Mexico’s América Móvil’s Profit Surges in Third Quarter 2024

América Móvil, the Mexican telecommunications giant, reported a significant increase in its third-quarter profits for 2024.

The company’s net profit rose by 217% to 6.43 billion Mexican pesos ($1.15 billion). This impressive growth occurred during a period of strategic adjustments and market challenges.

Total revenues climbed to 223.46 billion pesos ($39.9 billion), a 9.6% increase driven largely by service revenue growth of 11.3% to 188.17 billion pesos ($33.6 billion). Equipment sales also contributed, rising 3.7% to 32.25 billion pesos ($5.76 billion).

The company’s EBITDA reached 89.42 billion pesos ($15.97 billion), representing an 11.9% year-over-year increase. Operating profit grew by 14.2%, while financing costs decreased by 4.8%.

América Móvil added 1.8 million wireless subscribers during the quarter, bringing its total to 315.8 million. Of these, 1.4 million were postpaid customers. Brazil led postpaid growth with 291,000 new users, followed by Colombia and Mexico.

In the fixed-line segment, the company connected 327,000 new broadband accesses, with Mexico, Brazil, and Argentina as primary contributors. However, it faced challenges, disconnecting 83,000 voice lines and 30,000 PayTV units.

América Móvil’s Financial Performance

The depreciation of the Mexican peso played a significant role in boosting América Móvil’s financial results. By September’s end, the peso had weakened more than 13% against the U.S. dollar compared to the previous year.

Despite strong growth, América Móvil announced a reduction in its capital expenditure for 2024 to $7 billion, down from $8.6 billion in 2023. This decision aims to allow for more efficient funding of its broadband operations.

CEO Daniel Hajj Aboumrad stated that the company is in a strong position due to investments made over the past five years. The reduced capex will not hinder plans to expand fiber deployments and launch 5G in new markets.

América Móvil continues to face regulatory challenges in some markets, particularly Colombia and Mexico. However, it remains committed to maintaining investments in these countries for both 5G and broadband services.