Analyst Note| Michael Hodel, CFA |
America Movil posted solid second-quarter results, particularly in the Mexican wireless business. Total reported service revenue declined 4.6% year over year, reflecting the recovery in the value of the Mexican peso, which took an outsize hit as the pandemic set in. Adjusted for currency impacts, service revenue would have increased 5.3%. In U.S. dollar terms, service revenue increased 11% and has nearly recovered to prepandemic levels. We don’t plan to change our $18 fair value estimate.