AMX — América Móvil, S.A.B. de C.V.

Summary of America Movil's Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenue: Increased by 3.1% year-over-year to MXN 241 billion.
• Service Revenue: Up 3.4%, with mobile service revenue growing 6.5%.
• EBITDA: Rose 6.8% year-over-year.
• Net Income: Reached MXN 24 billion, a 9.3% increase, translating to $0.40 per share.
• Subscriber Growth: Added 3.5 million postpaid subscribers; prepaid segment saw a net loss of 3.9 million.
• Capital Expenditure: Totaled MXN 48 billion for the first half of the year.
• Net Debt: Reduced by MXN 30 billion, with a net debt to EBITDA ratio of 1.31x.

2. Strategic Updates and Business Highlights

• Subscriber Growth: Brazil led postpaid additions with 1.5 million new subscribers.
• Broadband Expansion: Connected 531,000 new broadband accesses, with Mexico contributing the most.
• Pay TV: Added 10,000 units, primarily from Argentina.
• Market Positioning: Focus on mobile postpaid and fixed broadband as primary growth drivers.
• Acquisitions: Announced acquisition of Wow in Peru, enhancing fiber network and customer base.

3. Forward Guidance and Outlook

• Market Recovery: Anticipated recovery in mobile revenue growth in the latter half of the year, particularly in Q4.
• Competitive Landscape: Prepared to respond to aggressive promotions from competitors in Brazil and other markets.
• Long-term Strategy: Emphasis on maintaining financial health, pursuing acquisitions, and returning capital to shareholders.

4. Challenges and Points of Concern

• Competitive Pressures: Increased promotional activity in Brazil, particularly in prepaid and postpaid segments, could impact margins.
• Economic Slowdown: Noted a potential slowdown in the economy affecting revenue growth.
• Regulatory Issues: Facing a MXN 1.3 billion fine related to past regulatory disputes, which management deems disproportionate.
• Subscriber Registration: Ongoing registration process for prepaid customers may affect subscriber dynamics and churn rates.

5. Notable Q&A Insights

• Brazil Competition: Management acknowledged a more competitive environment and the need to adapt pricing strategies based on competitor actions.
• Prepaid Performance: Positive net adds in Mexico's prepaid segment attributed to increased consumer spending and improved service offerings.
• Nucell Integration: Clarified that Nucell subscribers are counted within Claro's customer base, with revenue sharing impacting ARPU.
• Future Acquisitions: Open to further acquisitions that enhance fiber capabilities and customer synergies, focusing on consolidation in the market.

This summary captures the essential financial metrics, strategic initiatives, and challenges faced by America Movil in Q2 2026, providing a clear overview for stakeholders.