America Movil SAB de CV Q2 FY2025 earnings call

• Revenue: Second quarter revenue in MXN 234 billion, 13.8% YOY increase; at constant exchange rates, 7.9% increase over 12 years. Service revenue growth 7.3%, equipment revenue 12.5%. - Client Additions: Added 2.9 million postpaid clients, gained 1.7 million wireless subscribers overall. Fixed line gained 462,000 broadband accesses. - Exchange Rate: U.S. dollar fell against most currencies in the region; Mexican peso terms revenue up, but constant rates show strong performance. - EBITDA and Profit: EBITDA MXN 92.4 billion, up 11.2% YOY; net profit MXN 22.3 billion. Net debt fell by MXN 7.3 billion in 6 months to June.

In the second quarter, América Móvil's segment performance included: Mobile platform - Added 2.9 million postpaid clients, with Brazil contributing 1.4 million, Colombia 199,000, and Mexico 102,000. Postpaid service revenue expanded 9.5%. Prepaid revenue growth recovered to 3.1% from 0.9% in the preceding quarter, with Mexico's prepaid ARPU climbing 2.2% after a 2.2% decline in Q1. Fixed line segment - Gained 462,000 broadband accesses, including 231,000 in Mexico. Corporate networks revenue and PayTV revenue were up 15% and 10.1% respectively, while broadband revenue decelerated to 8.2% from 9.8%. Revenue in Mexican peso terms totaled MXN 234 billion, a 13.8% YOY increase, and at constant exchange rates, there was a 7.9% increase over 12 years.

• CapEx: On target for full year around MXN 6.7-6.8 billion. - Mexico Economy: Expecting better quarters ahead as Mexico's economy starts to grow. - Labor Obligations: No major changes expected in labor obligations outflow compared to last year, as payments vary by quarter.

• Uncertainty: U.S. tariffs created uncertainty impacting currency and market conditions. - Regulatory: Telecom law changes with new obligations and potential fines. - Litigation: Litigation provision in Colombia affecting margins, with ongoing payments until end of year.

Q: Comment on Brazilian mobile environment and revenue acceleration, regulatory changes in Mexico.

A: Discussed Brazil's strong postpaid performance, Claro Flex, Nubank partnership, and Mexico's telecom law changes including new regulators, increased fines, spectrum terms, and obligations.

Q: Outlook for Mexico, CapEx target.

A: CapEx on target, Mexico's economy starting to grow, competition in market.

Q: Labor obligations and litigation in Colombia.

A: Labor obligations vary by quarter, Colombia litigation case closed with payments through end of year.

Q: Brazil prepaid, Mexico broadband, lease expenses.

A: Brazil prepaid trends, Mexico broadband acceleration due to sales force and streaming platform, lease expenses tied to currency and inflation