America Movil Q2 Earnings Miss, Revenues Up Y/Y on Business Momentum

Core Insights - America Movil reported a net income per ADR of $0.38 for Q2 2025, a recovery from a net loss of $0.02 in the same quarter last year, but fell short of the Zacks Consensus Estimate of $0.49 [2][10] - Total revenues increased by 13.8% year-over-year to Mex$233,785 million, driven by growth in both Service and Equipment segments [4][10] - The company gained 1.7 million wireless subscribers in Q2, with significant contributions from Brazil and Colombia, while experiencing a net loss of 1.1 million prepaid subscribers [5][10] Financial Performance - Net income for the quarter was Mex$22,282 million, compared to a net loss of Mex$1,093 million in the prior year [3] - Comprehensive financing costs decreased by 80.8% to Mex$7,729 million from Mex$40,210 million year-over-year [3] - Total costs and expenses rose by 15.5% to Mex$141,375 million, while EBITDA increased by 11.2% to Mex$92,409 million, resulting in an EBITDA margin of 39.5% [12] Revenue Breakdown - Service revenues reached Mex$198,540 million, up 13.4% year-over-year, while Equipment revenues rose 17.3% to Mex$32,911 million [4] - Colombia's revenue grew by 7.6%, driven by a 6.1% increase in service revenue, with mobile service revenue growth at 7.4% [7] - Argentina's revenues increased by 9.9% to ARS 633,865 million, supported by improved economic conditions [8] Subscriber Metrics - The company ended the quarter with 78 million revenue-generating units across fixed-line, broadband, and television platforms [5] - Brazil contributed the most to the postpaid subscriber growth with 1.4 million, while prepaid losses were primarily due to disconnections in Brazil, Chile, and Honduras [5][10] Regional Performance - Central America saw a revenue increase of 10.1% to $721 million, attributed to strong performance in Service and Equipment revenues [11] - Revenues from Austria, Brazil, Peru, and Mexico grew by 4.1%, 6.1%, 4.7%, and 4.7% respectively, while revenues from Ecuador and the Caribbean declined slightly [11]