AMXVF America Movil Sa De Cv Mexico (PK)

Mexico City - América Móvil, S.A.B. de C.V. (“América Móvil”) [BMV: AMX] [NYSE: AMX, AMOV], announced today its financial and operating results for the first quarter of 2024.

⁽¹⁾ Net Income / Average Shares Outstanding

⁽²⁾ 20 shares per ADR

⁽³⁾ EBITDA / Average Shares Outstanding

Note

The reported figures for Argentina corresponding to the first quarter of 2024 are presented in accordance with IAS 29 reflecting the effects of inflationary accounting as the Argentine economy is deemed to be hyperinflationary. All comparisons at constant exchange rates for América Móvil’s consolidated figures will exclude Argentina to ensure consistency.

Relevant Events

Proposals for the shareholders’ meeting

On March 19^th, 2024 we announced that our Board of Directors will submit for approval at our annual shareholders’ meeting the following proposals: 1) the payment of an ordinary dividend of MXP$0.48 per share, payable in two equal installments and 2) the allocation of 15 billion pesos to the share-buyback fund for the April 2024 - April 2025 period. The meeting will be held on April 29^th, 2024.

MxP 17.5Bn five-year Global Note

On March 22^nd, 2024 we issued the third offering under our Global Peso Notes Program. It was a five-year, 10 1/8% bond in the amount of 17.5 billion pesos. Whereas local investors are the dominant group in this Program, nearly a third of the bonds in this transaction were placed with international investors. The notes issued under this Program since June 2023 total 54.5 billion pesos.

KPN exchangeable bond matured

On March 2^nd, 2024, our EUR 2.1 billion bond exchangeable into KPN shares matured. Prior to maturity we received notification from all bondholders exercising their right to call the KPN shares at the strike price of EUR 3.1185. We handed over our KPN shares and have ceased to be a shareholder in KPN.

Access Lines

1.3M postpaid net adds

In the first quarter we added 1.5 million wireless subscribers of which 1.3 million were postpaid clients, including Brazil with 555 thousand, Austria with 260 thousand, Colombia with 126 thousand and Mexico with 105 thousand. On our prepaid platform we gained 263 thousand subscribers in the period. Colombia added 378 thousand, followed by Argentina with 226 thousand and Brazil with 146 thousand. On the other hand, we disconnected 584 thousand subscribers in Central America mostly on account of a cybersecurity incident that affected our ability to activate clients.

562k new broadband accesses, best performance in four years

On the fixed-line segment we connected 562 thousand new broadband accesses—the best performance in four years—Mexico was the main contributor with 325 thousand clients, followed by Brazil with 92 thousand and Colombia with 23 thousand. Voice lines and PayTV units fell by 40 thousand and 112 thousand, respectively.

Our postpaid base +6.4% YoY and fixed-broadband accesses +4.8% YoY

Our subscriber base reached 312 million wireless subscribers at the end of March, of which 123 million were postpaid clients. In addition, we had 74 million fixed-line RGUs, including 33 million broadband accesses, 13 million Pay TV units and 29 million land-lines. Our postpaid base increased 6.4% year-on-year while fixed-broadband accesses were up 4.8%.

⁽¹⁾ Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated.

⁽²⁾ Includes A1 Digital subscribers.

⁽¹⁾ Fixed Line, Broadband and Television (Cable & DTH).

⁽¹⁾ Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated.

América Móvil Consolidated Results

The strong rally in interest rates that took place in the latter part of 2023 came to an end in the first quarter as strong employment readings and other indications of a still vibrant economy kept pushing back the timing of expected reductions by the Fed of its discount rate and cutting back the expected number of such reductions to be had this year. By the end of March, 10 year U.S. Treasury yields had increased 32 basis points from December, to 4.20%, and they would continue climbing into the second quarter. The Mexican peso, which had depreciated slightly vs. the U.S. dollar at the beginning of the year, rubbed off the interest rate increases and resumed its appreciating trend gaining ground vs. the dollar and all other currencies in our region of operations. The Brazilian real observed a depreciating trend vs. the dollar throughout the quarter while the Colombian peso remained stable.

Our first quarter revenue totaled 203.3 billion Mexican pesos, with service revenue expanding 1.1% to 170.9 billion pesos and other revenue declining 71.7% to 2.4 billion pesos. The latter figure reflects extraordinary revenue in the first quarter of 2023 on account of the sale of towers by the Dominican Republic and Peru; this quarter there were practically no tower sales. At constant exchange rates service revenue increased 5.0%, up from 3.7% the precedent quarter.

The Mexican peso rose against all currencies in our region of operations except for the Colombian peso. On a year-on-year basis the Mexican peso rose 9.9% vs. the U.S. dollar, 8.6% vs. the euro and 4.7% vs. the Brazilian real. Vis-à-vis the Colombian peso, it fell 9.5% in the period.

We saw an acceleration of service revenue growth on both the fixed-line and the mobile platforms, which improved sequentially from 3.0% to 5.1% on the former and from 4.2% to 4.9% on the latter. Mexico was the main driver behind fixed-line revenue expansion, which went from 5.9% in the precedent quarter to 9.7% in the current period; the fastest rate of growth in years. It was followed by Peru, where the revenue growth rate nearly doubled sequentially, from 4.4% to 8.0%. Eastern Europe stayed very much on trend, continuing to post the fastest year-on-year increase of 13.6%. Brazil reported a 1.0% increase, its best showing in seven years, as the headwinds from PayTV of the last five years gave way to solid broadband revenue growth.

Within the fixed-line platform corporate networks revenue—which represent 21% of fixed-line service revenue—was the most dynamic business line, climbing 13.5% year-on-year, followed by broadband services that was up 6.4%.

On the mobile platform Mexico, Brazil and Peru were the countries where revenue growth picked up the most sequentially, going from 4.5% to 5.8% in Mexico, from 7.1% to 8.5% in Brazil and from 2.6% to 4.9% in Peru. Colombia returned to positive mobile revenue growth after two quarters of yearly declines.

EBITDA came in at 80.6 billion pesos. It was 2.6% lower than a year before on account of the extraordinary tower sales of the first quarter of 2023 mentioned above that affected the annual comparison. At constant exchange rates, and adjusting for the tower sales, EBITDA increased 7.5% year-on-year, its fastest pace in eight quarters, buoyed by strong subscriber and revenue growth on both platforms and consistent control over costs and expenses.

Our operating income reached 40.8 billion pesos, a 7.6% decline from the year before; correcting for the tower sales, it was up 2.5% in Mexican peso terms and 13.0% at constant exchange rates.

Our comprehensive financing costs totaled 13.7 billion pesos in the first quarter; they were close to zero a year before on the back of strong foreign exchange gains that had amounted to 13.7 billion pesos. This year we booked 1.7 billion pesos in foreign exchange losses.

We registered a net profit in the amount of 13.5 billion pesos that was equivalent to 22 peso cents per share and 25 dollar cents per ADR. The difference vis-à-vis the year-earlier quarter is mostly explained by the aforementioned tower sales and the difference in the foreign exchange gains/losses.

Our net debt excluding leases ended March at 392 billion pesos, having increased by 7.0 billion pesos from December. In cash flow terms we obtained net financing in the amount of 17.4 billion pesos which helped us fund our capital expenditures, 21.8 billion pesos, and cover 4.8 billion pesos in share buybacks and 6.5 billion pesos in labor obligations. In the first part of every year we face working capital requirements that also need to be financed. At the end of March, our leverage ratio stood at 1.5 LTM EBITDAaL.

⁽²⁾ Adjusted for extraordinary items, particularly the sale of towers in 2023 by Claro Peru and Claro the Dominican Republic; and a small portion in 2024 by Telmex.

n.m. Not meaningful.

⁽¹⁾ Includes current portion of Long Term Debt.