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America Movil's Q1 Earnings Lag Estimates Despite Higher Revenues
AMXAmérica Móvil(AMX) ZACKS·2025-05-01 13:55

Core Insights - America Movil, S.A.B. de C.V. (AMX) reported a net income per ADR of 30 cents for Q1 2025, an increase from 25 cents in the prior year, but missed the Zacks Consensus Estimate by 6.25% [1] - Total quarterly revenues increased by 14.1% to Mex232,038million,drivenbygrowthinbothServiceandEquipmentsegments[3]−Thecompanygained2.4millionpostpaidsubscribersinQ1,withBrazilcontributingthemost[4]FinancialPerformance−NetincomeforthequarterwasMex232,038 million, driven by growth in both Service and Equipment segments [3] - The company gained 2.4 million postpaid subscribers in Q1, with Brazil contributing the most [4] Financial Performance - Net income for the quarter was Mex18,703 million, compared to Mex13,494millioninthesamequarterlastyear[1]−Comprehensivefinancingcostsdecreasedby213,494 million in the same quarter last year [1] - Comprehensive financing costs decreased by 2% to Mex13,440 million from Mex13,708million[1]−Totalcostsandexpensesroseby14.913,708 million [1] - Total costs and expenses rose by 14.9% to Mex140,990 million [9] - EBITDA increased by 13% to Mex91,048million,withanEBITDAmarginof39.291,048 million, with an EBITDA margin of 39.2% [11] Subscriber Metrics - The company ended the quarter with 324 million wireless subscribers, with a net loss of 1 million prepaid subscribers primarily in Mexico and Brazil [4] - In Mexico, postpaid revenues grew by 5.5%, while prepaid revenue fell by 2.5% due to economic slowdown [6] Regional Performance - Mexico's revenues declined by 2.3% to Mex82,107 million, mainly due to a 14.3% drop in equipment sales [6] - Argentina's revenues increased by 28.4% to ARS 589,836 million, supported by improved economic activity and consumer spending [7] - Central America's revenues rose by 16.4% to 702million,drivenbystrongperformanceinServiceandEquipmentrevenues[8]LiquidityPosition−AsofMarch31,2025,thecompanyhadMex702 million, driven by strong performance in Service and Equipment revenues [8] Liquidity Position - As of March 31, 2025, the company had Mex88,363 million in cash and marketable securities, alongside long-term debt of Mex$465,263 million [12]