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America Movil SAB de CV ADR AMX

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

As Pandemic Impact Recedes, America Movil Posts Solid Q2 Results

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.

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Company Profile

Business Description

America Movil is the largest telecom carrier in Latin America, serving about 270 million wireless customers across the region. It also provides fixed-line phone, Internet access, and television services in most of the countries it serves. Mexico is the firm’s largest market, providing about 30% of revenue. Movil dominates the Mexican wireless market with about 63% customer share and also serves about half of fixed-line Internet access customers in the country. Brazil, its second most important market, provides about 20% of revenue. Movil has agreed to sell its low-margin wireless resale business in the U.S., which operates under the Tracfone and Straight Talk brands, to Verizon. The firm holds a 51% stake in Telekom Austria and a 20% stake in Dutch carrier KPN.

Contact
Lago Zurich 245, Plaza Carso / Edificio Telcel, Colonia Ampliacion Granada
Mexico, DF, 11529, Mexico
T +52 5525813700
Sector Communication Services
Industry Telecom Services
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type —
Employees 186,851

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