UPDATE 1-Mexico's America Movil posts profit drop after currency slumps
(Adds details of results)
MEXICO CITY, July 16 (Reuters) - Mexico's America Movil on Thursday reported a 25.4 percent drop in second-quarter net profit compared to the same period a year earlier, hit by higher costs and foreign exchange losses.
The telecoms company, which is controlled by the family of billionaire Carlos Slim, said net profit in the April-June period was 14.05 billion pesos ($895 million), missing analyst expectations of 14.48 billion pesos from a Reuters poll.
The company posted a 12.9 billion-peso loss from exchange rate fluctuations as Latin American currencies slumped against the dollar in the quarter. Operating profit also fell due to higher costs.
In the past year, America Movil, which controls 70 percent of Mexico's mobile market, was banned from charging national roaming fees and a new law said it could not charge competitors for interconnection to its network.
The measures are part of a sector overhaul spearheaded by President Enrique Pena Nieto, who said in January that it was already bringing benefits to Mexicans.
The company said revenue growth rates in Mexico continue to slow, but the number of wireless clients still rose 1.9 percent compared with a year ago.
Earlier on Thursday Chief Executive Daniel Hajj said the company would offer some subscribers free calls to, and data in, the United States as well as invest $6 billion in its network in Mexico.
($1 = 15.695 pesos at end June) (Reporting by Christine Murray; Editing by Alan Crosby)
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