Q1 2025 America Movil SAB de CV Earnings Call
Hello, everyone at the American mobile fast Courthouse, Miami five conference call and webcast will begin shortly.
If you would like to ask a question. Please press star followed by one on your Telecom G. Pat Thank you for your patience.
[music].
Speaker Change: Good morning, My name is.
Okay.
Speaker Change: [music].
Nadia: Good morning, My name is Nadia and I'll be your conference operator today at this time.
Speaker Change: Time, I would like to welcome everyone to stay above last.
Nadia: Last quarter 2025 conference call and webcast.
Speaker Change: All lines have been placed on mute to prevent any background noise.
Nadia: After the Speakers' remarks, there'll be a question and answer session.
Nadia: If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad.
Nadia: If he would like to withdraw your question. Please press star followed by Kate.
Nicola: Now I will try Nicola to Ms. Daniela Lecuona head of Investor Relations.
Nicola: Thank you good morning, everyone. Thank you for joining us today to discuss our first quarter 2025, as I mentioned in operating he so we got him and I'm sure that in fact CEO Mr. Gallagher CFO.
Nicola: CFO and meet their own schedules.
Speaker Change: Thank you Daniela.
Speaker Change: Welcome everyone to the first quarter of 2025 financial and operating report Carlos is going to make a summary of the results. Thank you. Thank you Daniela good morning, everyone.
Carlos: The first quarter of the year began ingredient rich furiously method continuing the trend from early December.
Carlos: Market grew increasingly concerned with inflation thankful for a much stronger economies.
Carlos: Okay.
Carlos: However, as inflation numbers.
Carlos: We are seeing expectations and your payroll figures weakened.
Carlos: 10 year Treasury yields came down by a remarkable 50 basis points from the January quarter at four <unk>.
Carlos: A percent in the third most currencies in our original preparations I appreciated vis vis <unk>, but.
But not in Mexican pesos, which remained almost flat over the quarter as the.
Carlos: And so it could give or potential new tariffs by the U S right.
Carlos: In the quarter the U S. Dollar lost seven 3% basically the reptilian barren four 9% versus the Colombian peso vocal and 4% basically the Chilean peso four 2%.
Carlos: Sure.
Carlos: No.
Carlos: Mexican economy.
Carlos: It has been slowing down since April of last year with the index of economic activity, reaching zero percent in February of this year.
Carlos: Private consumption.
Carlos: These larger we're showing limited and he is now declining 1% year on year on the back of on certain tier one in Mexico in the U S election.
Carlos: Increasingly we are grateful theme, Chris as inflation declined by Greg put and the decline of economic activity made worse by a significant tightening public expenditure.
Carlos: So what do you guys see.
Carlos: We're being really a vertical drop in private consumption in Mexico.
Carlos: At that point.
Carlos: To a point that.
Carlos: And they've got to know the first quarter.
Carlos: Added $2 4 million postpaid subscribers with Brazil, leading the way with nine Coronado.
Carlos: Clients, followed by Colombia at work 153000, and Mexico with 133000 in the prepaid segment, we posted 1 billion net prepaid losses, both Mexico, and Brazil with connected clients, it's growing at 31, 5%.
Carlos: Pardon.
Carlos: Secondly.
Carlos: While I can be added to one or 2000 trucks and Columbia added 134000 tons.
Carlos: Prepaid disconnects.
Carlos: In Mexico.
Carlos: In the fixed line segment, we conducted 446000, new broadband actresses Mexico work and main contributor with a current interest in fact.
Followed by Brazil, with 98 person and Central America 2000, more clients on pay TV unit fell by 137 until 2000, respectively.
Carlos: Mobile postpaid and fixed broadband were the main drivers of growth.
Carlos: Our client base, increasing by 51% and four 3% respectively.
Carlos: Larry.
Larry: Our first quarter revenue.
Larry: 14, 1% year on year in Mexican peso terms.
Larry: 2 billion pesos with service revenues, expanding 15, 8% and adjusted EBITDA at three 3%.
Larry: The latter two years, partly reflect the year over year appreciation of most currencies basically of the Mexican peso, but even under the Colombian Chilean pesos, which were up 18% and 14% business.
Larry: Okay.
Larry: <unk>, which was up 17, 7% and the Euro, Oxford 14, 1% again base would be better.
Larry: It essentially means that with the exception of <unk>.
Larry: Brazil.
Larry: All the international operations of American mortgage where we are.
Larry: Michigan Petrobras.
Larry: At constant exchange rates.
Larry: Please.
Larry: Anchored movements service revenue increased six 1% and adjusted EBITA four 2%.
Larry: Adjusted adjusting precision.
Larry: A year before.
Larry: Most of our operations so the EBIT margins increased sequentially.
Larry: Our wireless service revenue climbed to five 7% decelerating somewhat from the prior quarter.
Larry: Revenue continued to grow down mostly on account of weak economic occurred in Mexico, we've seen before.
Larry: Fourth regarding the growth remained fairly stable across the board and Thats really accelerated slightly to 8% where in our Chilean operations in Florida.
Larry: On the fixed income platform savings revenue growth came in at 3% with corporate net revenue appearing to slow down.
Larry: These are two had mostly to do with respect that in the year earlier quarter that line items had had a very strong showing.
Speaker Change: Thank you Kathy and good.
Larry: Tonight.
Larry: <unk> revenue growth maintained its space at nine 8% while that affected each came in at eight 7% the fastest pace GDP in many quarters, reflecting on the one hand incorporation of children.
Larry: But also better growth in Central America, and Austria and Eastern Europe.
Larry: And we are seeing less of our Dragon breastfeed.
Larry: Although growth is still negative the rate of decline has slowed.
Larry: The central American and eastern European blocks, where top performance and superior attributing faster service revenue growth in both the fixed and the wireless platforms and they have got.
Larry: ICD quarter.
Larry: Yeah.
Larry: Our first quarter operating profit totaled $44 8 billion pesos or 10% year on year increase after you precision number patient charges that were up 16%, which partly reflects.
Larry: The incorporation of <unk>, which youll interface.
Larry: With our comprehensive financing costs decreasing slightly from a year earlier quarter.
Larry: Net income growth of 38%.
Larry: $1 7 billion pesos.
Larry: For 31% per share.
Larry: Yes.
Larry: Our net debt.
Stood at 500 billion persons.
Larry: Including capitalized lease obligations.
Larry: Equivalent to one five times less 12 months EBITDA.
Larry: And cash flow terms, our net debt increased 11 billion pesos in the quarter.
Larry: Capital Fund capital expenditures in the month of 25 billion.
Larry: So share buybacks are 4 billion pesos and 7 billion pesos in legal obligations.
Larry: So that's the summary.
Larry: I will now projects robust so that we can begin the Q&A session. Thank you Carlos.
Speaker Change: We can start with the Q&A session.
Speaker Change: Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad.
Speaker Change: So just a moment to compile the Q&A roster.
Speaker Change: The first question goes to Leonardo almost of UBS.
Speaker Change: Please go ahead.
Speaker Change: Hi, everyone. Good morning.
Speaker Change: My question is going to be.
Speaker Change: Regulation law in Mexico.
Speaker Change: What we see now.
Speaker Change: But again, maybe for many many years.
Speaker Change: If you could.
Speaker Change: Good luck.
Speaker Change: In the data communications.
Speaker Change: Legislation.
Speaker Change: Ed.
Speaker Change: That could impact the <unk>.
Speaker Change: Okay spectrum distribution Watson.
Speaker Change: What's your position on it.
Speaker Change: Potentially.
Speaker Change: Regarding spectrum.
Speaker Change: Awesome.
Speaker Change: Towards the meaningful benefits.
Speaker Change: Yes.
Speaker Change: What the Trump administration.
Speaker Change: Proposal <unk> on the duration.
Speaker Change: If there is any type of impact for Mexico, because there was a document that by that date.
Speaker Change: You mentioned that they were concerned with the last Goldman was concerned about.
Speaker Change: Hi.
Speaker Change: Our concentrates and hydrogen creation of market share is valuable.
Speaker Change: Cool.
Speaker Change: <unk>.
Speaker Change: It could be a concern to you.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Lynn.
Speaker Change: As we are.
Speaker Change: As you know and everybody knows it.
Speaker Change: Congress is currently discussing the proposal made by the President Shang bound.
Speaker Change: Regarding the new communication law and some changes in the competition law.
Speaker Change: Those hiring right now.
Speaker Change: Discussing in the Congress, we are monitoring closely both propulsion and providing comments to abuse to the Congress people. Okay. So that's what we have now.
Speaker Change: We don't have anything as everybody.
Speaker Change: Everybody knows what these are what the proposed sell Scott.
Speaker Change: I am agree on what you were saying about the spectrum. So we are giving our views and.
Speaker Change: And we.
Speaker Change: We can discuss that.
Speaker Change: On more detail when both loads.
Speaker Change: Not that they're not that okay. So right now nothing to say the law sorry, there everybody's discussing we're giving our points of view and that's all muscle I think in the next two months.
Speaker Change: The breadth you then said it.
Speaker Change: They are going to be and that's all that's what we have right now.
Speaker Change: On the other side.
Speaker Change: Amy.
Speaker Change: I don't exactly understand what you say about president Trump about but if you are saying about the competition and dominance.
Speaker Change: And all of that well that will be included in this loss and these losses has been discussing.
Discussing right now so.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Other important issue.
Speaker Change: We put it in front of the first page of our our results each of the market share that we had in <unk>.
Speaker Change: In fixed broadband and TV, we have 27% <unk> 85 to <unk>.
Speaker Change: It does not that does not include the CPE that has also some subscribers so.
Speaker Change: I think.
Speaker Change: We are discussing that we are we think that we're not the dominant player anymore and that the large cash too.
Speaker Change: Yeah.
Speaker Change: So that so that's mainly what we have been discussing.
Speaker Change: Okay.
Speaker Change: Crystal clear. Thank you very much have a good day.
Speaker Change: Thank you.
Speaker Change: The next question. Thanks, Youre welcome Jake offline chat chat. Please go ahead.
Dave: Thanks, Dave.
Speaker Change: Just to address the impact of tariffs protect potentially on handsets.
Speaker Change: Correct.
Speaker Change: If anything.
Speaker Change: Hum.
Speaker Change: Business.
Speaker Change: Alright.
Speaker Change: Alright.
Speaker Change: Or is it that is in Mexico.
Speaker Change: No changes on <unk> handsets right now in Mexico, and Latin America, I don't know that if we can have something in the future. So.
Speaker Change: <unk>.
Speaker Change: At this moment, even it's being a little bit better because the exchange rate, that's coming a little bit down and that dose.
Speaker Change: Our we buy everything in dollars or in Mexico, Let's say a price of handsets has been better. So at this moment, we don't have anything on <unk> and we don't expect anything on <unk> for the for the next.
Speaker Change: And months.
Speaker Change: Yes, sorry, I was just I was going to continue to just just kind of noting perhaps the deficit trade deficit that exists between.
Speaker Change: Mexico, and China, and if there's anything perhaps given everything that's happening in the world.
Speaker Change: And how manufacturing can move to different locations.
Speaker Change: Whether that could extend in terms of Mexico's relationship with China.
Speaker Change: But I think that's a big discussions.
Speaker Change: On that on that trade deficits trade deficit in the U S trade deficit in Mexico, China and.
So it's going to be very difficult to understand what these onetime spending that future, but I think that Mexico will have a very well in my view a good probability that there will be everyday manufacturing more and more.
Speaker Change: In Mexico to go to the U S manufacturing more with Mexicans and doing things in Mexico, not importing from other countries and then export into the U S. I think that's what might change a little bit but the if we produce here I think Mexico will have a good opportune.
Speaker Change: To grow so I think all of these.
Speaker Change: <unk> what is happening in the world and I hope that will be benefit for Mexico.
Carlos: Thanks, Carlos also obviously mentioned and we've seen the results the impact of some of the.
Speaker Change: Economic.
Speaker Change: Issues.
Speaker Change: In terms of.
Speaker Change: Consumer demand I guess in Mexico.
Speaker Change: You guys have both been there a very long time, and obviously Carlos very involved in Mexico in general even before mobile just curious.
Speaker Change: You know kind of your thoughts on timeline.
Speaker Change: Or how long you think that this will.
Speaker Change: Progress through your numbers, how deep of a dip.
Speaker Change: How soon a recovery I suppose.
Speaker Change: Hi.
Speaker Change: I think what.
Speaker Change: What I was saying before.
Speaker Change: We saw there.
Speaker Change: Extraordinary situation last year.
Speaker Change: Second half of last year because of the confluence of events.
Speaker Change: That's one.
Speaker Change: In Mexico.
Speaker Change: Always.
Speaker Change: All of them economic activity for the most after the election and we'll begin with a good illustration.
Speaker Change: Our historical pattern.
Speaker Change: Then you have catalysts for the elections in the U S. At this time.
Speaker Change: Probably more.
Speaker Change: Eventful.
Speaker Change: Pardon me.
Speaker Change: It had been expected and some more time.
Speaker Change: And we've had a fairly mentioned Barry.
Speaker Change: Hi, and increasing real rates of interest.
Speaker Change: Because.
Speaker Change: Obviously rates were constant.
Speaker Change: <unk> work declining rapidly.
Speaker Change: So the real way to think that we're going up.
Speaker Change: That obviously had an impact on overall spending both consumption and investment.
Speaker Change: And then to make things somehow Washington for some established in terms of okay.
Speaker Change: The short term.
Speaker Change: The New administration, I mean read a clear commitment to.
Speaker Change: Who will go there in the public finances.
Speaker Change: Which meant.
Speaker Change: Reducing the fiscal deficit.
Speaker Change: And these they've.
Speaker Change: Been doing.
Speaker Change: With a lot of steel.
Speaker Change: We've seen the numbers through February of this year.
Speaker Change: Yeah.
Speaker Change: Better than budget.
Speaker Change: You have a.
Speaker Change: A primary surplus that has increased.
Speaker Change: Significantly.
Speaker Change: Compared to last year, but you think for two years before and the financial district.
Speaker Change: Lower in African inflation.
Speaker Change: I think it was two years ago not to measure lastly, so but.
Speaker Change: Our view is.
Speaker Change: That piece.
Speaker Change: Uh huh.
Speaker Change: All these three effects that I have mentioned.
Speaker Change: Our way of really theirs.
Speaker Change: Elections have happened certainly I think would be relative.
Relatively soon.
Speaker Change: The real policy rates are coming down in Mexico that have been coming down and we expect them to continue to come down. So we are grateful for your interest or no.
Speaker Change: And we're going to go down and.
Speaker Change: And we expect that the government would be in a position second half of the year will be up even more.
Speaker Change: Forthcoming with their expenditures, so I think that.
Speaker Change: Our current expectation is that we are seeing the bottom.
Speaker Change: Right now.
Speaker Change: Our first quarter.
Speaker Change: And we would expect to see.
Speaker Change: This totally be brought online we kind of expect to see.
Speaker Change: <unk>.
Speaker Change: Recovery of sources, taking a couple of the year.
Speaker Change: If.
Speaker Change: There is a.
Speaker Change: Uh huh.
Speaker Change: Lot of people that believe that the.
Speaker Change: Yeah.
Speaker Change: U S MCA.
Speaker Change: <unk>.
Speaker Change: It may be negotiated early February of this year and that's the case I think that it will provide us an additional boost to the economy or a new customer.
Speaker Change:
Speaker Change: And so yes, we are quite positive.
Speaker Change: But there is still fluid.
Speaker Change: For the year I think roofing.
Speaker Change: Sorry.
Carlos: That's very helpful. Carlos and thank you also Daniel I appreciate it.
Speaker Change: Okay. Thank you everyone. Thank you.
Speaker Change: The next question goes to Marcellus time task of J P. Morgan. Please go ahead.
Speaker Change: Hi, Good morning, Daniela Carlos Oscar Daniela Thanks for taking my questions I have two.
Speaker Change: First is regarding Mexican prepaid I understand in the release you attributed the weakness most of it's the economy, but I would like to see if you could discuss a bit the competitive angle. We are seeing some of you know is growing very aggressively in prepaid, but do you think this is affecting it why could you discuss the competitive angle one prepaid in Mexico.
Speaker Change: Second question is regarding the appetite of American augers for M&A in the region.
Speaker Change: There are some players that are divesting some assets and wanted to know.
Speaker Change: What do we think about that thank you very much.
Speaker Change: Well, let's talk about Mexico first.
Speaker Change: One tool.
Speaker Change: Two.
Speaker Change: We already.
Speaker Change: Talk a little bit about broadband and postpaid I think in Mexico, we have a very good.
Speaker Change: A month on a breadth.
Speaker Change: Without them.
Speaker Change: Sorry on the broadband and on phosphate.
Speaker Change: Phosphate I think we are doing good people is consuming more are going up.
Speaker Change: In postpaid and in broadband, we're still gaining eh subscribers and moving to Pfizer in doing so I think when you talked about broadband fix and.
Speaker Change: Phosphates, we're doing okay in Mexico, and when you talk a little bit about the prepay that debt.
Speaker Change: I think it's the concern that things have been breathing.
Speaker Change: This morning is well first.
Speaker Change: And not the only thing is that it's the slowdown of the economy in Mexico I think that's the first thing you'll see that they are declining a little bit then they are.
Speaker Change: Declining because our consumers are spending a little bit.
Speaker Change: The less that they used to be when it's prepaid is really tied to the economy. So when things are good people consume more IP growth when things are not so good as low down then people are consuming a little bit less.
Speaker Change: The other side, we have a very aggressive competition in promotion. So so many unknowns like is a is very aggressive and they're in.
Speaker Change: They are growing.
Speaker Change: The difference is that when they cut another pool of 38 vessels and we're having a nice pool.
Speaker Change: 177 vessels, so that difference between their subscribers and our subscribers is maybe three four defense on that so.
Speaker Change: We have been having and looking in our strategy is to look for.
Speaker Change: Good on all of them are good maybe what these happening is that their subscribers or the promotions that the market and they are having are so aggressive that they just want to not.
Speaker Change: Not recharging give service for free and that's an issue and I hope that will solve it in the future, but they have been doing that for some time and then let's.
Speaker Change: Let's see what these when that's happening when.
Start to move our needle beat them baked out these promotions other than saying that I see this quarter is in number portability, they got being gaining in number portability, let's say the same but what <unk> seen the numbers both missing more subscribers in a number.
Speaker Change: Diabetes saw a number portability has been not so good that they used to be last year. So as subscribers when they start to move with their promotions than they are gonna deciding which are the company that you ought to go Naidu. So what the only thing is were focusing very good.
Speaker Change: Better on their highest artful costumers in Threep base I mean, both space.
Speaker Change: Our our.
Speaker Change: Number portability is doing a little bit better than last year. So I think we are.
Speaker Change: Starting to see better.
Speaker Change: Better numbers on that.
Speaker Change: That will be exactly what these happening in Mexico, So big.
Speaker Change: Promotions, where people is not paying or paying very low amount of money and then when they want to reach out to pay or will not do that and when this promotion will learn I think is going to be in.
Speaker Change: Embedded in how they are going to retain those customers are.
Speaker Change: <unk> hundred 77 vessels Intelsat 38 vessels in the other company. So it's it's exactly what is happening is not only one thing you have is low down.
Speaker Change: Lost promotions plus our strategy.
Speaker Change: All of that is what these happen each year.
Speaker Change: And another and I want to do another announcement.
Speaker Change: It has been since the last call that we don't give out guidance for budget for Capex budget.
Speaker Change: We got that.
Speaker Change: Announcement, then the Capex for this year is going to be lower than last year, it's going to be fixed daily on seven corn bread and <unk>.
Speaker Change: Only because we're seeing.
Speaker Change: Low down in all the economies a little bit slowdown we have been investing a lot more being a lot with <unk>. We have been doing the last three years more Pfizer a lot in D C. Spence.
Speaker Change: I Love all our cloud and data center is solidly in place of that gave us.
Speaker Change: A chance right now this year with a slowdown that will reduce the capex tools <unk> said and that is what we decided against that in the board I feel very comfortable on that.
And.
Speaker Change: That's what we decide on that.
Speaker Change: Thank you and the M&A do you have any comment on the M&A. When we're open to M&A I think will be a little bit difficult debt in the region.
Speaker Change: We will have something alone, but if you are saying because telefonica <unk> selling their assets and we are.
Speaker Change: Sure.
Speaker Change: Word of that.
Speaker Change: We're open to see if the if something fits in America multi list strategy.
Speaker Change: We are open to see anything.
Speaker Change: Perfect just on the Capex.
Speaker Change: Does this change your three year Capex view or is more of a relocation of capex.
Speaker Change: Between between the years, just just to understand how this box with the guidance, but we don't know.
Speaker Change: Very difficult to see what's going to be that that capex of next year.
Speaker Change: Bob.
Bob: Thank you.
Bob: This year is going to be $6 seven.
Bob: Next year difficult to say.
Bob: But I don't think that the triple net go so high.
Bob: We predicted but I don't know depending on the on the on the growth depending on the traffic depending on a lot of things that are.
Bob: We're going to see around this year.
Bob: Perfect. Thank you very much for your answers.
Bob: Thank you.
Bob: The next question guys, you Paani kind of memory of HSBC. Please go ahead.
Bob: Yeah.
Bob: Thank you for taking my questions. The first question is regarding your corporate network.
Bob: In the <unk> segment.
Bob: You're seeing some pressure due to the.
Bob: Global concerns on growth on the corporate segment revenue.
And do you expect the growth rate to continue in this segment.
Bob: My second question is regarding Colombia, the margins have come down.
Bob: NASA nest quarter on quarter, what is driving.
Bob: Margin decline.
Bob: Thank you.
Bob: Whenever I'm going to start in Colombia, I think that Colombia is doing much better Colombia.
Our.
Bob: The service revenue is growing six 4% this quarter wireless revenue.
Bob: Eight three so we're growing and we're growing more that's why we're investing a little bit more in growth and that's the reason why our our EBITDA in terms of course, then that should read those a little bit but we grow.
Bob: Our EBITDA.
Bob: Yeah.
Bob: 0.244, so it's early days growing.
Bob: And.
Bob: We are doing good in the market, we are recovering and I think.
Bob: We're going to have a good year.
Bob: In Colombia.
Bob: 25 is going to be a good year for us.
Bob: And the other thing in the corporate segment Oscar can talk a little bit about that I think we are very strong we have been investing a lot in it.
Bob: Sales speed all in.
Bob: <unk> seen the <unk> says in alliances in our data centers and it's a very important market and we're going to continue to be.
Focusing on that.
Bob: Some times.
Oscar: The corporate what Oscar can talk a little bit about that some times in the quarter, we gained some big eh.
Oscar: Customers. So that's why if we grow a little bit more or the 100 seats in the other quarter, but all overall, we're focusing in the quarter for this segment.
Speaker Change: And we want to grow and be strong on that but I'll start with more detail.
Speaker Change: Thank you and then as you mentioned last year, we won a very large project now.
Now we have a very very strong pipeline, but as you know with the new conditions of the people.
Speaker Change: You can take more time to get through the <unk>, what we see in the pipeline around cloud services <unk> data centers.
Speaker Change: We see very very huge pipeline so.
Speaker Change: We believe that we will catch up to do this.
Speaker Change: Yeah.
Speaker Change: The people is taking more time to take over.
Speaker Change: Issue right now given the economic situation.
Speaker Change: Pipeline that we have is very very strong.
Speaker Change: I need to see.
Speaker Change: Uh huh.
Speaker Change: Thank you everyone. It is pretty cool.
Speaker Change: Okay.
Speaker Change: The next question goes to the tour to meet <unk> of Goldman Sachs. Please go ahead.
Speaker Change: Hello, Good morning, and thanks for taking our questions. We have two question from our side. The first one is a follow up on the on the standard reduction the reduction in spending by prepaid customers in Mexico do you have any visibility on whether customers are simply reducing the internet.
Speaker Change: Users are switching to a lower cost competitor or it's just kind of extent are using Wi Fi a lot tomorrow gesture to check if you have any visibility on.
Speaker Change: How people are being able to actually reduce their spending.
Speaker Change: We call protection of their data usage.
Speaker Change: Their data habits and the second question from our side on a similar note also discussing Mexico could you give us a bit more off of updates on how you see the competitive environment for our broadband.
Speaker Change: Given the following the good results in this quarter. Thank you very much.
Speaker Change: On the prepaid.
Speaker Change: What I see in the.
Speaker Change: What then looking on the prepaid.
Speaker Change: The reduction on <unk>, because the slowdown in the economy because people east.
Speaker Change: Delaying a little bit the recharge of the phone you sell a guide of 15 days and sometimes they.
Speaker Change: Recharged before because they have all their they bet that they data.
Speaker Change: Finish sometimes day recharged today, they wait a little bit the white, one or two days and then they go on recharge and that gave us that reduction on that so people is delaying a little bit there.
Speaker Change: <unk>.
Speaker Change: And recharging the car T is what it is.
Speaker Change: It is.
Speaker Change: It's what is happening right now on the broadband we're going to be still.
Speaker Change: We're doing good and we're going to still be aggressive and as we put more fiber were going to change more customers, we have 90% of our customers.
Speaker Change: Our net debt through fiber and.
Speaker Change: I think we're going to have more.
Speaker Change: Loyal customers with fiber will the speeds.
Speaker Change: And.
Speaker Change: Good prices I think we are very aggressive in the market in the broadband and I think that's what is happening right now.
Speaker Change: Sure.
Speaker Change: So I'll give you a bit more color on the on the prepaid.
Speaker Change: Victor.
Speaker Change: The prepaid artful blueprint, while growing our year ago four 5%.
Speaker Change: By the third quarter, it had slowed down to $3 one.
Speaker Change: Zero point 18 before.
Speaker Change: It was minus 2.2 is the first quarter of the year. So this is very much in line with the chart that I showed you with the lender of domestic.
Speaker Change: Domestic consumption, that's basically the same timing.
Speaker Change: I'm going to say it.
Speaker Change: The whole issue prepaid before recently.
Speaker Change: For for prepaid to excuses that people have more control over their spending.
Speaker Change: Uh huh.
Speaker Change: From a bit more cautious or uncertain about the environment there.
Speaker Change: Particularly.
Speaker Change: They are spending they don't have to spend in and out every every month.
Speaker Change: With our regular post example, things so that's the beauty of Prepays for the people.
Speaker Change: That's what they're spending very rapidly.
Speaker Change: The first signs of a.
Speaker Change: No.
Speaker Change: Right.
Speaker Change: As I said is a slowdown of the economy and knowledgeable big promotion for competitions are not the ones that theyre doing is not only one thing what is happening in Mexico, Theres, a couple or three things that are.
Speaker Change: We already explained and it slips that market there so.
Speaker Change: I think we'll be better in the future I don't know for how long, it's going to be so aggressive.
Speaker Change: No.
Speaker Change: We have the best network, we have very good coverage the best.
Speaker Change: System side so.
Speaker Change: Very good quality in the network. So that also currencies not only promotions or other things bounce also on that.
Speaker Change: I'm also very clearly thank you very much.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: As a reminder, if you would like to ask a question. Please press star followed by one on your telephone keypad.
Speaker Change: And the next question that you look at Brendan of Bank of America. Please go ahead.
Speaker Change: Oh.
Brendan: Hi, Good morning. Thank you for taking my questions I have two here on my side.
Brendan: The first one you mentioned a little bit about the recent M&A moves that we saw in Latin America I just wanted to check if you are already seeing some changes in terms of competition and the competitive environment and any of the regions.
Brendan: We have seen M&A or that we're seeing a lots of conversations about.
Brendan: What could be happening in the second one I'll be true have incorporated to the Chilean operations could you give us on that.
Brendan: Based on the strategy for the region.
Brendan: The main focus will be.
Brendan: Increasing profitability or what sort of demand growth drivers that you see for the region. Thank you.
Brendan: For the original 14.
Brendan: For for Chile.
Brendan: Okay well.
Brendan: M&A I think everybody understands that the M&A brings consolidation consolidation needs much better for all the market for peso stronger competitors and that will be good for us I don't think.
Brendan: That wouldn't be there will be the case of Colombia, let's say the case of Argentina.
Brendan: Validation is not that.
Brendan: Yeah.
Brendan: Yeah.
Brendan: On Chile.
Brendan: Got it.
Brendan: What you said, what's the question if we want to go for profitability or for market share I think in Chile, We went to go for profitability and for market share I think this deal we have.
Brendan: Not very high market share in the <unk>.
Brendan: Wireless market, we're growing we're going to grow there we're changing the network, we're putting more coverage.
Brendan: Where do we <unk> and we were buying spectrum, so where we are in.
Brendan: In.
Brendan: <unk>.
Brendan: In prepaid and postpaid.
Brendan: We're going to be targeting more.
Brendan: Customers more market share.
Brendan: And try to grow there were still.
Brendan: Larry.
Brendan: Small in market share, we want to grow in the broadband.
Brendan: We have also added with the strategy, we're giving television with John as we have the best DB and we're moving to fiber, we're moving very fast to fiber and that.
Brendan: It's being very good for us churn has been reduced so we are having not six months plan in Chile, we're having at three five year plan. We can T land. That's what we are targeting moving to fiber, putting best network doing quality very very competitive.
Brendan: The other that Scott is saying we.
Speaker Change: Still have a long way to go on the synergies so.
Brendan: Merging these two companies.
Brendan: We still have a lot of synergies to go so I'm sure that we're going to grow our market share and I'm sure that we're going to grow our EBITDA margin in the future. So that's what without being too.
Brendan: Very clear thank you for the answers.
Brendan: Thank you.
Okay.
Brendan: The next question guys, you Carlos Macau, Russia.
Brendan: Carlos Please go ahead.
Brendan: Okay.
Brendan: Good morning couple of questions on my end.
Brendan: Hopefully.
Brendan: They're not just housekeeping questions, but.
Speaker Change: On Chile, Paraguay, and Uruguay that you're reporting together now.
Speaker Change: You mentioned in the press release, a decent pro forma figures for Chile, and yet there is a double digit increase in EBITDA, a massive increase in the EBITDA margin.
Speaker Change: Just wanted to understand what is the nature of what is behind this is this is Chile doing much better or is there any improvement perhaps in fairway in Norway.
Speaker Change: And sort of a similar question also in Central America. You also had an outstanding increase in the EBITDA margin and there's not really a ton of explanation in the press release, So would love to hear your thoughts on that thank you.
Speaker Change: What.
Speaker Change: Firstly in Central America.
Speaker Change: That we have this.
Speaker Change: Commercial had gaming.
Speaker Change: The cyber attack in last year in January a little bit of February.
Speaker Change: And.
Speaker Change: And the comparison between last year and this year is different but if you look what we do in fourth quarter and what we're gonna is having in the third quarter. We have been as I said investing very good in in what they're buying.
Speaker Change: In frequency doing more clawbacks.
Speaker Change: Yeah.
Speaker Change: In <unk>.
Also all sort of excited about doing more fiber all around.
Speaker Change: And we're seeing good performance in our in the other side, we are being very.
Speaker Change: <unk> on the cost and expenses, so we have to reduce cost and controlling expenses. So we are doing good.
Speaker Change: This this quarter is a little bit difficult to compare against last quarter of last year.
Speaker Change: Same quarter of last year, but you've already got messy second quarter.
Speaker Change: With a good comparison and youre going to see very good not the growth that we have right now, but we're going to see very good growth.
Speaker Change: In in <unk>.
Speaker Change: Central America, I think we're doing good at not.
Speaker Change: Not only Central America and the Caribbean. We're also doing good Dominican Republic has been doing good.
Speaker Change: Also payroll has been growing and gaining market share.
Speaker Change: Colombia, we're doing very strong eastern Europe, we are growing and being being gaining also market share and reducing costs. So to be honest all overall in America mobile we had.
Speaker Change: Because all the investments that we have been having for the last five years four years.
All the control of the costs that we're having investing in our people training and doing more on all the corporate side I think we have a good quarter.
Speaker Change: Clutter, we're gaining market shares and and are being.
Speaker Change: Good in.
Speaker Change: Controlling costs that may be so all overall I.
Speaker Change: I think in Paraguay also you were talking about Paraguay, and Uruguay, we're doing good I don't know if you want to talk a little bit, though Scott about Paraguay, Uruguay, Chile.
Speaker Change: Okay.
Speaker Change: Alright.
Speaker Change: Before talking about the actual operations of Paraguay and Uruguay.
The period of time.
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: The.
Speaker Change: The financial statements do not have to pro forma rate.
Speaker Change: And actually I do not have to lymphoma or <unk>.
Speaker Change: Now in the fiction Southern cone, which you would be first time that we come up with these.
Speaker Change: The infection at southern cone.
Speaker Change: We want to include pro forma <unk>.
Speaker Change: You could look for your models you could have some basis.
Speaker Change: But the numbers are and you can basically come to terms with okay.
Speaker Change: Uh huh.
Speaker Change: We would expect.
Speaker Change: Ah soon enough.
Speaker Change: Ctrip to be hyper inflationary.
Speaker Change: I wanted to be.
Speaker Change: Next year, we can.
Speaker Change: <unk> group.
Speaker Change: All of the.
Speaker Change: The financial and operating statistics.
Speaker Change: <unk>.
Speaker Change: Argentina, Chile, Paraguay, and Uruguay within the same the same okay.
Speaker Change: I would expect that we were going to have the combined.
Speaker Change: Numbers or financial and operation for southern cone.
Speaker Change: Beginning next year mid year, we will still have a containment fitbit are in USD.
Speaker Change: To give you an idea of what it is.
Speaker Change: Looked like.
Speaker Change: For the rest of the group, which it would wipe out way in Chile, we are providing for this purpose the pro forma.
Speaker Change: And on the operations to Carlos.
Speaker Change: Sorry, sorry, sorry.
Speaker Change: No no. Please.
Speaker Change: Thank you.
Speaker Change: No I think that's on the P&L.
Speaker Change: Just specifically I mean, we can follow up with a new level.
Speaker Change: In the Chile, Paraguay, and Uruguay section.
Speaker Change: The.
Speaker Change: The revenue increase it looks like it is pro forma yet the EBITDA increased 46% so that doesn't look pro forma.
Speaker Change: So either there is an inconsistency or is it.
Speaker Change: Perhaps a massive improvement in the profitability.
Speaker Change: Neuro categories. It is pro forma.
Speaker Change: It is pro forma new careful just automotive.
Speaker Change: Cool.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Right, So I would say.
Speaker Change: It's not an or inorganic effects what is the driver behind the margin increase even though we just got.
Speaker Change: Okay.
Speaker Change: Alright.
Speaker Change: I'll tell you is the one year ago debit that lessen sold we have been growing our EBITDA margin in Chile. If the question is because of the EBITDA margin is pro forma book, we are growing variables our margins vehicles, all the synergies that we're having in Chile.
Speaker Change: What is happening if you that's really got it.
Speaker Change: We are having a very good EBITDA and growing our EBITDA in Chile, and Chile is doing good and the synergies are working very good.
Speaker Change: Against last year, we spend a lot of money, we take out some people will reduce.
Speaker Change: Some costs.
Speaker Change: We have.
Speaker Change: Content cost a lot of teenagers.
Speaker Change: Maintenance cost that the new.
Speaker Change: Network as we're saving some money with a new network. So yes that goes directly to our EBITDA numbers.
Speaker Change: That's great that's exactly the question I appreciate it.
Speaker Change: Yeah Okay.
Okay.
Speaker Change: But a lot from the tour tomato of Goldman Sachs. Please go ahead.
Speaker Change: Yeah, Hi, just a very quick follow up on the on the new Capex guidance.
Speaker Change: The.
Speaker Change: Back in the previous earnings call. It was mentioned that there could be some additional capex for Chile.
Speaker Change: This new guidance already crude what's your plan to invest in Chinas already to cap rates. Thank you no no no.
Speaker Change: All our Capex guidance includes all the Capex of the company. So includes Chile includes everything okay.
Speaker Change: Perfect.
Speaker Change: We used to give a capex guidance before that three year Capex guidance and I think the last question is if we're going to the reduction that we have this year maybe increase it for next year I don't know I don't think <unk> no.
Speaker Change: I think the reduction.
Speaker Change: This year will not increase the normal guidance of Capex for next year I don't know Bob.
Speaker Change: We feel that we can save some capex.
Speaker Change: For the future.
Speaker Change: Clear thank you very much.
Speaker Change: Thank you.
Thank you we have no further questions I'll hand back to Mr. Daniel Hajj for any closing comments.
Speaker Change: Oh, just want to tank.
Speaker Change: Everyone for being in the call. Thank you very much.
Speaker Change: Thank you. This concludes today's conference call you may now disconnect your lines.
Speaker Change: Yeah.
Speaker Change: [music].