America Movil reports drop in profits due to depreciation of the peso

“Our comprehensive financing cost reached 40.2 billion pesos due to foreign exchange losses, mainly due to the depreciation of the Mexican peso, and we ended up recording a net loss in the quarter,” the company explained in its financial report.

However, its revenues showed a better trend. From April to June, the telecommunications giant obtained sales of 206 billion pesos, which meant an increase of 1.5% year-on-year. This was thanks to the addition of 2.4 million mobile subscribers globally, of which 1.8 million were postpaid, with Brazil gaining 907,000, Colombia 183,000 and Mexico 99,000.

Meanwhile, operating cash flow (EBITDA) reached 83,114 million pesos, an increase of 5.6% compared to 78,699 million pesos.

Mexico increases its profits

The Mexican operation played a significant role for América Móvil. The company made profits of 26,594 million pesos, which meant a growth of 10.7% compared to the 24,028 million pesos.

However, the company’s revenue grew at a slower pace. In the second quarter of 2024, the company reported 80.4 million pesos, which meant a slight growth of 1% due to lower sales of phones.

The company’s operating cash flow grew by 7.4% to 34,987 million pesos, driven by positive revenue growth on both mobile and fixed-line platforms.