What is driving America Movil SAB de CV ADR Series L (NYSE: AMX) Stock

Free $100 Forex No-Deposit Bonus

America Movil SAB de CV ADR Series L (NYSE: AMX) Stock rose over 6.9% on 15th July, 2020 and continued its pre-market session on July 16th, 2020 (Source: Google finance) post decent second quarter of 2020.

The firm’s second quarter revenue rose to MXN252 million, while EBITDA rose 5.9% yoy to MXN82.6 billion. Operating profit rose 10.5% yoy to MXN40.9 billion while net profit reached MXN20 billion during the second quarter, after allowing for financing costs of MXN11 billion, which were 6.3% lower than in the year-earlier quarter. Net profit rose 40% yoy to MXN0.30 per share and $0.26 per ADR. The firm’s Seating segment, won 450,000 new Probank clients with every operation porting and increasing clients, except for Telekom Austria. Fixed broadband services revenues rose 7.3%, with less mature fixed-line operations, including those in Ecuador, Peru, Argentina and Costa Rica performing well, with the pace of growth picking up speed. However, service revenues fell 2.1% in Mexico as mobile service revenues falling from 10% growth pace in the first quarter.

Postpaid revenues in Brazil witnessed a 11.8% rise on yearly quarter. There has been deceleration in mobile revenue growth. In Mexico the group has more than 50% of the service revenue in prepaid and 40% on postpaid. In Brazil, the firm has only 20%, 25% of their revenues are prepaid while the rest in postpaid. In Brazil, postpaid in the first quarter, revenues were growing 15% on a year-over-year basis. The group’s Latin America margins improved from a better service revenue. The firm is also moving a lot more to the digital, while cutting expenses.

The firm’s net debt totaled MXN765 billion during the second quarter of 2020, which is a rise as compared to MXN677 billion at the close of 2019.  The firm also cut its net debt by MXN8.3 billion in the six months to June.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.