AMX America Movil SAB de CV

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 third 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 third quarter of 2024 are presented in accordance with IAS29 reflecting the effects of inflationary accounting as the Argentinean 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

Consolidation of ClaroVTR

On October 3^rd, we received approval from the National Economic Prosecutor’s Office of the Republic of Chile (Fiscalía Nacional Económica) to take control of ClaroVTR, currently a 50:50 joint venture with Liberty Latin America. AMX will consolidate ClaroVTR from October 31st, 2024, upon the conversion into equity of AMX’s outstanding loans to ClaroVTR. Upon this capitalization, AMX will hold approximately a 91% ownership interest in ClaroVTR.

MSCI ESG Ratings upgrades AMX to “A”

On August 20^th, MSCI ESG Ratings upgraded América Móvil’s rating to “A” from “BBB” as a result of the company’s sustainability efforts and, in particular, progress made in cybersecurity practices and data privacy policies across our operations, as well as improvements in corporate governance. This marks the third ratings upgrade by MSCI in three years.

Access Lines

1.4M postpaid net adds

In the third quarter we added 1.8 million subscribers, of which 1.4 million were postpaid. Brazil contributed 291 thousand, Colombia 159 thousand, and Mexico 108 thousand postpaid subscribers. Our prepaid segment obtained 468 thousand net additions, led by Colombia with 251 thousand, Eastern Europe with 213 thousand and Argentina with 200 thousand, but registered 343 thousand disconnections in Brasil and 136 thousand in Mexico. As of September our wireless subscriber base reached 315.8 million, including 126 million postpaid clients. Our postpaid base increased 5.9% year-on-year and our prepaid base 1.4%

327k new broadband accesses

In the fixed-line segment we connected 327 thousand broadband accesses: 116 thousand in Mexico, 59 thousand in Brazil and 44 thousand in Argentina. However, we disconnected 83 thousand voice lines and 30 thousand PayTV units. We ended the quarter with 74.6 million RGUs, that comprise 33.2 million broadband accesses, 12.8 million PayTV clients, and 28.5 million landlines. Fixed-broadband accesses rose 5.2%.

(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 M2M 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

Interest rates in the U.S. and several other countries continued their downward trend in the third quarter, with 10-year U.S. Treasury yields falling 85 basis points from the beginning of the quarter through mid-September to a low of 3.61%. The decline was driven by concern about the cooling U.S. economy and its corresponding impact on the labor market. It prompted the Fed to finally declare its first discount-rate reduction in 2.5 years—a period in which it brought about a five percentage point increase in such rate to 5.25%. By the end of the third quarter 10-year yields had bounced back to under 3.8%. Shortly after the end of the quarter they had risen above 4% on the back of unexpectedly strong non-farm payroll numbers for September, wiping out half of the reduction that had taken place through mid-September. Throughout the quarter central-bank discount rates fell by 50 basis points in Mexico and Peru, one percentage point in Colombia and 25 basis points in Chile, but were going up once again in Brazil, by 25 basis points.

Third quarter revenue totaled 223 billion pesos, with service revenue expanding 11.3% in Mexican peso terms, partly reflecting the depreciation of the Mexican peso vs. most of the currencies in our region of operations—with the notable exception of the Brazilian real—relative to the year-earlier quarter: approximately 10% vs. both the dollar and the euro, 8% vs. the Colombian peso and 12% vs the Peruvian sol. At constant exchange rates service revenue was up 5.5% year-on-year, an improvement on the 4.7% rate observed the prior quarter.

Mobile service revenue growth accelerated somewhat from the prior quarter to 5.2%, posting its best performance in over a year on the back of postpaid revenue growth. On the fixed-line space broadband revenue decelerated slightly from the prior quarter, to 7.4%, whereas corporate networks revenue growth, at 10.1%, was faster than in the precedent quarter.

Brazil and Colombia continued their trend over the last year of posting improved revenue growth every quarter. Central America presented better growth rates than in the precedent two quarters while Mexico and Peru maintained their pace.

Third quarter EBITDA came in at 89.4 billion pesos, an 11.9% increase over the year-earlier quarter in Mexican peso terms and 6.3% at constant exchange rates. Adjusted for one-offs associated mainly with tower sales, EBITDA was up 7.3%, its second fastest pace in at least five quarters.

Our operating profit reached 47.4 billion pesos. It was up 14.2% in Mexican peso terms and 10% at constant exchange rates. Adjusted for one-offs as mentioned above, our operating profit increased 12.1% at constant exchange rates.

We posted a net profit of 6.4 billion pesos in the quarter, nearly trebling the one obtained a year before. It was equivalent to 10 pesos cents per share or 11 dollar cents per ADR. It came about on the back of a higher operating profit, as mentioned above, but also as comprehensive financing costs came down 4.8% relative to the same period of 2023, to 28.3 billion pesos.

Our net debt ended September at 433 billion pesos, having increased by 47.3 billion pesos relative to December 2023, partly reflecting the impact of the depreciation of the Mexican peso on our non-peso financial obligations. In cash flow terms our net debt increased by 19.7 billion pesos. In the nine months to September, our capital expenditures totaled 86.7 billion pesos, shareholder distributions 32.9 billion pesos—split almost evenly between share buy-backs and dividend payments—and reduced labor obligations in the amount of 23.7 billion pesos. Our net debt excluding leases to EBITDAaL ratio ended September at 1.34x LTM EBITDA.

⁽¹⁾ Adjusted for extraordinary items, particularly the sale of towers in 2023 by Claro Peru, Claro Dominicana and Telmex; and a portion in 2024 by Telmex.

n.m. Not meaningful.