América Móvil Q3 2024 Earnings Call Transcript

Quartr
Provided by Quartr
October 16, 2024

There are 14 speakers on the call.

Operator

Thank you. Now I will turn the call over to Ms. Daniela Lequana, Head of Investor Relations to begin.

Speaker 1

Thank you. Good morning, everyone. Thank you for joining us today to discuss our Q3 financial and operating results. We have on the line Mr. Daniel Haj, CEO Mr.

Speaker 1

Carlos Garcia Moreno, CFO and Mr. Oscar Munroca, COO.

Speaker 2

Hi, good morning. Welcome to America Movil 3rd quarter financial and operating report and Carlos is going to make a summary of the results.

Speaker 3

Thank you, Daniel. Good morning, everyone. Well, integration, the U. S. And Sierra Leone countries continued their downward trend in the 3rd quarter with 10 year U.

Speaker 3

S. Pressure yields falling 85 basis points from the beginning of the quarter to mid September to a low of 3.6. The decline was driven by concern about the cooling U. S. Economy and its corresponding impact on the labor market.

Speaker 3

It prompted the Fed to finally clear its 1st discount rate reduction in 2.5 years, a period in which it brought about a 5 percentage point increase in such rate. Shortly after the end of the Q3, 10 euros had bounced back to more than 4% on the back of unexpectedly strong nonfarm payroll numbers for September, wiping out half of the reductions that have taken place through mid September. Throughout the quarter, central bank discount rates fell by 50 basis points in Mexico and Peru, 1 percentage point in Colombia and 25 basis points in Chile, but we're going up once again in Brazil by 25 basis points. In the Q3, we added 1,800,000 subscribers, of which 1,400,000 were posted. These include radio subscribers as well as NTM accesses, dongles and T Mobile and devices.

Speaker 3

Australia contributed 430,000 of them, Brazil contributed 291,000 Colombia, 59,000 and Mexico, 108,000 postpaid subscribers. Our prepaid segment obtained 468,000 net additions led by Colombia with 200 and 51,000 Eastern Europe with 213,000 and Argentina with 200,000 but registered 343,000 connections in Brazil and 136,000 in Mexico. In the fixed line segment, we connected 337,000 broadband accesses, 115,000 in Mexico, 59,000 in Brazil and approximately 43,000 in Argentina and Central America. We disconnected 83,000 landlines and 30,000 petrochem units in the quarter. Mobile postpaid and fixed broadband continued to be the main drivers of actual growth with 5.9% and 5.2% respectively year on year.

Speaker 3

3rd quarter revenue totaled MXN 223 1,000,000,000 with service revenue expanding 11.3 percent in Mexican peso terms and EBITDA 11.9%, partly reflecting the depreciation of the Mexican peso versus most of the currencies in our region of operations with the notable exception of the Brazilian trade. Approximately 10% depreciation versus both the dollar and the euro, 8% versus the Colombian peso and 12% versus the Peruvian sol. At constant exchange rates, service revenue was up 5.5% year on year, an improvement on the 4.7% rate of share in prior quarter, while adjusted EBITDA increased 7.3%. Mobile service revenue growth accelerated 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, service revenue rose 5.9%.

Speaker 3

Broadband revenue decelerated slightly from the prior quarter to 7.4%, whereas corporate networks revenue expanded 10.1% faster than the same quarter. The decline in pay TV revenue continues but have become less and less significant. Brazil and Colombia continued their trend over the last year of posting improved service revenue growth every quarter, while Central America presented better growth rates than in the preceding 2 quarters. Mexico and Peru maintained the pace from prior quarters. Our operating profit reached MXN 47,400,000,000.

Speaker 3

It was up 14.2 percent in Mexican peso terms and 10% at constant exchange rate. Adjusted for one offs as mentioned above, our operating profit increased 12% at constant exchange rate. We posted a net profit of MXN6.4 billion in the quarter, nearly trailing the one off time the year before. It was equivalent to MXN0.10 per share or MXN0.11 per ADR and came about on the back of higher operating profit, as mentioned before, but also as comprehensive financing costs came down 4.8 percent relative to the same period of 2023 to Ps. 28,000,000,000.

Speaker 3

Our net debt ended September at Ps. 4.3 billion, having increased by MXN 47,300,000,000 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 MXN 19,700,000,000. In the 9 months to September, our capital expenditures totaled MXN86.7 billion, shareholder distribution of MXN2.9 billion, split evenly almost evenly between share buybacks and dividend payments and we'll reduce our labor obligations in the amount of MXN23.7 billion, practically a lot of these at tailwinds. Our net debt excluding leases to EBITDA after lease ratio ended September at 1.34 times last month of total EBITDA, practically at the lower leverage limit that we committed to maintain in our Investor Day.

Speaker 3

And finally, I'd just like to highlight that we received our 3rd ESG rating upgrade by MSCI in our many years, reflecting improvements on corporate governance, security and data privacy. With that, I would like to pass this back, Rodrigo, back to Ralf Daniels. Thank you.

Speaker 2

Thank you, Carlos, and we can start with the Q and A.

Operator

Thank you. Our first question goes from Lena Okurama of Goldman Sachs. Lena, please go ahead.

Speaker 4

Hey, thank you for taking my questions. The first one is if you have any updated views on the competitive dynamics of the fixed broadband market in Mexico. And my second question would be on your CapEx guidance. Is your target for the year still at about $7,100,000 Thank you.

Speaker 2

The second question, can you repeat the second question? We don't hear you. I'm

Speaker 4

sorry. On the CapEx guidance for 2024?

Speaker 2

Well, on the CapEx, I think we are on target for this year. We said that we're going to do around $7,200,000,000 and that's our target. And we are more or less on that range. So no big difference on that. And on the dynamics on the fixed broadband in Mexico, Oscar can talk a little bit about that.

Speaker 3

Thank you, Juan, the dynamics as we've been seeing through the years, the competition has been increasingly very hard in Mexico. Telmills has been reactive with investments on the upgrading the network. And now 83.7% of the fixed broadband are already connected to fiber. And not only that, has been working to bundle different streaming videos in order to do packages that are really, really well accepted in the market. Even last week, we launched a new package that we increased the speeds, the entry level speed from 60 to 80 with the same tariffs and we include Netflix 6 months free.

Speaker 3

We improved Claro Video and Claro Drive bundled in the package. So we believe that it I mean, we have 1 week of this product and the reception we see that is very good in the market. So the competition is still, but I think that we already upgraded the network in a good level to be really competitive in the market. Another segment that is working pretty nice in Mexico is the B2B market. On the B2B market, all related to cloud computing, cybersecurity, horizontal solution has been received very well in the market as well.

Speaker 3

So that leveraged to improve revenues in the

Speaker 2

channels. Only to add something that Oscar is saying, just to be clear, I think we have been putting a lot of fiber the last years, but not only putting fiber, we have been upgrading our customers to fiber. And as Oscar is saying, maybe 85% 84%. 84% of our customers are with fiber, good speeds, good quality. IT has been improving a lot in Mexico.

Speaker 2

It's one of the things that we have been doing, improving IT, so we can give better customer service, install faster, time to repair also faster. So we have been improving also on the quality of service. So Mexico in fixed and in mobile is being very competitive. We haven't increased any price for a long time. We have been giving more for that.

Speaker 2

And it's but we feel that we have right now very good advantage on the quality, capacity, on the networks, on the in the mobile, on the coverage, on the quality and the centers, customer care centers. So all overall, we think we're doing good in Mexico.

Speaker 4

Thank you. Thank

Operator

you. The next question goes to Walter Piecyk of LightShed Partners.

Speaker 5

Walter, please go ahead. Thanks. I think just first, if I can start with a macro question. Obviously, there's some questions kind of what's going to happen going forward and into 2025. You have many data points in terms of what you're seeing with your customers, forget about Europe, just throughout Latin America, in terms of recharges and subscriber activity and upgrades of phones.

Speaker 5

Can you just give us a general sense of kind of your kind of what you've seen most recently and what you think or what your outlook is for the coming quarter and 2025?

Speaker 2

Well, it's a very interesting question. I think I can divide into prepaid is very different than postpaid. I think prepaid depends a lot on how the economies are doing in Latin America. So people once recharge depending on the money that they have, the purchase power that they have. So that's one thing they need.

Speaker 2

There's a lot of prepaid that are moving to 5 gs in Mexico, in Latin America. So we have been putting 5 gs all overall, but depending a lot on the economy and the way the economy in each country is doing. And on postpaid, I think we have been doing very good. We have been upgrading our customers, giving them better handsets, more data and they are paying more. So that's the trend that we have been doing for the last 2 years since we have been putting 5 gs.

Speaker 2

And I hope that this trend will continue the same way for 2025.

Speaker 5

So I think in the first part of your question, Daniel, you were saying that it does depend on the economy. So from what you're seeing currently, the economy is still instigating very good recharge rates on the prepaid side that has not started to cool at all?

Speaker 3

Yes. If you look at the rates of growth of our prepaid revenues in Mexico, they were 4.1% in the quarter. Last quarter, they were 4.3% of the identical. A year ago, they were at 4.1%. So we haven't really seen as much of a slowdown as some people had expected to see it on account of slowing down of the economy.

Speaker 3

And as Daniel said, I think postpaid revenues are also holding up. So I think that generally, we have seen more sensitivity I think probably in Brazil because as you know, Brazil's economy has been accelerating sharply of late and that has had an impact in the sector definitely. But for the most part, I think we're not seeing very major changes. This is a very defensive industry as you know and revenue tend to hold up pretty good in all Unity scenarios. Yes.

Speaker 2

And a lot of things that you do, I think people needs to use more the phone and they are going to use more and more the phone. So if they can have a better phone, they can have 5 gs, faster networks, more data, that's what you are going to see in the next years, not only next year. So in the next years, everything is going to go through the phone.

Speaker 5

Thanks. And then just one quick technology question follow-up, I guess. Could you just refresh us on who you expect to be your partners in terms of connecting your customers' phones to satellite constellations?

Speaker 2

I think you might have had maybe I'm wrong, but I

Speaker 5

thought you had an agreement with AST at one point. I'm just curious kind of how you see your market partnership there in terms of satellite direct connectivity to the phones of your customers throughout Latin America?

Speaker 2

Well, I think what there's 2 partners. So what we're using right now, we're using some partners, not only 1. I think we have 2 or 3 partners. But I think we are always reviewing which partner is giving us the best services to connect in some rural areas the sell side. So for the mobile backhaul, we use satellite.

Speaker 2

And then there is the other part that is when we don't have any coverage there that the phone will connect there and that's that. So these two different services, we are reviewing right now. We already have in the first one connecting the sell sites 2 or 3 different vendors. And but there's always we're always looking to have better quality and reduced costs. So that's moving every day.

Speaker 2

So I don't know exactly what we have which ones we have Oscar right now.

Speaker 6

Well, we have Star 1. We have

Speaker 2

Star 1.

Speaker 3

We have Star Link. We have Stadex. We have AST, we are doing AST as well.

Speaker 7

So for SpaceX, SpaceX

Speaker 5

you have an agreement or you're exploring a possible agreement with StarLink?

Speaker 3

We already have an agreement for resale.

Speaker 2

Their service and we are exploring an agreement so they can connect the backhaul. We already use in Chile for mobile backhaul. Backhaul, okay. Yes.

Speaker 8

Great. Thank you. Thank you.

Operator

Thank you. The next question go to Marcelo Santos of JPMorgan. Marcelo, please go ahead.

Speaker 9

Hi, good morning. Thank you for taking my questions. I wanted to double click a bit on broadband dynamics. The first question would be in Mexico. You had good net adds, but it was a bit less than in the Q2.

Speaker 9

Is this because you had lower gross adds

Speaker 6

or

Speaker 5

because there was a bit of higher churn

Speaker 9

in the market? Just wanted to understand if the market is getting more competitive. And the second question is if you could comment on the competitive dynamics of Brazilian broadband is a more general question.

Speaker 3

The second one?

Speaker 2

In Brazil broadband.

Speaker 3

Yes, we experienced on the second and third quarter a little bit more churn. Mexico. In Mexico, we attribute due to the economics. So yes, we've been both. We've been seeing this 4th quarter in the same part that we had the last two quarters.

Speaker 3

And in Brazil, in broadband, we are the leaders in high speed Internet in broadband. Even we were awarded the best Wi Fi in Latin America in Brazil, delivering our services. So we are the leaders of market share as well in Brazil. And as you know, there is a lot of competition from the ISPs, but we keep growing the base. We already upgraded all the data, all the network to deliver 1 gigabit speed to DOCSIS 3.1 and we have almost 11,000,000 compasses with fiber to the ground.

Speaker 3

So I think we are now very well positioned. And another thing in Brazil is that we've been working convergence that has been working pretty nice adding phones on mobile and pay TV. We're reaching to launch a new way to pay TV and it's combined with broadband. It's a new package of I won't call pay TV, I think it's a different product, it's like more entertainment hub.

Speaker 10

And

Speaker 3

what we did is to really include the channels that have more audience plus Netflix with advertising plus Global Play plus Apple Plus with a very good, good conditions to the market. So we believe that we'll tie the broadband and we will keep going growing in broadband.

Speaker 2

And just to give you like a sense in Mexico, Q3 of 'twenty three, we do 20,000 net tax in broadband. 4th quarter of 2023, 165,000 1st quarter of 2024 this year, 325,000 then 2nd quarter this year, 148,000 and 3rd quarter 116,000. So we hope we can maintain these 100 and 20 or 150 or 100 for the next quarter. So I think we're prepared, as we said. And it's a very competitive market.

Speaker 2

That's why we have also some churn because it's a very competitive market. But I think we're prepared to try to recuperate a little bit of the market share that we'll do. We already did last year.

Speaker 9

Okay. Very clear. Thank you very much for the answers.

Speaker 11

Thank you.

Operator

Thank you. The next question goes to Gustavo Farrias of UBS. Gustavo, please go ahead.

Speaker 6

Hi, everyone. Thanks for taking my questions. 2 from my end. First one, we've seen some negative net adds in mobile in Brazil, of course, driven by prepaid. Just want to check what you guys expect in terms of trends going forward and of course, in terms of competition in the region as well in mobile specifically?

Speaker 6

My second one is regarding we've seen some increase in the net debt this quarter. And if you could share some color on your debt strategy and how you're looking at FX impacts going forward as well? Thank you, guys.

Speaker 2

Well, let's start with Brazil. I think in Brazil, we're doing very good. We are moving a lot of prepaid subscribers to postpaid subscribers and that's the reason why we have a negative as you said, but we have a very good and very positive trend in postpaid. Other thing is that we're trying to have our prepaid base very clean. So we want to have that.

Speaker 2

So we have been very aggressive if customer is not consuming, not to count as a customer. So that's what we are doing and there's a rule, but we have been very strict on that. And moving a lot of these prepaid to postpaid subscribers has been very successful. And the second question, which one is

Speaker 6

Regarding, how do you see that strategy and FX impacts going forward?

Speaker 2

Regarding what?

Speaker 1

You have a bad connection, Marcelo. Can you please repeat the question or send it via chat or e mail to me?

Speaker 6

Yes, yes, of course. I can repeat the question. I'm just wondering what you guys how you guys see your debt strategy regarding FX impact

Speaker 3

going forward? I think we are not really looking at taking on additional debt. As you can see, we have reduced our leverage. We have very limited refinancings to do next year. It's probably the year with the least amount of maturity that we have.

Speaker 3

It's probably less than €1,000,000,000 I think that we have been doing very successful at trying to drive the growth of our Mexican global peso bonds. And we've already issued in a bit more than a year, MXN 55,000,000,000, which roughly time north of USD 3,000,000,000 and we expect that we can continue to consolidate this program. And we will also be looking at raising a bit more financing in some of our local markets. In fact, we've been doing a little bit of this in Peru, Colombia and Brazil. So I think that's going to be more the strategy to focus a bit more on local currency generally.

Speaker 3

But again, it's basically in the context of refinancing existing debt, which we expect to hopefully to maintain some levels. We do have a short term debt and I think that's a variable that we can play with. We will be adjusting it downwards very nicely in the next few months. Thank you.

Speaker 2

Thank you, Carlos.

Operator

Thank you. The next question goes to Ernesto Gonzalez of Morgan Stanley. Ernesto, please go ahead.

Speaker 7

Hi. Thanks for taking our question. It's just one. Can you please provide any color on your CapEx plans for Chile? Thank you.

Speaker 2

It's too early to see. As we said in our results, we're going to start to consolidate Chile 1st November. We're going to have 92,000,000,000. So we're to consolidate also the CapEx. We still haven't finished the CapEx for next year.

Speaker 2

So we don't know, but it's not going to be a big difference on what we So we consolidate the revenues. We're going to consolidate the CapEx, but it's not going to change too much the idea that we have. So I don't have the final number, but it's not going to change

Speaker 7

significantly

Speaker 2

the CapEx that we have budget for next year.

Speaker 7

Crystal clear. Thank you.

Operator

Thank you. The next question goes to Pani Kanamouli of HSBC. Pani, please go ahead.

Speaker 10

Thanks for taking my questions. So the first one is that LatAm currencies have depreciated significantly in the last 6 months. So do you see any change in your shareholders' remuneration of CapEx direction than what you did in your Analyst Day in May? The second question is, Rajvi, on the constant currency growth rate for the fixed broadband. You had given a number of 5.9%, wanted to check which countries have registered a better than average growth rate among your major countries?

Speaker 10

Thank you.

Speaker 2

We don't understand very good your question. But the second one, when you said the average growth on broadband, I think the average growth the growth on broadband has been better every quarter. I think it's doing good. In each country, we have been doing good. I think all overall, we're seeing a little bit less competition on these fiber companies that they wholesale networks that they do all around Latin America and that help us to be more aggressive and to increase our sales.

Speaker 2

And so on broadband, I think it's still low penetration in broadband in Latin America and we're going to see good growth the next years, okay, in broadband. And the first one, we don't understand what was your question.

Speaker 10

So I think for the second question, like so you had 5.9% fixed service revenue growth, but all the major markets that you had, including Mexico, Colombia, Brazil, all have registered revenue growth that is lower than 5.9%. So I was just trying to understand which geographies have grown above the 5.9% fixed service revenue growth? That's the first question.

Speaker 2

We don't have here, but you can discuss with Daniela and she can give you exactly where we are higher than C5.9 and where we are a little bit lower. But I think Brazil, I don't know what's the growth in Brazil?

Speaker 1

Outperformance on the It's Brazil, Colombia, EUR 7,200,000,000

Speaker 2

Remember that broadband also includes corporate the corporate segment there. So what you can talk to Daniel and disclose that.

Speaker 3

Very quickly, it's 8.8 for Brazil, 7.2% for Colombia, 15.7% in Eastern Europe.

Speaker 1

8.6% Central America.

Speaker 3

8.6% Central America, yes.

Speaker 1

And 10.9% in Dominica.

Speaker 3

So that's fixed broadband growth of 7.4% for America Movil. On the corporate networks side, we have 10% for America Movil, including 12.8% in Mexico, 7.9% in Brazil, 14.1% in Colombia and 7.5% in Central America. Okay.

Speaker 10

Okay. I'll connect with Daniel on this. So the first question was that because you have seen depreciation of currencies in across LatAm in the last 6 months, is there any change in the view of shareholder remuneration or CapEx that I guess that you had in during your Analyst Day in May?

Speaker 2

No, no. We don't have any change on CapEx. We've finished this year, so the CapEx for this year is done. And we're reviewing the CapEx of next year, but we don't see any change on that. And also on the shareholder remuneration, we haven't had any difference also.

Speaker 2

So we're in the target that we have. What was the buyback that we have for all this year, Carlos? No, from January to today's Q3, we have About MXN 14,000,000,000. MXN 14,000,000,000.

Speaker 11

Okay. Yes.

Speaker 10

Thanks. Thanks everyone.

Speaker 8

Thank you.

Operator

Thank you. The next question goes to Alejandro Levin of Santander. Alejandro, please go ahead.

Speaker 11

Hi, good morning, everyone. Can you hear

Operator

me?

Speaker 11

Okay. Thank you for taking my questions. So first of all, congrats on the results. I mean, you're seeing solid top line results. I mean, now the currency was a headwind, now it's a tailwind.

Speaker 11

You're seeing rising profitability, stable CapEx, low leverage. So it sounds like the starts are sort of aiming for a very positive outlook for the end of next year and especially all of next year, right? So congrats on that. And second, well, it seems that you have a very comfortable position in terms of competition in the LatAm region and maybe in other markets. So my question is regarding M and A possibilities, right?

Speaker 11

I mean, there are some opportunities in the very near term in LatAm. But in general, like strategically, what kind of assets or regions would you be looking at? Able

Operator

to have?

Speaker 2

Well, I think on M and A, we're not seeing anything. And we don't think we have any opportunities in Latin America. In M and A, it's very difficult. We are over there. So in Latin America, we want to grow and put our CapEx and penetrate more and have the best technology.

Speaker 2

And that's what we have been doing for the last 3 or 4 years. So what we have been seeing today is everything that we do the last year, we have been digitalizing more the company. We have been taking care of our customer care. We have been very careful on cost and expenses. We have been upgrading all our platforms.

Speaker 2

We have the biggest 5 gs network in Latin America is American Mobile 5 gs Network. So all overall, we have the latest technology, and that give us better quality, more speed and better costs than our competitors. So that's more or less where we are focusing, and that's what we are going to do for next year. So that's what we have been saying over the last years.

Speaker 6

But

Speaker 2

no M and A planning right now. We're open for the opportunity, but we don't have anything right

Speaker 7

now.

Speaker 2

The only thing is consolidate Chile, that we're going to consolidate Chile, and we have to work a lot there. There's a very, very competitive market there. So as we said, we have been upgrading all our mobile network. We have been making an agreement with the wholesale OnNet, the wholesale company. We also have fiber there.

Speaker 2

So we are finalizing all the mergers that we have with Liberty and get all the synergies that we have there. So we are in a big process in Chile that we have for the next year.

Speaker 11

Okay. Thank you. Understood. Congrats on the results. Thanks.

Speaker 5

Thanks. Thank

Operator

you. The next question goes to Luca Brendon of Bank of America. Luca, please go ahead.

Speaker 12

Good morning, everyone. Thank you for taking my questions. I have 2 here. The first one on Colombia. Results accelerated this quarter, reached the 3 year high in terms of service revenue growth.

Speaker 12

Is this already reflecting somewhat a more rational market after the recent changes we saw in this region? And then the second one for Brazil. How are you seeing pricing dynamics in mobile going forward? There's still potential for further price hikes. And when we're thinking about ARPU expansion for next year, should you be focusing more on the upselling or indirect price hikes?

Speaker 12

Thank you.

Speaker 2

We're always focusing more on upselling our customers because if you upsell your customer, you give more to your customer and they pay you more. So I think it's much better upsell your customer than increase price, okay? I don't know what we're going to do in Brazil right now, but I think we are focusing more on upsell and giving more data to all our customers, moving prepaid to postpaid. And that's I think that's the strength in Brazil.

Speaker 3

And in Colombia, just on the service revenue growth, I think it's important to highlight how it's improved. But it's not only mobile, it's been mobile and fixed. So just to give you an idea, first of all this year, we were growing 0.4% in mobile. Now we're growing at 4.0%. In field line, we were growing at 2%.

Speaker 3

In service venues, today, we're growing at 5.2 percent. So I think it's important to see that this recovery is taking place all throughout the country, not only mobile, but it's been very minimal.

Speaker 2

And only to add to something that Carlos said on Colombia is that we are the biggest network, 5 gs network in Colombia. We take advantage of the frequencies, the options, and we have been putting that for maybe 8 months before the auction. And it's been very we have maybe 20% of our traffic right now in 5 gs in Colombia. So that gives a very good quality and very good service to our customers. And they spend more because they use more data.

Speaker 12

Very clear. Thank you for the answers.

Operator

Thank you. The next question go to Carlos Siquila of BTG Pactual. Carlos, please go ahead.

Speaker 7

Hi, good morning. Thank you for taking my question. We today, we it's a quick one. We model for AMX to generate a little more than $5,000,000,000 in free cash flow next year. And I was wondering with leverage close to the bottom of the range, is there any reason why you wouldn't return this free cash flow to investors in 2025, all of it or a

Speaker 10

good part of it at least? Thank you.

Speaker 3

This is Carlo. Well, as you recall, we met you guys for the Investor Day in May and we established some a band for our leverage ratio and we said the band was going to be 1.35 to 1.5 and we are exactly at the lower end of the band. So I think that as I had mentioned before, we don't really have any notion of continuing to reduce leverage much further from where we are, maybe a little bit on the short term debt.

Speaker 10

Okay, perfect. Thank you.

Speaker 3

Thank

Operator

you. The next question goes to Carlos La Regueta of ITU. Carlos, please go ahead.

Speaker 8

Hi, thank you. Good morning. And my question in this case will be for Argentina, please. I would like to be reminded of what are your plans there in fixed revenue? Obviously, that's growing very nicely because I know the footprint is growing.

Speaker 8

I know you're doing mostly fiber. So if you can talk a little bit about that and also how is the wireless business evolving? Obviously, it was very positive this quarter, but some color on the market trend would be helpful. Thank you.

Speaker 3

Very good that you talked a

Speaker 2

little bit to ask a question on Argentina. I think Argentina is doing okay. We have been still investing. We don't stop anything the last years on Argentina. So we put fiber when things are doesn't look so good.

Speaker 2

And we're growing

Speaker 3

how many

Speaker 2

customers on broadband we have right now? 1,000,000. No, more than 1,000,000. And we have been growing and having 1,400,000 and we are upgrading our network, mobile network and I hope Argentina will reduce more the inflation and do better on the economic and then we're going to have a very good company there. Sorry, we have been growing from being the 3rd one in mobile.

Speaker 2

In customers, I think we are the first one right now. So I'm not so sure what customers, we are the first one almost the first one in mobile right now and growing in the digital.

Speaker 8

Okay. Thank you. And how about your 5 gs plan? Do we have the necessary spectrum? Are you still waiting for an auction to happen?

Speaker 2

Yes, yes. We are putting 5 gs and we are putting more sell sites in 5 gs and that's the way we're going to grow there. So we're investing. We have a CapEx that Comercio de Espinato is focused on assigned to Argentina and we're doing all the things with the CapEx that we have there.

Operator

And the next question goes to Camilla Koga of BBI. Camilla, please go ahead.

Speaker 13

Hi, guys. Thanks for taking my question. My connection is not good, so I apologize if you have already answered this. I have a quick one on the news and note of Nubank. If you could give us more details about it.

Speaker 13

I want to have an idea of how aggressive Nubank can be if the agreement of Nubank should offer prices lower than Clarus prices? Thank

Speaker 2

you. Look, we don't hear you very well, but let's I'm going to add a little bit on the other question, the last question that they asked me is talking about Argentina because we always talk a lot on Mexico, Brazil, on Colombia. But I think all around America, mobile, we have been doing very good. If we talk about Peru, in Peru, we have been growing, growing EBITDA, growing with fiber, upgrading our networks, giving more plants and all of that. Then if we go to Central America, Central America has been having a very

Speaker 3

good sorry?

Speaker 4

Sorry, my question is on the

Speaker 3

sorry.

Speaker 2

On Central America, we have been also doing very good, excellent gaining share, putting fiber, putting more coverage and the growth has been very good, the growth on mobile and the growth on peak. Then if we go to Dominican Republic also American Mobile has been exceptional in Dominican Republic. Then we go to Eastern Europe. Eastern Europe has been with a very good growth expanding. We used to have only mobile.

Speaker 2

We have fixed all around with broadband. So in all the different countries, we have been doing very good and gaining market share. So just when they talk about Argentina, it's not only Argentina, I think all the other countries has been having an exceptional develop for the last year. So sorry to not to answer your question, but I want to give these comments because we focus in 2 or 3 countries, very important countries, but all the other ones are also important and doing very, very good also. Sorry, your question again?

Speaker 13

My question was on the Navios Novo Nordbank, if you could give us more details about it. I want to have idea of how aggressive NuBank could be and if maybe the agreement will take profit.

Speaker 1

No, Tania. We cannot fully understand anything that you're saying. Do you want to e mail me your question?

Speaker 4

Okay. So we can talk later.

Speaker 2

Okay. Thank you.

Speaker 4

Thank you. Thank you.

Operator

Thank you. That's all the questions that we have time for today. I will now turn the call back over to Daniel Hash for any final remarks.

Speaker 2

Thanks to everyone for the call and see you next quarter.

Speaker 3

Bye bye. Thank you.

Powered by Quartr
Earnings Conference Call
América Móvil Q3 2024
00:00 / 00:00