América Móvil reports disappointing Q4 earnings

Mexican operator group América Móvil has seen its net profit for 4Q12 drop by 8.2 per cent to 15bn pesos ($1.2bn), while revenue for the quarter fell 1.1 per cent to 198bn pesos. The firm blamed the account of the depreciation of various currencies versus the peso.

The group said that it gained 1.8 million new wireless subscribers in Brazil, 1.2 million in Mexico, 753,000 in the US and 409,000 in Colombia. Its fastest growing operations were the Central American block, Peru and TracFone – its US-based MVNO.

Without the effect of the peso’s appreciation, service revenues were up 5.2 per cent year on year and total revenues 5.8 per cent.

During the second quarter of 2012, América Móvil reported similar problems, when it said it suffered from foreign exchange losses to the tune 16.1bn pesos, which impacted what would otherwise have been a strong quarter for the firm.

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