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America Movil SAB de CV ADR AMX

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Morningstar’s Analysis

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America Movil Q4 as Expected as Management Announces Tower Spin-Off; Shares Remain Attractive

Analyst Note

| Michael Hodel, CFA |

America Movil’s fourth-quarter earnings were broadly in line with our expectations on strong customer additions and modestly disappointing revenue per customer. Total reported revenue declined 3.1% year over year to MXN 255 billion, primarily as a result of weak equipment sales, including new phones. Service revenue increased 2.2% on a constant-currency basis. When translated into U.S. dollars at average exchange rates, service revenue declined 7.6% year over year to $10.0 billion, only a modest improvement versus the prior quarter despite the strengthening Mexican peso.

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Company Profile

Business Description

America Movil is the largest telecom carrier in Latin America, serving about 280 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 operates a low-margin wireless resale business in the U.S. under the Tracfone and Straight Talk brands, accounting for 15% of revenue. The firm holds a 51% stake Telekom Austria and a 16% 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 Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type
Employees 191,523

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