MEXICO CITY (Reuters) -Mexican telecommunications giant America Movil (NYSE:AMX) said it is investing in 5G across its markets as it remains on track to implement its $7.1 billion capital expenditure plan set for this year.
The company had in February warned of reduced spending following years of significant output on buying spectrum and refreshing its network infrastructure. Last year it spent $8.6 billion.
This comes a day after America Movil showed first quarter net profit down 55% year on year, weighed by a stronger peso and lack of extraordinary income from selling cell phone towers, as it had done in the same quarter a year earlier.
The peso appreciated over 8% to the U.S. dollar over the first three months of 2024, after sweeping gains last year diluted the earnings of Mexican companies earning income abroad.
Quarterly net profit landed below forecasts by analysts at J.P. Morgan, which it attributed to lower-than-expected results across several regions, a ransomware attack and much lower results in Argentina.
Strong results in key markets Brazil and Mexico helped push growth past forecasts in terms of revenues and core earnings, however, the analysts said.
Looking forward, America Movil said Peru would be a focus this year, after launching a new data center in the country in January.