America Movil Q3 net profit dips 16.4%, falling short of expectations

19 Oct 2021

America Movil Q3 net profit dips 16.4%, falling short of expectations

. The logo of America Movil is pictured on the wall of a reception area in the company's corporate offices in Mexico City, Mexico, May 18, 2017. /Edgard Garrido/File PhotoBy Cassandra Garrison MEXICO CITY -Mexican telecommunications giant America Movil (NYSE:AMX) on Tuesday reported a 16.4% dip in third-quarter net profit compared with the same period a year earlier, falling short of some analyst expectations. The company, which is controlled by the family of Mexican billionaire Carlos Slim, posted net profit of 15.8 billion pesos ($766 million), compared with 18.9 billion pesos a year earlier, below the estimates of Itau BBA for 21.3 billion pesos and Barclays (LON:BARC) for 23.48 billion pesos. Local bank Banorte, however, predicted a steeper drop to 12.03 billion pesos due to losses from a 3.5% depreciation of the peso currency during the quarter, versus an appreciation of 3.8% in the year-earlier period. America Movil's revenue dipped to 253.4 billion pesos, from 260.2 billion pesos during the year-ago quarter. That still beat the Refinitiv forecast of 244.32 billion pesos. EBITDA was 87.6 billion pesos, an increase of 1.3% in nominal terms from a year ago. "The EBITDA margin increased 1.3 percentage points to 34.6% and was our highest EBITDA margin in nine years," the company said in its filing with the Mexican stock exchange. America Movil said it added 4.2 million wireless subscribers in the quarter, including 2.2 million postpaid customers. The company also reported 252,000 new broadband additions. Shareholders last month overwhelmingly approved the company's plan to spin off its towers business in Latin America -telecom/america-movil-says-shareholders-approve-plan-towers-spin-off-2021-09-29/#:~:text=MEXICO%20CITY%2C%20Sept%2029%20(,telecoms%20company%20said%20on%20Wednesday. The spinoff will create a new company called Sitio Latinoamerica, which will own 36,000 telecommunications towers across the region, the company said. America Movil and Liberty Latin America announced in September they would combine Chilean operations to form a joint venture -americamovil-liberty-idCNL1N2QV1FE in a move aimed at expanding fixed fiber operations and speeding up the launch of 5G services. The two companies also reached a deal in which America Movil would sell 100% of its Claro Panama unit to Cable & Wireless Panama, a unit of Liberty Latin America. Both deals excluded America Movil's telecoms towers in Chile and Panama. ($1= 20.642 pesos at end-September)

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