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America Movil 4Q Profit Up Sharply on Foreign Exchange Gains

By Anthony Harrup

 

MEXICO CITY -- Mexican telecommunications company America Movil SAB reported an 80% jump in fourth-quarter net profit, helped by foreign exchange gains amid slightly lower revenue.

The company, controlled by billionaire Carlos Slim, made net profit of 37.3 billion Mexican pesos ($1.9 billion) in the October-December period, equivalent to 0.56 pesos a share or $0.54 an American depositary receipt.

Profit was up from 20.8 billion pesos in the year-earlier quarter. A 36.2 billion-peso foreign exchange gain thanks to a stronger Mexican peso against the U.S. dollar and the euro led to an overall financial gain of 15.4 billion pesos.

Revenue fell 3.1% to 255 billion pesos, largely as the result of Mexican peso appreciation against Latin American currencies, especially the Brazilian real. In constant currency terms, service revenues rose 2.2% from the fourth quarter of 2019 as mobile revenues more than offset a slight decline in fixed-line revenue.

America Movil added 6.8 million wireless subscribers in the quarter, ending 2020 with 287.5 million in Latin America, the U.S. and Europe. Subscriptions to fixed-line services were down by 213,000 from the previous quarter at 80.7 million as new broadband connections were offset by a drop in TV and fixed voice line subscriptions.

Earnings before interest, taxes, depreciation and amortization, a measure of operating cash flow, rose 1.3% to 82.9 billion pesos.

 

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

February 09, 2021 17:18 ET (22:18 GMT)

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