América Móvil Profit Jumps 25% on Brazil Broadband Growth, Lower Costs

By Mintesinot Nigussie

América Móvil opened the year with a stronger-than-expected earnings performance across the region. Improving operating margins and steady subscriber gains helped solidify its position as a dominant telecom operator.

The Mexico-based company reported a net profit of 23.40 billion pesos, or approximately 1.31 billion US dollars. This represents a substantial 25.1 percent increase from the same period a year earlier.

Controlled by the family of billionaire Carlos Slim, the company operates in more than 20 countries. Its core brands like Telcel and Claro form the backbone of Latin America's digital telecom infrastructure.

Subscriber trends favored higher-value services, with three million postpaid mobile users added during the quarter. Brazil led the growth in this key segment, contributing over 1.3 million of those new customers.

Revenue rose 2.1 percent to 236.84 billion pesos, slightly exceeding estimates compiled by industry analysts. Earnings before interest and tax also reached 95 billion pesos, beating expectations for the quarter.

The group’s fixed broadband expansion added further momentum to its diversified revenue streams. There were nearly 600,000 new connections, reinforcing the company’s push into digital home infrastructure beyond mobile.

Mexico accounted for 175,000 new broadband additions, while Brazil contributed another 115,000. These markets remain the primary engines of growth for the company's long-term infrastructure investment strategy.

Currency movements did impact the final translated results for the global firm. The Mexican peso strengthened by about 12 percent, which reduced the relative value of overseas earnings when converted back to pesos.

América Móvil is also continuing its aggressive acquisition-led expansion strategy across South America. In March, it agreed to acquire Brazilian provider Desktop for 753 million dollars to bolster its internet presence.

The company remains focused on scaling its high-speed fiber networks to meet future data demands. Continued cost-cutting measures are also expected to support margin growth throughout the remainder of the year.