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Introduction & Market Context
America Movil (NYSE:AMX) (BMV:AMXL) presented its second quarter 2025 results on July 23, highlighting strong postpaid subscriber growth and accelerating service revenue despite challenges in its prepaid segment. The telecommunications giant reported solid performance across key markets including Brazil, Mexico, Colombia, and Peru, with particularly robust growth in its postpaid mobile and corporate networks businesses.
The company’s presentation, delivered by CFO Carlos García Moreno, revealed a 7.3% increase in consolidated service revenue, continuing an upward trend from previous quarters. This performance comes amid ongoing market rationalization in several of America Movil’s key territories.
Subscriber Growth Analysis
America Movil reported impressive postpaid subscriber growth in Q2 2025, adding 2.9 million new clients. Brazil was the standout performer with 1.4 million additions, followed by Colombia (199,000), Argentina (133,000), Peru (129,000), and Mexico (102,000). Machine-to-machine (M2M) connections contributed an additional 557,000 subscribers.
As shown in the following chart of postpaid net additions:
However, the prepaid segment faced challenges with net disconnections of 1.1 million, primarily from Brazil, Chile, and Central America. This represents a significant reversal from the 1.07 million net additions in the same quarter of 2024. The contrasting performance between postpaid and prepaid segments highlights shifting consumer preferences and market dynamics.
As illustrated in this breakdown of prepaid subscriber changes:
In the fixed-line segment, America Movil gained 462,000 broadband accesses during the quarter, with Mexico contributing half of these additions (231,000). Brazil added 66,000 broadband subscribers, while Central America contributed 51,000.
The following chart details broadband net additions by region:
Overall, year-over-year access growth showed mixed results across service categories. Mobile postpaid grew by 6.8% and fixed-broadband increased by 4.5%, while mobile prepaid decreased by 1.3%, pay TV declined by 1.1%, and fixed-voice services contracted by 1.6%.
Revenue Performance by Segment
America Movil’s consolidated service revenue growth accelerated to 7.3% year-over-year at constant exchange rates, continuing the upward trend observed in recent quarters. This performance excludes Argentina, which is reported separately due to its hyperinflationary economy.
The following chart shows the accelerating trend in service revenue growth:
Mobile service revenue performance diverged significantly between segments. Postpaid service revenue expanded by 9.5% year-over-year, while prepaid revenue growth recovered to 3.1%. This marked the strongest postpaid growth in several quarters, reflecting the company’s success in attracting and monetizing higher-value customers.
In the fixed-line segment, corporate networks and pay TV revenue showed remarkable growth of 15% and 10.1% year-over-year, respectively, representing their best performance in several quarters. This strong performance in business services and entertainment content highlights America Movil’s successful diversification strategy beyond traditional telecommunications services.
Mexico, Colombia, and Peru were the countries with the greatest impact on the sequential acceleration of revenue growth. According to the earnings call transcript, total revenue reached 234 billion pesos, representing a 13.8% increase year-over-year when adjusted for constant exchange rates.
Financial Results and Outlook
America Movil reported EBITDA growth of 5.1% year-over-year at constant exchange rates, showing sequential improvement from previous quarters. According to the earnings article, this translated to 92.4 billion pesos in absolute terms, representing an 11.2% increase in peso terms.
As shown in the EBITDA growth trend chart:
The company posted a net profit of 22 billion pesos for Q2 2025, benefiting from 11 billion pesos in foreign exchange gains. This aligns with the 22.3 billion pesos reported in the earnings call, translating to 37 pesos per share.
The following breakdown illustrates the components of America Movil’s quarterly financial performance:
Capital expenditures for the first half of 2025 amounted to 55 billion pesos, in line with the company’s investment plans. America Movil maintained financial discipline, with its leverage ratio (excluding leases) at 1.56 times last twelve months EBITDA after leases, indicating a healthy balance sheet.
For the sources and uses of funds during the first half of 2025:
Looking ahead, America Movil anticipates continued market rationalization due to consolidation, particularly in Brazil and Mexico. According to CEO Daniel Hajj in the earnings call, "As markets consolidate, I think we’ll be more rational promotions and the market will be more rational." The company expects capital expenditures for 2025 to range between 6.7 and 6.8 billion euros.
While America Movil faces challenges including regulatory changes in key markets and economic fluctuations in regional currencies, its Q2 2025 results demonstrate the company’s ability to adapt to market changes and expand its customer base, particularly in high-value segments. The continued growth in postpaid mobile and corporate networks positions the company well in an increasingly competitive telecommunications landscape.
Full presentation:
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