America Movil SAB de CV Q3 FY2024 earnings call

• Interest rates in the US and other countries had trends; Fed had first discount rate reduction in 2.5 years. Central Bank discount rates fell in some countries and rose in Brazil. - Added 1.8 million subscribers, with postpaid and prepaid segments having net additions. Fixed line segment had broadband connections and disconnections. - Third quarter revenue MXN223 billion, service revenue and EBITDA grew. Operating profit MXN47.4 billion, up 14.2% MXN and 10% constant exchange rates. Net profit MXN6.4 billion. Net debt ended September at MXN433 billion. CapEx totaled MXN86.7 billion in nine months. Received third ESG rating upgrade by MSCI.

In the third quarter, America Movil added 1.8 million subscribers, with 1.4 million postpaid. Mobile postpaid had 5.9% year-on-year growth, and fixed broadband had 5.2% year-on-year growth. Third quarter revenue totaled MXN223 billion, with service revenue expanding 11.3% in Mexican peso terms and EBITDA 11.9%. At constant exchange rates, service revenue was up 5.5% year-on-year, and adjusted EBITDA increased 7.3%. The prepaid segment had 468,000 net additions, and the fixed line segment connected 327,000 broadband accesses while disconnecting 83,000 landlines and 30,000 PayTV units.

• CapEx target for 2024 still on track at around $7.2 billion. - No change in CapEx or shareholder remuneration plans as reviewed.

• Competitive dynamics in fixed broadband market in Mexico, with Telmex being reactive. - Currency impacts on net debt and financial obligations. - Market competition affecting subscriber additions and churn in some regions.

Q: Updated views on competitive dynamics of fixed broadband market in Mexico?

A: Oscar von Hauske mentioned Telmex is reactive with investments, America Movil has upgraded network, launched new packages, and B2B market is doing well.

Q: CapEx guidance for 2024?

A: Carlos Garcia Moreno said on target at around $7.2 billion.

Q: Macro outlook and 2025 outlook?

A: Daniel Hajj said prepaid depends on economy, postpaid doing well. Carlos Garcia Moreno said prepaid revenues growth stable, postpaid holding up.

Q: Partners in connecting customers' phones to satellite constellations?

A: Oscar von Hauske mentioned using Star One, Starlink, SpaceX, AST.

Q: Broadband dynamics in Mexico and Brazil?

A: Marcelo Santos asked about net adds and competition, Carlos Garcia Moreno and Daniel Hajj discussed churn in Mexico and Brazil's leading position in broadband.

Q: Debt strategy and FX impacts?

A: Carlos Garcia Moreno said focusing on local currency refinancing, maintaining leverage.

Q: CapEx plans for Chile?

A: Carlos Garcia Moreno said consolidating Chile, CapEx not changing significantly.

Q: Shareholder remuneration and CapEx after currency depreciation?

A: Daniel Hajj said no change in CapEx or shareholder remuneration.

Q: Colombia service revenue growth and Brazil pricing dynamics?

A: Carlos Garcia Moreno and Daniel Hajj discussed growth in Colombia and focus on upselling in Brazil.

Q: Argentina fixed revenue and 5G plans?

A: Daniel Hajj discussed Argentina's broadband growth and mobile network upgrades.