América Móvil, S.A.B. de C.V. (BMV: AMX) [NYSE: AMX, AMOV], a leading telecommunications services provider, announced today its financial and operating results for the third quarter of 2024, reflecting continued subscriber growth and solid financial performance.
In the third quarter, América Móvil added 1.8 million subscribers, including 1.4 million postpaid customers, with significant contributions from Brazil and Colombia. The company's prepaid platform registered 468 thousand net additions, primarily from Colombia, Eastern Europe, and Argentina.
The company reported a third-quarter revenue of 223 billion pesos, with service revenue expanding by 11.3% year-on-year in Mexican peso terms. This growth partly reflects the year-on-year depreciation of the Mexican peso against most regional currencies, except for the Brazilian real. At constant exchange rates, service revenue rose by 5.5%, an improvement from the 4.7% rate posted in the previous quarter.
Mobile service revenue recorded annual growth rates of 5.2% at constant exchange rates, while the postpaid segment grew by 6.3%. Fixed-line platform service revenue increased by 5.9%, with corporate networks and broadband revenue up by 10.1% and 7.4%, respectively.
EBITDA for the quarter increased by 11.9% in Mexican peso terms and 6.3% at constant exchange rates. Adjusted for one-off items, primarily from tower sales, EBITDA was up by 7.3%. The company posted a net profit of 6.4 billion pesos, aided by a 14.2% increase in operating profit and a 4.8% reduction in comprehensive financing costs.
América Móvil's net debt, excluding leases, stood at 433 billion pesos at the end of September, representing a net debt-to-EBITDAaL ratio of 1.34 times. The company's capital expenditures, shareholder distributions, and labor obligations were successfully covered by its net financing and operating cash flow.
In other recent news, America Movil (NYSE:AMX) has reported substantial growth in its third quarter of 2024. The telecom giant added 1.8 million subscribers, with 1.4 million in the postpaid category, and saw its revenue reach MXN 223 billion, marking an 11.3% year-on-year growth. Notably, the company's net profit surged to MXN 6.4 billion, almost tripling from the previous year.
Recent developments include a strong performance in Eastern Europe and positive growth trends in Peru, Central America, and the Dominican Republic. In addition, fixed broadband connections increased by 327,000. However, the company's net debt stood at MXN 433 billion, influenced by currency depreciation.
Looking ahead, America Movil expects continued postpaid growth into 2025 and anticipates strong demand for broadband services in Latin America. The company is also exploring partnerships for satellite connectivity, including agreements with Starlink and AST, to enhance service in rural areas.
Despite increased competition in the Mexican fixed broadband market, America Movil projects over $5 billion in free cash flow for 2025 and maintains its CapEx guidance for 2024 at approximately $7.2 billion.
InvestingPro Insights
América Móvil's strong financial performance in Q3 2024 is further supported by recent data from InvestingPro. The company's market capitalization stands at $51.48 billion, reflecting its significant presence in the telecommunications industry.
InvestingPro Tips highlight América Móvil's financial stability and shareholder-friendly policies. The company has raised its dividend for 8 consecutive years and has maintained dividend payments for 24 consecutive years, demonstrating a strong commitment to returning value to shareholders. This aligns with the company's reported ability to cover shareholder distributions with its operating cash flow.
Additionally, América Móvil's revenue growth of 9.62% in Q3 2024 compared to the previous quarter corroborates the company's reported expansion in service revenue. The company's gross profit margin of 61.35% for the last twelve months indicates efficient cost management, which supports the reported increase in EBITDA.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for América Móvil, providing deeper insights into the company's financial health and market position.
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