America Movil Sab de CV (AMX) Q3 2026 earnings call transcript

Good morning, everyone. Thank you so much for joining us today to discuss our third quarter financial and operating results. We have on the line Mr. Danie Sash, CEO, Mr. Carlos Del Camoreno, PFO, and Mr. Oka Nohauke, CEO.

Thank Daniella. Welcome, everyone. Thanks for being here in the 3rd quarter of 2026 conference call. Carlos is going to make a summary of the results.

Thank you, Daniella. Good morning, everyone. Well, we had the third quarter with all prices, all prices rising to a new peak in mid-September. For the third quarter, Mr. Byron of the WTI crude. Long-term inflation expectations were duly affected, pushing not in red top. With the yield on 10-year Treasury notes, accelerating its gains from the low rate of forward.

These factors, together with a particular strong non-front payroll report for that month, that exceeded expectations, were the main drivers of the first decision on September 16th to increase its policy rate by 25 basis points. The higher rates in the U. S. support a recovery of the dollar best of some countries in our region of populations. The Mexican peso gave up in September. All the gains had posted as a dollar in the first two months of the quarter, 20 period down, approximately 2.1%. The Colombian peso managed to gain 3% as part of it, while the Brazilian Braille and the Euro remained practically unchanged over the quarter.

In the third quarter, we added 3.1 million prospects of drivers, roughly the average of the prior four quarters, as the city led the way with 3,000 conditions.

Colombia followed with 3,000, but who took over 29,000? Mexico with a 24,000 and Argentina with a 26,000 subscribers. In the prepared segment, we recorded 5 million net disconnections primarily reflecting subscriber base cleanups in Mexico and Colombia. Not withstanding the cleanups, we managed to post net prepared subscriber gains in Eastern Europe, Argentina, Central America, Ecuador, that totaled 745,000 subscribers.

In the fifth-line segment, we connected 3,000 new broadband accesses. But Celia was the main contributor with 94,000 additions, followed by Colombia with 67,000 and Argentina with 53,000. State-TV net additions total 50,000 units with Eastern Europe and Central America accounting for most of the growth.

Mobile posted and fixed goals and accesses remained the main drivers of customer growth, increasing 8.9% and 5.50%, respectively, compared to the year-level quarters.

America nearly cleared quarter revenue, total 2.51 billion pesos, 7.6% year-on-year increase, with the EBITDA reaching 40.8% margin, as 0.5% responses to this from a year before. At constant exchange rates, service revenue was up 5.3% and EBITDA 6.7%. EBITDA continued to grow faster than service revenue.

Service revenue growth resulted from mobile service revenue increasing 6.3%, very much in line with the pay for service drivers' recorders, and fixed-line revenue growth accelerating to 3.7% from 2.7% in the prior quarter. On the mobile platform, post specific weather increased 7.5% year-on-year at constant exchange rates, also very familiar to that of the private recorders, while pre-grid revenue growth 4.3%, slightly less rapidly than the pace of the preceding quarter, but very much in line with the prior quarter.

Post-grid value growth accelerated in Mexico, Brazil, and Colombia to 8.8% and a half percent and 12% respectively. Growth rates in Chile and Peru also moved up to 11.5% and 7.5% respectively.

Operating profit, as for pre-grid service revenue growth, we celebrated in Mexico, partly reflecting the subscriber registration process mandated by the regulator, as well as in Brazil and North Korea, but accelerated in Eastern Europe, Central America, Caribbean, and Ecuador.

Operating profit, total of $57 billion pesos, of 13.9% from the year-early quarter. Our patient ETA growth, as depreciation, and administration charges goes only 3%. Although net interest expense were down 11.2% year-on-year, our comprehensive financing cost increased, as a result of foreign exchange losses of 3.6 billion pesos in the period, compared to foreign exchange gains the prior year.

We posted a net profit of 24 billion pesos in the quarter, 7% higher than in the year-early quarter, bringing our year-to-date net income to 72 billion pesos.

In the nine months to September, I will cover that I extended to a total 7.7 billion pesos. They were fully funded by our cash flow, which also enabled us to reduce net debt in cash flow terms by 34 billion pesos and distribute 27 billion pesos to our shareholders by way of share-by-backs and dividends. Our labor obligations came down by 13 billion pesos in the quarter.

Our free cash flow was 41% higher than that of 2025, which in turn had been 47% greater than that of the year before, at which year the cash flow went to the reduction of our net debt.

Such that at the end of the quarter, our net debt stood at 400 billion pesos, excluding leases. It was equivalent to 1.21 times in the 3-bit after leases, down from 1.5 times at the end of 2025.

So with this, I will pass the throwback to Daniel so that we can do the generalization.

Thank you.

Thank you, Carlos.

And we can start with the Q&A. At this time, I would like to remind everyone in order to ask a question, please press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster.

Thank you, Marcelo. Well, you were mentioning the rest of the way, where we provided ads for the period 26 to 28, right? Here, where we stated a leverage ratio that we intended to remain within, which was 1.2 times to 1.5, which is basically where we have been.

And we said this has also to accommodate the share buyback with all the distributions plus the M&A. In this quarter, we are going to have an important amount that we have to accommodate in the M&A restaurant, which is the consolidation of desktop.

You know, the total value that we have announced started 1.4 billion AI. Although we still have not completed the 10-day offering, that should be completed probably just after the 10 of the year. But for the most part, most of the 4 billion will be accounted for in the last quarter. And then also we have the last payment of the event, which will take place in a couple of weeks, which is in the neighborhood of 17 billion pesos.

So those are the things that we have in the immediate time, in the immediate period. But the guidance that we provide is basically for the next two years as well. And we don't have anything more in the M&A pipeline all than the acquisition in Peru that is waiting for regular to re-approval likely to be received until the second half of the year. And we don't have anything else in the M&A.

In Colombia, we think that it could be at the end of this year. And on the Mexico broadband, Oscar can talk a little bit more, but I can tell you that we have been growing good the last quarters. And what we do this last quarter, we clean a little bit also our base. People who are not consuming or not consuming, and we clean it up. So that's the reason why revenues are increasing.

And the methods are not as previous quarters. I don't know what's going on. It is what you're saying. But we increase the speed of all the customer base to be more competitive in the market. And we are focused more in terms as well, and not selling the customer base. That's why we had a good increase in the various.

And we have how many means if they are already in a fiber? 94% of the customers are already connected with fiber.

Well, talking a little bit about Argentina. Well, yes, I think it was a very good quarter for Argentina. We have been investing for a long time. We have a very good 5G network. We have also a lot of broadband.

The telephonic and telecom has merged. I think they already approved it, but they have been. We know that since maybe one year. So I think it's a good market. The economy is improving. Things are going good with us. So we are taking advantage of that. So we have good quality, good networks, good distribution, a very good data center for corporate businesses.

And that's the reason why we are growing there.

I know the question of the taxes paid. They basically have to do partly with some money that we receive back from the tax authorities in some countries, Mexico, partly something having to do with some limited measures that we've done. And then something having to do basically with the cash flow during the year, how much you pay throughout the year. This is how much you pay in the annual amount. So whenever you have paid too much during the year based on the formula that we have in different countries, I think this is the most important thing.

Then at the moment that you present your annual returns, then you basically get some credit back. So that basically has to do with that. Nothing special.

And adding a little bit more on Argentina. So we're there. They approve the marriage. And the remedies, we understand that there's a new company called Metropel. There's going to move 6 million subscribers. There's only, there's not going to be a new network. It's like, I think it's going to be like an MDNO 200,000 broadband subscribers. And they have to do it in 18 months off. Well, there's a lot of things going on in Argentina, but we are well prepared to still grow and that we are good in corporate business. We have a very good fiber network doing good in broadband and in 5G and spectrum and the network also quality.

We're doing okay. So let's see what's going to happen.

Well, it's difficult to say. I think AT&T was a stronger competitor to a lot of things. Well, it's one of the biggest companies in the US and do a lot of things in Mexico. I think that is also going to be a strong competitor. We think that's going to happen. But at the end of the day, we need to do what we have been doing for a long time. We need to have the best network, good investment, 5G coverage, good quality.

We have almost 700 customer care centers, good to take care of the people, our customers. All of this is distribution. We tell it's a very strong brand in Mexico. So all of that, we need to follow that and still do what we have been doing. We don't know exactly what they are going to do, what they are going to change or what's going to be their strategy. Let's see what's going to happen when they authorize and take the operation of the company.

As I told you, AT&T used to be a strong competitor. And I'm sure that it is going to be also a strong competitor. So we still need to do what we have been doing, reinforce our investment, take, train our people, more sales people, more distributed to all of that. We have to still focus on that and do what we have been doing for the last years.

Yeah, go ahead. Sorry, what do you see this year? We have a less CapEx and it's exactly because what you are saying, we give CapEx in dollars to the subsidiaries and then the movement of the currencies make that we have less CapEx in pesos. So at this time, we don't need to move the CapEx to do more.

Some countries are exceeding a little bit their budgets or the ones they are not exceeding. So we all over all, we said 7 billion, 5% plus, 5% less and it's where we are. And I think for next year, we're going to have the same 7 billion dollars or something like that. And we are still making. I don't know if we need to do a little bit more or a little bit less. We haven't finished our budget, but no major changes in CapEx. So that's what we have been doing and what we budgeting for next year.

Great.

Well, let's talk a little bit about Brazil. We have a lot of competition. That's no doubt. There's a lot of competitors. There are different competitors in mobile, and we have other competitors in broadband fiber TV. So it's a lot of competition there. So if you were telling, I think in mobile, we are stabilizing a little bit the promotions, but we don't know what is going to happen on the third quarter. No, it's coming Christmas and all of that. So we don't know what is going to happen. I don't know what the competitions are going to do, but I think all of them want to have a long term view, not only. So maybe they have promotions, but there will be some promotions not reducing price for a year or two years.

So let's see what we're going to get in the fourth quarter in promotions. But that's what it is. In the broadband business and the TV business, there's a lot, as you know, there's a lot of companies with the fiber.

They call them fibros in ISPs in Brazil. So we are growing good. We grow 90 broadband subscribers. That's good for us. And maybe we have more promotions that we used to do, but those promotions should have some time and then the revenue will come later. We are working very hard because we are just taking desktop in first of October.

So I think we have a lot of synergies and we're going to have also good synergies on the commercial side where we can sell to these customers or the products that we have. And to some cost pay or mobile customers that we have, we can sell also where we have fiber, these new because desktop has around 4.8 million, have some passes and made more than half of that. We are not in those areas.

So we are going to have a lot of opportunities there and that's what we are focusing. So these next six months, we want to integrate the company and take advantage as much as possible to all these desktop subscribers that we have and the mobile that we don't have a footprint of fiber to give and offer fiber to them. And just comment, we haven't made any changes in the location of people and revenues as to the different services. So, you know, between broadband and pay TV and voice, we haven't made any changes in the way that we allocate those revenues.

I think we have an agreement with them and they can do whatever they want to do inside this agreement. Okay, but no, they can decide their prices alone.

Let's say they do the price. I don't think we're going to reduce the cost. So they are going to manage their prices on the area that they can do it. So that's what the agreement that we have with new sale. I think they are going good. They have good customer base and they are still growing and doing good as an MBA and also new sale is doing.

On the promotions and in WhatsApp and prepaid promotions, sometimes it's very difficult to increase the price of the card. So I think it's better if you want to increase the prices to take out some promotions. And that's what we do on the WhatsApp inside the card. So you take promotions and it's a little bit increasing the price. So I think that's more or less the way to do things in prepaid because if you sell at the 100 rails, a card is difficult to do it at 103.

So it's not so easy. You can do it, but it's not so easy. So sometimes it's better. I'm not saying that always. Sometimes it's better to reduce the consistency of the market. The race, the race, the time of the card. So that's the way to increase price or take out some promotions or increase the card or take out some gigas or put. So there's a lot of things.

And in post paid wealth, you can increase that. I don't know. I can like to you if I can tell you what is going to be our prices strategy for next year. Of course, there's inflation in Brazil costs are increasing, but I don't know if we are going to be allowed. A loud means competition to increase or not increase prices. So still we haven't discussed that.

And we are sure that costs are increasing, but we don't know if we are going to increase or when we are going to increase prices or take out some promotion. So that's what we have. What I can tell you is that the promotions in in broadband are high and where we're going to still and we will remain competitive and do what we need to do to be competitive in all the segments in Brazil. So that's what we do and what we're going to do this year and next year.

Well, we're talking about post paid. I think in post paid, we're doing an excellent job. I can tell you that on the customers that are coming to renew their plan in our customer care centers are moving, half of them are moving to a better plan. That's a good output. And that's the reason why revenues are increasing. We have a source of revenues, new customers, but other source of revenue is that the customers are jumping to a new plan. And that's better for them, better for us. The second is the migration from prepaid to post paid. We're having more and since the registration of the number, I think more people are coming from prepaid to post paid.

And people is using also more from 4G to 5G. So I think we are the only ones who have a very good 5G and coverage network in Mexico. And that's what you are seeing. So that's more or less what we have in post paid. And in prepaid, well, we have these connections and other disconnections that sometimes it's people that only use one time. They take the car and move it. So those are people that we are disconnecting. And we still are in the process of registering all the numbers. It's every 15 days. It's a new number that people have to register until the end of December.

And well, it's still a long way to go there. But yes, some people are not people that are consuming are not also ones to register. But well, that's what we have there. And I think at the beginning, we're going to have a little bit of reduction on the prepaid revenues. But in the mid-run, I think this is going to recover. So that's what we have. So people are taking more time to register the number.

But at the end of the day, I hope, and I don't think that people is going to stay without a phone or without connected because of the registration. So it's going to take time. Maybe in the short term, we can have like a low down a little bit on the revenues on prepaid, but in the near and long, then we're going to recuperate that. So that's what that's the way I'm seeing things. In the other side, on post-pays, things are going very well, and people is consuming and understanding and doing good.

Just to what I'm really saying, our app will post it up to both in Mexico, in the corner. We see that for the last three years, at least we are seeing a continuous acceleration of post-parapu both, which is quite significant.

Yes.

Yes. We're having more corporate. The corporate is helping a lot on the peaks on all these data center clouds, and all these services is growing very good this quarter in the big side, and also is doing good in the mobile. So we are, yes, as you are asking, yes, it's being good, the corporate customers.

Well, in Colombia, if we go back five years ago, when one enters, they do crazy promotions with a lot of data, the character of the market, but well, that pass. And we have been, since that, we have been growing and we have been doing good. We do, and we focus as we're focusing in Mexico, a good network, good customer retention, good upselling. We have a lot of upselling there, very good upselling.

And one of the things that we have is we have the biggest 5G network, because they launch the, well, they sell the spectrum. And we do, we start to do 5G since the beginning. So we don't have to wait to do the network. We already do invest in the 5G network. So we were the first, the starters in Colombia, in the market, and that is helping us. That's the reason we have a very good coverage. We have a good network and we're growing also very, very, very good. So that's what you are seeing in Colombia.

Well, in which country? Across your markets, which one will be the largest one coming? I think we have, I don't remember exactly, but I think we have something in Honduras for the end of this year to do 5G, but nothing. I don't remember other option.

I think we're doing very good in Ecuador. Ecuador is growing good. We have a strategy on foreplay. We're doing fiber. It costs us a lot of time to understand the peaks business in Ecuador. I think we have been having maybe two years doing good, increasing our fiber footprint, taking good customers, giving TV. So all of that is working good.

And the economy of Ecuador is also improving. That's why we have a very good increase in the, sorry, pre-pay, the ARP also increasing revenues. So things are going better in the economy and we are doing better in peaks and in mobile. Starting also in corporate customers there. So while Ecuador has been doing good, all Central America, we have outstanding results in Central America, growing in all the countries, moving a lot more on peaks, moving in 5G.

All of Central America is doing good, reducing a lot costs and expenses. All these small countries, we are really not the small countries. And something that we haven't talked about is that we have been improving a lot in cost and efficiencies with some of AI platforms that we think are very convenient for us. So we are understanding more of our customers and doing a lot more things on the cost centers, cost side and all of that. So we are having like a big strategy and cost control with all AI platforms and Oscar can talk a little bit on that.

Now, as I mentioned, we are focused on the main agents and health systems with this cost. And we are more focused on customer interactions and some part of the network that hasn't helped us to reduce costs in cost centers and maintenance in the network. And constant the costumer faster and solving the problem faster on the coin. Let's say in the broadband AI is helping us to go faster to solve the problem to attend our costumer.

All of these things were improving and we have like a three year plan to improve every day on all of these areas.

So that's Peru is doing also good. We have more competition, but Peru is doing also good. We have the third operator that is very aggressive in pricing, but we have convergence. We have all of that and we hope that we can close our company that we buy and consolidate it as soon as possible in Peru also.

It's a very significant block doing extremely well. And, you know, it's another with a very stable currencies and a very resilient cost.

Well, I think they already have, they are going to have all the services and I hope the government will allow us to do all the services also. So I think they should do it. No. There's no reason not to do it.

Thank you.

Oh, just thank everyone for being in the call. Thank you very much.