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América Móvil(AMX) - 2025 Q3 - Earnings Call Transcript
2025-10-15 16:00
Financial Data and Key Metrics Changes - In Q3 2025, América Móvil reported total revenue of 233 billion pesos, up 4.2% in Mexican peso terms and 6.2% at constant exchange rates [6] - EBITDA totaled 94 billion pesos, increasing by 4.9% in nominal terms and 6.8% at constant exchange rates [9] - Net income surged to 23 billion pesos, equivalent to $0.38 per share or $0.40 per ADR, with free cash flow amounting to 53 billion pesos, a 47% increase year on year [10][11] Business Line Data and Key Metrics Changes - The postpaid client base increased by 8.1% year over year, with 3 million new postpaid clients added in the quarter [5][6] - Mobile service revenue grew by 7.1%, the fastest rate in two years, driven by a recovery in prepaid revenue, which expanded by 3.9% [7] - Fixed-line service revenue decelerated to 4.7% growth, impacted by a slowdown in corporate networks revenue, which fell from a 15% increase in Q2 to 3.5% in Q3 [8] Market Data and Key Metrics Changes - The U.S. dollar depreciated against several currencies in the region, declining 2.7% against the Mexican peso and 4.1% against the Colombian peso [4] - In Brazil, the company added 1.5 million postpaid clients, contributing significantly to overall growth [5] Company Strategy and Development Direction - The company is evaluating potential acquisitions, including a joint bid with Entel for Telefónica assets in Chile, indicating a strategy focused on market consolidation [18][19] - Investments in network modernization and customer service enhancements are ongoing, particularly in Chile, where the company has seen significant EBITDA growth [34] Management's Comments on Operating Environment and Future Outlook - Management noted that the recovery in mobile prepaid revenues in Mexico is closely tied to economic conditions, with expectations for continued improvement [14] - In Colombia, the company is optimistic about growth despite competitive pressures, with service revenue increasing by 7.8% [29] Other Important Information - The company reduced its net debt by 16 billion pesos, ending the quarter with a net debt of 454 billion pesos, equivalent to 1.55 times net debt to EBITDA after leases [11] Q&A Session Summary Question: Mobile prepaid revenues in Mexico recovery drivers - Management indicated that the recovery is closely related to economic conditions and expects continued improvement in mobile revenues [14] Question: Margin expansion in Chile, Uruguay, and Paraguay - Management confirmed that margin expansion is due to operational improvements and synergies, with no one-off accounting effects [15] Question: Potential acquisitions in Brazil and Chile - Management is evaluating opportunities in both regions, with a focus on strategic acquisitions that make sense for the company [18][19] Question: Competitive environment in Mexico - Management acknowledged strong competition but emphasized their superior network quality and customer service as key differentiators [22] Question: Performance drivers in Brazil's prepaid segment - Management noted that ARPU in Brazil's prepaid segment is growing at 7.3%, driven by increased consumption and network investments [26] Question: Competitive market update for Colombia and Chile - Management highlighted ongoing investments in fiber and network improvements, with expectations for continued growth despite competitive pressures [30][34]