América Móvil, S.A.B. de C.V. (AMOV) AMX´s Strategy on Potential Acquisitions in Europe Conference Call June 21, 2012 01:30 pm ET Executives Carlos García-Moreno - CFO Analysts Andrew Campbell - Credit Suisse Vera Rossi - Barclays Andre Baggio - JPMorgan Rizwan Ali - Deutsche Bank Mauricio Fernandes - Merrill Lynch Stanley Martinez - Legal & General James Ratzer - New Street Research Presentation Operator
But the fact of the matter is that we are expecting to continue to see good growth in data services and the expectation that this growth will pick-up particularly in mobile requires more investment on the fixed-line side. So we are today basically deploying more fiber optic very much across the board and we are moving towards the segmentation of new technologies. We are very close to launching in Mexico our 4G network. We’ll be doing the same with some countries in the Caribbean too.But having acquired the Comcel first and then the Telcel and the Telmex shares, and the Telmex Internacional shares over the last couple of years and also the same with Net Serviços. Looking at the region, you will not see very many more meaningful M&A opportunities. That’s partly because we have already a very well established footprint in the region. There is not many more places to go to. In South America, we are not in the (inaudible) we currently do not have any plans of going there. And in terms of consolidating assets, well there is not that many more assets that we could buy partly because of regulatory reasons and partly because there is not that many more assets in Latin America. So from the point of view of M&A, not of organic growth, from the point of view of M&A, we were going out of meaningful opportunities here in Latin America. Now for all of you that have been with América Móvil for some time, you know that M&A was actually for América Móvil it allowed us to diversify. We are evaluating today and the risk. They have allowed us to have more stable catalog. It also gave us scale which is strictly important in this business and in time, the scale and the diversification led to better credit ratings and that meant, that we actually pickup the markets and better funding conditions, which is we could end up becoming positively. So M&A resulted in diversification scale and better credit ratings and that in turn is allowing us to continue with more M&A.
If you look at what has happened over the last 10 years or so, you will see that the value creation was quite significant for América Móvil, led its original basis which was Mexico to innovate, to move to other countries particularly in South America. So today one could not consider América Móvil having we not entered markets like Brazil, like Colombia, like Argentina as we’re doing (inaudible) in this process M&A was a key ingredient of the value creation that we've developed over the years.Now since we did not have that many more opportunities here in Latin America in terms of M&A, we really are running out of many meaningful opportunities. We started to look at other options, one option certainly was the US, that one that came up repeatedly in the last year, the last couple of years, but as you know we have in the US the MVNO that has been our model that has worked very, very well for us and for a number of reasons we have decided against owning a network, becoming a network operator in the US. So we really started looking at other options and quite frankly we are not a rush to do anything and we basically took our time, but I would say that as of late, the evaluations in Europe start to make more sensible. Clearly, we will have a number of challenges the way that we have say, in the short term, but we think that with long-term perspective evaluations for Europe today appear to be at front peak probably and more so than in other regions of the world. Read the rest of this transcript for free on seekingalpha.com