América Móvil(AMX) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q3 2024, total revenue reached MXN 223 billion, with service revenue growing 11.3% in Mexican peso terms and EBITDA increasing by 11.9% [10][12] - Net profit for the quarter was MXN 6.4 billion, nearly tripling from the previous year, equivalent to MXN 0.10 per share or $0.11 per ADR [12] - Net debt at the end of September was MXN 433 billion, reflecting an increase of MXN 7.3 billion since December 2023 [13] Business Line Data and Key Metrics Changes - The company added 1.8 million subscribers in Q3, with 1.4 million being postpaid [8] - Mobile service revenue growth accelerated to 5.2%, while fixed line service revenue rose by 5.9% [11] - Broadband revenue growth decelerated slightly to 7.4%, while corporate networks revenue expanded by 10.1% [11] Market Data and Key Metrics Changes - In Mexico, prepaid segment net additions were 468,000, with Colombia leading at 251,000 [9] - Brazil and Colombia showed improved steady revenue growth, while Central America outperformed previous quarters [11] - The company experienced a slight increase in churn in Mexico attributed to economic conditions [31] Company Strategy and Development Direction - The company is focusing on upgrading its network to fiber, with 84% of customers now connected to fiber [20] - There are no current M&A plans, with a focus on organic growth and technology upgrades [52] - The company aims to maintain its competitive edge through digitalization and customer care improvements [52] Management's Comments on Operating Environment and Future Outlook - Management noted that prepaid revenue growth remains stable despite economic challenges, with postpaid revenues performing well [25][26] - The outlook for 2025 is positive, with expectations of continued growth in both prepaid and postpaid segments [23] - The company is optimistic about maintaining its market position and improving service quality across Latin America [58] Other Important Information - The company received its third ESG rating upgrade by MSCI, reflecting improvements in corporate governance and data security [13] - Capital expenditures for the year are on target at approximately$ 7.2 billion [17] Q&A Session Summary Question: Update on competitive dynamics in the fixed broadband market in Mexico - Management acknowledged increased competition, particularly from Telmex, which has upgraded its network significantly [18] Question: CapEx guidance for 2024 - The target remains around $7.2 billion, with no significant changes expected [17] Question: Trends in prepaid and postpaid subscriber activity - Prepaid activity is sensitive to economic conditions, while postpaid is performing well with upgrades and increased data offerings [23][25] Question: Competitive dynamics in Brazilian broadband - The company maintains a leading position in Brazil, with ongoing upgrades to deliver high-speed internet [31] Question: Net debt strategy and FX impacts - The company is not looking to take on additional debt and aims to maintain its leverage ratio [38] Question: CapEx plans for Chile - CapEx for Chile will be consolidated starting November, but no significant changes are expected [41] Question: Shareholder remuneration and CapEx direction amid currency depreciation - No changes are anticipated in shareholder remuneration or CapEx targets despite currency fluctuations [50] Question: M&A opportunities in Latin America - Currently, there are no M&A opportunities being pursued, with a focus on organic growth [52] Question: Pricing dynamics in mobile for Brazil - The focus will be on upselling rather than direct price hikes to enhance ARPU [56]