Mexico’s America Movil says Tracfone deal helped triple quarterly net profit

1 min read
FILE PHOTO: Americal Movil corporate offices, in Mexico City

MEXICO CITY -Mexican telecommunications giant America Movil said on Tuesday its fourth quarter net profit more than tripled from the year-ago period, boosted by its sale of its TracFone wireless unit to Verizon Communications Inc.

The company, which is controlled by the family of Mexican billionaire Carlos Slim, posted a net profit of 135.6 billion pesos ($6.6 billion), compared with 37.3 billion pesos a year earlier.

America Movil’s revenues rose to 227.3 billion pesos from 211.15 billion pesos the year before.

The company closed the sale,in%20cash%20and%20Verizon%20stock of TracFone in November in a deal worth more than $6 billion in cash and Verizon stock.

Related News:   U.S. opens safety probe into 1.8 million Ford Explorer SUVs

EBITDA grew 16.6% in nominal terms to reach 89.8 billion pesos, slightly above analyst estimates.

America Movil said it added 4.8 million wireless subscribers in the quarter, bringing its total to 287 million subscribers, including 2.2 million postpaid customers.

The company also reported 72,000 new broadband additions.

($1 = 20.5075 pesos at end-December)

(Reporting by Daina Beth Solomon and Noe Torres; additional reporting by Cassandra Garrison; Editing by Aurora Ellis)