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América Móvil Q1 net profits top 1.8 billion pesos

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América Móvil has published the results of its Q1 2021 financial results, with net profits reaching 1.8 billion pesos ($89.8 million) up from a 28.9 billion ($1.4 billion) in Q1 2020.

First quarter revenues for the period were 248 billion pesos ($12.3 billion) with service revenues declining 1.1% and equipment revenues 0.7% year on year in Mexican peso terms.

At constant exchange rates service revenues increased 1.2% year on year, with mobile service revenues up 1.7% and fixed-line service revenue growth turned slightly positive for the first time in eight quarters, up by 0.1%.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) across the group increased 5.2% to 81.7 billion pesos; at constant exchange rates it grew 8.1%. América Móvil’s EBITDA margin increased almost two percent from 2020 to 32.9% as a result of strict cost controls implemented across all its markets.

It reported operating profit of 41.1 billion pesos ($2 billion) for the quarter an uptick of 5.7% year on year, despite financial costs being down 55%, resulting in the aforementioned net profit of 1.8 billion pesos ($89.8 million) for the quarter.

Capital expenditures totalled 24.9 billion pesos ($1.2 billion) with buy back shares in the amount of 4.4 billion pesos ($219,5 million) enabling the group to reduce its net debt by 9.9 billion pesos ($493,9 million).

In terms of subscriber numbers, the group added 6.0 million wireless subscribers, up one third from 2020. Broken down in segments, 3.3 million were postpaid and 2.8 million were prepaid. Geographically, Brazil, Mexico and Colombia were the biggest contributors to the growing subscriber numbers.

In fixed-line the company added 246 thousand broadband accesses, with Colombia, Ecuador and Peru being biggest contributors.