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MEXICO CITY, Feb 10 (Reuters) - Mexican telecoms giant America Movil, which is controlled by the family of billionaire Carlos Slim, plans to cut its capital expenditure by at least one-fifth in 2016, its chief executive said on Wednesday.
“It’s going to depend on a lot of things that we don’t have clear today...but as I said, at least we can reduce it 20 to 25 percent,” Chief Executive Daniel Hajj said on an analyst conference call.
The total capital expenditure could be between $7.5 billion to $8 billion, he added.
America Movil also said its 2016 share buyback fund would total around 29 billion pesos ($1.55 billion), as it had 17 billion pesos left in its buyback fund from last year in addition to the 12 billion pesos it proposed putting in on Tuesday.
Shares in the company were down 3.9 percent to 12.07 pesos after the call following its fourth-quarter results on Tuesday showing a further narrowing of margins in its largest market Mexico.
The company is feeling the effects of a sweeping regulatory reform in Mexico aimed at curbing its dominance at home that has pushed down prices and squeezed the company’s profit margin.
In March, telecoms regulator IFT will review the measures currently in place against the company. Hajj said he was optimistic about the review and that he thinks it should be good for America Movil. ($1 = 18.7497 Mexican pesos) (Reporting by Christine Murray Editing by W Simon)