© Reuters. The brand of America Movil is pictured on the wall at a reception space within the firm’s company places of work, in Mexico Metropolis, Mexico January 25, 2022. REUTERS/Gustavo Graf
By Cassandra Garrison and Sarah Morland
MEXICO CITY (Reuters) – Mexican telecommunications big America Movil (NYSE:) stated on Wednesday it anticipated capital expenditure of round $7 billion this yr, following years of serious spending on shopping for spectrum and refreshing its community infrastructure.
This compares to spending of $8.6 billion in 2023.
In a name with analysts, finance chief Carlos Garcia stated the decreased capex was the results of important prior spending on wi-fi infrastructure. This yr, Garcia stated, the agency’s solely important spectrum spend needs to be in Ecuador.
The capex adjustments will permit for a greater finances on America Movil’s broadband operations, he stated, noting that clients had been reacting effectively to combining web packages with membership to streaming platforms.
Garcia added that the corporate plans to maintain its holding in Telekom Austria (OTC:) and sees additional progress within the European nation, and that the agency deliberate to take care of its Colombian investments, regardless of regulatory adjustments there.
The decision follows America Movil’s fourth-quarter outcomes, during which it posted a better-than-expected internet revenue of over $1 billion, whilst a stronger peso diluted abroad revenues overseas and it confronted sky-high inflation in Argentina.
The agency was helped by market share positive factors in Brazil, the place Garcia stated the corporate would look to hike its costs if there is a chance to take action.