America Movil 3Q Net Profit Falls on Higher Financial Costs

By Anthony Harrup

MEXICO CITY--Mexican telecommunications company América Móvil posted a sharp drop in third-quarter net profit as a result of higher financial costs including exchange losses and an impairment charge.

Latin America's largest telecommunications company by subscribers on Tuesday posted net profit of 2.0 billion Mexican pesos ($113 million) for the July-September period, equivalent to 0.03 pesos a share or $0.04 an American depositary receipt.

Net profit fell from 18.0 billion pesos in the year-earlier quarter. An exchange loss of 12.3 billion pesos and a 4.7 billion peso impairment of the company's stake in the Claro Chile joint venture contributed to higher overall financial costs.

Revenue was down 3.3% at 203.8 billion pesos, with service revenue off 4.3% as a result of Mexican peso appreciation against all other currencies in which América Móvil operates, reducing the peso value of international sales. In constant currency terms, service revenue increased 3.8%.

Earnings before interest, taxes, depreciation and amortization fell 3.6% to 79.9 billion pesos, but were up 5% at constant exchange rates.

América Movil added three million mobile subscribers in the third quarter, ending September with 306.2 million. Subscriptions to fixed-line services were unchanged from the previous quarter at 73.4 million as 223,000 broadband additions were offset by a loss of voice and pay TV subscriptions.

Overall broadband revenue increased 6.4%, its fastest pace in more than two years, the company said. Within the fixed-line segment, corporate network services became the second-largest revenue generator after broadband during the quarter, accounting for 19% of fixed-line service revenue.

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

(END) Dow Jones Newswires

October 17, 2023 19:09 ET (23:09 GMT)

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