AT&T breaks even in Mexico in Q1

AT&T México reported operating income of US$3mn in the first quarter compared to operating losses of US$30mn and US$43mn in the same period 2023 and 4Q23, respectively. 

For the full year 2023, the loss was US$141mn. 

First quarter revenues were up 20.4% year-over-year to US$1.06bn, due to favorable impacts of foreign exchange rates, higher equipment sales and subscriber growth. Equipment sales grew 27.7%. 

Operating expenses were up 16.1% due to higher equipment costs attributable to subscriber growth and changes in foreign exchange rates.

AT&T added 143,000 subscribers in Mexico during the quarter, of which 116,000 were postpaid. Reseller subscribers were down by 52,000. 

“We are committed to grow, despite the expensive radio spectrum and ineffective regulation. We are winning in the market thanks to initiatives such as AT&T Premium, with which we transformed the postpaid segment,” Mexico CEO Mónica Aspe said in a statement. “We are also closer to our prepaid customers, through new distribution channels.”

Churn was reduced by 24% compared to 1Q23.

The company ended March with 22.4mn wireless subscribers in Mexico, of which 1.7mn were prepaid, 5.3mn were postpaid and 365,000 from resellers.

In Latin America, AT&T only operates in Mexico.