America Movil plans $8.2bn in investments in 2023

America Movil, the Mexican telecommunications company owned by billionaire Carlos Slim’s family, has revealed plans to invest between $8 billion and $8.2 billion in 2023. The investment is expected to cover the expansion of fiber-optic networks, radio-frequency concessions, and digitalization.

The CFO of the company, Carlos Garcia, noted that the investment would be in line with the company’s $24 billion three-year investment plan. The company had invested about $7.9 billion in 2022, and this year’s investment could increase due to some budgeted expenses from 2022 being spent this year.

Despite the announcement, America Movil’s fourth-quarter profit declined by 90%, according to the company’s report. The decline was primarily due to currency headwinds and the deconsolidation of a Chilean subsidiary. The company’s results were impacted by “profitability pressures related to the inflationary backdrop that increased cost of service and (selling, general and administrative expenses),” analysts at Actinver said in a note.

During the call, America Movil’s executives revealed that the company is evaluating which countries will receive price hikes in 2023. The announcement has affected the company’s shares, which have fallen by around 2% on Mexico’s main stock exchange. Despite the current setback, America Movil’s investment plan is expected to aid the expansion of its services, making them more accessible to consumers.