MEXICO · TELECOMS
Key Facts
- —What is happening AT&T booked a US$2.6 billion non-cash impairment charge in its third-quarter results on Wednesday, 21 October, after agreeing on Tuesday, 13 October, to sell AT&T Mexico to Grupo Televisa and Fintech Holdings for about US$2 billion.
- —Why it matters AT&T is leaving Mexico’s mobile market roughly a decade after buying in, and its chief financial officer says the exit costs about US$400 million to US$500 million of cash flow a year.
- —The numbers The charge equals US$0.41 per share, and quarterly earnings came to US$0.13 per share. Capital spending falls about US$1 billion in 2027 and 2028, including US$300 million to US$400 million in Mexico.
- —Who is who AT&T, led by chief executive John Stankey, is a US telecom group. The buyers are Televisa, a Mexican media and telecom company, and Fintech Holdings, an investment vehicle of financier David Martínez.
- —What to watch The sale needs any regulatory approvals required in Mexico and is expected to close in the first quarter of 2027, when El CEO says AT&T expects an US$800 million employee separation charge.
- —Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 71.4 points (October 2026 edition).
- —What it means for you For US holders of AT&T shares, the sale lifts the profit outlook, and for travellers AT&T says its service for US customers in Mexico stays unchanged.
AT&T booked a US$2.6 billion non-cash charge for the planned sale of AT&T Mexico. Its finance chief says leaving Mexico costs US$400 million to US$500 million of cash flow a year.
AT&T booked a US$2.6 billion non-cash charge on Wednesday, 21 October, for the planned sale of its Mexican wireless unit. The US group had agreed on Tuesday, 13 October, to sell AT&T Mexico to Televisa and Fintech Holdings for about US$2 billion.
Chief financial officer Pascal Desroches told analysts that giving up Mexico will cost AT&T about US$400 million to US$500 million a year. That is lost cash flow, not lost revenue, as some Mexican headlines put it.
What AT&T Reported on 21 October
AT&T said it applied held-for-sale accounting to the Mexican business as of 30 September. It recorded a non-cash impairment charge of US$2.6 billion under Corporate and Other.
The charge did not affect the segment results, and AT&T will keep reporting a Latin America segment. The release says the charge is in reported figures and excluded from adjusted measures.
Reported earnings were US$0.13 per share, against US$1.29 a year earlier, when a gain on the DIRECTV investment sale lifted the figure. Adjusted earnings rose to US$0.65 from US$0.54.
The impairment accounts for US$0.41 of per-share earnings, the release says. Revenue rose 5.3% to US$32.3 billion.
What the Exit Costs AT&T
On the analyst call, Desroches said the absence of Mexico probably costs US$400 million to US$500 million a year. He framed it as total cash flow, the outlet El CEO reports.
Expansión, a Mexican business magazine, headlined the same figure as lost revenue. The call and the CFO’s words, as quoted by El CEO, describe cash flow.
AT&T also expects capital spending about US$1 billion lower than planned for 2027 and 2028. Desroches said US$300 million to US$400 million of that is Mexican wireless spending, with the rest from fiber efficiencies.
AT&T raised its 2026 adjusted earnings outlook to the US$2.40 range per share. The release says the 2027 and 2028 outlook excludes the Mexico business.
El CEO also reports an employee separation charge of US$800 million expected in the first quarter of 2027. The results release gives no dollar amount for it, so treat the figure as reported only by that outlet.
How the Sale Is Structured
AT&T said on 13 October it would sell its Mexican wireless business, the entire Latin America segment. The buyers, Grupo Televisa and Fintech Holdings, pay US$2 billion in cash at closing, subject to certain adjustments.
Closing is expected in the first quarter of 2027, subject to any necessary regulatory approvals in Mexico. The Rio Times report on the AT&T Mexico sale has the financing and the approvals needed.
Expansión reports that AT&T paid US$4.375 billion in 2015 for Iusacell and Nextel, so the sale price is under half. It adds that AT&T committed another US$3 billion to its LTE network.
Ramiro Tovar, a professor at the ITAM university in Mexico City, told Expansión the deal was a bargain for the buyers. He said the asset was worth more in Televisa’s hands, citing operating losses of nearly US$4 billion from 2017 to 2025.
The Mexican Business Before the Sale
AT&T Mexico reported third-quarter revenue of US$1.24 billion, up 13.2% from a year earlier, El Financiero and DPL News report. Earnings before interest, tax, depreciation and amortisation rose 18.6% to US$236 million.
Operating profit was US$45 million, US$23 million more than a year earlier, according to the same reports. El Financiero reports EBITDA has now grown for 27 consecutive quarters.
The unit added 482,000 net contract customers, bringing that base to 7.9 million, DPL News reports. It lost 512,000 prepaid customers, which DPL News ties to Mexico’s mandatory mobile line registration.
The registry is covered in Rio Times reports on 2.2 million suspended lines and on the Izzi and Megacable line gains. Expansión’s 16 October report gives the unit’s 2025 revenue as US$4.38 billion and operating profit as about US$145 million.
What It Means for US Readers
AT&T is a US-listed company, so shareholders feel the main effect, with a higher profit outlook and a lower capital bill. The charge is an accounting entry, and the release calls it non-cash.
Mexico was a small part of AT&T’s business: the unit’s US$1.24 billion quarter compares with US$32.3 billion at group level. Tovar told Expansión it was under 1% of AT&T’s operating profit.
Travellers need not change plans, because AT&T said on 13 October that US customers will see no change, including in Mexico. Business customers with Mexican operations should ask AT&T about contracts that run past closing.
For wider context, see the Mexico hub at Rio Times Mexico coverage and the guide to who runs Mexico’s economy. Visitors to the capital can use the Mexico City page.
What Is Not Known
AT&T did not say how it calculated the US$2.6 billion charge. Expansión says the price is below book value, but the reports reviewed give no book value or carrying amount.
No closing date is set, and the regulators have not yet ruled. It is also not known whether the final price will differ from US$2 billion after adjustments.
The US$800 million separation charge rests on El CEO alone, with no detail on how many jobs it covers. The effect on AT&T Mexico’s staff and customers after closing has not been stated.
What Comes Next
Any regulatory approvals required in Mexico must come before closing, which AT&T targets for the first quarter of 2027. AT&T will keep reporting the unit as held for sale until then.
AT&T’s sale release says there is no service impact for US customers, including those travelling to Mexico. It gives no separate statement on service for Mexican customers before closing.
Frequently Asked Questions
How big is the AT&T Mexico charge?
AT&T booked a non-cash impairment charge of US$2.6 billion in the third quarter. Its release says the charge accounts for US$0.41 of earnings per share.
Why did AT&T take a charge on Mexico?
AT&T agreed on 13 October to sell AT&T Mexico and applied held-for-sale accounting as of 30 September. Expansión reports the price was below the unit’s book value.
Who is buying AT&T Mexico?
Grupo Televisa, a Mexican media and telecom group, and Fintech Holdings, an investment vehicle of financier David Martínez. The agreed price is about US$2 billion.
When will the AT&T Mexico sale close?
AT&T expects closing in the first quarter of 2027, subject to approval from Mexican regulators. No closing date has been set.
Does the sale affect AT&T customers travelling to Mexico?
AT&T says US consumer and business customers will see no change, including when travelling to Mexico. The release gives no separate statement on Mexican customers.
Sources: AT&T, third-quarter 2026 results, 21 October; AT&T, sale of AT&T Mexico, 13 October; Expansión, 21 October; Expansión, 16 October; El CEO, 21 October; El Financiero, 21 October; DPL News, 21 October (all accessed 22 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief