America Movil Q3 Earnings Call Highlights

Key Points

• Third-quarter results improved: Revenue rose 7.6% year over year to MXN 251 billion, while EBITDA increased 6.7% at constant exchange rates and net profit grew 7% to MXN 24 billion.
• Postpaid and broadband drove growth: América Móvil added 3.1 million postpaid subscribers and 390,000 fixed-broadband customers, offsetting a 5 million prepaid decline largely caused by customer-base cleanups in Mexico and Colombia.
• Cash flow strengthened the balance sheet: The company fully funded MXN 76 billion of year-to-date capital expenditures with cash flow, reduced net debt by MXN 34 billion, and lowered leverage to 1.21 times EBITDA after leases while maintaining plans for roughly $7 billion in 2026 capital spending.

America Movil NYSE: AMX reported third-quarter revenue of MXN 251 billion, up 7.6% from a year earlier, as growth in mobile postpaid and fixed broadband services helped offset prepaid subscriber disconnections tied largely to customer-base cleanups in Mexico and Colombia.

EBITDA reached a 40.8% margin, improving by 0.5 percentage points year over year. At constant exchange rates, service revenue rose 5.3% and EBITDA increased 6.7%, according to CFO Carlos García Moreno. Mobile service revenue increased 6.3%, while fixed-line revenue growth accelerated to 3.7% from 2.7% in the preceding quarter.

Net profit totaled MXN 24 billion, up 7% year over year, bringing nine-month net income to MXN 72 billion. Operating profit increased 13.9% to MXN 57 billion, aided by depreciation and amortization charges that rose only 3%. The company said an 11.2% decline in net interest expense was partly offset by foreign-exchange losses of MXN 3.6 billion, compared with foreign-exchange gains in the prior-year period.

Postpaid and Broadband Drive Customer Growth

The company added 3.1 million postpaid subscribers during the quarter, roughly in line with the average of the previous four quarters. Brazil led additions with 743,000 customers, followed by Colombia with 348,000, Peru with 229,000, Mexico with 144,000 and Argentina with 126,000.

Prepaid subscriptions declined by 5 million, primarily because of customer-base cleanups in Mexico and Colombia. Still, America Movil recorded combined prepaid net additions of 745,000 in Eastern Europe, Argentina, Central America and Ecuador.

Fixed broadband net additions were 390,000, led by Brazil with 94,000, Colombia with 67,000 and Argentina with 53,000. Pay-TV net additions totaled 50,000, with Eastern Europe and Central America responsible for most of the growth. Year over year, postpaid mobile accesses increased 8.9% and fixed broadband accesses rose 5.6%.

In Mexico, CEO Daniel Hajj said postpaid performance has benefited from customers moving to higher-value plans and from migration from prepaid to postpaid plans. He said roughly half of customers renewing plans at the company’s service centers are selecting better plans. García Moreno added that postpaid average revenue per user growth in Mexico has shown continued acceleration over at least the past three years.

Hajj said Mexico’s prepaid registration mandate has contributed to disconnections and could weigh on prepaid revenue in the short term. However, he said the company expects customers ultimately to register rather than remain disconnected, allowing the business to recover over the medium and long term.

Mexico Broadband Cleanup and Fiber Upgrades

Management said lower broadband net additions in Mexico reflected a cleanup of customers who were not paying or consuming services. The move helped support stronger revenue growth, García Moreno said.

COO Oscar Von Hauske Solís said the company also increased connection speeds across its customer base, while focusing on churn reduction and upselling. He said 94% of the company’s Mexican broadband customers are connected through fiber.

Hajj said the company expects Televisa to be a strong competitor if it completes its acquisition of AT&T’s Mexican assets, but said America Movil would continue to focus on network investment, 5G coverage, customer service and distribution. He added that the company hopes Mexican authorities will permit it to offer bundled fixed and mobile services, as competitors would be able to do.

Brazil Competition and Investment Plans

In Brazil, Hajj said mobile promotions have shown some stabilization, although the company remains cautious heading into the fourth-quarter holiday period. He said promotional activity remains elevated in broadband and television, where numerous fiber internet service providers compete.

The company added about 90,000 broadband subscribers in Brazil and began integrating Desktop on Oct. 1. Hajj said Desktop has about 4.8 million homes passed, more than half of them in areas where America Movil previously did not have a fiber footprint. Management expects commercial and operational synergies as it offers additional products to Desktop customers and fiber service to existing mobile subscribers.

Hajj said capital expenditures are expected to remain near $7 billion next year, with potential variation of about 5% above or below that level. Currency movements have reduced reported capital spending in pesos this year because the company allocates capital-expenditure budgets to subsidiaries in dollars, he said.

Cash Flow, Debt Reduction and Regional Trends

For the first nine months, capital expenditures totaled MXN 76 billion and were fully funded by cash flow. The company reduced net debt in cash-flow terms by MXN 34 billion and returned MXN 27 billion to shareholders through buybacks and dividends.

Free cash flow was 41% higher than in 2025, according to García Moreno. Net debt excluding leases stood at MXN 400 billion at quarter-end, equivalent to 1.21 times EBITDA after leases, down from 1.50 times at the end of 2025.

Management reiterated its target leverage range of 1.2 to 1.5 times and said it must accommodate buybacks, dividends and acquisitions within that framework. García Moreno cited the planned consolidation of VTR, valued at BRL 4 billion, as a near-term use of capital, along with a remaining dividend payment of about MXN 17 billion. He also said the company is awaiting regulatory approval for an acquisition in Peru and expects a transaction in Colombia potentially by year-end.

Elsewhere, Hajj highlighted Argentina’s improving economy, the company’s 5G network and corporate capabilities. In Colombia, he cited 5G coverage, customer retention and upselling as drivers of growth. Central America posted 11.4% service-revenue growth and 16.1% EBITDA growth in the quarter, García Moreno said.

Management also said it is using artificial intelligence tools to improve customer interactions, call-center operations and network maintenance, with the aim of reducing costs and resolving customer issues more quickly.

About America Movil (NYSE:AMX)

América Móvil, SAB. de C.V. is a Mexico-based telecommunications company that provides wireless and fixed-line communications services. Its offerings include mobile voice and data, broadband internet, landline telephone service, pay television, digital services, and enterprise telecommunications solutions. The company serves individual consumers, businesses, and government customers.

América Móvil operates across Latin America, the United States, and parts of Europe. Its principal brands include Telcel in Mexico and Claro in several Latin American markets.

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