Mexican Telecommunications Giant America Movil Reports 48% Profit Plunge in Q4
MEXICO CITY (Reuters) - America Movil, Mexico's leading telecommunications provider, announced a significant 48% decline in its fourth-quarter net profit, falling short of analysts' expectations. The company attributed the profit dip to foreign exchange losses, despite an increase in revenues.
Net profit for the quarter stood at 9.48 billion pesos ($453 million), trailing the LSEG analyst consensus estimate of $1.15 billion. However, revenues for the period climbed 18% year-over-year to 236.94 billion pesos ($11.35 billion), marginally below the LSEG forecast of $11.41 billion.
America Movil attributed its quarterly revenue growth primarily to a revised accounting methodology employed in its Argentina operations, which experienced staggering 118% inflation last year. Excluding Argentina, the company reported a 10% revenue increase in Mexican peso terms, driven in part by the consolidation of its Chilean operations.
($1 = 20.8829 Mexican pesos as of end-December)