America Movil became the latest operator to announce plans to create an independent unit to house its tower assets, as it revealed a jump in Q4 2020 profit on exchange rate gains.
In its earnings statement, the operator said the creation of a business dedicated to its Latin American tower assets would help “maximise the value of the infrastructure” adding it would be “entirely focused on development, construction and co-location of towers for wireless services.”
America Movil’s move to separate its towers to increase the assets’ potential is in line with similar strategies taken by operators across the world in recent years, with some then selling stakes in new units or divesting them completely.
The operator group expects to complete the move by the end of this year subject to approvals.
In Q4, America Movil’s net profit increased to MXN37.3 billion ($1.8 billion), up almost 80 per cent year-on-year due largely to gains from favourable foreign exchange movements as the Mexican Peso strengthened against the US dollar and euro.
Revenue fell 3 per cent to MXN255 billion, with the majority of the decline attributed to lower takings from equipment sales.
In its earnings statement, the company noted an economic recovery following the first wave of the Covid-19 (coronavirus) pandemic “appeared to” pick up speed across most of the countries it operates in.
It cited boosts from the approval of vaccines and was also positively impacted by increased confidence levels in Latin America following the US presidential election.
“In this context the Latin American currencies, which had depreciated sharply against the US dollar as the pandemic began, strengthened notably.”
In Q3 the company reported a sharp decline in equipment sales and prepaid mobile had abated after lockdown measures began to lift across its markets.