America Movil NYSE: AMX executives highlighted accelerating postpaid and broadband growth, higher profitability, and a continued focus on disciplined capital allocation during the company’s first-quarter 2026 earnings call. Management also addressed currency volatility, handset supply considerations, and potential acquisition opportunities across Latin America and Eastern Europe.
Quarterly results and operating trends
CFO Carlos García Moreno said the company continued to see “an acceleration of both postpaid subscriber growth and that of broadband accesses,” with the postpaid base up 8.8% year over year and broadband accesses up 6% versus the year-ago quarter.
First-quarter revenue rose 2.1% in Mexican peso terms to MXN 237 billion. García Moreno broke out performance as service revenue up 0.6%, equipment revenue up 7.4%, and other revenue up 108%, which he said included proceeds from “a favorable ruling in Chile on account of a dispute around certain TV rights.”
EBITDA increased 3.8% in peso terms, outpacing revenue growth. García Moreno said the figures reflected the appreciation of the Mexican peso versus other currencies in the company’s operating regions compared with the prior year period. On a constant exchange rate basis, he said revenue rose 6.1%—with service revenue up 4.6% and equipment revenue up 11.3%—and EBITDA expanded 8%. Adjusting for the extraordinary proceeds tied to the Chile legal ruling, he said EBITDA rose 7.0%.
García Moreno also pointed to operating leverage, noting consolidated EBITDA margin reached 40%, “one of our highest margins that we’ve seen.” He described mobile service revenue growth as “resilient,” with mobile service revenue up 6.4% year over year, postpaid revenue up 7.3%, and prepaid revenue up 5%.
Profit, balance sheet, and cash flow
Operating profit totaled MXN 50.5 billion, up 12% year over year, García Moreno said. Comprehensive financing cost declined 9.9%, which he attributed to lower net interest expenses. Net income increased 25% to MXN 23.4 billion, equivalent to MXN 0.39 per share and $0.44 per ADR.
Financial debt ended March at MXN 537 billion, up MXN 2.5 billion versus December, while net debt stood at MXN 437 billion. García Moreno said net debt was equivalent to 1.41x EBITDA after leases.
He added that first-quarter cash flow covered:
- MXN 21.6 billion in CapEx
- MXN 1.4 billion in share buybacks
- MXN 1.5 billion in labor obligations
He said the company also reduced net debt by MXN 1 billion during the quarter.
Capital allocation, buybacks, and M&A priorities
During Q&A, CEO Daniel Hajj said the company is seeking “some space” to pursue opportunities in Latin America and Eastern Europe, describing both regions as “in very good shape.” He cited recent deals including the closing of the “network of Azteca in Colombia” and Desktop, and said management expects additional opportunities.
Hajj emphasized balancing buybacks, leverage, and investment opportunities. He said the company is targeting net debt to reach “more or less” 1.3x (in the context of the net debt to EBITDA metric discussed on the call). He also said the company is “increasing the fund MXN 10,000 more to have MXN 21,000 on the fund,” adding, “We want to buy back more, we want to take the opportunities.”
Asked whether the company remains focused on fiber opportunities, Hajj said América Móvil is “considering everything,” including fiber companies, spectrum, and network complementarity. He referenced spectrum purchases in Puerto Rico last year and said the company’s recent actions—such as Desktop and the backbone project with Azteca Colombia—illustrate the types of opportunities under review.
CapEx outlook, Argentina challenges, and handset inventory
Hajj said the company is reviewing CapEx plans country by country given exchange rate movements and the mix of spending in dollars and local currency. He said overall CapEx for 2026 is expected to be “$7 billion, around $7 billion,” with potential variability depending on exchange rates. He added the company expects a similar level in subsequent years and said additional detail will be provided at an Investor Day in May.
On Argentina, Hajj said the company is “doing very good putting fiber” and growing broadband and pay TV as part of a “quad play” strategy, but cited particular difficulty deploying fiber in Buenos Aires. He said challenges include being unable to rent telephone poles and difficulties deploying underground. He also said Buenos Aires could become more competitive given that “Telecom buying Telefónica” could result in high market share for a competitor.
On working capital, García Moreno said the company increased inventory to be cautious about availability of supplies, noting strong equipment sales across several markets. He also said handset financing is contributing to working capital needs, pointing to Mexico where the company “basically [is] leasing the handsets.” Hajj added that memory chip prices have been rising and handset prices are increasing, prompting the company to ensure adequate inventory in case of shortages.
Mexico and Brazil: growth drivers, competition, and pricing
Executives fielded multiple questions on Mexico. Hajj attributed improving Mexico mobile trends to a stronger economy and wage increases, saying prepaid performance is closely tied to economic conditions. He also said postpaid growth has been strong over several quarters, supported by promotions, higher ARPU, and customers migrating to better plans and consuming more.
On Mexico’s subscriber line registry requirements, Hajj said the registration process could reduce activations and increase base “clean[ing]” as unregistered lines face cancellation by July 1. He said he is focused less on headline line counts and more on “good subscribers” reflected in ARPU and revenues.
On fixed broadband, Hajj said he does not expect net adds to slow, noting the ongoing migration from copper to fiber and saying 93% of the base is now on fiber. He also cited a recent speed increase of roughly one-third at the same price. COO Oscar Von Hauske Solís added that the company is positioning its broadband offer for small businesses by bundling connectivity with cloud services, cybersecurity, and productivity tools, supported by a dedicated team.
In Brazil, Hajj said the company does not currently have plans to increase prices in mobile, broadband, or TV this year. He also said the company has been gaining in number portability for several years and that NuCel has helped expand portability gains, attributing performance to 5G quality, customer care, bundled offers, and promotions.
The company also addressed the possibility of working with Starlink on direct-to-cell services. Hajj said he believes large-scale direct-to-cell service would be tied to new satellites expected around 2027, but emphasized that the company is already in discussions and is open to partnerships that make sense. He added that direct-to-cell requires spectrum and said he was not sure about Starlink’s spectrum position in Latin America.
América Móvil’s next Investor Day will be held May 27 in New York City, Head of Investor Relations Daniela Lecuona said.
About America Movil NYSE: AMX
América Móvil is a Mexican telecommunications company headquartered in Mexico City that provides a broad range of communications services. Established in the early 2000s out of the expansion of the Slim family's telecommunications holdings, the company is a major provider of mobile and fixed-line telephony, broadband internet and pay-television services in the region. Its operations span retail consumer services as well as wholesale and enterprise solutions, positioning it as an integrated communications provider across multiple customer segments.
The company markets services under several regional brands—most notably Telcel in Mexico and Claro across many Latin American markets—and offers both prepaid and postpaid mobile plans, fixed and mobile broadband, fiber-to-the-home where available, and video/broadcast distribution services.
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