América Móvil drops its revenues 0.8% in the first quarter

América Móvil lowered its revenues 0.8% in the first quarter of 2021 year-on-year, to 248,186 million pesos.

At the same time, the company registered a net profit of 1,810 million pesos.

Comparatively, in the first quarter of last year, América Móvil had a net loss of 28,862 million pesos.

As part of its metrics, the company reported a 1.1% drop in service revenue year-on-year.

At constant exchange rates, service revenues increased 1.2%, slightly slower than in the previous quarter, which increased 2.2 percent.

As in the previous quarter, the main reason why América Móvil’s revenues in consolidated nominal pesos decreased despite the fact that they had increased in local currency terms is mainly related to the strong depreciation of the Brazilian real against the Mexican peso of -20.4 percent.

Likewise, the expansion in service revenues was driven by mobile service revenues, which slowed to 1.7% from 4.1% the previous quarter, and were supported by the continued recovery of fixed line services.

On the other hand, the revenue growth of the latter turned positive, 0.1%, after several quarters of negative growth, supported by the continued strong performance of fixed broadband services, which became its most important line of income. important in the quarter, maintaining its annual rhythm of almost 8 percent.

América Móvil

The company recorded a significant improvement in corporate networks, with revenues expanding 2.4% in the quarter compared to a 2.9% decline in the fourth quarter, resulting in a positive expansion of fixed line revenues.

The slowdown in mobile service revenues mirrored that of mobile postpaid revenues, which decelerated in Brazil, Colombia and Austria.

On the other hand, prepaid revenues maintained their growth rate at 2.4 percent.

The strong economic expansion in the United States that had gathered momentum in the second half of 2020 continued unabated in the first quarter of the year fueled by news of a second fiscal stimulus plan, talks around a new infrastructure program and solid progress in the vaccination effort.

The US economic growth forecasts for 2021 were improved and initially led to an appreciation of the US dollar against most other currencies due to rapid increases in dollar interest rates in the medium and long term.

Some Latin American countries, including Mexico and Brazil, experienced new waves of COVID that caused lockdowns, limited mobility and a slowdown in economic activity.