Q1 2020 Earnings Call
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Ladies and gentlemen, this is the operator today's conference is scheduled to begin momentarily until that time your lines will again be placed on hold thank you for your patience.
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Good morning, My name is Christina they will be your conference operator today at this time I would like to welcome everyone to the American Mobile first quarter 2020 conference call in webcast. 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 you.
I'd like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question press the pound key thank you.
Now I will turn the call over to MS. Daniela Lecuona head of Investor Relations.
Thank you good morning, everyone, namely teaches eight tenths, our first quarter Twentytwenty.
Hey, financial then they'll painful.
And I hope everybody take care.
Ladies and I'm curious on your crashing Neil you kind of like family I know, you well I'm still kind of them, how scared people pretty much.
Great people on the or are welcome everyone to the purchase through quarter Twentytwenty free lunch and I'm not predicting report.
The I'm going up Boston Carlos will keep hearing people, so sorry for the first quarter himself.
Pardon.
No.
Hello.
Right.
Right.
Good morning, everyone.
We have a center console so yesterday, so I don't show the Oh were first quarter two years.
Welcome to eat park, so Portland be pandemic.
Oh got pulled together so we're gone you don't know minimal placements performing one.
Good work or wherever we compete nurtured were important don't Congress.
Both of them up on mid March operational goods that could change.
Okay, very good nature of money Beautiful Orchard Park, golf, which where we operate.
That make them over to look up before you can be put to ensure you before were.
So quality services Oh, you're done can be children love didn't you're probably talking from you.
No nothing I would prosecutors on commercial films, but from what it needs coupled with gardens <unk>.
<unk> junior to work together, we've got we're very big holders, who will be trend.
So I hope you emerging from the current Allied with something that you try my early first quarter.
Yeah, when you couldn't figure in afford regions bursting grew up on been married or.
What about call. It because response, if I'm not sure markets content for them or you're Gonna Mcmullen collection did formula.
Oh, you're not going from weeks before a bunch I loved double verifones refractory phone did not show coming up with the HM.
I'm drop would be reisinger discipline unemployment.
Most of your number concurrency depreciated versus the older you'd be Mexican Petrobras companies, probably at the same <unk>, 29% can be Columbia and pick up some people think relations keep it never is gonna be cooked into 19th.
The bridge you regain Wow, one from 4 million mobile enforced their progress can be first quarter, including wondering if it before girlfriend <unk> Gulf He and people are going up to seem fair pending Mexico.
Never use from we incorporated herein are having to do both the claims that came to walk would get countries, you're looking to spin graffiti.
[laughter] Borbon if he was the main driver for example.
We called it could fall correctly to come from New York foods, including or 7% Ingram C. Wonder 5000 in Mexico.
No one both spurred on fixed broadband continued because the demand drivers for Fox with growth was 7.33 in a couple things affecting all the oxendine continued to be 10 year on year.
I would prefer rebid revenue.
Expanded are lucky to figure out of operations, including Mexico, Brazil and Colombia.
Oh, it could they break revenue creeping up news corp's.
Pretty good revenue.
Aren't there could be there, but it's a real up 1.8% year need much basic there.
<unk> revenue growing 5.0% at constant exchange this from a year before I need that Racine, 8.3%.
Well Mark there because it would be means rather revenue growth I could 0.4 to think be more dynamic is safe and several quarters like big fan favorite you're comping the trends lightly.
Most of these revenues increased 15.4% industry not including this thing.
No I don't see metric tend to think in Mexico, Colombia, I do that means and people.
Were they.
Every revenues expanded role for one thing because there is no continue bancolombia wyrick, although both thing will be minntac off the simple.
Most of <unk>, 30.6% of course, the chance, which well who brought them they come only partly on account of Ecopetrol Nixon.
Clunker <unk> next individual wet and cool.
Reports every revenue are funded a 3.9%.
Although the book, although Mexico, Colombia in Dominican, Massachusetts, Yeah, we produce more more render them.
So 30% increases.
Well that large school go through most of content from the year before the year in budget offensive data consumption, but like I get from increasing weapon.
[noise] fix bolt on given all the parent blunted perfect. If you could take on more dynamic because Midland Medical group, often will unfold, but.
No the minus the full year for be design team inboard compared to 11.
They do Colombia, I niccolo, because it does a great improvement from the victory folks over there.
Mexico prepaid revenues as I mentioned to push it up 13%.
It's both big revenues up certainly written she's going to different.
HM revenue over that won't repeat Frank I think what's going to either on an improving trend.
All of which we sold they need to she didn't know pad drilling person.
But if you pro forma DC, all improving mix and cold and flu youthful comparisons.
Mobile posted revenue growth or stood up 17.2%.
Preprint French improving.
On the frequent black them, both on Burns expanded 6.3% the Olympic to be theater, maybe timing Brent.
Oh or not the list Ebitdas, you're up 7.5 fishing.
In Colombia surface bergner expanded at similar rates of both the mobilized to the extent platform approximately 9.5% on each one.
One more one group at Webinar series appeared people in five different both Britain moving up from 7.7% on Dick what about 50 revenues continued to shine a nearly 15%.
Easy to expanded rapidly none of our main upgrade rifle Roclatan, Mexico, or maybe talk defense industry like Colombia, because I felt there and across if we put the same week I've mentioned before their who stood out we've got 50.5% year engineering groups.
[laughter] comprehensive tenacity golf Philadelphia.
I think the 9.6 billion Petro, resulting from 93 different perfectly foreign exchange losses stemming from the depreciation of the Mexican it'll be fed easy you called that I'd be you will.
They gave rise to a pent demand due to get them. They submitted all seem to core.
Most of our did have the greatest in international markets, the you'll know and card guarantees <unk>.
The company's vary from Mexico to gradually therefore subject to foreign exchange fluctuations.
However exposure, we're writing can be funding is minus so they use up that much of either.
I had been significantly reduced will be left it doesn't want to better conform to the currency mix of revenue base I missed the team but.
I wouldn't get better and grid much other conferences in different places.
And you kind of slowed pen.
Well 74.6 billion pesos.
Year to date, which care pro for fun, I feel really increasing working capital.
I wouldn't read victory read there will be left a lot more food at 1.7, it's something that's 1.870 I Wonder B. Riley your or Miss was one of your <unk> are you, yes for the game. It usually want that we have continued to useful complaints from took a visit that you'd lucky.
So where do I would like to probably <unk> floor back to I mean I mean.
Great. Thanks.
Okay.
Yes.
Next question.
My apologies at this time I would like to remind everyone in order to ask a question I stars in the number one on your telephone keypad.
<unk> for your first question is from.
Someone from Bank of America. Please state your first and last name your line is open.
Yes, Thank you and hi, good morning than it has gotten goes it was critical in you know I hope you on your comments I will continue into critical acclaim, who is really really in little from bank of America.
I've a couple of questions first or wireless growth of growth across countries in Latin America I'd be pretty solidly for your mix for the last several quarters, mostly driven by increasing the usage.
Now that many customers or did you see more likely networks due to this year at home mixtures would you expect to see significant reduction where in a day to grow and there would be my first question. Thank you.
Yeah.
Good morning, when the via.
Yeah.
I don't hear do very well the Clifton book or it then bohn I keep these people did you see that looks all on white thought you're not what I can tell you is that.
We have almost one month, we've locked down Nordic on three ER and the got Basi <unk> wireless seems to grow when I round them close then it more that and what that means that you need scrolling bought the that's one nishu builder.
Between mm mm that be that there are some places like that got married sell areas, where we have a lot of traffic on these trapeze movie two places where people leave more to residents places. So it's not only the growth of the traffic each sold so that they tropic multi.
From one place one mother on this thing CP, both from one place to be all the ones, let's say in places, where we have a lot, though the duties them.
At DCP is is really that drop because go down 35 and move to places where the people need right now so it's an incremental he's not so much is them four cents more on what we've got and see what we'd probably be happy bought the demobing up that's about that.
The one buddy.
Said wed be dealing and all that all the.
What they're working used up all that these investments that we've had the boom in the last a year team or let's say four point fiveg is tied to be ready and modernizing the networks. They fight for booking new technologies and increasing our back home, we talked I think the.
The great the Backhauling nothing about Marita all it seemed as Ryan in go to run pardon me those to move all slipped rocky very thought from one place to the other one from the Jeep and thought three D. Deploy GBP four point Fiveg. So all of those things I'd be camping law school, the food because the <unk>.
Good day, everyone Stefanki and so we saw this threat that's all been networks and everything you see working perfectly.
Understood. Thank you very much done in Atlanta, then my second question was related to capital deployment of the beginning of the year. The target was it a lot of April Nteight billion dollars.
I believe you already revise these numbers, probably 20% lower and I was wondering if there do you see that possibility to take it it even though with them back and where would you be focusing your investments in twentytwenty.
Thank you.
Yes.
That's very important bless them and Uh huh.
First I want to again repeat that Oh, we have the best networks in Latin America devalued by far or so all the investments that we've had been doing the last five years I've been in everything frequencies.
The infrastructure or 44.5 key, but we won't be a.
One blankie they've run everything it's each working today, so its ebay weird seem that each of them X and the networks that their networks are rolling is the traffic is growing without any problem and that [noise].
They it's difficult because we don't have a b C. D E on we'd be weapons are going to happen because today, what's happening to the Nike Inc. second quarter <unk> I see that Toby rice is doing weights. Okay. The for the second quarter I think we're going that see the knockdown in little bit functions. So.
So one thing that buyers and ER and what we're going out to be dead, there's not become not be too much people are not in the streets. So everybody's going to be their houses. So no not I love. The fact invasions so the themselves, but rebate I don't see that.
Work on that sell too much I don't see that being handsets. It will not be reduce I love handsets are dropping he's gone that girl and that's going to be more lives to what we see in the second quarter in the third quarter, we're going after your bookings nowhere to go next week, so provenance, all around the world than that or not.
Part, so that's very difficult to see they'd be CVD deal and what these going on in the rest of the year a nice thing, yes that the you can be fair buys. The thought were topics is the I'm bored some parts of our topics and all of that would be without sorry.
Biking, and young but why do you see on that got boxing E.A.I.D. and a hobby modestly or.
Yeah, the best technology, there, but yes, we've done that those are five below that when people are saying, yes.
I don't have an overnight I can really aren't.
We are very flexible company so.
We tend to stay he is the when we talk more D. C. D. E. Then we're going that they exhibit C shown lots of work on that rule, which project work on a stake out or deeper I encourage all the ones who are going up with them because things are moving so I seem to projects like a online project.
You got where traffic on nine growing I'm not done software things that like the one line instead of doing that somebody that customer care center. So all these projects I think we're going to move faster than what we have been doing bought or the ones I, maybe we're going to stop and.
We need to see really what's gonna be band obese and what's gonna be that traffic and a and then we're going to take that they see someone but.
Understood then they go to thank you very much.
Thank you.
Your next question comes from Marcelo Santos from JP Morgan Your line is open.
Hi, good morning, Thanks for taking the question I Hope you you are well and stay well.
The first question would be if you could give a little bit more detail Oh, the behavior of the last two weeks, especially.
Tweaks up the quarter, especially on the main markets, Brazil, Mexico, maybe Colombia on how the different lines behaves like we stopped for example, prepaid very strong go pursue in Mexico.
The quarter, but how did that behave towards the end of the quarter. If you could anticipate to beat of what happened in April. This is the first question.
Yes.
Uh huh.
They are quite gratifying to knock down the start eating stuck on the second first week in Austria, and maybe step on third we can be other functions. So you might be we stopped knocked down all the quantity in Latin America and.
I think there you real Austria beefing up the done what beside the nothing in America in Latin America, What words me.
A very different in the image of the country I think there we have for more strongly on towns in countries like that leibold I'm fatal or next people breathy Lan Colombia, we passed from Phase one and then took place to one Ben we are.
There's three Mexico lets say, so what we're seeing or little bit on all of it all the main palm trees fees are easily production on handset sales. So it's people is not the bidding out I'm by handset.
On that phosphate site I did you got to convey jumps to a degree C. A revenue like he keeps okay and E. Three day there.
<unk> as much not big reduction on some that prepaid side as people, who can go out or or or or they are not the <unk>. They don't have been money to bake device you Scott so it's more or less than what we're seeing in that big boxes and no other companies.
No I'm somewhat a strong like why going on there too and that some regulations.
Did you probably not the de stocking NEXAFED subscribers.
Allstate subscribers, then we're seeing and it'll be top or some people was not paying and then we need to see when they love. The bound is a yeah. It's finished then we're going that see how many of those wouldn't based on how many of these accounts when it comes and booked all there at all.
I think they're doing medicine, we we were seeing beats the indicates it's not it's a activations.
No handset setting funds that are going down but he buys.
The revenues from more lifts that I need to be lives I'm Lucky shopping in much.
I think there's just a follow up from just first question.
Up and remains a strong base in April this would be to follow up and the second question is do you come into both government action.
Which is summarized what are the main government actions in the countries, which affected you are relevant way you mentioned bit remission, Nick will do but are there older.
Important government actions that impacted you elsewhere.
Thank you.
I live in Brooklyn, Brooklyn, Queens, Brooklyn is steadily growing in even with the everything flows he made pretty broad when he's just been growing you may print, let's see what's going to happen Amelia and from both the broadband fixed broadband is growing their faces.
A very big brother from people consuming so that's a that's doing okay. So I think it's the best product right now in terms of the they look down the one that people need to asking for a and other products like the all that being said Oscar can talk a little piece the lake that I've out what.
Where does that mean, because there's a lot of people going to haul monkeys, and we're having a local sales on on these are products and ER in governments, who I think let's say, let's talk a little bit about Mexico, Mexico, we shot each NTT East Bay.
We believe maybe to win the 8 million costumers would be for creep back that well.
No. It's I missed the mess beauty nicely and we offered through all of our prepaid cost to make the ones or download, but that that got sheets for free and they can talk at all mean looks I'm I'm I'm I'm, assuming that's a they do it for free and we have also some the reduction.
Now we're plans for these binding so you've owned cop you cannot pay then you would get you their rent for all three month something got everything he's done a dawn and then do it again increase the Youre Youre your cost base line. So we're having on the around the country.
I looked up to be set in lands on or we call them, sometimes emergency transport I want people to help them on to stay connected and ER and Ah Ah. So we have not in terms of that Greg when they first I think there or are you seeing that there is.
Yeah, I don't think it's a very good idea, let's call them that way is that it wasn't they allow them not to pay muscle or what they like the club vote and they do they said you can not today, because we already know down when you cannot piece on that Black Knight.
He died and only I think these stupid prefund, maybe all the one thing in Central America, remember exactly which ones. We have got what I don't think its or will they be apple mobile the.
And Ah that's the only in those countries, where we got back.
Perfect. Thank you very much or if you're.
Thank you.
Your next question comes from Maria Acevedo from Santander.
Hi, This open.
Hi, Thanks, Thank you everyone who's making the question Oh. My first question is on competition, so you're seeing lower churn, especially when the stores are closed then players are adopting a more defensive mode kind of funny coverages and the focus in some countries. You think you can be a bit more aggressive commercially or is it time to be more.
That's it.
Oh I think it.
I don't see more I recognize there there in the commercial types. There you make prudent I think everybody to a little bit I'm doesn't make any sense because nobody in the street nobody's buying so nothing make any sense to craft the more aggressive but products in and in April I.
I don't think in May I don't know really when we finish these locked down that before the start going now I'm going to start that volume again them by thing. So I don't know how they're the competition would be bought or I think or am I not seen a more aggressive.
Not at all no there on in the countries is the and these these these days so it doesn't make any sense on or something so I think do they what do we need to those who picked it up a lot with customers who have a good quality who gave the more options on.
Lines will not work costumers and I'm doing work on having the capacity either why do you eat and ER and to give a very good service I think people working from their homes eat that 30 cents worth keeping about them or like the pet or little bit only nothing that medifast by far the yards the best networks.
In in Latin America.
Thank you very much did you guys against sharing and follow up question I mean, as you're approaching your lives, which targets and cash flow. It made this trial do you see any interesting M&A opportunities not only either they'll get out for the last one in general and you can comment anything on on synergies expectation sounds.
The next how big do acquisitions have to be very helpful. Thank you very much.
Well I don't hear the first part of the question, but the next then I think we're working on the synergies I think was very before US we incorporate 3.8 million customers, both they cost too much to out where they seem graffiti and we're working very hard there all the synergies we're not going I got it immediately.
What are you thinking the next year all these year, we're going to work on that we have a plan and we're executing that plan. So.
I I think it the right we will purchase for four four for four or Mediq I'm all by the order there being some mergers or we are not seen than the other merger. Today. There are you were only focusing today on be very strong.
970 to 73 D D to to be careful on the inventories because today and if we the gosh. She is very important them, we're being very careful on Carlos can talk a little bit about that for the no we're not seeing any.
Opinion on the buying or or merging something in the children.
All boys were open to any anything bought the two they learned not union.
Okay. Thank you very much.
Yeah.
Your next question comes from Carlos de La Colorada cigarette up from GBM. Your line is open. Please go ahead.
Thank you so much for taking the question Michael do you everybody sees on healthy and my first question, perhaps for Cardinal today.
Like my honor and the measures they can do for liquidity.
The amount of kind of like or do you have gone on the number of feel available.
Can you repeat your question.
I think when he.
[laughter] sorry, just regarding the good measure, it's been sort of liquidity and capital to be could talk about the credit lines or do you have drawn.
And the ones are still available.
I will be helpful.
Okay sure what do we have drawn or Oh. So we don't talk you have their own or who committed line Uh huh.
<unk> billion a year under one two or do you.
Even if it moves on to the renewals.
We basically Kathryn.
Our who.
Yeah, I'd be able to pay for through insurance for in Oh that Congress, there's nothing to go with the company.
Okay great.
The financial markets, even though the functioning properly for we've decided to Oh.
Uhhuh, along these lines or because the Peter welford towards the end of March Oh, Gosh, I might have looked at a much I won't be located.
So I think that we are in a in a in there and another feature we try to a big amortization for dual.
If you're doing travel email at the end of May.
If we achieve a appears you're gonna euro.
Bonds that were off exchangeable into KPN shares a d. So formed a we granted for a while two weeks at home and but we have already paid down roughly half of the bond.
If you ever got was repaid at the end of the.
The and got married or we do kind of number father and line.
Right.
The year old shorten that in nature I'm very Trey.
He knows working capital the ones on the have been doing all the fight lines that air.
Oh excuse me use today.
That north are fully we do not expect like we would be quite hear any.
Very good demand seems to be able to pay down the maturity that we have a disease Cody them. If you like is the pastoral there's a fair amount will be the ceiling and gosh right now will supplement things would be quick.
Thank you that's very helpful. If I need a follow up.
Regarding collections that really possible to talk about how dependent is they for channel a man they meant it.
Our collections any that can be a problem down the road lump them afterwards extend.
Got it.
It would be quicker you got about talked quite a lot because every collection.
It was one of the nothing but what are just number or is it the collections how much partly dependent on in Berkeley.
And given that most.
Walter.
As.
Closes that could be a problem.
Peter I, because you know do you feel I was thinking that covers many countries, where you have a different situations. Most most places they finish there's not a major chat directly linked to be trying to get.
The occasional her.
In both there for those of you collect.
Third quarter being attributed if a a disruption MACOM for central Florida acquainted with box capital.
We have been moving never can more to a these you've gotten or they make oh my goodness Echo <unk>.
We are at this point not having much too.
Good to present their journey for <unk>.
But probably something that we're monitoring program.
Both the Pachauri collections over all.
On the you know the the past few account or conquer with your own we'd want to produce a leveraged north American purpose or anything, but we can you afford prefer a significant what is going the other thing I've never had pension and making sure that I've ever heard in years.
Thank you so much.
Thank you.
Again, if you would like to ask a question. Please press Star then the number one on your telephone keypad.
We do have another question from Fred Misery. Please state your company your line is open.
Good morning, everyone. A thanks, thanks for the call I have two questions here.
I want to more more more towards degrees you actually I I saw once again very strong results on the mobile segment and my apologies. If you use asked this question was already made it just so I had changed the college, but you know very strong results. Once again, you were a diligent like 10% to drill serves a mobile service revenue while the other guys I believe you like.
Well she will Judy so that's that's definitely called the station.
So I'm just wondering if these these very solid results even on the repaid Israel plus 5% or use. These solid results comes more from all that youre doing and Upselling on your home phone base. So basically no of course inquiries, you're not wind and 70 more for more and more data from a price or are you basically.
Well to gain a lot of price from competition and the each me. If you can you can give us that he's button werent Weiss from any specific.
Company as you know so just trying to understand that's a very strong results on the mobile phone to visit thank you.
Yes. Thank you for the calling them good would have very very well with a stronger results in nobody's come all rights or oversold, and especially in the fourth phase on prepaid sizing them all by size and where we can see that Mexico, we felt very strongly Seoul south.
The that's really because they are there are you see fit because of our goods Mek works off before leaves preparing to move through I work for our network. So it would be a little bit more on can stop him, but theres also far taxes and fees on getting market share. So no.
Yes. It will definitely we are we are doing very well see four leases or how do we have the best distribution networks. So very good brand and we have recently, new salads are often see matters or I study, where we have the rest of like Elevena D C.
Looking down the latency and people is looking for why do you see so that's very important time. That's why you are growing in but I see lower so we're growing very very strongly something they seemed a lot of more me in the topics in the last year's <unk> phosphate brief baby Nolden My wife.
Hi, growing calibrate us are growing for four point fiveg speeds to recap the best this evening close on Fiveg in Brazil, and I think we get the.
Almost there a million subscribers per fodder for the last three or four quarters. So.
That's also I seem to where where we're gaining let's see they're not numbers when everybody was much more pricing rentals for being a little bit golf on some market share there are and Ah Ah for long the hours. So moving booth. There we are growing from Columbia, we're throwing a free.
Hi, I'm phosphate varies from free freight I'm very some phosphate so ER or all over it orders and the rest of the countries also worried doing good team there were starting to grow like in Memphis Federal whereas we next settlement Dominican Republic, very well so all over and orders we are doing very results next boys.
Actually we felt variables the at least have been having very result pretty system that free freight market free space has been growing very strong using a lot more data and moving through better and balances they used to schools, we charge and let's say 50.
So some to raise the are attracting the hunger affects also before these movies and people leave the east function I mean more and more.
Sales in Mexico. So I can tell you that the age to cease to review, Sean it's fun to be showing seats or more consumption on better networks everything compare that I cannot say that's something that's a that's about that baskins lucky scans. The most in the licenses or little bit orders.
I'd be work on on the last three years for years that seriously.
Moving on to a d. these results because it.
Thanks, very much then it was very very clear century.
Thank you.
I would now like to turn the call back over to Mr., Daniel Hasz for closing remarks.
I just want to thank you for everybody for joining the call or our lives on the allow Oscar thanks, very much everyone Bye bye.
This concludes today's conference call you may now disconnect.
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