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America Movil, S.A.B. de C.V. AMX reported net income per ADR of 30 cents for first-quarter 2025, up from 25 cents in the prior-year quarter. The earnings figure, however, missed the Zacks Consensus Estimate by 6.25%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Net income in the quarter was Mex$18,703 million or Mex$0.31 per share compared with Mex$13,494 million or Mex$0.22 per share in the year-ago quarter. The company's comprehensive financing cost was Mex$13,440 million, down 2% from the year-ago quarter’s Mex$13,708 million.
Shares of AMX have lost 8.7% in the past year against the Zacks Wireless Non-US industry’s growth of 5.3%.
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Top-Line Details
Total quarterly revenues soared 14.1% to Mex$232,038 million, driven by expanding momentum across the Service and Equipment segments. Service revenues were Mex$197,923 million, up 15.8% year over year. Equipment revenues totaled Mex$31,767 million, rising 6%.
In the first quarter, AMX gained 2.4 million postpaid subscribers, with Brazil contributing the most at 987,000, followed by Colombia with 163,000 and Mexico with 133,000. In the prepaid segment, it recorded a net loss of 1 million subscribers, primarily due to disconnections in Mexico and Brazil. The company had 324 million wireless subscribers at the first-quarter end.
On the fixed-line, Broadband and Television platforms, the company ended the quarter with 78 million revenue-generating units.
The telco operates in multiple regions, namely Mexico, Brazil, Colombia, Peru, Ecuador, Argentina, Central America, the Caribbean, Austria and Other European countries.
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Of these countries, Mexico witnessed a year-over-year revenue decline of 2.3% to 82,107 million MXP, mainly due to a 14.3% fall in equipment sales. On the mobile side, postpaid revenues saw steady growth of 5.5%, while prepaid revenue fell 2.5% from the previous year, largely due to the country's economic slowdown, owing to a 2.2% decrease in ARPU.
Argentina’s revenues came in at ARS 589,836 million, up 28.4% from the year-ago quarter. The country’s overall economic activity improved from a year ago, with consumer spending remaining resilient amid falling inflation. In this favorable environment, Claro's revenue growth in the country continued to accelerate, which drove the uptick. The reported data for Argentina are presented in line with IAS29, reflecting the implications of inflationary accounting, as the Argentine economy is “deemed” to be hyperinflationary for the first quarter of 2025. AMX also stated that Argentina would be left out of all comparisons for consolidated data at constant exchange rates to maintain consistency.
Central America’s revenues increased 16.4% to $702 million, owing to strength across Service and Equipment revenues. Revenues from Austria, Brazil, Peru, Ecuador and Colombia witnessed year-over-year growth of 3.7%, 6.2%, 3%, 1.3%, and 5.9%, respectively. Revenues from the Caribbean declined 2.3%.