Q3 2019 Earnings Call
At this time I would like to welcome everyone to the America Movil third quarter 2019 conference call and webcast.
Lines have been placed on mute to prevent any background noise.
After the speaker's remarks will be a question and answer session.
If he'd like to ask a question. During this time simply press star and the number one on your telephone keypad, if you'd like to withdraw your question Press County.
I would now like to turn the call over to Miss Daniela Lecuona.
Head of Investor Relations. Please go ahead.
Thank you good morning, everyone. Thank you for joining up because I used to the school, sorry third quarter financial and operating results.
Selling the line, we say that need gosh, you hope.
Tim what I know your full I mean, what's kind of Oh gosh they feel.
Thank you then the alone.
Welcome everyone to American mobile kind of water.
Talking about 90 financial and operating reports and.
I'm going up Roxburgh Carlos to maker So Marty.
There were so.
Thank you.
Good morning, everyone.
No I mean, we're not gonna be strong economic reports from the U.S. logic or order.
The global economy continues to slow down they tend to decline could would follow brought about a major dropping your enter a good to the theory would be fair, reducing we've kind of great boards and Goodyear crusher yield spalink, yet it's close to their all time low.
In Latin America, several is controlled by the feed Mexico, Chile.
For the European your interest rate reductions was one of those countries were also experiencing significant economic be couldn't ratio.
We ended September .
A couple of years and if you're on a one subscribers.
1.6 can become postpaid subscribers in the quarter.
Sure Michael maybe you can do that's something that's either 250000 from Mexico 15 cousin from Oscar I.
Well just connecting it quarter to me given kind of big Big jumps up nicely with open in Betsy.
Something come to corner and they Patterson newborn mattresses and to be connections going down 47000, white lines, and I'm wondering and government they could be.
No one both breed on fixed broadband remained been named drivers of Bucks is both a 7.8% and 5.6% year over year, respectively wouldn't know what prepaid compared to the unit decline you pick up from 12%.
It's always axis faced with them.
Slightly people want to present, the from a year before.
Oh, good solid revenue growth can be bought it would or whether you're switching to can afford it written business.
Actually come before it was likely to you feel free to play I think he's right to be pursuing from various currencies, but great London, where you can have basis, because you can Mexican peso.
In addition, before.
[laughter] James grades.
Revenue growth remains solid we should be suburbans, expanding to 1% Lucky stuff do any prior quarter.
[laughter] booking.
All of these pockets, where you've got to can be met these calculations, because the accounting I wouldn't get exposed telling them in a things up but an occasional joseph.
Sure I concur spoke to the best <unk>, which you know in over a year.
Yeah, you're part of 16 or was it or is it that came in the killing it to be a vessel was equivalent to 31.7% weddings organically and of course conducts uniclic.
Yeah, that's been to 2%, however, I joked before the bookings last year of an extraordinary weather you I can you I think for legal proceeding into food.
For restructuring charges can also associated with its programmable every retardant went belief.
We think with 7.2% over the years it is important.
4.6% more cities, where the news wouldn't be driver of revenue.
Brad Anderson funding Lantus, Trenton, Duffy, 82% in Mexico, 4.7%, both Colombia and you.
The Dominican Republic, I think I know you've got all the way you fiscal performance.
That's a frictionless every revenues declined 1.2% principally because of the adoption of <unk> Petersburg.
[noise] postpaid revenues continued to accelerate increasing at a base of five point that person.
Prepaid revenues or to the game, where did I Miss money somebody markets, including Mexico, and Colombia, mainly on account weighted data consumption.
[noise] rather than from fixed broadband services and corporate <unk> networks.
5.7% countries pretty well, 10%, respectively, well pay TV revenues, although still down 3.3% on a yearly basis.
Every last through the third quarter, posting a 2% sequential increase.
So we do kick in the third quarter they increased 2%.
Yes, some concrete but wondering unimportant example, that you can't get somebody going well on all pretty decent Atlanta, most broadband and baby.
In Mexico, prepaid revenues could well be worried at more than 10% what both the <unk> stayed close to 6% or they kept for quite some time, though.
On the picks up like one data services you bring reconnect corporates.
Grew 2.7% with boys Liberty has continued to decline on a yearly basis.
What do you know maybe that's your top 7.6% could Mexico come to you before.
Reflecting greater operating leverage and would cost control.
In Brasil.
Posted revenues accelerated.
30.5%. They followed this time, but prepaid revenues of 4.8%.
It's broadband revenues decelerated to 6.6% complete TV aboard revenues improved slightly on sequential basis.
EBITDA was up 7.6% industry.
Equally Colombia EBITDA increased 4.2%.
Fixed broadband revenues accidently right.
15.6% base I'm pleased that revenues continue to recover.
And then 4.6% from the year before.
[noise] indicates of truck.
She's revenue growth remain slightly below 60 produced a successful several quarters.
Do you think that gross spread goalkeeping presented on a yearly basis.
In addition to be one, but nothing that I, just mentioned, Mexico, but few Colombia on drugs.
You could that sport expansion was very strong also you.
Lifting even but in Colombia or growing nearly 15% year on year.
Oh, we raised or bring perfect for 58 different basis.
7.3 person I called perhaps you could not be perfect purposes.
Bynum parent company, mostly from foreign exchange losses.
From the depreciation will be Columbia, Missouri, do not because if we're lucky to be Boulder.
I'm very back from accounts payable was a part of your son Motors.
Okay or d., we have been done it perfect for 15 billion basically the beer liquids to put it that since they share what's been going if his baby.
I would caution <unk> together with Mitsui knocking off for people remember your impressions through September .
Now before your corporate capital expenditures for 500, the numbers will fall in shareholder distributions will be in business basic began in acquisitions or what's going to figure out what that number.
No thats pension obligations in the month of seven can be jump is if you can be nine months to September .
The end of September when it that's sort of two coincidently 3 billion business, including well.
Capitalized lease obligations.
Are you Fysixteen.
Our net debt to EBITDA a lot of most.
Well the 1.1.
1.92 times using for consistent he'd be Niccolo you got your 240 60, VB one we haven't come from Kentucky. So they should be one, but we will compete focus on who.
Make sure or before where the we're making towards our goal of one under kind of thing might be and well, but do you think.
Okay, That's fair I would like to Buck the full back to run it.
Oh, I'm, sorry, I'm, hoping you and me.
Because we're going to start with a journey.
Thank you Carlos Thank you.
[noise] at this time I'd like to remind everyone in order to ask a question. Please press star and the number one on your telephone keypad well pause for just a moment you can tell the Q any roster.
Your first question comes from the line of ready goal villain Abrams from Merrill Your line is open.
Yes. Thank you good morning.
<unk>.
A couple of questions. The first couple of Mexico, and then one im going to see if I may.
Regarding Mexico, we saw again I'm not.
Vessels, increasing by almost 7% year on year on by around 3% quarter on quarter.
But these comes mostly from higher usage.
However, considering that your peers are raising prices.
In Mexico.
Well.
It would be the first question. Thank you.
[laughter] hybrids reasonable.
Eric I'd say, that's as you said the ARPU in Mexico, you see is growing the 7% and that mainly due to talk about baby food revenues from prepaid prepays that revenues have grown quite wrong, then 10 to 11.4 cents. So the growth in the evening in Serbia.
Revenue in prepaid.
What is very good on that I don't see it really increase some prices I think being Greece, <unk> Francis optical but each of them, what's mainly I run eight green or may.
And then last.
Months', we don't see any increase in EAME right.
From.
For the fourth quarter that they eat smart, let that Christmas season, we're not seeing any increase on prices are at this moment, maybe in some on sets a new concept, so something like that but we.
We are not planning to race any price as a day for the Greece might say promotions.
These next at two three months or roughly.
Understood. Thank you. Thank you very much.
Questions regarding a six Brooklyn.
In Mexico, we saw a decline of 2%.
During the quarter.
However, we also see.
Broadband subscribers.
Almost 4%.
I was wondering if you put it out where you'd be more on the reason behind the revenue decline.
No just only talk a little bit more on the first question I think that people in Mexico is consuming more we're keeping a very good network.
We are giving four point fiveg to all of our customers I think a lot offset greet base costumers are moving to smartphones and Bces Mart phone shark. Once you mean more data and also east east something that he's helping loss.
At two to two month, they ARPU in prepaid and it started these revenues seen in prepaid to grow a more than country, you're used to have to quit talking you can say the legal.
The sequential increase in consumption of based on say leases in Mexico, well nearly 15%.
The second quarter, two third quarter equally we increased by nearly 15% de bid I just wish they'd like yeah Gulf <unk> prepaid customers are are moving to two feature phone Sutton BCP. Two forms are consuming block more deep in the fixed the I think competition needs to is strong.
As we said today at the beginning of the year that tenant mix. He said it is seen best be more is doing the more fiber to the note <unk> fiber to the future fiber to the home, so where there's a really investing.
All around Mexico in that big sites and the reason why AD revenues decreased 2% I'm. That's was scrapers increase is because because they'll always be ER.
Competition I worked costumer start moving a little would be down soil. They used to carve up design apart from 400 vessels. They are moving to up long enough to recon good on peep I suppose because the archiving and they're just be done better speeds on everything there. So we're trying to give them a very good quite meet the unwary.
Testing to increase our worst sorry piece on network quality I'm not worried speed seen in thing into peak side.
Understood and finally regarding but to see if I may and could you.
Sure, we daus and your thoughts.
Nomics, particularly wireless.
Okay, but a few we have seen your competitors.
The leading company postpaid.
We think prices.
Extends over the last 12 months.
So I was wondering if you expect to follow them in terms of price increases.
Do you expect to grow our Blondie by increased usage. Thank you.
Well I'm not sure I agree with what you are saying because a they eat that lever caught your prices both men and the other site. They gave a lot of promotions. So I don't think they really really are increasing breaks it's all in but I feel we we we have been investing we have very good 4.5 say Gi net.
Works very well the speeds I worked Corbett arch guards beaming greasing were moving on transforming everything to beat done.
We're giving very good service to our or not worked costumers. So I think we have a very very who brought both started using wireless seen but I've seen and that's why we're growing more than I'm like 11, four cents thought were a word sotheby's revenue there and mostly in phosphate.
Also our and giving us a.
Awesome Columbus, there. So we have a good speaks the PV and we're giving that combo. There. So everything is working fine in Brasil and I really don't think that's priced disguise been increase so far were competitor so let's see what he's going to happen in fourth quarter bought a we.
We what we are really really focusing east on keeping the debt service to our word customer and ER Doc means quality de Gaulle data speeds.
Yeah, I'm, giving up very boss sales Sotheby's to do all of them. So.
I work brand collateral brands has been improving a lot.
And that perception of the people there is very well also so we are doing very well do jobbing, even in the rebates hiding in Brazil.
Understood. All so I said that same much Mexico before lease a consuming a lot. They are doubling the megabytes abuse also in Brasil. So if you gave the speed you'll be good network. They talk about baby Boomer foam I'm sure.
People is going to spend more.
Thank you very much on it.
Your next question comes from the line of Alihan Drew Galosh press on BBV. Your line is open.
Hi, good morning.
<unk>.
Regarding the corporates in Mexico.
She is growing at double digits, and becoming more relevant on them.
Hi, this woman.
<unk> quote about how much you can give you can revenues and what do you start to grow market share.
Sorry bundle, we couldn't hear you very well and can you speak a little bit more slowly or because it's not so clear your voice.
I see the all my questions. My first question is regarding the corporate segment in Mexico.
The team growing at double digits.
Becoming more relevant I know how each woman if you could give us more called about.
How much can be segment contribute do you.
Yeah, Bill Mexican revenues and what do you stuff.
These corporate segment increased market share.
But I didn't yeah Youre right were corporate segment. These doing babies living Mexico, which have the doing excellent deemed that segment and the liberty more to all the beef corporates as moreland medium business as folks so and we're focusing a lot on on.
On that and or where the Liberty includes revenues flow week, our culture I'll start gotten explain a little bit all that started he says that we're giving to two to two piece or corporate customers sure.
Well there is mainly on Dan to reprice, though we used to have a they tack on activity. So we are moving from just going to TV to our solutions. So we are bringing new Serbia, the south of security cloud services on some better because the integrations for their retail.
<unk>.
Retail market or to define us market. So we are complementing the connectivity which solutions.
We believe that we need to integrate more.
Around machine, there I mean, I'm not big data that the lakes to integrate a full offering to the enterprise market. So we have a good market share them. They took on activities. So we are let us from that's going to be to bring new so when initiatives that certainly the studies Mark I was waiting to small business we are over.
Well services for old is more business on the penetration of that we've been having dairies is quite good.
Thank you.
Thank you could hang on.
The possibility that did you give us.
How much the second contributes to the Mexican revenues.
Oh, I, we don't private Oh here, but the Daniela can come back then you're not going to give it to you later, but they don't habits right now.
Sure.
And my second question, if I may have.
She now a few quarters.
Oh sort of problems with an effective tax rate above 40%.
What do you have reason behind these.
Yes, it's reasonable Cds reasonable to expect that he products, we will eventually come down again to me security.
I couldn't be the you start to story or average or be that actually to seem to middle of 32%.
We have a 30% than most will include but are you talking to bigger wants that Columbia, and but I see.
The the tax what you said before.
So I would I would.
Were they see lumpy they three person, but we start.
Then when you are.
It's basically a.
Three we think that made you right MCR one these Mexico witchcraft things that I don't think are likely going to change anytime soon one of them has to do would be ways how ah.
Mexico, you may only be adult the real interest rate and at the moment that interest like from taxes.
So that's something that have been or were there would also well good luck.
30 years have you.
The ER and North Park has to go we are.
Some expensing in be a in the payment arrangements.
Patient pension people from <unk>, and Mexico, which only won't be a couple of that maybe do something from Texas.
And that's basically the impact of Mexico.
And then essentially the other impact has to do we are use all over the amortization of.
Deferred tax credits that we have basically in Chile and BMW.
We think that we are dedupe <unk> tax credits that increases the effective tax rate.
ER and or so so it's a ER Doc slate, that's what we'll do some because it reduces or what I would suspect.
Thank you Carlos Thank you very much.
Thank you.
As a reminder, please limit yourself to one question and one follow up question. Thank you.
Our next question comes from a line of Fred means from Brett Scott Your line is open.
Good morning, everyone. Thanks, Thanks for the call have two quick questions here.
Many related to resuming the number one.
You have been pretty much dominating the net adds will be full speed segments Welch itself and I see I just want to get a better understand your most of these met Ed Company I don't believe of prepaid clients will be flipside always for also gaining a lot of clients will be cool, but usually especially on the people speed there'll be the first one then my second question.
Again, he was U prepaid revenues were up 5% you know very different from what you're seeing a further competition to last quarters. So just trying to understand if you do some fee specific then you will see plenty of Max.
Or if you are just starting to see any proven democracy whenever that these prepaid revenue.
They should.
Throughout the next quarters. Thank you.
But in the in the <unk>.
The first question on postpaid we have been focusing a lot them both state and I think the postpaid. He said people is looking outside says that's a network best quality go to speed it called that out so people is looking for that so.
We are gaining share barkdull, oh that they say, we SAP number portability, even that lot of country. So we are gaining in number portability peaceful people at least coming from other companies to two to two collateral, but also there's a lot Gulf of Oh prepaid subscribers that are moving.
[noise] boss paid.
As to be a postpaid subscriber. So we have both I don't have exactly the data here, but they were gaining market share by number portability and we're moving it's the brief.
Postpaid subscribers.
In in that theme that prepaid as we said even that that number sorry.
Disconnecting because we have these connections in the quarter I think there are.
Because part of these costs two months are moving to repay opt to postpaid sorry bought the I think these.
It's a tough compares our consumer anymore. They are moving to a better handset that they are using more data and that's why we have been growing not where revenues.
In the last the last wider if you could see let's say, let's put out. An example is but typically in Colombia in Colombia, we sat being it's the at the beginning of the year on last year, we stopped being a negative in growth in service revenue in prepaid and today we are these.
Quarter, we are growing around 5%. The there. So we are more being as the people is consuming we are being very giving more distribution and were making a very goes the commercial or a work in all the countries two to two caliber.
Everything in their himself.
A prepaid subscribers also are a little Cardinals wants to see I think I mean, because everybody on this important because that notwithstanding these migration of stupid to both.
Under these connections prepaid subscribers I didn't mention once told me Midas prepaid revenues prepaid revenues increased nearly 5% quote <unk>.
Given that we've gotten they've got beep.
Important drivers growth in the quarter nothing.
So we're kind of well it's much better subscribers.
Yes.
No well, if it's a very very clear that they know and trying to thank you.
Good.
Your next question comes from the line of embrace.
Baggage from JP Morgan Your line is open.
[noise], So oh, we're seeing a America movil going a growing a week bofa its peers in Brazil in mobile so a wonder what to think that's a visit behind that tend to think that sort of how sustainable is this the growth advantage in the next getting market share.
As I say said, we are doing very good in breast feeding I think that in prepaid and.
Phosphate also on the big side, because even need the peak site.
Good day, we're not growing I think we're maintaining all growing a little bit marketshare. There. So, but if we are going to talk a little bit about the wireless.
I wouldn't they they investments that we have been doing during the last two three years are giving us a people and they re branding that were topping weve collateral at what people being the call their Dodge.
And the way, we market or they are where products all big Columbus that were doing with that feet. So theres a lot that big convergence that were talking there. It's a it's being very imports on photo so as they are where fix a customer's wants to have.
Collateral also with them. So we package them. So we are doing a lot of commercial that deferred and commercial things. So people are leased preparing to two to two harbors or act lateral or with them. So ER and the most important thing we have a verity.
Boot networks are very size deep network, we have four point fiveg all over Brasil. So it's a excellent network and ER and ER and people is using that they are consuming Barry goes or the megabytes of used cars being doubling so.
Where where.
Very good position on the right now in breast ceiling to breed being the in the wireless type Yeah. I mean, that's a a you know we invested a lot of money over many years to be they're not did that fixed and platform embracing a recap of basic he built the convergent platform and the I will more than a longtime notably.
The more you basically wants when be peaks and I've got one day, you don't always be there's one by buying Duffy.
So I think that what you're seeing is basically the.
I've reflects some or all of those years of strong investment in developing a completion platform that there. That's it represents I I complexity, which that is giving us a it's not something that is a one quarter events. I think we would think it's something that is would you still drug is on the other very important thing is.
Convergence, what catalyst is saying on the other one these corporate <unk>. If you see two years ago, we don't crowd at the same covered our Charles how work or where our competitors cost today, we have a very who's got very much we've gotten much as the.
In in a or b better than not weren't competitor sourcing in some places in but I think it's all that gave us a very good Atlanta. So we're working I lost in the network, citing the last two years.
Perfect and that's where maybe the second question.
You are now moving towards de leveraging and are going to your targets. So it's always it's reasonable to assume that sort of next year. We should we could see an increasing distribution to from American mobile or do you think that's a there's anything lexia larger than they are something that's a could the fourq is the cash launch something else. Besides the distribution.
Because probably the de leveraging started is fully but I guess over at some point.
She wouldn't have any of US I mentioned, the and married so because your murder yeah.
We have your goal of Ah, they're getting to one another half times a bit brita.
By the end of next year, that's a there'd be card goals that we have or am I think everything else is a basically subordinated pool to be subject.
So.
I think or what are you should be focusing on the ferric how far we kinda T.I. I think.
Our were decided or lepage regimen.
Perfect. Okay. Thanks, a lot.
Thank you. Thank you.
Next question comes from the line of Diego at Gara from Goldman Sachs. Your line is open.
Yes, hi, good morning. Thanks for taking my question. My question is actually I love subsidies and in fact about your cost from our acquisition strategy.
We are seem to level off some subset of the diesel she's probably reducing over the past two years.
Now if I'm not mistaken at the lowest level ever. So can you comment about your handset sales strategy and whether it be shouldn't be view it as a major change on your cost Mark the vision you strategy given that for several years a amex you that you know aggressive, let's see handset subsidies to differentiate controlfour.
Yeah I'm, apparently it's now turning you know its focus was on different services like the collateral, perhaps the board or you know the not for quality and the customer experience. As you. Just you just mentioned during your opening remarks.
So thank you.
Well one of the main strategy, so if I'm ready come all by the through all Latin America is that the cost control and they're reducing cost and expenses and a sub sea. These he's one of the most important the expense.
In America mobile so what we have been doing a is to be.
Two things seem to in this obviously these first will be a lot off a where.
ER we knew.
Or renewing or that plans, we are financing the concept. So with that fact when you. Finally handset then you don't lose share or use on subsidize. The concept. So within that is done that Boston everything It gave you a little bit dog or more property.
If you will do it directly and I'm a big that's all lead to moving a lot to finance the concept thing the other side when you'll find that the working capital gets Guy here and then do you have to be careful with about that so there's already implications. When do you find that's because that's a lot of money when do you start to finance concepts, but.
It has been that was a good reason that's for AWS people likes to find them. They found such because instead of paying let's say three or four or $500. Gosh. Then you. They can pay maybe doing the 20 or 30 or $50 per month for the next when the board or 36 more.
So it's kind of being goals that peacekeeping loss a space to do crap more profit aim deal I.
Five years ago, everybody subsidized that rebates that briefly in the prepaid side and today, we are not subsidizing embedded in that prepaid the business and also people leave you want to be into breed basically I'm, we don't exactly.
And your credit rating then we are not giving you an it's obviously the or any financing there. So that's mainly what we're doing.
In also we have a big costs on broadly not the company's a and that will have a very very important that drive picky on where those seeing them and I'm, hoping we're transforming the company do I digital company and doing that.
We are saving a lot of of all cost over there. So let's say to give you an example, where customer care centers.
The three year several you'll have to go there and unsigned base various on everything you some paper to they everything is on BG started.
Okay.
We have chat bots to answer a question on so we are moving to that their face and it's being very equals a on the cost side.
Thank you a this was a very clear and if I may just like a second question.
Regarding like you know they werent. What's your these thoughts is on a on the Nextel acquisition and also on the Telefonica transaction in Central America, and finally on the pay TV license in Mexico, We should come just quickly comment on those three things that would be great. Thank you.
How about just that they that maybe license in Mexico.
Isn't that fit acquisition of Nextel, I think it's going well and we hope was that we can close that company maybe on November and also a looks like.
We can close the deal in November and excited about already sold so where we saw me told that they first they are asking for a little bit more off information and that we are in a good process over there and they pay TV licensing Mexico's with these costs in the past the in October .
Thing it will request a license the.
Yeah, I mean, it come over to request a in the I.P.D.A. a license to provide pay TV services in Mexico to these days, we cannot provide all the additional information they have requests for their ninebc. So the application complies with encore rent regulations on the approval for the applications convenience.
We'll be bending now and as you can see on as shown by the data published by the yes. It that the Mexican pay TV market. These highly concentrate there there is limited choice that's off the service for consumers on prices has been consistently increasing seems that telecom reform back in 2013. So in addition pay TV.
The only market of the telecom sector, where there has been known the regulatory intervention to promote competition. So I think it is because all of these reasons why we believe then terrestrial American mobile to that pay TV market will be in their best interest for the consumers. So.
That's that's what we have without bulk of any as a coupon went on this topic.
Oh, they're all in the other sites what you'll go see all around the world that.
A streaming is growing a lot. So even if you have a broadband and then streaming streaming is growing a lot. So.
Are you in the next the years you are going that see big increase in the streaming broadband in there.
ER with all the consumers or streaming is going to grow in the next year. So a lot or in that's growing around the world is going up rolling in Latin America.
That's super helpful. Thank you very much.
Thanks.
Your next question comes from the line of Carlos Legarreta from GBM. Your line is open.
Hi, Thank you good morning.
Based on Colombia, I told me they consoles, Oh, well service revenue.
So to me upholstery.
Thanks.
Could you give us more color.
Thank you.
Well I think the Columbia had been.
The results of Columbia in the in the third quarter has been extremely good.
We thought being growing it.
Words, we have been growing it seems that beginning of the year embossed base and we have been growing also in the speaks I bought that this quarter, we start being also growing the in the prepaid saw order.
Our eyewear eyewear line.
<unk> has been growing on I can give you.
A little bit don't they did I hear both the [noise].
In Colombia.
The first phase is growing 4.84 cents prepaid 4.64 cents. So it's a very good the recovery of that briefly tight.
Broadband.
18.6.
Weeks Boys 5.9, BV seek sportscenter, so all over in rolling that Big site 8.94 cents all.
We have been doing gold in Colombia.
Also investing a lot being the network onstream investing a lot in the DG downsizing the transformation the company to give a very foodservice to all our work costumers and Oh, we have very good content, a very well just between the broadband side or in the in the in the.
We had been making convergence and giving the combo to all our where costumers. So were doing I boot dropping in Colombia, youre going to up to cut the Nielsen said.
If you look that up prepaid revenues go longer which got bidding or not but do it on to win for long time.
They were up nearly 8% quarter over quarter.
And ambition do even a you know in the aggregate in Colombia.
And we'll use increased by 7.4% again quarter over quarter.
Okay, 1% year over year and will you.
Whereas.
Dave per client.
Increased 81% year over year, I'm, 20% quarter over quarter. So we are.
Yes. It was brought to you or we're thinking about feel any Mexico. It's a more for more kind of strategy. We are driving we're spending like having people consume more data and they live case, even also more votes.
That's very helpful. Thank you make a follow up.
It's more on the strategic site.
As you guys have probably noticed and there seems to be a plane across a larger operators that are perhaps moving to divest posting a whole assets such as our fiber data centers et cetera. All you can get your mix.
Hi, Jane just frame or you still see this asset quality of course Claudia Thank you.
Right, we know that the three years three years ago, no more four years I've always been exciting Mexico was being.
Off the top worse it was more important regulatory to give or what the regulators wanted to give access there will be to all the competitors will always be not the that that was weak great telesites onto they everybody can use that that were says the in Mexico and what is that that's a.
And you are seeing what this company here in Mexico now so it's not the problem of access access they have been.
In the strategic side, we are not thinking at this moment to spin off but any other dot where or just be not datacenters or dual five there I think.
Okay.
Okay.
We are not very good post these young financially and there were trying to get that target for next year and so we don't have any pressure due to spin.
All for any of our where the important baskets up these moment.
Thank you very much.
Your next question comes from the line of one Abelow Eleva from Credit Suisse. Your line is open.
Hello. Good morning. Thank you for taking my question I, just a small did in terms of how you see the macro slowdown in Mexico and do you think you've results could have been even better use the macro scenario was a little bit better in Mexico. Thanks.
Well done.
Uh huh.
It's interesting question, but booked a I could what the what I can tell me that.
The things are going well in the in the prepaid side, we're growing 10% our revenue. So we're not seeing any that's a that's a celebration on day on that core know me not be not where product the.
Remember telecom he's very recycling.
Sometimes two to two to the economy bought the today in Mexico, we're not seeing any any and they said duration on our problem.
Thank you very much and just as a follow up just a quick oh in terms of affair.
Just if you could provide a little bit more color on on the competitive market over there and and a if you expect.
To keep delivering a good EBITDA growth over there despite like.
Tough competitive environment.
The competition. This is still very tall freixas has been going down and that's why you see that thought where revenue is going down bought a we stopped being putting a lot of pressure on cost control and the soft CV says, we have been discussing and Ah Ah digitalization transforming the company to beach.
Got it to saving costs and that's what we're doing both in terms of the competition. The commercial competition in battle, it's been very thoughtfully difficult prices are very low and ER. When we are competing we are upgrading all out where networks. We are putting a lot of money on the call beta.
Chess day, we are investing also during the peak size and we're being developed in the future if they'd always gonna be a little bit more a reasonable that prices will be on the it'll be more recent.
Thank you very much.
Thank you.
Your next question comes on line of Maria as they know fan you beat your line is open.
Hi, Thanks for taking the questions I have to questions on my side. The first one is on Fiveg.
You have the best that's working very strong spectrum Tony.
Do you think it's not for us to assume that you were not going to need camping search to roll out.
Should we expect the same level of Capex for 2020 in 2021.
So we don't think we're gonna rights, our topic seem 20, and 21 because of Fiveg, what we think that we're not going to carry off Oh, its oh, putting fiveg in Latin America at what what were doing right now we used to be that's what lies the network must fiber to more fiber to the.
No and some things that we're going night use in in the in Fiveg when we decide to do launched Fiveg.
We we are definitely the only gone through where we're going to like launched Fiveg shown is Austria bodies will not be on February bought the although it adds were only making besting sand or and as I said at improving that network and make the network.
D to decide when we want to do launch by GE, we are not planning to put more capex because of Fiveg.
Perfect. Thank you very much.
Second question on Brazil, do you see them for my kids repair.
Do you goes from four to three players and are you interested in participating of any consolidation move or even acquiring more bile spectrum in the secondary market or nextel was enough in terms of personal M&A for your strategy.
No I like what we were going live on looking but I feel I think the and we hope that's what I've seen a we will start the good recovery next year the economy would recover next year.
There's a lot of Rumohr stopped all he is for sale some of them that some assets are gonna be for say all other as that but they are going up sell it to thoughtfully or they are going that mix. We have somebody come all while of course, we are interested in doing something weve already in him, but I feel and.
Are we are open to these costs and me.
The thing that will be we are I think we the with the aspect to them off mix that it was gonna be our goals the increase of spectrum for AWS bought a also we are interested in the mobile sites from scratch reverse or infrastructure. We are open to these costs.
Or something we they already.
Well I think that it even before any acquisition as a a you know luxuries consolidating or they buy they are simply because oh, one of the company because he's he's has been bleeding client funds and revenues and EBITDA. So that basically used up you might get Lisa Thompson clicking.
Perfect. Thank you very much.
I can tell you.
[laughter].
Your next question comes from the line of Carlos when Guerra from BTG. Your line is open.
Hi, Thank you. Good morning. So my question is kind of a follow up front previous question. So after after the acquisition of Nextel, Brazil cloud or has now like 20 megahertz more speculative view and almost 60 megahertz more than she my question is how important competitively do you think did is going to being the next quarter's effect that you have you know.
Significant more expect front and then go to please thank you.
I think it's not something that it's for the next quarters I think two habit spectrum, you youre going to habits bathroom, and then you'll have to.
At both network over there and do a lot of investments.
And and a solid spectrum in school is very good very important for us, but it's important for the future and I think theme and people are going up half or there is gonna be more options seem brasil for modest spectrum and they are gonna have the alternative to buy more I think what these imports.
Something but I see photos piece that we have a good fixed network a good broadband network I go TV network, and a and were doing converge and meet price or look at all we thought about where combos and piece Bumbles has been very successful and so that's really what the size being.
As a important for collateral in but I seem to have the convergence and do that compost or add for all our customers know even that you have to five good call that article networks. All around we're giving we're leaving I must start can talk a little bit more worried evening I would.
Fully drop broad line in peaks out what ultra broadband.
Market I think we were 49.9% like 54, Centene day, we put up a lot, but what people know studies, you'll kind of explain a little bit more what we're doing in blessing sure.
We we have all the network the cable network prepared with DOCSIS boxes, we could move to DOCSIS 3.1 to get this pizza, we couldn't get the once you got me when the markets need it but secondly, we are building fiber to home. We opened 62 cities with right now with a fiber to home. So we are expanding their fiber.
Our footprint as Neil mentioned to be ready for Fiveg getting grocers that fiber you sort of so we did a scandals mainstream.
Yes, its residents in the fixed to make a robust network not only in the long haul metropolitan brings in order to have these five it closer to the users.
So I think that's what gevos and the growth that work happening in resi.
The convergence.
Oh no wonderful thank you very much.
Your next question comes from the line of Walter pipe from like check your line is open.
Great. Thanks, Daniel you had mentioned that the Capex is not increasing obvious your EBITDA.
EBITDA is increasing.
So I guess the questions for Carlos in terms of the one and a half times leverage do you expect to get some reduction in the interests that you're paying on your debt like you're expecting to refinance the debt at one and a half times leverage or.
Otherwise why not use some of that free cash flow now the right you've been under two times leverage for a couple of quarters now.
To buy some to buy some stock.
[noise] ordered by more stock aggressively.
Two.
Hi, Walter.
I think this is a b.
Usually scotia without a a you know we have Uh huh.
Preference for anymore, because they're looking financially.
I think the mindset in the company's studying beef industry, where you have such a rapid technological change your ability to stay in the game might be compared to Q very much or festival with your ability to continue to invest and that means because you've got to kind of I don't know drypowder always.
It's better to be able to unfair opportunistically, if there's going to be up why you'd like that where do you know with mid scale and be in market. There's from Central America, and it's important to be able enough I said to bring that we're about to be team or be enforced.
Regarding fiveg I do like so I think a we believe it or strategically important for these companies remain Oh, Wisconsin financially strong recover as you know the ballpark great great things can be sector.
I believe that thought being pretty baby those plants Blake you know were being more competitive people usually market.
Understood and then so when you do reach one and a half times leverage you should it be our expectation that the company would just maintain that leverage and then use use that excess free cash flow for share repurchase or endorsed dividends and that's what we have only be passed remember we used to be up the and now where do they said one time.
Good Privy to I'm, not all of the excess cash flow.
ER was basically be treated back to shareholders.
So this time around we are reducing leverage but once we get too I would be failure.
Which are we likely will be able to include distributions.
Sure. Thanks.
Yeah.
Thanks, Dan.
Thank you.
Your next question comes from a line of Ric Prentiss from Raymond James Your line is open.
Thank you for taking my questions, you've mentioned convergence a couple of times and how important others can you talk a little bit about what you see happening in Puerto Rico as a as liberty looks to buy the a the 18 t. properties there and it was a second question what are your thoughts on the U.S. with the possibility of dish, becoming a facilities based.
Up or what that might do to the competitive environment like it.
Well in Puerto Rico.
Well I can't be what's also are compared to your days they and they are also having some are in the ways. They can do convergence or imports are required to where they can do what they are going outside led to liberty, there's gonna be and new competitor over there. So.
Well, that's we need to compete were doing our job there that we the.
Last year.
If you are getting a we are making all the network I gained we are re remaking the peaks network in some in some places so we're putting a movie investments over there and in in the wireless side, we are ready weeks I've been doing that and.
In the big side, we spin.
At investing for this year on the next one might think we're gonna be well prepared to give a good speeds.
As a convergence.
At TV and on and Andy that will drive and that's where needing no.
And in the U.S. well.
That's something that you'd cost to close I understand that that dish is going up by they saw my sets the spectrum and subscribers from.
From the.
T mobile lemon screen friendly fees. They close they are going up by these and.
As a platform truck when he's doing booth and we can kind of another another carrier that's gotten gevo says that capacity. That's the case on on on the if that close weeks I've I know that alternative to have capacity from from dish and also I think it will be good for ourselves.
Okay. Thank you.
Thank you were.
There are no further questions at this time I would now like to turn the call over to Mr., Daniel Hajj for closing remarks I.
Just a thank everyone for being in the call I'm. Thank you are little Scott on Venezuela. Thank you very much.
Thank you for your old.