America Movil posts net loss of MXN29.4bn in 1Q20

29 Apr 2020

Mexico City-based telecoms giant America Movil (AM) has reported revenues of MXN250.1 billion (USD10.2 billion) for the three months ended 31 March 2020, representing an increase of 1.8% year-on-year, from MXN245.7 billion. EBITDA for the first quarter increased 2.9% from MXN75.4 billion to MXN77.6 billion, while the company posted a net loss of MXN29.4 billion in 1Q20, compared to net income of MXN19.6 billion in the year-ago period.

The group notes: ‘Over the last several weeks the full or partial lockdown of various countries has resulted in a sharp collapse of economic activity and rapidly rising levels of unemployment. Most Latin American currencies depreciated versus the US dollar, with the Mexican peso losing 25%, the Brazilian real 29% and the Colombian peso 24% in relation to their levels at the close of 2019 … Comprehensive financing costs totalled MXN79.6 billion, resulting from MXN93 billion in foreign exchange losses stemming mostly from the depreciation of the Mexican peso vis-a-vis the US dollar and the euro. They gave rise to an MXN29.4 billion net loss in the quarter.’

In operational terms, AM closed out March 2020 with a consolidated base of 282.559 million wireless subscribers, up 1.8% from 277.458 million one year earlier. AM’s total number of fixed line RGUs (including wireline, broadband and pay-TV) dropped 0.7% y-o-y, to 81.375 million at end-March.

Mexico, America Movil (AM)