America Movil 2Q Net Profit Jumps on Strong Mexican Peso

By Anthony Harrup

MEXICO CITY-- Telecommunications heavyweight America Movil nearly doubled its net profit in the second quarter on foreign exchange gains while the stronger Mexican peso contributed to declines in revenue and operating profit.

Latin America's largest telecommunications company by subscribers reported a net profit of 25.9 billion Mexican pesos ($1.5 billion) for the April-June period, up 89% from the year-earlier quarter. The profit was equivalent to 0.41 pesos a share, or $0.46 per American depositary receipt.

Revenue fell 4.6% to 202.5 billion pesos as the Mexican currency strengthened against those of other countries where America Movil operates. The stronger peso contributed to the higher net profit as the company registered 14 billion pesos in exchange gains.

In constant currency terms, service revenue rose 5%, with mobile service revenue was up 6.7% and fixed-line revenue increased 2.3%. Fixed-line revenue gains were led by broadband in Brazil and Austria, and in Mexico by broadband and corporate network services, America Movil said.

The company added 2.2 million mobile subscribers in the quarter, ending June with 303.2 million users. Subscriptions to fixed-line services were little changed at 73.4 million as broadband additions were offset by disconnections of fixed phone lines and TV service.

Earnings before interest, taxes, depreciation and amortization, a measure of profitability, fell 3.8% to 78.7 billion pesos, also affected by the stronger Mexican currency, and operating profit was down 2.8% at 40.3 billion pesos.

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

(END) Dow Jones Newswires

July 11, 2023 19:27 ET (23:27 GMT)

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