Q4 2023 America Movil SAB De CV Earnings Call

February 14, 2024

[music].

Operator: Good morning, my name is Candice, and I will be your conference operator today. At this time, I would like to welcome everyone to the American Movil fourth quarter 2023 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by one on your telephone keypad. If you would like to withdraw your question, please press start, followed by two. I would now like to turn this conference call over to Miss Daniela. 50 re, Please go ahead. Thank you. Good morning, everyone.

Good morning, My name is Candice and I will be your conference operator today at this time I would like to welcome everyone to the American Medical fourth quarter 2023 conference call and webcast. All lines have been placed on mute to prevent prevent any background noise. After the speakers' remarks, there will.

Candice: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press start, followed by one on your telephone keypad. If you would like to withdraw your question, please press start, followed by two.

A question and answer session.

I would like to ask a question. During this time simply press star followed by one on.

On your telephone keypad, if you would like to withdraw your question. Please press star followed by T O.

Daniela: I would now like to turn this conference call over to Miss Daniela. 50 re, Please go ahead. Thank you. Good morning, everyone.

I'd now like to tonnage conference call over to Ms. Daniela.

The one coke.

Please go ahead.

Thank you good morning, everyone. Thank you for joining us today.

Daniela Lecuona: Thank you. Good morning, everyone. Thank you for joining us today in our fourth quarter Operating and Financial Review. We have on the line Mr. Daniel Cash, CEO, Mr. Carlos Garcia Moreno, CFO, and Mr. Oscar von Hauske, COO. Good morning, everyone.

Daniela: Thank you for joining us today for our fourth quarter Operating and Financial Review. We have on the line Mr. Daniel Cash, CEO, Mr. Carlos Garcia Moreno, CFO, and Mr. Oscar Bonjausque, President. Good morning, everyone.

Fourth quarter.

Operating and financial review.

On the line Mr. Daniel Hajj CEO agenda.

Yeah.

Okay.

Yeah.

Good morning, everyone and welcome to American Mobiles fourth quarter of 'twenty, three financial and operating report Carlos.

Daniel Hajj Aboumrad: Good morning, everyone. Welcome to America Movil's fourth quarter of '23 Financial and Operating Report. Carlos Garcia Moreno is going to make a summary of the results. Carlos.

Daniela: Welcome to America Mobile's fourth quarter of 23 financial and operating report. Carlos Garcia Moreno is going to give you a summary of the results. Carlos.

ICL Moreno is going to make a summary of the results Carlos Thank you Danielle good morning, everyone.

Carlos Garcia Moreno: Thank you, Daniel. Good morning, everyone. Well, the fourth quarter of 2023 turned out to be an extremely volatile one with interest rates surging in the first month of the quarter, that's October, to record highs not seen in over 16 years. This was in continuing with the trend that began early in the third quarter as inflation pressures brought about new increases in reference rates by the Fed. The yield on 10-year [inaudible] notes, which stood as low as 3.75 in mid-July, shot up to 5% in exactly three months.

The fourth quarter of 333 turned out to be an extremely volatile one where interest rates surged in the first month of the quarter.

Recognize not seen in over 16 years.

This is Ross and continuing with the trend that began early in the third quarter as inflation pressures brought about increases in reference rates by the fed.

The yield on Christian notes, which had stood of lower $3 75 in mid July showed up to 5% and attractive for months now.

Carlos Garcia Moreno: But then things turned, new [inaudible] appeared to be softer, and the Fed put out the message that no new action on reference rates was expected for at least the remainder of the year. A huge rally in interest rates followed, with the 10-year [inaudible] plummeting back to where it had been in mid-July. We added 3.9 million wireless subscribers in the fourth quarter, of which 2.7 million were post-applied. Brazil contributed 1.8 million new contract clients, while 329,000 came from Austria, 124,000 from Argentina, and 109,000 from Mexico. The prepaid platform registered an addition of 1.3 million clients in the period, with Colombia gaining 456,000, Mexico 308,000, Argentina 278,000, and Central America roughly the same amount, 269,000. On the six-line segment, we obtained 386,000 [inaudible] accesses. Mexico was the leader, adding 165,000 accesses. It was followed by Brazil with 50,000 and Argentina with 51,000.

Dan Thanks tank manufacturer ingredients appeared to be soft and we said what are the metrics that are non new action.

<unk> ratio is expected for at least the remainder of the year.

Rally in interest rates, followed with the 10 year, Chris reviewed plummeting back to where it had been in mid July.

We added $3 9 million wireless subscribers in the fourth quarter of which $2 7 million workforce that guidance.

<unk> contributed $1 8 million new contract clients or 339000 came from Austria and Italy.

74000 from Argentina.

Central Mexico.

The prepay platform registering integrations of one 3 million clients in the period with Columbia Gaming Borgwarner proceed strengthen Mexico 308000, Argentina to longevity with garden in Central America at roughly the same amount 2000 69000.

On the fixed line segment.

We obtained 386000 broadband accesses Meg.

Mexico royalty leader, adding a colonoscopy.

65000, mattresses photo very proceeded with 50000 in Argentina with 51000.

Okay.

Carlos Garcia Moreno: Looking at the base, the posted base was the more dynamic one, increasing 7% year on year, followed by fixed broadband accesses, which were up 4.1%. Prepaid subscriber base rose 1.2%, while paid TV accesses fell 1.8% year on year. Because of exchange rates, service revenue was up 3.7% in line with the pay-as-registered the prior quarter, whereas adjusted EBITDA re-accelerated to a 4.6% return in the quarter. So we basically maintained the pace that we had on service revenue from the third quarter, and we managed to re-accelerate adjusted EBITDA to a 4.6% return. Mobile service revenue expanded 4.2%, much in line with the prior quarter.

Looking at the base normally postpaid base.

The more dynamic one increasing 7% year on year, followed by fixed broadband access.

<unk> were up four 1%.

Prepaid subscriber base rose, 2%, while pay TV, <unk> and one 8% year on year.

At constant exchange rates.

Revenue was up three 7% in line with the payers registered with prior quarter, whereas adjusted EBITDA re accelerated to a four 6% repayment in the quarter. So we basically maintain the pace that we've had on service revenue from the third quarter.

We managed to Reaccelerate adjusted EBITDA to a four 6% rhythm.

Carlos Garcia Moreno: Mobile service revenue expanded 4.2%, much in line with the prior quarter, and that's on the [inaudible] platform, with 3.0% continuing the accelerating trend of sales throughout the year. This was the fifth consecutive quarter with positive growth on both platforms, and ensured that for the fully year 2023, revenue increased on the two platforms, mobile and fixed. Movil [inaudible] remains stable in Mexico at 4.5%, whereas in Brazil it slowed down from the prior quarter to 7.1%. In Central America, Movil service revenue accelerated to 10.7%, as you can see on the chart. Revenue from corporate networks led the way in the [inaudible] platform, expanding 8.1% from the earlier quarter, followed closely by broadband revenue that posted a 6.6% increase. Paid TV revenue declined slightly, 1.1%, its smallest decline in over a year. Corporate networks revenue, revenue growth was strongest in Eastern Europe. Again, you can see this on the chart, 30.2% in Eastern Europe, Colombia 21.6%, Ecuador 19.5%, and Mexico and Peru, which are slightly more than 14% each. In Central America, it accelerated to 6.6%, having posted every quarter for the last year faster growth rates than the preceding one. Now importantly, Argentina has gone through a period of high inflation in the last several years. Since 2019, it has been subject to the accounting guidelines applicable to hyperinflationary countries with all the accounting variables expressed in real terms at constant Argentine pesos for consolidation purposes in our financial state. You know the economy continues to be stationary within America Movil. Those Argentine figures expressed in constant Argentine peso terms at the prevailing prices at the end of the period must be converted into Mexican pesos at the exchange rate observed at the end of the period, according to the IFRS rules. Given the magnitude of the Argentine peso depreciation, the application of the above-mentioned norm generates unusual effects.

Mobile service revenue expanded four 2% marching language in prior quarter and.

Carlos Garcia Moreno: And that's on the feedline platform, will 3.0% continue the accelerating trend of sales throughout the year. This was the fifth consecutive quarter with positive growth on both platforms and ensured that for the fourth year in a row, revenue increased on the two platforms, mobile and Android. Movil SAB is ready to go.

That's on the fixed line platform rose, 3%, continuing the accelerating trend observed throughout the year.

This was the fifth consecutive quarter with positive growth on both platforms uninsured, but for the full year 2023 revenue increase on the two platforms mobile and fixed.

Mobile service revenue growth remained stable in Mexico at four 5%, whereas in Brazil, a slowdown from the prior quarter to seven 1%.

Carlos Garcia Moreno: Remains stable in Mexico at four and a half, whereas in Brazil it slowed down from the prior quarter to 7.1. In Central America, Movil SAB was accelerated to 10.7%, team beat here... Revenue from corporate networks led the way in the freelance platform, expanding 8.1% from the year earlier quarter, followed closely by broadband revenue that posted a 6.6% increase. Pay-to-view revenue declined slightly, 1.1%, its smallest decline in Corporate networks revenue, revenue growth was strongest in Eastern Europe. Again, you can see this on the chart. 30.2% in Eastern Europe, Colombia 21.6%, Ecuador 19.5%, and Mexico and Peru, which are slightly more than 14% each.

Central America mortgage services revenue.

<unk> accelerated to 10, 7%.

In the chart.

Revenue from copper minerals led the way from efficient platform, expanding April and 1% from the year to year quarter, followed closely by broadband revenue that posted a six 6% increase.

<unk> revenue declined slightly one 1%, it's smaller decline in over a year.

A couple of networks revenue.

Growth was strongest in eastern Europe again, you guys you'd be found there.

Eric.

32% in Eastern Europe, Colombia, 21, 6%, a priority of 19, 5% in Mexico, and Peru, which was slightly more than 14% each.

Central America had accelerated to six 6%.

We reported every quarter over the last year faster growth rates than the preceding one.

Importantly.

Argentina has gone through a period of high inflation in the last several years.

Carlos Garcia Moreno: In Central America, it accelerated to 6.6%, having posted every quarter for the last year faster growth rates than the preceding one. Now importantly, Argentina has gone through a period of high inflation in the last several years. Since 2019, it has been subject to the accounting guidelines applicable to hyperinflationary countries with all the accounting variables expressed in real terms at constant Argentine pesos for consolidation purposes in our financial state. You know the economy continues to be stationary within America Movil. Those Argentine figures expressed in constant Argentine peso terms at the prevailing prices at the end of the period must be converted into Mexican pesos at the exchange rate observed at the end of the period, according to the IFRS rules. Given the magnitude of the Argentine peso depreciation, the application of the above-mentioned norm generates unusual effects.

<unk> 19, it has been subject to the accounting guidelines applicable to Capri inflationary countries with only accounting viable.

Real payments at constant Argentine pesos.

Carlos Garcia Moreno: Now importantly, Argentina has gone through a period of high inflation in the last several years. Since 2019, it has been subject to the accounting guidelines applicable to hyperinflationary countries, with all the accounting variables expressed in real terms at constant Argentine pesos. For consolidation purposes in our financial statements, [inaudible] the economy continues to be inflationary within America Movil. Those Argentine figures expressed in constant Argentine peso terms at the prevailing prices at the end of the period must be converted into Mexican pesos at the exchange rate observed at the end of the period, IFRS rules. Given the magnitude of the Argentine peso depreciation, the application of the above-mentioned norm generates unusual effects. In particular, as you can see on the slide as well, revenue actually decreases by $3.7 billion pesos when Argentina is included in our results, and EBITDA is also reduced by 1.4 billion pesos. We have a completely unusual and counterintuitive situation, whereby the inclusion of Argentina does not lead to adding a small amount or a smaller amount than what we had before. It actually leads to a net decline in revenues and EBITDA. Again, these are per the IFRS rules that we are subject to. Other than the above mentioned unusual accounting effects, the inclusion of Argentina generates 8 billion pesos in foreign exchange losses, another all results in an 8 billion pesos downward impact on net income to 16.8 billion.

Consolidation of fair processing in our financial statements with no other economy considered hyperinflationary refinance.

America moment.

Those Argentine figures experiencing continental you in person at the prevailing prices at the end of Q must be converted into Mexican pesos at the exchange rates at the end of it.

Okay.

Friday's groups.

Given the magnitude of the Argentine peso depreciation the application of the above mentioned on loan generates unusual effects in particular.

You can see the CMT and desire to win revenue actually decreases by $3 7 billion pesos. When Argentina is included in our results.

<unk> also reduced by $1 4 billion pesos.

Completely unusual.

Contact countering threep DFAST situation, whereby the inclusion of Argentina does not lead to adding.

A small amount or a smaller amount than we had before it actually leads to a net decline in revenues and EBITDA.

Carlos Garcia Moreno: In particular, as you can see on the slide as well, revenue actually decreases by $3.7 billion when Argentina is included in WIPO, and EBITDA is also reduced by 1.4 billion pesos. We have a completely unusual and counter-intuitive situation whereby the inclusion of Argentina does not lead to adding a small amount or a smaller amount than what we had before. It actually leads to a net decline in revenues and EBITDA. Again, these are 30 IFRS groups that we are supporting. Other than the above mentioned unusual accounting effects, the inclusion of Argentina generates 8 billion pesos in foreign exchange losses, another all results in an 8 billion pesos downward impact on net income to 16.8 billion.

<unk>.

If I may add that we are subject to.

Other than if you have all mentioned unusual accounting effects, the inclusion of Argentina generic 8 billion pesos and foreign exchange losses. Another world. We sold 8 billion pesos downward impact on net income to <unk>.

So in the absence of Argentina, we would have posted a 28 billion pesos in net income.

Net income.

As usual I'll continue to go down.

So that's basically what we've got.

Cash flow wise.

Our net debt increased by 41 billion pesos complemented our operating cash flow and it kept us cover.

Capital expenditures in the amount of 156 billion pesos shareholder distributions totaling 40 billion pesos of which $14 billion way of share buybacks and dividend point 8 billion pesos and legal obligations.

Carlos Garcia Moreno: Other than the above mentioned unusual accounting effects, the inclusion of Argentina generates 8 billion pesos in foreign exchange losses, and overall results in an 8 billion pesos downward impact on net income to 16.8 billion pesos. So in the absence of Argentina, we would have posted 28 billion pesos in net income and 6 billion pesos in [inaudible] income, and with the inclusion of Argentina it goes down. So that's basically what we've got, [inaudible] our net debt increased by 21 billion pesos, and it complemented our operating cash flow. And it helped us cover capital expenditures in the amount of 156 billion pesos. Shareholder distributions totaling 40 billion pesos, of which 14 billion will be share buybacks. And we [inaudible] billion pesos in labor obligations. So that's the summary, and I would want to pass it over to Daniel.

Yeah.

Watson.

Positive you're back to I guess.

Thank you Carlos and I think we can start with the Q&A.

Thanks Keith.

At this time I would like to remind everyone.

Carlos Garcia Moreno: So in the absence of Argentina, we would have posted 28 billion pesos in net income and 6 billion pesos in net income, and with the inclusion of Argentina. So that's basically what we've got. Castle of Wight.

I'll ask a question. Please press Star then the number one on your telephone keypad legal closing momentarily to compile the Q&A roster.

Our final question comes from the line of.

Tal Tomita with Goldman Sachs. Your line is now open. Please go ahead.

Daniel Cash: Our net debt increased by 21 billion pesos, and it complemented our operating cash flow. And it helped us cover capital expenditures in the amount of 156 billion pesos. Shareholder Distributions, totaling $40 billion, of which $14 billion will be for the share buyback. And we ran for 10 billion pesos in the world. So that's the summary, and I would want to pass it over to Daniel.

Hello, Good morning, all and thanks for taking my questions two questions from our side. The first one would be on the Capex side. If you could give us an update on your plans for Capex. If you plan to maintain that 2022 'twenty four capex same follow up after that.

$4 billion after some higher Capex in 2023, and the second question from our side would be on Columbia. If you would have any comments on the recently announced to regulatory changes in Colombia and on how that might affect your strategy for das country. Thank you very much.

Daniel Hajj Aboumrad: Yes, thank you, Carlos, and I think we can start now with the Q&A. Thank you. At this time, I would like to remind everyone that in order to ask a question, please press star then number one on your telephone keypad. We will pause here momentarily to compile the Q&A roster. Our first question comes from the line of Vitor Tomita of Goldman Sachs. Your line is now open; please go ahead. Hello, good morning all, and thanks for taking our questions. Two questions from our side. The first one would be on the CapEx side. If you could give us an update on your plans for CapEx and if you plan to maintain that 2022, 24 CapEx envelope of $24 billion after some higher CapEx in 2023. And the second question from our side would be on Colombia. If you would have any comments on recently announced regulatory changes in Colombia and on how that might affect your strategy for that country, thank you very much.

Daniel Hajj Aboumrad: Yes, thank you, Carlos, and I think we can start now with the Q&A.

Daniel Hajj Aboumrad: Thank you. At this time, I would like to remind everyone that in order to ask a question, please press star then number one on your telephone keypad. We will pause here momentarily to compile the Q&A roster. Our first question comes from the line of Vitor Tomita of Goldman Sachs. Your line is now open; please go ahead. Hello, good morning all, and thanks for taking our questions. Two questions from our side. The first one would be on the CapEx side. If you could give us an update on your plans for CapEx and if you plan to maintain that 2022, 24 CapEx envelope of $24 billion after some higher CapEx in 2023. And the second question from our side would be on Colombia. If you would have any comments on recently announced regulatory changes in Colombia and on how that might affect your strategy for that country, thank you very much.

Operator: Thank you. At this time, I would like to remind everyone in order to ask a question, please press star then number one on your telephone keypad. We will pause here momentarily to compile the Q&A roster. Our first question comes from the line of Vitor Tomita of Goldman Sachs. Your line is now open; please go ahead.

Well no.

The first question if we look the last three years.

'twenty one 'twenty two 'twenty three we invest around $25 billion. So what do we do with these $25 billion, we do a lot.

Operator: Our first question comes from the line of Vitor Tomita of Goldman Sachs. Your line is now open; please go ahead.

Vitor Tomita: Hello, good morning all, and thanks for taking our questions. Two questions from our side. The first one would be on the CapEx side. If you could give us an update on your plans for CapEx and if you plan to maintain that 2022-24 CapEx envelope of $24 billion dollars after some higher CapEx in 2023. And the second question from our side would be on Colombia. If you would have any comments on recently announced regulatory changes in Colombia and on how that might affect your strategy for that country, thank you very much.

Capacity in 445 G. We do <unk> in a lot of countries, let's say in Brazil, we have more than 200.

This week <unk> in Mexico.

120, Cps and all around we are doing <unk>, where we had we buy your spectrum in these last three years.

In the.

So marine cables that we need to have redundancy and to have more capacity for data.

We though home process a lot more home passes all around Latin America.

We change our copper or copper, we do a lot fiber and we do also fiber on greenfields and in <unk>, we increased our capacity more data centers.

Daniel Hajj Aboumrad: Well, the first question: if we look at the last three years--'21, '22, and '23--we invested around $25 billion. So what did we do with this $25 billion? We do a lot of capacity in 4G and 4.5G, we do 5G in a lot of countries. Let's say in Brazil, we have more than 200 cities with 5G. In Mexico, more than 120 cities. And all around, we are doing 5G where we have we buy a spectrum in these last three years. In some submarine cables that we need to have redundancy and to have more capacity for data. We do home passes, a lot more home passes all around Latin America. We change our copper, old copper. We do a lot of fiber, and we also do fiber on greenfields. And in B2B, we increased our capacity, more data centers. And we're growing revenues, very good revenues growing in B2B. So we are, I think we are in very good shape right now with all the investments that we have been doing the last three years and the last five years, because we have been investing big amounts of money. So what we're seeing this year is that we have the capacity to reduce the CapEx for this year. And what we had last year of $8.6 billion of CapEx, we're going to reduce this year to do $7 billion of CapEx. That's what our budget gives us. We still want to be doing and growing in every country in Latin America, in Europe, and developing fiber and growing also in 5G in some countries where we don't have it. And with all of that, the CapEx that we have for this year is $7 billion. So, a good reduction from last year. It's the CapEx that we projected for 2024. In Colombia, we have some changes on the regulatory side. We don't like to have more; all the countries are taking out regulatory measures because what they want is investments. And in Colombia, we're having a little bit more regulatory. And I think the competition is strong, a lot of promotions, things happening in the market. So we are still very strong in Colombia, and we're going to still invest what we need to invest. Very clear. Thank you very much.

And we're growing revenue is very good revenues growing in <unk>. So we are I think we are in very good shape right now.

All of this the investment that we have been doing the last three years in the last five years, because we have been investing this amount of money. So.

What we're seeing this year.

We have the capacity to reduce the capex for this year and what we have last year of $8 6 billion of Capex, we're going to reduce this year $472 billion to $7 billion on Capex, that's what our budget gave us and we still will not.

Daniel Cash: We do home passes, a lot more home passes all around Latin America. We change our copper, old copper. We do a lot of fiber, and we also do fiber on greenfields. And in B2B, we increase our capacity, more data centers. And we're growing revenues, very good revenues growing in B2B. So we are, I think we are in very good shape right now.

B are doing and growing.

Yeah.

Every country in Latin America and Europe.

Developing a field advisor and.

The growing also in <unk>, some countries, where we don't have and with all of that the Capex that we have for this year is 7 billion that saw good reduction from last year is that the capex that we project that for 2000.

Daniel Cash: With all the investments that we have been doing the last three years and the last five years, because we have been investing large amounts of money. So what we're seeing this year is that we have the capacity to reduce the capex for this year. And what we had last year of $8.6 billion of capex, we're going to reduce this year to do $7 billion of capex. That's what our budget gives us.

24 <unk>.

Columbia will have some changes in the regulatory side.

We don't like to have a more all the countries are taking out the regulatory measures.

And I think it was what they want these investments.

In Colombia, we're having a little bit more regulatory.

Daniel Hajj Aboumrad: We still want to be doing and growing in every country in Latin America, in Europe, and developing fiber and growing also in 5G in some countries where we don't have it. And with all of that, the CapEx that we have for this year is $7 billion. So, a good reduction from last year. It's the CapEx that we projected for 2024. In Colombia, we have some changes on the regulatory side. We don't like to have more; all the countries are taking out regulatory measures because what they want is investments. And in Colombia, we're having a little bit more regulatory. And I think the competition is strong, a lot of promotions, things happening in the market. So we are still very strong in Colombia, and we're going to still invest what we need to invest. Very clear. Thank you very much.

The.

Obligations table.

But while Colombia, we're gonna, it's still invest where we viewing very deeply how they are going to keep those stand.

But.

We are still maintaining our investments in Colombia and in.

Growing we get the frequencies in <unk> last year, we're going to put five in these year.

Daniel Cash: It's the capex that we projected for 2024. In Colombia, we have some changes on the regulatory side. We don't like to have more; all the countries are taking out regulatory measures because what they want is investments.

And I think the competition is strong.

Lot of promotions.

Things happening in the market. So we are still very strong in Colombia, and we're going to still invest what we need to invest there.

Daniel Hajj Aboumrad: In Colombia, we have some changes on the regulatory side. We don't like to have more, all the countries are taking out regulatory measures because what they want is investments. And in Colombia, we're having a little bit more regulatory obligations to do. But Colombia we're going to still invest, we're reviewing very deeply how they're going to hit us, but we are still maintaining our investments in Colombia and growing. We get the frequencies in 5G last year, we're going to put 5G in this year, and I think the competition is strong, a lot of promotions, things happening in the market. So we are still very strong in Colombia, and we're going to still invest what we need to invest there. Very clear. Thank you very much.

Very clear thank you very much.

Daniel Cash: And in Colombia, we're having a little bit more regulatory. And I think the competition is strong, a lot of promotions, things happening in the market. So we are still very strong in Colombia, and we're going to still invest what we need to invest. Very clear. Thank you very much.

Thank you.

Our next question comes from the line of Walter <unk> of light jet Youre like Mitchell. Please go ahead.

Thanks.

Our mobile <unk> growth has been pretty steady in Mexico I'm, just curious if that can sustain going forward also I see Brazil.

Had some growth in Colombia are there lessons learned there that things that you're doing in Mexico, and Brazil to.

Vitor Tomita: Very clear. Thank you very much.

Operator: Thank you. Our next question comes from the line of Walter Piecyk of Lightshed. Your line is now open, please go ahead.

Daniel Hajj Aboumrad: Thank you.

Operator: Our next question comes from the line of Walter Piecyk of Lightshed. Your line is now open, please go ahead.

I guess, either increase usage or otherwise get people on postpaid whatever the factors are that are driving that ARPA growth that can be implemented in Colombia.

Walter Piecyk: Thanks. The mobile ARPU growth has been pretty steady in Mexico. I'm curious if that can sustain going forward, I see Brazil has some growth. And on Colombia, are there lessons learned there that things that you're doing in Mexico and Brazil to I guess either increase usage or otherwise get people on post-pay, whatever the factors are that are driving that ARPU growth, that can be implemented in Colombia. Well, first in Mexico.

Well.

Firstly in Mexico in Mexico were growing our <unk>.

Okay.

Like a three 1% more in prepaid that mean phosphate.

And.

Related we had an increase prices in Mexico.

Got it.

Customers higher.

<unk> upgrading our plants and that is what giving loss all contract in new and higher plant with <unk>. So <unk> is helping modestly increase.

Daniel Hajj Aboumrad: Well, first in Mexico. In Mexico, we're growing our ARPUs by 3.1%, more in prepaid than in postpaid. And it's related; we haven't increase prices in Mexico. Our customers are sometimes upgrading our plans, and that is what's giving us all contracts in new and higher plans with 5G. So 5G is helping us to increase the ARPU in Mexico. And well, that's what people are using more; data. So that's what is happening, so 3.1% increase in ARPU I think it's good because, in Mexico, we have the highest ARPUs there. In Colombia, What has been happening the last two, three years is a lot of competition with all the new competitors giving a lot of data in their plans. So what is happening is that with all this data, you need to make better plans also, and sometimes our customers are downgrading because they have less rent with more data on their actual plan. So I think that's already finished.

<unk>.

Daniel Cash: In Mexico, we're growing our arpus by 3.1%, more in prepaid than in postpaid. And it's related; we have increased prices in Mexico. Our customers are sometimes upgrading our plans. And that is what's giving us all contracts for new and higher plans with 5G. So 5G is helping us to increase the arpu in Mexico. And well, that's what people are using more data for. So that's what is happening.

In Mexico and.

Well, that's what people is using more data. So that's what these happening so three one.

<unk>, increasing nine who I think it's good because in Mexico, we have the highest arpels there in Colombia.

These happened in the last two three years is a lot of competition with all the new competitors are giving a lot of the.

Daniel Cash: And that is what's giving us all contracts for new and higher plans with 5G. So 5G is helping us to increase the arpu in Mexico. And well, that's what people are using more data for. So that's what is happening.

Data in their plans so.

What is happening is that with all of these data.

You will need to do better landfall and sometimes our customers solid downgrading, because they've got less rent.

Daniel Cash: So, 3.1% increase in arpu. I think it's good because, in Mexico, we have the highest arpu there. In Colombia, What has been happening the last two, three years is a lot of competition with all the new competitors giving a lot of data in their plans. So what is happening is that with all this data, you need to make better plans also, and sometimes our customers are downgrading because they have less rent with more data on their actual plan. So I think that's already finished.

Daniel Hajj Aboumrad: In Colombia, what is happening the last two, three years is a lot of competition with all the new competitors are giving a lot of data in their plans. So what is happening is that with all this data, you need to do better plans also, and sometimes our customers are downgrading because they have less rent with more data on their actual plan. So I think that's already finished. I think it's been finished since the middle of last year, and I hope that this year we can increase in Colombia ARPUs. And in Brazil, we're doing very good in ARPUs, growing 7%, increasing our postpaid base, growing a lot machine to machine, also doing good in corporate. We already consolidated all the subscribers of Hoy. I think it was very good the way we consolidate. We are gainers in number portability, so we're gaining market share in Brazil. Thanks. And then for the CAPEX, the H6 that you mentioned, a portion of that, I guess, is, how would you describe the purchase of intangible assets? I'm not sure if that's spectrum or software. So when you think about the 86. What's the general mix of Spectrum or software versus true telco infrastructure or fiber? And then is the reduction from 8.6 to 7 really just the drop-off of just not having Spectrum or intangible asset purchases? Or is there, if you could just give a little bit more detail on the elements of what's in the 8.6 and the 7, thanks. I don't have them. I don't have the exact details on that, but I think on a spectrum, we already have the spectrum.

Data on the asphalt plant so while <unk>. That's already finished I think it's being finishing the mid of last year and I hope that this year, we can increase in Colombia outputs.

In Brazil in Brazil, we're doing very well.

In.

<unk> growing 7%, increasing our postpaid.

Daniel Cash: I think it was finished in the middle of last year, and I hope that this year we can increase our Colombian ARPUs. And in Brazil, we're doing very good in ARPUs, growing 7%, increasing our postpaid base, growing a lot machine to machine, also doing good in corporate. We already consolidated all the subscribers of Hoy.

Yeah.

Base.

Growing a lot machine to machine also.

Doing good in quarter four eight.

Well, that's we already.

The way the consolidate all the subscribers of <unk> I think it was very good the way we consolidate we are.

Daniel Hajj Aboumrad: And in Brazil, we're doing very good in ARPUs, growing 7%, increasing our postpaid base, growing a lot machine to machine, also doing good in corporate. We already consolidated all the subscribers of Hoy. I think it was very good the way we consolidate. We are gainers in number portability, so we're gaining market share in Brazil. Thanks. And then for the CAPEX, the H6 that you mentioned, a portion of that, I guess, is, how would you describe the purchase of intangible assets? I'm not sure if that's spectrum or software. So when you think about the 86. What's the general mix of Spectrum or software versus true telco infrastructure or fiber? And then is the reduction from 8.6 to 7 really just the drop-off of just not having Spectrum or intangible asset purchases? Or is there, if you could just give a little bit more detail on the elements of what's in the 8.6 and the 7, thanks. I don't have them. I don't have the exact details on that, but I think on a spectrum, we already have the spectrum.

<unk> seen number portability so.

Daniel Cash: I think it was very good the way we consolidate. We are gainers in number portability, so we're gaining market share in Brazil. Thanks. And then for the CAPEX, the H6 that you mentioned, a portion of that, I guess, is, how would you describe the purchase of intangible assets? I'm not sure if that's spectrum or software. So when you think about the 86. What's the general mix of Spectrum or software versus true telco infrastructure or fiber? And then is the reduction from 8.6 to 7 really just the drop-off of just not having Spectrum or intangible asset purchases? Or is there, if you could just give a little bit more detail on the elements of what's in the 8.6 and the 7, thanks. I don't have them. I don't have the exact details on that, but I think on a spectrum, we already have the spectrum.

We're gaining market share in Brazil.

Thanks, and then.

So the capex.

<unk>.

But you mentioned.

A portion of that I guess is.

How you would describe purchase of intangible assets I'm not sure if that spectrum our software. So when you think about the eight six.

Walter Piecyk: Thanks. And then for the CapEx, the 8.6 that you mentioned, a portion of that, I guess, is, how would you describe the purchase of intangible assets? I'm not sure if that's spectrum or software. So when you think about the 8.6, what's the general mix of spectrum or software versus true telco infrastructure or fiber? And then is the reduction from 8.6 to 7 really just the drop-off of just not having spectrum or intangible asset purchases? Or is there, if you could just give a little bit more detail on the elements of what's in the 8.6 and the 7, thanks. I don't have them. I don't have the exact details on that, but I think on a spectrum, we already have the spectrum.

What's the general mix of.

Spectrum, our software versus telco.

Infrastructure of fiber and then is the reduction from eight 6% to seven really just the drop off of just not having spectrum or intangible asset purchases or is there. If you could just give a little bit more detail on the.

Daniel Cash: What's the general mix of Spectrum or software versus true telco infrastructure or fiber? And then is the reduction from 8.6 to 7 really just the drop-off of just not having Spectrum or intangible asset purchases? Or is there, if you could just give a little bit more detail on the elements of what's in the 8.6 and the 7, thanks. I don't have them. I don't have the exact details on that, but I think on a spectrum, we already have the spectrum.

The elements of what's in the eight section seven.

Okay.

Don't have exactly the detail on that book.

I think on.

Our next.

To them, we already get to the spectrum of what we need I think the only thing that we have for this year is to renew the spectrum <unk> and maybe two or three other countries are small countries on the spectrum bought the Argentina Mexico.

Daniel Hajj Aboumrad: I don't have, I don't have exactly the details on that, but I think on the spectrum, we already get the spectrum. What we need, I think, the only thing that we have for this year is to renew the spectrum of Ecuador and maybe two or three other countries, small countries on the spectrum, but Argentina, Mexico, Colombia, Brazil, we already get all the spectrum there. So the reduction that we're going to have this year is, in what I already said, is wireless infrastructure, fixed line infrastructure, transport networks, IT. IT, it's going to be more or less the same, but transport, because we already do, we have been putting, let's say, fiber to the node. Photonics also, we already do all the photonics, that means all the new technologies for the backbone and transport. So all of that, we already do a big part of that, so it allows us to reduce the CapEx on new sites, 5G sites, home passes, greenfield and brownfield, because we change a lot of our copper, that old copper that we have. In the variable, there are parts of the CapEx that are variable, means the same depending on the sales that you have, and that will be more or less the same because we think that we still can grow this year as we grow last year. So even we have a better budget for broadband [inaudible] broadband this year than for last year. And in the spectrum, as I said, the big thing that we have for this year is more on Ecuador, to renew the spectrum on Ecuador. So the 700 megahertz we buy it, that we bought in Colombia and Argentina in 2023, Mexico, we already have before, and Brazil already has it. So this year we don't see any important spending on the spectrum besides Ecuador for this year. So all of that allows us to reduce the CapEx to 7 billion.

Colombia, Brazil, we already get.

Daniel Cash: What we need, I think, the only thing that we have for this year is to renew the spectrum for Ecuador and maybe two or three other small countries, small countries in the spectrum, but Argentina, Mexico, Colombia, Brazil, we already have all the spectrum there. So the reduction that we're going to have this year is, as I already said, wireless infrastructure, fixed line infrastructure, transport networks, and IT. IT is going to be more or less the same, but transport, because we already do, we have been putting, let's say, fiber to the nose, and photonics also. We already do all the photonics, that means all the new technologies for the backbone and transport.

All of the spectrum there so the reduction that we're going to have this year is.

In what I already said these wireless infrastructure.

<unk> line infrastructure transport networks, IP, it's going to be more or less the same for transport because we always do we have been putting let's say fiber to the node.

Photonic also we already do all the photonics that means all the new technologies for forward the backbone then.

And transport so all of that we already do big part of that so allow us to.

It reduces our capex on new sites <unk> site home passes Greenfield and brownfield, because we changed a lot of our copper that old copper that we have.

Daniel Cash: So all of that, we already do a big part of that. So it allows us to reduce the capex on new sites, 5G sites, home passes, Greenfield and Brownfield because we change a lot of our copper, that old copper that we have. In the variable, there are parts of the capex that are variable, meaning the same depending on the sales that you have, and that will be more or less the same because we think that we can still grow this year as we did last year.

In the <unk> there is fighting the Capex that is by rebels means the same depending on the sales that you got.

And that will be more or less the same because we think.

We still can grow.

This year.

We grow last year, so even we have a better budget for before.

Broadband fixed broadband.

For this year than last year.

Daniel Cash: So even we have a better budget for broadband this year than for last year. And in the spectrum, as I said, the big thing that we have for this year is more for Ecuador to renew the spectrum in Ecuador. So the 700 megahertz we buy it in, that we bought in Colombia and Argentina in 2023. Mexico, we already have before, and Brazil already has it. So this year we don't see any important spending on the spectrum besides Ecuador for this year. So all of that allows us to reduce the capex to 7 billion. Okay, thank you. If I could get one more just one, if not, you can just move on to the next caller.

So even we have a better budget for broadband this year than for last year. And in the spectrum, as I said, the big thing that we have for this year is more for Ecuador to renew the spectrum in Ecuador. So the 700 megahertz we buy it in, that we bought in Colombia and Argentina in 2023. Mexico, we already have before, and Brazil already has it. So this year we don't see any important spending on the spectrum besides Ecuador for this year. So all of that allows us to reduce the capex to 7 billion.

In the spectrum as I said.

The big thing that we thought for this year is more on.

On the Ecuador to renew.

<unk>, Ecuador, so the 700 megahertz, we bias that we bought in Colombia, and Argentina was in 2023 Mexico, we already had before in Brazil already saw.

The year, we don't see any important.

<unk>.

It spending on the spectrum.

The sites.

Ecuador for for this year, so all of that.

Allow us to reduce the capex dollars to 7 billion.

Daniel Cash: So this year we don't see any important spending on the spectrum besides Ecuador for this year. So all of that allows us to reduce the capex to 7 billion. Okay, thank you. If I could get one more just one, if not, you can just move on to the next caller.

Okay.

If I could get one more.

Not just move on to the next caller, but telecom, Austria as it is this really.

Okay, thank you. If I could get one more just one, if not, you can just move on to the next caller. But Telecom Austria, is this really an essential asset to keep in the portfolio? If you think about the longer term? If you have an opportunity, perhaps to exit that market and remain focused in Latin America? Just give me some fresh thoughts, because obviously, revenue is not growing there on the mobile side. So just curious about your thoughts on the importance of Telecom Austria going forward. Well, I think Telecom Austria came with all the Eastern European countries, and I think we're growing well in all these countries. These countries are more or less the same size as Austria.

Walter Piecyk: Okay, thank you. If I could get one more, just, if not, you can just move on to the next caller. Telecom Austria, is this really an essential asset to keep in the portfolio if you think about the longer term? If you have an opportunity perhaps to exit that market and remain focused in Latin America? Just give me your refreshed thoughts, because obviously, revenue is not growing there on the mobile side, so just curious about your thoughts on the importance of Telecom Austria going forward.

Central asset to keep in the portfolio. If you think about the longer term.

If you have an opportunity perhaps to exit that market and remain focused on Latin America.

Daniel Cash: But Telecom Austria, is this really an essential asset to keep in the portfolio? If you think about the longer term? If you have an opportunity, perhaps to exit that market and remain focused in Latin America? Just give me some fresh thoughts, because obviously, revenue is not growing there on the mobile side. So just curious about your thoughts on the importance of Telecom Austria going forward. Well, I think Telecom Austria came with all the Eastern European countries, and I think we're growing well in all these countries. These countries are more or less the same size as Austria.

Just give me your refresh thoughts because obviously revenue is not growing there on the mobile side. So just curious your thoughts on the importance of Telekom, Austria going forward forward.

Well I think telecom ultra game with.

Yes.

They're all based in Europe countries, and I think we're growing both in all these all these countries.

These countries are more or less the same size.

Austria, we're growing very good and I think we can grow a little bit more on that.

Well, I think Telecom Austria came with all the Eastern European countries, and I think we're growing well in all these countries. These countries are more or less the same size as Austria. We're growing very well, and I think we can grow a little bit more in Austria. No, we want to stay with the company. We bought some shares, I think 8% more last quarter. We already have like 60%, if I remember exactly, 59-point-something percent. We used to have 61. So we're growing, and we feel very comfortable; a very good cash flow company. I think it's important also, Walter, to mention that the country has been fully deregulated after having been subject to asymmetric regulation for about 30 years. And that's a little bit what Daniel is mentioning, you know; they want to drive more investment into the sector. I think that there's a lot to be done still on the fixed line side of fiber. There's still a lot to go on fiber, but it's a very good market. B2B is excellent. We're providing a lot of services, not only to Austria but also out of Austria, into Eastern Europe and into Germany, for instance. 4. Okay, thank you.

Daniel Hajj Aboumrad: Well, I think Telecom Austria came with all the Eastern Europe countries, and I think we're growing good in all these countries. These countries are more or less the same size as Austria. We're growing very good, and I think we can grow a little bit more in Austria. No, we want to stay with the company, we bought some shares, I think 8% more last quarter. We already have like 60%, if I remember exactly, 59-point-something percent. We used to have 61%. So we're increasing, and we feel very comfortable, very good cash flow company. I think it's important also, Walter, to mention that the country has been fully deregulated, after having been subject to asymmetric regulation for about 30 years. And that's a little bit what Daniel is mentioning, you know; they want to drive more investment into the sector. I think that there's a lot to be done still on the fixed line side of fiber. There's still a lot to go on fiber, but it's a very good market. B2B is excellent. We're providing a lot of services, not only to Austria but also out of Austria, into Eastern Europe and into Germany, for instance. 4.

Australia.

No. We don't want we want to stay with the company.

We bought some shares I think 8% more.

Last quarter.

Daniel Cash: We're growing very well, and I think we can grow a little bit more in Austria. No, we want to stay with the company. We bought some shares, I think 8% more last quarter. We already have like 60%, if I remember exactly, 59-point-something percent. We used to have 61.

We already have like 60% if I remember exactly 59 point something percent we used to have.

So were increasing and we feel very comfortable and very good cash flow company.

Yeah.

Harold.

I think it is important also Walter.

<unk> mentioned.

You mentioned that the country has been fully regulated.

Having being subject to a symmetric regulation for about 30 years.

Carlos Garcia Moreno: So we're growing, and we feel very comfortable; a very good cash flow company. I think it's important also, Walter, to mention that the country has been fully deregulated after having been subject to asymmetric regulation for about 30 years. And that's a little bit what Daniel is mentioning, you know; they want to drive more investment into the sector. I think that there's a lot to be done still on the fixed line side of fiber. There's still a lot to go on fiber, but it's a very good market. B2B is excellent. We're providing a lot of services, not only to Austria but also out of Austria, into Eastern Europe and into Germany, for instance. 4. Okay, thank you.

This quarter nearly mentioning they want to drive more investment into the sector.

I think that.

There is a lot of these on steel would be on the fixed line side on fiber, there's still a lot to go on fiber.

Carlos Garcia Moreno: I think it's important also, Walter, to mention that the country has been fully deregulated, after having been subject to asymmetric regulation for about 30 years. And that's a little bit what Daniel is mentioning, you know; they want to drive more investment into the sector. I think that there's a lot to be done still on the fixed line side of fiber. There's still a lot to grow on fiber, but it's a very good market. B2B is excellent. We're providing a lot of services, not only to Austria but also out of Austria, into Eastern Europe and into Germany, for instance. Which is very important and has been going surprisingly well. So I think that there's many, many positive things that we can say about the overall investment in Europe, in Austria.

It's a very good market.

B to be excellent with providing a lot of services not only to Austria, but also out of Australia into eastern Europe and into Germany for instance, which is the <unk> and it's been growing.

For pricing as well so I think that there is many.

The positive things that we can say about the overall investment in general from Australia.

Okay. Thank you.

Thank you.

Our next question comes from Marcelo Santos.

<unk> of Jpmorgan. Your line is now open. Please go ahead.

Hi, good morning, and thank you for that.

The questions I have two.

Question would be on Mexican broadband could you talk a bit more about the nature of the <unk>.

<unk> print in Mexican broadband adds.

Higher gross adds lower churn than a regional wangle some areas growing faster than others. So just wanted to understand a bit more.

Walter Piecyk: Okay, thank you.

It's very broad.

Carlos Garcia Moreno: Thank you. Thank you. Our next question comes from Marcelo Santos of JP Morgan. Your line is now open, please go ahead. Hi, good morning. Thank you for taking the questions. I have two.

Thank you. Thank you. Our next question comes from Marcelo Santos of JP Morgan. Your line is now open, please go ahead.

Daniel Hajj Aboumrad: Thank you.

Broadband adds in Mexico, and the second question is on Capex.

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

Very clear the Capex, where you should be $7 billion is a good.

Patient for the years to come do you think that is a sustainable level for the coming years around 7 billion.

Marcelo Santos: Hi, good morning. Thank you for taking the questions. I have two. The first question would be on Mexican broadband. Could you talk a bit more about the nature of the strong print in Mexican broadband ads? What is more, higher gross ads or lower churn? Is there a regional angle, some areas growing faster than others? So I just wanted to understand a bit more this very good broadband ad in Mexico. And the second question is on CapEx. It is very clear that the CapEx for this year should be $7 billion dollars. Is this a good indication for the years to come? Do you think that this is a sustainable level for the coming years, around $7 billion? Thank you.

Thank you.

Marcelo Santos: The first question would be on Mexican broadband. Could you talk a bit more about the nature of the strong print in Mexican broadband ads? What is more important, higher gross ads or lower churn?

Yes.

Mexico program.

As we mentioned before we'd be pushing pretty hard that migration from copper to fiber.

Now 81% of the customers have already connected with fiber.

81%, so we really cover.

Daniel Cash: Is there a regional angle, some areas growing faster than others? So I just wanted to understand a bit more this very good broadband ad in Mexico. And the second question is on CAPEX. It is very clear that the CAPEX for this year should be $7 billion. Is this a good indication for the years to come? Do you think that this is a sustainable level for the coming years, around $7 billion? Thank you. Yes, about the Mexico program. As we mentioned before, we've been pushing pretty hard for the migration from copper to fiber, and now 81% of the customers are already connected to fiber. 81%

Is there a regional angle, some areas growing faster than others? So I just wanted to understand a bit more this very good broadband ad in Mexico. And the second question is on CAPEX. It is very clear that the CAPEX for this year should be $7 billion. Is this a good indication for the years to come? Do you think that this is a sustainable level for the coming years, around $7 billion? Thank you.

Or is it closer to my base with fiber to the home secondly.

Launching in the market are very very unique packages, where the speeds symmetrical speeds that brings value to our customers.

We did some packages that include streaming video platforms included in the broadband.

Has been very well accepted in the market. So.

And another part of it is that we changed on the processes of installation and repair to to have a better customer experience in Mexico.

Carlos Garcia Moreno: Yes, about the Mexico program. As we mentioned before, we've been pushing pretty hard the migration from copper to fiber, and now 81% of the customers are already connected to fiber. 81%. So we really cover all the customer base with fiber to the home. Secondly, we've been launching in the market very, very unique packages with speeds, symmetrical speeds that bring value to our customers. And secondly, we did some packages that include streaming video platforms included in broadband. It has been very well accepted in the market. And another part is that we changed all the processes of installation and repair to have a better customer experience in Mexico. This is why we got very good NetApps, and we believe that we will still continue to get a good proportion of NetApps this year. And on the CapEx, it's too early to say something right now, but I think we're going to do the 7 billion. I think for next year, we also don't see a big spending on the spectrum.

That's why we got a very good mid <unk>, we believe that we will still continue to hearing good proportion of that this year.

And on the Capex, it's too early to say something right now I think we're going to do the the.

Daniel Cash: So we really cover all the customer base with fiber to the home. Secondly, we've been launching in the market unique packages with symmetrical speeds that bring value to our customers. And secondly, we did some packages that include streaming video platforms included in broadband. It has been very well accepted in the market.

$7 billion I think for next year, we don't see also bigger spending some.

Spectrum also so.

And let's see with all of these technologies new technologies that we have been putting all their digitalization I think.

Daniel Cash: And another part is that we changed all the processes of installation and repair to have a better customer experience in Mexico. This is why we got very good NetApps, and we believe that we will still continue to get a good proportion of NetApps this year. And on the CapEx, it's too early to say something right now, but I think we're going to do the 7 billion. I think for next year, we also don't see a big spending on the spectrum.

Yeah.

This year in very good shape I don't know for next year, but.

The.

What I can tell you is that we have the best network by far in Latin America, all around Latin America, and that gave us a good advantage right now.

Daniel Hajj Aboumrad: And on the CapEx, it's too early to say something right now, I think we're going to do the $7 billion. I think for next year, we also don't see a big spending on the spectrum also, and let's see, with all these technologies, new technologies that we have been putting in, all the digitalization, I think we're this year in very good shape. I don't know for next year, but what I can tell you is that we have the best network by far in Latin America, all around Latin America, and that gives us a good advantage right now. We do big investments; good investments. Thank you.

Okay.

We do big investments that you made.

Yes.

Thank you.

Daniel Cash: And let's see, with all these technologies, new technologies that we have been putting in, all the digitalization, I think we're this year in very good shape. I don't know about next year, but what I can tell you is that we have the best network by far in Latin America, all around Latin America, and that gives us a good advantage right now. We do big investments; good investments. Thank you. Our next question comes from the line of Andrew Sellers of UBS. Your line is now open, please go ahead. Hi everyone. Good morning. Thanks for taking my question here. I have two on my side.

And let's see, with all these technologies, new technologies that we have been putting in, all the digitalization, I think we're this year in very good shape. I don't know about next year, but what I can tell you is that we have the best network by far in Latin America, all around Latin America, and that gives us a good advantage right now. We do big investments; good investments. Thank you.

Thank you.

Our next question comes from the line of Andrew <unk> of UBS. Your line is now open. Please go ahead.

Yeah.

Hi, everyone. Good morning, Thanks for taking my question here and then two on my side the first.

First one is about margins in Mexico, I know you had some one timers that water will be.

Do you see the margin.

Also what we model.

Fourth quarter, and which factors could drive.

Our next question comes from the line of Andrew Sellers of UBS. Your line is now open, please go ahead. Hi everyone. Good morning. Thanks for taking my question here. I have two on my side.

Operator: Thank you. Our next question comes from the line of Andrew Sellers of UBS. Your line is now open, please go ahead.

Marcelo Santos: Thank you.

Thanks for that expansion the agents want to know how the companies building above current levels.

Mexico.

The second question is about Argentina, so besides business relationships.

Andrew Sellers: Hi everyone, good morning, thanks for taking my question here. I have two on my side. The first one is about margins in Mexico. I know you had some one time in last quarter, but do you see the margin expanding closer to what we had in 2022's fourth quarter, and which factors could drive this potential expansion? We just want to know how the company is feeling about current levels of margins in Mexico [inaudible]. And the second question is about Argentina. So besides the translation effect, what other factors are you guys monitoring in your country? I'm talking about broader terms here, such as impact on your customers, maybe higher [inaudible] rates or lower frequency of the charges [inaudible], and any changes in the regulatory agency in your country.

What other factors within the country.

Andrew Sellers: The first one is about margins in Mexico. I know you had some one time last quarter, but do you see the margin expanding closer to what we had in 2022's fourth quarter, and which factors could drive this potential expansion? We just want to know how the company is feeling about current levels of margins in Mexico and Vista. And the second question is about Argentina.

Broadly yes.

Okay.

Delinquency rates are lower.

And I know we are doing.

Agency.

Sure.

Hello.

Yes, we cannot hear your question on <unk>. Your line is not so good.

I'm sorry, yes, the first question.

Sorry about that.

Andrew Sellers: So besides the translation effect, what other factors are you guys monitoring in your country? I'm talking about broader terms here, such as impact on your customers, maybe higher deletion rates or lower frequency of the charges in the state, and any changes in the regulatory agency in your country. Hello, we cannot hear you. Your line is not so good. I'm sorry.

So besides the translation effect, what other factors are you guys monitoring in your country? I'm talking about broader terms here, such as impact on your customers, maybe higher deletion rates or lower frequency of the charges in the state, and any changes in the regulatory agency in your country.

Pricing is about margin in Mexico.

If you have market.

Yes.

Hi, Jeff.

Well there might be any yet.

Just the same as last year I think we have a very good margin other 40 sand.

I can tell you that the Mexico.

Daniel Hajj Aboumrad: Hello, we cannot hear you. Your line is not so good. I'm sorry.

A lot of promotions be competition.

In mobile and in fixed and.

Andrew Sellers: Yeah. Yeah. The first question is about margin. Sorry about that. But the first question is about margin in Mexico.

And what we're doing is we are really putting cost.

Daniel Cash: But the first question is about margin in Mexico. Well, the margin in Mexico is just the same as last year. I think we have a very good margin, over 40.

But the first question is about margin in Mexico.

Doing a lot of digitalization for the cost.

Well, the margin in Mexico is just the same as last year. I think we have a very good margin, over 40. And I can tell you that in Mexico, there are a lot of promotions, big competition in mobile and in fixed. And what we're doing is we are really cutting costs, doing a lot of digitalization on the cost side, and having good plans. And that's more or less what we're doing. I think we can sustain this margin for next year. We are growing in Mexico; something that is starting to grow very well in 2023 against 2022 is our postpaid basis is starting to grow very well in 2023. So that allows us to have better customers, higher customers. So that's something that is doing well in Mexico. I think it's important to focus on the adjusted EBITDA in Mexico. If you correct for the sale of Telmex towers that took place in the last quarter of 2022, then the margin collected for this was 40.2%.

Daniel Hajj Aboumrad: Well, the margin in Mexico is just the same as last year. I think we have a very good margin, over 40. And I can tell you that in Mexico, it's a lot of promotions, big competition, in mobile and in fixed. And what we're doing is we are really cutting costs, doing a lot of digitalization for the cost side, and having good plans. And that's more or less what we're doing. I think we can sustain this margin for next year. We are growing in Mexico; something that's been very good in 2023 against 2022 is our postpaid basis is starting to grow very good in 2023. So that allows us to have better customers, high ARPU customers. So that's something that is doing good in Mexico. I think it's important to focus on the adjusted EBITDA in Mexico. If you correct for the sale of Telmex towers that took place in the last quarter of 2022, then the margin collected for this was 40.2%. It has increased for this year to 40.6%, on that basis. So we've had an increase in margins in Mexico, and I think that we will continue to increase in this area. And on Argentina, I don't know. What's your question about Argentina?

Syed and.

Having good plans.

Daniel Cash: And I can tell you that in Mexico, there are a lot of promotions, big competition in mobile and in fixed. And what we're doing is we are really cutting costs, doing a lot of digitalization on the cost side, and having good plans. And that's more or less what we're doing. I think we can sustain this margin for next year.

That's more or less what.

What we're doing I think that we can sustain these margin four.

For next year.

We're growing in Mexico something that.

Being very good in 2023 against 2022 as our postpaid base is starting to grow very well in 2023, so that allow us to have.

Carlos Garcia Moreno: We are growing in Mexico; something that is starting to grow very well in 2023 against 2022 is our postpaid basis is starting to grow very well in 2023. So that allows us to have better customers, higher customers. So that's something that is doing well in Mexico. I think it's important to focus on the adjusted EBITDA in Mexico. If you correct for the sale of Telmex towers that took place in the last quarter of 2022, then the margin collected for this was 40.2%.

Better customers.

<unk> customer so that's something that it's doing good in Mexico.

Only to add two quarters, I'm really saying.

I think it's important to focus on the <unk>.

Adjusted EBITDA in Mexico.

You correct for the sale of Telmex towers that took place in the last quarter of 2022.

I think it's important to focus on the adjusted EBITDA in Mexico. If you correct for the sale of Telmex towers that took place in the last quarter of 2022, then the margin collected for this was 40.2%. It has increased for this year to 40.6%, on that basis. So we've had an increase in margins in Mexico, and I think that we will continue to increase in this area. And on Argentina, I don't know. What's your question about Argentina?

Carlos Garcia Moreno: Only to add to what Daniel is saying, I think it's important to focus on the adjusted EBITDA in Mexico. If you correct for the sale of Telmex towers that took place in the last quarter of 2022, then the margin collected for this was 40.2%. It has increased for this year to 40.6%, on that basis. So we've had an increase of margins in Mexico, and I think that we will continue to increase in this area. And on Argentina, I don't know. What's your question about Argentina?

Then.

The margin for these were 42%.

It has increased for the year to 44, 6% on that basis. So we've had an increase of margins in Mexico.

Carlos Garcia Moreno: It has increased for this year to 40.6%, on that basis. So we've had an increase in margins in Mexico, and I think that we will continue to increase in this area. And on Argentina, I don't know. What's your question about Argentina? Yes, yes. I want to know in broader terms here about Argentina.

It has increased for this year to 40.6%, on that basis. So we've had an increase in margins in Mexico, and I think that we will continue to increase in this area. And on Argentina, I don't know. What's your question about Argentina?

And I think that we will continue to increase.

Yes.

And I.

I don't know what what's your question on Argentina.

Daniel Hajj Aboumrad: And on Argentina, I don't know. What's your question on Argentina?

Yes, I want to not only brought about by the PUC.

Andrew Sellers: Yes, yes. I want to know in broader terms here about Argentina. Do you see some factors that we need to monitor, such as impacting customers with everything that's happening in the country, higher delinquency rates, lower frequency of recharges in prepaid? Do you see any of that or it's too early here to tell?

We need to monetize a chance.

Andrew Sellers: Do you see some factors that we need to monitor such as impacting customers with everything that's happening in the country, higher delinquency rates, lower frequency of recharges in prepaid? Do you see any of that or it's too early here to tell? Well, in Argentina, I think the operations are doing good, we're growing, we're allowing to increase some prices because of the inflation, and we have a very good growth in the PIX broadband, in the PIX broadband we have been growing the last two years, PAY-TV we're growing, in the mobile, so the operations in Argentina are good, and we're growing our RGUs in Argentina like 26%, we end the year with 3.2 million RGUs in Argentina, 4.4 more in wireless, so we are doing good, I hope that Argentina, with all these changes, goes to a better economy, and we are still investing and doing what we need to do in Argentina, so we think that Argentina is very important for us, and that in the next years maybe we can see a much better economy, and we're going to be much stronger than what is today Argentina, super-cleared and, Yeah, yeah. No, as Daniel mentioned, that was great.

Do you see some factors that we need to monitor such as impacting customers with everything that's happening in the country, higher delinquency rates, lower frequency of recharges in prepaid? Do you see any of that or it's too early here to tell?

Got it.

Anything that is happening in the country higher delinquency rates lower.

The lower throughput.

The chart in prepaid.

Are you seeing any any bad or it's too early.

Paul.

Well, what's the what's the word.

Daniel Hajj Aboumrad: Well, in Argentina, I think the operations are doing good, we're growing, we're allowing to increase some prices because of the inflation, and we have a very good growth in the PIX broadband, in the PIX broadband we have been growing the last two years, pay-TV we're growing, in the mobile. So the operations in Argentina are good, and we're growing our RGUs in Argentina like 26%, we end the year with 3.2 million RGUs in Argentina, 4.4 more in wireless, so we are doing good, I hope that Argentina, with all these changes that goes to a better economy, and we are still investing and doing what we need to do in Argentina. So we think that Argentina is very important for us, and that in the next years maybe we can see a much better economy, and we're going to be much stronger than what is today Argentina. super-cleared and, Yeah, yeah. No, as Daniel mentioned, that was great.

I think the operations are doing good we're growing we're allowing to increased some prices because of inflation in the in the <unk>.

Have a very good growth in the fixed broadband.

And we have been growing the last two years.

Pay TV, we're growing.

In the mobile they operations in Argentina are.

Good.

We're growing aware jus in Argentina like 26, <unk>, we have three point, we ended the year with $3 2 million.

Are you using Argentina.

The $4 four more in wireless so we are doing good.

I hope and.

That Argentina with all these changes.

Close to a better.

Our economy.

We are still investing and doing what we need to do in Argentina. So we think that Argentina is very important for us.

<unk>.

In the next years, maybe we can see much better economy.

We're going to be much stronger than what these today Argentina.

Let's see.

I don't know.

Super clear.

Andrew Sellers: Super clear, yeah. No, as Daniel mentioned, that was great.

Andrew Sellers: Super clear, yeah.

Yeah Yeah.

No.

Carlos Garcia Moreno: No, as Daniel mentioned, that was--

Okay.

As Daniel mentioned, let's clear Thanks My brother.

Andrew Sellers: Thanks for that. Thank for the answers. Andre, Andre, we cannot hear you.

Andrew Sellers: Thanks for that. Thank for the answers.

Daniela Lecuona: Andre, Andre, we cannot hear you. If you have a question, email it to me, and we can maybe move forward with the next question. Thank you. Our next question comes from the line of Flanny Kanumari of HSBC. Your line is now open. Please go ahead.

Daniela Lecuona: Andre, Andre, we cannot hear you. If you have a question, email it to me, and we can maybe move forward with the next question.

Okay.

We cannot hear you if you have.

Candice: If you have a question, email it to me, and we can maybe move forward with the next... Thank you. Our next question comes from the line of Flanny Kanumari of HSBC. Your line is now open. Please go ahead.

My timeline.

Good question.

We can maybe move forward.

The next.

Question.

Operator: Thank you. Our next question comes from the line of Phani Kanumuri of HSBC. Your line is now open. Please go ahead.

Thank you. Our next question comes from the line of Bonnie.

Maury.

P. J. Your line is now open. Please go ahead.

Phani Kanumuri: Thank you for taking my questions. The first question is that, in line with your CapEx guidance, we can expect an increase in cash flow. What would be the use of the cash flow? Are you looking at de-leveraging or giving it back to the shareholders? So that's the first question. The second question is regarding Chile. How long do you think it will be before Chile can become a self-sustaining operation by itself, and how much equity infusion would likely be needed in Chile going forward? Thank you. OK. So on the first question, the cash flow, as we have said up until now, we don't expect it to reduce our leverage further. I think that we would want to remain in a band between 1.3 and 1.5 times net debt to IBICA. So that's one of the objectives.

Thank you for taking my questions. The first question and Scott.

In line with the Capex guidance, we can expect an increase in cash flow what would be that you would look to cash flow are you looking at data imaging.

Carlos Garcia Moreno: Are you looking at de-leveraging or giving it back to the shareholders? So that's the first question. The second question is about Chile.

Given the back to the shareholders. So off the first question.

The second question is you're getting chimney.

How long do you think it could be come before making become self sustaining.

Daniel Cash: How long do you think it will be before Chile can become a self-sustaining operation by itself and how much equity infusion would likely be needed in Chile going forward? OK. So on the first question, the cash flow, as we have said up until now, we don't expect it to reduce our leverage further. I think that we would want to remain in a band between 1.3 and 1.5 times net debt to IBICA. So that's one of the objectives.

Operations by itself and how much equity infusion would likely be needed in Chile going forward.

Thank you.

Okay.

So on the first question.

Carlos Garcia Moreno: Okay, so on the first question, the cash flow, as we have said up until now, we don't expect to reduce our leverage further. I think that we would want to remain in a band between 1.3 and 1.5 times net debt to EBITDA. So that's one of the objectives. We don't have anything on M&A currently in the plan, so essentially this means that whatever excess cash flow there is will be distributed back to shareholders. And on Chile, I think all the synergies we have been working in the company, all the synergies have been doing very well, the operations improving, and the management, we're reducing costs, we're putting a much better network, we're doing capacity, we're doing a lot of things in Chile, and we're working for the long term, and I think we can position the company together, it's a company over one billion dollars, so it's big enough to compete and to be a competitive company in Chile. It is a company that has many advantages, as has been pointed out. It has some challenges as well.

The cash flow.

As we have said Oh, Okay now we don't expect to.

Reduce our leverage further I think that we will.

Want to remain in that band if you one three and one five times net debt to EBITDA. So that's that's one of the objectives.

Carlos Garcia Moreno: We don't have anything on M&A currently in the plan, so essentially this means that whatever excess cash flow there is will be distributed back to SHEP. And on Chile, I think all the synergies we have been working in the company, all the synergies have been doing very well, the operations improving, and the management, we're reducing costs, we're putting a much better network, we're doing capacity, we're doing a lot of things in Chile, and we're working for the long term, and I think we can position the company together, it's a company over one billion dollars, so it's big enough to compete and to be a competitive company in Chile. It is a company that has many advantages, as has been pointed out. It has some challenges as well.

We don't have anything on M&A.

Sure.

Yes.

The plan.

So.

Essentially this means that whatever excess cash flow there is would it be distributor.

Distributed back to shareholders.

Daniel Hajj Aboumrad: And on Chile, I think what the all the synergies we have been working in the company, all the synergies has been doing very well, the operations improving, and the management, we're reducing costs, we're putting a much better network, we're doing capacity, we're doing a lot of things in Chile, and we're working for the long term, and I think we can position the company together. It's a company over one billion dollars, so it's big enough to compete and to be a competitive company in Chile. It is a company that has many advantages, as has been pointed out. It has some challenges as well. It's a difficult operating environment, and there's plenty to do over the next... 2 to 3 years, but as Daniel says, what we are focused on is the long term. And we expect that, in the long term, this will be a good investment. Yeah. I just want to add that we have the right man.

And until I think.

What are the synergies we have been working in the company all the synergies has been doing very well.

Operations.

Improving and.

Well the management.

Management, we're reducing costs, while putting a much better network. We're doing capacity, we're doing a lot of things in Chile, and we're working for the long term and I think we can position the company together as a company over $1 billion rates and big enough to compete them too.

To be.

Competitive company in Chile.

Okay.

Daniel Hajj Aboumrad: Chile. It is a company that has many advantages, as has been pointed out. It has some challenges as well. It's a difficult operating environment, and there's plenty to do over the next... 2 to 3 years, but as Daniel says, what we are focused on is the long term. And we expect that, in the long term, this will be a good investment. Yeah. I just want to add that we have the right man.

It is.

Carlos Garcia Moreno: It is a company that has many advantages, as has been pointed out. It has some challenges as well. It's a difficult operating environment, and there's plenty to do over the next two to three years, but as Daniel says, what we are focused on is the long term. And we expect that, in the long term, this will be a good investment. Yeah. I just want to add that we have the right man.

It is a company that has many advantages as has been pointed out.

Some challenges.

It's so difficult operating environment.

Daniel Cash: It's a difficult operating environment, and there's plenty to do over the next... 2 to 3 years, but as Daniel says, what we are focused on is the long term. And we expect that, in the long term, this will be a good investment. Yeah. I just want to add that we have the right man.

There's plenty to do over the next time.

Three years, but as Daniel said, we are focused on is the long term.

And we expect that long term because it would be an investment.

Yes.

Hi, Joe I will add that we have the rent.

Daniel Hajj Aboumrad: Yeah. I just want to add that we have the right management in place.

Space.

Yes.

Daniel Cash: Yeah, okay. Thanks, everyone. Thank you. Our next question comes from the line of Fred Mendes of Bank of America. Your line is now open. Please go ahead.

Phani Kanumuri: Thanks, everyone.

Okay.

I'm sorry.

Thank you. Our next question comes from the line of Fred Mendes of Bank of America. Your line is now open. Please go ahead.

Daniel Hajj Aboumrad: Thank you.

Operator: Our next question comes from the line of Fred Mendes of Bank of America. Your line is now open. Please go ahead.

Thank you.

Okay.

Thank you.

Our next question comes from the line of Fred Mendes of Bank of America. Your line is now open. Please go ahead.

Hello, Good morning.

Fred Mendes: Hello, good morning, everyone, and thanks for the call. I have two questions as well. The first one is about [inaudible] and, in particular, about ARPU. Do you think that the ARPUs are where they should be, pretty much, or do you think there is room for a more aggressive pricing strategy, especially on postpaid? I think Daniel mentioned that ARPUs have been increased mainly on prepaid, so I was just wondering if you see room for a more aggressive pricing strategy in 2024 for postpaid. And then the second one is on Brazil, and mainly the mobile market as well. We are seeing other players, for example, they give a guidance for the next three years of real growth, top line growth, especially to price increase. So my point is, do you think that that's the trend, that at least we expect internally for Brazil for the next three years, like real growth on mobile to price increase, or do you think that eventually someone could try to gain market share and be more aggressive on price and make it a more, let's say, more challenging market? [inaudible] the expectations for Brazil for next year. Thank you.

Everyone and thanks for the call I have two questions as well the first one is on sale.

And then maybe or not.

Daniel Cash: Do you think that the ARPUs are pretty much where they should be? Or do you think there is room for a more aggressive pricing strategy, especially on postpaid? I think Daniel mentioned that ARPUs have been increased mainly on prepaid, so I was just wondering if you see room for a more aggressive pricing strategy in 2024 for postpaid. And then the second one is on Brazil, and mainly the mobile market as well.

Do you think that the apples they are where they should be pretty much. All we think there is room for a florida more aggressive pricing strategy, especially on postpaid I think Daniel mentioned that.

Was that the increase mainly prepaid. So I was just wondering if you see room for a more aggressive pricing strategies in 2024.

Great.

And then the second one is on Brazil.

And maybe the mobile market as well we are seeing other players for example, they gave a guidance for next three years of real growth top line growth, especially to price increase.

Daniel Cash: We are seeing other players, for example, they give guidance for the next three years of real growth, top line growth, especially price increase. So my point is, do you think that that's the trend that at least we expect internally for Brazil for the next three years, like real growth on mobile with price increases, or do you think that eventually someone could try to gain market share and be more aggressive on price and make it a more, let's say, challenging market? These are the expectations for Brazil for next year.

My point is do you think that that's the trend that at least we expect to internally for Brazil for the next three years like real growth on the mobile through price increase or do you think that eventually someone could try to gain market share it would be more aggressive on price and make it a more let's say more challenging market.

Expectations for Brazil next year. Thank you.

Daniel Cash: Thank you. Well, let's talk about the ARPUs in Mexico. What I can tell you, Fred, is that we have the best 5G network, and what we're seeing is that 5G subscribers are using it more and upgrading their plans. And that's the trend that we're seeing all around Latin America, and as people are moving more to 5G, they are getting better plans. On the other hand, we have a lot of competition and a lot of promotions, and, well, that's another thing.

Thank you.

Well.

Daniel Hajj Aboumrad: Well, let's talk about the ARPUs in Mexico. What I can tell you, Fred, is that we have the best 5G network, and all what we're seeing is that 5G subscribers are using more and upgrading their plans. And it's the trend that we're seeing all around Latin America, and as people is moving more to 5G, they are getting better plans. In the other side, we have a lot of competition and a lot of promotions, and, well, that's the other, but I think the ARPUs in prepaid, we have been doing good. Our prepaid is growing around 4%, and postpaid is growing about 2%. So, all overall, it's okay. I think we can sustain that, and with the network, the quality, people is choosing to move to Telcel. Number portability is doing also good. So, all in all, we are doing good, but in the other side, we have big promotions from Altan and all the other competitors. So, that's what you see in Mexico, and, well, let's see how it's going to behave for this year. And in Brazil, I don't understand what your question, is that whether we're going to have real growth in postpaid, is what you're saying? Yes, Daniel.

Let's talk about the Arpus in Mexico.

What I think.

I can tell you is that that we can.

The best <unk> network and.

What we're seeing is that fair.

<unk> subscribers are using more and are upgrading their plans.

It's the trend that we're seeing all around Latin America, and as people list will be more.

They are getting a better plans in the other side, we have a lot of competition and a lot of promotions.

And whether that's the <unk>.

Daniel Cash: But I think the ARPUs in prepaid have been doing good. Our prepaid is growing around 4%, and postpaid is growing about 2%. So, all over, it's okay.

But I think the.

They are close in prepaid we have been doing good our prepaid is growing around.

4% in postpaid is growing at about the two four so all overall its its okay. I think we can sustain that.

Daniel Cash: I think we can sustain that, and with the network, and the quality, people are choosing to move to Telcel. Number portability is also doing well. So, all in all, we are doing good. But on the other side, we have big promotions from Altan and all the other competitors. So, that's what you see in Mexico, and, well, let's see how it behaves this year. And in Brazil, I don't understand what your question is, that whether we're going to have real growth in postpaid, is that what you're saying? Yes, Daniel.

And.

And with the network the quality people is choosing to move to set a number portability is doing also good so all overall.

Yeah.

We are doing both booked in the other side, we have big promotions from.

At this time.

All of the other competitors, so that's what you'll see in Mexico and well let's.

Let's see how it is going to behave for this year and in Brazil.

Yes.

What is going on there.

And what your question is that if we're going to have real growth in postpaid is what youre, saying.

Yes.

Daniel Hajj Aboumrad: Yes, Daniel. Basically, I mean, one of the other players in Brazil, they already published guidance for the next three years of real growth, that expectation, and that's coming mainly through price increases. So my question to you guys is, if you expect, you're seeing the same angle as these other players in Brazil are seeing, or do you believe that, eventually, the market could get more aggressive with someone trying to gain, let's say, more market share? I think we want more market share, but we are not going to do crazy things. I think Brazil is a market where you need to do intelligent things, and if there is a possibility to increase prices, we have been increasing prices in the last year, so I think if there is an opportunity and inflation still allows us to increase prices, we will increase prices.

Fred Mendes: Yes, Daniel. Basically, I mean, one of the other players in Brazil, they already published guidance, right, for the next three years of real growth, that expectation, and that's coming mainly through price increases. So my question to you guys is, if you expect a similar, if you're seeing the same angle as these other players in Brazil are seeing, or do you believe that, eventually, the market could get more aggressive with someone trying to gain, let's say, more market share?

Yes, Daniel basically I mean, one of the other players in Brazil, They already publish our guidance for next three years for real growth at that expectation and that's coming mainly for two price increase. So my question to you guys.

Fred Mendes: Basically, I mean, one of the other players in Brazil, they already published guidance for the next three years of real growth, that expectation, and that's coming mainly through price increases. So my question to you guys is, if you expect, you're seeing the same angle as these other players in Brazil are seeing, or do you believe that, eventually, the market could get more aggressive with someone trying to gain, let's say, more market share? I think we want more market share, but we are not going to do crazy things. I think Brazil is a market where you need to do intelligent things, and if there is a possibility to increase prices, we have been increasing prices in the last year, so I think if there is an opportunity and inflation still allows us to increase prices, we will increase prices.

You expect that seem that youre seeing the same angle as these all these players in Brazil are seeing ill leave that eventually the market could get more aggressive.

Similar to my answer gain let's say more more market share.

Yeah.

Daniel Hajj Aboumrad: I think we want more market share, but we are not going to do crazy things. I think Brazil is a market where you need to do intelligent things, and if there is a possibility to increase prices, we have been increasing prices in the last year, so I think if there's an opportunity and still inflation allows us to increase prices, we are going to increase prices. But we are going to compete, and we want to have market share. So both, we want to increase prices because the inflation and the costs requires, but with the network, with the 5G, with the coverage, all the investments that we have been doing on the commercial side, I think we can still grow a little bit of market share. On the big side also, we are leaders in ultra broadband, leaders in IPTV, so that, to do the convergence and leaders in broadband, to do all the combos that we're doing there, also helps us to grow.

We want more market share, but we are not.

<unk> going to do Crazy things I think Brazil is.

It's a market where you need to do intelligent <unk> and <unk>.

If there is a possibility to increase prices, we have been increasing prices in the last year. So I think if there is an opportunity and still the inflation that allow us to increase prices, we are going to increase prices, but we're going to compete and we want to have a market share. So both.

Daniel Cash: But we are going to compete, and we want to have market share. So both of us want to increase prices because inflation and the cost require it, but with the network, with 5G, with coverage, all the investments that we have been doing on the commercial side, I think we can still grow a little bit of market share. On the big side also, we are leaders in ultra broadband, leaders in IPTV, so that to do the convergence and to be leaders in broadband, to do all the combos that we're doing there, also helps us to grow. Perfect.

That where we want to increase prices because the inflation and the costs are.

It requires.

Yes.

We the network with a <unk> with a call that.

All the investments that we have been doing in the commercial side I think we can still grow a little bit of market share.

Perfect.

And also we're leaders in ultra broadband leader Nike TB, so that the total debt compared Jens.

No.

Leaders in broadband to do all the combos that we're doing there and also help us to grow there.

Great.

Perfect very clear thank you.

Fred Mendes: Perfect, very clear. Thank you. Thank you. Next question comes from the line of Carlos Lagareta from ITAU. Your line is now open. Please go ahead. Thank you. Good morning, everybody.

Fred Mendes: Perfect, very clear. Thank you.

Thank you.

Operator: Thank you. The next question comes from the line of Carlos de Legaretta from Itau. Your line is now open. Please go ahead. Thank you. Good morning, everybody.

Operator: Thank you. The next question comes from the line of Carlos de Legaretta from Itau. Your line is now open. Please go ahead.

Thanks Kim.

The next question comes from the line of Carla Baca Huerta from.

Your line is now open. Please go ahead.

Carlos de Legaretta: Thank you. Good morning, everybody. The first question is based on Mexico and the [inaudible]. If you could talk about the possibility of breaking prices, if the environment allows you to do that, both on prepaid and postpaid. And the second question is-- sorry, sorry, wait, wait, go ahead, go ahead, go ahead, go ahead. We don't, we don't hear you. Can you repeat that question? Because the line is also not clear.

Thank you good morning, everybody.

The first question Mexico.

Carlos Lagareta: The first question is based on Mexico and the wider type. If you could talk about the possibility of breaking prices, if the environment allows you to do that, both on prepaid and pro-prepaid. And the second question is, sorry, sorry, wait, wait, go ahead, go ahead, go ahead, go ahead. We don't, we don't hear you. Can you repeat that question? Because the line is also not clear.

On the wireless type.

Talk about the <unk>.

Also building hopefully can prices.

<unk> environment allows you to move up.

On prepaid and postpaid.

Second question.

Carlos de Legaretta: sorry, sorry, wait, wait, go ahead, go ahead, go ahead, go ahead. We don't, we don't hear you. Can you repeat that question? Because the line is also not clear.

Daniel Hajj Aboumrad: Sorry, sorry, wait, wait

Is there any target.

Carlos de Legaretta: go ahead, go ahead, go ahead, go ahead. We don't, we don't hear you. Can you repeat that question? Because the line is also not clear.

Carlos de Legaretta: Go ahead, go ahead, go ahead.

Okay.

All right.

Daniel Hajj Aboumrad: We don't, we don't hear you. Can you repeat that question, because also the line is not clear.

So we don't we don't hear you can you repeat that question because also the line is not clear.

Sorry about that.

Carlos de Legaretta: Sorry about that. I hope this is better. [Yeah.] Just on wireless in Mexico, if you could talk about the environment that allows you to perhaps increase prices during this year, both on prepaid and postpaid. And secondly, in for Telmex, it looks like there's a number of developments going on, the two-year review of the regulatory asymmetric measures, perhaps changes in regulation schemes in Mexico, and obviously, you know, the recent statements by your chairman. [inaudible] [inaudible] So if you can talk a little bit about what's going on there, because the actual results in broadband you already covered [inaudible] pretty good, so what are your thoughts [inaudible] would also be helpful. Thank you. In Telmex, we have been, we don't have, I think, we don't have pay TV, and if you check the market share that we have between pay TV, broadband, and fixed, I think we have around 30.6%. So, I don't think they should regulate a company like that any more. We expect that they will deregulate some of the measures. So, that's what we expect.

Yes.

Just on wireless in Mexico, if you could talk about.

Environment allows you to perhaps increase prices during this year.

Prepaid or.

Postpaid.

Secondly in hotel it makes it look like for a number of developments going on.

Yes.

The two year review of the regulatory metric measures, perhaps changes in regulation scheme in Mexico.

And obviously you know that.

The recent statements on your term.

Nobody.

So if you can talk a little bit about what's going on there because the actual proposal.

And brought on the.

You've recovered were pretty good.

What are your thoughts and comments in general.

Helpful. Thank you.

Okay.

In terms of the regulation, we hope that.

Things will be deregulated in telmex, we have been we don't have a I think we don't have pay TV and if you check the market share that we have.

Daniel Hajj Aboumrad: In terms of the regulations, we hope that things will be deregulated. In Telmex, we have been, we don't have, I think, we don't have pay TV, and if you check the market share that we have between pay TV, broadband, and fixed, I think we have around 30.6%. So, I don't think they should regulate more a company like that. We expect that they will deregulate some of the measures. So, it's what we expect. We only have 31% of the market on the fixed side, so we don't think that will become. In Mexico, in the wireless sector, to increase prices, we don't know. We have a lot of customers in post-paid with a contract. So, when they finish their contract, we can do something, but we cannot do anything until they finish their contract. We are putting in contracts a lot of subscribers, but we still don't think, at this time, we don't think that we are going to increase prices. What we think is that we can give more to our customers to upgrade their plans right now. So, it's what we are working on and giving more for more. So, it's the strategy that we are doing and what we are thinking for this year in Mexico.

In pay TV broadband and fixed I think we have around 30%, 36%. So I don't think they should.

Regulate more a company like that we expect to that they.

We regulate some of them measure so it's what we expect we only have 30 point 31 or.

Daniel Cash: We only have 31% of the market on the fixed side, so we don't think that will happen. In Mexico, in the wireless sector, to increase prices, we don't know. We have a lot of customers with a contract. So, when they finish their contract, we can do something, but we cannot do anything until they finish their contract.

31% of the market and in the fixed side. So we don't think.

That will become in Mexico in the in the wireless sector to increase prices, we don't know we'd.

We have a lot of customers with the in postpaid with a contract so.

When they finished their contract we can do something but we cannot do anything until they finish their contract we are putting in contract a lot of subscribers.

Daniel Cash: So, we are putting in contracts with a lot of subscribers, but we still don't think, at this time, we don't think that we are going to increase prices. What we think is that we can give more to our customers to upgrade their plans right now. So, it's what we are working on and giving more for more. So, it's the strategy that we are doing and what we are thinking about for this year in Mexico. Thank you, Daniel. And a follow-up, if I may, perhaps, for Carlos. I mean, first of all, congratulations on the debt issue. And I'm just wondering if you could do further DHE-related issues on the road so you can help lower your cost of financing.

So, we are putting in contracts with a lot of subscribers, but we still don't think, at this time, we don't think that we are going to increase prices. What we think is that we can give more to our customers to upgrade their plans right now. So, it's what we are working on and giving more for more. So, it's the strategy that we are doing and what we are thinking about for this year in Mexico.

We still don't think at this time, we don't think that we are going to increase prices. What we think is that we can give more to our customers to operate their plan.

Right now so it is what we are working on and give more for more so.

It's the strategy that we are doing and what we are thinking for this year in Mexico.

Carlos de Legaretta: Thank you, Daniel. And a follow-up, if I may, perhaps, for Carlos. I mean, first of all, congratulations on the debt issue. And I'm just wondering if you could do further [inaudible]-related issues down the road so you can help lower your cost of financing.

Thank you and then.

Follow up if I may perhaps for Congress.

First of all congratulations on the debt issue.

And I just wondering if you could do further.

<unk> related issues on the road. So you can lower your cost of financing.

Carlos Garcia Moreno: Thank you, Carlos. I think, you know, we launched this program a few months ago which is Global Peso Notes, which is basically to be sold to both local investors and international investors. I think it's gotten a lot of traction. We intend it to become a very, very liquid program, probably the best alternative to an [inaudible] in Mexico. And yes, I think that we will continue the ideas to bring the market two to three times a year, including the openings of the bonds. And I think that we will definitely be coming back to the Mexico, to the Mexican or the international market with Peso Notes at least once more this year. , www.adclinic.com. Thank you. As a reminder, if you'd like to ask a question, please press start, followed by 1 on your telephone keypad. Our final question comes from Alexandro Azar from QVM. Your line is now open, please go ahead. Hi, good morning. Thank you for taking my question. It's a quick one.

Yeah.

Thank you Carlos.

Well I think.

We launched.

This program a few months ago.

Tucson.

Well personal note.

This is basically to be sold to more broker indexes and international investors.

Carlos Garcia Moreno: We intend it to become a very, very liquid program, probably the best alternative to an e-bonus in Mexico. And yes, I think that we will continue the idea to bring the market two to three times a year, including the openings of the bonds. And I think that we will definitely be coming back to the Mexican or the international market with PesoNotes at least once more. Did not, www.adclinic.com. Thank you. As a reminder, if you'd like to ask a question, please press start, followed by 1 on your telephone keypad. Our final question comes from Alexandro Azar from QVM. Your line is now open, please go ahead. Hi, good morning. Thank you for taking my question. It's a quick one.

<unk> got a lot of traction.

To become a very very liquid program project based alternative to when they're going up in Mexico.

Yes, I think that we will continue with the.

I've yet to win the market two to three times a year.

Including the reopening of the bonds.

I think that we will definitely be coming back to the sequel to the Michigan or the international market.

At least once more this year.

It's not too.

Okay.

Thank you for that.

Carlos Garcia Moreno: , www.adclinic.com. Thank you. As a reminder, if you'd like to ask a question, please press start, followed by 1 on your telephone keypad. Our final question comes from Alexandro Azar from QVM. Your line is now open, please go ahead. Hi, good morning. Thank you for taking my question. It's a quick one.

Carlos Garcia Moreno: Thank you for that. Thank you.

Carlos de Legaretta: Thank you for that.

Thank you.

Carlos Garcia Moreno: Thank you.

Operator: Thank you. As a reminder, if you'd like to ask a question, please press star followed by 1 on your telephone keypad. Our final question comes from Alejandro Azar Wabi from GBM. Your line is now open, please go ahead. Hi, good morning. Thank you for taking my question. It's a quick one.

Thank you.

A reminder, if you'd like to ask a question. Please press star followed by one of your telephone keypad.

Our final question comes from Alexandra <unk> from key BN. Your line is now open. Please go ahead.

Alejandro Azar Wabi: Hi, good morning. Thank you for taking my question. It's a quick one. And I just want to understand on your free cash flow that the working capital. During the last three years, you guys have taken close to 100 billion in working capital. I just wondering what's happening on those accounts? Which account is the reason? And how should we see working capital for AMX in 2024? Or perhaps going forward? Thank you. No, I mean, if you'd like, we can review these separately, but I think, generally, working capital basically breaks even every year. It is very seasonal, so depending on what numbers you're looking at, you might be looking at increases in working capital because it increases significantly during the first six or seven months of the year, and then it goes down later.

Alejandro Azar Wabi: Hi, good morning. Thank you for taking my question. A quick one. I just want to understand on your free cash flow the working capital. During the last three years, you guys have taken close to 100 billion in working capital uses. I just wondering what's happening on those accounts? Which account is the reason? And how should we see working capital for AMX in 2024, or perhaps going forward? Thank you.

Hi, Good morning. Thank you for taking my question a quick one.

Alejandro Gallostra: And I just want to understand on your free cash flow that the working capital. During the last three years, you guys have taken close to 100 billion in working capital. I just wondering what's happening on those accounts? Which account is the reason?

And I just wanted to understand on your free cash flow the working capital in the last.

Three years, you guys have taken close to 100 billion in working capital uses.

Just wondering.

What's happening on those accounts, which account is the reason.

Carlos Garcia Moreno: And how should we see working capital for AMX in 2024? Or perhaps going forward? Thank you. No, I mean, if you'd like, we can review these separately, but I think, generally, working capital basically breaks even every year. It is very seasonal, so depending on what numbers you're looking at, you might be looking at increases in working capital because it increases significantly during the first six or seven months of the year, and then it goes down later.

How should we see working capital for Amex.

24, perhaps going forward. Thank you.

Carlos Garcia Moreno: No, I mean, if you'd like, we can review these separately, but I think, generally, working capital basically breaks even every year. It is very seasonal, so depending on what numbers you're looking at, you might be looking at increases in working capital because it does increase significantly during the first six or seven months of the year, and then it comes down later. So I think we have not had major increases or changes in working capital in the last three years. To add something to what Carlos is saying, what we have been doing, and maybe increase a little bit the working capital, is that we're financing a lot of the handsets. So we are going to and financing a very good business, and what the customers like is that they can buy a better handset or a 5G handset. So we are financing that, and that will increase a little. But it's a very good business. We finance them, and that will be good. The other thing to note is if you start out with 2021, then it's a bad year because we significantly reduced capex in 2020 because of the pandemic. And that means that we didn't really have accounts payable, and we needed, you know, new accounts payable.

No.

If you'd like.

Separately, but I think generally yes.

Capital basically receiving every year.

And so depending on what numbers you are looking at you might be looking at increases.

Working capital because it does increase significantly the first case of seven months of the year and then it.

It comes down.

So I think we would have in the market.

Daniel Cash: So I think we have not had major increases or changes in working capital in the last three years. To add something to what Carlos is saying, what we have been doing, and maybe increase a little bit the working capital, is that we're financing a lot of the handsets. So we are going to and financing a very good business, and what the customers like is that they can buy a better handset or a 5G handset. So we are financing that, and that will increase a little. But it's a very good business. We finance them, and that will be good. The other thing to note is if you start out with 2021, then it's a bad year because we significantly reduced capex in 2020 because of the pandemic. And that means that we didn't really have accounts payable, and we needed, you know, new accounts payable.

Changes in working capital exactly.

Daniel Hajj Aboumrad: To add something to what Carlos is saying, all what we have been doing, and maybe increase a little bit the working capital, is that we're financing a lot of the handsets. So we are going and finance is a very good business, and what the customers, what like is that they can buy a better handset or a 5G handset. So we are financing that, and that will increase a little. But it's a very good business. We finance them, and that will be good. The other thing to note is if you start out with 2021, then it's a bad year because we significantly reduced capex in 2020 because of the pandemic. And that means that we didn't really have accounts payable, and we needed, you know, new accounts payable.

Something what Carlos.

What Carlos is saying, what we have been doing and maybe increase a little bit.

The working capital is that we're financing a lot of defense. It. So we are going.

Nancy is a very good business and what the.

The customers what they like is that.

They can buy a better handset or a <unk> handset. So we are financing that and that increased a little our spot. It's a very good business, we finance them and that will be.

Good.

Carlos Garcia Moreno: The other thing to note is if you start out with 2021, then it's a bad year because we reduced significantly CapEx in 2020 because of the pandemic. And that means that we didn't really have accounts payable, and we needed, you know, new accounts payable. So we had an issue because we did have to increase working capital in '21 as opposed to 2020 on account of what I just said. Thank you. Thank you. Thank you. Thank you, Carlos and Daniel. Thank you. Thank you. As there are no additional questions waiting at the time, I'd like to turn the conference call back over to Mr. Daniel Hash for closing remarks. I just want to thank everyone for being on the call, and thank you, Oscar, Daniela, and Carlos. Thank you very much. This concludes today's conference call. You may now disconnect your line.

The only thing to notice.

You start out with 2021, mainly.

And then about a year because.

We reduced significantly capex in 2020 because of.

And that means that we didn't really kind of accounts payable that we need it.

You are kind of stable. So we've had an issue because we didn't have to increase working capital in in 'twenty, one as opposed to 2020 on account of prior year period.

Carlos Garcia Moreno: So we had an issue because we did have to increase working capital in 2021 as opposed to 2020 on account of what I, Thank you. Thank you. Thank you. Thank you, Carlos and Daniel. Thank you. Thank you. As there are no additional questions waiting at the time, I'd like to turn the conference call back over to Mr. Daniel Hash for closing remarks. I just want to thank everyone for being on the call, and thank you, Oscar, Daniela, and Carlos. Thank you very much. This concludes today's conference call. You may now disconnect your line.

Yeah.

Alright. Thank you. Thank you. Thank you. Thank you Carlos.

Thank you.

Thank you I'll start with no additional questions waiting at this time I would like to turn the conference call back over to Mr. Daniel Hajj for closing remarks.

I just want to thank everyone for joining the call and thank.

Thank you Oscar Daniela and Carlos Thank you very much.

This concludes today's conference call you may now disconnect your lines.

[music].

Carlos Garcia Moreno: Thank you. Thank you. Thank you. Thank you, Carlos and Daniel. Thank you. Thank you. As there are no additional questions waiting at the time, I'd like to turn the conference call back over to Mr. Daniel Hash for closing remarks. I just want to thank everyone for being on the call, and thank you, Oscar, Daniela, and Carlos. Thank you very much. This concludes today's conference call. You may now disconnect your line.

Alejandro Azar Wabi: Thank you. Thank you. Thank you. Thank you, Carlos and Daniel.

Carlos Garcia Moreno: Thank you. Thank you. As there are no additional questions waiting at the time, I'd like to turn the conference call back over to Mr. Daniel Hash for closing remarks. I just want to thank everyone for being on the call, and thank you, Oscar, Daniela, and Carlos. Thank you very much. This concludes today's conference call. You may now disconnect your line.

Carlos Garcia Moreno: Thank you.

Carlos Garcia Moreno: Thank you. As there are no additional questions waiting at this time, I'd like to turn the conference call back over to Mr. Daniel Hajj for closing remarks. I just want to thank everyone for being on the call, and thank you, Oscar, Daniela, and Carlos. Thank you very much. This concludes today's conference call. You may now disconnect your line.

Operator: Thank you. As there are no additional questions waiting at this time, I'd like to turn the conference call back over to Mr. Daniel Hajj for closing remarks.

Daniel Hajj Aboumrad: I just want to thank everyone for being on the call, and thank you, Oscar, Daniela, and Carlos. Thank you very much. This concludes today's conference call. You may now disconnect your line.

Daniel Hajj Aboumrad: I just want to thank everyone for being on the call, and thank you, Oscar, Daniela, and Carlos. Thank you very much.

Okay.

[music].

Operator: This concludes today's conference call. You may now disconnect your line.

Q4 2023 America Movil SAB De CV Earnings Call

Request a DemoDemo

AMX

America Movil

Earnings