América Móvil's first quarter of 2024 financial and operating report

April 16th, 2024 / 1Q24

Mexico City - América Móvil, S.A.B. de C.V. ("América Móvil") [BMV: AMX] [NYSE: AMX, AMOV], announced today its financial and operating results for the first quarter of 2024.

  • We added 1.5 million wireless subscribers in the first quarter, of which 1.3 million were contract clients. Of the postpaid gains, 555 thousand came from Brazil, 260 thousand from Austria, 126 thousand from Colombia and 105 thousand from Mexico. In the prepaid segment we added 263 thousand subscribers with Colombia contributing with 378 thousand net adds, Argentina 226 thousand and Brazil 146 thousand.
  • On the fixed-line platform we connected 562 thousand broadband accesses-the best performance in four years-with Mexico adding 325 thousand clients followed by Brazil with 92 thousand and Colombia with 23 thousand.
  • First quarter revenue totaled 203.3 billion pesos. Service revenue was up 1.1% year-on-year in nominal peso terms and 5.0% year-on-year at constant exchange rates.
  • Fixed-lineservice revenue growth accelerated from 3.0% the precedent quarter to 5.1% at constant exchange rates. Mexico led the way posting the fastest growth rate in several years: 9.7%, followed by Peru that was up 8.0%. Brazil reported a 1.0% year-on-year increase.
  • On the mobile platform service revenue expanded 4.9% year-on-year at constant exchange rates driven by Mexico, Brazil and Peru with revenue growth picking up sequentially in all three countries, to 5.8%, 8.5% and 4.9%, respectively.
  • EBITDA of 80.6 billion pesos was down 2.6% annually in nominal peso terms. At constant exchange rates and adjusting for tower sales, it was up 7.5% year-on-year, its fastest pace in eight quarters.
  • Our operating profit totaled 40.8 billion pesos in the quarter. At constant exchange rates and adjusting for tower sales it increased 13.0% year-on-year. After comprehensive financing costs of 13.7 billion pesos it resulted in a net profit of 13.5 billion pesos.
  • Our net financing of 17.4 billion pesos coupled with our operating cash flow allowed us to cover 21.8 billion pesos in capital expenditures, 4.8 billion pesos in share buybacks and 6.5 billion pesos in labor obligations.
  • At the end of March our net debt-excludingleases-stood at 392.5 billion pesos. It was equivalent to a net debt-to-EBITDAaL ratio of 1.5 times.

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Content

Highlights

Relevant events

Subscribers

América

Móvil

Consolidated

Mexico

Brazil

Colombia

Other South

America

Central

America and

Caribbean

Austria

Other

European

Currency

Exchange

Rates

Appendix

Glossary

We will host our conference call to discuss 1Q24 financial and operating results on April 17th at 9:00 am Mexico City time. To access the call please log on to www.americamovil.com/investors

América Móvil Fundamentals

1Q24

1Q23

Earnings per Share (Mex$) (1)

0.22

0.48

Earning per ADR (US$) (2)

0.25

0.51

EBITDA per Share (Mex$) (3)

1.29

1.31

EBITDA per ADR (US$)

1.52

1.40

Net Income (millions of Mex$)

13,494

30,146

Average Shares Outstanding (billion)

62.3

63.3

Shares Outstanding End of Period (billion)

62.1

63.2

  1. Net Income / Average Shares Outstanding
  2. 20 shares per ADR
  3. EBITDA / Average Shares Outstanding

América Móvil's Subsidiaries as of March 2024

Country

Brand

Main Activity

Equity

Mexico

Telcel

wireless

100.0%

Telmex

wireline

98.8%

Argentina

Claro

wireless/wireline

100.0%

Austria

A1

wireless/wireline

59.1%

EuroTeleSites

towers

57.0%

Brazil

Claro

wireless/wireline

99.6%

Colombia

Claro

wireless/wireline

99.4%

Costa Rica

Claro

wireless/wireline

100.0%

Dominicana

Claro

wireless/wireline

100.0%

Ecuador

Claro

wireless/wireline

100.0%

El Salvador

Claro

wireless/wireline

95.8%

Guatemala

Claro

wireless/wireline

99.3%

Honduras

Claro

wireless/wireline

100.0%

Nicaragua

Claro

wireless/wireline

99.6%

Paraguay

Claro

wireless/wireline

100.0%

Peru

Claro

wireless/wireline

100.0%

Puerto Rico

Claro

wireless/wireline

100.0%

Uruguay

Claro

wireless

100.0%

Other Stakeholdings

Country

Brand

Main Activity

Equity

Chile

Claro/VTR

wireless/wireline

50.0%

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Content

Highlights

Relevant events

Subscribers

América

Móvil

Consolidated

Mexico

Brazil

Colombia

Other South

America

Central

America and

Caribbean

Austria

Other

European

Currency

Exchange

Rates

Appendix

Glossary

Note

The reported figures for Argentina corresponding to the first quarter of 2024 are presented in accordance with IAS29 reflecting the effects of inflationary accounting as the Argentinean economy is deemed to be hyperinflationary. All comparisons at constant exchange rates for América Móvil's consolidated figures will exclude Argentina to ensure consistency.

Relevant Events

Proposals for the shareholders' meeting

On March 19th, 2024 we announced that our Board of Directors will submit for approval at our annual shareholders' meeting the following proposals: 1) the payment of an ordinary dividend of MXP$0.48 per share, payable in two equal installments and 2) the allocation of 15 billion pesos to the share-buyback fund for the April 2024 - April 2025 period. The meeting will be held on April 29th, 2024.

MxP 17.5Bn five-year Global Note

On March 22nd, 2024 we issued the third offering under our Global Peso Notes Program. It was a five-year, 10 1/8% bond in the amount of 17.5 billion pesos. Whereas local investors are the dominant group in this Program, nearly a third of the bonds in this transaction were placed with international investors. The notes issued under this Program since June 2023 total 54.5 billion pesos.

KPN exchangeable bond matured

On March 2nd, 2024, our EUR 2.1 billion bond exchangeable into KPN shares matured. Prior to maturity we received notification from all bondholders excercising their right to call the KPN shares at the strike price of EUR 3.1185. We handed over our KPN shares and have ceased to be a shareholder in KPN.

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Content

Highlights

Relevant events

Subscribers

América

Móvil

Consolidated

Mexico

Brazil

Colombia

Other South

America

Central

America and

Caribbean

Austria

Other

European

Currency

Exchange

Rates

Appendix

Glossary

Access Lines

1.3M postpaid net adds

In the first quarter we added 1.5 million wireless subscribers of which 1.3 million were postpaid clients, including Brazil with 555 thousand, Austria with 260 thousand, Colombia with 126 thousand and Mexico with 105 thousand. On our prepaid platform we gained 263 thousand subscribers in the period. Colombia added 378 thousand, followed by Argentina with 226 thousand and Brazil with 146 thousand. On the other hand, we disconnected 584 thousand subscribers in Central America mostly on account of a cybersecurity incident that affected our ability to activate clients.

562k new broadband acceses, best performance in four years

On the fixed-line segment we connected 562 thousand new broadband accesses-the best performance in four years-Mexico was the main contributor with 325 thousand clients, followed by Brazil with 92 thousand and Colombia with 23 thousand. Voice lines and PayTV units fell by 40 thousand and 112 thousand, respectively.

Our postpaid base +6.4% YoY and fixed-broadband accesses +4.8% YoY

Our subscriber base reached 312 million wireless subscribers at the end of March, of which 123 million were postpaid clients. In addition, we had 74 million fixed-line RGUs, including 33 million broadband accesses, 13 million Pay TV units and 29 million land-lines. Our postpaid base increased 6.4% year-on-year while fixed-broadband accesses were up 4.8%.

Wireless subscribers as of March 2024

Total(1) (Thousands)

Country

Mar '24

Dec '23

Var.%

Mar '23

Var.%

Argentina, Paraguay and Uruguay

28,301

28,043

0.9%

27,178

4.1%

Austria(2)

10,483

10,234

2.4%

9,250

13.3%

Brazil

87,652

86,951

0.8%

82,844

5.8%

Central America

16,717

17,266

-3.2%

16,845

-0.8%

Caribbean

7,668

7,592

1.0%

7,410

3.5%

Colombia

39,744

39,240

1.3%

38,068

4.4%

Eastern Europe

14,957

15,011

-0.4%

14,867

0.6%

Ecuador

9,479

9,426

0.6%

9,163

3.5%

Mexico

83,994

83,834

0.2%

82,982

1.2%

Peru

12,645

12,510

1.1%

12,347

2.4%

Total Wireless Lines

311,641

310,106

0.5%

300,952

3.6%

  1. Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated.
  2. Includes A1 Digital subscribers.

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Content

Highlights

Relevant events

Subscribers

América

Móvil

Consolidated

Mexico

Brazil

Colombia

Other South

America

Central

America and

Caribbean

Austria

Other

European

Currency

Exchange

Rates

Appendix

Glossary

Fixed-Line and Other Accesses (RGUs) as of March 2024

Total(1) (Thousands)

Country

Mar '24

Dec '23

Var.%

Mar '23

Var.%

Argentina, Paraguay and Uruguay

3,670

3,549

3.4%

3,055

20.2%

Austria

2,807

2,847

-1.4%

2,917

-3.8%

Brazil

22,879

23,089

-0.9%

23,889

-4.2%

Central America

4,963

4,923

0.8%

4,700

5.6%

Caribbean

2,800

2,787

0.5%

2,734

2.4%

Colombia

9,487

9,440

0.5%

9,263

2.4%

Eastern Europe

3,461

3,423

1.1%

3,304

4.8%

Ecuador

560

560

0.1%

623

-10.1%

Mexico

21,598

21,171

2.0%

20,944

3.1%

Peru

1,886

1,913

-1.4%

1,985

-5.0%

Total RGUs

74,112

73,702

0.6%

73,413

1.0%

(1)Fixed Line, Broadband and Television (Cable & DTH).

Broadband accesses as of March 2024

Total(1) (Thousands)

Country

Mar '24

Dec '23

Var.%

Mar '23

Var.%

Argentina, Paraguay and Uruguay

1,514

1,452

4.2%

1,229

23.2%

Austria

1,272

1,284

-0.9%

1,301

-2.2%

Brazil

10,083

9,991

0.9%

9,822

2.7%

Central America

1,573

1,552

1.3%

1,461

7.7%

Caribbean

1,061

1,049

1.1%

1,010

5.0%

Colombia

3,395

3,372

0.7%

3,326

2.1%

Eastern Europe

1,472

1,450

1.5%

1,396

5.5%

Ecuador

328

323

1.7%

341

-3.7%

Mexico

10,814

10,489

3.1%

10,164

6.4%

Peru

1,010

996

1.4%

971

4.1%

Total Broadband Accesses

32,521

31,959

1.8%

31,019

4.8%

  1. Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated.

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Content

Highlights

Relevant events

Subscribers

América

Móvil

Consolidated

Mexico

Brazil

Colombia

Other South

America

Central

America and

Caribbean

Austria

Other

European

Currency

Exchange

Rates

Appendix

Glossary

América Móvil Consolidated Results

The strong rally in interest rates that took place in the latter part of 2023 came to an end in the first quarter as strong employment readings and other indications of a still vibrant economy kept pushing back the timing of expected reductions by the Fed of its discount rate and cutting back the expected number of such reductions to be had this year. By the end of March, 10 year U.S. Treasury yields had increased 32 basis points from December, to 4.20%, and they would continue climbing into the second quarter. The Mexican peso, which had depreciated slightly vs. the U.S. dollar at the beginning of the year, rubbed off the interest rate increases and resumed its appreciating trend gaining ground vs. the dollar and all other currencies in our region of operations. The Brazilian real observed a depreciating trend vs. the dollar throughout the quarter while the Colombian peso remained stable.

Our first quarter revenue totaled 203.3 billion Mexican pesos, with service revenue expanding 1.1% to 170.9 billion pesos and other revenue declining 71.7% to 2.4 billion pesos. The latter figure reflects extraordinary revenue in the first quarter of 2023 on account of the sale of towers by Domininican Republic and Peru; this quarter there were practically no tower sales. At constant exchange rates service revenue increased 5.0%, up from 3.7% the precedent quarter.

The Mexican peso rose against all currencies in our region of operations except for the Colombian peso. On a year-on-year basis the Mexican peso rose 9.9% vs. the U.S. dollar, 8.6% vs. the euro and 4.7% vs. the Brazilian real. Vis-à-vis the Colombian peso, it fell 9.5% in the period.

We saw an acceleration of service revenue growth on both the fixed-line and the mobile platforms, which improved sequentially from 3.0% to 5.1% on the former and from 4.2% to 4.9% on the latter. Mexico was the main driver behind fixed-line revenue expansion, which went from 5.9% in the precedent quarter to 9.7% in the current period; the fastest rate of growth in years. It was followed by Peru, where the revenue growth rate nearly doubled sequentially, from 4.4% to 8.0%. Eastern Europe stayed very much on trend, continuing to post the fastest year-on- year increase of 13.6%. Brazil reported a 1.0% increase, its best showing in seven years, as the headwinds from PayTV of the last five years gave way to solid broadband revenue growth.

Within the fixed-line platform corporate networks revenue- which represent 21% of fixed-line service revenue-was the most dynamic business line, climbing 13.5% year-on-year, followed by broadband services that was up 6.4%.

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Content

Highlights

Relevant events

Subscribers

América

Móvil

Consolidated

Mexico

Brazil

Colombia

Other South

America

Central

America and

Caribbean

Austria

Other

European

Currency

Exchange

Rates

Appendix

Glossary

On the mobile platform Mexico, Brazil and Peru were the countries where revenue growth picked up the most sequentially, going from 4.5% to 5.8% in Mexico, from 7.1% to 8.5% in Brazil and from 2.6% to 4.9% in Peru. Colombia returned to positive mobile revenue growth after two quarters of yearly declines.

EBITDA came in at 80.6 billion pesos. It was 2.6% lower than a year before on account of the extraordinary tower sales of the first quarter of 2023 mentioned above that affected the annual comparison. At constant exchange rates, and adjusting for the tower sales, EBITDA increased 7.5% year-on-year, its fastest pace in eight quarters, buoyed by strong subscriber and revenue growth on both platforms and consistent control over costs and expenses.

Our operating income reached 40.8 billion pesos, a 7.6% decline from the year before; correcting for the tower sales, it was up 2.5% in Mexican peso terms and 13.0% at constant exchange rates.

Our comprehensive financing costs totaled 13.7 billion pesos in the first quarter; they were close to zero a year before on the back of strong foreign exchange gains that had amounted to 13.7 billion pesos. This year we booked 1.7 billion pesos in foreign exchange losses.

We registered a net profit in the amount of 13.5 billion pesos that was equivalent to 22 peso cents per share and 25 dollar cents per ADR. The difference vis-à-vis the year-earlier quarter is mostly explained by the aforementioned tower sales and the difference in the foreign exchange gains/losses.

Our net debt excluding leases ended March at 392 billion pesos, having increased by 7.0 billion pesos from December. In cash flow terms we obtained net financing in the amount of 17.4 billion pesos which helped us fund our capital expenditures, 21.8 billion pesos, and cover 4.8 billion pesos in share buybacks and 6.5 billion pesos in labor obligations. In the first part of every year we face working capital requirements that also need to be financed. At the end of March, our leverage ratio stood at 1.5 LTM EBITDAaL.

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Content

Highlights

Relevant events

Subscribers

América

Móvil

Consolidated

Mexico

Brazil

Colombia

Other South

America

Central

America and

Caribbean

Austria

Other

European

Currency

Exchange

Rates

Appendix

Glossary

América Móvil's Income Statement

Millions of Mexican pesos

1Q24

1Q23

Var.%

Service Revenue

170,890

169,053

1.1%

Equipment Revenue

29,963

31,233

-4.1%

Other Revenue

2,444

8,641

-71.7%

Total Revenue

203,298

208,926

-2.7%

Cost of Service

51,920

51,824

0.2%

Cost of Equipment

25,916

27,646

-6.3%

Selling, General & Administrative Expenses

43,599

43,957

-0.8%

Others

1,279

2,790

-54.1%

Total Costs and Expenses

122,714

126,218

-2.8%

EBITDA

80,584

82,708

-2.6%

% of Total Revenue

39.6%

39.6%

Adjusted EBITDA(2)

80,328

78,108

2.8%

% of Total Revenue

39.6%

38.6%

Depreciation & Amortization

39,826

38,583

3.2%

EBIT

40,758

44,125

-7.6%

% of Total Revenue

20.0%

21.1%

Net Interest Expenses

11,278

8,722

29.3%

Other Financial Expenses

756

4,606

-83.6%

Foreign Exchange Loss

1,674

-13,702

112.2%

Comprehensive Financing Cost (Income)

13,708

-374

n.m.

Income & Deferred Taxes

11,161

12,677

-12.0%

Net Income before Minority

Interest and Equity Participation in Results of

15,889

31,823

-50.1%

Affiliates

Equity Participation in Results of Affiliates

-1,581

-583

-171.1%

Minority Interest

-814

-1,094

25.5%

Net Income

13,494

30,146

-55.2%

  1. Adjusted for extraordinary items, particularly the sale of towers in 2023 by Claro Peru and Claro Dominicana; and a small portion in 2024 by Telmex.
    n.m. Not meaningful.

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Content

Highlights

Relevant events

Subscribers

América

Móvil

Consolidated

Mexico

Brazil

Colombia

Other South

America

Central

America and

Caribbean

Austria

Other

European

Currency

Exchange

Rates

Appendix

Glossary

Balance Sheet - América Móvil Consolidated(1)

Millions of Mexican Pesos

Mar '24

Dec '23

Var.%

Mar '24

Dec '23

Var.%

Current Assets

Current

Liabilities

Cash, Marketable

Securities

& Other

71,280

100,353

-29.0%

Short Term Debt

98,427

160,964

-38.9%

Short Term

Investments

Accounts

211,337

208,248

1.5%

Lease-Related

29,809

24,375

22.3%

Receivable

Debt

Other Current

24,378

12,294

98.3%

Accounts

137,229

153,328

-10.5%

Assets

Payable

Inventories

21,286

19,272

10.5%

Other Current

220,473

185,740

18.7%

Liabilities

328,282

340,167

-3.5%

485,938

524,407

-7.3%

Non Current

Non Current

Assets

Liabilities

Plant &

Equipment,

1,241,549

1,233,364

0.7%

Long Term Debt

384,310

339,713

13.1%

gross

-Depreciation

619,626

604,713

2.5%

Lease-Related

160,972

100,794

59.7%

Debt

Plant &

621,922

628,651

-1.1%

Other Liabilities

175,815

177,569

-1.0%

Equipment, net

Rights of Use

179,391

113,568

58.0%

721,097

618,077

16.7%

Investments

in Affiliates

31,652

29,295

8.0%

and Other

Investments

Deferred Assets

Goodwill (Net)

143,054

146,079

-2.1%

Intangible Assets

121,803

121,499

0.3%

Shareholder's

393,902

421,702

-6.6%

Equity

Deferred Assets

174,834

184,927

-5.5%

Total Assets

1,600,937

1,564,186

2.3%

Total Liabilities

1,600,937

1,564,186

2.3%

and Equity

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Highlights

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Subscribers

América

Móvil

Consolidated

Mexico

Brazil

Colombia

Other South

America

Central

America and

Caribbean

Austria

Other

European

Currency

Exchange

Rates

Appendix

Glossary

(1)Includes current portion of Long Term Debt.

Mexico

325k new broadband accesses

We gained 160 thousand mobile subscribers in the first quarter-two thirds were postpaid- to finish March just shy of 84 million subscribers. On the fixed-line platform we added 325 thousand broadband accesses, our best performance in over 15 years, to end the quarter with 21.6 million RGUs, 3.1% more than a year before.

Service revenue picked up to 7.0% YoY

First quarter revenue totaled 84 billion pesos, with service revenue growth picking up to 7.0% from 4.9% in the prior quarter. Mobile service revenue expanded 5.8% on the back of a 6.0% postpaid revenue growth, while fixed-line service revenue rose 9.7% buoyed by corporate networks revenue, up 23.8% and broadband service revenue growth that remained steady at 7.9%.

Adjusted EBITDA +10.2% YoY

EBITDA came in at 35.6 billion pesos, an 11% increase from the year-earlier quarter, with the EBITDA margin rising to 42.4% from 40.9% on the face of greater operating leverage and firm cost control. Adjusting for minor tower sales that took place this quarter, EBITDA increased 10.2% year-on-year.

We already have over 10 million customers on 5G. As for Telmex, its fiber-to-the-home network passes 17 million homes; 80% of its clients are already on FTTH.

INCOME STATEMENT - Mexico Millions of MxP

1Q24

1Q23

Var.%

Total Revenue(1)

83,998

78,450

7.1%

Total Service Revenue

65,450

61,156

7.0%

Total Equipment Revenue

16,485

15,742

4.7%

Wireless Revenue

60,809

57,601

5.6%

Service Revenue

44,392

41,963

5.8%

Equipment Revenue

16,416

15,638

5.0%

Fixed Line Revenue

21,126

19,296

9.5%

Other Revenue

2,064

1,552

32.9%

EBITDA

35,641

32,099

11.0%

% total revenue

42.4%

40.9%

Adjusted EBITDA(2)

35,385

32,099

10.2%

% total revenue

42.3%

40.9%

EBIT

27,305

23,704

15.2%

% total revenue

32.5%

30.2%

(1)Revenue reflects eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

(2)Adjusted for the sale of towers in Telmex in 2024.

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Content

Highlights

Relevant events

Subscribers

América

Móvil

Consolidated

Mexico

Brazil

Colombia

Other South

America

Central

America and

Caribbean

Austria

Other

European

Currency

Exchange

Rates

Appendix

Glossary

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Disclaimer

América Móvil SAB de CV published this content on 16 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 April 2024 23:55:01 UTC.