FILE PHOTO: The logo of America Movil is displayed on a wall in a reception area at the company’s offices in Mexico City, Mexico, on May 18, 2017. REUTERS/Edgard Garrido/File Photo
MEXICO CITY (reuters) – America Movil, Mexico’s largest telecommunications provider, to shed light on its plans for the roll-out of 5G-technology-in-Latin-America on Wednesday, as the company’s shares rose on a strong earnings report.
America Movil shares rose as much as 6% to 16.72 pesos, the highest close since July of 2018. The company, controlled by the family of Mexican billionaire Carlos Slim, reported a 63% rise in fourth-quarter net profit on Tuesday, helped by lower expenses and strong gains in the post-paid customers.
By 2020, America Movil will focus on the roll-out of 5G technology in the Latin America region, Chief Executive Daniel Hajj said on a call with analysts. The technology is likely to debut in Mexico this year, and Brazil, depend on the availability of the spectrum, the Author will be added.
“We’ve just come in to Austria for our 5G network,” the Author said. “And we’re going to do that all around the Latin America in the second half of the year.”
The company anticipates that the investment of $8.5 billion for the year, on a par with the previous year, Hajj said. The investment will be focused on the implementation of fiber optics in Mexico, Colombia, Brazil, and other markets, Hajj said.
The Hajj also expressed optimism about the prospects for America Movil’s U.S. subsidiary, TracFone, T-Mobile US, Inc. – acquisition of Sprint Corp. (a) progress as well. A federal judge approved the deal on Tuesday.
“It’s good for a TracFone – it’s good to have all this consolidation in the market,” Hajj said.
In a note to investors, investment bank, Barclays capital, welcomed America Movil profits in the lucrative post-paid customers during the quarter, as well as a better profitability in the market, such as Colombia, Peru, and the United States of america.
Reporting by Julia Love; Editing by Richard Chang