América Móvil lifts third-quarter net profit 7% on higher revenue

what happened

Telecom operator América Móvil posted third-quarter net profit of 24.28 billion Mexican pesos ($1.32 billion) for July to September, a 7% rise from 22.7 billion pesos a year earlier, according to Dow Jones Newswires. Earnings per share came to 0.41 pesos.

Revenue climbed 7.6% to 250.63 billion pesos and EBITDA rose 8.9% to 102.16 billion pesos, while operating profit increased 14% to 57.11 billion pesos. The company said a September slide in the peso, which erased its gains from the first two months of the quarter, helped lift reported revenue. Service revenue grew 5.3% in constant currency terms.

Mobile subscribers reached 332.4 million after 3.1 million additions, led by Brazil, offset by the removal of 5 million prepaid lines mainly in Mexico and Colombia. Broadband customers rose by 390,000 to 38.2 million.

why it matters

Currency swings weighed on financing costs, with the company recording a 3.6 billion peso exchange loss compared with a 6.3 billion peso gain a year earlier. For investors in Mexican assets, the result shows how peso weakness affects companies with dollar-linked debt and mixed currency revenue.

market impact

Peso and Mexican telecom sector: a weaker currency lifts peso revenue but raises foreign-exchange costs

tags

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