SAO PAULO, April 30 (Reuters) - The Brazilian wireless unit of Mexico’s America Movil SAB said it expects to reduce capital spending by 20 percent this year following the completion of several projects.
The division, branded Claro, plans capital spending of about 8 billion reais ($2.7 billion) in 2015, Chief Executive Officer Carlos Zenteno told journalists on Thursday. He said the 10 billion reais Claro spent on capital projects last year was exceptional due to investments delayed from the year before.
“This year will be tough for everybody, but it’s a moment to believe in Brazil,” Zenteno said, adding the spending reduction was not a response to forecasts of a recession in Brazil.
Claro, which is Brazil’s third-largest wireless carrier behind Telefonica Brasil SA and TIM Participações SA , is in the process of merging with America Movil’s other units in the country: cable-TV operator NET Serviços and long-distance phone company Embratel Participações SA.
$1=3.01 Brazilian reais Reporting by Luciana Bruno; Writing by Brad Haynes; Editing by Guillermo Parra-Bernal and Peter Galloway