America Movil will be slashing its capital expenditure for 2020 from USD 8.5 billion to USD 6 billion due to the impact of Covid-19 lockdowns on its business, said CEO Daniel Hajj following publication of the company’s third-quarter earnings. “We are going to reduce the capex from our original number this year because execution in the lockdown was very difficult … We took out projects we don’t need and we’re going to delay others,” said Hajj, according to BN News Americas.
Earlier this year Hajj announced that the group intended to spend USD 8.5 billion on capital expenditures in 2020, similar to last year’s investment, to continue expanding its fibre-optic infrastructure throughout Latin America and launch its first 5G networks. In his latest comments, the chief executive said next year’s capex is “going to be higher than this year but not as high as previous years.”
The Mexican telecom giant reported an improvement in third-quarter results compared to Q2 trends, as confinement measures began to be lifted in its footprint and commercial activity rebounded in most markets. In total, the operator recovered some 3.2 million mobile subscribers in Q3 after shedding over 5 million in the second quarter. The company also added 446,000 new fixed broadband subscribers in the July to September period.
