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MEXICO CITY, April 23 (Reuters) - Mexico’s America Movil on Thursday reported a 41 percent slump in first-quarter profit, missing expectations due to a foreign exchange loss mostly on the depreciation of the Brazilian real against the dollar.
The telecoms company, which is controlled by the family of billionaire Carlos Slim, said profit in the January-March period was 8.227 billion pesos ($539 million), compared to 13.887 billion pesos a year earlier.
It was hit by a 17.883 billion peso foreign exchange loss, which it said was mostly due to the depreciation of the Brazilian real against the dollar.
The drop in profit was despite a 13 percent jump in revenue, driven principally by the inclusion of Telekom Austria’s results.
Analysts had been expecting a higher net profit of 13.464 billion pesos, according to a Reuters poll.
Slim’s company is subject to a sweeping sector reform in Mexico, finalized last year, which forced it to share infrastructure and let rivals interconnect calls to its network for free.
The new laws are dragging on its service revenues, the company said on Thursday, but increased data and pay TV use across Latin America has blunted the effect of the reform on its results.
Shares in America Movil have risen around 4 percent since the beginning of the year, a little less than the 5 percent rise in Mexico blue chip IPC index. The shares are well above lows reached in 2013 and 2014 as the Mexico reforms were being passed.
$1 = 15.2610 pesos at end March Reporting by Christine Murray; Editing by Diane Craft