Q1 2021 America Movil SAB de CV Earnings Call
Ladies and gentlemen, this is the operator. Please standby today's conference is scheduled to begin momentarily until that time of your lines will be again pleased on a music hold thank you for your patience.
[music].
Yeah.
Good morning, My name is James and I will be your conference operator today.
At this time I'd like to welcome everyone to the America mobile first quarter 2021 conference call and webcast.
All lines have been placed on mute to prevent any background noise and after the Speakers' remarks, there will be a question and answer session.
You'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'll turn the call over to MS. Daniela Lecuona head of Investor Relations. Please go ahead.
Thank you good morning, everyone, Hey, we're here today to discuss our first quarter financial and operating results. We saw on the line Mr. Daniel cash steel Okay tell.
So all of that kind of Moreno CFO on Mr. All kind of on Koski deal.
Thank you Daniela good morning, everyone.
Carlos is going to make a summary of the first quarter financial and operating results.
Thank you Danielle good morning, everyone.
Well the strong economic expansion in the United States that kind of gain momentum in the second half of 'twenty.
Continued unabated in the first quarter of the year propelled by news of a second on fiscal stimulus plan total funding.
Infrastructural program on so.
All of it progress on vaccination.
Yeah, I think on the growth forecast for 2021 were upgraded on initially led to an appreciation of the U S dollar versus most other currencies on the back of rapid increases in medium and long term dollar interest rate.
Latin America countries, including Mexico, and Brazil.
New COVID-19 waves that led to renewed confinements constrain mobility on that.
Slowdown in economic activity.
As part of this in the first quarter, we managed to obtain 6 million net subscribers ambitions.
Which was fully wanted more than a year before.
$3 3 million a bit more than half of that's where postpaid subscribers most of them coming from proceeds of $2 4 million, followed by Peru, Colombia and Australia.
Okay.
Yeah.
With regards of prepaid we gained 2.8 million of which 812000 of came from Brazil.
Typically half a million each from both on Central America on Mexico.
From 300000 from Colombia, and 200000 from out of him.
Okay.
On the fixed line platform, we added 246000 broadband clients with almost every operation is showing an increase from nexus lines, except for staff, where we have these collections of low bandwidth guidance.
Colombia, Peru quota of 17 of where the main contributors.
At the end of March our mobile postpaid subscriber base loss of 7.8 percentage year on year.
All of them by our with fixed broadband actresses of four 7%.
Even though were prepaid base registered an increase from the prior year.
Our first quarter revenues.
Total debt to corner of 48 billion pesos were nearly flat in nominal peso terms with furbys revenues declining one one percentage year on year.
At constant exchange rates however.
These revenues actually increased one 2% slightly lower than in the preceding quarter, where they've got Bruce and two 2%.
Are we starting to prior quarters. The main reason for our confirming of very nominal peso revenues to decline even though they had recently in local currency terms of mostly to do would be sharp depreciation of Brazilian three L.
Vis vis the Mexican peso, which of rough fully 24 per cent.
Yeah.
The expansion of of a series of revenues driven by that of mobile service revenues, which decelerate at one seven per cent from four 1% of prior quarter.
Well supported by the continued recovery of fixed line services.
Okay.
The acceleration of mobile service revenues mirrored that of of postpaid, which slow down in Brazil, Colombia on Austria PREPA.
Net revenues from their part maintain that pace of growth of two 4% for the third quarter interval.
Prepaid revenue growth showed a marked improvement relative to the year on year quarter, except for Mexico, Brazil and Colombia.
In these countries of Congress appears to have been more affected by the pandemic first of all of these years.
Okay.
Yes.
Fixed line as if he's running of growth turned positive from your point of 1% after several quarters of when they got the growth on the back of continued strong performance of fixed bolt on services, which became our most important revenue line in the quarter, maintaining its nearly 8% annual pace.
We registered an important improvement in corporate networks with revenues expanding two 4% in the quarter compared to a two 9% decline in the fourth quarter.
We stepped into positive territory. The overall expansion of fixed line revenues.
Okay.
Yeah.
Fixed broadband revenue growth.
Celebrated sharply from countries, including Peru, 42%, Colombia, 21%, the Dominican Republic and Ecuador.
Between 15 and 20%.
Revenue growth staying on trend at around 7% to 8% in Chile, Brazil and Central America.
EBITDA rose five 2% weighted one 7 billion pestles of.
Cost of exchange rates.
Eight 1% with EBITDA margin expanding almost two percentage points total to four 9% supported by strict cost controls.
Lower selling and marketing expenses.
Having to do with.
Restrictions on mobility.
New consignments.
On reviews about loan provisions, we kept kind of very good.
Collecting our.
Now moving boxes.
Okay.
Most countries registered strong EBITDA growth.
59% in the U S, 47% and Puerto Rico, 86% in Peru, 15 percentage of many tenants with Colombia Central America expanding of approximately 10 percentage.
Okay.
EBITDA margins rose across the board.
Increasing almost seven points in Peru.
Five of the Caribbean, most Puerto Rico on the Dominican falling Central America, followed by Mexico, Brazil, and Argentina with two postage.
Yes.
With our operating profit increasing five 7% to 41 1 billion from 1 billion pesos.
And our comprehensive financing cost coming down by 55% year on year.
549 billion pesos.
We were able to both on net profit of 1.8 billion pesos reversing the 29 billion loss leased or a year before on account of foreign exchange losses.
Our net profit was equivalent to three peso cents per share or freeze on a cents per ADR.
Okay.
Our operating cash flow allowed us to fund capital expenditures in the amount of <unk> 5 billion pesos and to buy back shares of war from four 4 billion pesos.
In addition.
Allowed us to reduce of with it in cash.
Terms by nearly $10 billion.
Our free cash flow. This chart is interesting our free cash flow.
This is looking at EBITDA minus capex.
It exceeded a solid part of growth over the last five years, even in the midst of the pandemic. So on the free cash flow has gone from a five.
Five $6 billion in the year of 2016.
Two 9.4 billion in the year 2020 cash kept on rising in the last 12 months to March two of $9 $6 billion. So even in spite of these.
This deceleration in sales from revenue that we have had we have seen continued strong performance on EBITDA on free cash flow.
Our net debt fell by 20 billion pesos of the first quarter ending March.
Plenty of favorite 7 billion peso piece of it includes.
The capital of at least initial day or you're probably of 16.
At this time it was equivalent to 177 times.
EBITDA for the last 12 months total.
With that I would like to pass.
Most of the floor back to Daniel and we can begin the Q&A session. Thank you.
Carlos.
Okay.
Yes.
We kind of start with the first.
Whereas Tim.
At this time I'd like to remind everyone in order to ask a question. Please press star followed by the number one on your telephone keypad will pause for a moment, while we compile the Q&A roster.
Our first question comes from the line of Marcelo Santos with Jpmorgan go ahead. Please your line is open.
Good morning. Thank you for the question of have true. The first is if you could provide an update on the tower spinoff of operation the true plenty for America malls in Latin America, and the second if you could compete.
If you could comment on the competitive environment in Colombia now all of that warm has officially launched their mobile Graham by operations. Thank you.
Hey, good morning.
Talking about the towers that we are currently implementing this structure within the America Mobile group.
Set by rate locked value that that works on the pain they require approvals in the different countries prior to their final step the spinoff.
Hey America mobile level. So we think and we expect that this implementation. We look we're in this year end of this year is what our what what we have right now.
On the Colombia.
Yeah.
And the competition when lighting debate.
They already launched their plants at the beginning of April mid of April.
We're very aggressive plans, but I think we are well prepared to compete in Colombia. There is not on the price in Colombia I think.
We have a very good coverage a.
We have force play so we have a lot of our customers in a convergence of all in.
Play offer that its very important reduce a lot of our churn.
We have one of the best qualities in Colombia in terms of Oh for of our in mobile and in fixed also.
Good distribution, we have a good very good distribution on all around Colombia.
Good E match net promoter score very high on very good image and very good service. So I think it's not only price we are prepared to compete in price. But also we are prepared to compete in all of these sort of things so.
We have a strong competition there plans we're aggressive we note that they are coming very aggressive of these plants and we prepare for that so we are competing so I don't have any new seats on the 10 or 20 basis of competition. This competition is going on uptake.
All of these year. So we are prepared to compete so that's that's what I can say.
Perfect just a follow up on the first question.
The stock that's going to be listed on the tower spin off.
Which exchange release be listed is there any update there.
Well, we haven't decided anything is dead on.
On the right now so we don't know if it's going to be on Mexico, or it's going to be.
Also.
Our Mexico and the U S. So we still are on we're not a we need to make that definition on this day in the next months.
Perfect. Thank you very much.
Yes.
Our next question comes from the line of Alejandro de La <unk> from BBVA go ahead. Please your line is open.
Okay.
Hi, good morning.
Daniel Carlos Daniela.
How about a couple of questions first.
You mentioned different reasons to explain the margin expansion in each country.
But.
But what are the main reasons that are currently driving that margin expansion in all geographies.
Come on come.
Come on the reason behind that expansion of course, the board on how much of margin expansion do you expect.
Going forward on a consolidated level on.
Second could.
Could you comment about your M D ph deployment of strategy in Mexico.
How much of your network is currently FTP H on how as you are expanding.
Th footprint, given the aggressive investment plans on.
Of your competitors. Thank you.
Hmm.
As Carlos setting.
Previously.
I think part of the margin of the EBITDA growth that we kind of ease.
Controlling costs and expenses both debt.
We have been having the last two three years.
Uh huh.
Digital transformation that is allowing us to reduce costs on a.
That's mainly one of the reasons why we are reducing costs because of.
Everything that we're doing we're trying to do digital saving people.
And and.
Reducing cost in a lot of.
Yeah.
With a large part of parts of the of the of the company. So okay. So in every countries deeper into this day.
In every country.
In the bad debt.
And then in the other countries the expenses a commercial expenses are going to be deferred and because we have different competition, let's say in Colombia, we are putting more airports in the commercial side in other places.
It's more on the administration or in the net work we are saving a lot with new technologies in the net works, we're going to start to rollout five D. So we are already built to a life of all the network that we have in all of the countries where beer to of lighting all of the network. So it's a program.
Cost expenses technology digital that we have been having for the last two three years and it is not pending these year he's going on our goal for the next five years. So it's a big program that we are having and are is what we're doing in day in the in the revenues.
<unk>.
Carlos adds.
We are in constant exchange rates, we grow on needle beat on revenues are.
But as Keith said, there's a new wave of Bobby in the South are of Latin America on this.
We have more of.
Okay.
Stores close on our commercial has been keep it a little bit, but I think as the economy gets better in all of these countries I think we're gonna net return with the with the revenue so that's more or less in the FTP H Oscar can tell us a little bit on telmex, what we have been doing on.
Yes.
Well.
Operating day network.
Th in Mexico.
Kind of around.
Classes, we are in business.
In the market.
Eastern explanations, we will of fiber to the home.
For Mexico.
With fiber, we see growing every month.
In Peru.
Most of the EFS dth and to migrate customers from copper.
At GTH.
So, adding a little bit to work on.
The other was mentioning just to give you on even more column.
On the cost of service stayed in line with Ah <unk> revenues.
But sending on marketing expenses were down 6% at constant exchange rates and.
And administrative expenses were down 14%.
We did have a very major reductions.
A lot of that camera of annual working out of the digitalization of that has been implemented income.
Okay. Thank you Daniel Carlos Oscar Thank you.
Thank you.
Our next question comes from the line of Andres.
Coelho with Scotiabank go ahead. Please your line is open.
Thank you good morning on.
Taking my questions two quick ones.
Of course can you give us on update on the negotiations we book and mix you on.
Regarding the pension liability.
And second.
<unk> platforms of struggling salts.
How did you feel about achieving the performance measures established in that region with Verizon and <unk>.
We added 800 million in additional cleanup. Thank.
Thank you.
Well talking first tracfone, okay. So I think.
The regulatory approval process for the sale of drugs from these ongoing it's going when we're working very closely with Verizon on the regulatory authorities to get clearance on that transaction and we think and we believe that.
This transaction.
Transaction will be closing the third quarter of this year. So that's the first step second the earn outs that we have I am sure since the beginning it's nothing change this day.
With the performance of the company bought the day in the characters that we book I'm sure that there were going to comply with that and we're going to take there now so.
Of what we agreed the transaction to around $500 million of 19th that will go on a desktop volumes model is that the amount of money I don't remember EPS by funded of 700, but we are we're sure that we're going to get.
Or the hungry per cent or a big part of that.
Earn outs.
On the on the day.
It makes our negotiation, we're still negotiations nothing else to say so we are still negotiating with them and we hope we can get on an agreement with the unions. Okay. So thats, mainly what what they contained.
Thank you very much.
Thank you.
And our next question comes from the line of Arturo Langa with <unk>.
<unk> go ahead. Please your line is open.
Hi, good morning, everyone.
I apologize if this was already answered I had some trouble in my line, but.
With regards to the.
Acquisition of boy.
When should we see that being consolidated into your financials. When do you expect to see that.
And then.
Two other questions if I may but also similarly, when can we expect the acquisition of.
Oh, sorry, the sale of U S operations to be excluded from from your reporting files and lastly, if there's any color regarding the pay TV license are requesting in Mexico that would be a that would be useful. Thank you.
When on all.
The approval process before goddamn Nf L. In Brazil is advancing accordingly, with the different stages.
All parties are committed to cooperate with authorities. During this process and we think that we can close this transaction. This year also so we hope that these year, we can consolidate all of <unk> in our financial so so that's the first one the second one day you don't hear you very well can you.
I'll repeat it please.
Yes, sorry.
Regarding two of the sale of Tracfone to Verizon.
When do you expect.
To discontinue the U S operations are stopped reporting the U S operations in your results.
But when my nature.
Hello.
Yes, when it closed on 19th we are thinking that the <unk> transaction on is going to be close in the third quarter of this year. So that's our expectations.
And the pay TV license, we hope that we can get the pay TV license, we're working day.
To get the pay TV license and a.
Nothing to say, you're only we're hoping yet to really get the pay TV license. So yes, that's true.
A lot of time working on that.
Perfect. Thank you very much.
Thank you.
Thanks.
Our next question comes from the line of Carlos <unk> from GBM go ahead. Please your line is.
Hi, Thank you I have two questions. Please.
First one in Mexico, you were mentioning of negative effect from the chip shortage from handset sales. However, it doesn't seem to have affected most of the other operations at all so can you give us some color on whether this is on isolated effect in Mexico or can we expect any problems like this net.
Other countries on the road.
The first line.
Back on please.
Our financial statements for 2020 years, so of significant revaluation of.
Moving to your tower portfolio.
But can we take this figure as of broken for the value unlocking associated with our transactions. Thank you.
Sure.
I think so.
It's not a secret that there is no cheap for the for the handsets on not only for the handsets coordinates set top boxes on four even cause I read that there is some short that seeing the in the cheapest for cars. So there is a shortage in the chips of Oh.
All around the world and it's.
They are getting worse.
I think all of the operations, we have been having some problems getting the handsets that are on the brands on the index.
In the segments that we need so.
And also we have been having some shortage in the set top box sets on day.
The broadband Boxsets all all of round, we're having some problems, but I hope.
And I don't think its going to get <unk> immediately but.
We have been placing orders for some time ago and.
And it has been helping us to have.
The amount of equipment that we need so that's where we are Carlos can talk a little bit about the revaluation.
Carlos as you point out there was a process for revaluing the towers.
So as you know on variety of 516, you kind of tooth.
Okay.
Whether you keep your assets or a second category of profit of <unk>.
You bet.
Part of market.
We've had of evaluation on.
On the towers.
Kind of couple of revaluation based.
On an impediment sales, but we have to come up with true for Vegas operations, but net net what do we have it.
Our first book seasonal.
Particularly for book value.
Most of the value in our in Latin America. It is all of the full category of towers kind of been revalued on as you know we have not yet determined anything regarding a wish and a critical mass of them. So.
But nonetheless, we have to.
To bring all of the category of towers.
Within our consolidated results.
Our fifth wheel.
Revaluation okay.
Thank you Scott.
On the SFC basically for the spin off eventually.
The frame of mind, but this was sort of incremental value over the book value of your hi, Robert that works right.
That's correct that's correct.
We have already affected the incremental value.
Also of the.
The end of December which are of lost when we.
Change in the accounting policy to be able to.
But the new the new.
The new policy of.
All of our bookings.
Based on not on cost per on market value.
Yeah.
Great I appreciate the answer thank you.
Our next question comes from the line of Leonardo Olmos from.
From a UBS go ahead. Please your line is open.
Hi, good morning, everyone.
My question is related content and over the top.
Content.
We noticed that you have some new launches for example, the collateral box of <unk> in Brazil, Mike.
Question is do you intend to rollout.
That's what the reagents and what all of our Dr. Their content or over the top strategy day, we'll have a waiting for it to be launched in 2021. Thank you.
And I think we launched a lot of walks in Brazil, and we are thinking to launch that collateral loss on.
Are all around Latin America in all of the other countries and I think it's a good idea that Oscar can talk a little bit what the collateral walks on.
Please sales correct.
Well as you know other pay TV provision of business has been okay.
There is on all of the streaming offers in the market.
So we really deep dive analyze how the market is.
Moving on.
Thank <unk> Brasil.
That is full of IP.
Non LNG.
Well on new functionality line portion of our company she on catch up TV remote DVR.
Good term commercial proposition in the market.
You could of SaaS with basic packages.
<unk> adds on deepening streamers.
It's a modulator of what the cost on their cost.
It's like some of you could add on index.
Cash on.
Global play or you could have on <unk> and <unk>.
Four of sports. So you could bundle your services given the profile of the cost. So we feel that we have.
Also on required installation fees.
Followed by Costar on as I mentioned before for like B.
Sales post two minus competitive of traffic in the network. So I think kind of inside unique proposition of market we witnessed.
Tufting machine on us.
By the end of May assume we are ready to operate in all of the property to the same concept and I think if we add on that thing.
<unk>.
On the pay TV.
Let me add the husky isn't on the phase <unk>, we see the fab.
Entertainment, Paul So do growth along a music as well if you put that on Facebook watch and on another add ons on having the market.
To set up length of haul ecosystem of entertainment.
We are.
Operating day Mark.
Very interesting proposal okay. Thank you very much of a good day. Thank you.
Thank you.
Our next question comes from the line of Maria Azevedo with Banco Santander Go ahead. Please your line is open.
Hi, Thank you for the call. My first question is on the Capex can you comment on little bit on the Capex outlook for the next years.
You have a very strong on that took so can we assume that <unk> is not going to require on aggressive long cycle of capex going forward any color on that would be very helpful.
No.
We already gave you the color of what is going to be the capex of this year and I don't think even for this year or for the next three years, we are not going to have an increase substantial increase of capex step four of five G. So as we said in previous calls we have been working to implement <unk>.
Two of licensing networks put on fiber.
Towers.
Putting the photonics in the backbone.
A lot of things we have been doing so we are ready to launch <unk> in many countries and we.
We are not thinking to put more money because we're going to launch of <unk>. So.
In our numbers.
<unk> is included in this capex on in the future Capex that we should have saw no substantial capex for the next years.
Perfect. Thank you. This is very positive and my second question is on the competitive environment in Brazil, and Mexico core mobile if you can comment on little bit on on how the offers on <unk>.
Any opportunities for price and ARPA increase it and if you can also comment on quite a bit that would be very helpful. Thank you very much.
No.
Perfect well, let's talk first on Brazil, I think on Brazil.
We're being.
Gaining the market.
Market share of moving.
Good subscribers on Baas space and also in prepaid.
Sure.
Yeah.
What we said what Carlos said at the beginning the new wave of Colby is slowing down a little bit Brazil about I think its slowing down for everybody for all of the companies.
We have from these momentum.
Historic low sales saw our commercial activities is slowing down a little bit.
Also <unk> seen more need that the government is giving to the people is reducing so also.
Reduced a little bit the amount of money in the people in prepaid at day, our spending but all of it all I can tell you that we have a very good network very good proposal.
We are doing on.
Making our combos in with fixed broadband and DB also with wireless so we have a very good proposal for the customers.
With quality.
So we are very competitive in Brazil at this moment in prepaid and postpaid and in Mexico, well, Mexico, we're seeing that a lot of.
Subscribers not a lot, but some subscribers are moving on wants to be more careful on moving from postpaid to prepaid book.
They are starting to consume a little bit more so all overall, we are also competitive in Mexico.
And I think we're doing growth in both on pricing in the wireless side in the in the prepaid and postpaid side.
On collateral pays we are advancing we are advancing in all the countries.
We are doing collateral paving Colombia, Brazil, Mexico on boarding collateral paid in other ones.
And a world that's going to be.
A new a new offer that we're going to do and we're working on that nothing else to say right now.
Perfect. Thank you very much.
Thank you.
And again as a reminder, if you'd like to ask a question. Please press star followed by the number one on your telephone keypad. Our next question comes from the line of Walter <unk> with light should go ahead. Please your line is open.
Thanks, Daniel just wanted to talk about the share repurchase I don't I think.
If I haven't right you did.
In pesos was $6 billion.
Last April you offered again, another $6 billion. So you probably should have.
A couple of hundred million left then you added 25 billion I think historically you have.
Utilized whatever you've been authorized to do over the course of the year.
Is there any reason, we should think about that differently as we look over the next four quarters. When you get to next April when you kind of look at your regular reauthorization plan.
Right.
Let's wait until that time, but we let's say in February we ask for four on extra.
That financing and we use it in.
This assembly, we do 25 billion on vessels on a funded so we're thinking to expand it within that share. He said very good price and we're thinking to spend all of the fund that we have so.
In the future we use it on we need more.
Then we're going to do another one and ask for another fund so that's where what we're thinking we are increasing the first quarter, we do go to buybacks.
Buybacks and.
We think that we will not do more or less the same in for the rest of the year. So that's that's mainly what I can tell you on them.
More or less of St meeting basically at the run rate you did in Q1.
Thank you and then on dividends at the April meeting was there any.
Discussion of kind of the dividend policy I know that you kind of do this in the second half of the year you have been kind of around you know.
<unk> 1920 peso cents per share should we think about of similar.
Dividend policy going forward or are you shifting more of your capital to share repurchase.
What we are discussing these assembly west.
Dividend for this year that is going to be 40.
And it is going to be like last year in I think July on November and.
Some of you are asking me for next year on the what we're gonna do I really don't know first we need to.
<unk>.
What we need to sell to close all the transactions that we have and then we're going to decide what to do so that's more of leg.
We have a lot of things we have on.
Transaction, we kept track of on transaction and then we have the towers transaction on all of these were working hard on trying to close everything this year. So.
Depending on that is what decision we're going to take.
Thank you and then just one last question if you don't mine in Mexico.
I think there was some press reports very recently about.
The maybe the struggles that Alison redness has had to sign up subscribers and maybe hit some of their coverage targets.
Has there been any discussion within.
Within Mexico about whether that spectrum is better utilized by <unk>.
Yourself or AT&T on Mexico.
No no no no discussions with us on what the what Youre, telling me I just read of in depth breadth as you and I don't have any discussions with noteworthy about.
About the spectrum of more about the company so.
I don't know nothing about that.
Okay. Thank you Daniel.
Thank you. Thank you very much.
Our next question comes from the line of Gilberto Garcia with Barclays. Go ahead. Please your line is open.
Hi, Good morning. Thank you for the call just a quick follow up on the towers have you.
Decided yet what you win list.
The company.
U S market or only in Mexico. Thank you.
They ask us at the beginning of the call we don't know still.
It is going to be on Mexico, only or it's going to be on Mexico and in the U S. So as data if they were deciding on.
Okay. Thank you.
And we're deciding also EPS is going to be only the Latam.
The towers on the European we're still deciding when they are going to be so it's still we're working on on having all of our decisions on on on on the spin off of all of the towers and all of that we're going to get a.
A lot of work to do.
Very good thank you.
Thank you.
And our next question comes from the line of Arturo Langa with Ita BBA go ahead. Please your line is open.
Hi.
Thank you the gist of it.
Follow up.
And it's maybe more of a strategic question, but we're seeing a lot of telecom groups around the world sort.
Of reduced their footprint for example, telefonica polluting out of Latam or one of their phone out of India, you you're back to sort of the U S.
Is there any read through for your footprint I mean for example of looking at Europe.
Is there a possibility you could be reducing or selling assets going forward is there is there any consideration regarding that.
No.
I think we're very happy with the Telekom Austria.
Very good performance of the company is doing very good we're growing in all of Eastern Europe also so no we haven't think of doing something like that.
I think we.
We're really really happy with the performance of the company.
Being a partner with the government.
So that's what we already do is tracfone non stay on what Youre, saying the strap on yes, we decided to sell platform on.
And that's a and then b of no in the U S. So, it's a little bit deeper and so.
Yes.
Our.
Looking at what's the best of on many of them are weighing on where we are and expectations that future expectations of the companies, where we are its important.
Okay.
Just on that first of all regions, like Chile, or Argentina, which continued to consume cash.
Could there be a possibility maybe of.
Of reducing your presses.
Argentina is not consuming cash Argentina is a very profitable company has been giving very good cash flow on Chile also is doing very good so.
Companies are already doing.
Doing good.
No. We haven't think also in doing something.
In Argentina, the treasurer in other places.
Okay understood. Thank you.
Very helpful. Thank you.
Thank you.
And there are no further questions at this time I would like to turn the call back over to Mr. Daniel Hajj for some final comments.
Just thank everyone for being in the call.
Daniela Carlos Oscar Thank you very much thank you.
Ladies and gentlemen. This concludes today's conference call you may now disconnect.
Okay.
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