America Movil 2Q20 net income surges; group loses 5m wireless subscribers

15 Jul 2020

Carlos Slim-backed Latin American telecoms giant America Movil (AM) has reported total revenues of MXN251.6 billion (USD11.1 billion) for the three months ended 30 June 2020, representing an increase of 0.6% compared to MXN250.1 billion in 2Q19. EBITDA for the quarter under review, meanwhile, climbed 5.9%, from MXN78.0 billion to MXN82.6 billion. Finally, AM’s bottom line jumped from MXN14.4 billion in the second quarter of 2019 to net income of MXN20.1 billion in 2Q20.

In operational terms, AM closed out June 2020 with a consolidated base of 277.503 million wireless subscribers, down 1.8% from 282.559 million at end-March. AM’s total number of fixed line RGUs (including wireline, broadband and pay-TV) dropped 0.5% quarter-on-quarter, to 80.993 million at end-June.

The group noted: ‘During the second quarter practically all our region of operations was under lockdown measures implemented to control the spread of COVID-19, which disrupted commercial activities by virtue of the closure of shops and customer-care centres and of the constraints imposed on the mobility of our clients. We disconnected five million wireless clients in the second quarter – 4.6 million of them pre-paid clients, including 1.7 million in Mexico, one million in each of Peru and Central America, and 476,000 in Ecuador – that often found it difficult to effect recharges. Substantially all our operations lost pre-paid clients whereas most of them also lost post-paid subscribers. As confinement restrictions began to be lifted an improving trend became apparent practically everywhere … On the fixed line platform, we gained 450,000 new broadband accesses, with just about every operation adding clients.’

Mexico, America Movil (AM)