América Móvil(AMX)2025-02-12 21:10Financial Data and Key Metrics Changes - The fourth quarter revenue increased by 18% in Mexican peso terms to MXN 237 billion, with service revenue growing by 19.1% and EBITDA by 16.4% to MXN 91 billion [9][12][15] - Net income for the fourth quarter was MXN 9.5 billion, a decrease of 47.5% year-on-year due to higher comprehensive financing costs, totaling MXN 30 billion, with nearly half attributed to foreign exchange losses [15][16] - Net debt at the end of the year stood at MXN 488 billion, with a net debt to EBITDA ratio of 1.44x [16][17] Business Line Data and Key Metrics Changes - Postpaid subscribers increased by 2.1 million in the fourth quarter, with Brazil contributing 655,000, Colombia 178,000, and Mexico 141,000 [7][9] - Prepaid platform saw a net disconnection of 1.3 million, with Brazil losing 1.8 million but Mexico gaining 302,000 [8][9] - Fixed line segment added 320,000 broadband accesses, with 132,000 in Mexico, 75,000 in Brazil, and 45,000 in Argentina [8] Market Data and Key Metrics Changes - The Brazilian real depreciated by 13.7% against the dollar, followed by the Chilean peso at 11% and the euro at 7% [6] - Mobile service revenue grew by 6.2% year-on-year in the fourth quarter, with fixed line service revenue climbing 7.4% [13][14] Company Strategy and Development Direction - The company is focused on modernizing networks and expanding 5G coverage, particularly in Chile, with a CapEx guidance of around $250 million for 2025 [23][120] - The management expressed confidence in the corporate segment, expecting it to grow significantly, with a focus on adding value through bundled services [48][80] Management's Comments on Operating Environment and Future Outlook - Management noted a stronger-than-expected labor market and economic activity, leading to revisions in expectations regarding future policy rate reductions by the Fed [6] - The company is cautious about the economic slowdown affecting prepaid recharges, particularly in Mexico [60][128] Other Important Information - The company plans to begin reporting Chilean results in the first quarter of 2025, consolidating ClaroVTR's operations [119] - The pension plan outflows are expected to decline over the next decade as fewer people are being pensioned [84] Q&A Session Summary Question: CapEx guidance for the year and concerns about the MVNO deal with Nubank - Management confirmed they are on track with the three-year CapEx guidance, including Chile, and expressed no concerns about potential cannibalization from the Nubank deal [22][25] Question: CapEx guidance and competitive environment in Brazil - Management stated they expect to remain at the low end of the CapEx guidance and noted a stable competitive environment in Brazil [30][31] Question: Pricing environment for Mexican broadband and M&A appetite in Argentina - Management indicated no plans to increase prices for broadband and stated they are open to M&A opportunities in Argentina but have not engaged in discussions [44][52] Question: Prepaid revenue trends and competitive dynamics in Mexico - Management reported stable competition in prepaid and noted a slowdown in the economy affecting recharge trends [60][128] Question: Regulatory environment in Mexico and Telmex's broadband goals - Management acknowledged the new regulatory environment and expressed a desire to regain market share in broadband [68][70] Question: Growth in corporate networks and pension plan outflows - Management reported a 12.3% growth in corporate networks and expects pension outflows to decline in the future [80][84] Question: Mobile competition in Brazil and debt profile - Management described the competitive landscape in Brazil as stable and detailed their approach to managing debt exposure [98][104]