Q3 2021 America Movil SAB de CV Earnings Call
Okay.
Okay.
Good morning, My name is Laura and I'll be your conference operator today.
At this time I would like to welcome everyone to the American by Evil third quarter 2021 conference call a web call.
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.
One on your telephone keypad if.
If you would like to withdraw your question Press Star followed by two thank you.
Now I'll turn the call over to MS. Daniela Lecuona head of Investor Relations.
Thank you good morning, everyone. We're very pleased to join US This morning to discuss our third quarter results.
So yeah.
Okay, well on the line Mr. Azanian, Fahs, Chief Executive Officer, Mr. Carlos Garcia Moreno.
<unk> financial officer, and Theyre, all kind of know how good chief operating officer.
Thank you Daniela and thank you everyone for being in the call.
Carlos is going to make a summary of the third.
The quarter.
Thank you Danielle good morning, everyone.
During the third quarter supply short appreciated were prevalent in Cerro Lindo Screenshot I'd Love 11, keeping inflation data continued to surpass estimates in the U S and other countries.
The market consensus appeared to shift in favor.
<unk> mother Monetary authority moving more rapidly than anticipated expansion will be more database.
70 basis for interest rates to begin to rise.
In this context 10 year interest yields from U S government.
Mike correction just prior to the end of the quarter, helping strengthen the golar vessels.
She was most currencies, including the Euro unfavorably Latin American one closing the quarter higher vis vis all of them.
As regards the operations in the third quarter, we added $4 2 million wireless subscribers of which $2 2 million were postpaid clients ending September with 300.
One 2 million subscribers, 7% more than a year before.
Roughly half the new <unk>.
Wholesale clients came from Brazil.
With Colombia, contributing 313000 shops in Peru to close 2000.
Chile in Austria.
Okay.
Our subscribers postpaid subscribers.
Mexico led the way in prepaid we added 577000 net up followed by Brazil with 307000 American Dina 270000.
<unk> been trying to make them block and our European operations.
Each of claim that want to corner of house, our new prepaid clients.
On the fixed line platform, we have pay TV net disconnections in Brazil that more than offset the net gains we had in Brazil in concrete.
At the end of the quarter, Brazil pay TV extra stated were down 5% from a year before.
Whereas Colombia were up 6% and in the rest of our subsidiaries they were up 3% for.
What America <unk>, there was a 2% reduction that we own.
After the <unk> Chuck.
For broadband actresses at Athena health, almost 50% year on year, followed by Peru, and Colombia with approximately.
10 percentage in the aggregate I make a mobile broadband mattresses increased 3% over a year ago.
Our revenue totaled $253 billion basis in the quarter.
Two 6% is not in peso terms on account of the appreciation of the.
Mexican peso versus others.
Relative to the year before.
At constant exchange rates service revenue increased four 5% year on year.
Past that our costs and expenses, leading to a seven and a 5% increase in EBITDA.
The 887 billion.
Yes.
Andrew Eastern Europe, the Dominican Republic and Mexico.
The concrete core service revenue growth was fastest.
From a 15, 6% in Peru to six 4% in Mexico.
Central America, Colombia, Puerto Rico on Austria, all delivered growth in the 4% to 5% risk.
Yeah.
Mobile service revenue expanded five 9%.
Fixed mobile devices and <unk>, playing an increasingly important role in some countries.
While fixed line service revenues increased one 6%.
In both cases with mobile and fixed.
It was their best showing.
Several quarters.
Correct for the low.
Second quarter 'twenty base that affected the yearly comparison in more or less.
In the third quarter, both prepaid and postpaid mobile revenue increase at around 6%.
The comp or do you see YOD com flip it comfortable.
<unk> is the distortion in the annual comparison mentioned before as prepaid keep its lowest point in the second quarter.
<unk>.
Mexico, and Brazil, both in group and mobile service revenue and 9%, Peru, boasting 15, 8%.
In the Caribbean, Puerto Rico.
<unk> with many cannot saw revenue increases of organic half on seven 7% respectively.
Our European operations for their Buck.
Recorded nearly 11% growth.
<unk> ratio in Mexico, now Saturday that already screen better than 10% revenue increases.
At nearly 7%.
<unk> revenue growth was buoyed by <unk> services and fixed mobile device.
On the fixed line platform broadband equivalent net revenue expanded five six and four 6% respectively and.
And pay TV revenue fell five 2%.
Office clients in Brazil, continuing to revise down the cost per 30 day plan, reflecting a greater share of content coming from streaming services as a <unk>.
Both of the traditional multichannel offering.
On the fixed line platform revenue.
Revenue growth was noteworthy in Peru and are close to 20%.
Colombia, nine 8% in eastern Europe and 2%.
<unk> posting 59.
Growth in Belarus incentives funded revenue more than 20%.
Not including the Cherokee had a container even if sky inflation, but its fixed service revenue has recently.
Almost 9% in real terms after inflation.
Our EBITDA margin jumped to 84, 6% from a viewpoint of presented prior year.
And this was our highest EBITDA margin in 90.
Mexico.
America, Dominican Republic, Peru, they were all behind this margin expansion, having the first three of them registered three percentage point improvement.
With Mexico, and Peru, two and a half.
Yes.
We obtained an operating profit of 40.
Let me jump versus the third quarter.
It rose four 7% respectively.
<unk>, 4% at constant exchange rate in relation to the prior year.
Depreciation and amortization charges declined 25%.
In petrochemicals.
Our comprehensive financing costs amounted.
235 billion pesos with Roth.
Perfect more than a year before mostly driven by an 11 billion peso foreign exchange loss, which resulted from the appreciation of the dollar in the quarter that we mentioned at the beginning.
Our net interest expense was down 12%.
At.
15 billion peso 15 point there'd been a peso net profit was down 16% from the failure.
For the year the quarter it was equivalent to 34 peso cents per share for the restaurants.
Sure.
Okay.
In the nine months to September our cash flow helped us cover capital expenditures.
Maybe 1 billion vessels.
237 billion peso bull shareholders by way of dividends and share buybacks.
United by the way amounted to moving on vessels.
Just to give you a reference last year by this time.
The.
Yes.
The share buyback.
The bulk of the $1 5 billion.
This year, we're having triplets leukemia.
We have our customer also kept of Paydown.
14 billion pesos labor obligations.
<unk> reduced our net debt by 88 billion pesos.
<unk> cash flow.
At the end of the quarter, our net debt stood at 588 billion pesos.
Or.
Welcome to and maybe 8 billion, if we exclude leases.
The latter amount was equivalent to $1 55.
Laughter.
EBITA for the last 12 months.
This is the EBITDA after leases.
155 times maybe.
Net debt excluding leases.
Great.
EBITDA after lease.
Relative to December.
The debt.
The balance sheet, while down 59 billion.
Yes.
Okay, so with that.
I would like to.
Yes.
The floor back to Daniel and open.
Therefore, the Q&A. Thank you Carlos.
Thank you Carlos 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 posted just a moment to compile the Q&A roster.
Hi.
Okay.
So first question comes from Marcellus, Tom Fuerst from J P. Morgan Masala. Your line is now open.
Hi, good morning, Thanks for taking my questions I have actually two question is on broadband. The first is in Mexican broadband where you've put a good number of adds could you speak a little.
Little bit more on how where does that comprise if does our fiber ads and second.
Steve <unk> question, if you can comment on the Mexican broadband competitive environment. The second question is on broadband in Brazil, where for the third.
Consecutive quarter, you have been losing subscribers.
We saw what do you you discussed in Investor.
Regarding our metric being being upgraded and being prepared to offer higher speeds, but what do you expect to happen with the subscriber trends in Brazil, do you think youll revert as losses start growing more with the market or not losing could you. Please make some comments regarding Brazil broadband. Thank you very much.
David.
Let's start with Brazil, and then I'm gonna.
That.
Oscar can give keith's comments, but on Brazil, what I just want to tell you is that we have been improving and upgrading our network.
Our fixed network and mobile network.
In not only in fiber we have been growing fiber. This year, we're going to be around two five to 3 million home passes in fiber.
Maybe we're going to end with 5 million.
Okay.
Passers with fiber, but in our cable network, we upgrade all our cable network and almost every place in Brazil, we can keep one gig of capacity. So what I can tell you is that our network our cable network.
As competitive as fiber in terms of the speed and and and and that's all.
Oscar Oscar if he can give his comments on our networks in Brazil, and what we're doing with our broadband scarpelli.
Yeah.
Well in Brazil, as you mentioned, we've been investing to getting the fiber closer to the customer.
And then we think that we have ahead of us.
As fully resilience for the.
Markets it's.
Even.
Very competitive market and has been changed.
The traditional telco has been of great. Its networks as you know the Isps historical mean outside our network, but now they are getting some Cds in our network. So has become a very very very competitive market in the speed and price.
So what we've been doing is that we.
Have been.
We're ready to deliver the speeds of the market's need even we launch US Danielle mentioned, one GW dispute across the network, but we believe the speed of course is a fact not only of speed.
New propulsion has Wi Fi mesh included.
<unk> in the product with two hotspot customers good do the right architecture to distribute the speeds across the houses.
We have the best NPS.
Yes.
Implementing a lot of processes to improve the quality of services.
Nib network and in the services.
So it's a very competitive market, we believe that with these new products.
We'll get that gain in the waters. So I think we are ready with the quality within network, we've reshaped the organization in order to being more competitive.
In the new markets. So we believe that we could get.
We have new net new apps in the waters.
To add a little bit more on Brazil and just.
We're growing in the broadband.
Revenues in Brazil around 5%, so we're still growing and I think.
We're doing good.
We're going to talk a little bit more on the pay TV business, where we have in Brazil, a lot of piracy bought in the broadband business.
The competition in Brazil is changing is getting more competitive all this environment, but we feel that we have a.
Compared to the network, we can compete we can do bundles and.
And we have a very good network to compete there.
Yeah totally.
And in Mexico in Mexico.
We will reshape our offering in the market, even we launched recently.
Barry the one gigabit speed.
Well in Mexico.
We mentioned that the bundles with the streaming providers has been working pretty good. So I think we'll reshape as well the commercial organization. We are doing a strong migration customers from copper to fiber so welcome.
<unk> continued to do that.
We will adapt to market conditions or market our products. So I think it was a good quarter and we believe that we could continue the effort in the next quarters. We are also improving our network distribution.
Our.
Will contain stores and focusing on digital our digital platforms and we're focusing more on the sales of all the fiber that we have so that's more or less what is happening in Mexico.
Perfect very very comprehensive answers. Thank you very much.
Thank you.
Our next question comes from Leonardo Olmos from UBS, Lee and I will tell you. Your line is now open.
Okay.
Okay.
Yeah.
Your line is now open Leonardo olmos.
Yeah.
Yeah.
We're not hearing.
We will take the next question. So our next question comes.
Comes from Fred Mendes from Bank of America. Your line is now open.
Hello, Good morning, everyone and thanks for the call I have two questions as well the first one just a follow up.
On the answers you guys. Just mentioned you mentioned that a broadband reuse grant 5% I'm just wondering if there is a big difference.
Doing a.
Dth and cable growth.
Our understanding is that when the new projects you guys are going to have dth. So just wondering if there is a big difference that that'd be the first question and then the second question also in Brazil.
Look at the mobile segment was flat.
What will be required.
So just if you see room for further increase.
Have you started to see a little bit more difficult that Chile, so as modern bulk market share instead of thank you.
I think that the mobile market is a little bit deeper in the broadband market in Brazil, the mobile market is.
Are the four competitors that we have that today and in the broadband market. There is a lot of people putting fiber so sorry.
Alright.
A little different.
Market, but.
I think in mobile we're doing very good we have.
We're aiming we're growing eight two <unk> revenue.
Per year in mobile increasing postpaid.
<unk> bundles and I think in the mobile and we're doing good.
We have been doing good for the last two years and still doing.
<unk> for this quarter and I hope that the next one's in the next year, we can do better and in their broadband as Oscar said Theres a lot more competition.
And are we.
We're seeing more competition you.
U as Oscar mentioned.
Good.
We're launching today, one geek off of speed in all the network saw a beep vivor already beats cable, we don't have any deep finance, we have been improving our network in Brazil, we have been putting a lot of technology to give.
The one gig to any of the customers. So of course, we're growing a little bit more in the new areas, where we are putting fiber. So we're growing in fiber because we're putting new areas New places new eh.
U C piece and but we are.
So also.
Also where we have cable we're also growing with new customers, we're losing some growing in the other ones. So well that the competition that we have today in Brazil.
I don't know Oscar if you want to add tongue.
Hmm.
Yeah.
Alright.
Thank you.
Thank you.
Our next question comes from Charles <unk> from Aegon Telsey. Your line is now eight pad.
Yeah.
<unk>. Your line is now open for your questions.
Okay.
Okay. We will go onto the next question. Our next question comes from Carlos <unk> from GBM.
Carlos Your line is now open.
Hi, Thank you good morning.
My question is regarding handset sales, particularly in Mexico, and Brazil, we saw double digit declines year over year.
Just wondering if there is.
Good morning, easy comparison base or perhaps it is affected by the semiconductor shortage. Thank you.
Well.
If you will compare to third quarter last year.
And this third quarter of this year I think in third quarter of last year, we started to sell a lot. So what we don't do it in the second quarter I think in the third one people as pandemic.
And Colby the Lockdowns.
Start to open when people start to buy so it's a difficult comparison, but all overall I think in all the world in all Latin America, and includes Mexico, and Brazil, various lack of.
Handsets.
Maybe it's for chips, but also for other.
Other components.
The logistics and.
But there is no doubt that.
We are suffering a little bit of lack of.
Of handsets.
Right now.
Okay. Thank.
<unk> for the follow up then Andy if you could talk about the wireless environment in Mexico. I mean, obviously you had very good results with our pool.
The label in that growth.
It seems encouraging so if you can give us more details that'd be great. Thank you.
Well I think.
The network that we have in Mexico is superior to.
The other networks that we have here and people lease is.
It's moving to to the best network. So we're putting a lot.
<unk> quality and coverage in four <unk> speeds and Thats what people list.
Two oral dosing so that's really what is happening in Mexico, we have competition.
We have to.
Two competitors, we are already we do everything to be ready for <unk>. So we still don't know exactly when we're going to launch <unk> <unk>, what we're ready to launch also <unk>.
So we have a good network plus also very important is we have a very good customer experience, we have the NPS in Mexico, Good hi.
Both distribution networks, we have 400 more or less.
Own stores plus the retails.
Mexico.
<unk> so we are.
Really focus on all of those things so Mexico, we feel that we are strong in also in the distribution of all our products.
Thank you Adnan.
Yeah.
Okay.
Yeah.
Our next question comes from Gilberto Garcia from Barclays Gabor. Your line is now open.
Hello, Good morning, and thank you for the call.
Follow up question.
The Mexican.
Explore very strong margins.
Can you comment.
There were any particular drivers for the.
Improvement in related to that just to confirm.
With the bundled with from OTT.
Provides if you will.
You will recognize this revenue only.
Your commission from from D sale.
And on wireless another follow up.
The performance in postpaid.
A contrast to the strong performance in prepaid.
These related to the.
<unk> lack of <unk>.
Handsets. Thank you.
Well I don't know if that being wireless will be totally to the lack of handsets are could be some the lack of transit, but what we're seeing is that people in.
In Mexico.
Not want to get a compromising phosphate but.
Moving some of them to prepaid and we see lots of comfort levels. They are.
Recharging, often and <unk> is doing well so so.
I still think that in Mexico people is a little bit worried about the pandemic and.
And maybe they don't want to have like a contract for 18 months with <unk>.
Rent or something like that.
But they are moving to the prepaid and we are doing good. So that's what we're seeing what I understand is that no.
It's only the.
The commission that we're putting on the bundles with the Ot piece, we are only putting the commission, we're not putting all the revenue right.
Okay. Thank you very much.
Thank you.
We now have a question from Chelsea <unk> from Aegon Telsey. Your line is now open.
Hi, and thanks for taking the question.
Wondering if you could just put a little more context around your recent M&A.
Men's in both Panama, and Chile, I'm just wondering.
From a strategic.
Perfect and what your thoughts were behind on one hand, selling the Panamanian business, but then entering into a JV and keeping your involvement in Chile, what what makes Chilean market environment, you, then Ben Panama and in the longer term.
Got it.
But in Panama, I think we will.
We're the third or the third competitor, but in the last years.
Our competition.
Yeah.
Marathon <unk> consolidate that.
The cable company and then.
Levered they also buy them and they are strong in <unk>.
While in peak, so we feel that the country, it's a very important country, but a very sick population are three 4 million.
So it's not a very big country, So theres not a big space for us to grow and that's really the reason why.
We decide to sell the company in Panama So there.
There is going to take us a lot of years and a lot of money to improve and gain market share and put the peaks are.
The.
Network, So that's really the rationale.
<unk>, which on the why we decided in the other side there in Chile, Chile is a much bigger country, we're very interested to be in Chile, and we are strong in mobile were strong incorporate levered thesis strong in TV and broadband I think.
The <unk> married to make a lot of sense, they put us in a good position in the market.
Yes.
The sites as they are the two so so that's the rationale we are interested in Chile make a lot of sense that synergies are going to be very good and.
Get them.
The rationale why we do that.
50.
<unk> joint venture in Chile.
And do you have any concern over the regulatory approvals in Chile.
No no we.
I said this.
We're going to be the size that the other two were not going to be bigger than the other ones.
No I think we need to to give all the information to the authorities there we already submit that information and I think.
Yeah, theres not going to be any program.
Great. Thank you.
Thank you.
As a reminder to ask any further questions. Please press star followed by one on your telephone keypad.
Our next question comes from Leonardo Olmos from UBS.
Your line is now open.
Hello can you hear me now.
Yeah, right, Yes, Hello, Yes, Oh good yes.
Okay, a quick one quick one everyone.
I wanted to discuss about the broad financial position that you have if you could just get the logic behind the breakdown of buyback.
And cash dividends.
The logic from these first nine months on what's going to be the logic there.
Future. Thank you.
Or how long Donato.
Well.
As you know we are.
Being a provider.
Back on northern area dividend that grows every year, sometimes it's somewhere between five and 10% per year.
What we have done.
Consistently over the years, you've got a we have a.
Distributor to quite a bit of excess casualty had my way.
Oh sure sure buybacks.
<unk> will remain.
The <unk> leverage target that we want them.
And the last five years.
We were higher than our leverage target and government that we didn't really have an excess cash we.
Had to reduce our debt, but now we are not in a position you.
You have seen in the report.
Our net debt has gone down to 115 times and that means that we have now.
Capacity is already not even the end of the year, we have still not completed the transaction.
Of Tracfone.
We have also the spinoff of EBITDA was ahead of us.
These two transactions alone would represent a further deleveraging of about $8 billion between to do so.
And our comfort.
Time to Puma share buybacks. So that's I think that we would.
Ah.
Okay.
Commit going forward.
We would remain in the leverage.
The target that we mentioned in our Investor day, two weeks ago, which is.
In a band of between 12135.
Debt to EBITDA.
And basically.
Basically whatever.
Casually.
It's not.
Required for M&A or whatever then you should be available for distributions.
Okay. That's clear thank you very much and sorry for my connection.
Problems in the army.
Thank you.
We now have a question from Walter Piecyk from <unk> partners. Please.
Please go ahead.
Okay.
Sean.
Sure.
Okay.
Your line is now open.
Okay. Our next question, we now have a follow up question from Marcelo Santos from JP.
Hello. Your line is now open.
Hi, yes, thanks for the follow up I, just wonder if you could comment a bit on the Ptv behavior that you mentioned in your release that is taking place in Brazil, you I believe.
People downgrading their plans as they migrate more to a streaming is this something that you see more on net services.
<unk> and our R&D.
R&D th and are.
Are you seeing just behavior in other countries besides pursue.
Thank you.
Yes, well.
Daniel mentioned.
You know the threshold.
Let's say traditional pay TV.
Moving to our streaming.
And that's why we're launching Brazil collateral box that is are.
We believe there is a train that includes.
These shows on television.
On demand television.
A simple set of books.
It has been well accepted.
The market of course not enough too.
It has been out of the decline.
The legacy and this is affecting satellite and cable.
Was your question, but another one is what Daniel mentioned around a piracy.
In Brazil, we haven't seen that since we operate status due to launch of IP TV.
To open up.
The possibility to increase the piracy in all areas that we've even seen the three or four times that we have do.
Do we have a cycle so a big part of the market. It's using this kind of services in Brazil.
It needs to be very sophisticated.
Yeah.
Operation.
All the content through Internet, though different sources and they delivered to the customer through a set top box or smart TV and they have to wait to collection with Paypal and other sources of <unk>.
That's what we've been seeing the pay to be market. If you see the decline.
In the pay TV market in total year over year has declined around 8%.
<unk> subscribers and we are declining as well April things subscribers. So that's.
That's what I could tell you.
And just a follow up on this question is this piracy issue only.
Is restricted to pursue or is it something you're seeing across other countries.
Well, mainly in Brazil, we have seen something in Central America, but I think as that plays well in Brazil is very very important.
Got it thank you very much.
But what we are seeing a very quiet.
We have said in the report.
Uh huh.
We are indeed seeing that in some plants we.
We are providing a certain bundles with streaming services.
Those are.
Probably not including the same number.
Our multichannel that we used to have it in the previous offers okay. So those are.
There is some of that in that regard.
What are some people, who basically reducing the content that they are.
Having from the established channels that we have and moving more towards.
The type of bundles that we have.
Sometimes an emboldened with framing.
Understood. Thank you very much.
Your next question comes from Walter Piecyk from <unk> Partners. Walter Please go ahead.
Yeah.
Sorry about that earlier.
He is the Tracfone transaction still expected to close by year end or is there some.
Additional FCC items there.
No. We think we can close the track from transaction before year.
B, we're in charge of it and.
I hope we can do it before.
Our year end, yes, where we are okay with it.
Thanks, Daniel is there other what what is what's kind of going on in that business I think a lot of times when companies are bought or sold maybe there is some.
And.
The company and at the same time in the U S. I think it sounds like M. P. You know rates.
From the operators are getting more aggressive, meaning like AT&T as offering better rates to get dish, where maybe Verizon is offering aggressive rates.
I'm just curious if there's been changes in the market.
<unk> also noticed that.
Straight talk lost subs this quarter.
Not typical I don't think I can't recall, the last time if ever.
That's straight talk lost subs, so I wonder if you could if you could give us any any color I know you are selling this asset. So I apologize. If this is not something that youre going to it's going to you're going to.
Deal with but if you can give us any color on what you.
Because I see happening in that in that business.
Prepaid market in the U S. I'd appreciate it.
I think the only color that I can.
I can give you is that in tracfone.
A lot of the other countries we're seeing.
Little beat the problem of a handset.
So we don't have enough sand handsets to two cents there and.
Theres handsets, what remember that the handsets that we're selling in the prepaid business are lower than the handset. So really the problem in the handset business is more on the low.
When Dover meat than the a segment of brightest on those handsets Dan in the high end.
Prices. So that's what we're facing a little bit in tracfone and and not only in truck funding in all the other countries also saw in the.
The low and mid end, we're facing some challenge to.
However enough handsets to set.
Okay, Great and then can I just a question for Carlos just the Investor Day was helpful and these new targets for the debt leverage one two to one three and five.
Your business is very diversified its recurring revenue.
<unk> generated very good free cash flow I don't think there is a major capex cycle, you've given very good commentary on.
Kind of M&A opportunities or lack thereof.
Why with this low interest rate environment.
Would you.
Take leverage that low why not.
Set your leverage targets at one five or two or even two and a half.
Which investment grade companies.
Can sustain it and you can still borrow at very low rate and then use that excess cash to buy stock back.
Okay.
Uh huh.
We have always had.
Our conservative.
Financial policy is.
You are well aware of.
I think that Oh.
One last one and a half when today we have.
A part of our.
But we will continue to be cash.
Basically market that was securities in the form of.
KPN stock, we would eventually cover iPhone stock okay. So.
Thank you.
That is not exactly Josh.
Those provide a nice return.
I think it is more prudent for us at this stage at least until.
So it just takes that are not monetized.
To remain below the one account that we had.
We have set for ourselves before.
On the other.
Most of our operation.
In Latin America, and we know that in certain cycles, particularly when there is.
Increases in interest rates.
Globally.
That can lead to some kind of financial volatility. So we think it's always better to.
To navigate with like a lot of debt.
We are expecting that there would be some.
<unk> financial.
It might be financial turbulence and all that so we believe the.
There are clear.
Period ahead of Oscar there will be increased.
Interest rates and and I think that the way. We are we have defined it for ourselves we are going to be able to sell through these.
Turmoil in a very comfortable fashion and in a very secure fashion.
Thank you Charles I appreciate that color.
Thanks.
As a reminder to ask any further questions. Please press star followed by one on your telephone keypad.
Our next question comes from Alexandra <unk> from BBVA Alexandra Your line is now open.
Hi, good morning.
Thank God.
I have a question regarding margins.
Been posting.
A great performance here for several quarters and most of the.
The operations.
No.
How far do.
Okay, you can go from here.
And what would be the main drivers.
You know you can do that.
He told me and his team.
Overhaul them nationally speaking do you think.
You talk to each other.
Boy.
Hum.
To reach New you High school.
E D T. He tells you something.
Thank you.
What.
As you said.
I think what we have been doing that for some years, but the last year.
Do you think that these lockdown, we decided to increase very hard all the digitalization of the company and that is helping us to cost control and where.
We are really focusing on being very efficient and focusing on cost control.
Also as we said.
Setting in our Investor day, we still see a lot of growth in the region. We think that we can grow with more broadband more house connect that more.
<unk>, increasing nine five increasing.
Five.
Yeah.
Wireless.
And what fixed wireless broadband fixed wireless and.
I think it's important then I think in the region still we have room.
To grow we cannot talk all overall, because I think in different countries, we're going to face.
Different things nor by an example of a little bit in Brazil, we're facing some inflation right now and we don't know exactly we're going to how we're going to increase.
And when we can increase prices because of the competition, but still some growth in Brazil with more broadband that we're reporting.
So in Colombia, we are facing a new competition also there so all overall in different countries, we're facing different challenges but.
What I can tell you is that in America mobile we have been doing all the investments.
The last few years to be.
<unk> of our competition and to have the best network. Good distribution channels. Good digital platforms were strong incorporate and I'll go the alliances in the corporate to sell more products so that will.
Will give us more market that will give us more revenue and.
You hope that that will be.
More profit so that's what I can tell you why.
That is interesting.
Towards <unk>.
Is that.
We are now having practically all.
The aspiration system.
It was only one exception.
We are all delivering growth in both the mobile and the <unk> platform.
Delivering a return to growth on both platforms and this was not the case in the past.
It was we were growing in fixed.
Okay.
Goldman Mobile Bernardo.
Today, we are practically every quarter going on both platforms and that is tremendously helpful. From the point of view of EBITDA margin expansion.
Great. Thank you very much.
Thank you.
We currently have nice to ask a question. So now hand, you back over to Mr. John <unk> for any final remarks.
Just want to thank everybody for being in the call and also Carlos Oscar Daniela. Thank you very much.
Okay.
This concludes today's call. Thank.
For joining and I hope you have a lovely rest of your day you may now disconnect your lines.
Okay.
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