Mexican telecoms giant America Movil targets steady growth, holds capex at $7 billion

MEXICO CITY, May 27 (Reuters) – Mexican telecommunications giant America Movil on Wednesday outlined its financial outlook through 2028, according to a J.P. Morgan analyst note, targeting steady growth in revenue and core earnings while holding capital expenditure stable at around $7 billion per year.

The firm’s investor day event was closed to press. A spokesperson for America Movil did not immediately respond to a request for comment confirming the figures.      

• At an investor presentation in New York, the company projected that its revenue from services will grow by an average of 4.0% to 5.0% each year from 2026 to 2028. Earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to increase between 4.5% and 6.0% annually over the same period.

• The Latin American market leader plans to hold its capital spending at around $7 billion per year, totaling $21 billion over the three-year period. Executives said this level of investment is possible because the company has already completed most of its costly purchases of radio frequencies for its 5G network.

• The stable spending plan is expected to generate significant cash, which America Movil said it will use to buy other companies, pay down its debt and return money to investors.

• Company executives confirmed they are actively looking for acquisition opportunities, highlighting struggling internet providers in Brazil and telecom operators in Eastern European countries like Serbia and Slovenia.

• For key markets like Brazil and Colombia, management stated an “aspiration to join the club of 50,” referring to a long-term goal of achieving a 50% profit margin.

(Reporting by Kylie Madry; Editing by Brendan O’Boyle)