Mexico’s America Movil posts 350% jump in Q4 profit

America Movil, the telecommunications giant controlled by the family of billionaire Carlos Slim, reported a massive 350% surge in net profit for the fourth quarter of 2023 during its financial disclosure in Mexico City on February 13, 2024. The company’s net income skyrocketed to 43.1 billion pesos ($2.5 billion) during the October-to-December period, a significant leap compared to the 9.5 billion pesos recorded in the same quarter of the previous year. This dramatic growth was primarily fueled by a stronger Mexican peso and a substantial reduction in comprehensive financing costs, which bolstered the firm's bottom line despite a challenging global economic environment. The telecommunications firm, which operates across Latin America and Europe, benefited significantly from currency fluctuations as the Mexican peso appreciated against other regional currencies and the U.S. dollar. This foreign exchange tailwind allowed the company to lower its debt servicing costs and report gains on its financial positions. Additionally, America Movil saw a steady increase in its subscriber base, adding 3.9 million new customers during the quarter, including 2.7 million post-paid subscribers, which are typically high-value accounts for the provider. Revenue for the fourth quarter remained relatively stable at 203.3 billion pesos, a slight decrease of 0.7% in nominal terms but an increase when measured at constant exchange rates. The company's performance was particularly robust in its home market of Mexico and in Brazil, where it continues to expand its 5G infrastructure and fiber-optic networks. While the firm faced inflationary pressures on operating expenses, the strategic focus on cost management and digital transformation helped maintain an EBITDA margin of approximately 38%, signaling strong operational efficiency. Looking ahead, America Movil's management expressed optimism regarding the ongoing rollout of advanced telecommunications technology and the integration of new digital services. The fourth-quarter results highlight the company's resilience as it navigates a competitive landscape dominated by shifts in consumer behavior and technological advancement. By leveraging its dominant market position and improving financial structure, the telecommunications leader remains a cornerstone of the Latin American corporate sector.