UPDATE 2-Slim's America Movil faces multiple tests after surprise loss

martes 20 de octubre de 2015 16:34 GYT
 

(Recasts with share price move, analyst reaction)

By Christine Murray and Tomás Sarmiento

MEXICO CITY Oct 20 (Reuters) - Mexico's America Movil faces tough challenges across all its biggest markets with weak Latin American currencies, tougher regulation and new competition contributing to its first quarterly loss in almost 14 years.

The region's biggest wireless and pay TV provider plans to cut capital expenditures and renegotiate with suppliers to help reduce currency exposure, top executives said on Tuesday. It also stepped up its rhetoric against regulations in Mexico.

Shares in the company, owned by the family of billionaire Carlos Slim, fell more than 2 percent in the wake of Monday's results.

A 45 billion peso ($2.7 billion) foreign exchange loss from tumbling Latin American currencies, tougher antitrust rules in Mexico and Colombia as well as recession in Brazil pushed America Movil to a surprise 2.884 billion peso loss in the third quarter.

Analysts had forecast in a Reuters poll that the company would post a 9.493 billion peso profit.

Chief Financial Officer Carlos Garcia Moreno said capital expenditures would be reviewed because the company was moving into a new phase after completing a five-year plan.

"I'm sure the capex in dollars (in 2016) is going to be less than what we had," CEO Daniel Hajj told analysts in a conference call. The company's planned 2015 capital expenditures were $10 billion, he said.   Continuación...