A month has gone by since the last earnings report for Amer Movil (AMX) . Shares have added about 6.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Amer Movil due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.America Movil's Q2 Earnings Increase Y/YAmerica Movil reported ...

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Financial Data and Key Metrics Changes - The second quarter revenue totaled ARS $234 billion, reflecting a 13.8% year-on-year increase, partly due to the depreciation of the Mexican peso against other currencies [9][12] - EBITDA was ARS 92.4 billion, up 11.2% in Mexican peso terms and 5.1% at constant exchange rates [12] - Net profit for the quarter was ARS 22.3 billion, equivalent to ARS 37 per share and ARS 38 per ADR [13] - Net debt fell by ARS 7.3 billion over six months to June, with CapEx amounting to ARS 54.9 billion [13][14] Business Line Data and Key Metrics Changes - The company added 2.9 million postpaid clients, with Brazil contributing 1.4 million [7] - Prepaid platform recorded net disconnections of 1.1 million subscribers, but overall wireless subscribers increased by 1.7 million [8] - Fixed line segment gained 462,000 broadband accesses, with significant contributions from Mexico [8] - Postpaid service revenue expanded by 9.5%, while prepaid ARPU in Mexico climbed by 2.2% [10][11] Market Data and Key Metrics Changes - The U.S. Dollar depreciated against most currencies in the region, impacting revenue growth positively [7] - The company experienced strong revenue performance across various countries, particularly in Mexico and Colombia [10][11] Company Strategy and Development Direction - The company is focusing on improving network quality and expanding coverage in Brazil, which has led to strong postpaid revenue growth [20][22] - The new telecommunications law in Mexico introduces regulatory changes that may impact competition and operational strategies [23][24] - The company aims to maintain its CapEx targets around ARS 6.7 billion to ARS 6.8 billion for the year [34] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic activity in Mexico is starting to grow, which is expected to positively impact revenue in the coming quarters [37] - The competitive environment remains aggressive, but the company believes it has a strong network and customer care to sustain its market position [36][38] - Consolidation in markets like Colombia is anticipated to lead to more rational competition [46] Other Important Information - The company reported a significant increase in broadband net adds due to enhanced commercial efforts and a high percentage of customers connected with fiber [57] - A litigation provision in Colombia was booked, affecting margins, but management indicated that the case is closed and payments will be made until the end of the year [59][60] Q&A Session Summary Question: Comments on the Brazilian mobile environment and revenue drivers - Management highlighted strong performance in postpaid due to network quality improvements and successful commercial strategies [19][20] Question: Insights on regulatory changes in the Mexican telco framework - Management discussed the new telecommunications law and its implications for competition and operational strategies [23][24] Question: Outlook for Mexico's economic activity and competitive environment - Management noted that economic activity is trending positively, with no significant changes in competition compared to the previous year [36][37] Question: Expectations for labor obligations and outflows - Management indicated that labor obligations will not see major changes compared to the previous year [44] Question: Dynamics of market consolidation in Colombia - Management expressed optimism about consolidation leading to more rational competition [46] Question: Comments on Bait's performance and market competition - Management acknowledged improvements in their prepaid segment while noting challenges in comparing with competitors like Bait [52][54] Question: Acceleration in broadband volumes in Mexico - Management attributed broadband growth to increased sales force and customer retention efforts [57] Question: Details on litigation provision in Colombia - Management confirmed that the provision is for a closed case and payments will be made until the end of the year [59][60]

Financial Data and Key Metrics Changes - The second quarter revenue totaled ARS $234 billion, reflecting a 13.8% year-on-year increase, partly due to the depreciation of the Mexican peso against other currencies [8][12] - At constant exchange rates, revenue increased by 7.9%, marking the strongest performance in over a year [9] - EBITDA was ARS 92.4 billion, up 11.2% in Mexican peso terms and 5.1% at constant exchange rates [11] - Net profit for the quarter was ARS 22.3 billion, equivalent to ARS 37 per share and ARS 38 per ADR [12] Business Line Data and Key Metrics Changes - The postpaid base increased by 6.8% year-on-year, while fixed broadband accesses grew by 4.5% [8] - Postpaid service revenue expanded by 9.5%, the best result in the prior year [9] - Prepaid revenue growth rebounded, driven by Mexico, with prepaid ARPU climbing 2.2% in the quarter [10] - Fixed line revenue from copper networks and petech increased significantly, with broadband revenue slightly decelerating to 8.2% [10] Market Data and Key Metrics Changes - The company added 2.9 million postpaid clients, with Brazil contributing 1.4 million [6] - In the prepaid segment, net disconnections totaled 1.1 million subscribers, with Brazil, Chile, and Central America each connecting approximately 500,000 clients [7] - The U.S. Dollar depreciated against most currencies in the region, impacting the company's financials [6] Company Strategy and Development Direction - The company is focusing on improving network quality and expanding coverage in Brazil, which has contributed to revenue growth [18] - The new telecommunications law in Mexico introduces regulatory changes that may impact operations, including increased fines and obligations for user identification [22][24] - The company aims to maintain its capital expenditure targets around ARS 6.7 billion to ARS 6.8 billion for the year [35] Management's Comments on Operating Environment and Future Outlook - Management noted significant uncertainty due to U.S. tariffs but indicated that the economic environment in Mexico is starting to improve [5][38] - The competitive landscape in Mexico remains aggressive, but the company believes it has a strong network and customer care to sustain growth [39] - Management expressed optimism about continued revenue growth in the broadband segment due to increased sales force and customer retention efforts [56] Other Important Information - The net debt to last twelve months EBITDA ratio stood at 1.36 times, reflecting a slight increase due to currency appreciation [13] - The company reported a decrease in labor obligations outflows compared to the previous year, with expectations of no major changes for the full year [42] Q&A Session Summary Question: Comments on Brazilian mobile environment and revenue drivers - Management highlighted strong postpaid growth in Brazil due to network quality improvements and successful sales strategies [17][18] Question: Regulatory changes in the Mexican telco framework - Management discussed the new telecommunications law, emphasizing increased fines and obligations for user identification [22][24] Question: Outlook for Mexico's economic activity and competitive environment - Management noted that competition remains similar to last year, with expectations of revenue rebound as the economy improves [38] Question: Labor obligations and outflows - Management indicated that labor obligations are paid from attention funds and out-of-pocket, with no major changes expected for the full year [42] Question: Changing competition in various markets - Management expressed hope for more rational competition as markets consolidate, particularly in Argentina and Colombia [43][44] Question: Comments on Bait's performance and market competition - Management noted improvements in their prepaid segment and emphasized the challenges faced by new entrants in maintaining subscriber bases [51][53] Question: Acceleration in broadband net adds in Mexico - Management attributed broadband growth to increased sales force and customer retention efforts, with a focus on delivering high-quality service [56] Question: Litigation provision in Colombia - Management confirmed that the provision relates to a content-related case affecting the entire industry, with payments scheduled until the end of the year [58][59]

Core Insights - America Movil reported a net income per ADR of $0.38 for Q2 2025, a recovery from a net loss of $0.02 in the same quarter last year, but fell short of the Zacks Consensus Estimate of $0.49 [2][10] - Total revenues increased by 13.8% year-over-year to Mex$233,785 million, driven by growth in both Service and Equipment segments [4][10] - The company gained 1.7 million wireless subscribers in Q2, with significant contributions from Brazil and Colombia, while experiencing a net loss of 1.1 million prepaid subscribers [5][10] Financial Performance - Net income for the quarter was Mex$22,282 million, compared to a net loss of Mex$1,093 million in the prior year [3] - Comprehensive financing costs decreased by 80.8% to Mex$7,729 million from Mex$40,210 million year-over-year [3] - Total costs and expenses rose by 15.5% to Mex$141,375 million, while EBITDA increased by 11.2% to Mex$92,409 million, resulting in an EBITDA margin of 39.5% [12] Revenue Breakdown - Service revenues reached Mex$198,540 million, up 13.4% year-over-year, while Equipment revenues rose 17.3% to Mex$32,911 million [4] - Colombia's revenue grew by 7.6%, driven by a 6.1% increase in service revenue, with mobile service revenue growth at 7.4% [7] - Argentina's revenues increased by 9.9% to ARS 633,865 million, supported by improved economic conditions [8] Subscriber Metrics - The company ended the quarter with 78 million revenue-generating units across fixed-line, broadband, and television platforms [5] - Brazil contributed the most to the postpaid subscriber growth with 1.4 million, while prepaid losses were primarily due to disconnections in Brazil, Chile, and Honduras [5][10] Regional Performance - Central America saw a revenue increase of 10.1% to $721 million, attributed to strong performance in Service and Equipment revenues [11] - Revenues from Austria, Brazil, Peru, and Mexico grew by 4.1%, 6.1%, 4.7%, and 4.7% respectively, while revenues from Ecuador and the Caribbean declined slightly [11]

[Selected Financial Data](index=3&type=section&id=SELECTED%20FINANCIAL%20DATA) The company's selected financial data for 2024 shows a significant decline in net profit, primarily due to foreign exchange losses, with financial statements prepared under IFRS in Mexican Pesos Consolidated Financial Highlights (in billions of Mexican Pesos) | Financial Metric | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | **Operating Revenues** | 844.5 | 816.0 | 869.2 | | **Operating Income** | 170.9 | 167.8 | 180.1 | | **Net Profit for the year** | 81.5 | 80.8 | 27.6 | | **Net Profit attributable to Equity holders** | 76.2 | 76.1 | 22.9 | | **Basic and Diluted EPS (from continuing operations)** | Ps. 1.30 | Ps. 1.21 | Ps. 0.37 | | **Total Assets** | 1,618.1 | 1,564.2 | 1,793.9 | | **Total Equity** | 437.8 | 421.7 | 432.2 | - Net profit for 2024 was **Ps. 27.6 billion**, a significant decrease from **Ps. 80.8 billion** in 2023, primarily impacted by foreign exchange losses[10](index=10&type=chunk)[108](index=108&type=chunk) - On October 31, 2024, the company consolidated its Chilean operation, Claro Chile, SpA, after converting its notes into equity, increasing its ownership to **94.9%** by year-end; prior to this, it was accounted for as a joint venture using the equity method[8](index=8&type=chunk)[12](index=12&type=chunk) - The company's financial statements are prepared in accordance with IFRS and presented in Mexican Pesos (Ps.); U.S. dollar translations are provided for convenience at a rate of **Ps. 20.2683 to U.S.$1.00** as of December 31, 2024[6](index=6&type=chunk)[7](index=7&type=chunk) [Part I: Information on the Company](index=5&type=section&id=PART%20I%3A%20INFORMATION%20ON%20THE%20COMPANY) This section provides an overview of América Móvil's business, network infrastructure, competitive landscape, strategic investments, and customer engagement strategies [About América Móvil](index=6&type=section&id=ABOUT%20AM%C3%89RICA%20M%C3%93VIL) América Móvil is a leading telecommunications provider across 23 countries, offering diverse services with **400.5 million RGUs** in 2024, primarily under the Claro, Telcel, and Telmex brands - América Móvil is a leading telecommunications provider in 23 countries across Latin America, the Caribbean, and Europe, ranking first in the region for wireless, fixed-line, broadband, and Pay TV services based on Revenue Generating Units (RGUs)[19](index=19&type=chunk)[20](index=20&type=chunk) Total Revenue Generating Units (RGUs) by Type (in millions) | RGU Type | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | **Total Wireless RGUs** | 305.1 | 315.2 | 322.6 | | **Total Fixed RGUs** | 76.6 | 76.9 | 77.9 | | **Total RGUs** | 381.6 | 392.1 | 400.5 | - In 2024, wireless operations generated **Ps. 458.5 billion** in revenue, representing **52.8% of consolidated revenues**, while fixed operations generated **Ps. 262.5 billion**, or **30.2% of revenues**[29](index=29&type=chunk)[40](index=40&type=chunk) - The proportion of postpaid wireless plans increased from **39.7%** in December 2023 to **40.8%** as of December 31, 2024, indicating a shift towards higher-value subscribers[33](index=33&type=chunk) - The company offers OTT services such as ClaroVideo, an on-demand streaming service with over **32,500 titles**, and ClaroMúsica, a music streaming service with access to approximately **100 million songs**[48](index=48&type=chunk)[49](index=49&type=chunk) [Our Networks](index=11&type=section&id=OUR%20NETWORKS) The company invested **Ps. 130.8 billion** in 2024 to expand its extensive network infrastructure, including **116,000 cell sites** and **1.4 million km of fiber-optic network**, achieving **55% 5G population coverage** in Mexico and Brazil - Capital expenditures for 2024 totaled **Ps. 130.8 billion**, focused on increasing network capacity and upgrading to the latest technologies[57](index=57&type=chunk) - As of December 31, 2024, the company's infrastructure included **116,000 cell sites**, over **1.4 million km of fiber-optic network** reaching **118 million homes**, capacity in over **200,000 km of submarine cables**, five satellites, and **41 data centers**[60](index=60&type=chunk) - The company has expanded its 5G coverage, reaching close to **55.0%** of the population in Mexico and Brazil with 5G services as of December 31, 2024[58](index=58&type=chunk) [Our Competitors](index=12&type=section&id=OUR%20COMPETITORS) The company operates in an intensely competitive telecommunications market, facing multi-national and national operators, with competition driven by pricing, brand, network quality, and technology deployment - The company faces intense competition from multi-national operators such as AT&T Inc., Telefónica, and Millicom, as well as various national-level providers[63](index=63&type=chunk)[64](index=64&type=chunk) - Competition is driven by factors like pricing, brand, service offerings, network coverage, and new technology deployment, and is expected to remain intense due to market saturation and regulatory changes[65](index=65&type=chunk) [Acquisitions, Other Investments and Divestitures](index=12&type=section&id=ACQUISITIONS%2C%20OTHER%20INVESTMENTS%20AND%20DIVESTITURES) The company pursues global investment opportunities for portfolio optimization and geographic diversification, recently consolidating Claro Chile, SpA, and securing control over Telekom Austria AG - América Móvil continues to seek global investment opportunities to optimize its portfolio, focusing on geographic diversification as a key to financial success[67](index=67&type=chunk)[68](index=68&type=chunk) - In 2023, the company entered a 10-year agreement ensuring control over Telekom Austria AG (TKA) and supported the spin-off of its mobile towers into EuroTeleSites AG[74](index=74&type=chunk) - On October 31, 2024, AMX consolidated Claro Chile, SpA into its operations after receiving regulatory approval, holding a **94.9%** interest by December 31, 2024[74](index=74&type=chunk) [Marketing, Sales and Distribution, Customer Services](index=13&type=section&id=MARKETING%2C%20SALES%20AND%20DISTRIBUTION%2C%20CUSTOMER%20SERVICES) The company's marketing efforts in 2024 focused on 5G and fiber optic rollouts, leveraging its top-ranked Claro and Telcel brands through an extensive network of **420,000 points of sale** and **3,400 customer service centers** - Marketing efforts in 2024 were focused on promoting 5G services and fiber optic rollout, leveraging network speed and quality[70](index=70&type=chunk) - The company's brands, Claro and Telcel, are recognized as highly valuable, ranking among the top forty strongest telecom brands worldwide according to the 2024 Brand Finance Telecom 150 report[71](index=71&type=chunk) - The company utilizes a vast sales and distribution network with over **420,000 points of sale** and more than **3,400 customer service centers**[72](index=72&type=chunk) [Part II: Operating and Financial Review and Prospects](index=14&type=section&id=PART%20II%3A%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section reviews the company's financial performance, liquidity, and capital resources, considering discontinued operations, segment reporting, constant currency analysis, and key market trends [Overview](index=15&type=section&id=OVERVIEW) This overview details the financial review's scope, including discontinued operations, Claro Chile's consolidation, ten reportable segments, constant currency analysis (excluding Argentina), and key market trends like competition and data demand - The company's financial reporting is affected by the treatment of discontinued operations, specifically the sale of Claro Panama in 2022 and the classification of Claro Chile as a joint venture from October 2022 until its consolidation on October 31, 2024[76](index=76&type=chunk)[77](index=77&type=chunk) - Financial results are presented across ten reportable segments, with Mexico being split into Mexico Wireless and Mexico Fixed[78](index=78&type=chunk) - To better understand performance, the company provides analysis at constant exchange rates; due to hyperinflation, Argentina is excluded from these consolidated constant currency comparisons[80](index=80&type=chunk)[81](index=81&type=chunk) - Key long-term trends affecting operating results in 2024 include intense competition, growing demand for data services, declining demand for voice and traditional Pay TV, and a strategic focus on cost savings programs[90](index=90&type=chunk)[91](index=91&type=chunk) [Results of Operations](index=17&type=section&id=RESULTS%20OF%20OPERATIONS) In 2024, operating revenues grew **6.5% to Ps. 869.2 billion**, and operating income rose **7.3% to Ps. 180.1 billion**, but net profit declined **65.8% to Ps. 27.6 billion** due to a **Ps. 70.7 billion** foreign exchange loss Consolidated Results of Operations (2024 vs. 2023) (in billions of Mexican Pesos) | Metric | 2023 (Ps. billion) | 2024 (Ps. billion) | % Change | | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | 816.0 | 869.2 | +6.5% | | **Operating Income** | 167.8 | 180.1 | +7.3% | | **Net Profit (continuing ops)** | 80.8 | 27.6 | -65.8% | - The significant decrease in net profit was mainly driven by a net foreign currency exchange loss of **Ps. 70.7 billion** in 2024, compared to a gain of **Ps. 14.7 billion** in 2023, due to the appreciation of currencies like the U.S. dollar and euro against the Mexican peso[104](index=104&type=chunk) - Service revenues increased by **7.6%** (**4.0%** at constant exchange rates), reflecting growth in mobile prepaid/postpaid services and broadband, partially offset by declines in fixed voice and Pay TV[94](index=94&type=chunk) Segment Operating Income (Loss) - 2024 (in billions of Mexican Pesos) | Segment | Operating Income (Loss) | | :--- | :--- | | Mexico Wireless | 89.4 | | Mexico Fixed | 14.7 | | Brazil | 30.9 | | Colombia | 9.6 | | Southern Cone (Argentina) | 1.6 | | Southern Cone (Paraguay, Uruguay, Chile) | (2.4) | | Andean Region | 8.1 | | Central America | 7.5 | | Caribbean | 5.9 | | Europe | 16.3 | [Liquidity and Capital Resources](index=24&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintained strong liquidity with **Ps. 239.3 billion** in operating cash flow in 2024, funding **Ps. 130.8 billion** in capital expenditures, while total consolidated debt increased to **Ps. 567.6 billion**, with currency risk managed through derivatives - Cash flows from operating activities were **Ps. 239.3 billion** in 2024; cash and cash equivalents stood at **Ps. 36.7 billion** at year-end[166](index=166&type=chunk) Primary Uses of Cash in 2024 (in billions of Mexican Pesos) | Use of Cash | Amount | | :--- | :--- | | Capital Expenditures | Ps. 130.8 | | Dividends Paid | Ps. 31.0 | | Share Repurchases | Ps. 22.7 | - Total consolidated indebtedness was **Ps. 567.6 billion** as of December 31, 2024, an increase from **Ps. 500.7 billion** at the end of 2023; net debt totaled **Ps. 484.2 billion**[169](index=169&type=chunk)[171](index=171&type=chunk) - The company manages currency risk with derivatives; after these transactions, approximately **41.2%** of net debt was denominated in Mexican Pesos as of December 31, 2024[172](index=172&type=chunk) - The company has two major revolving syndicated credit facilities: one for **U.S.$2.5 billion** expiring in 2029 and one for the Euro equivalent of **U.S.$1.5 billion** expiring in 2026; as of year-end 2024, **U.S.$600 million** was drawn from the U.S. facility[182](index=182&type=chunk) [Part III: Risk Factors](index=30&type=section&id=PART%20III%3A%20RISK%20FACTORS) This section details the company's operational, industry, and country-specific risks, including competition, regulatory challenges, technological changes, and macroeconomic volatility [Risks Relating to Our Operations](index=31&type=section&id=RISKS%20RELATING%20TO%20OUR%20OPERATIONS) The company faces operational risks from intense competition, adverse asymmetric regulations in Mexico, spectrum acquisition challenges, significant tax assessments, cybersecurity threats, and identified material weaknesses in internal control over financial reporting - Intense competition in the telecommunications industry could lead to increased spending, price reductions, and lower operating margins[194](index=194&type=chunk)[195](index=195&type=chunk) - Operations are subject to extensive government regulation; in Mexico, asymmetric regulations imposed on the company as a "preponderant economic agent" have adversely affected results[198](index=198&type=chunk)[199](index=199&type=chunk) - The business relies on licensed radio spectrum, which is essential for growth and service quality; an inability to acquire additional spectrum could hinder competitiveness[205](index=205&type=chunk) - The company is contesting significant tax assessments in Brazil, Mexico, and Colombia, which, if determined adversely, could have a material effect on financial condition[211](index=211&type=chunk) - Cybersecurity incidents, system failures, and other network disruptions could cause service interruptions, leading to increased expenses, loss of subscribers, and reputational harm[213](index=213&type=chunk)[225](index=225&type=chunk) - Management identified material weaknesses in internal control over financial reporting for both 2023 and 2024, related to IT general controls, revenue processes, and data accuracy in its Colombia, Mexico Fixed, and Mexico Wireless segments[238](index=238&type=chunk) [Risks Relating to the Telecommunications Industry Generally](index=38&type=section&id=RISKS%20RELATING%20TO%20THE%20TELECOMMUNICATIONS%20INDUSTRY%20GENERALLY) The telecommunications industry faces risks from rapid technological change requiring substantial capital expenditure, potential intellectual property infringement claims, and alleged health concerns related to wireless devices - The industry experiences significant changes from new technologies, evolving standards, and changing consumer preferences, requiring substantial capital expenditure to maintain and upgrade networks[241](index=241&type=chunk) - The company faces risks of intellectual property infringement claims from third parties regarding content, products, or software, which could lead to costly litigation or require cessation of certain services[242](index=242&type=chunk) - Alleged health risks related to radio frequency emissions from wireless devices could lead to lawsuits and increased regulation, potentially affecting the use of wireless technology[244](index=244&type=chunk)[245](index=245&type=chunk) [Risks Relating to Controlling Shareholders, Capital Structure and Transactions with Affiliates](index=39&type=section&id=RISKS%20RELATING%20TO%20OUR%20CONTROLLING%20SHAREHOLDERS%2C%20CAPITAL%20STRUCTURE%20AND%20TRANSACTIONS%20WITH%20AFFILIATES) The company faces risks from the Slim Family's controlling interest, potential conflicts of interest from significant affiliate transactions, and differing minority shareholder protections under Mexican law compared to U.S. standards - The Slim Family may be deemed to control the company, enabling them to elect a majority of the Board and determine the outcome of shareholder votes[248](index=248&type=chunk) - The company engages in significant transactions with related parties, including Telesites, Sitios Latam, Grupo Carso, and Grupo Financiero Inbursa, which may create potential conflicts of interest[249](index=249&type=chunk)[250](index=250&type=chunk) - Protections for minority shareholders under Mexican law differ from those in the U.S., and it may be difficult for non-Mexican shareholders to enforce their rights[253](index=253&type=chunk)[255](index=255&type=chunk) [Risks Relating to Developments in Mexico and Other Countries](index=41&type=section&id=RISKS%20RELATING%20TO%20DEVELOPMENTS%20IN%20MEXICO%20AND%20OTHER%20COUNTRIES) Financial performance is highly sensitive to economic, political, and social conditions in operating markets, including inflation, currency fluctuations (resulting in a **Ps. 70.7 billion** FX loss in 2024), and changes in government policies - Financial performance is highly sensitive to economic, political, and social conditions in Latin America, the Caribbean, and Europe, including inflation, currency fluctuations, and changes in government policy[261](index=261&type=chunk)[262](index=262&type=chunk) - Argentina's hyperinflationary economy poses a significant risk, and political developments in Mexico, including constitutional reforms affecting regulatory bodies, create uncertainty[264](index=264&type=chunk)[266](index=266&type=chunk) - Fluctuations in exchange rates significantly affect financial results, leading to a net foreign exchange loss of **Ps. 70.7 billion** in 2024[271](index=271&type=chunk) - Adverse changes in global financial markets could increase the cost of capital, and major currency depreciations could lead to exchange controls, limiting the ability to transfer funds[269](index=269&type=chunk)[273](index=273&type=chunk) [Part IV: Share Ownership and Major Shareholders Trading](index=44&type=section&id=PART%20IV%3A%20SHARE%20OWNERSHIP%20AND%20MAJOR%20SHAREHOLDERS%20TRADING) This section details the company's share ownership structure, major shareholders, related party transactions, dividend policy, and share repurchase programs [Major Shareholders](index=45&type=section&id=MAJOR%20SHAREHOLDERS) As of March 31, 2025, the Slim Family controls the company with significant holdings, including a **29.2%** stake through a family trust, out of **60.74 billion** outstanding B Shares Major Share Ownership (as of March 31, 2025) (in millions of shares) | Shareholder | Shares Owned (millions) | Percent of Class | | :--- | :--- | :--- | | Family Trust | 17,743 | 29.2% | | Control Empresarial de Capitales | 10,896 | 17.9% | | Carlos Slim Helú | 5,200 | 8.6% | - As of March 31, 2025, **8.5%** of the outstanding B Shares were represented by B Share ADSs, with each ADS representing **20 B Shares**[284](index=284&type=chunk) [Related Party Transactions](index=45&type=section&id=RELATED%20PARTY%20TRANSACTIONS) The company conducts ordinary course business with related parties like Telesites, Sitios Latam, Grupo Carso, and Grupo Financiero Inbursa, ensuring terms are no less favorable than with unaffiliated parties - The company purchases materials and services from related parties under common control, including Telesites, Sitios Latam, Grupo Carso, and Grupo Financiero Inbursa[285](index=285&type=chunk) - Transactions include site usage agreements with Telesites and Sitios Latam, insurance and banking with Grupo Financiero Inbursa, and network construction with Grupo Carso[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk) [Dividends](index=46&type=section&id=DIVIDENDS) The company regularly pays cash dividends, with **Ps. 0.48 per share** paid in 2024 and **Ps. 0.52 per share** approved for 2025, both in two installments Dividend Payments per Share | Payment Date | Pesos per Share | U.S. Dollars per Share | | :--- | :--- | :--- | | November 11, 2024 | Ps. 0.24 | U.S.$0.0135 | | July 15, 2024 | Ps. 0.24 | U.S.$0.0121 | | November 13, 2023 | Ps. 0.23 | U.S.$0.0131 | | July 17, 2023 | Ps. 0.23 | U.S.$0.0136 | | August 29, 2022 | Ps. 0.44 | U.S.$0.0221 | - On May 14, 2025, shareholders approved a cash dividend of **Ps. 0.52 per share**, payable in two installments in July and November 2025[293](index=293&type=chunk) [Purchases of Equity Securities by the Issuer and Affiliate Purchasers](index=47&type=section&id=PURCHASES%20OF%20EQUITY%20SECURITIES%20BY%20THE%20ISSUER%20AND%20AFFILIATE%20PURCHASERS) The company actively manages share buyback programs, repurchasing **1.45 billion shares** in 2024 under a **Ps. 30 billion** authorized fund, with a new **Ps. 10 billion** program approved for 2025-2026 Share Repurchases in 2024 (in millions of shares) | Period | Total Shares Purchased (millions) | Average Price per Share (Ps.) | | :--- | :--- | :--- | | January 2024 | 112 | 15.65 | | February 2024 | 125 | 15.63 | | March 2024 | 69 | 15.97 | | April 2024 | 184 | 15.65 | | May 2024 | 118 | 16.53 | | June 2024 | 190 | 15.61 | | July 2024 | 140 | 15.96 | | August 2024 | 34 | 16.11 | | September 2024 | 68 | 16.07 | | October 2024 | 127 | 16.14 | | November 2024 | 143 | 15.65 | | December 2024 | 140 | 15.03 | | **Total** | **1,450** | | - For the April 2025 to April 2026 period, shareholders authorized a new buyback program of up to **Ps. 10 billion**[302](index=302&type=chunk) [Taxation of Shares and ADSs](index=48&type=section&id=TAXATION%20OF%20SHARES%20AND%20ADSs) This section summarizes Mexican and U.S. federal income tax implications for non-resident holders of B Shares or ADSs, including **10%** withholding tax on Mexican dividends and capital gains treatment for U.S. holders - Under Mexican tax law, dividends paid to non-resident holders are generally subject to a **10%** withholding tax[316](index=316&type=chunk) - Gains from the disposition of shares through the Mexican Stock Exchange by a non-resident holder are generally taxed at a **10%** rate on the net gain[317](index=317&type=chunk) - For U.S. holders, distributions are generally treated as dividend income; dividends may be considered "qualified dividends" subject to reduced tax rates, provided certain conditions are met[329](index=329&type=chunk)[331](index=331&type=chunk) - U.S. holders will generally recognize capital gain or loss on the sale of shares or ADSs; the ability to credit Mexican taxes against U.S. tax liability is subject to limitations[336](index=336&type=chunk)[337](index=337&type=chunk) [Part V: Corporate Governance](index=53&type=section&id=PART%20V%3A%20CORPORATE%20GOVERNANCE) This section outlines the company's management structure, corporate governance practices, and cybersecurity framework, including identified material weaknesses in internal controls [Management](index=54&type=section&id=MANAGEMENT) The Board of Directors comprises **15 members**, with **10 (67%)** independent, supported by an Audit and Corporate Practices Committee, with 2024 aggregate compensation of **Ps. 6.5 million** for directors and **Ps. 103.9 million** for senior management - The Board of Directors is composed of **15 members**, with **10 (approximately 67%)** determined to be independent; Carlos Slim Domit serves as Chairman[347](index=347&type=chunk)[349](index=349&type=chunk)[353](index=353&type=chunk) - The Audit and Corporate Practices Committee is comprised of four independent members, with Ernesto Vega Velasco serving as Chairman and qualifying as an "audit committee financial expert"[357](index=357&type=chunk)[361](index=361&type=chunk) - Aggregate compensation in 2024 was approximately **Ps. 6.5 million** for directors and **Ps. 103.9 million** for senior management[362](index=362&type=chunk) [Corporate Governance](index=59&type=section&id=CORPORATE%20GOVERNANCE) The company's corporate governance adheres to Mexican law, differing from NYSE standards, and management identified material weaknesses in internal control over financial reporting for 2024, particularly in IT and revenue processes in Colombia and Mexico segments - Corporate governance practices are governed by Mexican law, which differs from NYSE standards; for example, while a majority of the board is currently independent, Mexican law only requires **25%** independence[365](index=365&type=chunk)[369](index=369&type=chunk) - Management concluded that due to material weaknesses, disclosure controls and procedures were not effective as of December 31, 2024[398](index=398&type=chunk) - Material weaknesses were identified in: (i) IT general controls (user access, change management) at the Colombia and Mexico Fixed segments; (ii) controls over prepaid/postpaid revenue processes at the Mexico Wireless segment; and (iii) controls to ensure completeness and accuracy of information at all three segments[403](index=403&type=chunk)[408](index=408&type=chunk) - Management is implementing a remediation plan to address the control deficiencies, including enhancing user access controls, redesigning controls, and improving documentation[416](index=416&type=chunk)[417](index=417&type=chunk) [Cybersecurity](index=63&type=section&id=CYBERSECURITY) The company maintains a robust cybersecurity risk management program, overseen by the CISO and Audit Committee, leveraging ISO 27001 and NIST frameworks, and has not experienced any material information security breaches - The company has a cybersecurity risk management process for assessing, identifying, and managing threats, overseen by the CISO and the Audit and Corporate Practices Committee[426](index=426&type=chunk)[430](index=430&type=chunk)[432](index=432&type=chunk) - The cybersecurity framework leverages international standards like ISO 27001/27002 and the NIST Cyber Security Framework, and includes mandatory employee training and third-party assessments[433](index=433&type=chunk) - As of the date of the annual report, the company has not been materially affected by cybersecurity threats and has not experienced any material information security breaches[429](index=429&type=chunk) [Part VI: Regulation](index=66&type=section&id=PART%20VI%3A%20REGULATION) This section details the regulatory environments in key operating regions, including Mexico, Brazil, Colombia, and other areas, highlighting asymmetric regulations, spectrum auctions, and concession renewals [Mexico](index=67&type=section&id=MEXICO) In Mexico, the company is subject to extensive asymmetric regulations by the IFT as a "preponderant economic agent," including infrastructure sharing and functional separation of fixed-line services, with Telmex's primary concession extended to 2056 - The company and its Mexican subsidiaries are deemed a "preponderant economic agent" and are subject to extensive asymmetric regulations by the IFT, which impact its fixed-line and wireless businesses[439](index=439&type=chunk)[440](index=440&type=chunk) - Asymmetric regulations require the company to share passive infrastructure (towers, ducts), offer domestic roaming, and allow MVNOs to resell its services, with rates often determined by the IFT[447](index=447&type=chunk)[448](index=448&type=chunk) - In November 2024, the IFT concluded its third biennial review, imposing new and modified asymmetric regulations for mobile and fixed services, which the company has challenged[449](index=449&type=chunk) - The company is implementing a mandatory functional separation of wholesale fixed services provided by Telmex and Telnor into new subsidiaries, Red Nacional[450](index=450&type=chunk) [Brazil](index=71&type=section&id=BRAZIL) In Brazil, Anatel regulates the company's operations, which are transitioning to an authorization-based model, with Claro Brasil holding 5G spectrum licenses and subject to asymmetric measures due to significant market power - The primary regulator in Brazil is Anatel; new legislation is modernizing the regulatory model from concessions to authorizations, which the company is currently evaluating[476](index=476&type=chunk)[477](index=477&type=chunk) - In the 2021 5G auction, Claro Brasil acquired **100 MHz** in the **3.5 GHz** band, as well as spectrum in the **2.3 GHz** and **26 GHz** bands, with licenses valid until 2041[485](index=485&type=chunk) - Anatel has determined that Claro Brasil has significant market power in eight wholesale markets, imposing asymmetric measures such as regulated mobile termination rates and mandatory wholesale reference offers[492](index=492&type=chunk)[494](index=494&type=chunk) [Colombia](index=75&type=section&id=COLOMBIA) In Colombia, Comcel operates under ICT Ministry and CRC regulation, holding **80 MHz** of **3.5 GHz** spectrum for 5G, and is subject to asymmetric regulations as a dominant provider, including national roaming and infrastructure sharing obligations - The main regulators are the ICT Ministry and the Communications Regulatory Commission (CRC)[502](index=502&type=chunk) - In the December 2023 spectrum auction, Comcel acquired **80 MHz** in the **3.5 GHz** frequency for 5G services and **10 MHz** in the **2500 MHz** frequency[506](index=506&type=chunk) - In January 2024, the CRC imposed asymmetric measures exclusively on Comcel as a dominant provider, including specific charges for national roaming and an obligation to publish a reference offer for passive infrastructure sharing[509](index=509&type=chunk)[510](index=510&type=chunk) [Other Regions (Southern Cone, Andean, Europe, etc.)](index=77&type=section&id=OTHER%20REGIONS%20%28SOUTHERN%20CONE%2C%20ANDEAN%2C%20EUROPE%2C%20ETC.%29) Regulatory environments in other regions include Claro Chile's consolidation, Argentina's repeal of price controls, ongoing concession renewal in Ecuador, and European operations governed by the EECC and local regulators - **Chile:** The company consolidated its Claro Chile, SpA joint venture on October 31, 2024, after receiving approval from the FNE[513](index=513&type=chunk) - **Argentina:** In April 2024, the government repealed Decree 690/20, which had declared ICT services as essential public services and imposed price controls[521](index=521&type=chunk) - **Ecuador:** The renewal process for Conecel's main PCS concession, which was due to expire in August 2023, is ongoing, with an extension granted while negotiations continue[535](index=535&type=chunk) - **Europe:** Operations in EU member states (Austria, Bulgaria, Croatia, Slovenia) are regulated under the European Electronic Communications Code (EECC) and domestic frameworks[548](index=548&type=chunk) [Part VII: Additional Information](index=83&type=section&id=PART%20VII%3A%20ADDITIONAL%20INFORMATION) This section provides additional information on the company's employee base and principal accountant fees, including a change in independent auditors [Employees](index=84&type=section&id=EMPLOYEES) As of December 31, 2024, the company employed **178,468 individuals**, a slight decrease from the prior year, with the majority located in Mexico and South America Employee Breakdown by Geographic Location | Geographic Location | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | Mexico | 85,820 | 86,999 | 85,748 | | South America | 56,464 | 55,592 | 55,471 | | Central America | 9,602 | 9,645 | 9,967 | | Caribbean | 10,193 | 10,048 | 9,982 | | Europe | 17,907 | 17,508 | 17,300 | | **Total Employees** | **179,986** | **179,792** | **178,468** | [Principal Accountant Fees and Services](index=84&type=section&id=PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Total fees from Mancera (EY) were **Ps. 253 million** in 2024, with the company electing Deloitte as its new independent auditor for fiscal years 2025-2027 Accountant Fees (in millions of Mexican Pesos) | Fee Type | 2023 | 2024 | | :--- | :--- | :--- | | Audit fees | Ps. 202 | Ps. 225 | | Audit-related fees | Ps. 13 | Ps. 6 | | Tax fees | Ps. 11 | Ps. 22 | | **Total fees** | **Ps. 226** | **Ps. 253** | - On March 19, 2024, the Board of Directors elected Deloitte as the independent external auditor for fiscal years 2025, 2026, and 2027, replacing Mancera, S.C. (EY)[564](index=564&type=chunk) [Part VIII: Consolidated Financial Statements](index=91&type=section&id=PART%20VIII%3A%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the company's audited consolidated financial statements for 2022-2024, prepared under IFRS, with an unqualified opinion on financials but an adverse opinion on internal controls due to material weaknesses - This part contains the company's audited consolidated financial statements for the years ended December 31, 2022, 2023, and 2024, prepared in accordance with IFRS[583](index=583&type=chunk) - The independent registered public accounting firm, Mancera, S.C. (a member of Ernst & Young), issued an unqualified opinion on the financial statements but an adverse opinion on the company's internal control over financial reporting as of December 31, 2024, due to identified material weaknesses[587](index=587&type=chunk)[588](index=588&type=chunk) - The financial statements include the Consolidated Statements of Financial Position, Comprehensive Income, Changes in Shareholders' Equity, and Cash Flows, along with detailed notes[585](index=585&type=chunk)

Core Insights - America Movil, S.A.B. de C.V. (AMX) reported a net income per ADR of 30 cents for Q1 2025, an increase from 25 cents in the prior year, but missed the Zacks Consensus Estimate by 6.25% [1] - Total quarterly revenues increased by 14.1% to Mex$232,038 million, driven by growth in both Service and Equipment segments [3] - The company gained 2.4 million postpaid subscribers in Q1, with Brazil contributing the most [4] Financial Performance - Net income for the quarter was Mex$18,703 million, compared to Mex$13,494 million in the same quarter last year [1] - Comprehensive financing costs decreased by 2% to Mex$13,440 million from Mex$13,708 million [1] - Total costs and expenses rose by 14.9% to Mex$140,990 million [9] - EBITDA increased by 13% to Mex$91,048 million, with an EBITDA margin of 39.2% [11] Subscriber Metrics - The company ended the quarter with 324 million wireless subscribers, with a net loss of 1 million prepaid subscribers primarily in Mexico and Brazil [4] - In Mexico, postpaid revenues grew by 5.5%, while prepaid revenue fell by 2.5% due to economic slowdown [6] Regional Performance - Mexico's revenues declined by 2.3% to Mex$82,107 million, mainly due to a 14.3% drop in equipment sales [6] - Argentina's revenues increased by 28.4% to ARS 589,836 million, supported by improved economic activity and consumer spending [7] - Central America's revenues rose by 16.4% to $702 million, driven by strong performance in Service and Equipment revenues [8] Liquidity Position - As of March 31, 2025, the company had Mex$88,363 million in cash and marketable securities, alongside long-term debt of Mex$465,263 million [12]

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of April, 2025 (Exact name of registrant as specified in its charter) America Mobile (Translation of Registrant´s name into English) Lago Zurich 245 Plaza Carso / Edificio Telcel Colonia Ampliación Granada Alcaldía Miguel Hidalgo, 11529, Mexico City, Mexico (Address of principal executive office) Indicate by check mark whet ...

Group 1: Earnings Performance - Amer Movil reported quarterly earnings of $0.30 per share, missing the Zacks Consensus Estimate of $0.32 per share, but showing an increase from $0.25 per share a year ago, resulting in an earnings surprise of -6.25% [1] - The company posted revenues of $11.36 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.68%, although this represents a decline from year-ago revenues of $11.98 billion [2] - Over the last four quarters, Amer Movil has not surpassed consensus EPS estimates, but has topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Amer Movil shares have increased by approximately 19.9% since the beginning of the year, contrasting with the S&P 500's decline of -5.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.34 on revenues of $11.26 billion, and $1.45 on revenues of $46.4 billion for the current fiscal year [7] Group 3: Industry Context - The Wireless Non-US industry, to which Amer Movil belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Core Insights - Michael Dion is an expert in FP&A, Corporate Finance, and Small Business with 12 years of experience in Fortune 100 companies and various industries [1] - He founded F9 Finance to assist finance professionals and small business owners in understanding finance and accounting concepts [1] - Dion's investment strategy focuses on identifying value opportunities where market reactions to news are disproportionate, emphasizing strong fundamentals and dividends [1] Industry and Company Analysis - Dion has finance experience across multiple sectors including Telecom, Media and Entertainment, Hospitality, and Construction [1] - His approach highlights the importance of cash flow for both companies and investors, indicating a focus on financial health and sustainability [1]