Telecoms giant America Movil slips after 'neutral' Q2 results

America Movil SAB de CV

12/07/2023 18:52

** Shares in Mexican telecommunications firm America Movil
fall nearly 2.5% to 18.35 pesos following second-quarter
earnings
    ** Net profit rose 89.1% in the second quarter while revenue
dipped 4.6% and core earnings fell 3.8%
    ** "The ongoing strength of the (Mexican peso) continued to
hinder consolidated results, as expected," say Itau analysts
    ** It was "a neutral report in operating terms and a
currency effect that boosted the advance in net income a little
further than expected," says Marissa Garza of Banorte 
    ** Capital expenditures were down 1.7% year-on-year for the
first half, "suggesting a heavier allocation" in the second
half, adds Itau
    ** America Movil plans to invest around $8.5 billion "more
or less" this year, executives say
    ** The company is seeing "good growth" in its mobile segment
organically and not looking for new acquisitions, according to
Chief Financial Officer Carlos Garcia
    ** In Mexico, America Movil gained 262,000 wireless
subscribers in the quarter and 130,000 revenue-generating units
in its fixed-line segment
    ** Company executives attribute the growth to an increase in
fiber connectivity, improved installation processes and
increased customer retention

 (Reporting by Kylie Madry in Mexico City; Editing by Diane
Craft)
 ((Kylie.Madry@thomsonreuters.com))