América Móvil Reports Sharp Drop in Q3 Net Profit

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Mexican telecommunications company América Móvil experienced a significant decline in net profit for the third quarter, primarily due to higher financial costs, including exchange losses and an impairment charge.

According to the latest financial report, América Móvil recorded a net profit of 2.0 billion Mexican pesos ($113 million) for the July-September period, equivalent to 0.03 pesos per share or $0.04 per American depositary receipt. This represents a notable decrease from the net profit of 18.0 billion pesos reported during the same quarter last year.

The increase in overall financial costs resulted from an exchange loss of 12.3 billion pesos and a 4.7 billion peso impairment related to the company’s stake in the Claro Chile joint venture.

While revenue declined by 3.3% to 203.8 billion pesos, it is important to note that this decrease was mainly influenced by the Mexican peso’s appreciation against other currencies, affecting the peso value of international sales. In constant currency terms, service revenue actually increased by 3.8%.

Moreover, earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 3.6% to 79.9 billion pesos, but showed a 5% growth at constant exchange rates.

The report also highlighted that overall broadband revenue experienced a significant growth rate of 6.4%, its fastest pace in over two years. Additionally, corporate network services emerged as the second-largest revenue generator within the fixed-line segment, accounting for 19% of fixed-line service revenue.

Despite the challenging financial results, América Móvil remains optimistic about its future prospects and aims to navigate through these difficulties while continuing to provide quality telecommunications services.

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