America Movil said its underlying service revenue growth improved to 2.3 percent in the quarter, from 0.8 percent growth in the Q1. This excludes the effects of the stronger Mexican peso and Argentina, which is subject to hyper-inflation. Stronger mobile revenues, in Mexico, Colombia and the US, as well as continued expansion in fixed broadband drove the underlying growth.
Total revenues fell 3.1 percent to MXN 250.1 billion, with service revenue down 3.1 percent and hardware sales falling 0.3 percent. EBITDA increased 6.3 percent to MXN 78.1 billion and grew 3.5 percent on an organic basis, better than the 0.1 percent fall in Q1. EBITDA growth accelerated in Mexico to 4.7 percent, and in Colombia and Ecuador, to 8.4 percent and 6.9 percent respectively. Peru, Guatemala, and Costa Rica all grew EBITDA by over 10 percent as well.
Net profit more than tripled, to MXN 14.1 billion from MXN 435 million a year ago. This was driven by a 63 percent reduction in net financing costs, mainly due to lower forex losses. Net debt totaled 686.4 billion at the end of June, roughly flat year-on-year after adjusting for leasing under IFRS 16.
America Movil ended the quarter with 277.916 million mobile subscribers, up by 0.2 percent from March but down 0.4 percent from a year earlier. Quarterly growth came mainly in Mexico, Colombia and the Telekom Austria operations. Fixed RGUs were up 0.1 percent on a quarterly basis and 1.5 percent higher year-on-year at 84.544 million. Quarterly growth included 369,000 new broadband customers, offsetting the loss of 157,000 voice lines and 94,000 pay-TV customers.
