América Móvil's Q1 2025: Navigating Contradictions in Colombia, Chile, and Mexico's Economic Recovery

Investment in Colombia despite regulatory changes, América Móvil's focus in Chile, regulatory environment impact on Colombia operations, Chile's market strategy and economic conditions, and Mexico's economic recovery and impact on América Móvil are the key contradictions discussed in América Móvil's latest 2025Q1 earnings call.



Revenue and Exchange Rate Impact:
- América Móvil's revenue was up 14.1% year-on-year in Mexican pesos, totaling MXN232 billion.
- The increase was driven partly by currency appreciation, with the Colombian and Chilean pesos appreciating 18% and 14% respectively against the Mexican peso.

Subscriber Growth and Retention:
- América Móvil added 2.4 million postpaid subscribers in Q1, with Brazil leading with 987,000 clients, while prepaid saw 1 million net losses.
- The subscriber growth was driven by strong performance in Brazil and Mexico, despite prepaid disconnections in these countries due to economic factors.

Fixed Line and Broadband Expansion:
- The company connected 446,000 new broadband accesses, with Mexico being the main contributor, and broadband revenue grew by 9.8%.
- Broadband growth was fueled by network expansions and increased fiber-optic penetration, leading to higher customer retention and satisfaction.

Economic Impact on Consumer Spending:
- Prepaid ARPU in Mexico saw a decline due to reduced consumer spending amidst economic uncertainty, affecting customer recharge behavior.
- The slowdown in consumer spending in Mexico was attributed to factors like election uncertainties, rising interest rates, and public expenditure tightening.