Q4 2022 America Movil SAB de CV Earnings Call
Thank you for your patience, everyone with the American <unk> fourth quarter 2022 conference call and webcast will begin in two minutes time, if you would like to ask a question at the end of the presentation. Please press star followed by one on hotel that's N G pad.
[music].
Good morning, My name is not yet and I'll be a conference operator today at this time I would like to welcome everybody to the American by the fourth quarter 2022 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there'll 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. Please press star followed by Chase. Thank you now I would like to turn the call epidermis, Daniela Lecuona head of Investor Relations.
Okay.
Thank you good morning, everyone. Thank you for joining us today for the Sculpsure.
<unk> 2020 financial and operating results, we have on the line Mr. Daniel Hajj CEO , Mr. Carlos Garcia Moreno.
Yeah, so on the federal government called good yield.
Thank you Daniela.
Welcome everyone.
Fourth quarter financial and operating report and Carlos I, just wanted to make a summary of the results.
Thank you Ronnie and good morning, everyone.
At the beginning of the fourth quarter.
You're about inflation.
Thank you Don would require in terms of additional inputs.
Okay.
Drove long term interest rates in the U S to the big for the year in the fourth at four 2%.
They remain very volatile the rest of the quarter and we ended the year at $3 87 per cent.
Nonetheless pressure.
And they don't carry in the region.
The Mexican peso and the Chilean peso depreciated sharply.
With the Colombian pesos pumping <unk> likely to decline for several months.
Throughout the period.
But that would remain quite volatile and with no operating grant and the country was in the midst of harvest due to election.
No.
We added $3 3 million wireless subscribers in the quarter.
Of which 1 million were both big flights.
He led the way with this Congress telephone tops, followed by Youll start would be going up in 2000, and Colombia, We got hungry and 60000.
Our net gain some prepaid totaled $1.8 million with Mexico contributing over half of that figure with non congrats 75000 subscribers.
Colombia can mixed with 546000, and then Central America with to put in a 47.
Okay.
I'm just picking one platform.
Accordingly, our new broadband access.
Argentina, and eastern Europe generated substantially all of them 69, I'm 40000, respectively.
Central America, Dominican Republic, I'm buffering either closed.
Each one.
Yeah.
Thank you to you reverted the lawsuits have saved over the last several years with 97000 new clients.
This included 53000 in Argentina 36000 in Eastern Europe 34000 in Central America.
Although Brazil continued support net disconnections they were substantially lower than they had been in prior quarters minus 60000 in the fourth quarter, whereas in previous quarters. This I've covered with you in a corner 50 and 200000 flights.
Industrial flex a growth rate.
Correcting for the acquisition of four clients in the second quarter.
Our postpaid base continued to be more than what we got 38% decrease year over year.
Prepaid coming next at four 9%.
Including Orange life, the excess growth rates at the end of 2013, due claiming that eight 8% six 8% respectively.
This two years already reflect a $4 1 million cleanup of our wireless subscriber base in the quarter.
Former old claims that were not generating profit.
Broadband extra case remain very stable, we'd have to 4% growth base.
So basically there have been a noteworthy shifts the expansion of its client base, which turned positive for the first time in several quarters.
Our fourth quarter revenue totaled two congrats 16 billion pesos down two 4% year on year in Mexican peso terms.
Service revenue declined one 4%.
The yearly reduction in revenue in Mexican peso terms.
The appreciation of the Mexican peso vis vis practically all our main operating currencies, except the Brussels yesterday.
At constant exchange rates correcting for currency movements mentioned level.
Services revenue actually increased 6% year on year with representation in the preceding quarter.
EBITDA reached nine 4% year on year to 84 billion.
Comparisons in the fourth quarter or $79 6 billion.
Adjusting for extraordinary items.
Cost of exchange rates.
Adjusted EBITDA rose, 5% as compared to five 7% in quarter $4 50 in the second quarter and four 8%.
First quarter.
The adjusted EBITA margin remained almost flat at 37%.
Percent year on year.
34 basis points reduction in relation to the year earlier quarter.
The adjustments.
In Florida extraordinary revenue from the sale of towers by mix.
Both in the fourth quarter of 'twenty, 'twenty, one and 2022.
My bedroom in the current quarter.
The reduction in medical costs and property taxes levied on telecom infrastructure, but.
And the elimination of a provision and niccolo.
David.
Also our payment obligations.
Regarding telecom infrastructure.
You can see the numbers here and good night.
Both mobile and fixed line service revenue.
And at a similar pace.
Then in the prior quarter.
More like around the growth.
At nine 8% growth figure that service revenue loss.
Likely positive.
0.2% breaking it up to third quarter.
On the mobile platform.
Postpaid revenue growth.
Thanks for pinpoint represent stayed strong, but that's a pretty good likelihood.
It's nine 5% in the third quarter grew eight 6% in before.
Rajiv posted 32, 7% mobile service revenue growth.
Bob can you reflect the incorporation of formularies of suppliers.
Mexico came in next at nine 1%.
And then eastern Europe , as Karen pointed at the hip and.
And these are people like that.
Okay.
I saw the figures on platform revenue from both corporate networks and broadband services decelerated from the third quarter from one four to 10, 5% in corporate networks and from three.
One 9% in both on services. However that give you revenue continued its recovery declining only 1% during the fourth quarter, it's more or less decline in several quarters.
Okay.
Broadband revenue increased posture in eastern Europe .
Dominican Republic, and Puerto Rico.
All of them close to a 15% pace with Columbia, serving a decline or the same magnitude on the kinds of speech of competition.
Corporate networks revenue.
10, 5%.
Together with postpaid and he was the fastest growing business line.
Eastern Europe , Brazil, and Niccolo standout or the more dynamic loss in this segment.
You mean that growth generated in eastern Europe to 10, 7% from eight 6% the prior quarter in Mexico.
Nine 4% from four 3% more than double.
Peru grew five 3% or minus 049 percent.
It remains in Austria, and we celebrate their weight.
And then I have a percent from the standpoint that the 50% and combined with three 7% from months to your point for your project in Colombia.
Yeah.
Yeah.
Operating profit totaled $44 7 billion peso during the quarter.
10% in Mexican peso terms.
Depreciation and amortization of childhood locked at one 2%.
This incorporates a reduction in power.
That will relate to the provision charges pursuant to.
With our spin off and the increased rates of your depreciation charges arising from the new Howard lease obligations.
After a comprehensive financing cost of 8 billion pesos in the quarter, which was 57% smaller than the one in favor of a year before.
We ended up with a net profit of $23 1 billion vessels from our continued operations, 500% greater than that of a year before and a $13 3 billion pesos once the effects of the deconsolidation of cloud Chile.
Into account so again.
Net profit.
From continue operations.
5%.
How do you think you could probably year over year.
Our cash flow, our net borrowings of $7 billion vessels allowed us to cover our capital expenditures in the amount of 160 billion pesos.
Shareholder distributions of 50 billion pesos and labor obligations totaling 24 million base.
That was a net acquisition of ownership interest in different markets during a portion of automotive client.
We saw a net receipt of 35 billion base.
Thank you.
Excluding leases.
Our net debt totaled 399 billion peso gear of the year.
Down 19 billion peso relative to the MTA here in terms of the new one.
Our net debt to EBITDA ratio came down to 1.3 points.
End of the year.
So with that I will.
The floor back to Daniel Thank you.
Thank you Carlos.
We do Q&A.
Thank you 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 pool. So just a moment to compile the Q&A roster.
I'll have to ask question guys should Lucas change of UBS. Lucas. Please go ahead. Your line is open.
That's okay.
Hey, guys. Thanks for having my question and I would like him to understand why do we have been mining capex for the near future.
Considering five G and how that would affect shareholder distributions.
And if I may ask a second question.
Mexico, if you could give us more to tell you walk the mobile strategy at your update during the quarter.
And mostly from their stand this strategy going forward in prepaid brand.
And if the space obligation is going to continue going forward. Thank you very much.
Thank you first question on the Capex, what we said.
The last year is that were going on.
20.
<unk>.
Capex for the next three year and I think it's that.
Target that we have.
I've been fluids.
Frequency.
And last year I think we do seven nine so this year our target is around eight eight to because we've got something last year that we're going to put this year Bob.
And what I said.
Yeah.
One one or two years ago.
He's not increase a lot of capex, because what we have been doing investing.
So we have good being debated either to the no.
A lot of the things that you need so.
Only thing that we need.
To put to increase.
And to boot.
It's more the radio okay.
A little bit on their side.
Some of the other things that we need that needle.
On the electronics, but it's not a big investment to Nike.
In our network, we have been investing in our networks.
Yeah.
Modernizing it.
Not something that.
We are targeting for.
This year is to increase our fiber in.
Some places we're seeing some opportunities in some countries doing more fiber revenue increasing our peaks.
Yeah.
And thats more or less where we're going to focus we're going to focus on the digitalization of the company to save cost we have been doing that for the last five years.
And that's that.
It's something that we were doing so.
Our deep value more.
Everything more.
Neil.
And.
Cotton costs.
You have to invest to do better.
So that's more or less where we're investing our time to get these 24 billion in three years and we are we are on that on Mexico, what's the.
Specifically in Mexico.
As more too.
And this strategy.
Regarding mobile strategy, especially things than.
Additionally, we prepaid is what state it's going to continue going forward and thanks for the question.
Yes.
On Mexico, I think we are doing good we have around.
100 <unk>.
Bye.
We are.
In a very good position on the <unk> I think our competitors.
They are not competing in.
We have.
Good name with distribution.
Yeah.
Top of mind in Mexico. So we're doing good we're growing we're growing in prepaid.
The.
2020, with the pandemic being the postpaid subscribers decreased a little bit Bob.
<unk>.
This year it last year plenty plenty to start to grow again.
This quarter, we have 60000 boot we feel we're doing also very good in phosphates. So we are.
We have a good strategy.
Yes.
The wood.
Good name in the market.
That's good.
What is happening a little bit in 2020, the wireless fixed wireless we grow a lot in the fixed wireless because.
People stay at home and Internet.
Internet and.
That is becoming days, reducing we're having these connections from that because a lot of companies telmex is putting fiber so aib's connecting a little bit.
The fixed wireless but in the normal phone we're growing also <unk>.
So that's more or less what we have been seeing so.
Yes.
People are starting to move they need the phone that you need.
And they are not staying at home so.
Let's say moving from the wireless in part from the wireless Internet to a multi being pretty mix. So that's what we have seen in the last six months.
Okay that was very clear thank you very much.
Thank you.
Thank you and the next question goes to Alejandro glass shy of BBVA. Alejandro. Please go ahead. Your line is open.
Thank you.
Hi, good morning.
Carlos Oscar Daniela.
I would like to ask you about the <unk> business is strategy in Brazil.
You've been reporting.
Consistently good.
Yeah.
Good results on your broadband business and also in your corporate segment, Brazil.
But somehow.
Voice on the PCB segments continued to Youtube dragged down results and to continue.
Putting the small declines in fixed line business.
I would like.
It depends on why this is happening this time DM.
Yeah, Sterling FTP H deployment that you're.
Is there anything in the country.
How are you seeing the competition or why this is happening and when we should expect to see a turnaround in these fixed line business in Brazil.
Thank you. This is my first question. Thank you.
Okay.
Jeff.
Hello.
As you mentioned.
You look at our revenue fixed voice.
We are growing.
Five 5%.
Let me let me.
Comment.
In the.
Conference calls.
Look at all the case.
And for DOCSIS three one so we could deliver one gigabit speed in all of the cable network.
And as you mentioned, we've been building fiber to the home.
We announced last year with close to 8 million home passes we harvested at home.
We'll continue to do that so.
We see a very good month of December .
Last quarter, we were really positive on that side.
I think the landscape is changing Yuma with E.
<unk> is an all day.
The environment that we saw in the last year, but as you mentioned voice is declining and the declining everywhere.
Now is a substitution through mobile or through different substances IP voice.
<unk> when you look at the decline.
We have half of the decline that we saw in the prior quarters.
It has been working fleet and that would be the new let's call. It a new PV. So we've got we call.
Yes.
Collateral.
What's working.
The group of course are not enough to compensate the decline.
We believe that is a good trend.
They tend to be climbing pay TV oncor.
On corporate we mentioned before we have a very good year.
Different value added services were 90 minutes and value added services, we are going to regroup and cloud services.
New vertical solutions in the market.
In a chat bot that includes same accumulating and FPP.
Yes.
So we feel that we have the right organization get <unk>.
CCM copper in Arkansas.
And adult.
I think the revenues where group in the EBITDA in Brazil, as well, while we will continue to do that we do as I mentioned more clarity here.
Three.
Another thing that I.
Forgot to mention is that okay.
Roseland has very little or no question.
Or more relevant.
The ability of the network.
To repair so between working how we do the best customer experience in the market.
We are number one.
Yes.
We'll try broadband in the content.
And we are working to reduce it.
When you look at the last quarter of the Chunghwa really group against the three or four items, because we are working as well and the customer experience around and fix the problem.
And all of the services.
Well I think in Brazil, just to make a summary of what those guys, saying I think in Brazil, we are expecting.
A better this year than last year in terms of broadband in terms of the PB.
Describe hertz market and everything so I think it's a good opportunity this year in Brazil.
That segment of the market.
Thank you Danielle and any color on.
Dupont <unk>.
Sam can you just touch.
Other companies are seeing infrastructure there.
Any color on that.
We have talked with a lot of them.
Until today, we haven't closed anything in Brazil. So.
No comment on that no comment on that.
Well again, thank you for taking the questions.
Okay, we're open depending on the conditions, but until today, we don't have anything.
Okay. Good thank you Danielle.
Second question is regarding.
The <unk> technology.
Like to hear from you.
It's been you.
<unk> deployment is.
Been a few quarters since you already started the process technology in the region.
And then I would like to hear from you.
What do you expect to get.
And out of this technology going forward.
And maybe more specifically.
<unk>.
Hum.
What's been your experience with that.
With your customers.
Using these technology you believe that you are willing to pay a premium.
But are you seeing this technology and therefore, we should expect an increase in revenues are not who's going forward as you continue to claim this technology and also maybe.
Even given via.
Yes.
The increased efficiency of the packaging technology, maybe you should expect.
Improvement continued improvement.
<unk> margins going forward.
Maybe these efficiencies should be upset.
Yeah.
Expense is driven by the increased number of towers that you should be renting.
Ladies technology. So overall, how should we think about deployment.
G deployment going forward, what should be the impact.
Revenues are pollution.
Profitability going forward, giving your experience so far thank you.
So.
Very good question.
Difficult to explain everything.
The thing that I can tell you is that on on Mexico that we have been deployed.
150, <unk>, whilst our first <unk> well also Austria.
Austria, and Mexico, Brazil, the volume.
Also in a good place there.
<unk> has been growing in Mexico are grow let me.
Culture.
Hi.
Around 6%.
A lot of that in postpaid is because.
<unk> five <unk>, helping us to grow that I think the experience with the people.
Good I think that speeds higher okay people is using more.
Got it.
Most of that sort.
Abuse and.
And why did you need to do a lot of work to do to optimize the network. Because then you are running through <unk>.
A lot of things that you need to do as you said is more ambition.
<unk> so.
There is a lot more.
Handsets week five D than we have last year. So there is a lot of things coming in.
And I think it's a good technology is more efficient as you said so doesn't make any sense to put on the board.
You can buy.
As I said.
A few minutes ago.
If you do it.
And if you do all the work on all the investments that you need to do fiber to the node electron mix in a lot of things that they are in the core also to deploy.
In the other side.
The market Okay in the corporate market I think there is a lot of of new.
Yeah.
Applications that were going up then there is a lot of things internet of things things connected and it's starting to go on that non of 19, that's that's not for tomorrow or the next five years I can tell you that we're going that path.
Millions of beans connect that being in the corporate side and a lot of new applications in that so.
We're happy.
The growing by GIC engaged profit doubled board also deploying <unk> and <unk>.
The people like <unk>, so, it's a little bit of advertising, a little bit more speed a little bit of applications.
There is a lot of things.
All other applications that I think it's working very good in the U S East.
With the peaks, okay fixed broadband.
Fixed broadband wireless and <unk> I think it's another application that its going well and <unk>.
Places, where you are not going to have a <unk>.
I think it's very competitive it's a very good Bravo.
I think that CP.
Reducing the prices soar.
We were going to start to put more and more of this.
In Austria, we have a lot of that I need to be cost, let's say junk people does not want to call us for fiber connected so what they do is they buy the pipe.
R&D model and then if they change home or they change plays they take it with them and makes it very easy for them good speed.
And.
It's working very well so there is a lot of things that are.
Around <unk>.
Working photos definitely working.
Thank you Danielle Thank you very much for the explanation.
Thank you.
Thank you and as another reminder, if you'd like to ask a question today. Please press star followed by one don't know Jonathan Keypad. Please note we will take one question and one follow up per person and.
And our next question goes to you Walter Piecyk of Light had partners. Please go ahead. Your line is open.
Yeah.
Thank you Carlos.
Thanks for providing the constant currency growth in service revenue was there also any type of one time.
Counter entry to what you reported service revenue I know, sometimes there's like.
Intercompany eliminations or anything in that service revenue line that might reduce it relative beyond currency, which you also obviously put in your press release.
And maybe if you can give us some sense of in constant currency terms. What do you think service revenue growth will look like for 2023.
Sure.
Okay I.
I think it's.
It's been quite consistent with the revenue growth.
It has been accelerating throughout the year.
One of the slides.
I think it has been.
Stable around 6% for two quarters.
Having increased from about 4% at the beginning of the year.
And I think that the underlying.
Quint point to growth in many of these.
Yes.
The range.
Which is.
Hi years I'm proud of we've had mentioned at the Investor day.
With more than a year ago, we're looking at 2.5% to 4% passenger is willing to work with.
Delivering 6% over the last part the last two or three quarters.
<unk>.
Terrific.
The estimate that we are going to be continuing with this kind of service revenue growth. There was nothing exceptional in terms of revenues.
So what you see.
In all the results that we're kind of in the reported.
Reported countries all the intercompany transactions are in the Nathan.
Yes.
The content of that.
So there is really no no.
We sold.
From intercompany transactions.
Okay.
Just maybe the math now we're calculating that conversion.
Okay.
No nothing.
And Mike one follow up.
Okay.
And then Carlos.
Obviously the move in the currency.
Has helped the debt leverage relative to the EBITDA.
When you think about.
Capital return.
Who knows how sustained currency moves are going to be but like.
But how do you think about that internally when currency helps your net debt leverage.
Are you willing to house in that quarter.
To add additional share repurchase or.
Do you do you wait for some period of time to see kind of where currencies will ultimately end up.
Yes, I think that.
Most of the.
Most of that is.
We are thankful.
And therefore.
Ah represents a larger share of the.
Of our EBITDA.
I don't believe that.
Returns would be.
The distributions.
We determined by the currency.
In our call from 2018 countries all over the place.
And what we're seeing if anything.
Going forward, we saw strengthening of.
All the other currencies.
Appreciate it.
In light of higher interest rates.
Within the base.
Some perception that employers from a prospect.
I think that we will continue to see currencies.
I appreciate it and we think we will continue to see the Chilean peso appreciated.
London, Paris are all I think most of the currencies in the region will be gaining we are gaining strength over the next.
Next few quarters.
And I think that the Mexican peso will remain also.
But I don't I don't see that really affecting.
Distributions.
<unk>.
Sure.
The EBITDA.
Leverage ratio I think is going to be remain fairly.
Fairly stable.
1314.
<unk>.
Yes.
Got it if you don't mind, just sneaking one more in for Daniel.
Talked a lot about <unk> and consumers buying phones, but last year in the United States.
People the replacement cycle is getting long or people were.
We're taking.
Taking longer to replace their phones, even though <unk> what's available I'm just curious when you look at your markets in 2023.
Do you think people will be upgrading their phones more frequently or followed the same trends that we're seeing in the U S.
Okay.
Good question I think.
Yes.
And maybe.
20.
1022, definitely this lack of handsets so cheap sometimes it so I think.
They don't replace us often because of maybe 20.
21, a little bit also 2022, I think today, we have enough handsets what people, what what's happening and what we're seeing people.
Choosing a better high handset in Latin America, a higher priced handset, but as you said they are.
Replacing that a little bit longer is what we are seeing a little bit they choose.
Bonds are available at 200.
<unk> got like $200 right now so there is a good prices for <unk>.
Handset so.
For us it's good if people delay a little bit the replacement so.
Longer what they say.
I think it.
It's good mostly in all places we have been.
Selling the.
I am not subsidizing any margin in Latin America. That's on places, yes are the ones now, but I think it could be people.
Little bit longer with a cockpit so.
<unk>.
And we're seeing that all around Latin America.
Okay.
Okay. Thank you.
Thank you.
Thank you and the next question guys you Alejandro <unk> of GBM Alejandro. Please go ahead. Your line is open.
Hello, Good morning, Daniel Carlos Oscar Daniela.
My question is on the value creation, especially.
Our announcements.
Congrats on the announcement.
Telecom Austria.
My first one Nathan and that's drawn down the road.
On your stake in Telekom, Austria.
Being that you could monetize part of that stake.
And on on our tower business in Latin America.
And how many towers as a mix.
You have.
And the balance and if you are planning.
David.
In the next.
One three years.
And the third one if I may.
Also value creation.
The possibility of Athene.
Any indication of other infrastructure assets.
Perhaps EBITDA.
We're nowhere in Mexico. Thank you very much.
Well.
That's our assets remember we lose.
Latam sites.
And what's been knocked that last year, I think we still tap, Colombia and Peru.
We're planning to do.
We said already that we're gonna do Peru.
This year.
We're still reviewing what date is going to be.
Got it in the next months to do.
And the only thought was that.
We see.
Our Columbia, So those are the only ones in Austria <unk>, the only thing that we do.
We are.
Outdoor is the spin off of.
So were one our work on the spin off of the bar was so Austria.
These towers are going to be I think at least in asked we are planning to be leased in Austria last word on that.
Yeah.
Remain weak.
Yeah.
Sure.
We already have and I think the government of Orissa that you wanted to say also that so we are not planning to take it out to the market saw at the beginning work on that is they like these on the outside of Telekom, Austria, and that's what we're planning to do still a lot of work and a lot of about 30.
<unk> booked.
Okay.
What we have been discussing them.
What we're going to work to do in the next.
Months Okay.
And.
No I don't think we are.
Linking to sell any of their infrastructure.
In Latin America at this moment.
We are okay I think it's.
We have a lot of fiber.
We are not planning to sell any of our fiber.
Nothing material.
Also in Europe , we are not.
Things inbound setting, but I think it's a good asset we want to use it we want to penetrate we wanted to have more subscribers.
And in the other side, we're going to do more fiber to the home fiber to the curb either we're going to put more fiber part of the Capex of this year is to put more fiber.
Through Google.
Europe and.
Im not been nudging them out in Mexico.
Great.
To clarify.
The only color.
On settlement.
On balance sheet.
<unk>.
See I don't know if <unk> got something.
Still there.
Really the country met.
Mexico Telcel in Mexico.
A lot of hours.
It's been an up like I don't know six years ago than now.
Samsung life.
Latin America will be made up around 40000 sites.
<unk> lost.
August I think we'll do that in Las Palmas.
Uh huh.
There is still two countries, where we don't have we got to the Dominican Republic.
As each month and as deep.
And Colombia are the ones that we stop.
We're planning to do back in Colombia deal, we don't have any plans for Google.
And it's still maybe we start something in Panamax booked debate should be very small.
Muscle.
Okay.
Thank you.
Okay.
Yes.
Thank you. Our next question guys you Carlos like Erector of ITI you Carlos. Please go ahead. Your line is open.
Thank you good morning.
I have a couple of questions here. The first line is declining in Mexico, you had some disconnections in the quarter and broadband.
Have you noticed a tighter competitive environment that your competitors expand their networks and if you can disclose how many homes passed with fiber do you have the end of the year that'd be great. Thank you.
Yes.
Okay.
Yes.
Telmex has been migrating the customers from copper.
Copper DSL to fiber.
Last year, we had 67% of it.
Customers already connected with fiber.
We will continue to grow.
Thank you yeah, so now 67% of the base.
<unk> is already connected with fiber.
And we will continue to do that migration.
This year.
So we are expecting too.
Who is up 67%.
Here.
Within this year.
I think.
Yes.
What we have been doing in fiber in Mexico has been good for core <unk> mix I think that we're migrating to fiber.
Doing a lot more home passes.
Yes.
Big part of what we do.
Is that Mexico, Mexico worthy loans, we're going to deploy.
Also a lot of we're not disclosing how may mean, each fund three what Mexico is with a very good.
The plan on deploying fiber, replacing copper undoing Green Greenfield.
Areas smaller basis, so that's more or less what we have been bringing competition on these very very tough in Mexico prices higher.
Are are very competitive and.
What we needed to compete more in to what the work and Veeva.
Speeds.
Good experience to our customer experience add more value to our offering and thats, what we are doing.
Oh, great. Thank you two quick.
Quick follow ups just the first one is on the timing for the stock conversion into a single serious if you have any timing for that.
And lastly, if you can please disclose the first Steve you will receive from the towers told in the Dominican Republic.
I think on the.
On the shares depending.
On the B and BB plus.
I think it's not going to take too long.
We can do it in this quarter.
Yes.
February March, but we don't know.
And depending on how the spectrum.
All the papers are submitted so we're waiting for that.
On the.
On the Dominican Republic, we don't disclose those numbers, but we are ready to around 3000, I remember, it's around 3000 towers Norwest, Dominican Republic cost item.
Angela can give you exactly the number but.
We're not disclosing.
Quantity by country, So we already do like.
Be knock off everything savings something thats been off in other ones and that's what we have been doing.
Are you can you can get.
So let me allow for sure.
Thank you.
And medical centers I think are sorry, not 3000 or 1400 towers.
We sell in the copper market.
Thank you and our next question does he see that Medina of Morgan Stanley . Please go ahead. Your line is open.
How are you thanks for taking.
My question.
It relates to shareholder distributions from cash flows so if I understood correctly the comments.
Carlos was mentioning you have.
8% to $8 2 billion in Capex, and then deliver to supposed to be.
Roughly stable I'm, assuming you win.
Your budget process, maybe you can give us an indication of.
The building blocks of our free cash flow generation that you have.
What does that mean for the restaurant speaking that the amount of dividends.
Potential buybacks that you can do relative to the 2022. Thank you.
Okay.
It doesn't look forward was the same.
MMA we have.
Nothing that we are considering new acquisitions for the year.
On.
We will continue to have a.
From.
Income coming from the.
Yes.
On a same Av platform.
Part of the air now.
We have taken this year.
And therefore, there will be some amount.
The coming in.
So slightly positive on that front.
Then.
On.
Nevertheless.
It has come up before I've mentioned, we don't like.
<unk> to be live at one three times.
We are today.
The one three to one for a project, where we would like.
In terms of the leverage ratio.
And I think that very much.
Thanks Scott.
Yes.
For distributions.
No Nicole on M&A.
And then kind of already mentioned, the Capex, which you Sir.
<unk>.
Relatively flattish compared to last year.
You have minor incremental this year.
And.
And that's about it.
And then for the rest of working capital and any comments on that front.
Working capital is very cyclical in this company.
We require working capital in the first quarter.
And with that getting it back all of the rest of the year. Okay. So that's very very cyclical but.
Increased year on year in working capital this is enough.
Small.
Linked to the overall growth of the company.
But it is a very perfect. Thank you so much.
Thank you.
Thank you. Our next question guys you Penny kind of movie of HSBC. Please go ahead. Your line is open.
Good morning.
Thanks, everyone for taking my question. So my question is regarding the pricing and.
So among the major markets of each other markets, where you are able to increase the prices for plants and Boston being pushed into the consumers and looking forward to 2023.
The countries that Youre confident that you could increase prices in line with inflation. That's my first question. Thank you.
I think.
We have been increasing prices in some countries not in all of them, Let's say, Mexico, we haven't increased prices.
We feel comfortable in Mexico, because theres a lot of competition.
Sorry in the mobile and a lot of competition in the peaks so.
Okay.
To increase prices, there, but in other countries where increasingly depending.
We're going to see we inflation.
So of course, we're looking where we can where we're going to not increase prices in 2020 to be so in 2022, yet we already do we already do some country and.
And as I said in Mexico and in other countries also we don't do so not only Mexico not another one yet with them we were successfully increasing prices good but.
But there we're reviewing 2023, and we're gonna messy, where makes sense for us to increase prices of course, we know that the inflation.
Costs are increasing so we have to work hard on cutting costs and also in some places increased prices depending on the competition.
We were saying before I think that we expect the currencies in the region.
Likely the strongest on day one.
Somebody yesterday, so that's fair.
Some relief on the cost side.
For FX related acquisitions.
Acquisitions content and the like.
But.
It's something that we're looking every month to see exactly past.
Competition pricing promotions everything so that's what we need to do all these years.
Okay.
Hi.
Okay.
Thanks for that answer my second question is regarding the labor obligations. I think you had a $24 billion of ultra obligations held float this year, how do you see you know the slow going.
Going forward and.
The recent negotiations with tenant makes you know how do you expect that to impact.
Labour obligations outflow going forward.
Okay.
Yes.
One important comment.
So.
The level of obligations.
We are present in there for us.
Our personal.
Basically quality.
That is not coming from the pension fund itself.
We have a pension fund in Panamax and <unk>.
Pension funding requirements.
Sometimes.
We would want to keep it more funded.
And.
That's why we haven't been withdrawn.
We expect that the amount that will be coming out of the cash flow as opposed to the pump.
It's going to be.
Some quite smaller than we thought.
<unk> for last year Okay.
Sure.
I think that we will start to see from reduction.
Thanks, Sean.
Assets grew.
<unk>.
Maybe it can be I think.
It's a lag here.
Percentage of the organizations. So I think that we are happy to.
Take out a bit more.
And that new vehicle.
Yeah.
Yes.
That's very clear thanks, everyone.
Thank you.
Thank you and our next question guys Julie Chen of Bank of America. Luca. Please go ahead. Your line is open.
Hi, Good morning. Thank you for taking my question. So it is related to the Brazilian mobile market and well since the sector consolidation, we saw that both prices.
And that adds have been really strong. So my two questions are in relation to our pool.
Do you believe that this.
Strong sequence we continue on this.
Higher price hikes will be the new structure of the business or if this will only keep up in the short term and then also in that ads.
If you believe that those will be sustained at least in the short term. Thank you.
I think we have a good business in <unk>.
Siding.
The.
Purchase volume customers, we do see them to bear I think.
We incorporate those customers in.
Wood costs.
In terms of our pool, Greece.
Greece, some prices in Brazil so.
Our growing.
Yeah.
We have a good quality we have.
At East Dubuque shown good good working a lot on corporate <unk> and also <unk>.
So we feel that we can compete.
Okay.
Yes.
Okay perfect. Thank you.
Thank you and our next question guys you Andres Coello Scotiabank address. Please go ahead. Your line is open.
Yes. Thank you for taking my question.
You already mentioned that the pension fund.
Can you perhaps comment on the relevance of the potential conversion.
That telmex pension liability some destock.
Perhaps any specific target on what percentage of that pension liability could be conducted.
And that what will be the value proposition to workers.
Well I think.
It's still there.
So these guys I think this is don.
So far our concept.
In Florida, I think to the extent.
There is a conversion.
Thanks, Sean.
For equity.
With me.
The company on a stronger position.
Although liabilities would be reduced.
And.
To the extent that's the case maybe.
Equity.
And that can take some more value over time, because it will be equity of a company that will be stronger. So I think that's conceptually what beef I think this time everything else all of them the content domestically workout.
So I don't think that I can give you more light on that but I think the concept is easy to understand.
Thank you and my second question will be on Colombia, we've seen weaker results in recent quarters. Some margin compression as you mentioned in the press release that you have seen more pressure on the broadband segment, perhaps you can elaborate a little bit on where that pressure is coming from repeat for me Commerce, California got it.
And we'll give more color on Colombia.
I think what.
What are you seeing Colombia east.
And along with parts, maybe one one and a half years ago.
It would be aggressive in the mobile side. So we start to we also all the market will start to be more aggressive, but you could see that trend on the mobile and the mobile mix is starting to grow again, we grow these quarter four 5%.
So we used to grow one or even right now we're growing so on the mobile side.
Think of things.
Things are getting to growth again on the <unk> side.
It's a decision I think the market is very competitive prices are going down we decided to compete so we are.
We are reducing a little bit but at the end of May I think that's what we need to do so it's going to take a little bit of time to recover we are putting a lot more fiber all around Columbia.
I think we have a very good offer and that no more than that it's not only one competitor in the market.
Is on there.
Big competition in the in the peak side and what we're doing is we're competing so we.
What we have there.
Sure.
Yeah.
Before constructing fiber we are also doing fiber.
Prices are going a little bit down so we decided to compete that more or less while we do promotions we do some.
Things to compete in the market thats more or less what you.
What's happening in Colombia is not one competitor on the other one needs to the market.
Thank you.
Okay.
Thank you and our final question today, guys you Marcello Santos of JP Morgan Marcelo. Please go ahead. Your line is open.
Hi, Good morning, Thanks for taking my question I wanted to ask your views on ASP <unk> fixed wireless access how does American Marvell seed that do you think there is potential you mentioned that in Mexico, you were losing some of those subscribers F fiber advances in the country. So is that something you think could be useful.
On Latam or even in Europe or do you think is a technology that's going to go down with fiber keeps growing thank you.
I think it is going to be a boost fiber.
Yeah.
It's also important when you put it that way you can I was going to be.
<unk> already got fiber and they already have.
The Wifi and Bayou, Vera and everything while it is going to be difficult to infer that there is a lot of places all around Latin America, where you don't have fiber.
<unk> are not so good.
Fixed wireless access.
We have around 4 million fixed wireless access in Latin America.
They grow a lot in there during the day.
And then yes.
And slowing the growth right now, but I think they are still very good room for these b cell.
Yes.
It's going to be very difficult for the fiber to cover all.
All the places.
All the territory.
I think it says.
Robert.
Yes.
No.
So it's also important in low and then.
No one.
In medium density area Okay.
If we go to put fiber or <unk> or so.
I think we're going to we're going to have a good competition. There is also the satellite business that are putting some I think these properties.
This better than the satellite business also theres going to be places, where we fixed wireless access <unk> saw its also an opportunity.
<unk> satellite business, So I think to cover all Latin America.
Broadband you'll need to have all of the.
Saturday nights fiber and fixed wireless occupancy and then satellite so that's.
What youll see in the next year.
Just a follow up but do you think is going to be like relevant.
It grew.
<unk> substantially versus the <unk>.
Fiber wired broadband, where he's always going to remain kind of a more niche product.
Alright.
It's a difficult question, depending in some places depending what do Jews that depending if the fiber you already have fiber in your house.
Pending if you are going to deploy it.
It's not it's not the same price to deploy.
The fiber in that 50 them to deploy fiber in low density areas.
Sure.
Depending a lot on the use of that because these ones you can move it wherever you want in your house. The other one you have to put it that way.
Wi Fi <unk>.
Life by mass so I think it's.
There's going to be.
The market for all these products of course, I think fiber is going to be the biggest one but there is going to be.
For these one that fixed wireless access and also for satellite beam.
And more in Latin America.
In all the countries.
Alright. Thank you. Thank you very much.
Thanks.
So with no additional questions waiting at this time I would like to hand, the conference back over to Daniel Hajj for closing remarks.
I just want to tanker all of you to be in the call. Thank you very much.
Ladies and gentlemen. This concludes today's conference. Thank you for joining you may now disconnect your lines.
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