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• Revenue: MXN237 billion, up 18% in Mexican peso terms.

• Service Revenue: Increased 19.1%.

• EBITDA: MXN91 billion, up 16.4%.

• Postpaid Subscribers: Added 2.1 million, with significant contributions from Brazil, Colombia, and Mexico.

• Prepaid Subscribers: Net disconnections of 1.3 million, with notable losses in Brazil.

• Fixed Broadband Accesses: Increased by 320,000.

• Operating Profit: MXN46.4 billion, up 11% year-on-year.

• Net Income: MXN9.5 billion, down 47.5% year-on-year.

• Net Debt: MXN485 billion, with a net debt to EBITDA ratio of 1.44 times.

• Capital Expenditures: MXN131 billion.

• Warning! GuruFocus has detected 3 Warning Signs with AMXOF.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• America Movil SAB de CV (AMXOF) added 2.1 million postpaid subscribers in the fourth quarter, with significant contributions from Brazil, Colombia, and Mexico.

• Fourth quarter revenue increased by 18% in Mexican peso terms, with service revenue growing by 19.1% and EBITDA by 16.4%.

• The company experienced a 5.3% year-on-year increase in its postpaid base and a 4.7% increase in fixed broadband accesses.

• Mobile service revenue expanded by 6.2% year-on-year in the fourth quarter, with notable growth in Brazil, Colombia, Ecuador, and Peru.

• The company is well-prepared for future growth in the corporate market, with strong investments in data centers and alliances across Latin America.

Negative Points

• The company registered 1.3 million net disconnections on its prepaid platform, with Brazil experiencing a significant cleanup of its profit space.

• Net income for the fourth quarter was 47.5% lower year-on-year due to higher comprehensive financing costs, including foreign exchange losses.

• The depreciation of regional currencies against the dollar, particularly the Brazilian real and Chilean peso, impacted financial results.

• Fixed service revenue growth decelerated in key markets like Mexico, Brazil, and Colombia compared to previous quarters.

• The slowdown in the Mexican economy has affected prepaid recharge rates, indicating potential challenges in consumer spending.

Q & A Highlights

Q: Do you have a specific CapEx guidance for this year, considering the sharp FX movements? Also, could you discuss the MVNO deal with Nubank in Brazil? A: We are on track with our three-year CapEx guidance, including Chile. We expect to finalize network modernization and 5G coverage in Chile this year. Regarding Nubank, we are not concerned about cannibalization of our prepaid subscribers and are happy with the partnership.