America Movil 1Q Net Profit Edges Down on Lower Exchange Gains

By Anthony Harrup

MEXICO CITY - Mexican telecommunications company América Móvil SAB said its net profit slipped in the first quarter on smaller exchange gains, while revenue and operating profit rose from a year earlier.

Latin America's largest telecommunications company by subscribers reported profit of 30.1 billion Mexican pesos ($1.7 billion) for the January-March period, equivalent to MXN0.48 a share or $0.51 an American depositary receipt.

Net profit was down 2.1% from the year-earlier quarter, which the company attributed to lower exchange gains than in the first quarter of 2022.

Revenue increased 1.7% to 208.9 billion pesos. Service revenue was down 2.2% as a result of the Mexican peso's appreciation against currencies in most other markets where América Móvil operates, but rose 6.3% in local currency terms.

Earnings before interest, taxes, depreciation and amortization, a measure of profitability, rose 3.2% to 82.7 billion pesos, boosted by income from the sale of communications towers in Peru and the Dominican Republic. Operating profit rose 9.7% to 44.1 billion pesos.

America Movil added 1.1 million mobile subscribers in the quarter, with around 1.9 million postpaid additions and 754,000 disconnections of prepaid lines. Subscriptions to fixed-line services grew by 130,000 to 73.4 milllion with new broadband customers offsetting a reduction in voice line and TV subscriptions.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

April 25, 2023 18:23 ET (22:23 GMT)

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