Q3 2020 America Movil SAB de CV Earnings Call
Mobile third quarter 2020 conference call and webcast all lines have been placed on mute to prevent any background noise.
The speakers remarks, there will be a question and answer session. If you'd like to ask a question. During this time simply press Star then 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 Mr., Daniela Lecuona head of Investor Relations. Please go ahead and the slick water.
Thank you good morning, everyone. Thank you for joining us today to that go through our third quarter, we sold well.
We have to stay on the line and Mr., Daniel Hajj CEO Mr., Kim Orientals CFO on me through several calls good field.
Thank you then the alone.
Welcome to the third quarter a result.
Results.
Carlos he's going to make that somebody up their reports.
Okay. Thank you.
Good morning, everyone.
Well.
Following be massive monetary and fiscal stimulus it could well be working to have been fully funded.
The third quarter to a rebound in economic activity in most countries no regional preparation literally people abilities are the best present in the prior two quarters.
With the exception would be best to Cambrian, which continues to be to read through the door.
<unk> remained consistent.
Remained consistent at the America did not see much change or we could do.
Lets go find measures, they're going to be lifted.
At the end of the second quarter.
Britain Crane became apparent on commercial activities.
We added 3.2 million wireless subscribers.
One point, we know them fourth grade of 1.4 1.4 million people.
Rafi led the way you can afford to go after adding one we didn't have to describe this fall.
Oscar would go down 41000 in Colombia would've put out for 2000.
The second quarter, we had long satcom covenant.
As for the brief again, Mexico can be most would 1.2 million with Colombia, Ecuador, contributing approximately 200000 each.
They do to where things have been falcons. Unlike many KIDNA I wonder and 59 pounds.
Really covered several of the prepaid subscribers, which is connected to the second quarter of mobility was a good fit and making a recharger difficult.
He'd be fixed line segment as well.
Again spoken about 46000, new broadband clients every operation and got them working on increasing taxes.
On the Austria gracious among all our operations presented these connections.
Colombia, and Mexico led the way with all their phone with Gulf of Mexico speech, Mexico is good it doubled both will be by quarter.
Altogether mobile both fixed broadband.
Remain our main area for plexus.
With the former increasing 5.7% year on year and below.
The louder, 5.2%.
I will keep it so they go down 3.2% from a year before.
Well before compared to the EPS is good at falling up on 4%.
I work were revenue rose, 4.7% in Mexico, that's with them from a year before reached 260 billion.
Okay, because I didnt get funded 5.4%.
[laughter] Jasmine.
<unk> revenue well why not a customer centric.
Roughly buckets Buck I seem to preceding quarters.
On the back of continued strong performance of fixed broadband revenue I agree.
I agree recovery of mobile prepaid revenue, but with more.
Both moved up into the final quarter missed probably look a nice was implemented throughout Latin America.
Well my favorite revenue Saxenda rate that puts you in a comparison from 2.3% a different quarter quite pick my favorite rather than just maintain a wonderful wonderful person thinks will be tonight.
Of course, our appraisal well.
Warfare more you rose 11%.
Mobile data for you said was up 41%.
Which resulted in a 5% increase in mobile arpus at constant exchange rate.
Well once every revenue, we're bored by prepaid revenue, which rose from <unk>.
[laughter], they rose to 2.5% from minus 2% by quarter.
Posted revenue decelerated from what you can do 5% year on year.
Women revenue as boss Buck Sharpie removed I wouldn't.
I wouldn't have thought but more forceful in commercial activities.
The continued decline in fixed line revenue took place I'd be grateful for that.
Both on revenue.
<unk> peso or low 7.3% to one of girls 9.1%.
Were offset by new revenue losses in picks on board and they can do better.
EBITDA was up 10% can become quoted from the year earlier quarter great.
Where do you see for lack of a billion pesos.
<unk> EBITDA margin remained at 33.2%.
[laughter] Changewave.
We think grew 7.2% more than twice as fast as he decided to proceed in quarter, one for equal Mexico on them any kinda working important advances.
Mexico improved from minus <unk> percent in the second quarter plus 1.2%.
Communication has increased from minus 5.5% to close by point, that's a thing I mean.
11% this point I think in both cases.
It's important to note that both concrete how I should be but Glenn.
Oh, we EBITDA margin so to your 0.2%.
The 1.6%. This is Paul how you then maybe year Nucor.
[noise] well bring pockets <unk>, 18% 45 billion pencil on what the driver of 45% completion I would net income.
19 billion peso.
[noise], where operating cash flow for like 134 billion plus another.
And allowed us to cover our capital expenditure, which amounted to 91 billion Thats all I have to review financial and legal obligations in Denmark with 52 billion.
Including a 47 billion reduction in our net debt.
Oh it does.
It's been interesting to deal with a record procuring adequate capacity in our network and in my opinion, good quality affairs.
At the end of September I wouldn't read that EBITDA rates are queued up to one point that it's time for the I. you deem.
Luckily less than at the end of June.
Oh throughout these years in spite of movement people watch and wait Rick up kit that will leverage ratio at or below 1.9 at the time on that.
On the.
Oh really.
Looking at Mexico.
Reported revenue bounced back to blow lump on one person from a minus 4% decline in the second quarter with pigs, both on growth.
Fixed broadband revenue accelerating 6% from 2%.
On the Buck would double EBITDA recovered sharply from my typical launching to pick 'em quoted two goals 1.2.
[laughter].
Well Duffy.
Most Americans continue to excited working a 9% increase from the year before we prepaid revenue is less than five person you think they'd be catching fire to get funding them.
On the fixed line platform.
And it's continued to perform well.
Funding because it takes more good okay, and my opinion, a staple strength, while the decline in place to be revenue accelerated minus 13.6.
[noise], Colombia was the only concrete <unk> every province expanded on both the mobile and be peaks on platform.
Good for all.
Almost at the same pace in each one.
Both pre print book that revenue expanded a great female close ended the first quarter.
Fixed broadband revenue remained at a 15% growth.
Well I'm Paytv revenues continued to accelerate.
10%.
EBITDA increased 3.4% during the quarter on the strength of the revenue increases I'd be reduced need to provide.
To provide for past due collection.
Regarding off to them, both fixed and mobile revenue declined slightly later, a lot of book bound by reducing roaming revenue.
Pretty concrete vital.
Not going to be funding.
If I don't have all the company's adjusted EBITDA before restructuring charge of 4.7% reduced interconnection roaming charges as well as saving some feedback on that front.
Well it would be I would like to conclude.
[noise] talking to.
Thank you. Thank you guys.
Thank you Carlos.
And.
We can start the kewaunee.
[noise] at this time, if you would like to ask a question over the phone lines. Please press Star then one on your telephone keypad.
Your first question comes from line of Roger Equal then well out of Bank of America. Your line is open.
[noise] hi, Thank you. Good morning can you can you will.
Yes.
Perfect sense, yet so my first question.
Good luck.
My first question is if there's any update that you can share with us.
Potentially.
Good body from your dollars anything related to timing amount of dollars short stuff is transacted on it would be very helpful. Thank you.
Hi, Rodrigo <unk>, well, so what we have been saying on that thought worth transaction that we have around 60000, a worsening in the may become more violent do were working.
Uh huh.
So on their regulatory on the legal to see what is the best thing to do we have a like a 15 country. So he never gone through deeper and so we're working on that and where I'm not liking, what's the best way to to to to give value to put that.
I was so we have nothing concrete to say right now both we're working hard and to half a das or the actual not supposed to be one.
Understood. Thank you very much and secondly, and I mean, the Mexican government appears to be willing to raise the price for spectrum, particularly.
Sequence he is expected to be useful.
Yes so.
So I was wondering if you could share with those held live on Pcs for your mix and if there's anything that you can do to prevent these from happen. Thank you.
Well, what we have been following the dot discussion in Congress and disseminate that said we are not agree on that they think are they.
They should embrace any any on the spectrum too it's very expensive right now and the only thing that they are going to do is to delay by GE. They will not do that before.
Okay increased prices in the other side so.
Mexico, I peacetime east because if the.
Let us off a spectrum, we're paying a lot a lot of money and we are not I agree on that we're following that discussion. We don't know what these go nine and on what the what they are saying is that they want to.
The increase.
The 800 megahertz frequencies, what they have been in discussions so we don't know.
Exactly what is behind on buses we are on phase.
On Favourability that we are really we don't think that's a good idea.
Understood. Thank you very much.
Thank you.
Your next question comes from Diego, All Raco of Goldman Sachs. Your line is open.
Yes, good morning.
Good morning, everybody. It's my question just two short questions about Brazil. The swirsky too can you just share your expectations about M&A I mean, you signed up like an agreement with Tim and people. So if you can just provide like an overview about the next steps and your expectations in the mobile space and secondly.
If you can also share your expectations regarding fiveg spectrum auctions that apparently it should occur in the beginning of next year, but im sure you can see on this topic that would be great. Thank you.
Hey, Hey.
And well on Brazil first of all I think that we have a very good quarter in Brasil is still growing very goes on postpaid subscribers on all tween prepaid saw the revenue in that where wireless operations are doing very good at Mb.
In broadband were also doing excellent <unk> in BRAF gene on <unk> I think that we've we believe that day option. The final option will be the before.
Before the end of the year, we don't know exactly that they bought a we feel that's going to be.
Yeah.
Before the end of the year and ER and then it's back to them for five G.
Well somebody itself.
I'm I'm hearing rumors that they said that it's going to be in the first quarter of next year I do you are saying or the one said that in the middle of next year. So we don't know exactly when.
Yeah, we're going to have a they also bought to right now when but I've seen we have various Martin.
Yeah.
A very small as a amount off by our network. We eat five t. So we are already launched by D. in a very modest.
Tom a part in Brazil. So we are moving on Dot direct show Nice things day next year, we will do that and I see that we're going to stop by GE. There in the other side where are we there next then purchase we already.
Integrate the company, we do up everywhere the integration and we have the doing very well on on wireless gaming phosphate marketshare every every quarter. So that's more or less what we have been doing in Brazil in the other side, we have been caught being cost all around Latin America.
Also you, but I've seen we are being I'm trying to be more de Todd how company more de tallied saving a lot of costs over there. So we're working on that's a direct sun and I'm putting.
That money and a lot of work on that.
Thank you that's that's very helpful and just a follow up.
On the phosphate in Brazil, because it wouldn't be quite strong. So what would cure you know to understand what are those customers coming from I mean do you feel that you feel you see what trend off prepaid shifting to full speed or do you believe that you weren't getting share from competitors. Thank you.
I think or if the <unk> there are a lot of where prepaid moving to Pos bank of course, not something repaid from other companies moving to phosphate I noted so both they from other companies moving we have a very good network and ER and ER and ER.
We're copying showing dot for the last year and also that's been very very good now.
Yes.
And also you can see even in number portability in number portability were gaining more than any other company. So.
That's a where where where where were getting the oldies phosphates was great.
Perfect. Thank you.
Thank you.
Your next question comes from line of ours, too low or too.
Arturo Langa of your child VVA Your line is open.
Hi, Good morning, Thank you for taking my questions.
I would just like to get your thoughts on your end.
Your intention to do that.
Potentially yes.
Salaries and Southern America will help but think pension filter each 1.5.
Yes, it would be.
And if so.
You can see here hold there's one in Mexico each of these level.
If inflation build to create a distribution to shareholders and if so what.
You do you have in mind.
So maybe some share but that would be.
That would be my first question and with a good question.
Colombia you see.
They're writing a warm in the country.
Typically would you be interested in offering.
It's a two to one.
Two to one.
Like like you did for them in China.
Two questions. Thank you.
One on the first question.
I mean, I think ER refi.
We'd be fair enough capital to that iPhone.
By the time it closer to that's you're doing that that that alone should bring those down.
Or would bring that down to one on a cost kind of caught in a good to EBITDA.
Or whatever you something from a the.
Oh, no I would just think there's oh from them.
Both from a peak of some kind.
But it would be something like.
I don't think I would ER because of abuse.
I would love it.
I'd say that's a that's in addition to these we have a stronger cash flow and we are expecting to well. These are capital remain a win or you know the next pad. This year to next couple of years. So I think from a from a labor standpoint.
We feel that they they would shape.
I don't think that the rating agencies, even though they were very much in touch with.
I have no ratifies, the waterway very they would shape financially.
And we think it's important.
Particularly in a time.
So my take on the comparison period, we are living today.
Who are not because I want to do that with.
On a lighter note of that.
On than would normally be because well I think that it's important that I can give him go pick something I used to be a somewhat more conservative or be financially and culturally company.
Can you repeat the second question. Please.
[laughter].
I'm, sorry, I did not just your thoughts on there right.
On the right one.
From Colombia.
And.
Obligations in terms of network Rollouts.
It's in discussions right now.
Be achieved.
Rooming agreement, which you might be willing to provide.
I knew you guys did offer roaming agreements to walk into that so I was just wondering what your thoughts on the level of walk in.
Colombia.
How will you manage that.
Well I think the want what we know long the he as you said says they are in Chile, and they are aggressive so we have been preparing.
The company for maybe the all these years, so we're putting more capacity and Oh, we're working to two to two to be prepared when one the start.
And that's something that's nothing else I can say that we like to compete and were going to competing in Colombia and.
ER are also is equal one movie start over there so.
We haven't had any roaming agreement on Steve's now we've won these that's your question we haven't had anything there when they happen.
The way anything with us all.
Were working a would you know that we gain the spectrum in Colombia, and we're working to be able to always a concern among those.
To do all the in investments that we need to do unto foods that capacity and the networking that small towns that they require it. So we are doing very well in Colombia, we are growing in phosphate growing in prepaid growing TV growing broadband so.
Were really a.
Doing very well there. So a we have a not come up on bench blonde flats reform and Oscar can talk a little bit more on the what we have been doing in Colombia.
Oh. Thank you I guess as you mentioned, we had a fully integrated company in Colombia, we been doing quite well mall by both morning to convergence. So we did either on the set of products. So fixed broadband fixed line and mobile I pay TV.
Pay TV in different framework.
On as well.
We started two years ago focus on enterprise Oh, the cloud services that we believe are there. So we had a more they go into great solutions not only connectivity. We've been really successful then market them when I'm in for pricing.
It's always gonna be more competition, but they would feel that were in a very good position.
[noise] understood I appreciate your answers thank you.
Thank you.
Your next question comes from the line of Walter price levels.
Heavily Chad your line is open.
Thanks Daniel.
Friend for ARPU has been pretty positive since 2017, I understand that some of that is postpaid prepaid mix, but clearly.
Clearly LTV usage has certainly had an impact obviously kobin gave you a little bit of a headwind and last couple of quarters, but when you're looking at 2021 I'm assuming we're.
I'll have some type of covert recovery at least health wise, but maybe not economically do you think that.
Across your markets, especially the big ones that you can get.
Get back to [noise] ARPU growth.
Then you know to Kinda addition.
Additional questions relate Tonight, which is can you give us an update on what is the mix of L. you traffic today and.
Kinda back capital Capex outlook, because your capex looks like it's down a lot this year, they're going to be kind of a return to capex investment based on some of this LT gross thank you.
Yeah, well, what we have been seeing in these two things are very important with a bundle that pandemic show was stopped our networks are really strong and that's how we handle all that traffic in all the countries dot that we need so.
If people move from off he says two houses and then asked a lot more in Kabul said same aim in the broad bonding Wired magazine wife, I, Yeah, They see a lot more TV. So.
All these trends looks very well within our network. So we have a very strong networks and that's because the last three years, we have been investing a lot on that that day bulk will focus on both on nexium. The backbone seemed a lot mine. So that's a very important I mean, we're very.
Happy we have been doing a lot of that's being sold around Latin America, and we have been the best network in most.
Or maybe all of the countries we have been doing very good on that so that's very very important.
Importance all other thing that what happened during the pandemic is daisy celebrates a lot that the D dimer for payments for shopping for stopping for everything. So it's a deep look like before he is going to use more and more and more on that so I don't know what is going to happen.
Twentytwenty one bought what I can tell you is that the people at least he is using a lot more telecom telecom has becoming more and more important every day and a with these locked down accelerates I'm not the de stocking the D. T cell sites all were doing that on that Scott.
Because I'm I'm going to talk a little bit about the topics. These year, well I think of that Capex needs go nine dead, reducing maybe steady four centstwenty five to 34 cents that were going out with those the topics from my world rekindled topic says that easier because we will also be cost execution because seem they love down was very.
Difficult to execute also because we take out some.
A project that we don't need that maybe we're going to be laid up and were working.
Uh huh.
Right now to see what is going to be the capex for next year. So I still I don't know what would be the topics, but they've got big. So this year is going to be around $6 billion. In that's all they are $8.5 billion that we have there so that's more or less.
We have five execution because of the locked down or the ones because we'd be lay some projects that we don't think or we don't need.
I I have this moment.
That's a pretty big decline I don't see my usage declined that much. So I mean I don't know.
At a minimum should do you think that Capex I mean, I know you don't want to give a capex guidance for 2021 now but is your down that much. This year should at least be flat in 2021 is it would you would it be reasonable to assume that.
Good compared with these euro compared with our original topic.
When I look at 2021, if it's 6 billion. This year I I would assume that you're at a minimum its going to flat if not up in 2021 from that level.
From that level is going to be higher of course is going to be how you ever bought the bought but so we're working I don't want to advance anything bought base is going to be how your nineties here.
But.
Maybe not at the ethylene from from 2018, and 29 thing I got it okay.
Okay I understand.
Okay, and what you know you know all the things that that has been really interesting is that say well, there's a lot of suppliers that the ark, helping and reducing prices I'm moving with new technologies and there's a lot that we have been doing there. It's also he's helping us on that so what I can tell you right now.
Important a that the that the that that we'd be $6 billion we.
We have in the loose any.
Lose anything okay. We have a lot of capacity very good quality I mean, they pull marish outside in the Bible topic that he'd say 804 since the dawn of what we need. So we are not stopping anything on that so that's a that's that's the imports and so we're not going to stop growth where.
Not going to stop capacity, we're not going to stop quality were not going to stop very important all the DG side as being stuff. We're doing in the company. So so that's that's very important to that.
Just one quick follow up then on I apologize to about the third question, but it's it's related is is when you say execution does that mean, you're using like.
Your friend radio vendors, like Fujitsu or air span or whoever rather than the traditional guys arent or is it just the pricing is coming down from the Nokia Ericsson qualities of the world.
And they said nope endorsed loss, maybe not being radio what the not the things. They are new new people are entering in in some of the of the new technology. So he doesn't <unk>.
Regularly it's a very small part of my work topics. All he taught a lot on their backbone to a lot of what's funny a lot on the BG Todd is that by either there's a lot of Oh FA being seen in the Capex. It's not on your radio carb utilization and that's always a lot of things to add related to cap.
Thank you very much thank you.
Thank you.
Your next question comes from the line of Marcelo Santos of JP Morgan Your line is open.
Hi, good morning, Thanks for taking the question.
There are two actually so the first is about the pickup in broadband adds in Mexico I just wonder if you could talk a bit about the sources you mentioned a deck, we administered with Oh to tease, but are also is there some demand from from compete comedian and what do you think about the sustainability asked is higher gross broadband.
And the second question is about Brazil, and weakness in the fixed line would you comment.
ER morphine more on pay TV isn't limited to D.T.H. is also suffering cable what's what's the outlook here how much more.
Decline could we have on the dth. Thank you.
Yes.
So the.
Your first question around the <unk>, Mexico, Brazil, well we'd be.
Well, we've been doing is.
Operating all this be told our customers don't have been keeping the loyalty from our customers.
Another thing is that weve been migrating from corporate fiber.
As soon as we can within the market and the third one is that we launch a new sample packages that includes several items.
With that program and I think Crosby, well well received from the market. We I'm on there and there are some people I should mention around the Colby.
The people working from home needs more speed, but there is more people connected to that.
That's a that's a hard thing about confidence not only Mexico, we see these and you know you know that the comps.
On there on the Brazilian side as you know pay TV.
His degree seemed to revenues I was kind of make sure okay.
Looking for Sam what we see is that when you look at the total market. The total market. These decreases in Brazil. So there is a downgrade to solve some of the customers given the economic conditions in Brazil, well, we have doing these two yeah.
I've got a new set of products that it's up more like an interest payment all moving Joe's the pay TV regular pay TV and we believe that included idle amorphous amounted to the pay TV.
Good to see you know.
So like less revenue in the near future.
Okay.
Thank you. Thank you. Thank you very much.
Your next question comes from the line of says Argentina of Morgan Stanley. Your line is open.
Hi, Thanks for taking my call I I have two questions related to that.
You are de leveraging process I mean, one is older than the towers that you're working on or how should we think about the older. You know Stakes I've seen for instance, there's been news regarding KPN and once you reach to that a 1.5 level. What's next I mean should we expect.
Distribution to shareholders Buybuy Baby, then or more on that front I appreciate your thoughts on that thank you.
Well first on your question or KPN. So we we know these are these fish three these private equity funds that it's a the room or that there is we don't know nothing we know that stuff from the media. So we don't know what is going to happen there.
There are of course, there's going to be consolidation of course, there's gonna be consolidation in Europe, but we don't know nothing about.
About that and on the.
The financial Okay I think.
There's actually no.
Oh, the recovery could be I'm sure.
Instead of a disposable, forcing nothing before okay.
These are reflected as a market that was acuity they he R&D Mcdonald's security.
And ER and that will not change I wouldn't let that.
So even you know potential divestment of the I would KPN stake, we wouldn't have any impact on the on the Oh letters.
The.
You know for.
Uh-huh I was pointing out I think we have a lot on the one can because all that is providing ample.
Room to reduce.
We do that we have gone from five years to make sure nearly 50 billion pesos cash.
Reduction of net debt.
And ER and we expect.
No one time B pack from kind of action profitably.
They are receiving he said he says once we began a bonus so.
So but not overly.
Good day.
Uh huh.
A long wait what's a one and a half times, we've been below what we want to have time to believe it.
To believe it does have a thing you know I think.
Yeah, so far greater uncertainty it wrong I know you're familiar with the latest how you measure Oh, Okay. We won't have a basically.
Recover because I'll conclude.
No comment Buck or where they were.
Huh thinking banking on two or three or four years from now okay. So I think you know this deal.
With Oh, the early part of this.
All these oh really.
Related crises are we.
HM.
Hi to remain a concern about even to our favorite thing to navigate and like a lot of that.
Sure thing.
Okay.
Okay. So that's that's what I would do it.
Great. Thank you.
<unk>.
Your next question comes from the line of Carlos <unk> of BTG Pactual. Your line is open.
Thank you good morning, everybody. So my question is they say I'm actually have any plan children need it Squawk show cable network in Brazil, Weve fiber and fiber to the home technologies.
I'm, a big Big cable network operation There and I was just wondering if you have any plans you overlay at some point. Thank you.
Ladies and gentlemen, we are experiencing technical difficulties.
The conference will resume and whatnot.
[noise].
The order of magnitude, which one would you see them input on that.
Yes, maybe spenders are back on the call feel free to be just yet.
I'm sorry, we're back thank you, we wrung bought them sorry.
Yes.
Yes, you are right you want.
If you make the question again.
I guess I can do it again, it's sorry, yes.
Yes, Okay. So my question is if amex has any plans to overlay, it's quite actual cable network in Brazil, with with fiber or fiber to the home technologies is now at some point in time, what is how you see the cable network in Brazil versus the possibility of a bridge of fiber events. Thank you.
Right.
Well no recovery yet.
Oh, we do need to upgrade those books.
Yeah.
Yes, I will also.
According to that EBITDA.
Five.
Carla compasses already with top hardwood coupon.
We believe that.
No one with the EBITDA speed that we move forward.
For the market.
In the next year and then on the Cds, we will be using.
Hi, Uh huh.
According to a little room.
We don't comment more on reanalyzing helpful across those markets.
Okay. Thank you.
Again, if youd like to ask a question over the phone lines. Please press Star then one on your telephone keypad.
Your next question comes from the line of Chelsea Colon of Aegon. Your line is open.
Hi, Thank you for taking my questions. I was just wondering if you could provide a little bit more color around performance and <unk> I'm just wondering how much of this performance is.
Do you think is it competition in the market versus the.
The fact that the pandemic and if you could also just remind us of what technology you have on the mobile side in Chile.
[noise], it's you're talking about Telus.
Yes.
And then on chemo, we felt the same technology, we mobilized that we've got all around Latin America, which has a two G.
Two G. Three key not putting all right I think it's almost zero or three d. on Fourg and four point.
So that's that technology that weve, having big we also have the fiber to the home.
Through the home so what we need in Chile, Chile is doing a little bit more difficult on the contrary to the lump downsizing on that now.
And.
Yeah, we need to improve there. So I think we are putting on Mexico you better. So we are working on that and ER and ER and ER I hope.
I hope that we're going to see.
A better results in the next year.
So its not something about technology I think we are well prepared on the technology very good also mobilizing the.
Incorporate also.
Data centers, we thought so we need to execute a little bit better. So the market is also very difficult there rikers has been going down.
The.
But that's not to say.
It looks like you better.
And what is your exposure to the SMB segment in Chile.
What is the what's already we don't hear you.
Your exposure to us and in July.
Let's see.
I think where were in a good position Oscar can talk a little bit about what we're doing on the corporate side in the garden, the small and medium enterprise also.
I mean.
Morning.
Sorry.
Excellent.
Good.
Are you seeing more deals.
These.
Enterprises are looking for.
More differentiation more cloud services.
More applications.
They do nothing else to help them to create online Bookable store.
You can work so what will be doomed bundle. All these on these products and services to the EBITDA for the small mortgages on enterprise. If you look at the change of biodiesel from the Contv.
End of the change you have connectivity on being constantly you have data centers across the business and the recovery.
As you can tell you something you have 30, so what.
So what we are offering of both mark.
Integrated solution in the market not only keep us on connectivity, we want to bring value to the customers to prove that the productivity on increased revenues more more business oriented proposal not only connectivity when working saving our mortgage portfolio.
The last two years ago. So I think we'll be ready when the business the matter more to us on Aggregators are only connecting.
Yes.
Thank you.
Thank you.
Your next question comes from the line of parties as big as a detail of Sun.
Your line is open.
Hi, everyone. Thank you for the call congratulations for the strong numbers I have two questions. The first one is a follow up on that question on Capex.
You think that that's worth sharing open Ryan and those initiatives can also help the the optimization EPS topics and how much do you expect to spend with Fiveg spectrum in 2020, and 2021 and then the second question is about the trends about monetizing subscriber base in some of the.
Companies are talking about digital wallet, then you you lounge some initiatives of using prepaid credit that's as a digital wallet, how big is that opportunity in Latam. Thank you very much.
Right and I think the intent of Fiveg I don't have a number on how much we're going to invest on fiveg.
Next year about the we're going to we're going to have a we're going to have a pipe.
Whom.
Some of the countries next year is going to depend a lot on the spectrum and let's say with the.
When does Brazil is on the launch the sped through when those other countries are going out on the spectrum not the ones. We already have the spectrum. So we're working in Fiveg and we can have a.
Fiveg launch Fiveg in some countries.
Next year, so we have that network sharing lighting network sharing.
Helps but it helps in some places so I'm not a fan of network sharing let's say in the in big cities by an example, okay. Because in big cities you are always investing more new technologies a lot of capacity and then do you have to grow the capacity and put more and more because of the usage.
Bought network sharing in rural areas, where the growth is not sold before or in places, where you Bohn you need more call that actually done a lot of capacity I think it's a very good idea.
Thats the way we feel on.
We think it's important so of course network sharing is a good idea, but depending where I am on with whom you put no. Okay. So that.
What would be land on the wildlife Docs are can talk a little bit what we have on digital wallet, yes, as we develop our approach.
Around digital wallet.
Got it okay.
And what is the future analysis that is within the kind of crazy stuff, but you could to cash in cash out.
Different processes.
Some of the positive as you know in Latin American countries in terms of use of cash so getting to that to digitalize lapping production should be great and this is an application that was on a consistent.
Great views the uses of cash.
Well good.
You could pay third party therapies like like I live telephone to reach.
To recharge the freebase.
Mobile form on this we are on the first the first one from me right. Now so we are developing more seasonality, but we are ready to go.
Discovery program.
No.
Okay. Thank you very much.
Thanks.
Yes.
There are no further questions at this time I hand, the call over to Mr. Daniel Hajj.
No just thank everyone today for being in the call.
Thank you very much.
This concludes today's conference call you may now disconnect.
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