Fixed-Line Weakness and Tough Competition Dented America Movil's Q1, but Its Position Remains Solid

Weak fixed-line revenue and elevated competition in Colombia dented an otherwise solid first quarter at America Movil. The Mexican wireless business, Movil’s most important, posted strong growth, while the Brazilian wireless business is poised for continued improvement following the closing of the Oi transaction earlier this month. We have increased our fair value estimate to $21, primarily on the closing of Oi, leaving the stock fairly valued.