América Móvil’s profits and income rebound in the third quarter

América Móvil, a Mexican telecommunications company, tripled its net profit at the end of the third quarter of 2024, compared to the same period in 2023, due to a weaker Mexican peso that boosted its income abroad and lower financing costs.

According to the financial report of businessman Carlos Slim’s station, the net profit totaled 6,427 million pesos during the July-September period, a figure higher than 2,028 million pesos; that is, a growth of 216.91 percent.

The company detailed that the increase in profits was supported by a 14.2 percent increase in its operating profit and a 4.8 percent reduction in the comprehensive financing cost.

Third quarter revenues totaled 223 billion pesos, with service revenues growing 11.3 percent annually in Mexican peso terms, partly reflecting the depreciation of the Mexican peso against the currencies of the region of operations, except the Brazilian real . At constant currency, service revenue grew 5.5 percent, an improvement from 4.7 percent in the previous quarter.

Mobile services revenue had its best performance in more than a year, as did the postpaid segment, posting annual growth rates of 5.2 and 6.3 percent at constant exchange rates, respectively.

On the fixed line platform, service revenue increased 5.9 percent at constant exchange rates. Revenues from corporate networks and broadband grew 10.1 and 7.4 percent, respectively, due to the strength of América Móvil’s networks and commercial efforts.

In its report, América Móvil revealed that it added 1.8 million subscribers in the third quarter, including 1.4 million postpaid. Brazil contributed 291 thousand and Colombia with 159 thousand.

Its prepaid platform registered 468 thousand net additions, mainly from Colombia, Eastern Europe and Argentina, with 251 thousand, 213 thousand and 200 thousand, respectively.

In the fixed line segment, it connected 327 thousand new broadband accesses, with Mexico adding 116 thousand, followed by Brazil with 59 thousand and Argentina with 44 thousand.

In the first nine months of the year, net financing amounted to 19.7 billion pesos, together with operating cash flow, allowing it to cover 86.7 billion pesos in capital expenses.

At the end of September, the company’s net debt, excluding leases, stood at 433 billion pesos, which represented a net debt to Ebitda ratio of 1.34 times.