Mexico's America Movil says mobile growth boosts earnings; misses estimates
AMX•America Movil reported third-quarter net profit of 24.28 billion pesos, up 7%, and revenue of 250.63 billion pesos, up 7.6%, but both missed analyst estimates. Mobile service revenue rose 6.3%, while the company added 3.1 million postpaid subscribers and recorded 5 million prepaid disconnections.
1. Earnings and revenue
America Movil said third-quarter net profit rose 7% to 24.28 billion pesos ($1.34 billion), while revenue increased 7.6% to 250.63 billion pesos ($13.86 billion). Analysts polled by LSEG had forecast net profit of $1.51 billion and revenue of $14.05 billion.
2. Subscriber changes
Mobile service revenue rose 6.3%, matching the second quarter's growth rate. America Movil added 3.1 million net postpaid subscribers, led by Brazil, and recorded 5 million net prepaid disconnections, mainly in Mexico and Colombia. The company completed its acquisition of Brazilian broadband provider Desktop in early October.
