America Movil Q4 Earnings Call Highlights

Core Insights - America Movil reported strong growth in wireless subscribers, adding 2.5 million in Q4 2025, driven by 2.8 million postpaid additions, despite 298,000 prepaid losses [2][6] - The company ended the quarter with 331 million wireless subscribers, with postpaid subscribers increasing by 8.4% year over year [2][6] - Revenue for Q4 rose 3.4% year over year to MXN 245 billion, with a 6.2% increase on a constant currency basis [8] Subscriber Growth - Brazil led postpaid net additions with 644,000, followed by Colombia (276,000), Peru (148,000), and Mexico (135,000) [1] - In prepaid, Mexico added 197,000 subscribers, Argentina 226,000, and Colombia 224,000, while Brazil and Chile experienced losses of 381,000 and 315,000, respectively [1] Financial Performance - Operating cash flow for full-year 2025 was MXN 213 billion, with free cash flow reaching MXN 82 billion, representing approximately 40% year-over-year growth [6][11] - EBITDA increased by 4.2% in peso terms to MXN 95 billion, and 6.9% at constant exchange rates, with mobile service revenue rising 6.2% [9] - Operating profit totaled MXN 49 billion, up 5.9% in nominal terms and 8.3% at constant exchange rates, contributing to a net profit of MXN 19 billion, about four times the year-ago figure [10] Capital Expenditures and Debt Management - Capital expenditures for 2026 are guided to be approximately 14-15% of revenues, equating to about $6.8 billion to $7.0 billion [14] - Net debt fell by MXN 20 billion to 1.52x net debt/EBITDA, with management targeting a range of 1.3x to 1.5x [12][13] Market Dynamics and Competitive Landscape - The company reviewed a potential bid for Telefónica's Chilean operations but decided against it due to regulatory complexities and valuation considerations [15] - America Movil anticipates further consolidation across Latin America and aims to be prepared for smaller opportunities, particularly in fiber-related assets [16] - The company noted stronger number portability trends in Brazil, influenced by its core postpaid performance and recent handset promotions [17] Broadband and Fixed Services - In fixed services, the company connected 5,240 broadband accesses in the quarter, with significant contributions from Mexico (184,000) and Brazil (133,000) [7] - Fixed broadband revenue grew by 6.4%, with management emphasizing the acceleration in broadband access growth as one of the highest rates in years [7][9]