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

The logo of The us Movil is pictured on the wall at a reception location in the firm’s company places of work, in Mexico Metropolis, Mexico January 25, 2022. REUTERS/Gustavo Graf

MEXICO Town, April 26 (Reuters) – Mexican telecommunications large The usa Movil (AMXL.MX) on Tuesday claimed a surge in its initially-quarter net income on the back again of sturdy functioning earnings and international trade gains, while revenues edged higher.

Web earnings jumped to 30.8 billion pesos ($1.55 billion), from 1.8 billion pesos in the 12 months-before interval, in accordance to a filing with the Mexican stock trade.

America Movil claimed the gain was a consequence of “robust effectiveness of running money and thorough financing income of 7.3 billion pesos driven by international trade gains of 22.6 billion pesos.”

Some Latin American currencies these kinds of as the Brazilian real posted significant gains versus the U.S. dollar in the quarter, boosted by larger curiosity rates as effectively as soaring commodities charges.

But the firm’s profits rose just 2.4% from a calendar year earlier to 211.2 billion pesos.

Earnings before fascination, taxes, depreciation and amortization (EBITDA) arrived in at 81.1 billion pesos, an boost of about 4.2% at regular exchange charges from a year earlier, under a Refinitiv estimate of 83.673 billion pesos.

The united states Movil mentioned it extra 3.2 million cellular subscribers in the quarter, like 1.9 million postpaid consumers, of which more than 50 % are from Brazil. The pay as you go buyer segment observed 1.3 million new subscribers.

“Cellular services revenues expanded 6.3% year-on-calendar year, extremely substantially the very same tempo as in the preceding quarter and considerably increased than that viewed a 12 months just before, 1.2%,” the company mentioned in a statement.

($1 = 19.8911 pesos at conclude-March)

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

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