AMX — América Móvil, S.A.B. de C.V.

América Móvil Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: Increased by 2.1% year-over-year to MXN 237 billion, with service revenue up 0.6% and equipment revenue up 7.4%. At constant exchange rates, revenue rose 6.1%.
• EBITDA: Grew by 3.8% to reach a margin of 40%, with adjusted EBITDA (excluding extraordinary legal proceeds) up 7.0%.
• Net Income: Rose 25% to MXN 23.4 billion (MXN 0.39 per share, $0.44 per ADR).
• Debt: Financial debt stood at MXN 527 billion, with net debt at MXN 437 billion (1.41x EBITDA after leases).
• CapEx: MXN 21.6 billion spent in Q1, with a full-year CapEx guidance of around $7 billion.

2. Strategic Updates and Business Highlights

• Subscriber Growth: Postpaid subscribers increased by 8.8%, and broadband accesses by 6%. Mobile service revenue growth was resilient, particularly in Mexico and Colombia.
• Market Position: Strong performance in fixed-line services, particularly in Eastern Europe and Central America, with a focus on residential demand.
• M&A Activity: The company is exploring acquisition opportunities in Latin America and Eastern Europe, aiming for a balance between deleveraging and capital returns.
• Digital Transformation: Continued investment in digitalization and cloud services to enhance operational efficiency and customer offerings.

3. Forward Guidance and Outlook

• Growth Expectations: Management expressed optimism about continued growth in mobile and broadband services, particularly in Mexico and Colombia, driven by economic recovery and improved customer offerings.
• CapEx Plans: Expected to maintain around $7 billion in CapEx for 2026, with a focus on enhancing network capabilities and expanding fiber infrastructure.

4. Bad News, Challenges, or Points of Concern

• Operational Issues in Argentina: Challenges in deploying fixed-line services in Buenos Aires due to regulatory hurdles and infrastructure limitations.
• Working Capital Increase: Noted increase attributed to higher inventory levels and financing of handsets, which could impact cash flow.
• Competitive Pressures: Concerns about increased competition in broadband, particularly with Televisa upgrading to fiber, which may affect future net additions.

5. Notable Q&A Insights

• Capital Allocation: Management emphasized the need for a balanced approach between deleveraging and capital returns, with a target net debt to EBITDA ratio of around 1.3.
• Fiber Opportunities: The company remains open to exploring fiber investments and partnerships, particularly in light of competitive dynamics in the region.
• Market Dynamics: The impact of recent M&A activity in Mexico was discussed, with uncertainty regarding how new entrants will affect competitive dynamics.
• Subscriber Registration Initiative: The new regulatory requirement for line registration may lead to a temporary churn as inactive lines are cleaned from the subscriber base.

Overall, América Móvil reported solid financial results and maintained a positive outlook, despite facing some operational challenges and competitive pressures in specific markets.