AMX Reports Significant Profit Increase in Q3 2025

América Móvil (AMX.US) announced its financial results for Q3 2025, reporting a significant surge in net income and healthy revenue growth. The company posted total revenues of 232.9 billion Mexican pesos, marking a 4.2% increase year-over-year. Net income soared to 22.7 billion Mexican pesos, a substantial increase of 253.2% compared to the same period last year. Earnings per share (EPS) stood at 0.38 Mexican pesos, falling short of the analyst estimate of 0.36 US dollars when converted using the average exchange rate of 18.6398 Mexican pesos per US dollar for the quarter.

Strong Subscriber Growth and Service Revenue Expansion

The company demonstrated robust subscriber growth across its operations, adding over three million postpaid clients in Q3. Brazil was a key contributor with 1.5 million new postpaid subscribers, followed by Colombia, Peru, and Mexico. In the fixed-line segment, América Móvil gained 526 thousand broadband accesses, with Mexico leading with 211 thousand new accesses.

Mobile service revenue growth accelerated to 7.1% at constant exchange rates, primarily driven by stronger prepaid revenue growth of 3.9% and a 9.1% climb in postpaid revenue. Fixed-line service revenue increased 4.7% at constant exchange rates, despite a deceleration in corporate networks revenue. This segment's share of fixed-line service revenue has now reached 21%, highlighting its growing importance.

Operational Performance and Free Cash Flow

América Móvil's EBITDA totaled 93.8 billion Mexican pesos, representing a 4.9% increase in Mexican peso terms and 6.8% at constant exchange rates, with the EBITDA margin remaining stable at 40.3%. Operating profit reached 50.1 billion Mexican pesos, up 5.6% in nominal terms. The company's free cash flow in the nine months to September increased by 47.0% year-over-year, reaching 53.0 billion Mexican pesos.

This strong cash generation enabled significant shareholder distributions, including 10.8 billion Mexican pesos in share buybacks, and a reduction in net debt by 15.7 billion Mexican pesos. Net debt (excluding leases) stood at 454 billion Mexican pesos at the end of September, equivalent to 1.55 times Net Debt/LTM EBITDAaL.

Strategic Developments and Regional Highlights

The company successfully returned to the euro market with a 5-year 650 million euro bond, achieving the second tightest spread for a telecom company in this tenor over the last two years. Regionally, Brazil’s operations saw mobile service revenue climb 8.0%, and a strategic partnership with OpenAI was announced to integrate ChatGPT into Claro’s service offerings. In Central America, América Móvil launched 5G services in Costa Rica, enhancing connectivity and driving digital transformation in the region, with service revenue up 10.9%.

Peru secured an additional 100 MHz of spectrum in the 3.5 GHz band for its 5G network, which currently covers 12 major cities, aiming to further increase coverage and speed. Argentina’s economy continued its recovery, with GDP growing 8.5% year-over-year, contributing to Claro’s service revenue increase of 11.9% in after-inflation terms.