By Anthony Harrup
MEXICO CITY--Mexican telecommunications company America Movil SAB reported a 16% drop in third-quarter net profit on higher exchange losses than in the year-earlier quarter.
The company, controlled by billionaire Carlos Slim, had profit of 15.8 billion Mexican pesos ($781 million) for the July-September period, compared with 18.9 billion pesos in the third quarter of 2020. Profit was equivalent to 0.24 pesos a share or 24 U.S. cents per American depositary receipt.
Exchange losses contributed to a 12% increase in overall financial costs to 25.1 billion pesos.
Revenue fell 2.6% to 253.4 billion pesos, negatively affected by the peso's appreciation from a year before against other currencies in which the company operates. In local currency terms, service revenue was up 4.5% from the third quarter of 2020.
Earnings before interest, taxes, depreciation and amortization, a measure of operating cash flow, rose 1.3% from a the year-earlier quarter to 87.6 billion pesos.
America Movil added 4.2 million wireless subscribers in the quarter for a total of 301.9 million in Latin America, the U.S. and Europe. Brazil accounted for about half of the company's 2.2 million new postpaid wireless subscribers in the quarter, while Mexico led the increase in prepaid customers with growth of 577,000.
Subscriptions to fixed-line services grew by 57,000 to 80.6 million, with 252,000 new broadband connections partly offset by a reduction in the number of pay TV and fixed-phone-line subscriptions. Brazilians continued to cut the costs of their pay-TV plans, reflecting the growing share of streamed content against traditional cable TV, America Movil said.
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(END) Dow Jones Newswires