The Mexican telecommunications giant América Móvil He said he plans to decrease his capital investments this year, in an amount that he has not yet decided, while his shares shot up encouraged by the second-quarter financial results that surprised the market.
Shares of the jewel in the business empire of magnate Carlos Slim climbed 4.83% to 14.75 oxygenated pesos due to a jump in his quarterly earnings due to lower costs, which offset the economic vicissitudes caused by the pandemic of the coronavirus.
Still, some specialists believe that the outlook looks complex for the sector in the coming months due to the lower activity in its key markets caused by measures to try to contain the rate of contagion.
During a call with analysts, the company’s CEO, Daniel Hajj, said that América Móvil will reduce its capital investments this year from its initial estimates, although he did not specify the amounts.
“Our forecast for this year, yes, we are going to reduce it. Still, we don’t know exactly how much,” he said.
On the other hand, the executive said that the firm considers Huawei Technologies as an excellent provider of telecommunications equipment, but can use other providers if necessary.
Mobile service operators worldwide are trying to balance the Chinese company’s need for affordable and reliable equipment in the face of the United States campaign to prevent countries from using them.
Separately, América Móvil Content (AMCO), a subsidiary of the firm, announced an alliance with Verizon Media for the Mexican company to market the advertising solutions of the US in the Latin American country.