Revenue rises 7% on forex gains, mobile data growth.
America Movil late on Tuesday reported an 85.88% year-on-year surge in second quarter profit, as the Mexican telco group benefitted from foreign exchange gains and mobile data growth.
Revenue in the three months to 30 June was up 6.9% on Q2 last year to 249.43 billion pesos (€12.37 billion), driven entirely by growth in service revenue, which grew to MXN215.93 billion from MXN199.81 billion, offsetting a slight decline in equipment revenue. On a constant currency basis, revenues climbed 4.2%. Costs edged up 4.4% to MXN180.07 billion.
"In the second quarter, financial volatility in Latin America became more subdued in line with the situation in the global markets, with world economic growth on slightly improving path," said America Movil, in a statement.
Operationally, it was a strong performance from America Movil too, with its postpaid mobile subscriber base increasing 5.1% on last year on net additions of 565,000 during the quarter. Mobile data revenue jumped 21.8%.
The group’s overall mobile customer base edged down 1% to 280.03 million from 282.85 million, as declines in Brazil, and the U.S. offset sturdy growth at its operations in Argentina, Paraguay and Uruguay, and Chile.
The solid performance drove group EBITDA up to MXN69.36 billion from MXN60.98 billion a year earlier. Lowe foreign exchange losses helped push America Movil’s net profit up to MXN14.31 billion from MXN7.7 billion.