CommScope optimistic about LatAm sales despite 3Q22 drop
US wireless and broadband network provider CommScope posted lower revenues in Latin America and the Caribbean in 3Q22, but the company is optimistic about its business in the region.
The company pointed out that demand for cabling systems and outdoor wireless solutions should increase with the expansion of 5G, boosting sales going forward.
Commscope reported US$149mn revenues in Latin America and the Caribbean in July-September, down 4.9% year-on-year, according to the its financial report.
The group also saw sales drop in Europe, Middle East and Africa (- 5.4%), and in Asia Pacific (-7.7%).
CommScope is doubling down on expanding local design and manufacturing of its portfolio, as previously reported by BNamericas.
Overall, CommScope’s net sales grew 13.1% year-on-year, to US$2.38bn in the quarter, driven by double-digit expansions in the US and Canada.
Nearly half of its sales come from the Cable Connectivity Solution (CCS) business line, which brought in more than US$1bn in the quarter, up 27.9% from the same period of 2021 driven by growth in network cable and connectivity, it stated.
CCS, along with the business lines of cellular and security solutions (NICS), outdoor wireless networks (OWN) and access networks solutions (ANS), comprise the core of CommScope's business.
“I’m pleased to share that we delivered Core net sales of US$1.99bn and Core adjusted Ebitda of US$353mn for the third quarter of 2022 – our highest performance on record since completing the ARRIS acquisition. As we have continued to reiterate over the last several quarters, we are taking swift action to drive growth in our business and offset inflationary impacts," CEO Charles Treadway said in a statement.
Looking forward, the company believes global supply chain challenges and their adverse impact on its operations will “continue to improve” in the fourth quarter and that certain shortages could continue into 2023.
CommScope also warned that macroeconomic pressures such as rising interest rates, energy prices and fear about an economic slowdown could “impact the timing and amount of capital spending by its customers in 2023 and could negatively impact its results of operations.”
Subscribe to the most trusted business intelligence platform in Latin America. Let us show you our solutions for Suppliers, Contractors, Operators, Government, Legal, Financial and Insurance.
News in: ICT (Mexico)
BNamericas provides sector briefs on private networks, startup investment and fundraising, among others.
Following the US, Brazil and Mexico are mulling rules to allow the use of the 6GHz band for Wi-Fi, rather than for 5G, also in outdoor environments...
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: ICT
Get critical information about thousands of ICT projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: New Data Processing Center (CPD) for the National Electric Coordinator
- Current stage:
2 years ago
Other companies in: ICT (Mexico)
Get critical information about thousands of ICT companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Arneses y Conexiones, S.A. de C.V.  (ARCOSA)
Arneses y Conexiones, SA de CV is the OSCA-ARCOSA manufacturing plant located in Tijuana, in the Mexican state of Baja California. It was established in 1986 and dedicated to th...
- Company: Instituto Federal de Telecomunicaciones  (Instituto Federal de Telecomunicaciones (IFT))
The Federal Telecommunications Institute (IFT) is an independent Mexican public agency created in 2013 to replace the Federal Commission of Telecommunications (Cofetel). Based i...
- Company: Maxcom Telecomunicaciones S.A.B. de C.V.  (Maxcom)
Maxcom Telecomunicaciones is a Mexican integrated telecommunications services operator providing voice and data services to residential and small- and medium-sized business cust...
- Company: Grupo Televisa, S.A.B.  (Televisa)
Grupo Televisa is a Mexican media company and a participant in the international entertainment business. It distributes its programming throughout Latin America, Europe, Asia an...
- Company: TV Azteca S.A.B. de C.V.  (TV Azteca)
Mexican broadcast giant TV Azteca S.A. de C.V., owned by Grupo Salinas, generates over 10,000 hours of content per year operating two national networks, Azteca 13 and Azteca 7 t...
- Company: Neutrona Networks
- Company: Assetel