AMX — América Móvil, S.A.B. de C.V.

América Móvil Q1 2026 Earnings Call Summary

1. Key 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.

2. Strategic 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.

3. Forward 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.

4. Bad 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.

5. Notable 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.