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.