America Movil reported first-quarter revenues down 0.8 percent year-on-year to MXN 248 billion. While customer growth remained solid, the stronger US dollar and new Covid confinements in key markets such as Brazil and Mexico put pressure on results.
Service revenues fell 1.1 percent to MXN 207.1 billion, but were up 1.2 percent on a constant currency basis. This was slightly slower than the 2.2 percent adjusted growth in the preceding quarter, mainly due to a slowdown in the mobile business to 1.7 percent growth from 4.1 percent in Q4. Fixed services turned to positive revenue growth of 0.1 percent, thanks to demand for broadband and corporate networks.
EBITDA rose 5.2 percent to MXN 81.7 billion and was up 8.1 percent excluding forex effects. The EBITDA margin expanded almost two percentage points to 32.9 percent supported by strict cost controls across all markets, the company said. Growth rates included 59 percent in the US, 47 percent in Puerto Rico, 36 percent in Peru and 15 percent in Dominicana.
The net result improved to a profit of MXN 1.8 billion from a loss of MXN 28.9 billion a year ago. This was helped by a 55 percent reduction in net financing costs to MXN 35.9 billion.
Net debt fell by MXN 20.2 billion in the first quarter, ending March at MXN 627 billion or 1.77x EBITDA. Operating cash flow covered MXN 24.9 billion in capital expenditure in the period as well as MXN 4.4 billion spent on share repurchases.
America Movil ended the quarter with 293.5 billion mobile customers, up 3.9 percent from a year earlier Quarterly net additions included 3.3 million postpaid subscribers and 2.8 million prepaid lines. Brazil led the way in terms of postpaid growth, adding 2.4 million subscribers, followed by Peru with 210,000 and Colombia with 154,000. In terms of prepaid growth, Brazil also came first, with 812,000 net additions, followed by Mexico with half a million, Colombia at 298,000 and Argentina with 213,000.
In the fixed market, RGUs were down 0.9 percent year-on-year to 80.7 million. On a quarterly basis, the operator gained 246,000 broadband subscribers, with nearly every country growing, apart from Austria. Voice and pay-TV continued to lose customers.
