America Movil Q2 2025 Earnings Report

America Movil EPS Results

• Actual EPS: $0.38
• Consensus EPS: $0.49
• Beat/Miss: Missed by -$0.11
• One Year Ago EPS: N/A

America Movil Revenue Results

• Actual Revenue: $12.50 billion
• Expected Revenue: $233.77 billion
• Beat/Miss: Missed by -$221.26 billion
• YoY Revenue Growth: N/A

America Movil Announcement Details

• Quarter: Q2 2025
• Date: 7/22/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, July 23, 2025
• Conference Call Time: 11:00AM ET

América Móvil, S.A.B. de C.V. provides telecommunications services in Latin America and internationally. The company offers wireless and fixed voice services, including airtime, local, domestic, and international long-distance services; and network interconnection services. It provides data services, such as data centers, data administration, and hosting services to residential and corporate clients; value-added services, including Internet access, messaging and other wireless entertainment, and corporate services; data transmission, email services, instant messaging, content streaming, and interactive applications; and wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network services, and video calls and personal communications services. In addition, the company offers residential broadband services; IT solutions to small businesses and large corporations; and cable and satellite television subscriptions. Further, it sells equipment, accessories, and computers; and offers telephone directories, wireless security, call center, advertising, media, and software development services. Additionally, the company provides video, audio, and other media content through the Internet directly from the content provider to the end user. It sells its products and services under the Telcel, Telmex Infinitum, and A1 brands through a network of retailers and service centers to retail customers; and through sales force to corporate customers. The company was incorporated in 2000 and is based in Mexico City, Mexico.

America Movil Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: America Móvil added a net 2.9 million postpaid clients and 1.7 million total wireless subscribers in Q2, driving a 6.8% year-over-year increase in postpaid base.
• Positive Sentiment: Reported revenue of MXN 234 billion, up 13.8% year-over-year (7.9% at constant exchange rates), with broad-based growth across services and equipment.
• Positive Sentiment: EBITDA reached MXN 92.4 billion (+11.2% in pesos, +5.1% at constant FX) and margins remained broadly stable sequentially across all markets.
• Positive Sentiment: Net profit was ARS 22.3 billion, aided by ARS 11 billion in foreign exchange gains, while net debt fell by ARS 7.3 billion in six months, keeping leverage at 1.36× LTM EBITDA.
• Negative Sentiment: Uncertainty over U.S. tariffs led to currency depreciation and a litigation provision in Colombia weighed on operating profit growth and lease expenses increased due to FX impacts.

Presentation

[Operator]

Hello, everyone. The America Movil Second Quarter twenty twenty five Conference Call and Webcast will begin shortly. Thank you for your patience. Good morning. My name is Nadia, and I'll be your conference operator today.

[Operator]

At this time, I would like to welcome everyone to the America Movil Second Quarter twenty twenty five Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. Now I will turn the call over to Ms. Daniella Lecuana, Head of Investor Relations.

[Daniela Lecuona Torras, IR & Chief Sustainability Officer at América Móvil]

Thank you. Good morning, everyone. Thank you for joining us today to discuss our second quarter financial and operating results. We have on the line Mr. Daniel Hajj, CEO Mr. Carlos Garcia Moreno, CFO and also Mr. Oscar Rumshauske, COO.

[Daniel Hajj Aboumrad, CEO at América Móvil]

Thank you, Daniela. Welcome everyone. Carlos is going to make a summary of the second quarter results.

[Carlos García Moreno Elizondo, CFO at América Móvil]

Thank you, Daniel. Good morning, everyone. Well, the second quarter was characterized by significant uncertainty associated with the tariffs the U. S. Government seeks to impose on merchandise imports.

[Carlos García Moreno Elizondo, CFO at América Móvil]

While this uncertainty did not have much of an impact on interest rate volatility during the period, the ten year treasury notes ended the first quarter at 4.21% and the second quarter at 4.23%. It did weigh on the value of the U. S. Dollar, which during the period fell against most currencies in our region of operation, 7% versus the Mexican peso, 5% versus the real, 2.9% versus the Colombian peso, 2.1% versus the Chilean peso and 8.2% versus the euro. We added 2,900,000 postpaid clients with Brazil contributing 1,400,000.0, followed by Colombia with 109,000 and Mexico with 102,000.

[Carlos García Moreno Elizondo, CFO at América Móvil]

On the prepaid platform, we recorded net disconnections of 1,100,000 subscribers with each of Brazil, Chile and Central America is connecting approximately 500,000 clients each, while Colombia added 229,000 subscribers, Argentina 251,000 and Mexico 83,000. Altogether, we gained 1,700,000 wireless subscribers in the quarter between prepaid and postpaid. In the fixed line segment, we gained 462,000 broadband accesses, including 231,000 in Mexico compared to 155,000 in the prior quarter, 66,000 in Brazil and 51,000 in Central America. Both lines and trade TV units declined by 225,000 respectively during the quarter. At the June, we had four zero four million accesses, of which 137,000,000 were postpaid clients and 78,000,000 were fixed line RGUs.

[Carlos García Moreno Elizondo, CFO at América Móvil]

Year over year, our postpaid base increased 6.8%, one of fastest growing by accesses and fixed broadband accesses increased by 4.5%. Those accesses constitute our main drivers of revenue growth. In Mexican peso terms, our second quarter revenue totaled ARS $234,000,000,000. That's a 13.8% year on year increase, which partly reflects depreciation over that period of the Mexican peso versus most of the currencies in our region of operations. We're talking about a second quarter versus the second quarter of twenty twenty four.

[Carlos García Moreno Elizondo, CFO at América Móvil]

At constant exchange rates, we posted our strongest revenue performance in over a year. I think it's on report I saw that it was over twelve years in twelve years, a 7.9% increase. Our revenue expansion was broad based across business lines and across countries, with service revenue growth moving up to 7.3% as can be seen in this slide and that of equipment revenue to 12.5%. It's important to note that practically all our subsidiaries registered faster growth sequentially, practically all of them. On the mobile platform, postpaid service revenue expanded 9.5%, also the best result in the prior year with FoodTech revenue growth recovering to 3.1% from a 0.9% in the preceding quarter.

[Carlos García Moreno Elizondo, CFO at América Móvil]

The rebounding prepaid revenue growth was driven by Mexico with the sales prepaid ARPU climbing 2.2% in the quarter after posting a 2.2% decline in the first quarter. As can be seen in this slide, pre per ARPU growth mirrors the growth rate of power consumption in the country, which likely bottomed in the first quarter. On the fixed line platform, copper networks revenue and petech revenue were up 1510.1% respectively, representing also the best performance in several quarters with broadband revenue decelerating slightly sequentially to 8.2% or 9.8%. Mexico and Colombia were the countries that have the greatest impact on the sequential acceleration of revenue growth as can be seen here in this slide. EBITDA came in at 92,400,000,000.0.

[Carlos García Moreno Elizondo, CFO at América Móvil]

It was up 11.2% in Mexican peso terms and 5.1% at constant exchange rates, improving sequentially from the prior quarter. And I think again something to note is that EBITDA margins were nearly flat sequentially across the board, practically in all countries. Margins were flat sequentially. Our operating profit came in at MXN 47,000,000,000, that's a 4% increase from the year earlier quarter as the depreciation of price reviews associated with our leases jumped 24.5% on account of deconsolidation with Chilean operation and certain effects of Sierra Leone's accounting methodology applicable to Argentina as a hyperinflationary company. Our integral financial costs were down significantly on account of our having registered ARS 11,000,000,000 in foreign exchange gains.

[Carlos García Moreno Elizondo, CFO at América Móvil]

This helped us post a net profit of ARS 22,300,000,000.0 in the quarter. Our net profit was equivalent to 37 per share and ARS $38.00 0 per ADR. In cash flow terms, our net debt fell by ARS 7,300,000,000.0 in six months to June. In that period, our CapEx amounted to ARS 54,900,000,000.0. Our shareholder distributions to ARS 9,400,000,000.0 with and that's including ARS 8,700,000,000.0 in share buybacks and we covered ARS 2,700,000,000.0 in labor obligations.

[Carlos García Moreno Elizondo, CFO at América Móvil]

Our net debt to last twelve months EBITDA stood at 1.36 times, a slight increase over the prior quarter, mostly on account of the appreciation in the second quarter of the Mexican peso and the euro vis a vis the euro the U. S. Dollar. As I mentioned before, the in cash flow terms, net debt actually fell over the quarter by $10,300,000 So that's return to our reduced leverage in order to leverage the greater leverage is basically on account of exchange rate movements. Okay?

[Carlos García Moreno Elizondo, CFO at América Móvil]

So with that, I will pass the floor back to Daniel, and maybe we can open it for Q and A.

[Daniel Hajj Aboumrad, CEO at América Móvil]

Thank you, Carlos, and let's open the Q and A.

[Operator]

The first question goes to Marcelo Santos of JPMorgan. Marcelo, please go ahead.

[Marcelo Peev Santos, Senior sell-side Equity Analyst - TMT & Education at JP Morgan Chase & Co]

Hi, good morning. Thanks for the opportunity for asking questions. I have two. First question is about the Brazilian mobile environment. If you could comment a bit, you had a strong performance with revenue acceleration.

[Marcelo Peev Santos, Senior sell-side Equity Analyst - TMT & Education at JP Morgan Chase & Co]

I just wanted to hear your comments on the main drivers of that. And the second question would be if you could comment a bit on the recently approved regulatory changes in the Mexican telco framework. Just wanted to hear your considerations. Thank you very much.

[Daniel Hajj Aboumrad, CEO at América Móvil]

Hi, Marcelo. Well, I think talking about postpaid in Brazil, we're doing very good. We are growing. We have been some quarters growing revenue, doing good in postpaid. All of these things has to be with a very, very strong and good quality network.

[Daniel Hajj Aboumrad, CEO at América Móvil]

We have been improving our network and putting more coverage all around Brazil. We have also increasing our sales force stores and all the let's say all the commercial area we have been increasing that. And we have been doing good plans. Also our ClaroFlex program has been very successful. So all overall, we are doing good.

[Daniel Hajj Aboumrad, CEO at América Móvil]

Customer care is doing also. We have been a good performance, digitalizing everything. And our NPS has been growing very good. People is thinking of a very good service when we talk about Claro. And I think that's what we need to do.

[Daniel Hajj Aboumrad, CEO at América Móvil]

It's not only price. It's not only the commercial area. It's not only quality. When you do all the things together then the market is responding very good. So that's what we have been doing and that's what we we have also our new bank.

[Daniel Hajj Aboumrad, CEO at América Móvil]

It's still small, but our agreement with new bank has been good. And they are looking for good customers and that's also something that has been helping us. Convergence, it's important. So a lot of our fixed customers had also our postpaid or prepaid or vice versa. So all overall, I think we have a very strong performance and we have been executing very good in Brazil.

[Daniel Hajj Aboumrad, CEO at América Móvil]

So that's more or less what you could see. I see for the next no big changes on the next quarters in Brazil. I think we are doing very good. In the telecom law, what I can tell you is that the new telecommunications law and antitrust law are substantially similar to the original proposal sent by President Schenbaum to Congress. Under the new law, we will be regulated by two different entities, the Comision Nacional Antimonopolio, the new regulator for antitrust matters, which will be responsible for the imposition and revision of asymmetric regulations to preponderant and dominant agents.

[Daniel Hajj Aboumrad, CEO at América Móvil]

And the other one will be the commission Reguladora de Telecommunicatione. The new telecommunications regulator will assume the powers and responsibilities of the former IFT. And if you I can tell you some relevant some of the most relevant changes that we see. The first one is increasing the fines regulators may impose. That's one.

[Daniel Hajj Aboumrad, CEO at América Móvil]

Potential discounts on payments for the use of spectrum in exchange for coverage obligations in remote areas and highways. That's very good for us. The third one similar terms for public and private concessions for obtaining a spectrum for commercial service. That one's something that we have a lot of questions. So all the spectrum is going to be with similar terms.

[Daniel Hajj Aboumrad, CEO at América Móvil]

And the fourth is the new obligations relating to the identity of all users of telecommunication services for activating and maintaining activated all the telecom service including mobile and prepaid. So that would be a lot of work to do. And that's more or less the changes and the relevant things that we see in the new telecom law.

[Marcelo Peev Santos, Senior sell-side Equity Analyst - TMT & Education at JP Morgan Chase & Co]

Perfect. Thank you very much for the comprehensive answers. Just one follow-up. In Brazil, do you have any particular comments regarding prepaid? There seems to have been a big shift in trends from first quarter to second quarter.

[Marcelo Peev Santos, Senior sell-side Equity Analyst - TMT & Education at JP Morgan Chase & Co]

Is there anything extra you could say on prepaid Brazil?

[Daniel Hajj Aboumrad, CEO at América Móvil]

No. I think what is happening I think in all Brazil not only for us is that the prepaid is moving to postpaid. So it's helping us a lot on postpaid. The prepaid but nothing new. So that's something that we have been working prepaid and postpaid different strategies, but I think the same results. We are doing good in both.

[Marcelo Peev Santos, Senior sell-side Equity Analyst - TMT & Education at JP Morgan Chase & Co]

Perfect. Thank you very much.

[Daniel Hajj Aboumrad, CEO at América Móvil]

In prepaid, I don't not only in Brazil Marcelo, but in all the countries, it's very important to see in prepaid revenue growth not subscribers because subscribers it's very different. Some companies will disconnect after before. We don't know. So what it will be important is to follow the revenue growth in prepaid. And I think in prepaid, we have 10% more than 10% growth in Brazil. So very good for us.

[Marcelo Peev Santos, Senior sell-side Equity Analyst - TMT & Education at JP Morgan Chase & Co]

Thank you.

[Daniel Hajj Aboumrad, CEO at América Móvil]

Thank you.

[Operator]

The next question goes to Gustavo Farias of UBS. Gustavo, please go ahead.

[Gustavo Farias, Associate Director at UBS Group]

Hi, everyone.

[Gustavo Farias, Associate Director at UBS Group]

Thanks for taking my questions. I have two on my end. The first one, if you could comment on the outlook for Mexico had higher seen economic activity trending and how's competitive environment in the country, especially for mobile, but also for broadband? And my second one, we've seen a lower increase in CapEx this quarter. I wonder if the targets for the full year stands around EUR 7,000,000,000? Thank you.

[Daniel Hajj Aboumrad, CEO at América Móvil]

Well, the first one is, yes, CapEx, we are on target. I think it's going to be, I hope, less than 7,000,000,000 It will be like 6,700,000,000.0 6,800,000,000.0 what we discussed, and that's more or less what we're going to have this year. So no changes on that. There's a lot of questions about what will be the next year and the next one. And the target that we have been having is to have the same percentage CapEx to sales that we had this year to have the next one at The Netherlands.

[Daniel Hajj Aboumrad, CEO at América Móvil]

So I don't think there's going to be any change on the way we are going to invest in the next two one or two years. So that's something that all a lot of people have been asking us. And we have been doing a lot of investments in the last years. So that will help us to reduce and maintain what we have been doing this year. So that's I think good news for all of us.

[Daniel Hajj Aboumrad, CEO at América Móvil]

In Mexico, you want to talk there? I don't think there's new different when you talk about the market, there's no different commercial or promotions in fixed or in wireless. I think we have the same competitors. In some, some of them are more aggressive, other ones less aggressive. But the competition in the market is the same as last year.

[Daniel Hajj Aboumrad, CEO at América Móvil]

This year there's a lot of competition in the Mexico market. And I think what we discussed last time and the rebound in revenues is also helped by we think that Mexico economy is starting to grow. It's starting to grow a little bit. And what we discussed last quarter is that the reduction on revenues on prepaid mostly is because it's related to the economy, the acceleration of the economy and it's rebound a little bit today and we hope that the next quarters will be also better. So the competition is there.

[Daniel Hajj Aboumrad, CEO at América Móvil]

We think we have a strong as we said, we have a strong network. We have a good revenue and commercial area, good promotions and good distribution also, customer care. And we're doing good. In the peak side, we increased 200 more than 200,000. So it's a very good growth for Telmex and we hope we can sustain and we'll do good in the next quarters also. So we are accelerating also in the big side.

[Gustavo Farias, Associate Director at UBS Group]

Perfect. Thanks for the answers.

[Operator]

The next question goes to Pani Kanemuri of HSBC. Pani, please go ahead.

[Phani Kumar Kanumuri, Equity Research Analyst at HSBC]

Yes.

[Phani Kumar Kanumuri, Equity Research Analyst at HSBC]

Thanks for taking my questions. The first one is regarding the labor obligations. This first half you had paid much lower than you had paid last year. Do you expect the outflow to be lower in the labor obligations? And the second question is regarding yeah. Hello?

[Carlos García Moreno Elizondo, CFO at América Móvil]

No.

[Daniel Hajj Aboumrad, CEO at América Móvil]

You want Carlos to say something more.

[Carlos García Moreno Elizondo, CFO at América Móvil]

Okay. On the page, you're sorry, that you understand. Part of the obligations, these are basically challenges, are paid out of attention funds, the term itself, and part of the payments are made out of pocket. And this changes throughout the year, okay?

[Carlos García Moreno Elizondo, CFO at América Móvil]

So for the full year of support, I think you should not expect to see any major changes relative to what we had last year. So that's what I would say, okay? So how much we take out of performing a given quarter or how much we would pay out of pocket, That come by, right, during the year depending on market conditions and the like.

[Phani Kumar Kanumuri, Equity Research Analyst at HSBC]

Okay.

[Phani Kumar Kanumuri, Equity Research Analyst at HSBC]

Okay. Okay. And the second question is regarding, you know, the changing competition in different markets. We are seeing a lot of M and A happen in different markets, whether it's Argentina, Colombia, you know, and or Ecuador, Uruguay. Are you seeing a changing competition there?

[Phani Kumar Kanumuri, Equity Research Analyst at HSBC]

Do you think the markets are becoming much more rational on a general level?

[Daniel Hajj Aboumrad, CEO at América Móvil]

Yes. As markets consolidate, I think we'll be more rational promotions and the market will be more rational. And well, it's what we hope and we expect. So I think the Latin market with all the sales that the Telefonica sales that Telefonica is having are not for consolidating the market, okay? In Argentina, yes, it's consolidating the market.

[Daniel Hajj Aboumrad, CEO at América Móvil]

In Colombia. In Colombia, it's consolidating the market. In Peru, it's not we're not. It's another one. It's a new entrant in Uruguay and in Ecuador also it's a new one.

[Daniel Hajj Aboumrad, CEO at América Móvil]

So it's not consolidating. So it's different in each market. So but we hope that in the markets where it's consolidating will be more rational the competition.

[Phani Kumar Kanumuri, Equity Research Analyst at HSBC]

Okay. Yes. Thank you. Thank you for that.

[Daniel Hajj Aboumrad, CEO at América Móvil]

You.

[Operator]

The next question goes to Walter Piecyk of LightShed Partners. Walter, please go ahead.

[Walter Piecyk, Partner & TMT Analyst at LightShed Partners]

Thanks. I was hoping you guys could comment a little bit about Bait. I think if I look at this quarter compared to last quarter in Mexico, particularly in prepaid, you did much better. When we look at the Bate numbers, they did worse. So I'm just wondering if that was the reason you were doing better.

[Walter Piecyk, Partner & TMT Analyst at LightShed Partners]

And then in addition, I think Bate this week talked about maybe getting to the postpaid market. And I'm just curious kind of how you see that kind of playing out. It seems like the model is interesting in terms of them getting, you know, usage at grocery stores, I guess, to to pay for service. So just if you can comment on what's going on in the market this quarter as it relates to Bait and how you anticipate competing against whatever they're planning to do on postpaid?

[Daniel Hajj Aboumrad, CEO at América Móvil]

Well, I think the first thing is for us that we have been improving the prepaid is, as I said, I think the economy is doing a little bit better. So as the economy will do better, I think we will increase more. So that's the first thing. On I cannot talk too much about vape because I don't understand their numbers. They said if it tells that they have less subscribers then they said that they have more the ARPUs.

[Daniel Hajj Aboumrad, CEO at América Móvil]

I don't know I really don't understand the numbers. So it's very difficult to compare quarter by quarter with that. But I think something that I see that is important is when you are a new entrant, it's easy to when you have nothing, it's easy to start to grow. But when you have a base, an important base, then it's important to maintain the base. So it's more difficult to grow, it's important to maintain the base.

[Daniel Hajj Aboumrad, CEO at América Móvil]

So I think it's maybe what is happening with them. But as I told you, very difficult to understand their numbers. I don't know their numbers. It's not clear. And but in our case, I can tell you that we have been growing and it's we have a very good network much better than all the other ones.

[Daniel Hajj Aboumrad, CEO at América Móvil]

And coverage also very good coverage. So that economy and all these things are making that our prepaid start to grow again. Yes. Hello?

[Operator]

Thank you, Walter. The next question goes to Vitor Tomeeta of Goldman Sachs. Vitor, please go ahead.

[Vitor Tomita, VP - Equity Research at Goldman Sachs]

Hello and thank you very much for taking our questions. We have two from our side. The first one is in on Mexico's broadband market. We saw an acceleration in broadband net adds this quarter, quite a bit of commercial efforts in Mexico. Could you give us a bit more color on how you see that acceleration in your broadband volumes in Mexico in the quarter?

[Vitor Tomita, VP - Equity Research at Goldman Sachs]

And on whether this commercial intensity is expected to continue into coming quarters? Also my second question would be on the litigation provision you booked in Colombia that affected margins this quarter. Could you give us a little bit more color on that? And particularly on whether the provisioning already assumes a worst case scenario with or whether there is risk of further provisioning depending on how this goes or even of provisions being reversed? Thank you.

[Carlos García Moreno Elizondo, CFO at América Móvil]

Well, talking about the Mexico program. First, we increased our sales force in order to be more proactive in the market. Secondly, we reinforced all the retentions areas in order to keep the customers with Telmex. And now we have 91% of the customer base already connected with fiber. So we are delivering a very great speeds, very great quality.

[Carlos García Moreno Elizondo, CFO at América Móvil]

And another thing that has been working for us is to add into the broadband streaming platform. So we've been adding streaming platforms all the major ones and has been very well received in the marketplace. So I believe if this continue, we will be seeing good figures in the next quarters.

[Daniel Hajj Aboumrad, CEO at América Móvil]

And on Colombia, I think we there's a case where we lost related to the content. It's not only for us, it's for all the industry. And what we booked is this we have to pay something right now that it's what we book and then we have some payments to do in the next months until the end of the year. So less payments than what we booked today, but that case is closed. We lose.

[Daniel Hajj Aboumrad, CEO at América Móvil]

It's booked. It's until December. And what we already put is maybe more than half of what we need to pay and the rest is divided in the next months is and we have to pay every month until the end of the year. So we are not going to see a big payment the next months. But it's a case that it's closed.

[Daniel Hajj Aboumrad, CEO at América Móvil]

It's something that we cannot reverse. But it's for all the industries what I can tell you related to the content.

[Vitor Tomita, VP - Equity Research at Goldman Sachs]

Clear. Thank you very much.

[Daniel Hajj Aboumrad, CEO at América Móvil]

Thank you.

[Operator]

The next question goes to Valeria Miranda of GBM. Valeria, please go ahead.

[Valeria Miranda Reyes, Analyst at GBM]

Yes. Thank you for taking my question. Focusing on Colombia, how are you seeing the dynamics with the consolidation there has been?

[Daniel Hajj Aboumrad, CEO at América Móvil]

Well, the consolidation has to be declared before on September. And September, I think it's the time where they are going to decide if they approve or they don't approve this consolidation. And if you see consolidation are always good for the markets, still they are separate companies. So we don't know what is going to happen. But the consolidation I think it's good for the market.

[Daniel Hajj Aboumrad, CEO at América Móvil]

But let's see why the regulator or the people who have to decide in Colombia is what they are going to decide. Let's see. Let's wait until September.

[Valeria Miranda Reyes, Analyst at GBM]

Thank you.

[Daniel Hajj Aboumrad, CEO at América Móvil]

Thank you.

[Operator]

And the next question goes to Luca Brendam of Bank of America. Luca, please go ahead.

[Lucca Brendim, Equity Research Associate at Bank of America]

Hi, good afternoon. Thank you for taking my questions. I have two here. First, following up on Marcelo's question, can you please double click on postpaid net adds in Brazil and break it down? According to net Anatel data for the past two months, machine to machine net adds were really strong.

[Lucca Brendim, Equity Research Associate at Bank of America]

So were there any new strategies on this front? And also you mentioned about the bank that is already helping with results. It is all reported in the postpaid? And then the second question, can you also give us some color on lease expenses? During the quarter, you expanded at a higher rate than the revenues.

[Lucca Brendim, Equity Research Associate at Bank of America]

So we wanted to understand how this line should behave going forward. Should it grow in line with revenues? Should grow at a higher pace, lower pace? Any color on that would be great. Thank you.

[Daniel Hajj Aboumrad, CEO at América Móvil]

The last question I don't understand. The first question is about postpaid and machine to machine. I think machine to machine is growing also. But I don't think there's a swap compared to the last quarters. I think it's more or less the same.

[Daniel Hajj Aboumrad, CEO at América Móvil]

But important, you have to see revenues. Revenues are very important. And in postpaid, we're growing. I think I don't have it here and I don't have the mix on mobile machine to machine. But on revenues on the net adds, we have 1.4%, almost 1.4%.

[Daniel Hajj Aboumrad, CEO at América Móvil]

I don't know exactly how many are machine to machine and how many are there. But our revenue is growing 9%, almost 10% in postpaid. So it's very good. So a lot of this growth is on the real postpaid, not machine to machine. So but if you want the numbers, think Brazil has the numbers.

[Daniel Hajj Aboumrad, CEO at América Móvil]

They report the numbers or Daniela can give you the numbers. But there's not a big difference between what we have been doing the last year and the last quarters that what we have right now. As I said, we are doing very good in Brazil in postpaid. We are also doing good in prepaid and in peaks also nobody is asking on peaks. And in peaks nobody is asking on peaks, but in peaks we're starting to grow.

[Daniel Hajj Aboumrad, CEO at América Móvil]

We have been two or three quarters growing our revenue in Brazil. So there are very good news also increasing putting a little bit putting more fiber changing some subscribers to fiber. Corporate is also growing, but we need to do much more in corporate. Also I think we have a good opportunity BMS in small and medium companies and in corporate also to do and we're focusing a lot there. So that's the second question what will be the second question?

[Lucca Brendim, Equity Research Associate at Bank of America]

Yes. The second question was on the lease expenses lease. So how do you expect this line to grow going forward? This should grow in line inflation or more or less than sorry, with revenues or more or less than revenues? And also on the first question, if you can comment if new bank's numbers are reported under the postpaid for AMEX?

[Daniel Hajj Aboumrad, CEO at América Móvil]

It's a good question. I don't know if they have reported on prepaid or postpaid. Maybe when they are postpaid, should be postpaid when they are they are reporting in our numbers also, but I don't know how we report it. But I can check and Daniela will let you know. The leases

[Carlos García Moreno Elizondo, CFO at América Móvil]

On the leases, several lease agreements are just by inflation. But in many cases, they are dollar based. So to the extent that the currencies are appreciating, if there is a dollar, then you should not expect to see significant changes.

[Lucca Brendim, Equity Research Associate at Bank of America]

Perfect. Thank you for the answers.

[Carlos García Moreno Elizondo, CFO at América Móvil]

The appreciation is greater than the inflation.

[Lucca Brendim, Equity Research Associate at Bank of America]

Okay, perfect.

[Carlos García Moreno Elizondo, CFO at América Móvil]

Thank you.

[Operator]

Thank you. We have no further questions. I'll hand back to Daniel Hash for any closing comments.

[Daniel Hajj Aboumrad, CEO at América Móvil]

No. Just want to thank everyone for joining the call. I think we have a very good quarter. Thank you all.

[Operator]

Thank you. This now concludes today's conference call. You may now disconnect your lines.

Participants

Analysts

• Daniela Lecuona Torras, IR & Chief Sustainability Officer at América Móvil
• Daniel Hajj Aboumrad, CEO at América Móvil
• Carlos García Moreno Elizondo, CFO at América Móvil
• Marcelo Peev Santos, Senior sell-side Equity Analyst - TMT & Education at JP Morgan Chase & Co
• Gustavo Farias, Associate Director at UBS Group
• Phani Kumar Kanumuri, Equity Research Analyst at HSBC
• Walter Piecyk, Partner & TMT Analyst at LightShed Partners
• Vitor Tomita, VP - Equity Research at Goldman Sachs
• Valeria Miranda Reyes, Analyst at GBM
• Lucca Brendim, Equity Research Associate at Bank of America