AMX

Macroeconomic Context

• Geopolitical conflict has kept oil prices roughly 70% higher than pre-war levels, driving global inflation expectations and higher long-term interest rates, with 30-year U.S. Treasury yields hitting a 20-year high
• The U.S. dollar depreciated 6% against the Colombian peso in the quarter; the Mexican peso appreciated 12% against the U.S. dollar and 9% against the euro

Customer Growth & Operational Performance

• Net customer growth is led by mobile and fixed broadband, with both segments accelerating year-over-year
• 5G network leadership across Latin America is cited as a key competitive advantage driving subscriber and revenue gains
• Prepaid subscriber growth has strengthened in Mexico, with accelerating revenue growth driven by higher average recharges and growing active recharging base
• AI adoption across operations is an ongoing long-term initiative to reduce costs and improve customer insight, supporting EBITDA growth outpacing revenue growth

Capital Structure & Capital Allocation

• H1 2026 capital expenditures totaled 48 billion pesos; share buybacks totaled 4.6 billion pesos, and labor obligation prepayments totaled 8.4 billion pesos
• Net debt was reduced by 30.9 billion pesos in H1; net debt (excluding capital lease obligations) ended Q2 at 1.31x last twelve months EBITDA, within the company's 1.2x-1.5x target range
• The company maintains a balanced approach to capital allocation: pursuing accretive fiber-focused acquisitions, returning capital to shareholders, and reducing net debt
• The recently announced WOW acquisition in Peru adds over 3 million passed fiber homes and 500,000 existing customers, complementing the company's existing network and creating cross-selling opportunities for mobile and business services

• Full-year capital expenditure is maintained at the prior $7 billion target, with only minor variation expected; a weaker U.S. dollar does not reduce capex needs, as it increases the peso cost of U.S. dollar-denominated capex spending
• Net debt will continue to be managed within the existing 1.2x-1.5x net debt to EBITDA target range, with no changes to this leverage policy
• No formal changes to full-year earnings guidance were provided, but management noted Brazil revenue growth has improved sequentially from 1.5% to 4.1% YoY despite near-term competitive promotional activity, and they expect long-term performance to remain strong

Overall: Q2 2026 total revenue grew 3.1% YoY to 241 billion Mexican pesos; service revenue grew 3.4% YoY, EBITDA grew 8% YoY, operating profit grew 9.5% YoY to 51.8 billion Mexican pesos, and net income grew 9.2% YoY to 24 billion Mexican pesos. At constant exchange rates, service revenue grew 5.1% and EBITDA grew 5.3% (would have been 6.7% without a one-off charge in Mexico). Mobile segment: Mobile service revenue grew 6.5% YoY, maintaining multi-quarter growth momentum. Mobile prepaid revenue growth accelerated to 5.3% YoY (up from 3.1% YoY a year prior), and overall mobile posted revenue expanded 7.2% YoY. The segment added 3.5 million net new prepaid subscribers in Q2, with Brazil leading at 1.5 million new subscribers, followed by Colombia (250,000), Peru (173,000), Argentina (154,000), and Mexico (101,000). Mobile mobile accesses grew 9.1% YoY, faster than prior periods. Fixed-line segment: Fixed-line service revenue growth accelerated to 2.7% YoY, ending a prior downward growth trend. The segment added 531,000 net new broadband accesses, with Mexico the largest contributor (170,000), followed by Brazil (83,000) and Colombia (74,000). Fixed-line broadband accesses grew 6.1% YoY. Residential fixed broadband and pay-TV revenue grew 4.2% and 5.2% respectively, faster than in prior quarters.

• Increased competitive promotional activity in Brazil's prepaid and postpaid segments following more aggressive pricing from rival Telefonica (Vivo) has forced the company to match promotions, creating near-term uncertainty on margin trends
• A potential mild economic slowdown in Brazil could create headwinds for revenue growth, though the trend is still early and not yet confirmed
• Ongoing regulatory risk in Mexico: a final 1.3 billion Mexican peso regulatory fine on Telnor (a Telmex subsidiary) related to a 2017 alleged asymmetric regulation violation became binding in June, though management does not expect additional similar fines
• Prepaid subscriber registration requirements in Mexico create ongoing implementation uncertainty, with a large volume of existing prepaid subscribers still completing registration per staggered regulatory deadlines
• Near-term competitive uncertainty in Argentina following recent competition authority rulings on market consolidation, though the company maintains a strong competitive position and continues growing

Q: The analyst asks which Brazilian segments are seeing the most intense recent competition, how the entry-level ClaroFlex plan fits into the competitive landscape, and whether there is room for price increases this year. / A: Management notes increased promotional activity is centered in both prepaid and postpaid segments, driven by more aggressive pricing from rival Vivo starting in May. America Movil is matching competitor promotions to remain competitive, and notes that despite near-term competition, Brazil revenue growth has improved sequentially from 1.5% to 4.1% YoY on the back of strong 5G network quality. Management says it does not control competitor behavior, but will remain competitive long-term and has no fixed timeline for price increases, as strategy will adjust to market moves.

Q: Mexico prepaid revenue growth has accelerated for multiple quarters despite broader reported weakness in consumer spending — what is driving this outperformance? / A: Management says strengthening growth is driven by an improving Mexican economy, where prepaid customers are increasingly recharging higher amount cards and using more data, paired with America Movil's leading 5G network coverage that attracts new subscribers. Management adds the recovery is uneven: some sectors (automobile sales, restaurants) are already booming, which correlates directly to stronger prepaid recharge growth.

Q: Could management break down the year-over-year increase in other financial expenses, explain how NuCell subscribers are accounted for, and clarify the revenue recognition for NuCell? / A: Management says the increase in financial expenses comes from accrued penalties for a legacy regulatory ruling and foreign exchange hedging mark-to-market changes, and is unrelated to pension cash outflows (pensions are accounted for on an accrual basis with no change to recurring expense). For NuCell, which operates as a commercial agent partner in Brazil, all NuCell subscribers are counted in America Movil's reported Claro subscriber base; only the portion of revenue retained by America Movil is recorded in its results, which limits the impact on reported ARPU.

Q: Given the weak U.S. dollar, is there downside risk to full-year capex guidance, and will incremental free cash flow go to additional share buybacks? / A: Management reaffirms the full-year $7 billion capex target, noting a weaker U.S. dollar actually increases the peso cost of dollar-denominated capex, so capex will not be reduced. Management says net debt will remain within the 1.2-1.5x EBITDA target range, and the company is prioritizing fiber-focused complementary acquisitions (such as the recently announced WOW deal in Peru) alongside continued capital return and debt reduction, with no immediate plans for large incremental buybacks.

Q: What is America Movil's current M&A strategy, and is there a plan to monetize the remaining Verizon stake for additional acquisitions or capital return? / A: Management says it is prioritizing small-to-mid sized fiber-focused acquisitions that complement its existing network, create cross-selling opportunities for mobile, TV, and corporate services, and deliver clear synergies, with no plans to enter new markets. Management says the company has not set a firm timeline to monetize the remaining Verizon stake, and will prioritize maintaining a strong balance sheet to pursue future attractive acquisition opportunities.