Published: Feb. 14, 2023 at 6:51 p.m. ET
By Anthony Harrup
MEXICO CITY–Mexican telecommunications company América Móvil posted lower profits in the fourth quarter, while revenue growth was curbed by the strength of the Mexican peso against most other currencies.
Latin America’s largest wireless company by subscribers, controlled by billionaire Carlos Slim, reported net profit of…
By Anthony Harrup
MEXICO CITY–Mexican telecommunications company América Móvil posted lower profits in the fourth quarter, while revenue growth was curbed by the strength of the Mexican peso against most other currencies.
Latin America’s largest wireless company by subscribers, controlled by billionaire Carlos Slim, reported net profit of 13.7 billion Mexican pesos ($741 million) for the October-December period, or 22 U.S. cents an American depositary receipt.
Profit was down 90% from the year-earlier quarter, when the company’s bottom line was boosted by the sale of U.S. unit TracFone Wireless.
Revenue fell 2.4% to MXN216 billion, affected by the appreciation of the Mexican peso against most other currencies, including the euro and the U.S. dollar. In local currency terms, service revenues rose 6% from the year-earlier quarter, led by increases in Eastern Europe, Brazil and Mexico.
Earnings before interest, taxes, depreciation and amortization, a measure of profitability, fell 4.4% to MXN84.8 billion pesos, and operating profit was down 7.2% at MXN44.7 billion.
América Móvil ended the year with close to 300 million wireless subscribers, little changed from the previous quarter. Additions of 3.3 million in the fourth quarter were offset by the disconnection of 4.1 million subscribers that had been acquired from Brazilian company Oi in May but weren’t generating traffic.
Fixed-line subscriptions were little changed at 73.3 million as new broadband and TV subscriptions were offset by the loss of fixed voice lines.
Write to Anthony Harrup at [email protected]
