America Movil Earnings: A Focus on Customer Additions Has Lifted Growth but Not Cash Flow

America Movil delivered solid revenue growth across most markets during the first quarter, including Mexico and Brazil, the firm’s most important operations. Reported service revenue increased for the first time since mid-2022, increasing 1.1% versus the prior year. Absent currency movements, service revenue would have increased by 5%, accelerating from less than 4% during the second half of 2023. Cash generation remains disappointing, however. Our fair value estimate remains $21 per ADR.