Mexico’s America Movil Q1 profit surges on foreign exchange gains

The emblem of America Movil is pictured on the wall at a reception space within the firm’s company workplaces, in Mexico Metropolis, Mexico January 25, 2022. REUTERS/Gustavo Graf

MEXICO CITY, April 26 (Reuters) – Mexican telecommunications big America Movil (AMXL.MX) on Tuesday reported a surge in its first-quarter web revenue on the again of robust working earnings and international alternate features, whereas revenues edged larger.

Web revenue jumped to 30.8 billion pesos ($1.55 billion), from 1.8 billion pesos within the year-earlier interval, based on a submitting with the Mexican inventory alternate.

America Movil mentioned the acquire was a results of “robust efficiency of working earnings and complete financing earnings of seven.3 billion pesos pushed by international alternate features of twenty-two.6 billion pesos.”

Some Latin American currencies such because the Brazilian actual posted huge features in opposition to the U.S. greenback within the quarter, boosted by larger rates of interest in addition to hovering commodities costs.

However the firm’s income rose simply 2.4% from a yr earlier to 211.2 billion pesos.

Earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) got here in at 81.1 billion pesos, a rise of about 4.2% at fixed alternate charges from a yr earlier, beneath a Refinitiv estimate of 83.673 billion pesos.

America Movil mentioned it added 3.2 million cell subscribers within the quarter, together with 1.9 million postpaid prospects, of which greater than half are from Brazil. The pay as you go buyer phase noticed 1.3 million new subscribers.

“Cellular service revenues expanded 6.3% year-on-year, very a lot the identical tempo as within the previous quarter and considerably larger than that seen a yr earlier than, 1.2%,” the corporate mentioned in a press release.

($1 = 19.8911 pesos at end-March)

Reporting by Cassandra Garrison, Kylie Madry and Noe Torres; Modifying by Richard Pullin and Christopher Cushing

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