América Móvil Surges Back to Profit in Q2, Signaling a Strong Comeback for Latin America’s Telecom Sector
América Móvil reports a major Q2 profit turnaround for 2025, driven by strong mobile growth, broadband expansion, and 5G investments across Latin America.
NewsSutra
Mexico City – América Móvil, the Latin American telecom giant controlled by billionaire Carlos Slim, reported a major financial rebound in the second quarter of 2025, marking a pivotal return to profitability after recent quarters of sluggish growth and currency-related headwinds. The company posted robust earnings for Q2, driven by improved operating margins, strong mobile data usage, and sustained recovery across key Latin American markets.
The turnaround comes at a time when the regional telecommunications industry is experiencing renewed investor confidence, following years of pandemic-induced disruption, inflation pressures, and regulatory uncertainty. América Móvil’s Q2 earnings not only exceeded analyst expectations but also positioned the firm as a bellwether for economic stabilization across Latin America.
Q2 2025 Highlights: Net Income and Revenue Growth Outpace Forecasts
According to América Móvil’s official earnings report released on Tuesday, the company recorded a net profit of $1.7 billion (approx. ₹14,160 crore) for the quarter ending June 30, a substantial reversal from the net loss of $420 million reported during the same period last year. Total revenue for Q2 climbed to $12.9 billion, reflecting a year-over-year increase of 7.2%.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) also showed solid improvement, growing 9.4% to $5.2 billion, aided by cost control strategies and steady customer growth in mobile services.
“The second quarter reflects the resilience of our operations across Latin America,” said Daniel Hajj, CEO of América Móvil, during a quarterly investor call. “We’ve seen strong customer engagement, especially in mobile data and prepaid segments, and our investments in network modernization are beginning to yield tangible results.”
Mobile Subscriber Growth and 5G Expansion Lead the Way
A key contributor to the earnings recovery was the continued growth in mobile subscribers, particularly in Mexico, Brazil, and Colombia. América Móvil added nearly 4.5 million new wireless customers in Q2, pushing its total subscriber base across the region to over 320 million.
The mobile division accounted for nearly 60% of América Móvil’s total revenue, with data usage per customer rising by 14% compared to the same quarter in 2024. Analysts credit this growth to expanded 4G coverage, competitive data packages, and aggressive promotional campaigns in rural and underserved areas.
The company also made significant strides in rolling out 5G services across major urban centers in Latin America. Mexico City, São Paulo, Lima, and Bogotá saw continued infrastructure investments, with América Móvil committing to expanding its 5G footprint to at least 45 new cities by the end of 2025.
In Brazil, the company's subsidiary Claro remains a market leader in 5G deployment, with improved latency and download speeds helping retain high-value postpaid users. The increase in average revenue per user (ARPU) across mobile services is viewed as a strong indicator of customer satisfaction and brand loyalty.
Fixed-Line and Broadband Services Show Renewed Strength
Beyond mobile, América Móvil’s fixed-line and broadband services also rebounded after a muted performance last year. The company saw broadband subscriber growth of 5.8%, driven by demand for high-speed internet in both residential and small-business sectors.
Fiber-to-the-home (FTTH) expansion projects in Argentina, Ecuador, and Chile have been progressing ahead of schedule. This has allowed the company to offer faster internet packages and bundle options that are increasingly appealing to users transitioning to hybrid work models and remote education.
Telefónica’s previous market dominance in some of these regions has also waned, providing América Móvil with an opportunity to reclaim market share. As a result, broadband revenue rose 6.3% quarter-over-quarter, with Brazil and Peru emerging as key growth markets.
Currency Volatility and Regional Headwinds Stabilizing
One of the factors that previously weighed heavily on América Móvil’s earnings was the volatility of Latin American currencies, particularly the Mexican peso and Brazilian real. However, Q2 2025 saw relative stabilization in foreign exchange markets, aided by improved monetary policy coordination and reduced inflation in several countries.
This provided a tailwind for América Móvil’s operations, as most of its revenue is denominated in local currency while debts and equipment purchases are often tied to the U.S. dollar. With fewer FX losses, the company's financials saw greater stability and transparency.
The firm also reported reduced capital expenditures in Q2, attributing the decline to a more efficient rollout of infrastructure and network upgrades. Capex stood at $1.4 billion, down from $1.7 billion in Q2 2024, without sacrificing service quality or coverage targets.
Investor Confidence Returns, Stock Rallies on Earnings Beat
Following the earnings announcement, América Móvil’s shares jumped over 8% on the Mexican Stock Exchange, with similar gains observed in its ADRs traded in New York. Investor sentiment has grown more optimistic as the telecom leader outperforms expectations amid a tough macroeconomic backdrop.
Equity analysts from several major firms have revised their price targets upward, citing América Móvil’s disciplined cost structure, subscriber momentum, and early-mover advantage in 5G. “The Q2 beat proves that AMX is well-positioned to capture post-pandemic demand in Latin America,” noted one analyst.
Institutional investors are also returning to Latin American telecoms, viewing them as undervalued sectors with high growth potential. América Móvil, with its diversified operations across 18 countries and strong brand recognition, stands out as a preferred pick for long-term portfolios.
Challenges Remain: Regulation and Market Competition
Despite the strong performance, América Móvil is not without challenges. Regulatory scrutiny in several markets continues to cast a shadow on expansion plans. In Mexico, the Federal Telecommunications Institute (IFT) is still reviewing América Móvil’s request to offer pay-TV services through its Telmex unit, a move that could disrupt the broadcasting landscape.
Competition from low-cost MVNOs (Mobile Virtual Network Operators) has also increased in countries like Colombia and Chile, where aggressive pricing models threaten to erode market share in the prepaid segment.
Furthermore, continued inflation pressures and the risk of political shifts in key markets such as Brazil and Argentina could complicate long-term planning. However, América Móvil’s management appears confident in its ability to navigate these dynamics through diversification, innovation, and local partnerships.
Looking Ahead: A Positive Outlook for 2025 and Beyond
With two strong quarters under its belt in 2025, América Móvil is setting its sights on continued regional dominance. The company plans to expand its digital services portfolio, including cloud storage, cybersecurity, and fintech products aimed at both individual and enterprise customers.
América Móvil is also exploring opportunities in satellite-based broadband delivery, especially in remote regions where terrestrial infrastructure remains inadequate. Strategic partnerships with local governments and tech firms are under consideration to enhance connectivity in education and healthcare sectors.
As Latin America continues to embrace digital transformation, América Móvil’s infrastructure, brand equity, and subscriber base give it a solid foundation to lead the telecom renaissance in the region.
Conclusion
The Q2 2025 results mark a significant turnaround for América Móvil and shine a light on the broader revival of the Latin American telecommunications industry. As the company leverages growth in mobile, broadband, and next-gen networks, it stands not just as a telecom provider but as a key player in the continent’s digital future.
With strong leadership, strategic investments, and growing market confidence, América Móvil’s resurgence underscores a larger narrative: Latin America's connectivity revolution is no longer a distant dream—it’s happening now.
