Mexican telecom giant America Movil swings to profit on foreign exchange gains
"Our integral financing costs decreased significantly thanks to which we were able to log 11 billion pesos in FX gains," America Movil said in a statement.
Net profit for the group, controlled by the family of Mexican billionaire Carlos Slim, hit 22.28 billion pesos ($1.19 billion) in the three months through June, rebounding from a 1.09 billion peso loss in the same quarter a year earlier.
Analysts polled by LSEG had expected a $1.13 billion profit.
Revenues for the firm, which operates across Latin America and Europe, rose 14% to 233.79 billion pesos, or $12.46 billion, also above analysts' $12.00 billion forecast. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 11% to 92.41 billion pesos.
America Movil said its revenue was also inflated by the Mexican peso's depreciation against most currencies from other countries where the group operates.
"The second quarter was characterized by significant uncertainty associated with the tariffs that the U.S. government seeks to impose on merchandise imports," it added, noting the U.S. dollar had as a result weakened against most currencies in its operating region.
America Movil said its mobile services growth was driven by its post-paid segment, which added 2.9 million customers in the three months through June, including 1.4 million from Brazil.
Its pre-paid platform, however, logged 1.1 million net disconnections.
The firm also recorded 462,000 new broadband connections, half of which were in America Movil's home market of Mexico.
($1 = 18.7654 pesos at end-June)
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