AMX — América Móvil, S.A.B. de C.V.

América Móvil Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: MXN 245 billion, up 3.4% year-over-year (6.2% at constant exchange rates).
• Service Revenue: Increased by 5.3%.
• EBITDA: MXN 95 billion, up 4.2% nominally and 6.9% at constant exchange rates.
• Net Profit: MXN 19 billion, a fourfold increase from the previous year, translating to MXN 0.32 per share or $0.35 per ADR.
• Free Cash Flow: MXN 82 billion, a nearly 40% increase year-over-year.
• Net Debt to EBITDA Ratio: 1.52x, showing a downward trend.
• Subscriber Growth: Added 2.5 million wireless subscribers, with 2.8 million postpaid gains and 298,000 prepaid losses.

2. Strategic Updates and Business Highlights

• Subscriber Base: Total wireless subscribers reached 331 million, with strong growth in postpaid subscribers, particularly in Brazil and Colombia.
• Broadband Expansion: Connected 524,000 broadband accesses; broadband revenue in Mexico grew from 2% to 4%.
• CapEx Outlook: Targeting 14% to 15% of revenues for CapEx in 2026, approximately MXN 6.8 billion to MXN 7 billion.
• Shareholder Returns: MXN 45 billion in distributions, including MXN 12 billion in share buybacks.

3. Forward Guidance and Outlook

• CapEx: Expected to remain at 14%-15% of revenue over the next 2-3 years.
• Growth Expectations: Anticipated continued growth in mobile and broadband segments, supported by strong consumer demand and effective promotions.
• Debt Management: Focus on reducing net debt while maintaining a healthy balance sheet.

4. Bad News, Challenges, or Points of Concern

• Economic Environment: The U.S. government shutdown created uncertainty in economic activity, impacting employment and economic indicators.
• Prepaid Subscriber Losses: Notable losses in prepaid subscribers in Brazil and Chile.
• Regulatory Environment: Concerns about competitive pressures and regulatory changes, particularly in Mexico where asymmetric regulation exists.
• Nonoperating Expenses: A significant increase in pretax nonoperating expenses (MXN 7.9 billion) raised questions about future financial management.

5. Notable Q&A Insights

• CapEx Strategy: Management confirmed a consistent CapEx percentage for the coming years, indicating a focus on maintaining investment levels.
• M&A Activity: The company opted out of a bid for Telefonica's Chilean operations, citing regulatory complexities and high leverage concerns, while expressing readiness for future consolidation opportunities in the region.
• Competitive Landscape: Management acknowledged the evolving competitive environment in Latin America, emphasizing the need for strategic investments in technology and customer service to maintain market position.
• Currency Impact: The management discussed the complexities of managing multiple currencies and the potential effects on cash flow, emphasizing a balanced approach to capital allocation.

This summary encapsulates the key aspects of América Móvil's Q4 2025 earnings call, highlighting financial performance, strategic initiatives, future outlook, and challenges faced by the company.