Mexico’s America Movil Q1 profit surges on foreign exchange gains

The brand of The united states Movil is pictured on the wall at a reception location in the firm’s company places of work, in Mexico Town, Mexico January 25, 2022. REUTERS/Gustavo Graf

MEXICO City, April 26 (Reuters) – Mexican telecommunications huge America Movil (AMXL.MX) on Tuesday documented a surge in its initial-quarter internet gain on the back again of strong running cash flow and foreign trade gains, while revenues edged greater.

Web earnings jumped to 30.8 billion pesos ($1.55 billion), from 1.8 billion pesos in the yr-previously time period, according to a filing with the Mexican stock exchange.

The usa Movil explained the gain was a result of “robust overall performance of operating income and detailed financing revenue of 7.3 billion pesos pushed by overseas trade gains of 22.6 billion pesos.”

Some Latin American currencies this kind of as the Brazilian authentic posted major gains towards the U.S. greenback in the quarter, boosted by increased interest rates as effectively as soaring commodities prices.

But the company’s income rose just 2.4% from a 12 months previously to 211.2 billion pesos.

Earnings ahead of desire, taxes, depreciation and amortization (EBITDA) arrived in at 81.1 billion pesos, an increase of about 4.2% at regular trade premiums from a 12 months previously, under a Refinitiv estimate of 83.673 billion pesos.

The us Movil mentioned it extra 3.2 million cell subscribers in the quarter, which includes 1.9 million postpaid shoppers, of which much more than 50 % are from Brazil. The pay as you go consumer segment saw 1.3 million new subscribers.

“Cellular support revenues expanded 6.3% 12 months-on-yr, quite much the identical tempo as in the preceding quarter and substantially larger than that noticed a calendar year just before, 1.2%,” the enterprise mentioned in a assertion.

($1 = 19.8911 pesos at end-March)

Reporting by Cassandra Garrison, Kylie Madry and Noe Torres Modifying by Richard Pullin and Christopher Cushing

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