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America Movil (AMX) to Launch Mexican TV Channel in US
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Mexican telecom behemoth, America Movil SAB (AMX - Free Report) has decided to launch a Mexican language TV channel in the U.S. named Nuestra Vision. The new TV channel is slated to be launched later this year and will be offered by the America Movil unit Publicidad y Contenido Editorial. The TV channel will broadcast news, movies and sports highlights. Its two major rivals will be Univision Inc., controlled by Mexican media and cable TV giant Grupo Televisa SA (TV - Free Report) and Telemundo, controlled by Comcast Corp. (CMCSA - Free Report) , the largest cable multi service operator (MSO) and media conglomerate in the U.S.
The U.S. Hispanic TV market is highly lucrative and is growing at a remarkable pace. An estimated 35 million people living in the U.S. are Mexican or of Mexican origin. America Movil is the dominant player in this market as the company’s wireline division Telmex and wireless division Telcel controls 66% and 70% of the Mexican market, respectively.
In 2014, the government of Mexico introduced major reforms within its telecommunications sector. The Mexican telecom regulator - Federal Telecommunications Institute (IFT) had identified America Movil as the dominant player in this market. Per the IFT’s reformed norms, the maximum hold of a company in the market has been restricted to 50%.
Meanwhile, the Mexican telecom market has become intensely competitive. Beside incumbent firm Telefonica SA (TEF - Free Report) , U.S. telecom behemoth AT&T Inc. (T - Free Report) has entered into the fray. We believe this is the primary reason for America Movil to launch a business arm in the U.S. The company is already operating its prepaid wireless service in the U.S. under the TracFone banner.
Price Performance of America Movil
Shares of America Movil are one of the weaker performers in 2016. In the last one year, the stock price of the company gained a mere 0.49%, underperforming the Zacks categorised Non-US wireless industry which witnessed an increase of 3.21% in the same time frame.
Nevertheless, America Movil’s prepaid mobile business is the U.S. is performing well. Moreover, the company has entered into an agreement with Telefonica to offer nationwide mobile roaming service to the latter. Further, Mexico’s telecom sector has witnessed strong growth in 2016. Continuation of this momentum will help America Movil to expand its top-line growth. We believe these positive factors are primary reasons behind the stock to carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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America Movil (AMX) to Launch Mexican TV Channel in US
Mexican telecom behemoth, America Movil SAB (AMX - Free Report) has decided to launch a Mexican language TV channel in the U.S. named Nuestra Vision. The new TV channel is slated to be launched later this year and will be offered by the America Movil unit Publicidad y Contenido Editorial. The TV channel will broadcast news, movies and sports highlights. Its two major rivals will be Univision Inc., controlled by Mexican media and cable TV giant Grupo Televisa SA (TV - Free Report) and Telemundo, controlled by Comcast Corp. (CMCSA - Free Report) , the largest cable multi service operator (MSO) and media conglomerate in the U.S.
The U.S. Hispanic TV market is highly lucrative and is growing at a remarkable pace. An estimated 35 million people living in the U.S. are Mexican or of Mexican origin. America Movil is the dominant player in this market as the company’s wireline division Telmex and wireless division Telcel controls 66% and 70% of the Mexican market, respectively.
In 2014, the government of Mexico introduced major reforms within its telecommunications sector. The Mexican telecom regulator - Federal Telecommunications Institute (IFT) had identified America Movil as the dominant player in this market. Per the IFT’s reformed norms, the maximum hold of a company in the market has been restricted to 50%.
Meanwhile, the Mexican telecom market has become intensely competitive. Beside incumbent firm Telefonica SA (TEF - Free Report) , U.S. telecom behemoth AT&T Inc. (T - Free Report) has entered into the fray. We believe this is the primary reason for America Movil to launch a business arm in the U.S. The company is already operating its prepaid wireless service in the U.S. under the TracFone banner.
Price Performance of America Movil
Shares of America Movil are one of the weaker performers in 2016. In the last one year, the stock price of the company gained a mere 0.49%, underperforming the Zacks categorised Non-US wireless industry which witnessed an increase of 3.21% in the same time frame.
Nevertheless, America Movil’s prepaid mobile business is the U.S. is performing well. Moreover, the company has entered into an agreement with Telefonica to offer nationwide mobile roaming service to the latter. Further, Mexico’s telecom sector has witnessed strong growth in 2016. Continuation of this momentum will help America Movil to expand its top-line growth. We believe these positive factors are primary reasons behind the stock to carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>