UPDATE 2-America Movil profit drops on higher tax and forex loss

jueves 23 de octubre de 2014 19:58 GYT

(Updates with regional data)

By Christine Murray

MEXICO CITY Oct 23 (Reuters) - Mexico's America Movil said on Thursday its third-quarter net profit fell 38 percent compared with a year earlier, missing expectations as taxes and exchange rate losses rose.

The company, which is controlled by the family of billionaire Carlos Slim, said net profit in the July-September period fell to 10.12 billion pesos ($754 million) from 16.38 billion pesos a year earlier.

America Movil's tax burden rose by 4.43 billion pesos versus the same quarter last year, while it posted an exchange rate loss of 8.97 billion pesos.

Analysts had expected the company to report a net profit of 16.47 billion pesos, according to a Reuters poll. Earnings before interest, tax, depreciation and amortization were slightly above expectations.

Revenue rose 14 percent to 220.884 billion pesos, principally due to the consolidation of Telekom Austria, of which it now owns almost 60 percent, into the results for the first time.

America Movil is in the midst of a regulatory crackdown in its home market, which began to drag down its results last quarter, particularly in wireless voice revenues.

The new zero interconnection rate for traffic from other operators drove a 5.5 percent drop in Mexico wireless service revenues in the third quarter, the company said.   Continuación...