Brazil overtakes home market Mexico as América Móvil’s most important country

RIO DE JANEIRO, BRAZIL – The company, founded by businessman Carlos Slim, had 85.7 million mobile subscribers in Brazil at the end of June, after adding 12.9 million customers through the purchase of part of Oi’s mobile business, América Móvil said in a statement.

Carlos Slim Helú is a Mexican business magnate, investor, and philanthropist. From 2010 to 2013, Slim was ranked as the richest person in the world by the Forbes business magazine

América Móvil is a Mexican telecommunications corporation headquartered in Mexico City, Mexico. It is the 7th largest mobile network operator in terms of equity subscribers and one of the largest corporations in the world. América Móvil is a Forbes Global 2000 company.

The number of mobile subscribers in Brazil surpassed América Móvil’s (AMXL) 81.4 million mobile subscribers in Mexico, which was the main market in the division until the first quarter.

Brazil was also larger than Mexico in terms of fixed-network lines. The company has 24.7 million accesses in the South American country, compared with 21.2 million in Mexico.

The Brazilian market was also the one with the highest revenue growth for América Móvil’s mobile business in the second quarter, up 13.7% excluding Oi.

“América Móvil will consolidate OI’s mobile assets in Brazil, which would partially offset the impact of the sale of Tracfone to Verizon,” Valentín Mendoza, an analyst at Actinver, wrote in a note ahead of the company’s results.

On a consolidated basis, América Móvil ended the second quarter with 306 million mobile subscribers, resulting in a 12.5% increase in postpaid and 8.9% increase in prepaid subscribers.

The company generated revenues of MXN$217.4 billion in the second quarter, up 3.3% compared to the same period in 2021, with mobile revenues up 8.5% and fixed revenues down 0.5% year-on-year.

América Móvil’s EBITDA increased by 4% in the second quarter.

Net income was MXN$13.7 billion, down 68% year-on-year. Earnings were impacted by integral financing costs of MXN$18.1 billion, of which 50% were net interest payments.

Despite this drop in profit, the report was considered positive by Monex analysts.

“We believe América Móvil’s report was positive, as it included the integration of the Oi business in Brazil, as well as a positive trend in customer additions in the prepaid and postpaid segments,” Monex analyst Brian Rodriguez wrote in a note on the results.

On the other hand, America Movil announced that it will complete the spin-off of its Latin American tower business, to be known as Sitios Latam, in the third quarter.

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