America Movil Q3 2025 Earnings Call Transcript

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October 15, 2025

Key Takeaways

  • Positive Sentiment: We added over 3 million postpaid subscribers in Q3, boosting our postpaid base by 8.1% year-over-year with Brazil accounting for half of the gains.
  • Positive Sentiment: Third-quarter service revenue grew 6.2% at constant FX, with mobile service revenue up 7.1%—the fastest pace in two years—driven by strong prepaid and postpaid performance.
  • Negative Sentiment: Fixed-line service revenue growth decelerated to 4.7% from 7.9% in Q2, as corporate networks revenue slowed sharply to 3.5% growth amid contract volatility.
  • Positive Sentiment: Free cash flow rose 47% year-over-year to ₱53 billion pesos, enabling ₱29 billion in shareholder distributions and a ₱16 billion reduction in net debt to 1.55× EBITDA.
  • Neutral Sentiment: We are evaluating potential acquisitions including a joint bid with Entel for Telefónica Chile and select Brazilian ISPs, though these discussions remain in early due-diligence stages.
AI Generated. May Contain Errors.
Earnings Conference Call
America Movil Q3 2025
00:00 / 00:00

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Operator

Good morning. My name is Kevin, and I will be your conference operator today. At this time, I would like to welcome everyone to the América Móvil third quarter 2025 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply raise your hand. If you are connected via telephone, please press star, followed by the number nine on your telephone keypad, and star, followed by the number six to unmute. I will now turn the call over to Ms. Daniela Lecuona, Head of Investor Relations.

Daniela Lecuona
Head of Investor Relations at América Móvil

Good morning, everyone. Thank you for joining us today to discuss our third quarter financial and operating report. We have today on the line Mr. Daniel Hajj, our CEO, Mr. Carlos García Moreno, our CFO, and also Mr. Oscar Von Hauske, our COO.

Daniel Hajj
CEO at América Móvil

Thank you, Daniela. Welcome to América Móvil third quarter of 2025 financial and operating report. Carlos is going to make us a summary of the results.

Carlos García Moreno
CFO at América Móvil

Thank you, Daniel. Good morning, everyone. In the third quarter, with the U.S. economy finally appearing to slow down, as evidenced by a sharp decline in the number of new jobs created, the Fed went ahead with the much-anticipated reduction in its policy rate, which was brought down by 25 basis points in September. Since mid-July, long-term interest rates have been on a downward trend, with 10-year rates falling from nearly 4.5% to 4.1% at the end of the quarter. With lower interest rates and the expectation of further interest rate cuts by the Fed, the U.S. dollar lost ground versus practically all currencies in our region of operations, declining 2.7% versus the Mexican peso, 2.5% versus the Brazilian real, and 4.1% versus the Colombian peso. The dollar remained practically flat versus the euro, with the Argentine peso the only major exception in the period that depreciated versus the dollar.

Carlos García Moreno
CFO at América Móvil

We added just over 3 million postpaid clients in the quarter, with Brazil contributing practically half, as you can see in the chart, 1.5 million, followed by Colombia with 251,000, Peru with 198,000, and Mexico with 98,000. On the prepaid platform, we recorded net disconnections of 31,000, as you can see on the right-hand side of this slide, resulting from losses in Brazil, Ecuador, and Chile, which offset net subscriber additions attending several countries, including Argentina, 253,000, Colombia, 237,000, and Mexico with 136,000 in the prepaid. In the fixed-line segment, we gained 536,000 broadband accesses, including 211,000 in Mexico. That's roughly half of what we had overall in América Móvil, 86,000 in Brazil, 56,000 in Argentina, and 51,000 in Colombia. At the end of September, we had 408 million accesses, of which 140 million were postpaid clients and 79 million were fixed-line IUUs.

Carlos García Moreno
CFO at América Móvil

Year-over-year, our postpaid base increased 8.1%. As you can see, that's the access line that has been increasing the fastest, and then fixed broadband accesses with 5.1% growth. Third quarter revenue totaled $233 billion pesos. They were up 4.2% in Mexican peso terms and 6.2% at constant exchange rates, the service revenue also expanding at the 6.2% pace. The difference between the rate of growth in nominal terms versus that at constant exchange rates mainly reflects the appreciation of the Mexican peso versus the dollar. The Chilean peso and the Argentine peso, as the former remained practically flat versus the Brazilian peso, flat versus the Brazilian real and the Colombian peso. On the mobile platform, service revenue posted its best rate of growth in two years, 7.1%, helped along by the continued recovery of prepaid revenue.

Carlos García Moreno
CFO at América Móvil

The latter expanded 3.9%, the fastest pace in two years, while postpaid revenue climbed at 9.1%, a very similar pace to that of the preceding quarter, which was the quickest one in 10 quarters. Very, very fast mobile revenue growth, both in prepaid and in postpaid. We're seeing the fastest pace in a couple of years. Mexico, Colombia, and Chile were the main operations behind the acceleration of mobile service revenue growth. As for fixed-line service revenue, it decelerated to 4.7% from 7.9% the prior quarter. This deceleration has to do with the significant slowdown registered in corporate networks revenue, which fell from a 15% increase in the second quarter to a 3.5% increase in the third. Corporate networks revenue tends to be more volatile as it is associated with the pipeline of corporate networks contracts and IT projects.

Carlos García Moreno
CFO at América Móvil

We are an increasingly relevant player in this business segment, which is an ever more important revenue item for us. Its share of fixed-line service revenue has reached 21%. EBITDA totals $94 billion pesos and was up 4.9% in Mexican peso terms and 6.8% at constant exchange rates from the year earlier quarter, adjusting for that was just a year ago. We returned to the trend seen over several quarters when EBITDA was expanding more rapidly than revenue, and we expect that this will continue to be the case going forward. Our operating profit came in at $50 billion pesos and was up 5.6% in nominal terms and 6.4% at constant exchange rates.

Carlos García Moreno
CFO at América Móvil

With our comprehensive financing costs roughly cut in half compared to those of the earlier quarter, and this is basically on account of FX gains, our net income surged to $23 billion pesos, and it was equivalent to $0.38 per share or $0.40 per ADR. We ended up with $138 billion pesos in operating cash flow in the nine months to September, after deducting from our EBITDA after leases, $34 billion in increased working capital and $67 billion in interest payments and taxes. Capital expenditures totaled $85 billion pesos over the period. Our free cash flow amounted to $53 billion pesos compared to $36 billion pesos a year before. This means a 47% increase year on year.

Carlos García Moreno
CFO at América Móvil

This free cash flow plus $2.3 billion pesos in dividend income that we obtained through our valuation shares allowed us to distribute $29 billion pesos to our shareholders, including $11 billion pesos in share buybacks, increase our equity investments by $1 billion pesos, pay out $10 billion pesos out of our low-level obligations due this year, and reduce our net debt by $16 billion pesos. At the end of September, our net debt stood at $454 billion pesos, which was equivalent to 1.55x net debt to EBITDA after leases. With that, I would pass the floor back to Daniel, and we would open up this floor for Q&A. Thank you all.

Daniel Hajj
CEO at América Móvil

Thank you, Carlos. Are we ready for the Q&A, please?

Operator

We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please raise your hand now. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. Please stand by while we compile the Q&A roster. Your first question comes from the line of Vitor Tomita from Goldman Sachs. Vitor, your line is now open. Please go ahead.

Vitor Tomita
Vitor Tomita
Equity Research VP at Goldman Sachs

Hello. Good morning, all, and thanks for taking our questions. Two quick questions from our side. The first one is on mobile prepaid revenues in Mexico. Prepaid revenues have been recovering well. Is this driven by better macro or other factors? Are you seeing this positive trend, if it is macro, for example, continuing into the fourth quarter for prepaid in Mexico? Our second question would be on Chile, Uruguay, and Paraguay, where in that segment, even though it's small, we saw some very strong margin expansion quarter on quarter and year on year there. Was this due to accounting factors following the end of the JV there or any one-off effects, anything that we should bear in mind? Thank you.

Daniel Hajj
CEO at América Móvil

Vitor, talking about the mobile prepaid in Mexico, as we said, the last quarter and the last two quarters, we said that it's very related to the economy. I think the worst that we do in the revenues in the prepaid was at the end of last year or beginning of this year. Since that, we're starting to recuperate the revenues. I think revenues will recuperate as we have been doing. I hope that the economy will get better and better, and hope for next year we can have better mobile revenues. It's very related to the economy. It depends a lot on that. As we see that things are going better, then mobile prepaid will do better. On Chile, Uruguay, and Paraguay, we have been working very hard in Chile. We do all the synergies. We bought the Liberty [peace] shares. I think we're happy.

Daniel Hajj
CEO at América Móvil

We're gaining a lot of new subscribers. Revenue is growing, and we are being very careful with the cost and expenses. That's why the increase on EBITDA that we have. There's nothing different on that. That's only the operations and the growth that we have been having: better churn, good subscribers, better subscribers because we used to have the lowest segment of subscribers. We're having better postpaid subscribers, better revenue, better ARPUs. All of this is helping us to grow our EBITDA. That's what we have been saying. We need some time to do the synergies and we're having a very good moment right now in Chile.

Vitor Tomita
Vitor Tomita
Equity Research VP at Goldman Sachs

Very clear. Thank you very much.

Daniel Hajj
CEO at América Móvil

Thank you.

Operator

Our next question comes from the line of Phani Kanumuri. Phani, your line is open. Go ahead.

Phani Kanumuri
Phani Kanumuri
Equity Research Analyst at HSBC

Thanks for taking my questions. My first one is regarding your potential acquisitions. There's news on AMX trying to acquire a part of Telefónica in Chile along with Entel, as well as AMX trying some acquisitions for some ISPs in Brazil. How do you view these acquisitions? Do you see more potential for acquisitions in Brazil, and how does it impact average? Thank you.

Daniel Hajj
CEO at América Móvil

Okay. In the M&A side, I want to talk about two things. First, on Chile, as we informed a few days ago, we are evaluating a potential joint bid with Entel to purchase Telefónica assets and operations in Chile. It is right now, it is in an early stage, and the process will take some time. There's nothing else I can say. We are reviewing the company, checking numbers, doing the due diligence, but nothing else than that. On Chile, that's what we have. It's an early stage, and we don't have anything else. On Brazil, on Desktop, we're evaluating operations all around our markets. Our subsidiary in Brazil is currently evaluating Desktop, but there's no binding commitment existing to date. There's nothing else, only evaluating the company and our people is looking at that. There's nothing else that we can say. That's what we are.

Daniel Hajj
CEO at América Móvil

We are, as we said, open to see any opportunity that we have in the region or out of the region that makes sense for us. It's what we are doing and evaluating. I think all around the world, markets are consolidating. If that makes sense for us, we're going to participate on that. Nothing else on that.

Phani Kanumuri
Phani Kanumuri
Equity Research Analyst at HSBC

Thanks.

Operator

Okay. Thank you. Our next question comes from the line of Gustavo Farias. Your line is open.

Gustavo Farias
Gustavo Farias
Associate Director at UBS

Hi, everyone. Thanks for taking my questions. The first one, if you could provide us a color on the competition environment in Mexico, especially coming from (Inaudible) new postpaid plans, but competition in general. The second question focusing on Brazil, if we could have a better view on the main drivers of performance in prepaid, how you're seeing the segment, especially with the good performance despite the disconnections we observed in the quarter. Thanks.

Daniel Hajj
CEO at América Móvil

In Mexico, the competition with the bike, with AT&T, with Telefónica, we have a lot of competition in Mexico. On postpaid, I think people look a lot on quality, on 5G coverage, the way your customer care centers will attend and solve all the problems. I think we are by far much better than anybody else, any other company in Mexico. We have more than 120 cities with 5G. Nobody has that. We have customer care centers all around Mexico with a lot of people, very professional and training to solve the problems, to help you to activate your line. On the other side, all of that helps you. If you have good prices and competitive prices, you are in very good shape in Mexico. That's what we have. We are very competitive. We finance a lot of the devices. We have very good devices. We have very good distribution.

Daniel Hajj
CEO at América Móvil

We have a very professional in the corporate segment. We have very professional people going to the companies in small, medium business also. We have a very good company here that makes so the NPS, let's say the NPS people think very good about Telcel, marketing, and all of that that helps us to be very strong. That's why I can tell you that from people who are visiting our stores, maybe 50% of the people that are actual customers decide to increase the plan and to extend the plan for some more time. We are very, of course, we have a lot of competition. AT&T is doing good. Bite is also doing good, but they don't have all the things that we have, and people recognize a lot of that. Look, what we see is that the phone is a very important thing for you.

Daniel Hajj
CEO at América Móvil

You need to have all day a day, since you wake up and you get to sleep, all the day, you have a lot of things to do. What you want is to have the best network, the best customer care centers, the best coverage, and all of that helps us to be right now in this position. In Brazil, in prepaid in Brazil, prepaid in Brazil, also, we have been investing a lot in our network. We're gaining and doing a lot more coverage. We're doing a lot of 5G. People in Brazil, there's a lot of people from prepaid moving to postpaid, but there's new people coming to stay with us in the prepaid side. Those are the things we, in Brazil, we have three years gaining and doing much better in the wireless segment. I think it's also because it's not only one thing that we have.

Daniel Hajj
CEO at América Móvil

It's a lot of things. In prepaid in Brazil, our ARPU is growing 7.3%. That is a lot. It means that people are consuming more, using more social networks, or buying a package for more days. All of that is helping us to do that. 5G technology is very important also.

Gustavo Farias
Gustavo Farias
Associate Director at UBS

Very clear. Thank you very much.

Daniel Hajj
CEO at América Móvil

Thank you.

Operator

A reminder that if you would like to ask a question, please use the raise hand function. If you have dialed into today's call, you can press star nine to raise your hand, star six to unmute. Our next question comes from the line of Lucca Brendim from Bank of America. Your line is open.

Lucca Brendim
Lucca Brendim
Equity Research Associate at Bank of America

Hi. Good afternoon, everyone. Thank you for taking my questions. I have one here on my side. If you guys could give us an update on the competitive market for Colombia and Chile. We saw many reports of potential acquisitions, including your potential move in Chile. Some of your peers are struggling financially in both regions. Is this already reflecting positively in the numbers we're seeing in those markets? Obviously, your numbers for the region have been improving in both Chile and Colombia. How much of that is due to competition, and what do you think we can expect going forward? Thank you.

Daniel Hajj
CEO at América Móvil

We know what is going to happen in Colombia. Colombia is Tigo and Telefónica. They already merged their networks, so they are going to have one network, better costs, more efficiencies for them. What looks like is that Tigo is going to end up having all Telefónica's Ministers. They are waiting for the authorization of the government. I don't know what's going to happen, but it looks like they're going to consolidate the market. In Colombia, we're doing good. We are growing. We are number one in 5G in Colombia. We're doing our investments there. Quality is doing good also. The service revenue is growing 7.8%, 7.4% in wireless. That's the growth, has been very good in Colombia. The competition with WOM is not so hard because WOM is not in very good shape, what I'm understanding. There's new people buying the company, starting to do the changes.

Daniel Hajj
CEO at América Móvil

Overall, in Colombia, we're okay. Our EBITDA should increase a little bit more, but we're putting some extra reserves that we're doing for some fiscal and legal things that we're seeing. We're putting, but if not, maybe we can have around, we can have the 5% increase. Instead of 3% increase in the quarter, we can go to 5% increase if we don't do these reserves. Next quarter, I think, is going to be the same because the reserves are until the end of the year. The operations are doing good. We are, who is that, we are being conservative. Doing the reserves doesn't mean that we win or lose, but we want to be conservative always. That's what we're seeing, growing very good the revenues and growing good the EBITDA, investing a lot more in fiber.

Daniel Hajj
CEO at América Móvil

We're doing our investments and putting fiber to the houses, changing more our cables and doing fiber. I don't know, Oscar, if you want to talk a little bit about the fix in Colombia.

Oscar Von Hauske
COO at América Móvil

No, as you mentioned, we are building home passes with fiber, and we are doing the migration from cable to fiber. We expect to have 60% of our network already in fiber. We believe that we have the right network to be competitive in Colombia, not only on fiber or residential. I think we are doing pretty well as well in the corporate segment, selling cybersecurity, cloud, data centers, solutions. I think we have a good operation there in Colombia.

Daniel Hajj
CEO at América Móvil

In Chile, there is a lot of competition. We hope that we can consolidate the market as Telefónica is saying on sale. What we have been doing the last two or three years is since we bought the company, we modernized all the network. We put 5G. We grew our coverage. We did more customer care centers. We moved the brand to Claro, which has been extraordinarily good. People migrate—a lot of migration from cable to fiber. We have been doing the last three years since we bought the company, we have been doing a lot of investments. That is why our EBITDA is more than double in Chile. Of course, competition is high in Chile. Prices are also still very low in Chile in everything. We have been doing a lot of things to be competitive in the market. We need to compete at the prices that we have.

Daniel Hajj
CEO at América Móvil

They are very low, but we need to compete at those prices. That is what we're doing.

Lucca Brendim
Lucca Brendim
Equity Research Associate at Bank of America

Very clear. Thank you for the answers.

Daniel Hajj
CEO at América Móvil

Thank you.

Operator

Thank you. One last call for questions. A reminder, if you would like to ask a question, please use the raise hand function. If you have dialed into today's call, you can press star nine to raise your hand and star six to unmute. Seeing no further questions at this time, I will now turn the call back over to Mr. Daniel Hajj for closing remarks.

Daniel Hajj
CEO at América Móvil

Thank you everyone for being in the call. We'll see you next quarter. Thank you very much.

Operator

This concludes today's conference call. You may now disconnect.

Analysts
    • Gustavo Farias
      Associate Director at UBS
    • Vitor Tomita
      Equity Research VP at Goldman Sachs
    • Carlos García Moreno
      CFO at América Móvil
    • Oscar Von Hauske
      COO at América Móvil
    • Daniela Lecuona
      Head of Investor Relations at América Móvil
    • Phani Kanumuri
      Equity Research Analyst at HSBC
    • Lucca Brendim
      Equity Research Associate at Bank of America
    • Daniel Hajj
      CEO at América Móvil
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