In This Article:
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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America Movil SAB de CV (AMXOF) reported a 14.1% year-on-year increase in revenue for the first quarter, reaching 232 billion pesos.
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The company added 2.4 million postpay subscribers, with significant growth in Brazil, Colombia, and Mexico.
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Fixed broadband connections increased by 446,000, with Mexico being the largest contributor.
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Operating profit rose by 10% year-on-year, totaling 44.8 billion pesos.
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Net income increased by 38% to 18.7 billion pesos, reflecting strong financial performance.
Negative Points
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The Mexican economy is experiencing a slowdown, with private consumption declining by 1% year-on-year.
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The company faced a net loss of 1 million prepaid subscribers, primarily in Mexico and Brazil.
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There is uncertainty surrounding new telecommunications laws in Mexico, which could impact spectrum distribution.
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Prepaid revenue growth is slowing down due to weak economic activity in Mexico.
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The company is facing aggressive competition from MVNOs in the Mexican prepaid market, affecting subscriber growth.
Q & A Highlights
Q: Can you discuss the new telecommunications law in Mexico and its potential impact on spectrum distribution and market concentration concerns? A: The new telecommunications law and changes in competition law are currently being discussed in Congress. We are monitoring these proposals closely and providing feedback. We believe we are not the dominant player in the market anymore, as shown by our market share in fixed broadband and TV. We expect the laws to be enacted in the next two months, and we will discuss further details once they are finalized. (Respondent: Unidentified_3)
Q: How do you expect tariffs on handsets to impact your business in Mexico and Latin America? A: Currently, there are no changes in tariffs on handsets in Mexico and Latin America. The exchange rate has improved slightly, making handset prices better. We do not expect any tariff changes in the coming months. (Respondent: Unidentified_3)
Q: What are your thoughts on the competitive environment for prepaid services in Mexico, and how is it affecting your business? A: The slowdown in the Mexican economy is impacting prepaid services, as consumers are spending less. Additionally, aggressive promotions by MVNOs like Byte are affecting the market. Our strategy focuses on high-value customers, and we are seeing better numbers in number portability. We expect the market to stabilize once promotions end. (Respondent: Unidentified_3)