Q4 2024 America Movil SAB de CV Earnings Call
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Chad: Good morning, My name is Chad that'd be a conference operator today at this time I would like to welcome everyone to the America Naval fourth quarter 'twenty 'twenty four conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there'll be a question and answer session. If you'd like to ask a question. During this time.
Chad: Simply press Star followed by the number one I'll go to the turnkey part and if you'd like to withdraw your question. Please press star followed by taste.
Speaker Change: Now I'll turn the call over to MS. Daniela Lecuona head of Investor Relations. Please go ahead.
Speaker Change: Thank you good morning, everyone. Thank you for joining us today to discuss our fourth quarter financial and operating results. We got on the line Mr. Daniel.
Speaker Change: The federal government Okay.
Speaker Change: Carlos Garcia Moreno CFO.
Speaker Change: Thank you Daniela welcome everyone.
Speaker Change: Most of it's going to make a summary of the fourth quarter.
Speaker Change: <unk> 2004 results.
Speaker Change: Good morning, everyone.
Speaker Change: Well the fourth quarter ended with a renewed carriage and European interest rates, we think Youre Christian jumping approximately 80 basis points in the quarter, but finished the year youre shy of four 6% roughly the highest level since the end of April.
Speaker Change: The significant increase in long term interest rates took place not long after the fed reduced rates by 50 basis points in September 14, Mark after completing a period of policy rate case.
Speaker Change: Our stronger than expected labor market and economic activity led familiar revisions and expectations regarding future reductions in policy rates by the fed.
Speaker Change: Or maybe my lungs yields all of which resulted in the Spike in New York, you mentioned level throughout the period substantially under the guarantees in a region of operations depreciated versus the dollar would be that <unk> been experiencing worthy plentiful, 13.7% followed by the Chilean peso, 11% and the year.
Speaker Change: 7%.
Speaker Change: We added.
Two point.
Speaker Change: One 1 billion.
Speaker Change: In the fourth quarter.
Speaker Change: Still contributing.
5000.
Speaker Change: I Couldnt get 88000 in Mexico.
Speaker Change: 41000.
Speaker Change: On our prepaid platform.
Speaker Change: One 3 million net disconnections in the period.
Speaker Change: Minus $1 8 million in Brazil, after a clean inappropriate space.
Speaker Change: But Mexico getting 302000 folks followed by Central America.
Speaker Change: 6000, Colombia.
Speaker Change: I'm not a convenient 100.
Speaker Change: 64000.
Speaker Change: Fixed line segment, we obtained 320000 robot actresses.
Speaker Change: During two.
Speaker Change: Turning to Mexico.
75045%.
Speaker Change: Demand.
Speaker Change: Borderlands and basically unit registered minor losses seemed a bit maybe 8%.
Speaker Change: Our postpaid base increased five 3% year on year with prepaid expanding to Europe, one focusing on fixed broadband access four 7%.
Speaker Change: All the above figures include those reported by <unk>.
Speaker Change: The last two months.
Speaker Change: Yes.
Speaker Change: Fourth quarter revenue was up 18% in Mexican peso terms.
207 billion pesos.
Speaker Change: It could be prevented planting 19, 1% and EBITA, 54% to 91 billion.
Speaker Change: Those rates of increase reflect the consolidation of the Chilean operation from November 1st.
Speaker Change: But we're largely boosted by the accounting methodology have proceeded with the Argentinian operation.
Speaker Change: So as these operational figures.
Speaker Change: Concrete at this computer type of inflationary.
Speaker Change: Annual revenues adjusted for inflation and expressed in December 2030 forward prices.
Speaker Change: They converted to Mexican peso at the end of the year exchange rates.
Matt: Thank you Matt.
Matt: The fourth quarter figures I hope infrastructure from the annual figure store footprints with September.
Matt: Sure So Argentina, greater if inflation was around 18%.
Matt: Through December.
Matt: And Pedro only depreciated, 4% brick and Mexican peso.
Matt: It has depreciated sharply in December 2013.
Matt: The accounting adjustment mentioned, a computer Brooklyn expert in Mexico in particular.
Matt: Excluding Argentina, and therefore, all of our years, having to do with the accounting methodology.
Matt: I'm always fourth quarter revenue increased 10% in Mexican peso terms.
Matt: With temporary 7% service revenue growth and eight 6% EBITDA growth.
Matt: On the consolidation of the Chilean operation its contributions to our consolidated revenue over the last two months of the year amounted to three <unk>.
Matt: Now at constant exchange rates.
Matt: Customary in our quarterly reports.
Matt: Excluding after doing this calculation.
Matt: Our fourth quarter revenue rose five 4% year on year on the back of a six 6% service revenue increase.
Matt: Best performance in over a year with EBIT tax funding pipeline, 1% before one off adjustments and seven 2% is also adjustments were made.
Matt: This increase includes the impact of different producer, although the Chilean operations.
Like what does more strongly in particular platform as can be seen.
Matt: In a moment.
Matt: Mobile attribute revenue.
Matt: <unk> hundred six 2% year on year in the fourth quarter.
Matt: Without Chile, it would've been five 1% in language the pace of growth.
Matt: Three quarters.
Postpaid revenue rose eight 5% during the quarter compared to six 3%, despite a quarter, whereas prepaid revenue increased.
Matt: Increased to five 5%.
Matt: Bounced slightly from three 6% in the third quarter.
Matt: Mobile service revenue accelerated in Brazil.
Matt: Alondra.
Matt: True offsetting deceleration observed metric lie in Central America.
Matt: Fixed line service revenue climbed to seven 4%, including the Chilean operation and would have posted a 4% increase without language decrease of savings in the second quarter, but somewhat lower than the growth rates will be third quarter.
Matt: Broadband revenue growth accelerated to a 98%.
Matt: <unk> from seven 4% the prior.
Matt: Prior quarter and corporate networks revenue to 12, 3% 10, 1%.
Speaker Change: Thank you for your revenue growth hitting five 2% compared to a 0.8% decline in the third quarter.
Speaker Change: Fixed service revenue growth decelerated in Mexico, Brazil, and Colombia from the base in the prior quarter, but increased at a faster pace in Austria, and eastern Europe as well as some 10 kilometers.
Speaker Change: American mortgage staring at an operating profit of $46 4 billion pesos or the fourth quarter.
Speaker Change: They are interested in how you then that over year. This quarter. After the decision amortization charges that increased 52, 6%.
Speaker Change: Reflecting positive contribution of the Chilean operation.
Additionally, adjustments do not ask.
Speaker Change: And then with the vision of a new license climbed 33, and 24 in Australia and Colombia.
Speaker Change: Our net income.
Speaker Change: Compared to the fourth quarter and was fully driven by 5% lower year on year on a constant comprehensive financing cost. This.
Speaker Change: Total 30 billion vessels, nearly capsule, which left us with greater foreign exchange losses.
Speaker Change: Our net income if we run into 15 basis sensitive 15 motor strength.
Speaker Change: Yeah.
Speaker Change: And our net debt ended the year at four corners.
Speaker Change: 88 billion pesos.
Speaker Change: Excluding capitalized lease obligations.
Speaker Change: Cash flow patterns, you've increased 19 billion pesos.
Speaker Change: Year, I kept us enough a corner.
Speaker Change: 1 billion pesos in capital expenditures.
Three 1 billion pesos.
Speaker Change: Shareholder distributions.
Speaker Change: These are net of the dividends received from our reaction stake.
Speaker Change: 74 billion pesos demonstration with bigger obligations.
Speaker Change: At the end of the year, our net debt stood at 144 times.
Speaker Change: EBITDA the latter two year already reflects the impact of Reconsolidation of travel BTR in Chile.
Speaker Change: For more color from some game before.
Speaker Change: So that's.
Speaker Change: Good.
Speaker Change: Thank you.
Speaker Change: The floor back to Daniel Thank you. Thank you Carlos I think we can start with Q&A.
Speaker Change: Okay.
Speaker Change: Hello.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Hello.
Speaker Change: Thank you sorry apologies.
Speaker Change: At this time I would like to remind everyone in order to ask a question, Chris Scott and the number one I'll go to the thank you Pat well pause just for a moment to compile the Q&A roster.
So the first question comes from Carlos <unk> from <unk> BBA. Your line is now open.
Carlos: Thank you good morning, everybody I have two questions on my end please.
Carlos: The first one is if you have a specific capex guidance for this year.
Carlos: Obviously, the sharp FX movements I don't know if theyre seeing it.
Carlos: Any deviation from what you guided at Investor Day.
Carlos: Secondly in Brazil.
Carlos: Maybe you can talk about the details of many.
Carlos: And be a no deal with no bank.
Carlos: Just concerned if there is any.
Carlos: Or are you at all concerned if there is any potential for cannibalization of your own product or in terms of network capacity theres any kind of concern at all even though they might become very large at some point.
Carlos: Hi, Carlos.
Carlos: On the Capex I think we gave guidance.
Carlos: And then three years.
Carlos: I think we are on that guidance, including what we are incorporating the capex of Chile. So we still don't know exactly whats going to be the capex for Ciena for this year, but what we have is we do a three year capex in Chile $23.
Carlos: <unk> and <unk> I think this year.
Carlos: The last year, or where we were going to change the network modernize where our net <unk> were not put the more call. It.
Carlos: We're going to do.
Carlos: Are you there more redundancy. So we're doing a lot of things in Chile. We're on track there we have a very good management in Chile. So we're very happy the way teammates evolving right now and we.
Carlos: With these I think.
Carlos: We're still not sure maybe could be 250 to 300 million more of Chile deal. We don't know for for these last year and then.
Carlos: Yeah.
Carlos: But the Capex and the guidance that we gave last time is still the same loss what we're gonna put in Chile for this year I think next year in Chile in May you can reduce both easier we're finalizing the last.
Carlos: I said that three year plan that we have to modernize all the network that we set.
Carlos: In Brazil with no bank. We're happy we then we are doing okay.
Carlos: We are not the one that.
Carlos: Move on to Canada life, our our prepaid subscribers. So we're happy I think it's a very good day.
Carlos: The alliance that we have with them and.
Carlos: We're doing okay. So it took a good name named are good the daily charter a lot with new bank.
Carlos: And so we are doing very good.
Carlos: <unk>.
Carlos: Yes.
Carlos: Okay. Thank you.
Carlos: Thank you.
Carlos: Okay.
Carlos: The next question is from Walter.
Carlos: Let chip partners. Your line is now open.
Speaker Change: Hi, good morning.
Speaker Change: Joe on for Walter Thanks for taking the question.
Speaker Change: I kind of a follow up.
Speaker Change: Even with Chile included in the Capex guidance I guess the range that you had said at the analyst day of 20% to 24.
Speaker Change: It kind of seems like you're going to come in towards the low end is there is there any reason for what would push that towards the higher end at this point.
Speaker Change: Okay.
Speaker Change: No look what we what we said last time is that we're going to have 22 billion.
Speaker Change: And in three years, it's what we start with that I think we need to include Chile.
Speaker Change: And I think we're okay with that so we don't go into the high <unk>.
Speaker Change: What what I can tell you this year in all 2024, we have less capex.
Speaker Change: Of what we bought that we have.
Speaker Change: Very good revenue.
Speaker Change: The increase and we have a better cash flow. That's what we had seen budget. So I think that's the trend that we had in 2024 and that's what we're looking to have in 2025. So we're being careful on capex, but we're investing where we think we need to invest to get more revenue.
Speaker Change: So that's the way we are looking and.
Speaker Change: And the numbers are there 22 billion, we set for three years, we are.
Speaker Change: With that then.
Speaker Change: And.
Speaker Change: That's more or less.
Speaker Change: I think it's going to require this year, a little bit more on what we're going to have for the next year, because we're finalizing what they said that their three year plan, but the rest I think red Okay, we're putting it.
Speaker Change: All the things that will be important piece that we have all slowed this year some.
Speaker Change: Spectacle.
Speaker Change: Yeah.
Speaker Change: No actually on the renovations.
And Thats why Youre more <unk> spectrum, but I think this year will be niche almost everything on that so.
Speaker Change: Also for next year 2026, I think it's back to and renovations will roll.
Speaker Change: Also lower so thats, what what what they can see in the Capex.
Speaker Change: Okay.
Speaker Change: And then either I guess, Daniel or Oscar.
Speaker Change: T mobile has started offering starlink satellite to sell texting to its subscribers and I believe last quarter. You mentioned that you were working with Spacex and ASD.
Speaker Change: Have you guys started.
Speaker Change: Testing either or both of those and can you provide an update on either of those.
Yeah.
Speaker Change: What we said is that we use this low orbit satellites that we used for basketball in these what I said, we are not working only with Spacex, we're working with all of them.
Speaker Change: Lastly, the Spacex done with the other one so.
Speaker Change: Working more with one web and the other one I don't remember the name of <unk>.
Speaker Change: <unk>.
Speaker Change: And we're working with them and we.
David: David you guys only four that backbone, we are not doing nothing directly to the phone at this moment.
David: We're still looking and reviewing it that makes sense for all sort of not so that's where we are right now we don't have anything.
Speaker Change: On direct through the phone and Neil.
Speaker Change: The satellite companies only doing four backbone in the rural areas, where we think we need that to where it is more expensive to put fiber or microwave then we put something like well that's more or less what we're doing.
Speaker Change: Okay got it thank you.
Speaker Change: Thank you.
Marcello Santos: Thank you. The next question is from Marcello Santos from JP Morgan. Your line is now open.
Speaker Change: Hi, good morning, Thanks for the opportunity for taking the questions I have two the first is on Mexican broadband could you. Please comment a bit on the pricing environment. If you plan to increase prices. This year I understand last year you kept your prices. So what's the outlook for this year and the second question is about M&A.
Marcello Santos: There is a discussion at least when you're reading the press about.
Speaker Change: Potential M&A in Argentina.
Speaker Change: How do you feel about that.
Speaker Change: What is the appetite of America module to see opportunities there. Thank you.
Speaker Change: Oscar can talk a little bit about the broadband yes, yes.
Speaker Change: Generally Mexico right now.
Speaker Change: We already have 85% of the customer connected.
Speaker Change: We don't see to increase the prices what we did is to launch a new packages in the market.
Speaker Change: <unk> I think is very unique packages.
Speaker Change: We believe that these will.
Speaker Change: So we're near that this year.
Speaker Change: You have partners that include Netflix for six months for free.
Speaker Change: Collateral video with Paramount.
Speaker Change: Well antivirals.
Speaker Change: Fully symmetrical.
Speaker Change: Activity with fiber.
Speaker Change: He made his wedding Olson, so we are adding value.
Speaker Change: Another factor is that.
Speaker Change: We are really focused on is in the small business as well they will launch of packages that includes <unk>.
Speaker Change: Backlog information for the customer, Maine, we decided a webpage for a small business.
We delivered electronic beauty for a small business for the same claim that we used to crop adding value to the broadband connectivity and as well on the corporate as we mentioned before we are adding <unk> heard even services cyber security cloud vertical or horizontal solutions for corporate market. So we believe with us.
Speaker Change: These bundle in packages, we are very well positioned in the market to pick up.
Speaker Change: And interest for.
Speaker Change: For this year.
Speaker Change: And on the Argentina, well, what I can tell you is that I read it also in the news. This morning, we haven't talk with anyone in on anything there.
Speaker Change: Of course, we're open we're open all waits to see everything and let's see there's.
Speaker Change: <unk>. So it makes sense for us we can be open to review that but we havent talk with them and we haven't had anything at this moment.
Speaker Change: Thank you just to clarify on Oscars answer Sue.
Speaker Change: So you said you did not seek to increase prices right you launched the bundles buses on prices you did not seek to increase okay. Thanks, Brian. Thank you very much at the moment.
Speaker Change: Until now we don't think to do it we don't know if that makes sense.
Speaker Change: The mid or end of the year, but at this time, we havent had anything on increasing prices.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: The next question is from Vishal <unk> from Goldman Sachs. Your line is now live.
Vishal: Hi, Deane.
Speaker Change: Hello, Good morning, all and thanks for taking our questions. We have two questions from my side.
Speaker Change: The first one is if you could give us some more color on how you see prepaid revenue trends in Mexico.
Speaker Change: In more detail in terms of how much user how much users are recharging how frequently they are recharging.
Speaker Change: You are seeing those trends evolving and our second question would be also related to.
Speaker Change: Prepaid in Mexico, if you could give us an update on how you will have seen the competitive environment for our prepaid in Mexico.
Speaker Change: Between the big operators <unk>.
Speaker Change: Competition in general Thank you very much.
Speaker Change: Well.
Speaker Change: I'm talking a little bit about.
Speaker Change: The competition in Mexico.
Speaker Change: What we have been seeing let's talk first about Gulf space postpaid. We are doing very good we're increasing revenue I think the revenue.
Speaker Change: We increased five 7% something like that more than a year before and more than the second and third quarter of last year. So we are in postpaid we are doing why we're doing well we have.
Speaker Change: We are moving also some customers from prepaid to postpaid so and we are moving our phosphates from better plans and selling more things sold they are pools that we have embedded cell is maybe in postpaid maybe 20% higher than we are.
Speaker Change: Next competitors. So we have very good customers. We are they are in very good plans and we're doing very good in the postpaid side, okay in the prepaid side, what I'm seeing is.
How are you going to see.
Speaker Change: Any change on the on the competition is the same competitors.
Speaker Change: The that we have been having I don't think they are more aggressive or less aggressive. They are they have been aggressive for maybe two three years and.
Speaker Change: They are doing that.
Speaker Change: As I said, we are moving part of our eyewear.
Speaker Change: We paid base to both space and the third one is we're seeing also is the low down on the economy I think thats very important then and when Youll see a slowdown in the economy of Mexico than the first place where you'll see.
LOE down ethane recharge in prepaid so that's what we're looking no big changes in competition. We have the same maybe CFB is deepening and promote some cheap spot.
Speaker Change: More than that we haven't seen anything else on that.
Speaker Change: There's tough competition in Mexico, but it's not the last quarter. It has been there for the last two years, what we have been seeing SaaS slowdown in the economy.
Speaker Change: And that this opex directly to that.
Speaker Change: The Threep Barrick prepaid if we charge that we had been cutting so that's more or less what I can.
Speaker Change: What I'm seeing in the market in Mexico, So Oscar can talk a little bit about the broadband we're doing good we're growing we're moving to fiber postpaid. We are also doing good.
Speaker Change: Moving subscribers to better plan moving the high end prepaid to the low end postpaid that it's been very successful.
Speaker Change: 85% of the people that we move to Stacy <unk>.
Speaker Change: In phosphates, so it's a very good number so all overall we are we are we are doing okay in that.
Speaker Change: And the second and very important.
Speaker Change: Oscar reminds me right now is that we have.
Speaker Change: Vary by far the best network in Mexico, we are the only ones that path.
Speaker Change: The real <unk>, we have more than 150 is very well covered at very good speeds.
Speaker Change: Good quality and well that's why we got the best postpaid customers right now.
Speaker Change: Clear thank you very much.
Speaker Change: Hmm.
Speaker Change: The next question is from an address colella from Scotiabank. Your line is now open.
Colella: Thank you. Thank you for taking my question two in Mexico. Please firstly, we saw last year.
Colella: Two constitutional reforms, one given the CACI special legal status in Mexico.
Colella: And then there was also the reform that is going to emerge to regulators sometimes single body.
Colella: So I'm just wondering what youre seeing in terms of their own latorre environments in the country with the constitutional reforms and perhaps more specifically how would you see the company comp.
Colella: Dealing with the government right because the government is now providing rebuilt Harry said, so you'll be on that.
Colella: And my second question is on mix.
Colella: And there was some manner.
This value by management and the Union.
Colella: That makes sense that this year, they expect to swing to me on broadband pricing in Mexico, and marketshare to reach 50%.
Colella: So I'm just wondering.
Colella: The heat's feasible, if you think that that is.
Colella: Perhaps the ambitious too to think of 2 million broadband additions in Mexico. Thank you.
Colella: Well.
Colella: Of course.
Colella: Yeah.
Colella: It's an internal budget that we have and of course, we want to win if it's $2 million or more than $2 million for all of the.
Colella: The commercial areas marketing people working in the streets are looking to grow. This is what we want we want to increase our market share in that and that's why we don't increase prices last year, we lose some market share in the in the previous years and we want to.
Colella: Recuperate part of visa marketshare and.
Colella: I'm happy that the Union and all the people at least focusing on making more broadband subscribers and winning more broadband so I'm happy it's visible well.
Colella: All the budgets that we do are feasible, we don't know if the economy will allow us to do as much of that Bob.
Colella: We went to the weather noise, maybe it could be.
Colella: 150000 per month I don't know if we can do it but.
Colella: We are looking to do that we have enough fiber.
Colella: We are also changing.
Speaker Change: Subscribers from copper to fiber. So there is still a lot of things that we have to do as well Scott stage, we have 85% of our square our subscriber broadband and fiber and so very good very good news. So if we look three years ago I don't think we have those numbers. So we have been.
Speaker Change: <unk> working very very hard to move all the all.
Speaker Change: All our subscribers to fiber so that's what we have in terms of that.
Speaker Change: <unk> well, what we have been seeing is that the right now they are looking for the secondary.
Speaker Change: Loss they are moving on that we don't know exactly what they're going to be the secondary loss.
Speaker Change: Waiting for that then.
Speaker Change: So we are aiming to work with and I think part is going to bode to economy. The other part that is vulnerable to authenticate the heat done and we are going to work with both.
To do that if we're going to compete hope that what the government is saying is that what they want to do is to give connectivity in their very very rural area. So I hope they are working on doing that to do.
Speaker Change: The connectivity in those rural areas.
Speaker Change: But thats more or less what they thought.
Ben: Ben I don't know.
Ben: That's what that's what we have is too.
Ben: Okay. Thank you.
Ben: Thank you.
Speaker Change: The next question is from Alejandro <unk> from GBM. Your line is now open.
Ben: Yeah.
Ben: Hi.
Ben: Good morning, and thank you for taking my questions.
Ben: Two quick ones one is on the cloud on corporate networks.
Ben: If you can remind us how much that business grew in 2024.
Ben: And if you can if you can tell us from your 775 billion Capex, how much is that directed to that to that.
Ben: Business segment.
Ben: On the other one would be on your pension plan, you mentioned 25 billion.
Ben: <unk> uses.
Ben: Cash outflows during 2024.
Ben: My question would be that you saw.
Ben: 100% cash flows and how should we think about your pension plan outflows in the next in the next lets say I don't know decade.
Ben: And should that decline at some point on why thank you.
Ben: Got it.
Ben: Right.
Ben: What I can tell you is that that segment.
Ben: That are growing more our phosphate and quarter for the corporate segment, but those are the two segments that are growing more in America mobile I think the quarter four eight I think is growing around 15% something like that revenues I think.
Ben: Fixed exchange rate care for everyone.
Ben: So 43%.
Ben: And it's been accelerating it was seven in the second quarter than in the third quarter and 12% in the fourth quarter.
Ben: What is very important we have been putting out.
Ben: Good Capex.
Speaker Change: This is Paul 222 device flex Capex. These four cloud in quarter, four eight and the other ones, but I got it.
Speaker Change: We have we're very well to rebase in all Latin America to serve the corporate market to the week.
Speaker Change: Good salespeople, we have data centers, we've got good alliances. So we are very well prepared to.
Speaker Change: The grow in the market. So I think we're I'm very confident.
Speaker Change: <unk> does that.
Speaker Change: In the next three years, we're going to be a good play year, a big player in the corporate market. So.
Speaker Change: On the pension front I think.
Speaker Change: B.
Speaker Change: The trend should be declining I think we would expect to see steel.
Speaker Change: Some outflows or more or less of the same size as we had last year.
Speaker Change: For some time or the next three years or so and then we would expect them to be a really declining.
Speaker Change: Has to do with the overall.
Speaker Change: And I think that we have reached the peak.
Speaker Change: Or.
Speaker Change: <unk> payments.
Speaker Change: And they will be trending down.
Speaker Change:
Speaker Change: <unk>.
Speaker Change: There is less people.
Speaker Change: Thanks to new people and some people that had pension.
Speaker Change: Who received ventures at some point.
Speaker Change: Basically we can we can talk more about it.
Speaker Change: Our next.
Speaker Change: Mexican investment Bedford.
Speaker Change: Okay. Thank you. Thank you both.
Speaker Change: Thank you.
Speaker Change: As a reminder that asked a question. Please press star followed by one on your telephone keypad now.
Speaker Change: The next question is from Sunny kind of Mori from HSBC. Your line is now open.
Speaker Change: Yes.
Speaker Change: Hi, everyone. Thanks for taking my questions. The first one is related to the outlook for shareholder remuneration of 2025.
Speaker Change: Given the 16 gifts and increased Capex, how do you see the outlook for shareholder remuneration in 2025.
The second one is regarding.
Speaker Change: How you feel about Brazil mobile do you see the rational market enrollment continuing debt and.
Speaker Change: You have grown like 10% in 2024 do you see that growth.
Speaker Change: Attending.
Speaker Change: In the same range in 2025, thank you.
Speaker Change: Sure.
Speaker Change: No.
Speaker Change: The first question.
Speaker Change: You look at the basic trends that we are having today.
Speaker Change: We have got a very solid revenue growth.
Speaker Change: Four.
Speaker Change: Yeah.
A long time now.
Speaker Change: We have.
Speaker Change: Roes on both fixed and mobile, which we've been highlighting for quite some time.
Speaker Change: And this is already very well diversified we are doing it.
Speaker Change: All the main.
Speaker Change: Concrete and blocks of concrete Admix in Latin America, and Eastern Europe.
Speaker Change: And what we are seeing that on the back of very strong and consistent topline growth.
We are also being able to reduce the capex intensity of the business.
Speaker Change: Given the importance it doesn't like we've made in the past.
Speaker Change: Including introducing.
Necessary investments to be able to produce our view basically in all our.
Speaker Change: Lower market and.
Speaker Change: And also the spectrum that has to go with that so all of that is behind us and Thats why we have been able to reduce our capex too.
Speaker Change: Two shells.
Speaker Change: Intensity significantly we expect it will be remain in depth decision. So given what I've said.
Speaker Change: The outlook is for.
Speaker Change: We particularly to free cash flow expansion.
Speaker Change: Accretion of leverage.
Speaker Change: That will remain not far from where we are okay.
Speaker Change: One four times.
Speaker Change: EBITDA is right in the middle of events, where we wanted to be.
Speaker Change: No.
Speaker Change: I run the numbers and you will see that.
Speaker Change: We don't need more cash for debt and we don't need.
More cash for Capex.
Speaker Change: Is that theres going to be more cash available for distributions.
Speaker Change: And on Brazil, I think we we are.
Speaker Change: Like we have like 40% something like that 38% to 40%.
Speaker Change: The share of marketing site. So we are one of the biggest in Brazil, we have a very good network.
Speaker Change: This network.
Speaker Change: I'm, not saying that we're the fastest networking in Brazil and.
Speaker Change: We have been growing market share in <unk>.
Speaker Change: <unk> four in postpaid for some years. So we are well prepared we are investing.
Speaker Change: And we have seen category, we saw very good management team.
Speaker Change: We will see energies that we have been having so we are we I think we can still do.
Speaker Change: Very good year than next years, we're going to be will be in Brazil.
Speaker Change: Yeah, Thanks, everyone just particularly.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Next question is from Gustavo <unk> from UBS. Your line is now open.
Speaker Change: Okay.
Gustavo: Hi, and thanks for taking my questions.
Gustavo: I have two on my end the first one regarding mobile competition in Brazil.
Gustavo: We've seen a competitor that doesn't expect to raise.
Gustavo: Prices in the first half of the year. So my question is if you could comment on how do you see competition in Brazil, you see worsening or not.
Gustavo: And the second question is regarding.
Gustavo: Our debt profile.
Gustavo: And how do you see in the longer term.
Gustavo: How much did you have any targets of how much of that.
Gustavo: We would like to see denominated in hard currencies as a percentage of percentage of total.
Gustavo: And five years from now thank you.
Gustavo: Can you repeat the second question. Please we don't hear you well.
Gustavo: No.
Gustavo: Hello.
Gustavo: Regarding the debt profile.
Gustavo: Yeah, Jeff.
Gustavo: The debt profile.
Gustavo: How do you see.
Gustavo: The longer term.
Gustavo: How much of that you'd like to see.
Gustavo: Nominated in hard currencies.
Gustavo: As a percentage of total.
Gustavo: One on the <unk>.
Gustavo: Competition.
Gustavo: We have been.
Gustavo: I think you have to distinguish between funding at one time.
Gustavo: And then the extra currency exposure that we retain.
Gustavo: We have been funding increasing in local currencies with reversing.
Gustavo: Funds.
Gustavo: And obviously on the results at six months.
Gustavo: In the us.
Gustavo: Local markets here in Latin America.
Gustavo: On the.
Gustavo: And what we do with the.
Gustavo: Currency exposure basically minus to deliver this.
Gustavo: And that basically.
Minors.
Gustavo: Pending on.
Gustavo: Our views of where the currencies are.
Gustavo: What I can tell you you've got to really be met exposure.
Gustavo: <unk> expenses.
Gustavo: <unk> expenses for the two.
Gustavo: Net debt.
Gustavo: We measure our exposure.
Gustavo: Yes.
Gustavo: Uh huh.
Gustavo: Do you have one including Australia.
Gustavo: 10% Okay.
Gustavo: So that means that.
Gustavo: Net economic exposure is basically of around 60% to local currency today.
Gustavo: And you are talking about Brazil, I think competition not only in Brazil in all Latin America.
Gustavo: We have a lot of competition there we have lets say in Brazil, we have telefonica, we have Dean and then in mobile and then we have a.
Gustavo: While the new one the small ones that are growing so well.
Gustavo: In telecommunications everybody knows that you have to have not not eating not only price. When you compete on the price. Then I think you are going to lose value in the future you need to compete with quality with coverage with.
Good broad books.
Gustavo: And with our customer care, so you'll need to do a lot of things and that means investment capex and we have been doing that in Latin America for the last 10 years. So for the last 20 years. So.
Gustavo: We are well prepared to compete not only in price one full week of being DT utilizing the company.
Gustavo: Working a lot on cost and expenses.
Gustavo: And that's where lets say in quality in Colombia, Colombia, we have nobody talks about Colombia, but we have a very good quarter, we start with revenues growing at the beginning of last year with 142%, we're growing five 8% in this quarter in both in prepaid so we're doing good.
Gustavo: Because we have the basis, then we have the investments done and.
Gustavo: And.
Gustavo: Of course, we got some competition on price than we have to do it but then.
Gustavo: Sure.
Gustavo: And then we'll return with good customers, who will die pools.
Gustavo: A good product to sell their saw all around Latin America, and Europe, we have competitors telecommunication fees with a lot of competition, but we are well prepared to compete with them.
Gustavo: Okay.
Gustavo: Thanks.
Speaker Change: The next question is from NASDAQ Gonzales from Morgan Stanley. Your line is now open.
Speaker Change: Hi, Thank you for taking my question.
Speaker Change: Two quick ones can you. Please discuss how youre seeing competitive dynamics in Colombia, which you started to as I mentioned, a moment ago and also competitive dynamics in Chile.
Speaker Change: Thank you.
Speaker Change: Well in Colombia, I think did.
Speaker Change: Telephonic or getting together the networks I don't know if they're going to allow them to consolidate this.
Speaker Change: And.
The networks I think they are working on kind of a good network I think is good.
Speaker Change: We're going to save money there.
Speaker Change: Sure.
Speaker Change: A stronger competitor that is good for us.
Speaker Change: Well as I said in Colombia, if you'll review.
Speaker Change: The numbers that we thought that this quarter are very good and I think for 2025, we still think that we can increase.
Speaker Change: Increase in cover.
Speaker Change: Better numbers revenues growing and.
Speaker Change: We are putting in the market.
Speaker Change: I don't know exactly what is going to happen there is going to be a new investor in lung. So we don't know exactly what they are going to do but we are.
Speaker Change: In a good position and in Chile.
Speaker Change: Thank you Sheila we have a lot of competition so different theme in the broadband mobile bought.
Speaker Change: What what I can tell in Chile, we have been working in <unk> 'twenty three 'twenty four we have a very good management.
Speaker Change: Delivering what the date from me. So we are in the numbers and the investments that we're doing are being good.
Speaker Change: Yeah.
Speaker Change: I think this year, we're going to consolidate all the synergies that we have between the two companies we're going to have a much better network. We've had a very good team working there so.
Where we think.
Speaker Change: We're going to have a good one.
Speaker Change: Good numbers in Chile.
Speaker Change: Let's say in Chile number portability, we have been gaining.
Speaker Change: Subscribers in number portability for the last six or seven months and.
Speaker Change: That means that the network is working that we have.
Speaker Change: Good plans and that we're doing okay, though so.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: And they are delivering we're delivering what they are promising.
Speaker Change: <unk> in Chile.
Speaker Change: Thank you.
Speaker Change: Thank you very much.
Speaker Change: Thank you.
Speaker Change: Have a.
Speaker Change: <unk> from <unk> <unk> from Morgan Stanley. Your line is now open.
Speaker Change: Hi, Good morning, and thank you for the call just following up on the Chilean.
Speaker Change: Operation now that the collateral with TR has been formally incorporate any until the results when should we expect more disclosure as to both operationally and financially has to have.
Speaker Change: Shanahan operation is doing going forward and secondly, if you could tell us what the capex budget for Chili's should be for 2025, if you have that number handy will be great. Thank you.
Speaker Change: Sure.
Speaker Change: We will begin.
Speaker Change: Okay.
Speaker Change: The Chilean results.
Speaker Change: Next a quarter.
Speaker Change: Likely we will be discussing it together with both of them.
Speaker Change: Other countries in the region.
Speaker Change: Putting them together putting them.
Speaker Change: So called the southern cone.
Countries.
Speaker Change: But I think that that's what we will be getting.
Speaker Change: On the first quarter of 2025.
Speaker Change: And on the Capex on the Capex on Chile, we said that.
Speaker Change: It's going to be around $250 million this year.
Speaker Change: To finalize everything that we have changed more to fiber.
Speaker Change: More coverage more <unk>.
Speaker Change: So that's more or less what we budget, we still havent finished the budget, but we think that it will be like a $250 million a little bit more a little bit less there.
Speaker Change: On Capex for 2025.
Yeah.
Yes.
Speaker Change: Okay. Thank you.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: We have a question from me.
Speaker Change: The final Goldman Sachs. Your line is open.
Speaker Change: Yeah.
Speaker Change: Hi, Thank you for taking my question I'll ask you some truck I think about it too.
Speaker Change: Two questions that'll be into Mexico, the Sichuan East hub.
Speaker Change: Do you see the competition of the <unk> that they have like 15 million players in the last two years, obviously is in the low wind up the <unk> of the range and the second question if I may.
Speaker Change: How do you.
Speaker Change: We can see.
Speaker Change: Lower rather than you've seen in equipment sales do you believe that this trend will continue thank you so much.
Speaker Change: Yes, that's right we reduce.
Speaker Change: The revenues on the equipment.
Speaker Change: I think also leases a little bit of what we talked about the economy. The economy is slowing a little bit down. So that's the other thing is all of these revenue are are based in dollars.
Speaker Change: So.
Speaker Change: The dollar moves from 17 in June to 2075 being in December so equipment gets a little bit more expensive. So that's why it will reduce.
Speaker Change: Yeah.
Speaker Change: Our revenues on that.
Speaker Change: Yeah.
Speaker Change: On Walmart then.
Speaker Change: Good competitor, a strong comparator data distribution and well its not new.
Speaker Change: As you said they are going to the low take up with feet with 40 million.
Speaker Change: Subscribers there are I don't know exactly the revenues, but the last time that we see the revenues they are.
Speaker Change: <unk> is very low so I don't know if they really have 40 million are not we don't know what the.
Speaker Change: It's more competition in Mexico, nothing new.
Speaker Change: We have been dealing with Walmart for the last two years with.
Speaker Change: <unk> also and then we have them.
Speaker Change: Farm economy, we have AT&T, so a lot of competition in Mexico, but nothing new so that's what we have been having for the last year. So that's.
Speaker Change: Still we're going to have competition this year hope that economic under return.
Speaker Change: And be a stronger in the next two months, but still we're seeing that the slowdown in the economy, starting a little bit the prepaid subscribers.
Speaker Change: Yeah.
Speaker Change: <unk>.
Speaker Change: Thank you so much.
Speaker Change: Thank you.
Speaker Change: Thank you we have no further questions. So I'd like to hand, the call back to Mr. Daniel Hajj.
Daniel Hajj: I want to thank everyone for being in the call.
Daniel Hajj: See you next quarter. Thank you very much.
Daniel Hajj: Thank you. This concludes today's call. Thank you all for joining you may now disconnect.
Daniel Hajj: Yeah.
Daniel Hajj: [music].
Daniel Hajj: Yes.
Daniel Hajj: [music].
Daniel Hajj: Yeah.