America Movil blamed increased financing costs for a 68 per cent year-on-year drop in net profit during Q2, as the Mexico-headquartered operator group booked increased service revenue and subscriber numbers across its mobile units.
Its mobile statistics during the quarter were aided by the addition of users from defunct Brazil operator Oi, which were transferred to America Movil’s local operation at the start of May following a lengthy sales process.
America Movil noted mobile service revenue was up 8.5 per cent, adjusted for constant exchange rates. Without the addition of revenue from former Oi customers it noted this would have been 7.4 per cent. The company does not break out the exact revenue figure.
Outside of Brazil, America Movil pointed to strong mobile gains in Mexico, Peru and its interests in Eastern Europe. Including its fixed, TV and other business units, revenue increased 3.3 per cent year-on-year to MXN217.4 billion ($10.5 billion).
Despite increases in its mobile earnings, America Movil’s net profit suffered due to an increase in financing costs and high associated interest.
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