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Carlos Garcia MorenoHello thank you Daniel and Dan. Good morning everyone again. Thanks to UBS for hosting the call today. The stabilization of financial markets had come about at the beginning of the year and had led to a (inaudible) of the Latin American currencies provided to economic activity in the region; came to an end at the beginning of the second quarter on renewed concerns about the global economic growth and the economic situation of some European countries. In some Latin American countries like Brazil, the economies slowed down more intensifying competitive pressures. In spite of the volatility in financial markets, we managed to post solid gains in the quarter that topped all estimates, bar none, both in the wireless and the wireline platforms adding 5.9 million wireless subscribers including 1.1 million that came with the acquisition of Simple Mobile in the US and 1.7 million RGUs. It is important to note that we can provide triple play services, everywhere, all in Mexico and Argentina, over half of the RGUs net additions obtained through the sale of triple play bundle and nearly one-third through double play packages. The net addition we mentioned before allowed us to finish the quarter with 313 million accesses, including 252 million wireless subscribers, 30 million landline, 16 million broadband accesses and 15 million PayTV clients. The number of purchases accesses increased 7.8% from the earlier quarter; with PayTV clients increasing 30.9% and broadband accesses 15%. Our Brazilian operations added 1.3 million RGUs, accounting for approximately three quarters of the overall RGU additions. At the end of June, we’ve had 26.3 million RGUs in Brazil, 22.7 million in Mexico and 3.9 million in Colombia. On the wireless platform, Mexico led the way net of total additions with 1.4 million, slightly ahead of Brazil. We finished the quarter with 58 million -- 53 in Brazil. In Colombia, we had 29 million subscribers (inaudible) and Argentina 20 million, followed by Peru and Central American and Caribbean with 20 million.
During the quarter, we continued to grow well our corporate base almost everywhere with the exception of Brazil. Postpaid net addition totaled [65,340,000] homes even after 200,000 disconnections in the last quarter.Our consolidated this quarter revenues increased 9.3% in Mexican peso terms. On wireless revenue, they increased 14.1% and fixed line revenues at 1.7%. The comparison of these figures, particularly the latter, with those observed in the first quarter become difficult because of the sub relative movement, the value of various currencies versus the Mexican peso and in particular the 6.1% the devaluation of the Real, versus the peso in the quarter. At constant exchange rate, revenue overall for the period was 6.3% led by mobile data revenues that increased 30.7% and PayTV revenues that were up 23.4%. Fixed line data growth came in 8.0%. Wireless ARPUs rose practically every quarter on the back of mobile data; Brazil was the exception. Wireless Voice revenues reflected the impact of the reduction of mobile termination rates particularly in Brazil. On the fixed-line platform, we continue to see the decline of long distance revenues, partly on account of heavy reductions mandated by the government. In Mexico, Telmex continued to pass on to consumers, as I read at the beginning of the year, the full benefit of the reduction in mobile termination rates enacted last year; but Telcel is rapidly getting back those revenues that it lost on interconnection. EBITDA came in at 56 billion pesos and 3.1% higher than year before. Credit cost generally grows faster than revenues on account of increased energy charges, rapid postpaid subscriber growth and higher accounting costs and the spillover impact on operating expenditures of the major investment effort we are undertaking to expand and modernize our networks. The EBITDA margin declined two points to 34.1%. In addition to we recently mentioned before, we have reiterated in the past, the reductions in the margins also takes the new confirmation for our business lines, with Tracfone now and our PayTV operations which are lower margin businesses becoming increasingly relevant. Read the rest of this transcript for free on seekingalpha.com