América Móvil Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: MXN 237 billion, up 2.1% YoY; at constant exchange rates, revenue rose 6.1%.

Service Revenue: Increased by 0.6%, with mobile service revenue growth at 6.4% YoY.

EBITDA: MXN 94 billion, up 3.8% YoY, leading to an EBITDA margin of 40%.

Net Income: MXN 23.4 billion, a 25% increase YoY, translating to MXN 0.39 per share and $0.44 per ADR.

Debt: Financial debt reached MXN 527 billion, with net debt at MXN 437 billion, resulting in a net debt to EBITDA ratio of 1.41x.

2Strategic Updates and Business Highlights

Subscriber Growth: Postpaid subscribers grew by 8.8%, and broadband accesses increased by 6%.

CapEx: MXN 21.6 billion invested in CapEx, with a total CapEx plan for 2026 around $7 billion.

Market Expansion: Continued growth in mobile service revenue, particularly in Mexico and Colombia, with a focus on enhancing customer care and technology.

M&A Activity: The company is exploring acquisition opportunities in Latin America and Eastern Europe, with a focus on leveraging competitive positions.

3Forward Guidance and Outlook

Growth Expectations: The company anticipates continued growth in mobile and broadband services, driven by economic recovery and improved customer spending.

CapEx Strategy: Plans to maintain CapEx around $7 billion annually, with potential adjustments based on currency fluctuations.

Debt Management: Aiming for a net debt to EBITDA ratio of around 1.3, balancing between deleveraging and capital returns through buybacks.

4Bad News, Challenges, or Points of Concern

Operational Issues in Argentina: Challenges in expanding fiber networks in Buenos Aires due to regulatory hurdles and competition.

Working Capital Increase: Higher inventory levels due to supply chain concerns and rising equipment costs, which could impact cash flow.

Competitive Pressures: Increased competition in broadband, particularly from Televisa's fiber upgrades, which may affect future net adds.

5Notable Q&A Insights

Capital Allocation: Management emphasized the need for a balanced approach between debt reduction and capital returns, with ongoing assessments of M&A opportunities.

Partnerships and Technology: Discussions about potential collaboration with Starlink for direct-to-cell services, indicating openness to innovative technologies.

Market Dynamics: Insights into subscriber registration requirements in Mexico, which may lead to a cleaner subscriber base but could also impact new activations.

Colombia's Performance: Positive trends in Colombia attributed to investments in 5G and effective marketing strategies, despite competitive pressures. Overall, América Móvil reported solid financial results with a focus on growth and strategic investments, while also navigating challenges in specific markets and competitive landscapes.