AMXOF America Movil Sab De Cv (PK)

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 fourth quarter of 2024.

⁽¹⁾ Net Income / Average Shares Outstanding

⁽²⁾ 20 shares per ADR

⁽³⁾ EBITDA / Average Shares Outstanding

Note

The reported figures for Argentina corresponding to the fourth 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

Extraodinary shareholders meeting

In an extraordinary shareholders’ meeting in November the following was approved: a) an additional MXP$15,000 million, over the existing fund balance, to expand AMX’s buyback program for the period April 2024–April 2025; and b) that AMX cancel treasury shares acquired through its buyback program, amending its bylaws to reduce its capital stock accordingly.

Access Lines

At the end of December we surpassed 400 million access lines. We had 323 million wireless subscribers and 78 million fixed-line RGUs.

2.1M postpaid net adds

We added 852 thousand wireless subscribers in the fourth quarter—2.1 million postpaid net gains and 1.3 million prepaid losses—and ended December with 323 million wireless subscribers after the incorporation of 5.9 million subscribers from Chile. Our postpaid base was up 5.3%; Brazil led the way in terms of postpaid net adds with 655 thousand subscribers followed by Colombia with 178 thousand and Mexico with 141 thousand. For the prepaid segment Mexico contributed 302 thousand new subscribers, the Central America block 196 thousand and Colombia 178 thousand whereas in Brazil we effected a clean-up of 1.0 million subscribers.

320k new broadband clients

On the fixed-line segment we connected 320 thousand new broadband clients but registered disconnections in PayTV and fixed-line voice of 13 thousand and 74 thousand, respectively.

⁽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 M2M subscribers.

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

⁽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.

América Móvil Consolidated Results

The fourth quarter ended with a renewed surge in U.S. interest rates, with ten-year Treasury yields jumping approximately 80 basis points in the quarter to finish the year just shy of 4.60%, roughly the highest level since the end of April. This significant increase in long term interest rates took place not long after the FED reduced its policy rates by 50 basis points in September, fourteen months after completing a period of policy rate hikes. A stronger than expected labor market and economic activity led to major revisions in expectations regarding future reductions in policy rates by the FED and hence the path of medium and long-term yields, all of which resulted in the spike in yields mentioned above. Throughout the period substantially all the currencies in our region of operations depreciated vs. the U.S. dollar, with the Brazilian real experiencing the worst decline of all, 13.7%, followed by the Chilean peso, 11.0%, and the euro 7.0%.

Our fourth quarter revenue was up 18.0% in Mexican peso terms to 236.9 billion pesos, with service revenue climbing 19.1% and EBITDA 16.4%, to 91.1 billion pesos. Those rates of increase reflect the consolidation of the Chilean operation from November 1^st but were largely boosted by the accounting methodology associated with the Argentinean operations. Since these operations take place in a country that is considered hyperinflationary, the annual revenue is adjusted for inflation and expressed in December 2024 prices, then converted to Mexican pesos at the end-of-year exchange rate, per rule IFRS 29. The fourth quarter figures are obtained subtracting from the annual figures those obtained through September. Since Argentina’s rate of inflation was 118% through December, whereas the Argentinean peso only depreciated 4% vs. the Mexican peso—it had depreciated sharply in December 2023—the accounting adjustments mentioned are considerable when expressed in Mexican pesos. Excluding Argentina, and therefore those variations having to do with the accounting methodology, America Movil’s fourth quarter revenue increased 10.0% in Mexican peso terms, with 10.7% service revenue growth and 8.6% EBITDA growth. On the consolidation of the Chilean operation its contribution to our consolidated revenue over the last two months of the year amounted to 3.8 billion Mexican pesos.

At constant exchange rates—and as has been customary in our quarterly reports, excluding Argentina from this calculation—our fourth quarter revenue rose 5.7% year-on-year on the back of a 6.6% service revenue increase, the best performance in over a year, with EBITDA expanding 5.1% before one-off adjustments and 7.2% after those adjustments were made. These increases include the impact of the consolidation of the Chilean operations that was felt more strongly in the fixed-line platform as can be seen below.

Mobile service revenue expanded 6.2% year-on-year in the fourth quarter; without Chile it would have been up 5.1%, in line with the pace of growth seen the prior three quarters. Postpaid revenue rose 8.5% in the quarter compared to 6.3% the prior quarter, whereas prepaid revenue increased 2.5%, down from 3.6% in the third quarter. Mobile service revenue accelerated in Brazil, Colombia, Ecuador and Peru, offsetting the deceleration observed in Mexico and Central America.

Fixed-line service revenue climbed 7.4% including the Chilean operation and would have posted a 4.0% increase without it, in line with the increase observed in the second quarter but lower than the growth rate of the third quarter. Broadband revenue growth accelerated to a 9.8% pace from 7.4% the prior quarter and corporate networks revenue to 12.3% from 10.1%, with PayTV revenue growth hitting 5.2% compared to a 0.8% decline observed in the third quarter. Fixed-service revenue growth decelerated in Mexico, Brazil and Colombia from the pace seen the prior quarter but increased at a faster pace in Austria and Eastern Europe, as well as in Central America.

We turned an operating profit of 46.4 billion pesos in the fourth quarter, 11.0% higher than that of the year-earlier quarter after depreciation and amortization charges that increased 22.6%, reflecting partly the consolidation of the Chilean operation, the inflationary adjustment of the Argentinean assets and the amortization of new licenses acquired in 2023 and 2024 in Austria and Colombia.

Our net income came in at 9.5 billion pesos in the fourth quarter and was 47.5% lower year-on-year on account of higher comprehensive financing costs. These totaled 29.8 billion pesos, nearly half of which was associated with foreign exchange losses. Our net income was equivalent to 15 pesos cents per share and 15 dollar cents per ADR.

Our net debt ended the year at 485 billion pesos excluding capitalized lease obligations. In cash flow terms it increased 19.3 billion pesos and helped us finance 130.8 billion pesos in capital expenditures, 50.9 billion pesos in shareholder distributions and 25.4 billion pesos in the amortization of labor obligations. At the end of the year our net debt stood at 1.44 times LTM EBITDA. The latter figure already reflects the impact of the consolidation of Claro/VTR in Chile in América Móvil from October 31^st.

⁽¹⁾Adjusted for extraordinary items, particularly the sale of towers by Claro Peru, Claro Dominicana and Telmex.

n.m. Not meaningful.