America Movil SAB de CV (AMXOF) Q3 2024 Earnings Call Highlights: Strong Subscriber Growth and ...

In This Article:

  • Revenue: MXN223 billion for the third quarter.

  • Service Revenue Growth: 11.3% in Mexican peso terms; 5.5% at constant exchange rates year-on-year.

  • EBITDA Growth: 11.9% in Mexican peso terms; 7.2% at constant exchange rates.

  • Operating Profit: MXN47.4 billion, up 14.2% in Mexican peso terms; 10% at constant exchange rates.

  • Net Profit: MXN6.4 billion for the quarter.

  • Net Debt: MXN443 billion as of September, increased by MXN47.3 billion since December 2023.

  • Capital Expenditure: MXN86.7 billion for the nine months to September.

  • Subscriber Additions: 1.8 million total, with 1.4 million postpaid and 468,000 prepaid additions.

  • Fixed Broadband Access Growth: 327,000 new connections in the quarter.

Release Date: October 16, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • America Movil SAB de CV (AMXOF) added 1.8 million subscribers in the third quarter, with significant contributions from Austria, Brazil, Colombia, and Mexico.

  • Service revenue expanded by 11.3% in Mexican peso terms, with EBITDA increasing by 11.9%, reflecting strong operational performance.

  • The company achieved a net profit of MXN6.4 billion, nearly tripling from the previous year, driven by higher operating profit and reduced financing costs.

  • America Movil SAB de CV (AMXOF) maintained a low leverage ratio, ending the quarter at 1.34 times last 12 months EBITDA, aligning with their Investor Day commitments.

  • The company received a third-year A rating upgrade by MSCI, highlighting improvements in corporate governance, security, and data privacy.

Negative Points

  • The company experienced disconnections in the prepaid segment, particularly in Brazil and Mexico, with 243,000 and 136,000 disconnections respectively.

  • Net debt increased by MXN47.3 billion relative to December 2023, partly due to the depreciation of the Mexican peso impacting non-peso financial obligations.

  • Despite growth in service revenue, the decline in PayTV revenue continues, albeit at a less significant rate.

  • The competitive dynamics in the fixed broadband market in Mexico remain challenging, with increased competition impacting net additions.

  • Currency depreciation in Latin America poses potential risks to shareholder remuneration and CapEx plans, although no changes have been announced yet.

Q & A Highlights

Q: Can you provide an update on the competitive dynamics of the fixed broadband market in Mexico and your CapEx guidance for 2024? A: The competition in Mexico's fixed broadband market is intense. We've been proactive in upgrading our network, with 84% of our broadband connections now on fiber. We've also launched new packages to enhance market competitiveness. Regarding CapEx, we are on target to spend around $7.2 billion this year, as planned. - Daniel Hajj Aboumrad, CEO; Carlos Garcia Moreno, CFO; Oscar Von Hauske Solis, COO

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