América Móvil(AMX) - 2025 Q3 - Quarterly Report

Subscriber Growth - América Móvil added over 3 million postpaid clients in Q3 2025, with Brazil contributing 1.5 million, followed by Colombia (251 thousand), Peru (198 thousand), and Mexico (98 thousand) [3] - The company added 235 thousand wireless subscribers in Q3 2025, including 98 thousand postpaid clients, bringing the total wireless subscriber base to 84.3 million [41] - In Brazil, the company gained 849 thousand new wireless subscribers, including 1.5 million postpaid clients, resulting in a total of over 89 million wireless subscribers [52] - The company added 488 thousand mobile subscribers in Colombia, including 251 thousand postpaid subscribers, marking seven consecutive quarters of growth in this segment [63] - Wireless subscribers in Ecuador reached 9.7 million, with a net disconnection of 320 thousand in the prepaid segment during Q3 2025 [89] - In Argentina, wireless subscribers increased by 394 thousand, reaching a total of 27.1 million, a 5.7% year-over-year growth [97] - Wireless subscribers in Chile, Paraguay, and Uruguay decreased by 4.1% year-over-year to 8,771 thousand, with postpaid subscribers increasing by 8.7% to 5,002 thousand, while prepaid subscribers fell by 17.0% to 3,769 thousand [113] - The company added 49 thousand wireless subscribers in the Dominican Republic, bringing the total to 8 million in the Caribbean [115] Financial Performance - Total revenues for Q3 2025 reached 232.9 billion Mexican pesos, up 4.2% in Mexican peso terms and 6.2% at constant exchange rates, with service revenue also expanding at a 6.2% pace [3] - EBITDA for Q3 2025 totaled 93.8 billion Mexican pesos, up 4.9% in nominal terms and 6.8% at constant exchange rates, with an EBITDA margin of 40.3% [3] - Net income for Q3 2025 was 22.7 billion Mexican pesos, reflecting a significant reduction in comprehensive financing costs compared to the previous year [3] - Free cash flow for the nine months ending September 2025 allowed América Móvil to cover 28.6 billion pesos in shareholder distributions, including 10.8 billion pesos in share buybacks [3] - Operating profit increased by 5.6% to 50.1 billion Mexican pesos, with comprehensive financing costs reduced by approximately 50% year-on-year [26] - Free cash flow for the first nine months of 2025 was 52.99 billion pesos, a significant increase of 47.0% compared to the same period in 2024 [38] - Total revenue for Q3 2025 reached 85.5 billion Mexican pesos, a 2.0% increase year-on-year [42] - Mobile service revenue grew by 4.9% year-on-year, marking its best performance since Q1 2024 [42] Revenue Growth by Region - Total revenue in Brazil for Q3 2025 reached 13,011 million BrL, a 5.4% increase year-over-year, with service revenue growing by 5.1% to 12,312 million BrL [61] - In Colombia, total revenue for Q3 2025 was 4,135 billion COP, reflecting a 5.9% year-over-year growth, with mobile service revenue increasing by 7.8% [66] - Central America reported a total revenue increase of 10.8% year-over-year to 741 million USD, with mobile service revenue rising by 12.8% [72] - In Peru, total revenue for Q3 2025 was 1,743 million soles, a 3.1% increase year-over-year, with mobile service revenue growing by 4.9% [84] - Total revenue in Ecuador increased by 1.6% year-over-year to $257 million, while service revenue also rose by 1.6% [90] - In the Chile, Paraguay, and Uruguay region, total revenue grew by 9.0% year-over-year to 334.8 billion Chilean pesos [109] - Total revenue in the Caribbean decreased by 1.2% year-over-year to 475 million dollars, with total service revenue also down by 1.2% to 420 million dollars [118] - In Puerto Rico, service revenue increased by 1.4% year-over-year, reversing a negative trend, with fixed-line service revenue rising by 4.1% driven by strong growth in PayTV and broadband revenue [117] Debt and Cash Flow - The net debt at the end of September 2025 stood at 454 billion pesos, equivalent to 1.55 times Net Debt/LTM EBITDAaL [3] - Total debt as of September 2025 was 550,176 million Mexican pesos, down from 568,482 million in December 2024, reflecting a decrease of 3.2% [138] - Net debt as of September 2025 was 453,588 million Mexican pesos, a reduction from 485,146 million in December 2024, showing a decrease of 6.5% [138] - Net cash flows from operating activities for Jan-Sep 2025 were 186,665 million Mexican pesos, up from 158,072 million in Jan-Sep 2024, representing a 18.1% increase [136] Capital Expenditures and Investments - The company continues to focus on capital expenditures related to the expansion of telecommunications infrastructure, with capital expenditures of 84,870 million Mexican pesos for Jan-Sep 2025 [136] - América Móvil returned to the euro market with a 650 million euro bond at a 3% coupon, aimed at paying short-term debt [9] - The company was granted 100 MHz of spectrum in the 3.5 GHz band in Peru, which will support the expansion of its 5G network [83] - The company launched 5G services in Costa Rica, enhancing connectivity and customer experience across the region [74] Market Performance and Metrics - Average Revenue Per User (ARPU) increased by 16.5% year-over-year to $4.97, while churn rate rose to 7.2% from 5.0% [113] - The churn rate in Ecuador improved to 3.7%, down from 4.1% in the previous year [87] - The average exchange rate for the Euro decreased by 6.0% from 0.9096 in 3Q24 to 0.8555 in 3Q25 [134] - The average exchange rate for the Mexican Peso decreased by 1.5% from 18.9243 in 3Q24 to 18.6398 in 3Q25 [134] - The Argentinean Peso saw a significant increase of 42.2% in the end of period exchange rate from 970.5 in 3Q24 to 1,380.0 in 3Q25 [134]