América Móvil's Earnings Skyrocket in 2Q23

América Móvil almost doubled its earnings in the second quarter of 2023 by recording a net income of MX$25.88 billion (US$1.5 billion), representing a growth of 89.1% compared to the same period in 2022.

"As in the previous quarter, this reflected the appreciation of the Mexican peso against our other operating currencies during the period. Correcting for the effects of the exchange rate, service revenues increased 5%, at a slightly slower pace than that observed in the previous quarter," says the company in a press release. According to its financial report sent to the Mexican Stock Exchange (BMV), its revenues decreased 4.6% year over year (YoY) between April and June, reaching MX$202.53 billion (US$12 billion).

América Móvil added 2.2 million mobile subscribers during this period. Of those subscribers, 1.5 million were postpaid customers, bringing América Móvil’s total postpaid users to 303.2 million. Brazil contributed 632,000 new postpaid customers, while 267,000 were from Austria and 171,000 from Colombia. According to the telecommunications company, its prepaid platform registered net additions of 787,000 customers in these three months, with Brazil and Mexico gaining almost 200,000 each and Colombia 185,000.

Service revenues during these three months amounted to MX$169.21 billion (US$10 billion), representing a drop of 4.2%. Meanwhile, revenues from telephone equipment sales were MX$31.10 billion (US$1.8 billion), a drop of 7.5%. Mexico, Brazil and Austria reported an improvement in fixed-line service.

Previously, the company had announced a public offering of foreign debt securities for up to MX$20 million (MX$1.18 million). According to a statement sent to the Mexican Stock Exchange (BMV), América Móvil expects to issue as part of this transaction up to 2 million securities, with a value of MX$10,000 (US$593) per unit. América Móvil said that 100% of the funds obtained would be used for financing or refinancing green and social projects. The issue was rated "AAA.mx" by Moody's, "mxAAA" by S&P Global Ratings and AAA(mex) by Fitch.