Q4 2020 America Movil SAB de CV Earnings Call
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Today's conference call and webcast will begin on approximately three minutes against today's call.
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Good morning, My name is non salary and I'll be your conference operator today at this.
Tom I would like to welcome everyone to the America fourth quarter 2020 conference call and webcast.
All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press star followed by the number one telephone keypad. If you would like to withdraw your question price per pound key.
Now I will turn the call over to MS. Daniela Lecuona head of Investor Relations.
Good morning, everyone. Thank you for joining us.
We will discuss our fourth quarter, if I mentioned on an operating result.
I'm sorry on the line with Mr. Daniel Class IPO repurchase.
Carlos Garcia Moreno.
For earn with total carbon cost per kilo.
Thank you Daniela welcome.
Good morning, Welcome to America mobile fourth quarter of 2020 financial and operating report and title on VESCO Moreno is going on.
Make a summary of the results guidance.
Thank you Ronnie and good morning, everyone.
Going into the fourth quarter, the economic recovery already on their way does appear to be picking up speed towards most of our regional operations confidence levels shooting up in November following the U S presidential election.
Shortly thereafter, the announcement for the approval of vaccines meant to ward off the COVID-19 virus.
In this context Latina America currencies, which have depreciated sharply on this because you have done.
On the pandemic began strength.
Notably with the Mexican Colombian Chilean peso requesting approximately 10% versus the total during the quarter.
On the clearance for Ddos, joining the euro and the Brazilian on brand and I appreciated 4% on 8% respectively.
In light of weighted observed unexpected COVID-19 containment blades from Congress important confinement measures in various cities in December non.
Nonetheless class for the quarters generally showed good results in terms of mobile net additional somewhere on.
We added.
2.8 million subscribers in the fourth quarter.
I have many after the preceding quarter.
Net of reinsurance, including included $2 7 million postpaid subscribers with Brazil, leading the way after adding almost 2 million stocks, followed by Peru with 203000 on Colombia with 200000.
In the prepaid segment, we gave for millions of subscribers with Mexico on Brazil in Brazil, adding $1 2 million each on Colombia close to eight hungry for some clients.
In Central America, We also saw more dynamism in the prepaid market with nearly 600000 net additions.
By the end of the year, we have fully recovered on where prepaid base. The one most affected by the pandemic.
We tried to prepare for a sharp reduction in gain on quarter on account of the restrictions on mobility and on the function of on commercial services.
Our postpaid base experienced on much more limited impact on RASM for the most part.
On.
On your fixed on platform, we obtained 200 on new pumps for Newport on clients almost capital than in Colombia, with Mexico, and Argentina, contributing approximately 85 and Samsung each.
<unk> growth was driven by mobile postpaid on about six bolt on with actually for us expanding pinpoint 1% because of more one on.
Five 4% year on year indicates all six bolt on.
Fixed voice on pay TV actions continue to decline, but maybe because on approximately four percentage.
Fourth quarter revenues 255 billion pesos were down 2% in nominal peso terms.
Service revenue declining a beautiful three per cent per ticket.
At constant exchange rate savings Berlin's tax rate increased two 2% faster on in the preceding quarter on they have recently went on a half per cent.
The expansion of our February guidance. This was driven by mobile service revenues accelerated to four 1% from three on behalf of the prior quarter.
For their part fixed line service revenues declined slightly by <unk>.
0.9%.
The best performance in nearly a year.
Mobile postpaid revenues continued to veer with top line items, increasing six three per cent of some.
On footprint on 7% quarter.
We're off to a Puerto Rico, Peru, and Mexico, all showing sequential improvement.
Prepaid revenues decelerated slightly from 5% in third quarter to complete before the west, particularly in safety sales.
Yeah.
I will check on most important revenue line.
Bolt on services continued to perform well.
Candidate for percentage quarter slightly lift on the 9% based on third quarter relative to send it in Mexico with follow on television.
Thank you for your rent revenues continue to decline although less rapidly.
And most of it on a 5% year on year compared to minus nine 2% per quarter.
Reflecting improvements in Colombia, Austria.
On Chile.
EBITDA came in at 83 billion pesos.
Russell for one three per cent in Mexican peso terms on five 2% with constant exchange rates.
Most countries radio sales stronger EBITDA growth.
Correcting for the impact of a one of our credit booked in the fourth quarter for 2019.
Turning to the restructuring agreements EBITDA would have increased seven 6% at constant exchange rates.
EBITDA margin expanded one 4% response, and then with the fourth quarter at 32 on a couple of percent.
Our operating profit was down 10% in peso terms grew 40 billion vessels.
We increased charges for depreciation and amortization by 13%.
Suddenly wake the dose of steroid with instead of provision when we acquired <unk> the year before.
Our operating profit together with the net financing income the amount of 15 billion pesos per quarter.
From foreign exchange gains.
Kevin brings about a net profit of 37 billion pesos, 80% <unk>.
80% higher than that of the year on year quarter.
We are guiding for 56 cents per share for the lessons per ADR.
Our reported operating cash flow allowed us to fund capital expenditures in the amount of for 180 billion pesos.
To cover 15 billion pesos on shareholder distributions.
Turning to share buybacks and 18 billion pesos of pension on on our labor related liabilities and on top of this allowed us to reduce our net debt by 65 billion pesos.
Cash.
Payment of the debt.
It.
Our net debt ended December at each corner for 7 billion pesos, including capitalized lease obligations.
Roughly equivalent to 183 times.
For most EBITDA.
Suddenly the longer rates have been at the beginning of the year.
In Mexico, both prepaid and postpaid service revenues expanded slightly more rapidly than we had the prior quarter.
Things both on service have decelerated to a 1% pace quite bullish on corporate net revenue declined in line with the rate of 30 per quarter.
EBITDA declined five 2%, but adjusted for the one off effect mentioned before it would have grown slightly in the quarter 0.4%.
And Brazil.
Postpaid revenue growth maintained its nearly 10% base on prepaid.
Prepaid revenues decelerated to one percentage year on year on.
On the fixed line platform for us both on grilling staying on trend growing nearly seven percentage year on year.
Our fixed voice revenues accelerated for the decline.
EBITDA increased 8% in the quarter.
Imagine talk from third quarter to 44%, which means up two three percentage points for margin expansion.
Over the prior year.
In Colombia service as evidenced expanded 9% with solid growth in both the fixed and mobile platforms.
Postpaid revenue growth increased to seven 4% of typical energy center relative to three on a cash.
On the fixed line platform revenue growth continued to accelerate in the case for both broadband and pay TV services strong revenue growth brought about a strong EBITDA increased seven 7% Colombia.
Finally.
Australia liquid team proving prints on both fixed and mobile service revenue growth with the louder, reaching two 7% in spite of the loss of roaming revenues brought about by the restrictions imposed on account of the standard.
EBITDA increased four 2% before restructuring charges associated with provisions for the government for employees.
With this summary.
I will pass the flow back to Colombian cash. Thank you. Thank you Carlos.
We can we can start with the Q&A.
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, we'll pause for just a moment to compile the Q&A roster.
And your first question comes from the line of Leonardo Olmos with UBS.
Hi, good morning, everyone.
Yes. My first question on <unk> question is about the infrastructure is paying off a.
A few questions here.
We'll do something similar for pellet side.
Issued new starts for Kelly.
Nymex all nurse.
Eventually.
Total control for external priority or a sales leaseback diet, which assets will it be when we have fiber infrastructure I haven't made submarine cables.
And which countries where they see thank.
Thank you.
Yeah.
Okay.
Yes, it's going to be on and Thats being not what Carlos can explain a little bit more on multi payment.
I think of you as you mentioned on growth.
Similar to the to the true to what we have.
Non recurrent effects.
Uh huh.
On a spin off where we will be distributing shares for the new entity.
Initial interest in Mexico.
It will be distributed share overdue.
I know you have moving shareholders.
Okay.
Okay.
Okay, great Okay I'll.
On may come out of the current share holders will be the owners of all day assets got it and and how about countries and just for understanding exactly which assets, we understand that the towers will be bad but.
How long how much fiber will be will be part of it as well.
We're not expecting to do any anything.
It requires fiber, it's only the passive infrastructure of the towers youre exactly they're going to be almost all the countries, we're reviewing which countries.
We'll do first but it will be all the countries in Latin America and the Caribbean. So that's what we're doing that.
And we are working with our partner team in Telekom, Austria to decide what will be the the way to also.
Besides on the towers.
Yes.
Okay. Thank you for that's what I needed. Thank you have a good day.
Thank you.
And our next question will come from the line of Rodrigo Villanova where bank of America.
Thank you good morning, Daniel and Pablo smoothed that Nina.
Can you hear me well.
Yes perfect.
Okay. Thanks, so much for personal I wanted to see your thoughts regarding the potential for day you seem to be sold.
This will see as part of looking each of the Permian and human nature.
On most institutions in Mexico.
I was wondering if you have any thoughts on do you think.
Could be positive for the simple as a whole or you would proceed with us negative that would be my first question. Thank you.
Well.
Were not to close on.
On that.
Some news that the government volume.
<unk> and we'll do it in another sector.
We are not.
Today, we have done on their stomach suddenly.
What are the reasons on why they want to do it so I don't want to take any position on that right now.
Understood. Thank you.
My second question is related to the EBITDA margin.
We have seen significant expansion through 40%.
Wrong is around 37% last year EBITDA.
It will be part of this has been driven by synergy Trimble for some channel mix then.
So I wanted to ask you.
If you have already achieved 100% of the synergies from the acquisition.
Multi coming on the future.
Well we have been.
Thank you.
Synergies of the acquisition of Nextel, we have been already do everything that we have this small part on the tower. There are some towers that we are not using and we need to decide what to do with them. We are leasing the towers on we're not using debt hour. So we need to decide what to do with <unk>.
But all of it on I think that the synergies that we have.
From buying Nextel, we already the web.
But also the expansion on the margin is not only because of the synergies of next day light think we're doing very good on the market.
Gaining share gaining share on revenues.
Yeah.
On the mobile side.
We're reducing cost on expenses, we are transforming on the digital side.
A lot of our costs. So we are being more efficient. So there is a lot of things that we're doing in Brazil, not only the synergies of nextel, but Oscar can talk a little bit more about what we are doing in Brazil.
Thank you.
Thank you.
We.
Moving on.
One nine by relying on hold.
Yes.
The final for.
We used cost.
Okay.
<unk> one one on the mainline to growth.
<unk> presentation on the process.
Care customer thank you.
And Atlanta Boston.
<unk>.
We're moving debt payments.
P J.
So on fees.
Different axiom hyphen.
That goes through a digital transformation on of course as you continue to use for them.
Nextel, Brazil.
<unk> practices.
Cost for long term guidance.
And then the other side I think what I said is we're doing very good on the commercial side, we're gaining growth.
Revenues and on that is helping also to increase our margins.
Very clear thank.
Thank you so much ink on one point of questions All day, which is related to Europe.
<unk>.
I've seen recently.
<unk> increased.
The fund by around 6 billion pesos.
Yeah.
I wasn't expecting you potentially now that you're close to sales.
The operations of drags on too.
Well, reaching delivered net.
EBITDA target of one five times potentially for even more aggressive with respect to buybacks.
Is that something that you are still continuing to do we share it makes increasingly.
The resources for each by about two months.
On the Florida in the near future.
You answered you display would be very helpful. Thank you.
Yes.
What we do like extraordinary assembly.
I think what's on Monday.
Because we almost Phoenix, what do we have on the bonds on the buyback fund that we have so we do it.
And we're going back half hour.
Ordinary Assembly in April and we're going to review what to do or what amount. We can increase on the share buyback on so that's what we only do these to go to April and non Nate when we're going to decide for the amount of debt fund again.
Okay. Thank you so much.
Thank you.
And your next question will come from the line of Carlos <unk> with GBM.
Hi, Thank you can you hear me.
Yes, yes.
Thank you.
I don't know if you can provide us with some color regarding capex I mean, obviously the figure for 2020 was very much on line with your previous comments.
But I don't know if you can talk.
Talk about a little bit about 2021, thank you.
Okay.
We always do around.
Yeah.
The previous Capex in 2020 day bucket that we have on 2020 was around eight 5 billion.
Yes.
And we decided during the pandemic to reduce that because a lot of things, but one of the most important thing is because we cannot do they require three months, where we were stopped so we.
Cannot.
Yeah.
Yeah.
Put the capex could be infrastructure because of the pandemic in April may and June. So that's also a reached on why we do.
We decided to reduce the capex and at the end of the day I think our capex.
For 'twenty 'twenty west around 7 billion.
$1 more or less is what we've been the shelf from eight five we do at round seven a little bit less than seven day.
<unk>.
And I think for this year, we are around 8 billion, including what we are going to buy.
On frequencies for <unk>, so that's more or less what we're thinking two between 2021.
Okay. That's very helpful. Thank you.
And our next question will come from the line of Alejandro.
<unk> with BBVA.
Moving.
Got it also scar Daniela thank you very much.
For taking my questions.
The first one to maybe PD.
You may need to be ICT segment.
You have been mentioning.
Last few conference calls on cash leases.
Relative to that you are making in IV solutions on them.
Good evening <unk>.
New set of products for the clients in some countries.
Can you help me to know more about your strategy here on Merrell.
What is the mortgage debt UTD segment.
Much of your revenues come from the ICP sector on how much you people.
Okay.
Sure.
As we mentioned before.
Ali.
ICT services and cloud services.
Organic.
We have on funeral.
Our footprint on based on center, while moving.
Doing is.
Sure.
In all of their data centers for crackdown I don't have any cloud.
Cloud services, we have.
On a formulation of the data centers for.
For the oldest class.
Interconnected so we could do more loan growth holdings.
When we open up for cloud.
For the current range.
Services.
Boyd on for services interest include a conservative plan for several reasons.
100 day is that we develop a concert venues.
Yes.
<unk> strength.
And with on a single point of contact with a cost on us where we could offer for them. These very pro based on around the cloud on.
On both of these cloud.
We are bringing a very good cash solutions for agricultural sector.
In total.
I asked for a great day, so what we want to be accounts.
Single.
Pharma sponsored to the customer from the connectivity security data center, it could be private cloud and cloud and then on mobile.
All of these vertical solutions.
<unk>.
So we are moving.
This is a market that we want a very big.
Contract.
Zero in Brazil for Colombia.
Do you understand that we have a good room to Greg.
Environment.
Thank you Karen.
That's for one question on <unk>.
Ill, just spinoff, which on me.
I believe.
Did you said.
Debt the company will be used for Mexico.
Hi, Thanks.
Right.
I'd also like to know what we BB.
We can just touch on the company is debt will be EBITDA.
On the North Sea viewpoint.
Okay.
Thanks for some of your debt you entity.
On the mortgage Pete we sat with force.
Hi, again.
Thank you.
Yes.
We're not thinking to do our EBITDA right now.
We're going to only be not at.
With the wet embellish sites and we're going to put.
Some debt so we want to give.
And give value to the <unk> shareholders on America mobile and so we'll go next spin off the towers in Latin America, and debt and we're going to put to debt. So it accounts for the shareholders break giving value on grid, reducing the debt in America mobile. So we still don't know exactly what the level.
Of debt that was on a fourth we're still making all day.
The paper works on.
Yes.
And we.
We think we can complete all this reorganization.
This year to spin off the company.
Okay. Thank you very much Danielle.
Thanks.
And our next question will come from the line of Andres Coello with Scotiabank.
Yes. Thank you for taking my question.
Two quick ones. If you can clarify how many of the <unk>.
Cash in Paris, or in Latin America on how many in Europe.
And my second question is that it's technical.
Wondering if you can confirm how mainly operating needs.
As you have with related policies.
On mobile I believe that in the last 20 entry point.
<unk> $23 8 billion on tax loss of operating lease liabilities related to currency.
I was wondering a decrease primarily related to sales side.
However, I think in Latin America, we have around between 35 and.
Yes.
37.
<unk> thousand <unk> I think is what more or less well go next be enough and in Europe, we have around 16000 hours.
Austria loss the rest of the other countries, where we are so that's more or less what we have so we divided into Latin America and Europe.
The other question I don't understand exactly.
No.
Just a very technical question in the next day.
<unk> operating lease liabilities related to <unk> for $22 8 billion.
Excellent.
Wondering if this is related to Telus because this could be on what you referenced for the new company in regards to how many operating lease liabilities you will have to book as a result of the spin up. So I was just wondering continuing with you that the $28 8 million is primarily related to telecom.
Yes, I think that I wanted to check I don't really have visa.
Information for here with me on the 20-F, but.
This level of growth was on okay.
Thank you.
Thank you. Thank you.
And your next question will come from the line of Marcelo Santos with Jpmorgan.
Hi, good morning, Thanks for taking my question.
I would like to ask about <unk>.
<unk> auction. So first if you could give us some color on the discussions for the <unk> auction in Mexico, and second you mentioned that the $8 billion Capex for 'twenty two and on should include the frequencies for <unk>. So what countries are you considering.
In this calculation if you could give some color on debt component of the Capex as well would be very helpful. Thank you.
I don't have exactly the countries I think it's the.
Could be Brazil could.
Could be Colombia.
The here in Mexico, we already cover of course, we're interested in the auction, but in Mexico, we already have.
For some three five frequencies debt.
We have.
Maybe.
On any kind of Republic would be on the country. So there is a lot of countries what the weekend.
Daniela can give you a little bit more color on.
Which countries we are considering on.
On the auctions.
Yes, the Capex is included.
What we have been doing the last years is we have been investing heavily investing in our networks I think we have the best networks in in Latin America and debt were preparing the network to do five G saw.
The five key investments we have been doing last year on previous year to prepare the network to two 5%. So we are built to we already.
Lot of our countries already has been built to our lives our networks. Our core. So there is a lot of things we are ready advance and.
I think this year, we can launch.
In some countries on there are three types of <unk> the DSS, the non standalone and the standalone non so we are deciding which frequency sandwich.
At <unk>, we are going to launch and then what the path we're going to take so that's more or less what we can tell you.
And non too there is important very important that our all our towers all on.
All most all of our towers.
<unk> or.
Yes.
Okay.
Hi, Hi speed microwave. So we also are prepared for for that so there could be a lot of things that we have a good core network.
Fiber all around the now so we have been advancing a lot on day for <unk>.
Okay.
Thank you and some color on the Mexican five G auction is there anything that you per se.
Yes.
Don't have it.
Right now the date for where they want to launch.
But as I told you we already have three.
<unk> three five per megahertz, we bought 50 Mega accounts.
Some may last year, and then we already have another 50 megahertz, where we're in that process.
On on on.
On the <unk>.
Reviewing would leave.
The rules for those frequencies on <unk>.
And what Daniel is telling me that on October 2021 are going to be there.
The options on <unk> in Mexico.
Thank you. Thank you very much.
Yes.
And our next question will come from the line of Whatsapp PC for collection.
Thanks.
Daniel just I guess a quick question on just Capex again, I think you said 2020 was 7 billion I think when I look at the numbers.
The Masters at 6 billion, but you might've been including.
Some acquisitions or something that I wasn't familiar with or maybe that the currency change, but is there of the $7 billion was there something else in there.
That would not be like actual network equipment for 2020, and then for 2021 for the $8 billion can you give some sense for the breakdown of.
Network equipment versus extra on what the difference what the allocation one day.
Maybe you are right that there is going to be on a 6 billion total of what we have in clothing.
That's for four four for last year.
Think it between <unk>.
$6 billion 7 billion I need to review exactly the number but it could be 6 billion 6565, sorry, it's around that.
We're still closing everything on on.
On the infrastructure.
And on debt transformation digital transformation that we're doing a lot on that so I can check on and give you color on okay.
And then on a per next year is there do you have a sense of the mix between spectrum and net.
Work equipment of that eight.
I think the spec I don't I don't I don't have the numbers exactly but I can tell you that we're really interested in doing more fixing some countries I think we have a lot of.
The.
Okay.
There is a lot of opportunities in debt because lets say in payroll that we're growing at around 20%.
Revenues in the fixed side I think in Colombia also will be a good opportunity in Brazil, we're doing like a <unk>.
Than to mainly on AV homes passed this for this year. So we're looking where we have good opportunity these revenue opportunities and we're going to invest on that.
I think you are right they are crew.
It's around $6 3 billion the accrual, but we already ask for more so.
Thats the number that I gave you saw that the rest of the $500 million 18 process to finalize on and do that for us.
That's what it is and I.
I don't I don't know exactly what the number of the on the spectrum and also it's important that we don't know what's going to be the end price of all the spectrum, what do we have a round for this year, maybe six to 700 million.
So on the spectrum, it's what we've been we have to pay this year on on the spectrum.
Scott.
So obviously an increase in network equipment, even if you exclude all that other stuff understood and then I don't know if it Carlos wants to answer this or you Daniel but.
Historically, when you've kind of hit these milestones of your leverage ratios.
Sometimes you do very large special dividend, sometimes you do very large share repurchases is that are you conceptually looking at that the same way or is it possible that it's kind of a more steady flow of share report purchases or dividends every quarter as opposed to be just kind of one time large special things that you've done historically.
Well.
We still have to be honest with you. We still don't know we need to really finalize the sale of Tracfone, we need to complete the.
Sales and <unk>, our towers, the spinoff and debt when we have all of that of course, I think it has to be on more share buybacks or a special dividend that we used to give.
The previous year.
So we still does not.
We haven't decided exactly what to work on it though but we really want to finalize all these transfer.
Transactions all of these operations that we have been in in the way and when we decide that and see exactly where we are then we're going to take.
A decision on so its more.
Share buybacks or it could be extra dividend a special dividend.
Something driver.
I don't know if you want to add Carlos wants to add something on that.
And instead of on things.
Once we hit our leverage targets on.
Sure.
Clearly in terms of.
There is more certainty on the growth I think that we are prepared to do more distributions.
What I'm really saying is we've continued to refine for this is going to be more along the lines on share buybacks.
We want to be more.
Exceptional on dividends extraordinary dividends for our may be bolt on.
I understand that I think I think the question I guess that you can you can decide between the two the question was more about whether it's going to be regular versus unlike these large special ones that you've done because it seems like companies are more tempted to do regular ones because it if.
If it's predictable draws on a broader investor base, and maybe helps the valuation a bit more but.
Might not be something that you guys care amount I don't know.
We took care of our collaboration.
Alright.
Thanks for the answers thanks, Charles Thanks, Daniel.
Thank you.
And your next question will come from the line of our net <unk> with Morgan Stanley.
Alright. Thank you so much for the call out for taking a question are we just have one question.
Should we think about the increase your stake in KPN recently, thank you.
Sorry, I don't hear you well you said about.
KPN.
How should we think about increased stake in KPN.
Well on KPN day, one of the thing I can tell you is that there is a.
What we're doing on the our financial investment and.
We are not interested in doing a beef or buying the company. So thats on via financial investment that's what we're doing.
In KPN.
Take care. Thank you.
Thanks.
And your next question will come from the line of Gilberto Garcia with Barclays.
Hi, Good morning, Thank you for the call.
Could you comment on whether you continue to eventually request again basically license for Mexico. Thank you.
Yes, yes.
Yeah.
Of course, we're interested in asking for activity license there is.
We are already self Mick.
The NDA.
For the license so of course in Mexico. We've won per day with license. There is no reason why that.
They don't give us debt television license on.
We hope we can conductivity licensing so it's very important for us to have a PV license on.
And.
We're waiting for that of course were impaired.
Understood. Thank you very much.
Thanks.
And our next question will come from the line of Maria Acevedo with Santander.
Hi, Thank you for the questions. My first question would be on your view.
On the network sharing agreements that similar to your competitors are going to do.
Would you be interested in joining such agreements in lastly, strategic markets and how do you see those on <unk>.
Neutral fiber networks playing out thank you.
Okay.
Hum.
On a network sharing we have a maybe a different view on some of our competitors I think in some places we can we agreed to do network sharing defense, where and how but to.
To do network sharing let's say in big cities and.
Then.
Though the network sharing and then grow because you're going to have more capacity and then you have to decide with the day one with your partner that you do the network sharing on increase and do more I think doesn't make any sense for us. So in some places maybe where we need some corporate action under a rule relative.
Places and we don't think we're going to need capacity or upgrade or do something in the network. Soon maybe guess where interest to do some network sharing on so we can do network sharing on the fiber.
Of course, we can put fiber and then sharing on that vibrating someplace debt. So all in some things. We are agreed total network sharing and other things is not because we don't agree to because we think that doesn't make any sense for us to do network sharing.
At this time I don't know Oscar if you want to add something.
Okay.
I mean, we've maintained a greenfield area for sure.
Sure Andrew on private events.
Not only on on a license.
Thank you.
Okay. Thank you and my second question would be on did you see on the initiatives taking place in monetizing on Scott Scriber basis.
Financial services digital wallet mobile advertising anything that could generate some incremental <unk>.
More advanced in the region.
We're doing the digital wallet in Mexico, we went to debt in Brazil, and Colombia on we can expand that.
Argentina also on the.
And we want to expand to all the rest of the country.
But Oscar can talk a little bit about what we go on but with digital wallet.
Yes, we are on here.
Please.
Digital content that is true.
$19 million.
For us.
On the solution.
On a fully integrated solution on <unk>.
As you kind of wireless.
For the third party payments.
As for gaming space for the utilities so for.
It's on ecosystem around we believe the proposal.
We are adding a france on volume environment in Mexico for longer Dana.
Thank you Matthew.
A concept that we will export volume broker.
And on the way to another bank.
We are now in our print on a pro.
Good day.
In our last call.
Perfect. Thank you very much.
Again, ladies and gentlemen for asking out of your question. Please press star one on your telephone keypad again that is star one to ask a question.
And our next question will come from the line of semi that's on with New Street research.
Okay.
Hi, there. Thank you for everyone for the question two please firstly on Brazil, just regarding the acquisition of <unk> wireless.
<unk> did not take any spectrum spectrum in that transaction I think mainly for regulatory reasons.
Should we assume because you're picking up subscribers, but low spectrum you might have to increase your capex.
In Brazil to accommodate the.
The new subscribers on new traffic close the deal closes.
And then the second question. Please is on <unk>.
Colombia.
I wanted to have we seen any activity from.
For the new entrant effective new entrant.
In the market.
And how are you preparing for that for the imminent launch. Thank you.
Yes.
On the Brazil Capex, we already have include debt in the Capex that we have in Brazil to take all day <unk> subscribers.
On our network so.
We are working on that we're expanding.
Our our infrastructure in the places we need to expand and it's already taken that.
For into consideration so the capex include.
On the OE subscribers in Brazil.
On one yes for a long lease another competitor.
We know them very well, what they doing 10 day.
Or any competitor we were.
We're working on.
We're increasing capacity we have very good coverage with a very good network we have.
Yeah.
Three or four play in some of our our customers.
And well.
We're prepared to compete we compete in other places with new competitors. So we have that on payroll with it.
In bell on the detail both on the another key layers we compete saw.
Let's see what they are going to do on.
What we need to do but we're prepared for what we can tell you is we we are going to compete on we're prepared to compete there.
Okay. Thank you.
And there are no further questions at this time I would now like to turn the call over to Mr. Daniel Hajj for final remarks.
I just think.
All of you to be in the quarters and.
Thanks, Daniela Carlos Oscar for being here. Thank you. Thank you on.
Okay.
Thank you everyone. This concludes today's conference call you may now disconnect.
Okay.
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