MEXICO CITY (Reuters) -Mexican telecoms giant America Movil (NYSE:) missed analysts' projections and posted a second-quarter net loss in results released Tuesday, citing a weaker local peso.
The company, controlled by the family of Mexican billionaire Carlos Slim, reported a net loss of 1.09 billion pesos ($60 million). In the same period last year, it posted a net profit of nearly 26 billion pesos.
Analysts polled by LSEG had estimated dollar-denominated net profit of $1.06 billion on revenue of $12.09 billion.
The company cited currency volatility following President-elect Claudia Sheinbaum's election victory last month.
“The Mexican peso, which had withstood the volatility of U.S. interest rates well, weakened dramatically following the June 2 presidential elections in Mexico,” America Movil said in its filing with the Mexican Stock Exchange.
“After months of appreciation against the US dollar and virtually all currencies in our region of operations, the Mexican peso depreciated against all of them,” he added.
By the end of June, the peso had weakened 7% against the US dollar compared to a year earlier, but has since regained ground.
However, the company's revenue increased by 1.5% to 205.52 billion pesos (11.24 billion dollars).
America Movil said its core earnings, or earnings before interest, taxes, depreciation and amortization (EBITDA), rose nearly 6% in the quarter to 83.1 billion pesos.
The company added 2.4 million subscribers, including 1.8 million postpaid customers, driven by growth in Brazil, the region's largest economy. In the fixed-line segment, the company added 376,000 broadband accesses.
In June, América Móvil acquired a controlling stake in cable and mobile operator ClaroVTR, which was shared 50-50 with Liberty Latin America (LLA). América Móvil will convert the convertible notes it holds in ClaroVTR into shares to obtain a controlling stake of around 91%.
Company executives have said the firm is investing in 5G across all of its markets and remains on track to implement a $7.1 billion capital spending plan set for this year.
($1 = 18.2862 Mexican pesos at the end of June)
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