America Movil saw its net profit halve in the first quarter, to MXN 17.75 billion from MXN 35.86 billion a year earlier, due to lower deferred tax income. Revenues fell 3.7 percent to MXN 254.37 billion due to negative currency effects, and EBITDA was down 0.8 percent to MXN 71.21 billion.
On an organic basis, the company said revenues were up 2.8 percent, and service revenue growth improved to 2.1 percent from 1.4 percent in the previous quarter. EBITDA rose 5.9 percent at constant exchange rates, and the company said EBITDA margins were up more than two percentage points in Mexico, Brazil, Peru and Chile from the year-earlier quarter, and more than eight percentage points in smaller operations.
The mobile customer base was little changed during the quarter at 279.1 million, as gains of 1.4 million postpaid subscribers were offset by the loss of around 1.3 million inactive prepaid users. Brazil accounted for most of the disconnected prepaid users as well as 975,000 of the new postpaid subscribers. The number of fixed customers rose 0.3 percent on a quarterly and annual basis to 83.1 million. Quarterly growth included 427,000 new broadband subscribers and the loss of 49,000 pay-TV customers.
The company said its home market Mexico was the top performer in the quarter, with service revenue growth accelerating to 6.3 percent from 3.3 percent in the fourth quarter. Central America followed, going from 1.8 percent to 3.5 percent growth in the same period. Mobile ARPUs increased sharply in Mexico, by 11.6 percent, and in Brazil, by 10.7 percent, and Tracfone in the US also posted a 7.3 percent rise. They declined in Peru by 5.6 percent, and in Colombia, by 3.4 percent.
Capital expenditure totaled MXN 24 billion in the quarter. Net debt was little changed compared to the end of 2017, at MXN 614 .1 billion.
