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America Movil Profits Nearly Halved While Revenues Flatline

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Mexico based America Movil has seen its third quarter profits plunge by nearly half as the company turn a sizeable foreign exchange last year into a loss this year and also saw an increase in its debt financing costs.

The company reported revenues that rose by 0.7% to MXN194.2 billion as currency fluctuations ate into growth. The South American block's service revenues rose 8.9% -- the best performance in six quarters -- and those of Central America and The Caribbean 4.9%. In Mexico, however, the weak state of economic activity led to a 2.1% decline in service revenues.

Net profit however fell by 46.2% to MXN 16.4 billion (US$1.25 billion) as the company saw MXN9 billion of foreign exchange profits turned into a MXN2.9 billion loss. In total, the company absorbed MXN10.8 billion in financing costs.

The company also lost MXN1.2 billion on its share of losses by Netherlands based KNP.

Net debt stood at MXN440 billion, having risen by MXN68 billion since the start of this year.

The Group wide wireless customer base rose by 3.1 million to end September at 265 million. The landline customer base added 1.4 million, taking its total to 69.3 million at the end of September.

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Tags: america movil