America Movil Q2 Earnings Call Highlights

Key Points

• América Móvil posted a solid second quarter, with revenue up 3.1%, EBITDA up 3.8% and net income up 9.2% year over year, helped by stronger service revenue and operating profit growth.
• Customer gains were led by postpaid mobile and fixed broadband, while Brazil saw more promotional competition and Mexico benefited from higher prepaid usage and postpaid plan upgrades.
• Management said capital allocation remains focused on fiber-focused acquisitions, leverage discipline and shareholder returns, while keeping full-year capex on track at about $7 billion.

America Movil NYSE: AMX reported higher second-quarter 2026 revenue, EBITDA and net income, with management pointing to continued growth in postpaid mobile and fixed broadband customers while addressing competitive pressures in Brazil, growth in Mexico and Colombia, and a selective acquisition strategy focused on fiber assets.

Chief Financial Officer Carlos García Moreno said second-quarter revenue rose 3.1% year over year in Mexican peso terms to MXN 241 billion. Service revenue increased 3.4%, while EBITDA rose 3.8%. At constant exchange rates, service revenue grew 5.1% and EBITDA increased 5.3%, or 6.7% excluding a one-off charge in Mexico.

Operating profit totaled MXN 51.8 billion, up 9.5% in peso terms. Net income reached MXN 24 billion, a 9.2% increase from the prior-year quarter, equivalent to MXN 0.40 per share and $0.47 per ADR.

Postpaid and broadband drive customer growth

García Moreno said the company added 3.5 million postpaid subscribers in the quarter, led by Brazil with 1.5 million additions. Colombia added 250,000 postpaid subscribers, Peru 173,000, Argentina 154,000 and Mexico 101,000.

In prepaid, the company recorded 3 million net losses as Colombia and Argentina cleaned up their subscriber bases. In fixed-line services, América Móvil connected 531,000 new broadband accesses, with Mexico contributing 170,000, Brazil 83,000 and Colombia 74,000. Pay TV added 110,000 units, mainly from Argentina, Eastern Europe and Central America.

Management said mobile postpaid and fixed broadband remained the main sources of customer growth, rising 9.1% and 6.1%, respectively, from the year-earlier quarter.

Mobile service revenue grew 6.5%, continuing its recent pace. Postpaid revenue expanded 7.2%, while prepaid revenue growth accelerated to 5.3% from 3.1% a year earlier. Fixed-line service revenue growth improved to 2.7% from 1.7% in the prior quarter, with García Moreno saying the downward trend in fixed-line growth had ended.

Brazil faces more promotional competition

Chief Executive Officer Daniel Hajj said Brazil’s mobile market had become more promotional, particularly in prepaid and postpaid. He said competitors TIM and Vivo had been more aggressive since May, requiring América Móvil’s Claro business to respond.

“If promotions and our competitors are more aggressive, we need to be a little bit more aggressive,” Hajj said. He added that the company remained a net gainer in postpaid mobile portability and expected some recovery in mobile growth in the third quarter and more so in the fourth quarter, though he said the path would depend on competitors’ actions.

Hajj said Brazil’s fixed-line business was performing better, with revenue growth improving from 1.5% a year ago to 4.1% in the latest quarter. He cited the company’s network, 5G investments, customer care, net promoter score and convergence strategy as strengths. He also said management was watching signs of a possible economic slowdown in Brazil.

Mexico benefits from higher usage and plan upgrades

In Mexico, management said prepaid revenue growth had continued to accelerate as customers recharged more frequently and at higher amounts. Hajj said customers who previously bought MXN 50 prepaid cards were increasingly buying MXN 80 or MXN 100 recharges, while data usage continued to rise.

Hajj also highlighted the company’s 5G network in Mexico, saying it was helping both prepaid and postpaid performance. He said about half of renewing postpaid customers were upgrading their plans, which was supporting postpaid revenue growth.

Asked about the World Cup’s impact on Mexican mobile revenue, Hajj said the event helped “a little bit” through roaming and increased usage, but he did not describe it as a major driver because Mexico hosted only a limited number of games and the impact was concentrated in part of June.

On Mexico’s mobile registration process, Hajj said postpaid customers were already registered and that the remaining process applies to prepaid subscribers. He said the new registration schedule begins Aug. 15 and runs to late November or early December, with registration dates depending on the final digit of a customer’s phone number. Since January, all new customers have been required to register.

Colombia, Peru and Argentina remain growth markets

Hajj said Colombia continued to perform strongly, with mobile revenue growth moving from 7% to 7.6% and then to 10%. He said América Móvil was the first to launch 5G in Colombia and was benefiting from network quality, portability gains and customers moving to higher plans. He added that the company was also expanding fiber and seeing growth in the corporate segment.

In Argentina, Hajj said the company expects to compete against a larger rival but will continue investing in fiber, broadband, TV and 5G while maintaining competitive pricing.

Management also highlighted Peru, where Hajj said fixed-side growth was about 12%, calling it “incredible.” He said Peru offered opportunities in broadband, corporate services and small businesses.

Capital allocation focuses on leverage, fiber deals and shareholder returns

For the first half of 2026, América Móvil reported MXN 48 billion in capital expenditures, MXN 4.6 billion in share buybacks and MXN 8.4 billion related to labor obligations, all covered by cash flow. García Moreno said net debt, excluding capitalized lease obligations, totaled MXN 402 billion at the end of June, representing 1.31 times last-12-month EBITDA after leases.

Hajj said the company remains on track for about $7 billion in full-year capital expenditures. García Moreno reiterated that management seeks to keep leverage between 1.2 times and 1.5 times net debt to EBITDA, while accounting for expected transactions such as the Desktop acquisition, which the company expects could close this year.

Hajj also discussed the recently announced WOW acquisition in Peru, describing it as a strategic fit that adds fiber, more than 3 million homes passed and about 500,000 customers. He said the network is outside Lima and complements América Móvil’s footprint, with potential synergies in broadband, mobile, TV, corporate and small-business services.

More broadly, Hajj said the company is looking for acquisitions within existing countries that add fiber customers and help consolidate markets, rather than expansion into new countries. He said capital allocation will continue to balance acquisitions, shareholder returns and debt reduction.

Management also addressed a MXN 1.3 billion regulatory fine related to Telnor, an affiliate of Telmex. García Moreno said the matter dates back to 2017 and involved an alleged violation of asymmetric measures, with the fine imposed in 2020 and becoming final in June. He called the fine “disproportional” and said the company does not expect more such fines, though he added, “Let’s see.”

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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