América Móvil Reports Strong Subscriber Growth and Revenue Increase

América Móvil, S.A.B. de C.V. [BMV: AMX] [NYSE: AMX, AMOV], a prominent player in the Wireless Telecommunication Services industry with a market capitalization of $45.2 billion, announced today its financial and operating results for the fourth quarter of 2024, showcasing strong subscriber growth and an increase in revenue. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculation, with analysts setting price targets ranging from $13.70 to $22.22.

The company reported surpassing 400 million access lines with 323 million wireless subscribers and 78 million fixed-line RGUs by the end of December. The growth was particularly strong in the postpaid segment, with 2.1 million new clients, primarily from Brazil, Colombia, and Mexico. Despite a prepaid segment decline due to a clean-up of 1 million subscribers in Brazil, the overall performance remained robust.

Fourth quarter revenue reached 237 billion pesos, marking an 18.0% increase from the previous year in Mexican peso terms. The rise was attributed to service revenue growth of 19.1% and EBITDA growth of 16.4% to 91 billion pesos. These figures reflect the consolidation of Claro-VTR in Chile and adjustments related to Argentina’s hyperinflationary economy. InvestingPro data shows the company maintains strong profitability with a gross profit margin of 61.4% and generates significant free cash flow, demonstrating solid operational efficiency.

Excluding Argentina, service revenue growth was 10.7%, and EBITDA growth was 8.6%. At constant exchange rates, service revenue increased by 6.6% year-on-year, and EBITDA by 5.1%, with an adjusted EBITDA increase of 7.2%.

Fixed-line service revenue grew by 7.4%, with broadband revenue and corporate networks rising by 9.8% and 12.3%, respectively. Mobile service revenue expanded by 6.2%, driven by performance in Brazil, Colombia, Ecuador, and Peru.

Operating profit reached 46.4 billion pesos, an 11.0% increase, while net income declined by 47.5% to 9.5 billion pesos due to higher comprehensive financing costs, nearly half of which were associated with foreign exchange losses.

América Móvil’s net debt, excluding leases, stood at 485 billion pesos, equivalent to 1.44 times LTM EBITDAaL, already reflecting the consolidation of Claro-VTR in Chile. The company maintains a healthy financial profile with an Altman Z-Score of 4.86, indicating strong financial stability. Additionally, América Móvil has maintained dividend payments for 24 consecutive years, with a current dividend yield of 3.3%. For deeper insights into América Móvil’s financial health and comprehensive analysis, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 top stocks with expert analysis and actionable intelligence.

The company will host a conference call to discuss the 4Q24 financial and operating results on February 12th at 9:00 am Mexico City time.

The reported figures for Argentina corresponding to the fourth quarter of 2024 are presented in accordance with IAS29, reflecting the effects of inflationary accounting as the Argentinean economy is deemed hyperinflationary. All comparisons at constant exchange rates for América Móvil’s consolidated figures exclude Argentina to ensure consistency.

This report is based on a press release statement and provides a concise, factual summary of América Móvil’s financial and operational performance for the fourth quarter of 2024.

In other recent news, Mexico’s Federal Telecommunications Institute (IFT) has unexpectedly cancelled the IFT-12 multi-band tender for 5G spectrum. This development, which occurred just before the start of the bidding process, is in line with the broader reforms under the Sheinbaum administration. The cancellation is expected to impact the telecom industry, which has been advocating for reduced frequency usage fees, a significant barrier to investment in spectrum and network coverage. Jefferies analysts have noted that this development could solidify the market position of America Movil (NYSE:AMX)’s Telcel, a dominant player in the sector. Telcel, which has already rolled out 5G in its primary markets, has limited need for additional spectrum in the near term. Given its low debt levels and lack of mergers and acquisitions on the horizon, Jefferies suggests that America Movil may ramp up its share buyback program. These are among the recent developments impacting the company.

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