Q4 2019 Earnings Call
Ladies and gentlemen, this a feel for either today's conference is scheduled to begin momentarily until that time Airlines will again be placed on these calls thank you for your patience.
[music].
Operator today.
This time I would like to welcome everyone to the American Mobile fourth quarter 2019 conference call in Love Cats.
All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If he would like to ask a question. During this time simply press star followed by the number one on your telephone keypad did he would like to withdraw your question.
Keith.
Thank you now I will turn the call over domestic Daniela Lecuona head of Investor Relations.
[music]. Thank you good morning, everyone. Thanks for joining most to these goals or fourth quarter financial and operating results. We have today on the line, we certainly need gosh, you if they've done a good RPM, what I know CFO Henri thorough federal coal skate see old.
Thanks, and then.
Youre welcome everyone.
Carlos is going to make or somebody there fourth quarter results to affect your guys and good morning, everyone.
Well it would be your long term interest rates, probably locking in the fourth quarter. After I started agenda began in February.
It would be spoke market, reaching all time, probably won't be bucks expanded card momentum I'd be said reduction in interest groups.
The year ended on many putting notably U.S. academic Frank.
Based on third coupled with weak, but improving labor to pick them on the could be repeated that make us like your conclusion.
Yeah, I'd be guarantee from to rejoin generally strengthened a were stable throughout the quarter would be motorbikes. It shouldn't be chewed up there. So that'd be appreciated if it was something social and different last November.
We added.
1.9 million mobile force that subscribers Duffy, leading the way would 1.2 medium funded by Mexico would corner.
From an Colombia.
Well get picked land platform, we gained back one on any one comfortable boxes.
If you want feared which came from Central America, we're gonna couldn't dealer because it can pretty sealant Carlson.
If I can tell from different countries right, you're getting going on between flat side and the American or Goldenballs.
[noise] mobile both break fix board by computer to read the main driver Suffolk set a goal at 8.1% for people percent, respectively with mobile libert because people don't for the first time instead of books.
Well, one brief prepared I'm pay TV exit exam to 0.3 of the point goods. This interest there could be quite a fix both accessories were down 4.2% for my useful.
Our fourth quarter, whether you're sort of 263 billion pesos.
Englander older revenue.
Once you can really didn't pay for would be right can be restriction would fit in the month older equipment lease agreements in Mexico.
In Michigan disappearing from where revenues were flat year on year, reflecting the British unfold country.
The Mexican peso.
I would appreciate an 11% I can't give us your got bad 10% versus the Colombian peripheral 40% there should be Chilean peso six person burst for Bureau, I presented this would be bonus.
Gossip exchange rate [laughter] heavy burden is actually exceeded weighted basis, it's what the person. He argues for myself for some of your prior quarter.
I'm, excluding I can see many beast numbers, because obviously hyper inflationary accounting, but think of countries because everybody else.
Equipping spoken for for much anymore, but for me I mean, putting pressure on to fix one.
So you probably wouldn't stop for operational posted positive revenue growth from both fixed and more to blood from a year ago under one big.
On value Fysixteen <unk>, even tell a good mean that was 11 or they do 1.7 billion pesos for good fourth quarter for spending 41.1 person you get the merger.
Cost of victory for it when you're going to EBITA Glatopa children, born 50% joking full extraordinary items in Mexico, I mean Betsy.
Reflecting greater operating leverage.
Mobile should be forever, and you get picking up with their family with the role keeping 5.7% from 4.6% did a good quarter.
If I were fixed revenues were practically flat year on year marquee their best showing thinking 19, a series build on gold roughly made up for whether new loss is important but could be.
[laughter] I'd be more platform I will refuse and operations posted a 20% increase everybody continued market should actually be both the segment.
In fact, more like posted revenues for 21%.
Many can republic, well once you've you've heard a world April 9% in Colombia economic off in Mexico City imports seeks and our European operations, 5.7% say for Mexico already converted mentioned before posted the best performance it should more than a year, even north favor.
I for PIXUVRI is done any broke it reached nearly 14% can put away it 10 or 12% in Colombia set up or they proceed going to follow up 4% getting better.
Fourth <unk> fourth grade moments herbicide became aware more domestic business segment with girls that Chile rating from nearly 8% from 5.8% quarter or what they can pick Spotify babysit for 10.1 person.
Well, what prepaid services and corporate networks, followed with revenue growth of 3.1, 0.3% respectively.
[noise], where your matured double digit EBITDA growth in several countries at <unk>. Thank you for person Central America, 17% <unk>.
The U.S., 16%, Colombia, Fortinet, accomplishing and Mexico organic football, 9% without feeling spending nearly 5% after the I won't mention Bridger.
Maybe the margins increased approximately one percentage point that didn't meet your from Mexico, Telekom, Austria, Oh, Centene lab, the U.S. in Colombia Central make up it will present anybody linquist four to four or 5% fished board.
[noise] in Mexico vascular Colombia.
Reconfigurable fared very strong mobile service revenue growth.
Some corp in pulling transformed to fix that segment that could have been such an EBITDA in spite of strong seasonality typically last quarter.
[noise], we overcame a 44.6 billion vessels operating profit.
Got off to start bringing it did jump this will be comprehensive financing costs.
I would bring about a 21 billion that perfectly that there are 53.4% decrease from the yearly accordingly.
I wouldn't it profitable I think we're going to people who better since they should all 33% sprayed here.
The current capitalized obligations I wouldn't read that ended the year at 677 billion business, which is 7.2 billion peso nowhere, but not the into Franke 18.
On the or the value accounting methodology.
Just 17, which excludes capitalized obligation from did that that's substantially lease payments for my where EBITDA I wouldn't have been pretty the ritual stood at 1096 times.
I, sometimes we increased I wouldn't have been sixtym big officials in thinking might be.
Shareholder distributions for the year.
It took a 2.9 billion pesos, mostly by way of either.
Well acquisitions could mean that a 55 being a basis basically trying to do with Nextel Duffy.
In addition, we reduced pension obligations I tend to do something just maybe goodness.
With that we'd like to you'd be before about 200, and I'd be really begin to be a cure nature. Thanks very much.
Cardinal.
We can decide to the company.
At this time I would like to remind everyone in order to ask a question. Please press Star then the number one on your telephone keypad well pause for just a moment compiled the Q when a roster.
Our first question comes from the line of Rodrigo Villanueva with Bank of America. Your line is now open.
Thank you good morning.
<unk>.
My first question is related to what I see I was wondering if you could please elaborate on the strong wireless service revenue growth of 16%.
These behind these particularly concerned that'd be one theme a growing only.
Single digits.
The second question is regarding Mexico could you please share with those your thoughts on Telefonica this season.
Many of you know.
And how would you expect these three bucks the competitive environment. Thank you.
[noise] when it first thing graffiti.
Good morning brother legalized to embrace CD.
What we have been doing in the network has been better equals a four four report out were wireless a.
Subscriber for the growth of the wireless that we have been tabby.
We have being investing for the last that tools three years very very very tight the investments in caliber at Guadalupe de got bought Phoebe and Ah that's being that'd be good the I might think it's one of the things that that were our were subscribers across.
Once a piece of stage.
The other thing he said, we have a variable distribution network.
Yeah, we kept being a growing up where distributors say I wear or [laughter].
[laughter] customer care centers, how were stores. So on the distribution has been growing in but I see London third one that it's very important we have been doing bundled says they all around so we have being bundled speaks a wireless said broad right and.
That's why these giving all the growth being in a in in the into wireless market. So I think it was very good that last quarter I think we top almost 54 cents or they could also hot so the net dot even even in bras feeling boss Bates all four it also has been very.
Well in the future I think it's I. It's also very important to not be Saturday mix that is.
Okay purchase that we shop.
When I bring goes all the good things that.
[noise], ladies and gentlemen, this is the operator I apologize that there will be a slight delay in today's conference. Please hold and the conference well pursue momentarily. Thank you for your patience.
Okay.
[noise] and were now back in the main conference.
That's already Rodrigo and I think here, we have a about connection so what that what I can get being done we've been saying about brought t. Lisa we didn't extend the purchase day I'll summarize the next done the company and we're going to have more frequency and.
We have.
I I, a new program off investments using these frequencies that these one that allow us to have a very good day better got lucky to be more as a quality and we've got 'em. We are going we're gonna have the best I think we're we're having.
The best networking resi, let these this day Chen for the next two years, where go named proves that the Rodrigo in Mexico, It's deeper into Mexico, one Telefonica decides to send their assets seen in lucky not maybe kind of what they do in Mexico is my understanding.
He is that the yard one that they would that wouldn't be seeks more important than the CPC, Mexico and date yard will not give their ranked by a to be like that and then be a no.
Well, yeah, that's what they have been doing you know that that market. The Mexico. He's very competitive when prices are low so we stopped being having low prices for the last three years very competitive pricing in Mexico, and that's what the east is we're having today and where embed.
Thing in Mexico, and not worry investing not only in the networks were investing in day digital transformation. So we're making I worked companies more we beat that is everywhere eating in the eat in bed costumer centers in the sales in the I.D. So.
We're moving to that that May think is one that give us up where equal that then that shows the in Mexico for the next yes rotate.
Understood. Thank you very much on it.
Thank you.
Our next question comes from Marcelo Santos with JP Morgan Your line is open.
Hi, good morning, Thanks for taking the question.
Two questions the first on the Mexican wireline.
First quarter in several years, we see <unk>.
We also saw your beauty fiber. So would you. Please comment on Delta is line, we think we already crossed a limit where <unk> is going to.
Driving rules.
You said.
The second question is regarding <unk> skus to Capex outlook for 2020 to 40 years.
Well the Mexican depicts lining Mexico, I think Oh, let's kick on.
It looks a little before I go back what we had been investing for the last two years to beverage heavily in improving our fiber and improving our broadband and Ah I think it's a we are we are getting better at subscribers and it's what making eat these why peacemaking.
So growth in the broadband here in Mexico, but those Oscar can tell us a little bit yeah.
Did you say we've been investing their.
Fiber to sum up there.
This east.
We've been proven do I mean Christian to Bob We know what customers are we launched a new set of products why don't then as well this included naturally shouldn't be offering.
They were all done so I think a sort of fits human abuse, it well I'm going to some degree so bond with has been whether it's even the market. We're changing those were less than you had mentioned them [laughter] old old deceased into really it do our digital transformation to be more productive in the installation under repair customer. So we're really focus.
So on that market it through improved revenues on of closely it goes on efficiency, we didn't just from an.
And also in the corporate marketing right. That's just that's a hard one enterprise.
We.
I don't see that these market only affect conductivity business. So we are getting into solution bring some some better because to the market.
Because we were do very well received I was with cloud services, we've been getting sub market with a global services for the small business not for enterprise as well.
On the do you think you'll start on to your other question about the topics I think there's not going to be a need be a.
Changes seen got fixed for the next years, even that we're gonna do fiveg in some form three so I would want to start we just launching Austria, where bike G.
Okay.
Hi, where five GI net work a lot the I think two weeks ago.
Very good the presentation that very good launch and we're going to do that all around Latin America in that second half off Oh for the year, depending on where we have a spectrum, where we have the.
Well, how we are going to active I'm voting.
ER visit the things that we need to do launch Fiveg, so, but I think we can cause some countries at the end of the year old showing lapping I'm married got so that's good and I think a word target these 8.5 billion.
Dollars on Capex and weighs on things that we are going to change stuff.
Perfect. Thank you very much.
Thanks.
Your next question comes from the line of Andres Coello from Scotiabank. Your line is open.
Yes. Thank you for taking my question I was wondering if you call that keeps or some color on now.
They show interest on the assets that Telefonica may potentially divesting span America.
And you touched on my back to just from Central America, and a and I was wondering if you can be interested olson email that countries and my second question Nissan on track phone.
As you know just steadily or how it on a monday or work in the United States, a booth that merger between T mobile and sprint and I was wondering how about pulling back that truck false operations I also and whether you could be yeah I'm interested in them.
Exploring it's what the options for Tracfone in case and right sorry can do you want to keep on a scale advantage over the new T mobile. Thank you.
[laughter] pretty Minnesota.
The Rangers aren't very good answer I think it's us as a as we go last year, we purchase what the Midland Salvador makes a lot of sense portals in market consolidation, what's important and a allow was a two to buy these two companies and Ah we are.
Opened to see the rest of Latin America. It's always we we we want to see depending on the country, depending on Monday. The <unk>. How are the performance that we had been each country on the consolidation than the synergies that we thought we can be interested in looking for the older.
<unk> assets I think a lots of America mobile leasehold wakes open to see diesel for to meet these.
Okay on Tracfone was interesting Bell 30 station was yesterday it takes a [laughter].
[laughter] long to two to two hobbies helped me say, Sean I think it's good for the American market and are in truck funding platform were open to see I think it's going to we're going to have another carrier photos or.
With the more ER.
The capacity, it's backed room and I think at Fort All she is is it is good for truck for needs go to pass Oh look these are beast consolidation in the markets. All were open I solid waste and what they think okay with viscogliosi with more capacity I think.
It's important that needs will support all set to have we caught by people buy less a important collier.
You bet ice on us.
D. so.
For us he is he's he's usable.
Thank you very clear.
Thank you.
Your next question comes from the line of Juan Pablo Alba with Credit Suisse. Your line is now open.
Hello. Good morning. Thank you very much. My question is if you go to elaborate a little bit more in the competitive environment in Colombia, and whats behind the bigger.
Flourishing in mobile service revenues.
That's my question. Thank you.
I think we'd have a very good quarter in Colombia, not very good quarter I think we'd have a very good year in Colombia, and a in Colombia, we have been doing.
Very well in in the being the in both space. It's all since the beginning of the year, we have been doing both the boss based on through the year, we kept being improving in prepaid them. We have been proving also in broadband I mean, D.V. So all of their old we shot the very well the.
As a very good the.
Hey, we grow that were Abu Dhabi 14.5 points then the in the quarter. So you'd watch out very good growth on the starting to grow that prepaid what they only settlement, where we have beaten not growing none is starting to grow in the fourth quarter. So.
Important to us we set him, but I feel in Mexico, we have been doing a lot, though investments in the network a lot of investments in the digital transformation cost to Merkerson theres in there and also in the commercial side, so were focusing a lot on the off at age Johnson.
He's giving also very both results no. We also giving combo seats important to combos that were doing in in that so weird operating eyewear wireless services to waters of eyewear.
At the as that brought buttons and peaks on TV, It costumers and vice versa were giving it to eyewear or possibly the customers were also operating I. Both combo for that brought fixed broadband and TV services. All enterprises, we're on Oscar can talk a little bit whaling also.
Very good on then their pricing Colombia is there, but can you explain a little bit more to Oscar yes.
As we mentioned in Mexico, where we are doing you know you mix.
Trying to move Jones from common Pbteen enterprise to Baidu out of it services.
Particularly in Colombia, we winning a very large projects need a fully integrated proposition that not only include the network group security cloud services by cool.
Indeed, well in the networks for the customer. So it's it's a bundled are not range of products that brings more revenues above the connectivity run in Colombia, We mean winging very large projects as well do some other things that I have not mention that we have a big project costing.
Cutting fall in August they booked at Asia and stuff, we have to Latin America, so keeping costs cards being one of their priorities that we have been doing a doing and it's also giving US. Good. We sold so we have been very specific in each of the things that were spending on each of the things that were.
ER doing so that cuts a revenue.
Coming revenue with all the investments that that we're cutting so a cutting costs cards being something important on for American mobile through 2019 on ER, we need to be what a through these year olds.
Thank you very much.
Your next question comes from Carlos lack of that with GBM. Your line is open.
Hi, Thank you good morning.
Just a profitability and I think you have mentioned do you expect improvements in Mexico, and Brazil, the for Rone hundred to 200 basis points per year.
Something we can continue to expect into 2020.
Well I guess is what we're expecting and or what we want to have the in the in the in this year and also we want to school students bundle where our profitability.
And through capital or our subsidiaries in <unk>.
Great. Thank you and so they said also the regarding the capex level for the year around 8.5 billion <unk> that does exclude any spectrum type precisions right. So we could see some higher level do you do that.
Yes, yes, it's it's 8.5 lost five four cents last 5%, including there's so much bedroom, depending I don't know what specifically are you seeing but I've seen they are going Ah auction. The spectrum this year, but all that all <unk> or the rest of the countryside on this back to have.
ER amounts of ER spending seem to spectrum.
That's helpful. Thank you.
Okay.
Our next question comes from Carlos to clarify with B T. G. Pactual. Your line is open.
Hi, good morning, So I have two questions. Please one amex fish 3 billion using bongiorno age doesn't have any and my understanding is that just phones can be.
He will partially paid using the sequence finished it can't Mexican KPN. My question is do you plan to use this year issue.
Tiago, partially retire is bones.
And and my second question is on a it's a follow up question on brought many Mexico can you.
Helpers Weve the number of 60, H. homes up capacity, Mexico, and <unk> and also the number of FTT. Each client you have today. Please thank you.
Okay on the bonds or B.
Turning to.
Our bonds that have.
It could be a warrant attached.
It's a call option on a on could you just talk.
The call option today he said.
Money.
So it is only like you got the Ah auction or what are the exercise it's highly unlikely so that means that a if you actually not exercised the next year for like a regular up on unlike any weight of on it wouldn't be paid at maturity.
That's.
What I can tell them any bumps.
For the other question.
For the other question in the in Mexico, I think where I don't have that they die specific data here about the what we got there are.
A lot of fiber in Mexico, and that we're putting more fiber. These year on next year. So we have a I was a brought yet what projects to two to put more fiber at all around on the last night.
It's easy portals to two to two books he cannot be see eats a so we've got the house that past households. So we are going numbers two weeks I've got that been fetched to move on and deep the last mile to our customers. So we are prepared in the fixed line were investing in that mix, where even better.
Turning to gave I saw Scott said more fiber more broadband and ER and a two to two month more bandwidth toward a lot worse customer Sundar I'm, we're going to give a specific start to be says Oscar said, Netflix I'm not ours were going up ongoing those services now.
No.
We've got more centric wondering startups and kilometre so all been fiber in Mexico. So.
Okay. Thank you very much.
Thank you.
Our next question comes from Gilberto Garcia with Barclays. Your line is now open.
Hi, Good morning. Thank you political my question is on the fine it was impose and you'll be mexicana regulator I understand there might be a limit. The would you can say given these phenom going legal process, but can you give us some color on how you view the prospects Sophie quick resolution and how these either.
That's the or land for eventually offering pay TV in in Mexico. Thank you.
Well I'm on the final Mexico, I think <unk> D impose a fine or not we're swaps either I'd tell norm for before and I lakes breach or publications related to the ability for third parties of Dr. regarding its infrastructure.
And what we can say will challenge that fine due to the lack of due process and.
Yeah, It's really is the top Andy disproportionate to undertake this bridge so they'll send make any sense a b C. D say fine. So that's we're going to ER.
I like the city's one okay.
And given that the beat the law requires as you comply.
With all the measures.
To get a baby license.
It is it fair to assume that this is likely to believe that process.
No I don't things I've on things.
Okay understood. Thank you very much.
Thank you.
Your next question comes from the line of if it's far too much to meet that with Goldman Sachs. Your line is open.
Hi, Good morning, all and congratulations on the result, so two quick questions on our side farce following up on road here just last on the regular mobile they could you give us some color on day integration process for Nextel, Brazil and on the letter. He says I'll, let you affected wrapping I'd be dangerous beauty squad for to some extent.
And my second question on our side also related to Brazil is wider could give us an updated view on how you're viewing potential consolidation reviewing bovie oily.
Thank you.
Well go next then you had an extended what's out there I said at the end of last year and I think we are starting that process of integrating the company. So we have very good subscriber say, so, especially especially in Sao Paolo and real we have good frequency on in the network side.
We're going to start that consolidation not all that network. So we're going not too which is the best a part of the networks on work or not make all the synergies and consolidate that so it's going that they close maybe six months to one geared to see their results, but we have a program it's buses.
<unk> program and ER, we're ready to start to make all the synergies on the consolidation in next then in oil I think we are open to see the Oh, yes, it's a and that we are even thought process involved in that process and of course, we are.
Interesting in in checking on that and that being inside the process of they say love. They I think what they are selling right now is there more buying.
The assets or the mobile subscribers or the mobile company or ball young we are open and we are insight that process.
Perfect very clear thank you.
Thanks.
Your next question comes from Walter pay check with light Chad. Your line is open Oh. Thanks.
Carlos can you talk about thoughts on share repurchase for 2020 now that youve exited the year. This way and then also.
Daniel can you talk about the U.S. Mark a little bit obviously, there was a big change given approval the transaction boost who's a very.
Highly rated prepaid operators now going to dashed does it change your strategy are you.
Are you still have an interest in staying in the market with Tracfone and just just general thoughts there have you had any discussions with.
With dish in terms of [noise].
Maybe selling or partnering or.
We're attempting to use them you know that they've that they have a secured from T mobile. Thanks.
I think in the U.S. market would be self Coty station demobilization screenplay thing, which have a lot of options and they are we're open to review all the options now I think most going to two beach de Sac and de she's going to have a especially on.
Let's say I agreement with T mobile I love out the pricing and resetting the network I think it's interesting I think we stop on sold direct a contact with it was <unk> T mobile at least not work I'm here. So we're doing I know where Dan Vietnam.
Our phone so for T mobile item. So he told so interesting, which I've also but I just on them. We have also 80 M.D. So were open I think things are going to moving the U.S. and we are well not be very goes up and beyond this very where it's on top off what these going on than that.
It also direct form these are very important company, we're doing very well, we thought about variables the.
Last year, and Ah I think that gave us opportunity to do improve a truck or no.
And that repurchase garden bar, yeah, and on a one thing or on the.
Share buyback or less of we've.
You can consistently saying.
We leave you can maintain or make I'm overly switching laughter not that visit there are we.
Performed a little bit, reaching your target or because of their decisions lesniewski here.
But are we expect a we will be that he will be put in that will widget, we'd be very closely to by the end of year. So we wouldn't the game will do any measure distribution publishers I'd like something after we conclude that we're probably going to which is shabby that there should want to act on that topic.
Thank you very much.
Thank you. Thank you. Thank you.
Your next question comes from the line of Rodrigo Villanueva with Bank of America. Your line is now open.
Yes. Thank you and then you can look just.
Another question regarding the U.S. operations, you mentioned in the release you have seen declining cost on their time.
Do something done boosted EBITDA margin by run 100 basis points, you don't do so basically my question easy you.
He is something that should be sustainable going forward.
Thank you.
Right I think it's a little bit see something at the end of that they what we do in Tracfone. He said, we do a were bought kit. The specifically we saw that bought get for this year and we do it I think we'd all love the things that are happening in the U.S., we felt like we look forward to.
We need to reduce our little bit more that cost that we type of course, it's gonna be is there more competition is gonna be more capacity being the networks. All weekend, we can rentals that in the other side I don't know how.
[noise] that prices are also going to be a little bit more competitive I think so in that breed based side. So but there are no, but all I think it's a little opportunity as well, but what we don't have nothing right. Now I think are what we see feasible for Tony piece, all around I think for Tracfone. These good got these.
Okay.
Yeah, I was just vis a magic merger. It goes through I think that gave us more opportunity to be in the market than to have better pricing to offered to our customers.
Understood. Thank you very much.
Thank you.
Your next question comes from the line of Alihan, Jos a lot stronger with E. D. V. Your line is now open.
Oh, hi, good morning.
Cool.
Clusters regarding the people you could be revenues.
Revenues did you Oh.
Okay cool great.
These agreements.
I was wondering if we should see.
Can you model. These children, having you should the future limiting what would be more.
Revenues in the corner.
And then also.
Operating margins, but in Brazil, just wondering about future expansion.
He just youre.
Just wondering about the source of DC expansion, if you <unk>.
You can station.
But it could shoot how should come from.
For the integration will be platforms.
That's really shows.
Yeah.
Although we couldn't hear first question clearly can you. Please repeat the deep sea blessing in Mexico in Mexico, there in Brazil, we more or less understand what you're asking but in Mexico I don't understand your question sure.
Sure the cost in Mexico was regarding deal doesn't have an easy to point 6 billion.
Sure.
When you said you post the quarter, he's one being used.
Very good haven't you shop.
Disagreements she's woman.
We should see more revenue should be skyone future.
What was the margin.
Yeah.
Oh on on the Mexico, part or what I can tell you know these exact completely one off it was it hasn't had something to Buddha as I say that restructuring of I, especially if it got limit that have been a formal defaulted on are you basically so I realize you know even.
Just a one off looking all five revenues that here that are generated an accounts receivable. Okay. So you should not expect something like these going forward yeah.
Brasil as to why did we have been working all the synergies I think we have another one that its next day and we're working on that bought the.
What I can continue that or at least we were going to happen or 100 basis points of the increasing in margin in but I feel like what we hope so on the depends a lot on how those than market behave bought out where where budgets out where strategies to increase I, where I were marching.
At least 100 basis points and also about what what we have.
And the aim in in the commercial side as you see we're doing very well in the cost coughing also we're putting a lot of pressure to the cost coughing side and on the DTA utilization of the company were also doing very well tall all over at all I think.
But I see in fact, the momentum to their young we think we've gotten this deal that momentum for that for all these years.
Thank you Denise.
Can you give us an idea you give us an idea what's the margin of D. So have you seen Mexico, maybe they should be best as one.
Yes, good contribution to the river and the margin.
Gee I go I, you don't or the margin of the 6 billion pesos. We don't we don't have it right now what that you could talk to the near that we can give it to you I don't think it's it's a high margin, it's not going to be Uh huh.
Thank you.
Thanks.
Your next question comes from Sarah Maldonado with its time to death sang your line is open.
Sure.
Just on the general cost cutting program that you are mentioning what's the amount indoor nurse or emerging margin basis points suspected for for 2000, Anthony and the second one the other thing that you said that well see it do you mean doesn't many mix equal what is the for example, the during your growth that you're expecting for Mexicos capex not the breakdown.
You underground.
I don't think or in the in the mobile side I think it's gonna be more or less the same topics that we have a last year in Mexico, we're not gonna grow that in their peak side I think we're gonna make more fiber to the home and a more on boxes and.
Yeah that in Mexico in the other side that even the wireless we're gonna go to more rule that Larry asset. So we're gonna have more call back to work, we're not trying to get more covered at school to do more population. The mexicos. All that's why not they began traffic is that work having in mobile and bought eat.
Inside all of that all the topics that we found the so they rule rather at corporate tax laws. There beautiful realization of the network lost more fiber loss by a little bit of Fiveg all over it all leasing side. The topics that we got for this year not lost all that fiber in fact, we had him in telmex. So that's not.
Or what we have for these year [noise].
Sure.
The amount 40 cost cutting program.
Well I I don't I don't have they amount for this year.
Steve We're working on back book that we don't have any specific amount off or what's one might be and we don't disclose thoughts on social.
Yeah.
We don't comment on we don't disclose stuff [laughter] great.
Where do you think you.
Thank you.
Hi next question.
So from Valentin Mendoza with Barno Your line is open.
Hi, Good morning, everyone. Thank you for taking my questions I have a couple if I make the first one has to do with constantly having a confirmation that both Mexico and Brazil are being considered for lunching fiveg. During the second how does your as you mentioned you've been doing some in some countries in Latam and the second question has to do with.
The capex allocation towards having types you're launching in in this call before the year. Thank.
And in Mexico, Yes, I think we're gonna launching the in the in the end of this year in Brazil, we still don't know because a there's going to be the auctions.
Spectrum, we don't know exactly when those today, it's better than what thing, but I feel we're working and ER on all the network they'd be the police station onto briefer than network. So when we have this backed by me could be ready to do to launch a not having lunch, but to launch a fiveg.
We've got four point Fiveg in Mexico, I mean, but I feel that needs working very good we've got very good the speeds. So we we are we're okay with that and the topics and location well, we never give on location on capex in each country. What we can say use that we're going to spend it.
8.5 billion on it this year and I think that's a more or less or what was happening.
Okay. Thank you very much dr. among Pease go Nike loss for fiber in Mexico fiber in Colombia fiber in Brasil, well fiber at all around because were doing also fiber in Central America, and Austria, we're doing fiber in Austria old. So a lot than we are also.
It'd be the Dalai seemed a network a deep transforming the that digital transformation that we caught it got bought feed the more poverty touching wireless all its covers everything and more in some countries Donnelly not the ones, depending what we need more in each country, but that said.
Or something that way or make the decisions that were making here.
That was crystal clear thank you very much.
Thank you.
There are no further questions at this time I will turn the call over to Mr., Daniel Hajj for final remarks.
<unk>.
Well, thank you everyone for being in the call I'm. Thank you Carlos I'll start on Daniela. Thank you very much.
This concludes today's conference call you may now disconnect.
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