PREVIEW-Slim’s America Movil seen with 17 pct dip in net

* WHAT: America Movil’s second-quarter results

* WHEN: Thursday, July 22

* REUTERS FORECAST: Net profit seen down 17 pct

MEXICO CITY, July 20 (BestGrowthStock) – Latin American wireless
telecom America Movil will likely post a 17 percent dip in
second-quarter net profit as foreign exchange losses offset
healthy additions of new clients.

America Movil (AMXL.MX: ) (AMX.N: ), controlled by billionaire
Carlos Slim, probably had net earnings of 18.695 billion pesos
($1.44 billion) in the April-June period, according to the
average estimate of seven analysts consulted by Reuters.

America Movil, which operates across Latin America, the
United States and the Caribbean, is expected to have signed up
4.48 million new clients in the second quarter, up from the
same period a year ago.

Brazil is expected to have led growth in the second
quarter, but the telecom is also seen showing strong client
expansion in its U.S. Tracfone operation.

After years of fast growth, wireless penetration in much of
Latin America is increasing and cellphone operators are looking
to new services like data to bolster their sales expansion.

Weighing on America Movil’s bottom line, Mexico’s peso
weakened slightly in the second quarter, making it more
expensive for companies to pay debt in dollars.

In June, America Movil moved to acquire dominant Mexican
fixed-line Telmex (TELMEXL.MX: ) and regional fixed-line operator
Telmex Internacional (TELINTL.MX: ), both of which Slim had
majority owned, in a bid to improve efficiencies as competition
heats up in the Latin American telecommunications sector.

2010 2009 PERCENTAGE

Revenue 102.239 bln 94.016 bln +8.75 pct
EBITDA* 43.483 bln 39.338 bln +10.54 pct
Operating profit 30.658 bln 28.002 bln +9.48 pct
Net Profit 18.695 bln 22.507 bln -16.94 pct
Net adds 4.48 mln 3.70 mln

Stock Market Advice

($1 = 12.94 pesos as of end-June)
(Reporting by Noel Randewich, editing by Gerald E. McCormick)

PREVIEW-Slim’s America Movil seen with 17 pct dip in net