's not looking good for the company.

As shown on the earnings report, the MVNO lost about 3 million customers in the last year. Back in their Q4 earnings report n 2016, the company had a total of 26 million customers. In a span of 12 months, this has been reduced to around 23.1 million; showing a loss of 11.3%. The largest MVNO in the nation attributed this to 685,000 net 4th quarter disconnections from Safelink subscribers and the 74,000 net gains from clients in other brands.

It is important to note that America Movil is a strong brand that has relationships with just about all of the major MVNOs throughout the US. Some of the prepaid brands that it operates in include TracFone, Total Wireless, Straight Talk, Safelink, and many others. This is reason to believe that some momentum earned by America Movil can be tracked back to its wireless partners; particularly in the fourth quarter.

Not to mention, the MVNO has been having a difficult season during the holidays. One reason why the MVNO's EBITDA slowed down was because of an aggressive competition among other prepaid business names. The company's biggest competitors, AT&T and Verizon, could be working hard in converting prepaid customers into postpaid subscribers.

Even though the MVNO had less than impressive results in its US business, it's important o note that they received an increase in the results of average revenues per user. Back in Q4 2016, the number was $23. Today, this number is $24; hence a growth in the number of America Movil smartphone users.

Today's announcement marks America Movil's steepest loss in the last 6 years.

You can read America Movil's full Q4 earnings report here.


Source: FierceWireless

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16 comments:

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  1. People may be getting wise to the poor customer service and no hotspot. Prices from Boost, Cricket, and Metro are competitive to Movil. I hope that Movil goes away in the future. People deserve better.

    ReplyDelete
    Replies
    1. Your right. Boost and MetroPCS are price competitive so value oriented suscribers no longer have to settle straight talk.

      Delete
  2. They dug the hole for them self. They started up with the dealers and now it's payback time

    ReplyDelete
  3. Hotspot is king. No hotspot no tether? No customer. LOL

    ReplyDelete
  4. Wouldn't be surprised to see them loosing a million per quarter in '18.

    They can make up all the "reasons" they want and posts like above can parrot them and tiptoe around it but the MAIN reason for the mass flight is their customer disservice circus. Most don't stay long after experiencing it.

    ReplyDelete
  5. also boost metro and cricket no longer can sell multiple services under 1 roof, Boost metro and cricket now have to be exclusive to one brand. Also of little cell phone shops by me in denver metro have closed recently, Those were the shops pushing the american movil brands ( ultra mobile simple mobile net 10 etc... And I switched from straight talk to boost mobile when they had the promo 5 lines unlimited for $100, How can straiht talk compete with that, And boost gave me 5 free phones... Crazy

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  6. I would love to think the public has grown wise to the dishonesty and incompetance at America Movil brands. Unfortunately, the loss was limited to Safelink customers. Other AM brands had modest growth.

    ReplyDelete
    Replies
    1. Check your math. AM only lost 685K Safelink subscribers.

      Delete
    2. Remember what Trump said........they'll have to trade in their phones for alarm clocks!

      Delete
    3. 685K SL disconnections were 4th quarter only.

      The 3 million were over all 4 quarters, so you have to go back to see where those additional losses came from.

      Q3:365K subscriber loss on "a cleanup of our base and from increased competition in the segment."

      Q2: 636K subscriber loss on increased competition and seasonal effects.

      Q1:TF lost 1.3 million subscribers.... most of it's loss this quarter on customers of it's SafeLink Lifeline brand

      So close to 1,985,000 lost on Safelink alone.

      Since TF does not break down the numbers between Straight Talk, NET10, Tracfone, Simple Mobile, Page Plus, Total Wireless, Telcel America, Walmart Family Mobile, GoSmart>

      Who knows where those additional loses were?

      Delete
  7. America Movil is garbage.

    ReplyDelete
  8. tracfone has been the greatest flipphone service for my 80+ year old parents.

    and for me, that's the ONLY good thing worth saying about America Movil Tracfone.

    ReplyDelete
  9. Trac is crap but they'll survive. They'll keep on cutting prices and increasing data and their crummy cs will continue .

    ReplyDelete
    Replies
    1. True that, + PT Barnum was right, sucker born every minute.

      Delete
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