America Movil booked higher net profit for Q2, partly attributed to gains from foreign exchange movements, as it also reported improvements in the prepaid mobile sector and higher equipment sales.
The Mexico-based company recorded net profit of MEX42.8 billion ($2.1 billion), up from MEX19.5 billion in the same quarter of 2020. Revenue was MEX253 billion, broadly flat year-on-year.
It noted a 34 per cent boost in revenue from equipment sales was due to increased commercial activity in its markets. However, it cautioned direct comparisons with Q2 2020 could be misleading as it was the quarter when the effects of Covid-19 (coronavirus) “both in terms of commercial activity and revenue were more deeply felt”.
America Movil also hailed the net addition of 4.2 million wireless users across its markets, with almost half of these post-paid. Its unit in Brazil accounted for 1.1 million of the new contract customers, it added.
In terms of foreign exchange movements, the company said the Mexican Peso appreciated against every other currency it dealt in during the period. Although this reduced service revenue when translated back to its reported currency, it effectively cut the significant debt it holds in US dollars.Subscribe to our daily newsletter Back