In This Article:
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Revenue: MXN223 billion for the third quarter.
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Service Revenue Growth: 11.3% in Mexican peso terms; 5.5% at constant exchange rates year-on-year.
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EBITDA Growth: 11.9% in Mexican peso terms; 7.2% at constant exchange rates.
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Operating Profit: MXN47.4 billion, up 14.2% in Mexican peso terms; 10% at constant exchange rates.
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Net Profit: MXN6.4 billion for the quarter.
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Net Debt: MXN443 billion as of September, increased by MXN47.3 billion since December 2023.
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Capital Expenditure: MXN86.7 billion for the nine months to September.
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Subscriber Additions: 1.8 million total, with 1.4 million postpaid and 468,000 prepaid additions.
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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
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America Movil SAB de CV (AMXOF) added 1.8 million subscribers in the third quarter, with significant contributions from Austria, Brazil, Colombia, and Mexico.
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Service revenue expanded by 11.3% in Mexican peso terms, with EBITDA increasing by 11.9%, reflecting strong operational performance.
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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.
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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.
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The company received a third-year A rating upgrade by MSCI, highlighting improvements in corporate governance, security, and data privacy.
Negative Points
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The company experienced disconnections in the prepaid segment, particularly in Brazil and Mexico, with 243,000 and 136,000 disconnections respectively.
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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.
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Despite growth in service revenue, the decline in PayTV revenue continues, albeit at a less significant rate.
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The competitive dynamics in the fixed broadband market in Mexico remain challenging, with increased competition impacting net additions.
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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