Mexican telecommunications giant America Movil missed analysts' expectations for second-quarter earnings and reported a net loss due to the depreciation of the local peso, the company announced on Tuesday.
The company, controlled by the family of Mexican billionaire Carlos Slim, reported a net loss of 1.09 billion pesos ($60 million). In the same period last year, the company achieved a net profit of nearly 26 billion pesos.
According to estimates by analysts surveyed by LSEG, the company's net profit in dollar terms was $1.06 billion, with revenue of $12.09 billion.
The company stated that currency volatility increased after presidential candidate Claudia Sheinbaum won last month.
"The Mexican peso was previously able to withstand fluctuations in US interest rates but depreciated sharply after the Mexican presidential election on June 2," said America Movil in documents submitted to the Mexican Stock Exchange.
"After months of appreciating against the dollar and almost all currencies in our operating region, the Mexican peso depreciated against all these currencies," the document added.
As of the end of June, the peso had fallen 7% against the dollar compared to a year ago. It has since recovered somewhat.
However, the company's revenue grew 1.5% to 205.52 billion pesos ($11.24 billion).
America Movil stated that its core profit, or earnings before interest, taxes, depreciation, and amortization (EBITDA), grew nearly 6% in the quarter to 83.1 billion pesos.
