Slim's America Movil posts third-quarter loss, hurt by Colombia payment
FILE PHOTO - The logo of America Movil is pictured on the wall of a reception area in the company's corporate offices in Mexico City, Mexico, May 18, 2017. REUTERS/Edgard Garrido/File Photo
MEXICO CITY: Mexican billionaire Carlos Slim's America Movil on Tuesday reported a net loss of 9.55 billion pesos (US$525 million) for the third quarter, as its results were dragged down by a costly Colombian arbitration panel ruling.The company registered a profit of 2.12 billion pesos in the same quarter a year earlier.Revenues of 244.2 billion pesos for the quarter were down from 249.7 billion pesos during the same period last year.While the peso's depreciation took a toll, the company said the biggest factor in its loss was an 18.5 billion peso payment made as a result of the July ruling by the arbitration panel.The Colombian panel said America Movil and Spain's Telefonica failed to return installed telecommunication networks and infrastructure as part of agreements to provide cellular phone service in Colombia more than a decade ago.America Movil is challenging the ruling. Were it not for the payment, the company said it would have registered a net profit of 2.5 billion pesos.
Despite the lackluster financial results, America Movil touted its progress in nudging its business toward mobile data, widely viewed as one of its best hopes for growth. Revenue from mobile data climbed 24.3 percent from the previous year in Latin America, with an 8.5 percent increase in Mexico."In Latin America, mobile data revenues led the way," the company said in a statement accompanying its results.Natural disasters in Mexico and Puerto Rico hampered revenue growth, America Movil said. Services revenues plummeted 17.4 percent during the quarter in Puerto Rico, which was battered by Hurricane Maria, America Movil said.(US$1 = 18.1785 pesos as of Sept. 30)(Reporting by Julia Love, Noe Torres and Christine Murray; Editing by Phil Berlowitz and Cynthia Osterman)
Source : http://www.channelnewsasia.com/news/business/slim-s-america-movil-posts-third-quarter-loss--hurt-by-colombia-payment-9341330