Q3 2023 America Movil SAB de CV Earnings Call

Operator: Hello everyone and welcome to the American Movil 3rd quarter 2023 conference call and webcast. We will begin shortly. If you would like to register a question [inaudible] for the Q&A session please press star followed by 1 on your telephone keypad. Thank you for standing by.

If you would like to register a question body for the Q&A session. Please press star followed by one on your telephone keypad.

Thank you for standing by.

[music].

Operator: Good morning, my name is Daisy and I'll be your conference operator today. At this time I would like to welcome everyone to the America Movil 3rd quarter 2023 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remark, there will be a Q&A session. If you would like to ask a question during this time, simply press star followed by 1 on your telephone keypad. If you would like to withdraw your question, please press star followed by 2. Thank you. Now I'll turn the call over to Ms. Daniela Lecuona to begin, Head of Investor Relations. Please go ahead.

At this time I would like to welcome everyone to the America My belt that coach at 'twenty, two 'twenty three 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 one on your telephone keypad if.

If you would like to withdraw your question. Please press star followed by chain.

Thank you now I'll turn the call over to Mrs. Daniela Lecuona.

To begin head of Investor Relations. Please go ahead.

Daniela Lecuona Torras - Head of IR: Thank you so much. Good morning, everyone. Very happy to hold this call this morning to discuss our third quarter financial and operating result. We have in the room, Mr. Daniel Hajj, our CEO, Mr. Carlos Garcia Moreno, CFO, and Mr. Oscar Von Hauske, COO.

Very happy to do it.

This call this morning to discuss our third quarter financial.

No Brady we go we go.

Having the room, Mr. Daniel Hajj CEO, Carlos Garcia Moreno, CFO, Oscar who how good you are.

Daniel Hajj Aboumrad - CEO: Hi, good morning. Thank you Daniela. Thank you for being in this 3rd quarter financial and operating report and Carlos is going to make a summary of the results.

Thank you for being in this.

Third quarter financial and operating report.

Carlos is going to make a summary of the results.

Carlos Garcia Moreno - CFO: Thank you Daniel. Good morning everyone. Well, buoyed by strong US economic data, particularly on employment levels and recently, also on consumer spending and lingering inflation concerns, 10-year dollar interest rates shot up by approximately 80 basis points over a 10-week span in the 3rd quarter to 4.6% at the end of September, driving another bout of dollar strengthening. By the end of the quarter there was practically no more hope that interest rates will decline in the latter part of the year and there was instead preoccupation that the Fed was still not done raising interest rates.

One more day by a strong U S economic data, but to your lender unemployment levels.

Recent Joseph.

Our consumer spending.

Im wondering if there are some concerns in Europe.

Year Bellatrix risks shuttle by approximately 80 basis points of ethane were expand maybe third quarter to four 6% at the end of September driving another bout of dollar strengthening.

By the end of the quarter there was practically no more hope that integrates with decline in the latter part of the year and we're working that field rotation that the fed was still not done raising interest rates.

As you can see in the market, the rates have continued to go off through today. And they're about to close to reaching 5% on the 10-year tenure. We added nearly 3 million wireless subscribers in the 3rd quarter of which 2 million were postpaid clients, 1.2 million in Brazil, 406,000 in Austria, which includes IoT devices from A1 Digital, 104,000 from Colombia and 93,000 from Mexico. On our prepaid platform, we had net additions of 950,000 clients during this period. Eastern Europe led with 204,000 clients, followed by Brazil with a 193,000, Colombia 173,000, Argentina with 93,000 and Mexico with 81,000.

Rates have continued to go through today.

About to.

Close to reaching 5% 10 year tenure.

Turner.

We added nearly 3 million wireless subscribers in the third quarter of which $2 million were posted clients $1 2 million.

400.

In Austria, which includes.

Yeah.

Iot devices from Ivan this is Doug.

104000 from Colombia, and 93000 from Mexico.

On our prepaid platform, we had net additions of 950000 clients during the period.

Eastern Europe led with 210000 employees, followed by roughly about 193000, Colombia once again 3000, Argentina with 93000 in Mexico at the 1000.

In the fixed line segment, we gained 223,000 broadband accesses with 65,000 each from Argentina and Brazil. Voice lines and PayTV units decreased by 160,000 and 58,000 respectively. At the end of September, our subscriber base totaled 306 million wireless subscribers of which 119 million were postpaid clients. Additionally, we had 73 million fixed line RGUs, which includes 32 million broadband accesses, 13 million PayTV clients and 29 million landlines. Year-on-year, our postpaid base increased 3.7%, prepaid 0.7% and fixed broadband accesses 3.2%, with fixed voicelines falling 2.6% as you can see in this line.

65%, each from Argentina and Brazil.

Both lines compared to the unit to be created by quarter at 50000.

Carson respectively.

At the end of September our subscriber base totaled 350 million wireless subscribers of fluids genre of $19 million with both the flight.

Additionally, we had 73 million fixed <unk>.

<unk>, which includes $32 million robot actresses.

$10 million paid to the clients and 39 million Landlines.

Year on year, our postpaid base increased three 7%.

0.7% fixed broadband DOCSIS, three 2% with fixed voice managed fallen to 6%.

I see this man.

3rd quarter revenue reached MXN204 billion pesos, a 3.3% year-on-year reduction in Mexican peso terms with service revenue falling 4.3% as has been the case throughout several quarters. These figures reflect the appreciation of the Mexican peso versus all the other currencies in our region of operations, reducing the Mexican peso value of our international revenue. At constant exchange rates, service revenue growth expanded 3.8% and EBITDA 5%, which reflects among other things, the effect of tower sales in Mexico and Peru that took place in the period and one-off events in Austria.

Service revenue was 44, 3% as has been the case with our several quarters. These figures reflect the appreciation of the Mexican peso basis all of it Karen if you remember we general operations.

Are you seeing the Mexican peso value of our international revenue.

At constant exchange rates service revenue growth expanded three 8% and EBITDA, 5%.

It reflects among other things the effect of Powershares in Mexico, and Peru that took place in the period and one off events in Australia.

Correcting for these, adjusted EBITDA was up 3.9%, just about the same rate as service revenue as you can see on the slide. On the fixed line platform, service revenue remains on trend, increasing 2.2% year-on-year, having risen from the 0.2% pace seen in the second half of last year. Whereas on the mobile platform it rose 4.8%. Brazil attained a positive fixed-line service revenue growth of 0.1%. In Mexico and Colombia, fixed-line revenue decelerated, remaining stable in Austria and surging in Eastern Europe to 21% and in Central America to 5%. In both cases, it was the most rapid pace in at least one year. The slowdown in Mexico from 5.6% to 3.6% has to do with corporate network services. In fact, broadband revenue actually accelerated to 8.2%, which is its best showing in a decade.

<unk>.

On the fixed line platform.

<unk> revenue remains on trend, increasing two 2% year on year, having recent from the 0.2% facing in the second half of last year.

Whereas on the mobile platform <unk> growth of 8%.

Brazil obtained a positive presents a return to growth or <unk>, 1%.

In Mexico, and Colombia fixed line revenue decelerated remaining stable in Austria, and eastern Europe to 31% and in Central America, two 5% in both cases it was the most rapid pace and at least one year.

The slowdown in Mexico from five 3% to three 6% has to do with corporate network services. In fact, both on revenue actually accelerated to eight 2%, which you should expect showing in a decade.

In several countries--Brazil, Peru, Colombia, and Central America--we had among the highest, if not the highest, net broadband additions in the past three years. Others, including Mexico, Austria, Peru and Central America posted their most rapid broadband revenue growth in at least one year, as can be seen in the chart. Brazil and Eastern Europe sustaining strong growth rates. This to our consolidated broadband revenue expanding at the fastest rate in more than two years, which was 6.4%.

<unk> ambition is.

The past three years August during next year will start, but we wont get America, mostly.

At the most rapid growth and revenue growth in at least one year as can be seen in the check with Brazil, and eastern Europe sustaining strong growth rates.

<unk> to our consolidated broadband revenue were expanding at the fastest rate in more than two years, which was six 4%.

Yeah.

On the mobile platform, revenue decelerated in Mexico from 6.4% to 4.6%, picked up in Central America to 9.5% to 8.8%, with Brazil's adjusting to a normal pace after a [inaudible] following the incorporation of Oi mobile clients during the 2nd quarter of 2022. Something that you can see here in the slide. But going back to [inaudible], it's important to note that revenue from corporate network services has been gaining share within our revenue base. This quarter it became the second most important revenue line within the fixed-line platform after broadband services, with the consolidated figure rising 6.5%. It already accounts for 19% of fixed-line services overall, with this share reaching 39% in Austria, 30% in eastern Europe and 25% in Mexico.

It's 100% with trustees have jumped into a normal pace after a hump.

Following the incorporation of Formula where clients during the second quarter of 2020 something.

Something that you can see here in <unk>.

But going back to 50 50 important to note.

But revenue from corporate network services has been gaining share within our revenue base.

This quarter it became the second most important revenue line within the <unk> platform. After bolt on services will be consolidated for you license 6.5%.

You'd already accounts for 19% of fixed line services are already.

With this year, reaching 39% in Austria, and 30% in eastern Europe , and 25% in Mexico.

Our operating profit stood at MXN41.5 billion pesos in the quarter, a 6.7% year-on-year reduction in Mexican peso terms which partly stems from the EBITDA decline mentioned before but also from a 17% increase in depreciation of rights of use associated with tower leases. Most of this effect has to do with successful renegotiation a year before of certain lease agreements in Brazil that reduced Claro's obligations of our company.

Basically.

Basically in the quarter, a six 7% year on year reduction in Mexican peso terms.

Partly stems from the EBITDA that Glenn mentioned before but also from a 17% increase in depreciation of Brexit the us associated with our leases.

Most of this effect has to do with success.

Negotiation, a year before or certain lease agreements industry that reduced collateral division of our company.

Our comprehensive financing costs totaled MXN30 billion pesos, including an MXN8.8 billion pesos net interest expense, which was 3.9% lower than that registered a year before. Under other financial expenses, there is a MXN4.7 billion pesos purchase charge associated with the partial impairment of our stake in Claro Chile, our joint venture with Liberty Latin America pursuant to the fair value of the new JV under ISRF rules that will be refunded within a year after its closing. Finally, our comprehensive financing costs also include a MXN12 billion peso foreign exchange loss in this quarter, resulting principally from a 3.8% depreciation of the Mexican peso versus the dollar in the 3rd quarter.

30 billion pesos, including an $8 8 billion peso net interest expense, which left to four 9% lower than that registered a year before.

Other financial expenses, there is a $4 7 billion purchase charge associated with the partial impairment of our stake in <unk>, our joint venture with Liberty Latin America pursuant to a fair value of the new JV switch on the ISI as roof that will be refunded within a year after its closing.

Finally, our comprehensive financing costs also include a $12 billion based on foreign exchange losses, this quarter, resulting principally from our three 8% depreciation of the Mexican peso basically before the third quarter.

Net income amounted to MXN2 billion pesos, it was equivalent to 3 peso cents per share or 4 dollar cents per ADR. Year to date, our net income totaled MXN58 billion pesos. Through September, our net income totaled MXN58 billion pesos, 2.9% lower than that raised a year before. Capital expenditures came in at MXN100 billion pesos in the nine months to September whereas distributions to shareholders reached MXN24 billion pesos. This includes share buybacks in the amount of MXN7.7 billion pesos and dividends of MXN16 billion and were partly funded by MXN3.7 billion pesos in dividend income. To cover all of these expenditures, but also labor obligations in the amount of MXN10 billion pesos, we resorted to our operating cash flow of MXN115 billion pesos and to net financing in the amount of MXN12 billion pesos in the period. With MXN5 billion pesos coming in, mostly from the payment of an earn out on the [inaudible] platform. As of September, our net debt excluding lease totaled MXN389.7 billion pesos and was equivalent to 1.43 times Last Twelve Month EBITDA. As you can see here on the chart, it was a fairly flat figure. It's MXN8.3 billion pesos higher than than the figure at the end of December.

<unk> per share for the restaurant behavior year to date.

Our net income totaled 58 billion pesos.

Through September our net income totaled 58 billion pesos to four 9% lower than that raised a year before.

Capital expenditures came in at <unk>.

<unk> billion pesos in the nine months to September where distributions to shareholders reached 34 billion pesos.

This includes share buybacks and get them onto seven 7 billion pesos and dividends of 16 billion worth.

Partly funded by $3 7 billion visits in dividend income.

To cover all of these expenditures. But also labor obligations in the amount of 10 billion pesos. Further to our operating cash flow. 10 billion pesos and to net financing in the amount of 12 billion pesos in the quarter in the period with 5 billion appraisals coming in mostly from the payment of an earn out on the 30th correctly. As of September our net debt excluding lease historic. 292 billion pesos equivalent to one four times.

But also labor obligations in the amount of 10 billion pesos.

Further to our operating cash flow.

10 billion pesos and to net financing in the amount of 12 billion pesos in the quarter in the period with 5 billion appraisals coming in mostly from the payment of an earn out on the 30th correctly.

As of September our net debt excluding lease historic.

292 billion pesos equivalent to one four times.

Leftover mosquito.

As you can see here on the Cherokee.

Fairly flat.

This ratio is Russia.

It's 1 billion peso rather than sit here at the end of vision.

Okay, well thank you. I would probably flow back to the EMEA region for the Q&A session. Thank you Carlos.

Okay, well thank you. I would probably throw back to Daniel for the Q&A session.

I would probably flow back to the EMEA region for the Q&A session. Thank you Carlos.

Daniel Hajj Aboumrad - CEO: Thank you Carlos. We're going to start.

We're going to start.

Operator: Thank you. As a reminder, if anyone would like to register a question, please press star followed by 1 on your telephone keypad. When it's your turn to ask a question, please ensure you're [inaudible]. If you would like to withdraw your question, please press star followed by 2. So that's star followed by 1 on your telephone keypad to register a question.

Reminder, if anyone would like to register a question. Please press star followed by one on your telephone keypad.

You'll tend to ask a question. Please ensure you Amit.

If you would like to withdraw your question. Please press star followed by Jay.

That stall, but by one on your telephone keypad to register a question.

Our first question today comes from Vitor Tomita from Goldman Sachs. Vitor, please go ahead. Your line is open.

Vitor Tomita - Equity Research VP, Goldman Sachs: Hello, good morning all and thanks for taking our questions. Two questions from our side. The first one is on capital allocation. Given you are a healthy leverage position and cash flows even considering your increased CapEx budget, do you have any plans to, in any way, further increase cash deployments? So maybe by further increasing CapEx on [inaudible] or by further increasing equity stakes in specific businesses as you did in Austria or by carrying out further M&A or even by increasing buybacks following the recent decline in share prices and seeing that you're already seen drive increase buybacks a bit on the third quarter.

So maybe by far they are increasing capex on fiber or by further increasing equity stakes in specific businesses as you did in Austria or by carrying out further M&A or even by increasing buybacks. Following the recent decline in the share prices and seen that you're already seeing drive increased buybacks are based on the third quarter.

The second question from our side would be on corporate networks. You highlighted that there was an increase in [inaudible] soft corporate networks in your global revenue mix, could you give us a bit more color on which types of corporate offerings have been driving that growth and on what their economics and margin profile is like compared to their more traditional consumer focus to telecom offerings. Thank you very much.

All is like compared to their more traditional consumer focus to telecom offerings. Thank you very much.

Carlos Garcia Moreno - CFO: Thank you Vitor. Well on the allocation of resources, there is certainly nothing we're looking at on the M&A front as we have mentioned before. I think we're not looking at increasing more our CapEx, it's just under a year. And I think we will make some comments later regarding our budget for next year. But as we got the distributions, as you point out we have been accelerating our buybacks. I've been reiterating on various calls that our free cash flow is very cyclical and we basically tend to get most of our free cash flow in the last 3, 4 months of the year. So that's typically when we would want to increase our share buybacks. If you look at the distribution of our share buyback so far this year, we spent about $100 million US in the first quarter, $50 million in the second quarter, $272 million in the third quarter and so far this month we've increased an addition of $70 million. So basically $350 million between the end of June and so far in October still to go. Already, in addition to this, we have already paid $200 million US on dividends and we have another payment of the same magnitude that we will be effecting in the middle of November. So again, we can say something on CapEx budget for next year.

Well on the <unk>.

Allocation of resources. There is certainly nothing we're looking at on the M&A front as we have mentioned before I think we're not looking at increasing more our capex just under a year.

And I think we will make some comments later regarding our budget for next year.

But as we got the.

Distributions.

As you point out we have been.

In accelerating our our buybacks.

Right. There is various caused that free cash flow is very cyclical.

And we basically tend to get most of our free cash flow.

Indeed.

Three four months of the year. So that's typically when we would want to increase our share buybacks. If you look at.

The distribution of our share buyback so far this year, we spent about $100 million U S.

In the first quarter and $50 million in the second quarter 272 million in the third quarter.

So far this month.

Uh huh.

<unk> increased an addition of $70 million or basically $350 million between.

End of <unk>.

June .

So far in October .

Already, in addition to this, we have already paid $200 million US of dividends and we have another payment of the same magnitude that we would be effecting in the middle of November but, so again, we can say something on CapEx budget for next year. I can. What we discussed and we have been taking in the lab. Year is that we have a budget of 24 billion for three years, that's 'twenty three 'twenty two 'twenty three 'twenty four and so we are on that but that we increase a little bit. The capex. This year. We haven't finished our budget for next year, but I think we are going. To accomplish with that so. But we increased this year, maybe we're going to reduce debt next year. So that's model is what we're thinking we don't have anything extra on capex.

Already, in addition to this, we have already paid $200 million US of dividends and we have another payment of the same magnitude that we would be effecting in the middle of November but, so again, we can say something on CapEx budget for next year.

Field Tubal ugly.

We have already paid 100 million U S or dividends.

And we have another payment of the same magnitude that we would be affecting individuals November but.

So again.

Can say something on.

Daniel Hajj Aboumrad - CEO: I can. What we discussed and we have been saying in the past year is that we have a budget of 24 billion for three years. That's '22, '23 and '24 and so we are on that budget, we increase a little bit the CapEx this year. We haven't finished our budget for next year, but I think we are going to accomplish with that so. But we increased this year, maybe we're going to reduce that the next year. So that model is what we're thinking we don't have anything extra on CapEx for 2024. So we are on budget and we think we can do that. On the corporate networks, I think that's a segment that we're doing well, we're increasing in all the countries and Oscar can talk a little bit about what are the new products and the products, what we're looking is to have and to manage the networks of the customers and that's more or less what we're aiming for and Oscar can tell you a little bit more than that.

Capex budget for next year.

I can.

What we discussed and we have been taking in the lab.

Year is that we have a budget of 24 billion for three years, that's 'twenty three 'twenty two 'twenty three 'twenty four and so we are on that but that we increase a little bit. The capex. This year. We haven't finished our budget for next year, but I think we are going.

To accomplish with that so.

But we increased this year, maybe we're going to reduce debt next year. So that's model is what we're thinking we don't have anything extra on capex.

For 2024, so we are on budget and we think we can do with ethanol on the corporate networks I think that Thats a segment that we're.

We're doing well, we're increasing in all the countries and Oscar can talk a little bit about what are the new products and the products.

Looking is to have them to manage their networks of the customers and that's more or less what we're aiming for an Oscar.

And tell you a little bit more than that.

Oscar Von Hauske Solís - COO: Yes, thank you. And then as you say, first step is kind of, we manage the network of the customers and there is the SD-WAN technology that allow us to do this in an easy way. So when we move the customers to SD-WAN, we're trying to renew security cloud services as well, bundle in the services and as well we are offering what we call horizontal solutions. We are selling data lake as a services, we are selling AI as a services in our cloud, we develop what we call cloud broker that we are agnostic-type of cloud that the customer wants, the customer want hyperscaler or one [inaudible] cloud. They have a dashboard that could manage both clouds.

First is that these childhood.

Management in every one of our customers.

SD Wan technology that allow us to movies.

This is wade so when we move the customers to is the one we're trying to team security cloud services as well.

Bundle in the services.

When we are offering what we call a holding sometimes solutions. We are sending data Lake services, we are selling services in our cloud we develop what we call cloud broadcast that we we are agnostic type of cloud that across some new ones.

Question, one is hyper scaler or one or cloud they how about dashboard liquid minus both clouds.

<unk>.

Wait.

And as well, we are getting into the private wireless network. I'm talking about vertical solutions for mining, for retail, for manufacturing as has been well-received in the market, we see a big opportunity in this segment because it improves the efficiency of the customers, brings productivity and you know, we are all on digital transformation and this product support that evolution. We see that market has a very good trend in the near future.

We have received in the market, we see a vehicle opportunity and do you see it in this segment equals improves.

The efficiency of the customers, bringing spread with DVT.

We are all on digital transformation and this frozen support of that evolution.

We see that the market has a better growth trend in the near term.

Multiple: So overall, on summary, we're not offering only the [inaudible] and connectivity [inaudible], broadband or fixed or wireless or prepaid or postpaid. We're offering all these new services to all the B2B customers. Another is, that we are fully convergent so in overall, we are offering as well mobile, fixed altogether to the customers.

We're offering all these new services to all their b to B I know there is that we are fully converted and so in our offering we offer as web mobile and fixed.

Altogether for the customers.

Vitor Tomita - Equity Research VP, Goldman Sachs: Very clear, thank you very much.

Multiple: Okay. Thank you.

Operator: Thank you. Our next question is from Eduardo Rubi from UBS. Eduardo, please go ahead. Your line is open.

Our next question is from Ed.

Edward J B.

Eduardo. Please go ahead your line is open.

Eduardo Rubi - UBS: Hi, everyone. Thank you very much for taking our question. I would like to know if you could provide an update on Mexican regulatory environment, discuss their preparedness, revision [inaudible] and additional regulatory [inaudible] Amex, but you've [inaudible] on the concession given what happened in airports. And another one, if you could discuss also the spectrum prices, if you see any additional risk on the venture.Thank you very much.

I would like to know if you could provide an update on excellent regulatory environment discuss their preparedness.

Their balance revision engineers, and additional regulatory reefer amex, but you've.

On the call fashion, given what happened in airports.

Another one if you could just give us also a spectrum prices.

Youll see an additional risk would that Joe Thank you very much.

Daniel Hajj Aboumrad - CEO: On the regulatory side, I think to make a little case study, we have been having 10 years of having these regulatory measures. 10 years to accomplish all the measures that IFETEL has been putting us. And not too much to say, only I think that we respect and we think that these regulatory measures we choose will last in the future. At the end of the day, what the markets need is investment and what the customers want is quality, price, the coverage that you are send the customary in a good way. So all these things you cannot measure on that so that's what is happening in the last 10 years and I think in Mexico, in a lot of our products, we have the preference of our customers. And we hope that the IFETEL take a very deep revision on what is happening on the market and relax the measures that we have. So that's more or less, we don't know nothing more on that but we hope that we have that.

To make a little case study, we have been having pain years of having these regulatory measures.

Thank you.

10 years to accomplish all the measures that <unk> has been 14 us.

And.

Not too much to say only I think that we have.

Expect and we think that these regulatory measures.

Not in the future.

At the end of the day, what the market's need VC investment.

Yeah.

What the customer wants is quality.

Right.

Yeah.

I call that out.

Do you have and the customary in a good way. So all of these things you cannot.

Both.

Measure some got so that's what is what is happening in the last 10 years and.

I think in Mexico.

Lot of our products. So we have the breadth of our customers.

We hope that that date, but they'll take a very deep revision on what is happening on the market and relax the measures that we have so that's more or less we don't no nothing more on that but we hope that we have that.

Eduardo Rubi - UBS: Sure, that's clear. Thank you very much.

Daniel Hajj Aboumrad - CEO: Thank you.

Operator: Thank you. Our next question is from Walter Piecyk from LightShed. Walter please go ahead, your line is open.

Our next question is from Walter Hi Tech.

Light jet will tell please go ahead your line is open.

Walter Piecyk - LightShed Partners: Thanks. Hey Daniel, if I look at Mexico, obviously you had good unit growth and ARPA was also very strong in '21 and '22. Obviously, maybe somehow the pandemic had some impact on that but this quarter there shows a little moderation there, is that just kind of coming out of the pandemic? Is there economic issues that we need to think about in terms of Mexico, obviously ARPU is still growing, and service revenue is still growing, wireless service revenue specifically. I'm just curious kind of what are your thoughts on some of the moderation of that growth and how we should think about that going into future quarters.

Yes.

Thanks, Hey, Daniel if I look at Mexico.

Obviously, you had good unit growth in ARPA was also very strong in 'twenty, one and 'twenty two obviously maybe.

Somehow the pandemic had some impact on that but.

This quarter there shows a little moderation there or is that just kind of.

Coming out of the pandemic as their economic ish.

<unk> that we need to think about in terms of Mexico, obviously <unk> is still growing.

And service revenue still growing wireless service revenue, specifically I'm, just curious kind of what are your thoughts on some of the moderation of that growth and how we should think about that going into future quarters.

Daniel Hajj Aboumrad - CEO: Well I think what you are saying is right, it's moderation. We're still growing our revenues in Mexico, I think the moderation is more on the prepaid than on the postpaid. So maybe it has to do a little bit with the deceleration of the economy, I don't know, we don't know exactly what we did but I can tell you that we have very good 5g network, good coverage. We're working very hard on control cost platform all around and I think also could be a little bit on the market. Our competitors would be doing some promotions, so I still feel very comfortable on what we're doing in the mobile products and by far we have the best perception to the customers in terms of coverage, quality and price, attendance and digitalization. So all these things will help us a lot on how the customer is taking the decision. As I said the moderation that we're having is more on the prepaid side than on the postpaid side. So that's what we have been seeing. On the peak side [inaudible].

We're still growing.

Our our revenues in Mexico, I think the moderation is more on the prepaid xenon that postpaid. So maybe it has to be a little bit with the acceleration of the economy I don't know, we don't know exactly what we book.

I can tell you that we have.

Very good <unk> network would call there.

We're working very hard on.

Controlling cost platform all around.

I think also could be a little meat on the market no our competitors would be. Doing some from. Promotions saw. I still feel very comfortable on what we're doing in the. Yeah. Mobile. The products and. By far we have. And the best first section two big customers in terms of call there Thats why lithium price. As Ben said Digitalisation. So all these things will help us a lot on how the customer is taking the decision. <unk> said that the. Moderation that we're having is more on the prepaid side than on the postpaid side. So all of that. What we have been seeing. On the peak value.

Doing some from.

Promotions saw.

I still feel very comfortable on what we're doing in the.

Yeah.

Mobile.

The products and.

By far we have.

And the best first section two big customers in terms of call there Thats why lithium price.

As Ben said Digitalisation. So all these things will help us a lot on how the customer is taking the decision.

<unk> said that the.

Moderation that we're having is more on the prepaid side than on the postpaid side. So all of that.

What we have been seeing.

On the peak value.

Carlos Garcia Moreno - CFO: Just to add something, Walter. ARPU growth in Mexico was 1.5% year-on-year. But if you look at postpaid, it was actually stronger, it was 3.1% or [inaudible] a little bit more into the prepaid side. And the point is that it remains quite firm was very different from what we have seen anybody [inaudible].

Sure.

Growth in Mexico up to one 5% a.

Year on year.

And but if you look at postpaid is actually stronger with a triple 1% or excuse me Latam is that the motivation for a little bit more into <unk>.

I think the point that it remains quite firm with very different from what we have seen anybody holders.

And you said also and you think.

Walter Piecyk - LightShed Partners: And Daniel, you said that you think if you just looked at prepaid, you think that might be more the promotions the competitors may be impacting prepaid than necessarily some sign of the economy reducing the usage of some of those yep.

Promotions of our competitors may be impacting prepaid than necessarily some sign of.

The economy, reducing the usage of some of those yes.

Daniel Hajj Aboumrad - CEO: Yes, I think so. That's what I think, yes.

Walter Piecyk - LightShed Partners: Okay. Just a similar question, if you look at the equipment revenue line, that actually looked stronger. Meaning, like if you do the math on it looks like maybe people in Mexico are buying more expensive phones. Is there anything you can tell I mean, because that would suggest that the economy is pretty good, that people are buying or upgrading phones. Just curious on any thoughts you have on your equipment revenue line and why that might show some decent growth.

Just a similar question if you look at the equipment revenue line that actually looked.

Stronger, meaning like if you do the math on it looks like maybe people in Mexico are buying more expensive phones is there anything you can tell I mean, because that would just that would suggest that the economy is pretty good that people are buying or upgrading fallen. So just curious on any thoughts you have on your equipment revenue line.

And why that might show decent growth.

Daniel Hajj Aboumrad - CEO: I think on the equipment revenue, we're doing good. What is happening is not only Telcel, the ones. I think we have been having a lot of imports of handsets and this has been decelerating a little bit. Some brands does not like, let's say Samsung does not like that Samsung phones will gain not through their office in Mexico, through other countries. So I think that's a little bit on that and I think they are cutting and reducing these imports. So that's why you are seeing that there is more sales on equipment each month.

Think on the equipment revenue while doing good.

What is happening is not only sell the ones I think we have been having a lot of imports.

Yeah.

Handset and this has been decelerating a little bit.

Some brands does not like light, let's say Samsung does not like that Samsung phones will gain not the rule the RPC in Mexico through other countries. So I think thats a little bit.

On that 19, they are cutting.

And reducing imports. So thats why you are seeing that there is more cadence on <unk>.

Equipment each.

Each month.

Yes.

Walter Piecyk - LightShed Partners: Got it. And then just one final question. There's a line on the cash flow statement that I believe you call payments of lease liabilities. This is where some of the payments, I think, primarily two tower companies exist. I'm just curious how we should think about that going forward. Are there normal escalators that should take that, for this quarter I think the number was MXN9.7 billion pesos. So I'm just curious if that line item on the cash flow statement, is that something that should should grow at a similar rate that it has in recent years,  I think it's about 10% or is there any opportunity to moderate as you've kind of completed a lot of the 5G deployments in a lot of these markets.

But I believe you call payment of lease liabilities. This is where some of the payments I think primarily two tower companies.

So im just curious.

How we should think about that going forward or are there normal escalators that should that should take that for this quarter I think the number was $9 7 billion.

Pesos.

So I'm just curious if thats that line item on the cash flow statement is that something that should should grow at a similar rate than it has in recent years, but I think it's about 10% or is there any opportunity to moderate as you've kind of completed a lot of the <unk> deployment.

A lot of these markets.

Daniel Hajj Aboumrad - CEO: I think you're right. I don't think in 5G we're gonna need the same amount of towers that we need in 3 or 4G. The new towers should be more on coverage than on capacity and that's more or less what we have been seeing, so I think that will moderate in the future.

I don't think in <unk> will not need the same amount of hours that we need in three or four key.

The new power should be more on <unk> than on capacity.

That's more or less what we have been seeing so I think that will moderate in the future.

Walter Piecyk - LightShed Partners: Great. Thank you very much.

Daniel Hajj Aboumrad - CEO: Thank you.

Operator: Thank you. Our next question today comes from Marcelo Santos from JP Morgan. Marcelo please go ahead, your line is open.

Our next question today comes from Marcelo Santos from JP Morgan.

Please go ahead your line is open.

Marcelo Peev dos Santos - JPMorgan Chase & Co, Research Division: Hi, good morning. Thanks for taking my questions, I have two. The first question is about Colombia, if you could please comment on the competitive environment on the fixed set market. We saw that you started adding broadband subscribers again so it was a very strong result, so a comment there would be very helpful. And the second question is, if you could provide us an update on the joint venture.with Liberty Latin America and Chile, and the outlook on potential capital injections that operation might need. Thank you very much.

Liberty, Latin America, and Chile, and the outlook on potential capital injections that operation might need. Thank you very much.

Sure. Okay.

Okay.

Carlos Garcia Moreno - CFO: As you mentioned in Colombia program [inaudible] pretty good. What we did is that we really changed the way that we go to the market. We did that [inaudible] focus in the areas that we have a lot of competition, so we just start to winning shares on those areas. We upgraded the network and as you know, we are building fiber as well in Colombia. So we believe that fixed wireless is a trend that we are going to see in the next quarters in fixed broadband and as well we group all the quality of services to the customers, time to deliver, time to repair. So we really focus on the third quarter to really change all the structure to go to market for fixed programming in Colombia.

Florida.

Pretty good what we did is that we really changed the way that we go through the market.

We did that.

300, <unk> focus in the areas that we have a lot of competition. So we just start to winning.

Sure on most in most areas.

Upgrade the network and as you know we are building fiber as well.

Colombia, So we believe that <unk>.

Is there a trend that we are going to see in the next quarters.

Fixed broadband and as well we group all the quality of services to the customers time to delivery time to repair. So we would really focus on the third quarter to really change all the structure to go to market for fixed programming in Colombia.

Daniel Hajj Aboumrad - CEO: And on Chile, well I think Chile is a very important market for us. We have a program, synergy program since we get together with Liberty and we're doing well, we're advancing our synergies and our revenues and sales are going much better. So we think that we're going to really focus on creating value on Chile, and that's more or less we still think that Liberty will be our partner in the future. We hope so, it's a very good partner and we're focusing to really get everything, all the cost control, reducing expenses and moving in the market. We're also putting more coverage, better quality and we're really focusing in making Chile a much stronger company for the future. So that's more or less what we're doing there.

Good for us.

Yeah.

We have a program.

<unk> hundred 80 program since we get together with the Liberty and we're doing well we're advancing.

Our <unk> an hour.

Revenues on sales are going much better. So we think that we're going to that.

Really focus on creating value on Chile, and that's more or less we.

Think that Liberty will be our partner in the future. We hope so it's a very good partner and.

And we're focusing to really get everything all the cost controls reducing expenses.

Moving in the market. We're also putting more club that I said.

Better quality and.

We're really focusing in making too much.

A stronger company for the future, so that's more or less.

What we.

And what we're doing there.

Marcelo Peev dos Santos - JPMorgan Chase & Co, Research Division: So could we say that it's on track, you think it's on track or is above expectations versus what you hope?

It's on track or is above expectations versus what you hope.

Daniel Hajj Aboumrad - CEO: I think we're on track. We don't have a synergy program for six months, I think we have a synergy program for two years. Very strong, very focused and we're on track and we are doing very well. We are happy the way the company's volume. We are growing, we have been losing some customers in peaks, in the last quarter we are growing and customers saw we are improving and improving and improving every day.

We don't have a synergy program for six months I think we have a synergy program for two years very strong driving both of those.

And we are on track and we are doing very well. We are we are happy the way the.

The company's volume.

Okay.

We are growing we have been losing some customers seen peaks in the last quarter, we are growing.

Yeah.

Customers saw.

Improving and improving and improving every day.

Marcelo Peev dos Santos - JPMorgan Chase & Co, Research Division: Great. Thank you very much.

Oscar Von Hauske Solís - COO: Thank you.

Yeah.

Operator: Thank you. Our next question is from John Ho from Mizuho. John please go ahead, your line is open.

John Ho - Mizuho: Hey, good morning and thank you for taking my question. Just to get further clarification on the previous regarding the joint venture in Chile, has America Movil contributed any more capital during third quarter for the Chile operations? And then one thing to note, the joint venture partner Liberty did admit on its Q2 call that America Movil has been making most of the contributions to date, are we to expect that going forward? And more from the perspective of America Movil's plans right now, I know you mentioned that your previous statements or that you said the JV is 50-50 and you're like Liberty, but considering America Movil has been making most of the contributions and what you've been doing, would you look to assume control in the future, would that be a possibility and lastly, would it be possible to get the Chilean JV's management, maybe increase communication regarding what's going on there because for bondholders, since the JV has been closed last October communication's been low so we'd like to see an increase if we can get it, if possible. Thank you.

Have you has American mobile contributed any more capital during third quarter for.

For the Chile operations and then.

One thing to note.

The joint venture partner Liberty did admit on its <unk> call that American mobile has been making most of the contributions to date are we'd expect that going forward.

And more from the perspective of American Mobiles plans right now that I know you mentioned in your.

Previous statements or that you said the JV is 50, 50, and you're like Liberty, but considering American mobile has been making most of the contributions and what you've been doing.

Would you look to assume control in the future would that be a possibility and lastly.

Would it be possible to get the Chilean Jv's management, maybe increase communication.

Regarding what's going on there because since for bondholders since.

The JV has been closed last October .

Communication has been very well.

Low so we'd like to see an increase if there is if we can get it if possible. Thank you.

Carlos Garcia Moreno - CFO: Thank you. Let me begin with the last part of your [inaudible] question. I think we've heard some of these comments to the effect that maybe the company should improve a little bit with the [inaudible] that it provides to the market. We are already talking to the partners whether we can see to it that from here now on we can provide a bit more color than is strictly necessarily from the perspective of the guidelines of the bonds. But we could provide a bit more color on the operations themselves. Okay. So I think we will be turning to your comments on those of all investors to make sure that you have a clearer view of the developments of the Chilean operation, okay?

The last part of your performance of lithium.

I think we've.

Could some of these comments to the effect that maybe the company should improve.

This is a reality that it provides to the market.

We are already talking to the partners.

Whether we can tweak that from now on we can provide a bit more column that is strictly necessarily from the from the perspective of the of the.

Lots of the bonds.

But we could provide a bit more color on the on the operation of themselves. Okay. So I think we will do.

Turning to your comments on those <unk>.

Investors to make sure that you have.

Have a clearer view of the development of the Chilean operation.

John Ho - Mizuho: We would appreciate that and I thank you for that.

Okay.

So I would expect that probably before the end of this month, we can provide the financial statements for through September and that in the context of this release, that we can provide also more color, more information on the actual operations. In terms of the, I think it's very important what Daniel mentioned the effect that you know, this is a 50-50 joint venture and the partners needed to agree on a business plan which we do that at the beginning of the year, the business plan I mentioned is not for a year, it's a medium-term business plan. And we are focused on executing on it. I think the execution has been fine. Daniel mentioned on the operational side, it's very clear we are beginning to get some of the synergies that we expected first quarter. Even first half of the year there were some one-offs because when you get these companies together there is always one-off expenses, there's people that lead the company etc. Most of that is really behind us. So I'd say that in agreeing on a business plan, we have also agreed on what it takes to execute this business plan and that also requires some funding so we have put in place the appropriate mechanism that should see to it that the company gets the funding remix in the time that is required.

Carlos Garcia Moreno - CFO: So I would expect that probably before the end of this month, we can provide the financial statements for through September and that in the context of this release, that we can provide also more color, more information on the actual operations. In terms of the, I think it's very important what Daniel mentioned the effect that you know, this is a 50-50 joint venture and the partners needed to agree on a business plan which we do that at the beginning of the year, the business plan I mentioned is not for a year, it's a medium-term business plan. And we are focused on executing on it. I think the execution has been fine. Daniel mentioned on the operational side, it's very clear we are beginning to get some of the synergies that we expected first quarter. Even first half of the year there were some one-offs because when you get these companies together there is always one-off expenses, there's people that lead the company etc. Most of that is really behind us.

I would expect that probably before the end of this month.

We can provide the financial statements for the.

Through September .

And in the context of these release that we can provide also more Colorado more information on the actual operations.

In terms of the.

I think it's very important.

And you mentioned the effect there.

This is a 50 50 joint venture.

<unk> partners needed to agree on that on our business plan.

We do that at the beginning of the year.

The business plan.

There is not for a year.

Medium term business plan.

And we are focused on.

On executing on it.

I think the execution has been having.

Fine.

Sure.

And you had mentioned. On the operational side, it's very clear we are beginning to get some of the synergies that we expected first quarter. In the first half of the year there were some one off because of the when you get these companies together there is always a one off expenses is people that lead the company to separate them. Most of that. Most of that is really behind us. So I'd say that. Agreeing. Our business plan. We have also agreed on what it takes to execute this business plan.

On the operational side, it's very clear we are beginning to get some of the synergies that we expected first quarter.

In the first half of the year there were some one off because of the when you get these companies together there is always a one off expenses is people that lead the company to separate them.

Most of that.

So I'd say that in agreeing on a business plan, we have also agreed on what it takes to execute this business plan and that also requires some funding so we have put in place the appropriate mechanism that should see to it that the company gets the funding remix in the time that is required. That's basically what we have, okay. At this time, it's only mechanisms provide for these, for financing throughout the period. At some point, we at this point have not envisioned any change in stakeholdings and there have not been any change as of today on many of the stakeholdings. So that's how we'll continue to do that.

Most of that is really behind us.

So I'd say that.

Agreeing.

Our business plan. We have also agreed on what it takes to execute this business plan.

It requires also some some funding so we have put in place the appropriate mechanism that should see to it that the company gets the funding remix in the time that is required.

That's basically what we have, okay. At this time, it's only mechanisms provide for these, for financing throughout the period. At some point, we at this point have not envisioned any change in stakeholdings and there have not been any change as of today on many of the stakeholdings. So that's how we'll continue to do that. One more thing on <unk>.

That's basically what we have, okay. At this time, it's only mechanisms provide for these, for financing throughout the period. At some point, we at this point have not envisioned any change in stakeholdings and there have not been any change as of today on many of the stakeholdings. So that's how we'll continue to do that.

Mechanisms provide for these.

For financing throughout the period at some point.

We at some point at this point have not envisioned any change in in stock holdings.

And this has not been any change as of today.

So how do we continue to do that.

Daniel Hajj Aboumrad - CEO: One more thing on Chile. I think I haven't mentioned that we're very happy at America Movil with the management that we have there, as Carlos said, we have to do a structure and to take out some people and put other ones, but right now we feel that the management that we have there is in place working and focusing on executing that. So that's also something that we are happy on that.

One more thing on <unk>.

I think.

Having mentioned that book.

Already booked.

We're very happy in America mobile with the management that we have there as Carlos said, we have to do a structure and to take out some people on other ones, but right now we feel that the management that we have in place working on focusing on executing that so thats also.

Something that we.

We are happy on that now.

John Ho - Mizuho: Has there been any other further capital in the 3Q results for America Movil to VTR, I mean to the joint venture?

Carlos Garcia Moreno - CFO: There hasn't been any capital raise at the level of VTR so there's [inaudible] the equity provided. And as I've said and I don't think we can go beyond that, I think there has been financing mechanism that have been put in place to ensure that the company gets the funding required to execute the business plan. That's it. At this point we're not envisioning any capital contributions.

Any capital raise at the level of BPI.

The equity provided.

And as I've said and I don't think we can go beyond that I think there has been.

Financing.

There have been put in place to ensure that the company gets the funding required to execute the business plan.

Okay.

At this point that we're not envisioning any capital contributions.

John Ho - Mizuho: Okay. Thank you.

Carlos Garcia Moreno - CFO: Thank you.

Operator: Thank you. Our next question is from Soomit Datta from New Street Research. Soomit please go ahead, your line is open.

Next question is from Sumit Datta from New Street Research. Please go ahead. Your line is open.

Soomit Datta - New Street Research: Yes, hi guys. A couple for me please. One, just on the group prospects for service revenue and in EBITDA, your medium-term guidance, so your '22-'24 guidance has seen EBITDA running ahead of service revenues [inaudible] I think it is 46% versus 2.5% to 4%. So service revenues and EBITDA run rate is similar today. I just wanted to, do you still see the opportunity essentially for margin expansion, do you see the opportunity for EBITDA run rate to come in ahead of service revenues as we look forward, that's the first question please.

A couple for me please.

Just on the.

Prospects for service revenue.

And EBITDA at your medium term guidance, so youll 'twenty to 'twenty four guidance has seen EBITDA running ahead of service revenues because I think it is.

46%.

2.5% to 4% So service revenues and EBITDA run rate is similar today I just wanted to do you still see the opportunity.

Essentially for margin expansion do you see the opportunity for EBITDA run rate to come in ahead of.

Service revenues as we look forward that's the first question. Please.

Second of all if I could on Mexico, I think you have been resistant to increasing prices over the last few quarters. I just wondered how you're looking into 2024, do you still think that's the right strategy or is there room to consider lifting prices or do market conditions not allow for that? Thank you very much.

Resistance to increasing prices.

Over the last few quarters.

I just wondered how youre looking.

Into 2024 do you still think Thats the right strategy always that we are going to come.

Consider lifting prices or do market conditions allow for that thank you very much.

Dan: On the first question, I think the revenues that we're having, the service revenues that we are having are running at, Carlos said, 3.9%, 3.8% and the EBITDA is going and increasing 3.9% taking all of that the one-offs and everything. So I think we have a very good platform, we're very focused on controlling cost and expenses. In every country is a little bit different, in every country you have managed to increase a little bit and pass through the inflation to some prices, to some segments and other ones no, we can't. We haven't gone back but in every country, we have a big platform, we're controlling costs, controlling expenses and digitalize more, reducing people. So we have a very focused controlling cost strategy on the company, so that's something. And in countries where competition allow us to do that then we can pass through a little bit on that.

On the first question I think the revenues.

That with adding the service revenues that we are having I running Carlos says three 9% to 8% and the EBITDA is going.

Increasing three 9% they can all of that the one offs and everything so I think we have a very good platform. We're very focused on controlling cost and expenses in every country is a little bit different in every country.

You have managed.

Managed to increase a little bit.

The pass through.

Inflation to some prices to some segments and other ones no.

We can.

We haven't gone back and.

But in every country, we have a big platform.

Controlling costs controlling expenses and digitalize more reducing people. So we have a very focused.

Controlling cost.

Yeah. Yeah. Gladly.

Yeah.

Gladly.

On the company, so thats something thats in.

In countries, where competition allow us to do that then we can pass through a little bit on that.

The second question, can you repeat that? It was a question on Mexico.

The second question, can you repeat that?

Soomit Datta - New Street Research: It was a question on Mexico, on the similar theme price increases. I just wondered how you're looking at the outlook for potential price increases. On the fixed side, we know your competitors have moved up prices and you have not. I just wanted, broadly across wireless and fixed, do you see the opportunity to increase prices at all in Mexico?

It was it was a question on Mexico.

On the similar theme price increases I, just wondered how youre looking.

The outlook for potential price increases on the fixed side, we know your competitors have moved up prices.

You have not I just wanted to be.

Broadly across wireless and fixed do you see the opportunity to increase prices in Mexico.

Well. We still don't know at this time, we are not thinking to increase prices at this moment and we are focusing, we are putting a lot of fiber, I think we have 60 million home passes on fiber and giving to all our customers the chance to move from copper to fiber and have new customers with fiber. So we are focusing. We have 76% of our customers connected with fiber and we're going to follow that so I don't know, I cannot tell you what we're going to do in '24 but until the end of this year, we haven't had any [inaudible] increase in price in all this year.

We still don't know at this time, we are not thinking to increase prices at this moment and we are focusing we are putting a lot of fiber I think we've got 60 million.

Home faster on fiber and on the.

<unk>.

Giving to all our customers the chance to move from copper to fiber and have new customers with fiber. So we are focusing.

Yes.

We've got 76, 4% of our customers on net debt with fiber and we're going to follow that so.

No I cannot tell you what we're going to have to win 24 both.

At the end of this year, we haven't had any.

Yeah. Okay. These for the fix. Is that an increase any price at all this year.

Okay.

These for the fix.

Is that an increase any price at all this year.

Soomit Datta - New Street Research: Okay. Thank you.

Daniel Hajj Aboumrad - CEO: Thank you.

Another question.

Hello.

Thank you.

Operator: Apologies, I was muted. We have a question from Cesar Medina from Morgan Stanley. Cesar please go ahead, your line is open.

Have a question from Joseph Medina from Morgan Stanley . Please go ahead. Your line is open.

Cesar Medina - Morgan Stanley, Research Division: Great. Thank you so much for taking my question, I have two related questions. The first one is, what is your read on the stock performance today after the [inaudible] down 6% and then related to that, if I hear all the commentary around it seems the following [inaudible] is going well, you have room for margin expansion, Capex is on a positive trend if not lower so is there room to increase or like to start a discussion of increasing shareholder remuneration given that 2-year yields are like north of 5%. Thank you.

What is your read on the stock performance today after the printing down 6% and then related to that.

If I hear all the commentary.

Around it seems the volume recoveries revenue going well you have room for margin expansion Capex is on a positive trend if not lower.

Is there room to increase or like to startup discussion of increasing shareholder remuneration given that to your yield target like north of 5%.

Thank you.

Carlos Garcia Moreno - CFO: Okay Cesar, you're asking for questions of how do we think about that. And I'll tell you what I think. I think there is a lot of stress today in the market as you'll see. 10-year interest rates have been climbing sharply the last couple of days. They are now, last time I saw, at 4.90% that's the highest level they've been. And since all of these are [inaudible] expected to rise, so they are now close to 5%. This, in spite of the Fed's having, they saying they probably didn't need to raise rates once again, because the market wasn't going to work for them. So my read is that there is a lot of stress in the market that means that it's risk off and when people want to go to de-risk, often they sell what is liquid. And I don't think, that you know, sometimes make it more utilized as a proxy for all the things given the liquidity, that's my take. And it has less to do with the actual results, it has more to do with the move to de-risk given the stretch in the market.

Well youre asking four questions of how do we think none of us. And I'll tell you what I think.

And I'll tell you what I think.

I think.

There is a lot of stress today in the market as you'll see.

10 year interest rates are.

<unk> have been climbing sharply.

David a couple of days.

Now last time I saw at 490 <unk>.

The highest level they've been.

And.

Since our all of these.

Basically for with.

As a.

Started to rise so they are now close to 5%. This in spite of the fed's having.

Uh huh.

Been saying before.

They probably didn't need to raise rates.

Once again, because the market was going to work for them.

So.

My read is that there is a lot of stress in the market that means that.

It's <unk>.

This cough.

And.

When people want to go to the risk often does sell product.

While this liquid.

And I don't think.

Sometimes maybe a more utilized as a proxy for all of the things given the liquidity.

<unk> underpins it has less to do with the actual results have more to do with the move to the risk didnt split into market.

Daniel Hajj Aboumrad - CEO: In my view I think, as Carlos says, he said his view, my view is that the results were consistent with what the market thinks. I think the fundamentals are okay and the business in America Movil is growing and it's okay. So that's my view.

<unk> My view is that.

The results were consistent with what the market thinks.

I think the fundamentals are okay and the business in America mobile is growing and it's okay. So.

That's my view.

Cesar Medina - Morgan Stanley, Research Division: I'm with you, so this is why I was just flagging, you know, if you look at margin trend, revenue trend, is there scope for you to evaluate perhaps increase in shareholder remuneration?

And when you look at the margin trend revenue trends is there scope for you to evaluate perhaps increase in shareholder remuneration.

Yes.

Carlos Garcia Moreno - CFO: So I think that's takes us back to one of the prior question and so we were saying we typically tend to pace with share buybacks, which materializes mostly the last third of the year. I had already said that since the July we have had a significant deployment of resources in share buybacks, we have got since the end of June 'til today $350 million in share buybacks and we're still not done. Another [inaudible] is if we cover another big payment of dividends of $800 million or less in US that will be made in November, But certainly with share buybacks we can continue with them because this is the time when we can get funding [inaudible], we wanted to be and we and the cash flow is coming in and we expect it to.

We typically tend to pace with share buybacks.

Materializes, mostly the last third of the year.

I had already said that since the <unk>.

July we have had a significant deployment of.

Of resources through share buybacks, and we have got a.

Since the end of June feel today $350 million in share buybacks.

And we're still not done.

Another lever if you recover the payment of dividends of 200 million or less than U S and will be made in November , but certainly with share buybacks.

We can continue with them because this is when we can get and.

Funding deliver Ashish, we wanted to be and we and the customer is coming in and we expect it to.

Cesar Medina - Morgan Stanley, Research Division: Thank you.

Carlos Garcia Moreno - CFO: Thank you.

Thank you. Our next question is from Andreas [inaudible] from BTG. Andreas please go ahead, your line is open.

Our next question is from Andreas <unk> from BTG. Please go ahead. Your line is open.

Andreas - BTG: Hello. Thank you for taking my question. I would like to ask a question related to margins in Mexico. Last year we saw good expansions across the year and this year has been quite volatile for the first quarter, posting quite a large margin contraction and happening again this quarter. So what's your view on the sustainable level of margins in Mexico going forward? That will be my first question. Thank you

It's a related to margins in Mexico.

We saw.

Good expansions through across the year and this year has been quite volatile.

First quarter, posting a margin quite a large margin contraction on happening this.

This quarter. So what's your view on the level of sustainable level of margins in Mexico going forward that will be my first question. Thank you.

We're checking a little bit. I have here the adjusted margins, I think that maybe you have to look at the adjusted margins because of we have done from time to time some tower sales, so that has had an impact on the margins. You look at adjusted margins in 3Q '22, it was 41.0%, in 2nd quarter of '23 was 40.9%. And we did have a reduction from 40.9% to 40.0% in this quarter. But they've been, I don't see a lot of volatility. I think margins have stayed in the 40% to 41% range adjusted margin for the last five quarters. And the growth is 5.9% 2nd quarter FIFO in Guam, and these quarter three point. Fixed so it's more or less the growth is there and. It's not I don't think it's volatile it's more or less following the increase in revenues. Understood.

Carlos Garcia Moreno - CFO: We're checking a little bit. I have here the adjusted margins, I think that maybe you have to look at the adjusted margins because of we have done from time to time some tower sales, so that has had an impact on the margins. You look at adjusted margins in 3Q '22, it was 41.0%, in 2nd quarter of '23 was 40.9%. And we did have a reduction from 40.9% to 40.0% in this quarter. But they've been, I don't see a lot of volatility. I think margins have stayed in the 40% to 41% range adjusted margin for the last five quarters.

Okay.

Our.

Yes.

We're checking a little bit.

Right.

Yes.

I have two here.

Yes.

The adjustment the adjusted margins I think that maybe you have to look at their margins because of our.

We have a zone.

From time to time from our phase So that has had an impact on the microphone.

You look at adjusted margins.

<unk> turn it to where it was 41.0%.

In.

Our second quarter 33 of our 49%.

And we did have a reduction from 49% to 42%.

This quarter, but they've been very good.

I don't see the Mercury.

A lot of volatility I think.

Margins have stayed in the 40% to 41% range adjusted for.

And the growth is 5.9%, 2nd quarter 5.1% and this quarter 3.6%. So it's more or less the growth is there and it's not, I don't think it's volatile, it's more or less following the increase on revenues. Understood.

Daniel Hajj Aboumrad - CEO: And the growth is 5.9%, 2nd quarter 5.1% and this quarter 3.6%. So it's more or less the growth is there and it's not, I don't think it's volatile, it's more or less following the increase on revenues.

For the last five quarters.

And the growth is.

Five nine second quarter FIFO in Guam, and these quarter three point.

Fixed so it's more or less the growth is there and.

It's not I don't think it's volatile it's more or less following the increase in revenues.

Understood.

Andreas - BTG: Understood. What should we think going forward given the possible increase in minimum wages or gain of 20% on your labor costs and the possibility to see the labor week reduced by one day. How should we, could this impact the operations in Mexico?

What should we think going forward given the. Possible increase in minimum wages, Dana up 20% in Europe . Labor costs. That was related to see that labor, which we reduced by one day, how should we produce. Could this impact. <unk> in Mexico.

Possible increase in minimum wages, Dana up 20% in Europe .

Labor costs.

That was related to see that labor, which we reduced by one day, how should we produce.

Could this impact.

<unk> in Mexico.

Daniel Hajj Aboumrad - CEO: Well, we already have that increase at the beginning of the year, so it's part of the cost that we're having and I told you we have been focusing a lot on taking care about the cost, to have a very good cost control in all the operation. So it's not only in Mexico the increase in salaries, it's all around Latin America and we're focusing on that being more efficient, being more digital. I see this number I think in America Movil in '19, in 12/19 we have 190-- let me tell you--we have 94,000 people, in '20 186,000, in '21 181,000, in '22 178,000 and in August we have 176,000 people. So the reduction, we're not hiring people, we're being more efficient and we're training more of our people so all of that is giving us the control of the cost.

We are having and Thats I told you we have been focusing a lot on.

Taking care about the cost to have a very good cost control in mondale operation. So it is not only in Mexico the increase in.

Salaries, all around Latin America, and we're focusing on that being more efficient be more digital.

Our.

Yeah.

Icd's number I think in America multi in 19.

19, we have 100 and naive.

Let me tell you.

We have a 94000 people in 'twenty, one ADC in 'twenty one 181.

In 2000 to 178 and in August we have 176000 people saw the reduction.

We're not hiring people, we're making more efficient and we're training.

Training more of our people so all of that DC is giving us.

Yes.

The control of the cost now.

So the reduction and re-training the people, it's been for the last four years. I would like to stress again. <unk>. Regarding Mexico, and sometimes to other countries so important tool. Normalized from the effect of the extraordinary things might be okay. Because they have been important in Mexico last year. The important EU and I think you have to correct for that because of the volatility in the margins you're referring to has to do with it.

So the reduction and re-training the people, it's been for the last four years.

And re training the people.

For the last four years now.

Carlos Garcia Moreno - CFO: I would like to stress again, regarding Mexico and sometimes to other countries, it's important to normalize from the effect of extraordinary things like the sales towers, okay. Because they have been important in Mexico last year, they've been important this year and I think you have to correct for that because of the volatility in the margins you're referring to has to do with the tower.

I would like to stress again.

<unk>.

Regarding Mexico, and sometimes to other countries so important tool.

Normalized from the effect of the extraordinary things might be okay. Because they have been important in Mexico last year. The important EU and I think you have to correct for that because of the volatility in the margins you're referring to has to do with it.

Andreas - BTG: Understood. Thank you very much.

Carlos Garcia Moreno - CFO: Thank you.

Operator: Thank you. Our next question is from Alejandro Azar from GBM. Alejandro please go ahead, your line is open.

Our next question is from Alejandro.

From GBM Alejandro. Please go ahead your line is open.

Alejandro Azar Wabi - GBM: Hi, good morning Daniel, Carlos. I'm sorry, I joined a little bit late but I was wondering if you guys mentioned something about the Verizon earnout that I believed the deadline was September of this year. Could you give us some color on that, if it's possible. Thank you.

Hi, Good morning, Daniel Carlos.

Im sorry, I joined a little bit late but I was wondering if you guys mentioned something about the Verizon and earn out thought I believed.

The deadline was September of this year could you give us some color on that.

If it's possible. Thank you.

Carlos Garcia Moreno - CFO: We did get a payment for the earnout, it was MXN3.5 billion--MXN3.3 billion pesos in the quarter's part of the MXN5.5 billion that we mentioned here in the cash flow. There was a slide there, that we would be happy to provide you the slide.

Hello.

You did hear it.

Our payment for the earn out it was $3 5 billion $3 3 billion pesos.

In the quarter as part of the $5 5 billion that we that we mentioned can be cash flow.

<unk>.

We will be happy to provide you with a lag.

Thank you in terms of the free cash flow.

Alejandro Azar Wabi - GBM: Thank you.

Carlos Garcia Moreno - CFO: That we mentioned in the free cash flow.

Operator: Thank you. Our next question is from Phani Kanumuri from HSBC. Phani please go ahead, your line is open.

Phani Kanumuri - HSBC: Thank you everyone for taking my question. My first question is on Brazil. It seems that you are growing really well in Brazil and the ARPU is up nearly 12%.

Thanks for taking my question.

My first question is on President.

It seems that you are growing.

In Brazil.

And we.

We don't see it.

Daniel Hajj Aboumrad - CEO: We don't hear, can you speak a little bit louder, we cannot hear you. Please.

Yes.

Phani Kanumuri - HSBC: Can you hear me now.

Daniel Hajj Aboumrad - CEO: Yes, okay.

Phani Kanumuri - HSBC: My first question is regarding Brazil. It seems that you are doing really well in Brazil and your mobile ARPU is up nearly 12% year-on-year in the 3rd quarter. Is it driven more by price increases or more by volume increases and how do you expect this trend to go going forward? That's my first question.

Seems that you are doing really well and visit and give them all that up it was up nearly 12.

And beyond.

Third quarter.

Is it driven more by price increases on some more of that volume increases and how do you expect discipline going forward. That's my first question.

Daniel Hajj Aboumrad - CEO: Well, I think on Brazil we're doing well in market share, we're doing well-- as Oscar has mentioned and Carlos has mentioned also. We are starting to grow in broadband again, reducing the losses in TV, improving like 1.1 million subscribers in postpaid, so we are doing very well in Brazil. The synergies that we have and the control cost that we have, also we have a pass through on part, not on all our products, but in part of our products, I think at the mid of beginning or mid of this year. So in Brazil, we are doing okay, improving, growing revenues and controlling costs. So that's what we're seeing in Brazil.

Our studies mentioned Carlos mentioned also we are starting to grow in broadband again.

Reducing the losses in PV.

Improving like one one.

Millions of subscribers in postpaid so we are doing very well in Brazil.

The synergies that we have under control cost that we have also we have a pass through on biased not on all our products. Both in part of our products I think that the middle of beginning or mid of this year. So in Brazil, we are doing okay.

Improving a growing revenues and controlling costs so thats.

Yeah.

What to what we're seeing in Brazil.

Yes.

Phani Kanumuri - HSBC: Thank you. So the second question that I had is on the Mexico corporate segment. The revenue growth has decelerated this quarter, is it because it's more of a lumpy quarter or what is driving that revenue growth deceleration in the corporate segment in Mexico?

Mint.

The revenue growth has decelerated this quarter.

Is it because it's more of a lumpy quarter.

What is driving that revenue growth to position in the corporate segment in Mexico.

Carlos Garcia Moreno - CFO: Yes, as I mentioned before in Mexico, we are doing exactly the same. Selling those products, SD-WAN security, outsourcing networks cloud services, vertical solutions--so we are doing pretty well in Mexico addressing those markets and it's growing around 12%, the revenues in corporate. So when you look at Mexico, corporate is growing, broadband as well is growing 8.5%. So I think we're doing well in Mexico, we feel that we continue with that. We have the base of the network, we did the right investments in the network, not only in fiber. We reskilled the people to sell these new set of products, we bring in people with experience in cloud services, in vertical solution. So I think we see this market trend very pptimistic.

Yes.

I mentioned before.

In Mexico, we are doing exactly the same.

Selling those protocols.

<unk> security.

Outsourcing.

Networks cloud services.

Vertical solutions, so we are doing pretty well in Mexico, especially in those markets and it's growing.

12%.

If revenues incorporate so.

When you look at Mexico corporate is growing broadband.

Broadband is ready to growing 885%, so I think.

We're doing well in Mexico.

We feel that we continue with that we have the base of the network.

Deep Youre, writing business in the not only fiber we reached key and the people to sell these new safe approach. So we are in people with experience in cloud services vertical solution. So I think.

We see this market.

Optimistic.

Phani Kanumuri - HSBC: Thanks for answering my question.

Sure.

Carlos Garcia Moreno - CFO: One question--one comment on the other part of what I said. Because the issue with our corporate network revenue, which as we mentioned, it's been gaining share, it's become more important in most operations. But it can be sometimes volatile, sometimes you get a new contract and book all the revenues at once. But if you look at the full nine months of this year, so we raise the volatility, you have the increase in revenue is 10.3%. So the year to September, corporate network revenue in Mexico is 10.3% larger than the prior year.

Because the issue with our corporate network revenue, which as we mentioned it's been gaining share.

More important than most operations.

But it can be sometimes volatile sometimes you get a new contract from there.

And do it in Colombia revenues at once.

But if you look at the full nine months of this year. So we're very sorry.

The volatility you have the increase in that and revenues 10, 3% so the year to September .

Corporate medical with them in Mexico, as temporary 10, 3% larger than the prior year.

Yes.

Phani Kanumuri - HSBC: Yeah. Thanks, everyone.

Carlos Garcia Moreno - CFO: Thank you.

Operator: Thank you. Our next question is from Andres Cardona from Citi. Andres please go ahead, your line is open.

Our next question is from Andres Cardona from City Andreas. Please go ahead. Your line is open.

On Indonesia.

Andres Cardone - CITI: Good morning Daniel and good morning Carlos. Thanks for the preliminary comments on 2024 CapEx program. Let me ask you about 2023 networking capital, if you can comment what do you expect for the full year and if there was any event that explains slower reversion on the third quarter? Thanks a lot. Working capital.

Andres Cardone - CITI: Good morning Daniel and good morning Carlos. Thanks for the preliminary comments on 2024 CapEx program. Let me ask you about 2023 networking capital, if you can comment what do you expect for the full year and if there was any event that explains slower reversion on the third quarter? Thanks a lot.

Thanks for the preliminary comments.

And pulling forward Capex program.

Let me ask you all to 2023 net working capital if you can comment what.

What do you expect for the full year.

In the event that explain.

It's lower.

On the third quarter.

Daniela Lecuona Torras - Head of IR: Working capital.

Ah on working capital. This is a reversion on working capital? Can you explain again, we don't hear--we don't understand. Okay. I don't know. I don't know if this is the rhythm, but basically what we've been. Setting for a long time is that our customer with very cyclical because of working capital. So the first sale. Most of the year. We require a lot of working capital and then we get it back. Yes. Third of the year indicate so typically when we have a gain there having a very strong World Cup and we're beginning to get back to working capital that we contributed in the first couple of years.

Daniel Hajj Aboumrad - CEO: Ah on working capital. This is a reversion on working capital? Can you explain again, we don't hear--we don't understand.

Alright.

Great Okay.

And on working cap.

This is a reversion on working capital.

Carlos Garcia Moreno - CFO: I don't, Andres, I don't know if this is the question, but basically what we've been saying for a long time is that our cash flow is cyclical because of working capital. So the first several months of the year we require a lot of working capital and then we get it back, typically the last third of the year, let's say. So typically, when we have a--we begin having a reversion work capital and we're beginning to get back the working capital that we contributed in the first couple of years.

Can you explain again, we don't care.

We don't have to spend.

Okay.

I don't know.

I don't know if this is the rhythm, but basically what we've been.

Setting for a long time is that our customer with very cyclical because of working capital. So the first sale.

Most of the year.

We require a lot of working capital and then we get it back.

Yes.

Third of the year indicate so typically when we have a gain there having a very strong World Cup and we're beginning to get back to working capital that we contributed in the first couple of years.

Operator: Thank you. Our next question is from Till Moewes from Schroders. Till please go ahead, your line is open.

Our next question is from <unk> Malik from traders Joe. Please go ahead. Your line is open.

Till Moewes - Schroders: Hello, and thanks for taking my question. It's about Guatemala. You have been fighting to get to more balanced market share there and I was wondering where you stand currently in the process, how long do you think the remainder is going to take and what additional measures if any, should we expect?

Hello, and thanks for taking my question.

What the Molla.

You have been fighting to get to a more balanced market share there.

And I was wondering where you stand currently in the process how long do you think.

The remainder is going to take and what additional measures if any should we expect.

Daniel Hajj Aboumrad - CEO: I think in Guatemala we're doing well, we are investing, we just get the 700 frequencies. We have a little bit lack of coverage in some, in wireless and with the 700 frequencies I think we can get a little bit more coverage on that. We can give better quality and attend more customers there. In the fix, we are putting more fiber, we're changing a little bit more copper for fiber, giving more speeds to the customers. So we are doing there, we are not being so aggressive. we're not reducing prices. Just the only thing that we're doing in Guatemala is we are being more focused on quality, better service, more speeds in the peaks and changing our fiber to--our copper to fiber and do the convergence. Also in the corporate side, we are doing also good so we are improving our operations in Guatemala.

In wireless and with the 700 frequency I think we can get a little bit more on.

That we can be better quality.

<unk> been more customers there in the peaks.

The fix we are putting more fiber, we're changing a little bit more copper or fiber.

Giving more.

The speeds to the customers. So we are doing there we are not being so aggressive we're not reducing prices.

Just the only thing that we're doing and what the Milan is we are being more focused on.

Quality.

Better so.

More speeds in the peaks.

Unchanging, our fiber to our copper to fiber.

Also in the corporate side, we are doing also good so we are improving our operations in Guatemala.

We are improving our operations in Guatemala.

On the fixed line side.

We have been improving on the service revenue growth.

It has been negative and now we're in positive, but it has been an improvement quarter to quarter for the last five quarters.

Carlos Garcia Moreno - CFO: You know, on the fixed line side we have been improving on the service revenue growth. It has been negative and now we're in positive. It's been an improvement quarter after quarter in the last five quarters that we can see.

Till Moewes - Schroders: Okay. Thank you and another question if I may. In Mexico City, Megacable is increasing its penetration and I was wondering what you think does it mean for the competitive landscape there?

Yes.

And another question if I may in Mexico City, and Mega topline is increasing its penetration and I was wondering what youre, saying does it mean for the competitive landscape there.

Okay.

Yes.

Carlos Garcia Moreno - CFO: Yeah, Megacable, they are building fiber. Some of them is overlapping the cable networks, some of them is greenfield. But to be honest, we have a great platform in Mexico. We have 60 million home passes in fiber, as Daniel mentioned. We have 76% of our customers already connected with fiber. Let me add that we've been doing very well to bundles with streaming platforms as HBO, Netflix, Claro video. So we bundled the program with this streaming, it has been very well-receptive in the market. So I agree, Megacable is growing with fiber but I think we have the right network to compete. So we already have fiber, so I think we have a good proposition in the market to compete with the older competitor, not only with Megacable.

Some of them is overlapping the cable networks some of it is greenfield.

But to be honest, we have a great platform in Mexico, We have 60 million home passes retire as Alan mentioned, we have seven.

76% of our customers already connected with fiber.

Yes.

We've been doing very well to bomb goes with streaming platforms.

<unk> naturally straddle video so we bundled the program with this.

Streaming has been very well receptive in the market. So.

Are you already met recovery is growing.

With fiber.

I think we've.

We have the right network to compete.

So we already have fiber.

So.

I think we have a good proposition in the market to compete with.

With the older competitive not only with Mega category.

Till Moewes - Schroders: Alright, thank you.

Okay. Yeah.

Yeah.

Operator: Thank you. Our next question is from--our next question is from Jesus Romo from GlobalData. Jesus, please go ahead.

Our next question is from.

Yes.

Our next question is from hedges from my from Global data hedges. Please go ahead.

Jesus Romo - GlobalData: Good morning, thank you for taking my questions. I have multiple questions regarding the Mexico operation. I wonder if you can provide additional colors on the deceleration in Mexico for net--corporate network services, the color of what's happening there or some context and what's guiding the broadband revenue, given you mentioned this quarter, what's wrong with the revenue over there. And then the second question is for wireless. Just a bit of color on what guidance postpaid net adds in Mexico on ARPA growth in Mexico. Thank you.

Operation.

We can provide additional color on the deceleration in Mexico, four net corporate services.

The color of what's happening there.

And what guidance.

On the <unk>.

Broadband.

<unk> revenue.

We didn't.

Given the investment this quarter walk around with the revenue.

Second question is for or wireless.

Just a bit of color of what guidance postpaid net adds in Mexico on ARPA growth in Mexico. Thank you.

Well I'm going to start with wireless. I think that wireless is driving a little bit better ARPU and growth is our 5G networks. I think we have more coverage that are quality and we are really the only one that has been investing in Mexico in 5G, so customers are using that network, using more data and sometimes upgrading their plan to have more data. So that's more or less what we're seeing there and in  fixed side in corporate. as well as you know the corporate market. Totally retirement market in the mass market. The negotiations thanks for many months to really get the projects in some quarters, we won a very large projects. As we've done with what we see is that we have a great pipeline in place so. This kind of selling. Different approach you need to go to the customer. To show our business case of the efficiency the cost reduction productivity and it takes a while to convince the customer sometimes we won a very large project in some quarters, we don't book we. <unk> is a very good pipeline that we have a follow so that.

Daniel Hajj Aboumrad - CEO: Well I'm going to start with wireless. I think that wireless is driving a little bit better ARPU and growth is our 5G networks. I think we have more coverage that are quality and we are really the only one that has been investing in Mexico in 5G, so customers are using that network, using more data and sometimes upgrading their plan to have more data. So that's more or less what we're seeing there and in fixed side in corporate.

So customers are using that network using more data.

<unk>.

Sometimes upgrading their plan to have more data, so that's more or less what we're seeing there.

In the fixed side in cohort as well as you know the corporate market. Totally retirement market in the mass market.

Well as you know the corporate market, it's a totally different market than the mass market. The negotiations takes many months to really get the projects, in some quarters we won very large projects and in other quarters we don't. But what we see is that we have a great pipeline in place, so this kind of selling is a different approach. You need to go to the customer to show business case of the efficiency, the cost reduction, the productivity and it takes a while to convince the customer. Sometimes we won a very large project and some quarters we don't, but what we have is a very good pipeline that we are following so that why we are optimistic on these markets. Just where we. Repeat what we said before we look at the nine months to September . Corporate networks revenue in Mexico. Increased 10% year on year. Okay. But when you look at long enough period, you cannot make that available. What is important is to have a good pipeline. Opportunities right.

Oscar Von Hauske Solís - COO: Well as you know the corporate market, it's a totally different market than the mass market. The negotiations takes many months to really get the projects, in some quarters we won very large projects and in other quarters we don't. But what we see is that we have a great pipeline in place, so this kind of selling is a different approach. You need to go to the customer to show business case of the efficiency, the cost reduction, the productivity and it takes a while to convince the customer. Sometimes we won a very large project and some quarters we don't, but what we have is a very good pipeline that we are following so that why we are optimistic on these markets.

Totally retirement market in the mass market.

The negotiations thanks for many months to really get the projects in some quarters, we won a very large projects.

As we've done with what we see is that we have a great pipeline in place so.

This kind of selling.

Different approach you need to go to the customer.

To show our business case of the efficiency the cost reduction productivity and it takes a while to convince the customer sometimes we won a very large project in some quarters, we don't book we.

<unk> is a very good pipeline that we have a follow so that.

That's why we are optimistic on bus on these markets just where we. Repeat what we said before we look at the nine months to September . Corporate networks revenue in Mexico. Increased 10% year on year. Okay. But when you look at long enough period, you cannot make that available. What is important is to have a good pipeline. Opportunities right.

Carlos Garcia Moreno - CFO: Just to repeat what we said before, we look at the nine months to September--corporate networks revenue in Mexico increased 10% year-on-year. When you look at long enough periods, then you can [inaudible] volatility. What is important is to have a good pipeline of opportunities, right.

Repeat what we said before we look at the nine months to September .

Corporate networks revenue in Mexico.

Increased 10% year on year.

Okay.

But when you look at long enough period, you cannot make that available.

What is important is to have a good pipeline.

Opportunities right.

Jesus Romo - GlobalData: Thank you very clear.

Okay.

Operator: Thank you. Our last question is from Alejandro Lavin from Santander. Alejandro please go ahead, your line is open.

Our last question is from Alejandro Lavin from Santander Alejandro. Please go ahead.

Your line is open.

Alejandro Lavin - Santander: Hi, good morning. Thank you for taking the questions, thank you for the call. I just have a quick question on Argentina, you're seeing good growth there so could you please expand on what kind of opportunities you're seeing there over the medium term and how do you balance that versus the current microenvironment and FX depreciation? Thank you.

Have a quick question on Argentina, Youre seeing good growth there. So could you. Please expand on what kind of opportunities youre seeing there over the medium term.

How do you balance that versus the current microenvironment and FX depreciation. Thank you.

Daniel Hajj Aboumrad - CEO: We know what is happening in Argentina with the microenvironment but where we're seeing good opportunities is in the fixed-line. We have been running the wireless for a long time, we have a decent market share, we're growing, we're doing well and we start maybe four years ago in putting fiber and it's given very good returns, this fiber. So we have like 1.2 million broadband subscribers in Argentina right now and that's where we see the good opportunities in all the fixed-platform. PayTV, fixed and broadband is where we're seeing that.

For four years.

In both in fiber and.

And given very good returns at these Pfizer So we had.

Like $1 2 million broadband subscribers in Argentina right now.

That's where we see.

The Laguna.

And the good opportunities in all the fixed platform where pay TV.

<unk> in Brooklyn is where we can.

Alejandro Lavin - Santander: Okay. Thank you.

Daniel Hajj Aboumrad - CEO: Thank you. Thank you very much.

Operator: Thank you. This is all the time we have for the Q&A session today, so I would like to hand back to management for any closing remarks.

Daniel Hajj Aboumrad - CEO: No just, thank you, all of you, for being in the call. Thank you.

Thank you.

Operator: Thank you everyone for joining today's call. You may now disconnect your lines and have a lovely day.

[music].

Yes.

Okay.

Yes.

Yes.