América Móvil posts Q3 loss
Mexico’s América Móvil has posted its first quarterly loss in nearly 14 years following the harsh deprecation of the Mexican peso.
The weakness of both the peso and the Brazilian real against the US dollar saw the operator’s financial costs increase almost fourfold for the July-September period, amounting to a net loss of 2.88 billion pesos ($175 million).
In a Reuters poll, analysts had forecast a 9.492 billion peso profit for the quarter and the last time América Móvil posted a loss was in Q4 2001, the year it began publishing financial results.
“The foreign exchange losses incurred have not had an impact on cash flows,” Carlos Slim-owned América Móvil stated in a release. “They partly originate in intercompany financing positions.”
The Mexican giant saw a rise in revenues, but its foreign exchange loss hit 45 billion pesos for the quarter, which América Móvil allegedly partly offset by a drop in other financial expenses.
The Mexican peso fell 7% on average against the dollar from the second quarter, while the Brazilian real dropped 15%.