America Movil reported a MXP2.88 billion ($175 million) loss in the third quarter, pinning the blame on unkind foreign exchange movements.
The Q3 loss compared with healthy net income of MXP12.62 billion in the year-ago period, but the group saw its foreign exchange loss this time around increase to MXP45 billion from MXP9 billion, wiping out profits.
It was the first quarterly loss for America Movil since the fourth quarter of 2001.
During the current quarter, the Mexican peso and Brazilian real both suffered sharp depreciations against the US dollar.
Third quarter revenue scraped up by 1.2 per cent to MXP223.6 billion. However, within this figure, equipment grew by 21 per cent to MXP27 billion, but service revenue fell by one per cent to MXP196.6 billion.
In its home market of Mexico, America Movil is facing an increased competitive threat. Among the changes, AT&T and Telefonica are increasing their investment and presence in the country. America Movil complained it is being forced to subsidise its rivals with asymmetric interconnection rates among other measures. It also argues that it should be granted a pay-TV licence, to increase competitiveness in the market and counter-balance rivals.
America Movil has also responded with measures including its Sin Fronteras package in July that enables its Mexican subscribers to call the US with no long distance fee and to use their mobile phones in the US as if they were in Mexico, without roaming or long-distance charges.
Total revenue in Mexico was virtually flat at MXP68 billion, an increase of only 0.7 per cent over the same period in 2014. Total service revenue dipped alarmingly by 5.7 per cent to MXP55 billion, although wireless revenue rose by 3.5 per cent to MXP44 billion.