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America Movil Posts Net Loss on Weaker Local Currencies

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Mexico based America Movil has dropped into a net loss for the third quarter of this year as weak currencies took their toll on the company.

The company posted a net loss of MXN2.88 billion (USD175 million) for the three months to the end of September, compared with a net profit of MXN12.6 billion a year ago.

The firm was particuarly badly hurt by weaker currencies in Mexico and Brazil which caused its US Dollar debt costs to rise nearly fourfold.

"The foreign exchange losses incurred have not had an impact on cash flows. They partly originate in intercompany financing positions," América Móvil said in a statement.

The company lost MXN45.1 billion on the currency, although that was offset slightly by cost cutting elsewhere in the group.

Also offsetting the currency losses, revenues rose by 1.2 percent to MXN223.6 billion, despite a 400,000 reduction in its mobile customer base. The shrinkage was due to disconnections in Brazil, Ecuador and Colombia.

The company posted customer growth in Mexico, Central America, Argentina and Chile.

América Móvil ended the quarter with 288.4 million wireless subscribers, a rise of 1 percent from a year earlier. It also had 34.9 million fixed lines with 23.4 million broadband subscribers and 21.6 million pay TV subscribers.

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Tags: america movil  Mexico