America Movil Plans Capex Cut Amid Economic Slowdown

America Movil's finance chief announced a reduction in capital expenditure to $6.7 billion for 2025 due to an economic slowdown. Meanwhile, the company reported a 39% rise in first-quarter net profit and is closely monitoring a telecoms law proposal by President Claudia Sheinbaum.

America Movil, the prominent Mexican telecoms giant, is set to decrease its capital expenditure to $6.7 billion in 2025, a slight reduction from the $7.1 billion planned for 2024. This decision comes amid a general economic slowdown, as conveyed by the company's finance chief, Carlos Garcia.

Garcia noted during an investor call that the current year's reduction would not impact future capex guidance. The company aims to achieve savings for the future, reflecting an intentional strategy amid fluctuating economic conditions.

On a related front, America Movil is also engaged with Mexican lawmakers over a proposed telecommunications law by President Claudia Sheinbaum, which has sparked debate over its implications for foreign government broadcasting and state control. The company recently announced a 39% increase in its first-quarter net profit, boosted by higher operating profits and lower financing costs.

(With inputs from agencies.)