By Anthony Harrup


MEXICO CITY--Telecommunications company América Móvil swung to a loss in the second quarter despite higher sales and operating gains as a weaker peso in the wake of Mexico's June 2 election generated exchange losses.

América Móvil, controlled by billionaire Carlos Slim, posted a net loss for the April-June period of 1.09 billion Mexican pesos ($61.9 million), compared with a 25.88 billion-peso profit in the second quarter of 2023. The loss was equivalent to 0.02 pesos a share or 2 cents an American depositary receipt.

Revenue rose 1.5% to 205.52 billion pesos, with service revenue up 3.5% led by mobile, and income from equipment sales down 9.8%.

"After months of appreciation against the U.S. dollar and practically all of the currencies in our region of operations, the peso depreciated against all of them," the company said.

América Móvil reported a 32.12 billion-peso exchange loss, compared with a 14.05 billion-peso exchange gain the year before.

Earnings before interest, taxes, depreciation and amortization, a measure of profitability, grew 5.6% to 83.11 billion pesos and operating profit rose 13% to 45.5 billion pesos.

The company added 2.4 million mobile subscribers in the quarter, led by Brazil, and ended June with 314 million. Fixed-line subscriptions ended the quarter at 74.4 million. An increase of 376,000 broadband subscribers, mostly in Mexico, was partly offset by loss of pay TV and fixed phone lines.


Write to Anthony Harrup at anthony.harrup@wsj.com


(END) Dow Jones Newswires

07-16-24 1839ET