From The Rio Times · Javier Mendoza · · 1m 40s
América Móvil Profit Up 7% to US$1.3 Billion
América Móvil's Q3 profit rises 7% to US$1.32 billion, but falls short of analyst forecasts.
In brief
América Móvil's Q3 profit rises 7% to US$1.32 billion, but falls short of analyst forecasts. América Móvil reported third-quarter net income of US$1.32 billion, up 7.0% from the previous year, but missed analyst expectations for both profit and revenue. Originally reported by The Rio Times.
América Móvil Q3 Results
América Móvil reported third-quarter net income of Ps 24.28 billion (about US$1.32 billion), up 7.0% from the previous year.
Revenue Growth
Revenue rose 7.6% to Ps 250.63 billion (about US$13.62 billion), but fell short of analyst forecasts.
Analyst Forecasts
Analysts surveyed by LSEG had forecast net income of US$1.51 billion on revenue of US$14.05 billion.
Profit Margins
EBITDA rose 8.9% to Ps 102.16 billion (about US$5.55 billion), a margin of 40.8% of revenue.
Debt Reduction
Net debt fell by Ps 34.3 billion (about US$1.86 billion) over the nine months, to Ps 400 billion (about US$21.7 billion).
Prepaid Disconnections
In Mexico, the prepaid mobile base fell 4.4% to 65.53 million lines as about 2.9 million lines were disconnected.
Postpaid Additions
Brazil led with 743,000 postpaid additions, followed by Colombia with 348,000 and Peru with 229,000.
US Investors
US investors who hold AMX saw profit grow and debt fall, but results came in below analyst forecasts.
What It Means
For US investors in AMX, the quarter shows steady profit growth and a falling debt ratio, set against a result below forecasts.
What's Next
The pace of prepaid disconnections in Mexico is a number to watch in the coming quarters.
At a glance
América Móvil reported third-quarter net income of US$1.32 billion, up 7.0% from the previous year, but missed analyst expectations for both profit and revenue.
