América Móvil Q2 revenue rose 4.6% to 212.5 billion pesos, missing consensus, but Ebitda beat estimates. Postpaid adds hit two-year high. Alpha Score 54.
América Móvil posted second-quarter revenue of 212.5 billion pesos, up 4.6% from a year earlier, as postpaid mobile subscriber additions in Mexico and Brazil helped offset currency weakness in Colombia and Argentina, the company said Tuesday.
Revenue missed the 215.4 billion-peso consensus compiled by Bloomberg, though earnings before interest, taxes, depreciation and amortization of 68.1 billion pesos beat the 67.5 billion-peso estimate. Ebitda margin widened to 32.1% from 31.5% in the year-ago quarter.
“We continue to see good traction in postpaid,” Chief Financial Officer Carlos Garcia Moreno said on the call with analysts. “Mexico added 279,000 postpaid subscribers in the quarter. Brazil added 433,000.”
The Mexico business, which accounts for roughly 40% of group revenue, grew sales 3.2% year-on-year to 78.8 billion pesos, driven by mobile service revenue and fixed-broadband additions. Brazil revenue rose 5.8% to 39.6 billion pesos in local-currency terms, though the real's depreciation against the peso trimmed the reported contribution.
Colombia revenue slipped 2.1% to 15.2 billion pesos as the peso strengthened against the Colombian peso, and Argentina revenue fell 12% to 8.9 billion pesos amid a sharp devaluation of the Argentine peso.
The company added 1.4 million mobile subscribers in the quarter, bringing the total base to 396 million. Postpaid net additions of 1.1 million were the highest in two years, Garcia Moreno said.
Capital expenditure rose 8% to 32.5 billion pesos as the company invested in 5G spectrum and fiber-to-the-home rollout. Free cash flow after capex was 35.6 billion pesos, down from 38.2 billion pesos a year earlier.
Net profit came in at 22.3 billion pesos, up from 18.9 billion pesos, helped by lower depreciation charges and a one-time tax benefit in Mexico.
“We are seeing the benefits of our network investments, especially in 5G coverage,” Chief Executive Officer Daniel Hajj Aboumrad said. “Mexico City now has 95% 5G population coverage, and we expect to reach similar levels in Guadalajara and Monterrey by year-end.”
América Móvil shares trade at roughly 10.5 times trailing earnings, a discount to the 14.5 times multiple of the broader Mexican market. The company's AMX stock page shows an Alpha Score of 54 out of 100, which reflects a mixed fundamental outlook amid currency headwinds and elevated capex.
Debt at the end of June stood at 472 billion pesos, with a net debt-to-Ebitda ratio of 1.6 times, within the company's target range of 1.5 to 1.8 times. Garcia Moreno said the company expects to stay within that range for the rest of the year.
The board declared a dividend of 0.19 peso per share, payable in September.
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