America Movil SAB de CV Q4 FY2025 earnings call

• The U.S. government shutdown in the fourth quarter caused uncertainty, but the Fed reduced rates after the shutdown. The dollar depreciated vs most region currencies. - Added 2.5 million wireless subscribers, with postpaid and fixed line growth. - Postpaid base up 8.4% y-o-y, fixed line broadband accesses and PayTV had good performance. - Revenue, EBITDA, operating profit, and cash flow details provided, with free cash flow increasing significantly.

In the fourth quarter, América Móvil added 2.5 million wireless subscribers, with 2.8 million postpaid net gains and 298,000 prepaid losses, ending December with 331 million wireless subscribers. The postpaid base was up 8.4% year-on-year. Brazil led postpaid net adds with 644,000, followed by Colombia, Peru, and Mexico. In prepaid, Mexico, Argentina, and Colombia had new subscribers, while Brazil and Chile had losses. Fixed line connected 524,000 broadband accesses, with PayTV adding 77,000 units. Fourth quarter revenue rose 3.4% in MXN terms to MXN 245 billion (6.2% at constant exchange rates). EBITDA was up 4.2% in MXN terms to MXN 95 billion (6.9% at constant exchange rates). Operating profit was MXN 49 billion, net profit MXN 19 billion. Operating cash flow was MXN 213 billion, free cash flow MXN 82 billion (nearly 40% y-o-y increase), with shareholder distributions MXN 45 billion.

• CapEx target for 2026 and coming years is around 14%-15% of revenues, ~$6.8 billion to $7 billion. - Target to maintain 14%-15% over next 3 years depending on factors like spectrum. - Capital allocation focus: reducing debt to target net debt-to-EBITDA ratio of 1.3x-1.5x, returning cash to shareholders via buybacks/dividends, and preparing for potential M&A in Latin America.

• Impact of foreign exchange rates on results, debt, and cash flow due to multiple currencies. - Complexity of managing multiple currencies affecting leverage and financial metrics. - Uncertainty in Chilean market due to withdrawal from Telefonica deal, potential competitive landscape changes in Latin America.

Q: CapEx outlook for 2026 and coming years?

A: Target 14%-15% of revenues, ~$6.8 billion to $7 billion, similar for next 3 years depending on factors.

Q: Pretax nonoperating expenses?

A: Detailed explanation needed, company will provide details.

Q: Telefonica's sale in Chile, consolidation in Latin America?

A: Decided not to bid with Entel, Millicom won, focus on Chile operations, potential market consolidation.

Q: Capital allocation, impact of Chile consolidation on deleveraging?

A: Cash flow directed to deleveraging if no M&A opportunities.

Q: Impact of FX on results and cash flow?

A: Complex due to multiple currencies, managed by balancing capital allocation.

Q: Regulatory environment and consolidation in Latin America?

A: More consolidation expected, asymmetric regulation only in Mexico, good for business.

Q: Brazilian number portability drivers?

A: NuCel MVNO and overall strong performance contributing.

Q: Sustainability of broadband net adds in Mexico?

A: Good trend to continue with bundles and fiber penetration.