Telecoms firm Millicom was one of the best performers in the index
But Millicom posted an outstanding 26 percent growth
By David Ramirez
Latin Trade’s Multinational Companies (MNCs) index, which measures the US dollar-revenue of the top 25 MNCs operating in Latin America, fell in the outset of 2015.
The index contracted by 12.8 percent compared with the same quarter in 2014, as total revenues in the firms composing it reached $47 billion, reflecting the region’s waning economic growth and weakening currencies against the US dollar.
Being the largest economy in the region, woes in Brazil kept hampering MNCs dynamics. In particular, falling car sales in the Brazilian market took a toll on foreign car manufacturers, thus leading Fiat (Italy) and Volkswagen (Germany) to become the index’s worst performers–with revenues plunging 38 and 35 percent.
Intense competition and limited organic growth hurt the position of telecoms MNCs. Nokia (Finland), whose global sales also continued to contract, experienced a 25 percent revenue drop in the region during the period– the index’s third-worst performance. The revenues of industry peers NII Holdings (USA) and Telefonica (Spain)– the largest MNC in the region– fell 20 and 12 percent each.
In contrast, a focus on less mature markets and diversification into new services allowed Millicom (Luxembourg) to post an outstanding 26 percent revenue growth. This positioned the firm as the index’s second-best performer.
Largely driven by successful …
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