Wednesday, Aug 10, 2022
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American Movil records 80% profit surge, to spin off mobile tower infrastructure

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American Movil’s base of postpaid subscribers recorded 1.3% y-o-y growth in the core Mexican market, while the prepaid base grew 1.1%

Mexican telecom major American Movil is all set to spin off their mobile tower infrastructure across Latam, media reports said. The move by the company will pave the path for them to ramp up the tower value, with a separate unit to focus on the development of its passive network elements.

The development is expected to be completed this year including the pending shareholder and regulatory approvals. Furthermore, the company’s profit surged 80 percent at the time of the development’s announcement. The net profit surged from ₱20.8 billion last year to ₱28.3 billion this year. However, there wasn’t a significant surge in postpaid mobile subscribers.

American Movil’s base of postpaid subscribers recorded 1.3 percent year-on-year growth in the core Mexican market, while the prepaid base grew 1.1 percent. The company added 1.2 million subscribers by 2020 end.

The company, told the media, “We added 6.8 million wireless subscribers in the quarter, double the number in the previous quarter, including 2.7 million mobile postpaid subscribers.”

American Movil has ramped up its stake from 16 percent to 20 percent in Dutch operator KPN. The company tried to take over KPN seven years ago, however, the Dutch government along with KPM’s board members didn’t allow them to carry out the development.

American Movil’s stake in the Dutch company during 2013 was 30 percent but has been gradually slumped over subsequent years.  The fresh interest in KPN could be the indication of the company’s low valuation towards the 2020 end.

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