Telecoms giant America Movil swings to profit on foreign exchange gains

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By Sarah Morland Mexican telecoms giant America Movil BMV:AMX/B reported on Tuesday a swing to profit in the second quarter of 2025, surpassing analysts' forecasts and fueled by foreign exchange gains from currencies across Latin America.Analysts are scrutinizing the firm's earnings results for clues to the landscape of toughening competition in Mexico, the region's second-largest economy, where rivals such as Walmart BMV:WALMEX and Televisa BMV:TLEVISA/A jostle for subscribers. America Movil pointed in a report to 11 billion pesos in FX gains - equivalent to half its net profit - which it said had allowed it to "significantly" cut down its financing costs.Net profit for the group, controlled by the family of Mexican billionaire Carlos Slim, hit 22.28 billion pesos ($1.19 billion) in the three months through June, rebounding from a loss of 1.09 billion pesos in the corresponding quarter a year earlier.Analysts polled by LSEG had expected profit of $1.13 billion.Revenues for the firm, which operates across Latin America and Europe, rose 14% to 233.79 billion pesos, or $12.46 billion, also above analysts' forecast of $12 billion.Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 11% to 92.41 billion pesos.Scotiabank analysts hailed the Mexico revenues of America Movil as "remarkably resilient in light of a weak economy" and competition, adding that they believed fixed internet rivals would hit back with price cuts and improved speed and quality.Such competition is highlighted by the efforts of retail giant Walmart's NYSE:WMT mobile service Bait, which added 1.7 million new active users versus the prior three months, while broadcaster Televisa's BMV:TLEVISA/A broadband service swept in thousands of new customers.WEAKER PESO, STRONG FX GAINSAmerica Movil said its revenue, reported in Mexican pesos, was also boosted by the currency's depreciation against most others in the regions where it operates."The second quarter was characterized by significant uncertainty associated with the tariffs that the U.S. government seeks to impose on merchandise imports," it said.As a result, it added, the U.S. dollar also weakened against most currencies in the company's operating region. America Movil said mobile services growth was driven by its post-paid segment, which added 2.9 million customers in the three months through June, including 1.4 mill...

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