America Movil SAB de CV Q4 FY2024 earnings call

• Interest rates: U.S. 10-year treasury yields spiked due to revised Fed rate cut expectations. Currencies in the region depreciated vs dollar, with Brazilian real worst at 13.7% decline. - Subscribers: Added 2.1M postpaid, 1.3M prepaid disconnections. - Fixed line: 320k broadband accesses. - Financials: Revenue up, operating profit higher, but net income lower due to higher financing costs.

In the fourth quarter, América Móvil added 2.1 million postpaid subscribers, with Brazil contributing 655,000, Colombia 178,000, and Mexico 141,000. On prepaid, there were 1.3 million net disconnections, with Brazil having minus 1.8 million after a cleanup, while Mexico gained 302,000, Central America 196,000, etc. The fixed line segment obtained 320,000 broadband accesses. Fourth quarter revenue was up 18% in Mexican peso terms to MXN237 billion, service revenue 19.1%, EBITDA 16.4%. Operating profit was MXN46.4 billion, 11% higher year-on-year. Net income was MXN9.5 billion, 47.5% lower y-o-y. Net debt ended at MXN488 billion, excluding capitalized lease obligations.

• CapEx: Still on track with 3-year guidance, with Chile's CapEx still being finalized. - Revenue growth: Expect continued growth in fixed and mobile segments, with corporate segment growing around 12.3%.

• Currency depreciation: Substantially all region currencies depreciated vs dollar. - Economic slowdown: Affecting prepaid recharges in Mexico.

Q: Specific CapEx guidance for this year and details on MVNO deal with Nubank?

A: On CapEx, still on 3-year guidance with Chile's CapEx being finalized. On Nubank, not worried about cannibalization.

Q: Follow-up on CapEx and satellite testing?

A: CapEx on track, still on 3-year plan. Satellite testing for backbone in rural areas, not direct to phone.

Q: Mexican broadband pricing and M&A in Argentina?

A: In Mexico, not seeing price increase, launching unique packages. No M&A talks in Argentina yet.

Q: Mexican broadband pricing outlook and M&A in Argentina?

A: In Mexico, not increasing prices, adding value to connectivity. No M&A talks in Argentina.

Q: Mexico regulatory environment and Telmex broadband targets?

A: Regulatory environment being monitored. Telmex aims to win 2M broadband lines, feasible but dependent on economy.

Q: Cloud and corporate networks growth and pension plan outlook?

A: Corporate network growing 12.3%, confident in future growth. Pension plan outflows expected to decline.

Q: Shareholder remunerations outlook and Brazil mobile market?

A: Outlook for free cash flow expansion, Brazil mobile market well-positioned with good network and market share.

Q: Brazil mobile competition and debt profile?

A: Competition in Brazil, compete on quality not just price. Debt profile: net economic exposure around 60% to local currency.

Q: Chilean operation disclosure and CapEx budget for 2025?

A: Will begin reporting Chilean results next quarter. CapEx for Chile in 2025 around $250 million.

Q: Mexico MVNO competition and equipment sales trend?

A: Walmex is a strong competitor. Equipment sales revenue reduced due to economy and dollar movement.