Company Reports

America Movil delivered solid revenue growth across most markets during the first quarter, including Mexico and Brazil, the firm’s most important operations. Reported service revenue increased for the first time since mid-2022, increasing 1.1% versus the prior year. Absent currency movements, service revenue would have increased by 5%, accelerating from less than 4% during the second half of 2023. Cash generation remains disappointing, however. Our fair value estimate remains $21 per ADR.

The rapidly devaluing Argentine peso produced messy fourth-quarter results at America Movil, but this business accounts for less than 5% of the firm’s total revenue, making it a headache but not a major contributor to our fair value estimate. Results in Mexico and Brazil were solid, and we aren’t changing our $21 fair value estimate per ADR.

America Movil’s dominant position in the Mexican wireless market provides a stable source of cash flow, while its Brazilian business offers upside potential amid a more rational competitive environment. In addition, the firm should benefit from rising demand for internet access and other data services across Latin America. That exposure comes with significant political, regulatory, and economic uncertainty, but we expect Movil’s strong competitive position in most of the markets it serves and its strong balance sheet will create value for shareholders.

Slowing revenue growth, especially in Mexico, stood out in America Movil’s third-quarter results, but we don’t believe investors have reason for concern. Our fair value estimate remains $21 per ADR, and the shares look attractive after selling off on the earnings release. Total service revenue declined 4.3% year over year but would have increased 3.8%, excluding the impact of the strong Mexican peso. On the same basis, service revenue increased about 6% and 5% during the first and second quarters, respectively.

America Movil’s dominant position in the Mexican wireless market provides a stable source of cash flow while its Brazilian business offers upside potential as consolidation produces a more rational competitive environment. In addition, the firm should benefit from rising demand for internet access and other data services across Latin America. That exposure comes with significant political, regulatory, and economic uncertainty, but we expect Movil’s strong competitive position in most of the markets it serves and its strong balance sheet will create value for shareholders.

America Movil’s dominant position in the Mexican wireless market provides a stable source of cash flow while its Brazilian business offers upside potential as consolidation produces a more rational competitive environment. In addition, the firm should benefit from rising demand for internet access and other data services across Latin America. That exposure comes with significant political, regulatory, and economic uncertainty, but we expect Movil’s strong competitive position in most of the markets it serves and its strong balance sheet will create value for shareholders.

We are maintaining our America Movil fair value estimate at $21 per ADR despite the ongoing appreciation in the Mexican peso versus the U.S. dollar. With inflation in Mexico falling, wireless price increases are moderating faster than we’d forecast coming into the year. Mexico also accounts for less than half of Movil’s total revenue and other Latin American currencies aren’t as strong as the Mexican peso. In addition, the firm’s Colombian business continued to struggle during the second quarter. We believe the shares are fairly valued.

As the largest telecom carrier in Latin American, America Movil provides broad exposure to rising demand for access to the internet and other data services across the region. That exposure comes with significant political, regulatory, and economic uncertainty, but we expect Movil’s strong competitive position in most of the markets it serves and its strong balance sheet will create value for shareholders over the long term.

The Mexican peso’s strength continues to weigh on America Movil. Total service revenue for the first quarter declined 2.2% year over year but would have increased about 6% excluding currency movements. The Mexican business (nearly 40% of consolidated revenue) produced solid results while Colombia remains challenging. We are maintaining our fair value estimate at $21 per ADR and view the shares as fairly valued.

As the largest telecom carrier in Latin American, America Movil provides broad exposure to rising demand for access to the internet and other data services across the region. That exposure comes with significant political, regulatory, and economic uncertainty, but we expect Movil’s strong competitive position in most of the markets it serves and its strong balance sheet will create value for shareholders over the long term.

The Mexican wireless business was a key bright spot for America Movil in an otherwise underwhelming fourth quarter. Total service revenue declined 1.4% year over year largely thanks to the strong Mexican peso versus the Colombian peso and the euro. Adjusted for currency movements, revenue would have increased about 6%. We are maintaining our fair value estimate at $21 per ADR and view the shares as fairly valued.

As the largest telecom carrier in Latin American, America Movil provides broad exposure to rising demand for access to the internet and other data services across the region. That exposure comes with significant political, regulatory, and economic uncertainty, but we expect Movil’s strong competitive position in most of the markets it serves and its strong balance sheet will create value for shareholders over the long term.

Groupo Televisa confirmed that it has held talks to merge its cable assets with Megacable recently and that it submitted a nonbinding proposal last month. While Megacable’s board has rejected that proposal, Televisa asserted that it will continue pursuing a combination. The shares of both firms were up sharply on the news, a logical response in our view given the potential strategic benefits that a merger could produce. A transaction could have modest negative implications for America Movil. We are leaving our fair value estimates unchanged for now at $14 per share for Televisa and $21 for America Movil; Televisa shares look attractive.

America Movil continues to post solid results, with nice growth in both Mexico and Brazil. We are moving our fair value estimate back to $21 per ADR. Our estimate had mechanically adjusted lower following completion of the Sitios Latinamerica spinoff. The continued strength of the Mexican peso, Movil’s strong performance, and the transfer of debt to Sitios largely offsets the value of the tower firm. We continue to like Movil, but the shares are trading much closer to our fair value estimate than many other telecom stocks in the U.S. and Latin America.

As the largest telecom carrier in Latin American, America Movil provides broad exposure to rising demand for access to the internet and other data services across the region. That exposure comes with significant political, regulatory, and economic uncertainty, but we expect Movil’s strong competitive position in most of the markets it serves and its strong balance sheet will create value for shareholders over the long term.

As the largest telecom carrier in Latin American, America Movil provides broad exposure to rising demand for access to the internet and other data services across the region. That exposure comes with significant political, regulatory, and economic uncertainty, but we expect Movil’s strong competitive position in most of the markets it serves and its strong balance sheet will create value for shareholders over the long term.

America Movil reported solid second-quarter results overall amid increasingly challenging economic conditions. The Brazilian wireless business was particularly strong, a welcome sign with the Oi asset acquisition closing recently. Our fair value estimate remains $21, and we believe the stock is roughly fairly valued.

As the largest telecom carrier in Latin American, America Movil provides broad exposure to rising demand for access to the internet and other data services across the region. That exposure comes with significant political, regulatory, and economic uncertainty, but we expect Movil’s strong competitive position in most of the markets it serves and its strong balance sheet will create value for shareholders over the long term.

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.

As the largest telecom carrier in Latin American, America Movil provides broad exposure to rising demand for access to the internet and other data services across the region. That exposure comes with significant political, regulatory, and economic uncertainty, but we expect Movil’s strong competitive position in most of the markets it serves and its strong balance sheet will create value for shareholders over the long term.