Earnings call transcript: America Movil Q3 2025 sees strong revenue growth

America Movil reported its financial results for the third quarter of 2025, showcasing robust revenue growth and a significant increase in net income. The company continues to expand its market presence, particularly in 5G coverage and network infrastructure. However, no specific earnings forecast or market reaction data was provided.

Key Takeaways

• Revenue increased by 4.2% in Mexican peso terms and 6.2% at constant exchange rates.
• Net income surged to 23 billion pesos, reflecting strong operational performance.
• Free cash flow rose by 47% year-on-year, reaching 53 billion pesos.
• The company added 3 million postpaid clients, with significant growth in Brazil.

Company Performance

America Movil demonstrated solid performance in Q3 2025, driven by strategic investments in network expansion and customer acquisition. The company reported total accesses of 408 million, with a notable increase in postpaid and broadband customers. Despite a competitive telecom market in regions like Mexico and Brazil, America Movil maintained its leadership position, particularly in 5G coverage.

Financial Highlights

• Revenue: 233 billion pesos, a 4.2% increase in Mexican peso terms.
• EBITDA: Grew by 4.9% in Mexican peso terms, reflecting operational efficiency.
• Net Income: 23 billion pesos, highlighting strong profitability.
• Free Cash Flow: 53 billion pesos, up 47% year-on-year.
• Net Debt: 454 billion pesos, with a net debt to EBITDA ratio of 1.55x.

Outlook & Guidance

Looking forward, America Movil expects continued EBITDA growth that outpaces revenue increases. The company plans to further invest in network infrastructure and explore potential market consolidation opportunities. A focus on enhancing prepaid and postpaid revenues remains a priority.

Executive Commentary

• "We are open to see any opportunity that we have in the region or out of the region that makes sense for us," said CEO Daniel Hajj, indicating a willingness to pursue strategic acquisitions.
• Hajj emphasized the importance of network quality and customer service: "People recognize that the phone is a very important thing for you. So you want to have the best network, the best customer care centers."

Risks and Challenges

• Economic Slowdown: Observed in the U.S., which could impact consumer spending and business investments.
• Competitive Markets: Intense competition in key regions like Mexico and Brazil may pressure margins.
• Currency Fluctuations: Depreciation of the U.S. dollar against regional currencies could affect financial results.

America Movil continues to strengthen its market position through strategic investments and customer-focused initiatives, setting the stage for sustained growth in the coming quarters.

Full transcript - America Movil LA (AMXL) Q3 2025:

Kevin, Conference Operator: Good morning. My name is Kevin, and I will be your conference operator today. At this time, I would like to welcome everyone to the America Movil Third Quarter twenty twenty five Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session.

I will now turn the call over to Ms. Daniella Liquona, Head of Investor Relations.

Daniella Liquona, Head of Investor Relations, America Movil: Good morning, everyone. Thank you for joining us today to discuss our third quarter financial and operating report. We have today on the line Mr. Daniel Hajj, our CEO Mr. Carlos Garcia Moreno, our CFO and also Mr.

Oscar Gunshauske, our COO.

Daniel Hajj, CEO, America Movil: Thank you, Daniela. Welcome to America Movil 2025 financial and operating report. Carlos is going to make us a summary of the results.

Carlos Garcia Moreno, CFO, America Movil: Thank you, Daniel, and good morning, everyone. Well, we saw in the third quarter with The U. S. Economy finally appearing to slow down as evidenced by a sharp decline in the number of new jobs created. The Fed went ahead with the much anticipated reduction in its policy rate, which was brought down by 25 basis points in September.

Since mid July, long term interest rates have been on a downward trend with ten year rates falling from nearly 4.5% to 4.1% at the end of the quarter. With lower interest rates and the expectation of further interest rate cuts by the Fed, the U. S. Dollar lost ground versus practically all currencies in our region of operations declining 2.7% versus the Mexican peso, 2.5% versus the Brazilian real and 4.1% versus the Colombian peso. The dollar remained practically flat versus the euro with the Argentine peso.

The only major exception is the period that depreciated versus the dollar. We added just over 3,000,000 postpaid clients in the quarter with Brazil contributing practically half, as you can see in the chart, point 5,000,000 followed by Colombia with 251,000, Peru with 198,000 and Mexico with 98,000. On the prepaid platform, we recorded net disconnections of 31,000, as you can see on the right hand side of the slide, resulting from losses in Brazil, Ecuador and Chile, which offset net subscriber additions obtained in several countries, including Argentina, 253,000 Colombia, 237,000 and Mexico with 136,000 in the prepaid. In the fixed line segment, we gained 536,000 broadband accesses, including 211,000 in Mexico. That’s roughly half of what we had overall in America Mobile, 86,000 in Brazil, 56,000 in Argentina and 51,000 in Colombia.

At the September, we had four zero eight million accesses, of which 140,000,000 were postpaid clients and $79,000,000 were fixed line RGUs. Year over year, our postpaid base increased 8.1%. So you can see that the access line that has been increasing the fastest and then fixed broadband accesses with 5.1% growth. Third quarter revenue totaled $233,000,000,000. They were up 4.2% in Mexican peso terms and 6.2% at constant exchange rates, with service revenue also expanding at the 6.2% pace.

The difference between the rate of growth in nominal terms versus that at constant exchange rates mainly reflects the appreciation of the Mexican peso versus the dollar, the Chilean peso and the Argentine peso, as the former remained practically flat versus the Brazilian real and the Colombian peso. On the mobile platform, debit revenue posted its best rate of growth in two years, 7.1%, helped along by the continued recovery of prepaid revenue. The latter expanded 3.9%, the fastest pace in two years, while postpaid revenue climbed at 9.1%, very similar pace to that of the preceding quarter, which was the quickest one in ten quarters. So very, very fast mobile revenue growth, both in prepaid and in postpaid. We’re seeing the fastest pace in a couple of years.

Mexico, Colombia and Chile were the main operations behind the acceleration of mobile service revenue growth. As for fixed line service revenue, it decelerated to 4.7% to 7.9% from 7.9% in the prior quarter. This deceleration has to do with significant slowdown registered in Corporate Networks revenue, which fell from 15% increase in the second quarter to a 3.5% increase in the third. Corporate Networks revenue tends to be more volatile as it is associated with the pipeline of Corporate Networks contracts and IT projects. We are an increasingly relevant player in this business segment, which is an ever more important revenue item for us.

Its share of fixed line service revenue has reached 21%. EBITDA totaled billion and was up 4.9% in Mexican peso terms and 6.8% at constant exchange rates from the year earlier quarter adjusting for Taucios a year ago. We returned to the trend seen over several quarters when EBITDA was expanding more rapidly than revenue and we expect that this will continue to be the case going forward. Our operating profit came in at MXN50 billion and was up 5.6% in nominal terms and 6.4% at constant exchange rates. With our comprehensive financing costs roughly cut in half compared to those of the year earlier quarter and this is basically on account of FX gains.

Our net income surged to 23,000,000,000 and it was equivalent to MXN 38 per share or MXN 40 per ADR. We ended up with MXN138 billion in operating cash flow in the nine months to September after deducting from our EBITDA after leases MXN34 billion in increased working capital and ARS 67,000,000,000 in interest payments and taxes. This capital expenditures totaled ARS 85,000,000,000 over the period. Our free cash flow amounted to ARS 53,000,000,000 compared to ARS 36,000,000,000 a year before. This means a 47% increase year on year.

This free cash flow was MXN2.3 billion in dividend income that we obtained through our valuation shares, allowed us to distribute 29,000,000,000 to our shareholders, including MXN 11,000,000,000 in share buybacks, increase our equity investments by MXN 1,000,000,000, payout MXN 10,000,000,000 out of our lower level obligations due this year and reduce our net debt by MXN 16,000,000,000. At the September, our net debt stood at MXN $454,000,000,000, that’s equivalent to 1.55 times net debt to EBITDA after lease. So with that, I would pass the floor back to Daniel, and we will open up the floor for Q and A. Thank you all. Thank you, Carlos.

Kevin, Conference Operator: Will now begin the question and answer session. Your first question comes from the line of Vitor Tomita from Goldman Sachs. Vitor, your line is now open. Please go ahead.

Vitor Tomita, Analyst, Goldman Sachs: Hello, good morning all and thanks for taking our questions. Two quick questions from our side. The first one is on mobile prepaid revenues in Mexico. Prepaid revenues have been recovering well. Is this driven by better macro or other factors?

And are you seeing this positive trend if it is macro for example continuing into the fourth quarter for prepaid in Mexico? And our second question would be on Chile, Uruguay and Paraguay, where in that segment even though it’s small, we saw some very strong margin expansion quarter on quarter and year on year there. Was this due to accounting factors following the end of the JV there or any one off effects anything that we should bear in mind? Thank you.

Daniel Hajj, CEO, America Movil: Well, Victor, talking about the mobile prepaid in Mexico, as we said the last quarter and the last two quarters, we said that it’s very related to the economy. And I think worst that we do in the revenues in the prepaid was at the end of last year or beginning of this year. And since that, we’re starting to recuperate the revenues. Think revenue should recuperate as we have been doing. I hope that economy will get better and better.

And hope for next year, we can have better mobile revenues. It’s very related to the economy. So it depends a lot on that. And as we see that things are going better, then mobile prepaid will do better. On the Chile, Uruguay and Paraguay, we have been working very hard in Chile.

We do all the synergies. Then we bought the Liberty Peace shares. And I think we’re happy. We’re gaining a lot of new subscribers. Revenue is growing and we are being very careful with the cost and expenses.

So that’s why the increase on EBITDA that we have. There’s nothing different on that. So that’s only the operations and the growth that we have been having, better churn, good subscribers better subscribers because we used to have the lowest segment of subscribers. We’re having better postpaid subscribers, better revenue, better ARPUs. So all of this is helping us to grow our EBITDA and that’s what we have been saying.

We need that we need some time to do the synergies and we’re having a very good moment right now in Chile.

Vitor Tomita, Analyst, Goldman Sachs: Very clear. Thank you very much.

Daniel Hajj, CEO, America Movil: Thank you.

Kevin, Conference Operator: Our next question comes from the line of Fani Kanemuri. Fani, your line is open. Go ahead.

Fani Kanemuri, Analyst: Thanks for taking my questions. My first one is regarding your potential acquisitions. There’s news on AMX trying to acquire a part of Telefonica in Chile along with Intel as well as AMX trying some acquisitions in some for some ISPs in Brazil. So how do you view these acquisitions? Do you see more potential for acquisitions in Brazil?

And how does it impact average? Thank you.

Daniel Hajj, CEO, America Movil: Okay. Well, in the M and A side, I want to talk about two things. First, on Chile, as we informed a few days ago, we are evaluating a potential joint bid with Intel to purchase Telefonica assets and operations in Chile. It is right now, it is in an earlier stage and the process will take some time. So there’s nothing else I can say.

We are reviewing the company, making checking numbers, doing the due diligence, but nothing else than that. So on Chile, that’s what we have. It’s an early stage and we don’t have anything else. On Brazil, on desktop, we’re evaluating operations all around our markets. And our subsidiary in Brazil is currently evaluating desktop, but there is no binding commitment exists until to date.

So there’s nothing else, only evaluating the company and our people is looking at that. There’s nothing else that we can say. And that’s what we are. We are, as we said, open to see any opportunity that we have in the region or out of the region that make sense for us. And it’s what we are doing and evaluating.

And I think all around the world markets are consolidating. And if that makes sense for us, we’re going to participate on that. So nothing else on that.

Fani Kanemuri, Analyst: Thanks Carlos.

Kevin, Conference Operator: Okay, thank you. Our next question comes from the line of Gustavo Farias. Your line is open.

Gustavo Farias, Analyst: Hi everyone. Thanks for taking my questions. Also two on my end. The first one, if you could provide us color on the competition environment in Mexico, especially coming from Bates new postpaid plans, but competition in general? And the second question focusing on Brazil, if we could have a better view on the main drivers of performance in prepaid, how you’re seeing the segment especially with the good performance despite the disconnections we observed in the quarter?

Thanks.

Daniel Hajj, CEO, America Movil: Well, in Mexico, the competition with bikes, with AT and T, with Telefonica, we have a lot of competition in Mexico. But on postpaid, I think people looks a lot on quality, on five gs coverage, the way your customer care centers will attend and solve all the problems. And I think we are by far much better than anybody else, any other company in Mexico. We have more than 120 cities with five gs. Nobody has that.

We have customer care centers all around Mexico with a lot of people, very professional and training to solve the problems to help you to activate your line. And in the other side, all of that helps you. And if you have good prices and competitive prices, then well you are in very good shape in Mexico. So that’s what we have. So we are very competitive.

We finance a lot of the devices. We have very good devices. We have very good distribution. We have a very professional in the corporate segment. We have very professional people going to the companies in small to medium business also.

So we have a very good company here that makes so the let’s say, the NPS people thinks very good about Telcel marketing and all of that that help us to be very strong. And that’s why I can tell you that from people who is visiting our stores, maybe 50% of the people that are actual customers decides to increase the plan and to extend the plan for some more time. So we are very of course, we have a lot of competition. AT and T is doing good. Byte is also doing good, but they don’t have all the things that we have and people recognize a lot of that.

There’s look, what we see is that the phone is a very important thing for you. So you need to have all day a day since you wake up and you get to sleep, all the day you have a lot of things to do. So what you want is to have the best network, the best customer care centers, the best coverage and all of that help us to be right now in this position. On Brazil, well, in prepaid in Brazil, well, prepaid in Brazil also we have been investing a lot in our network. We’re gaining and doing a lot more coverage.

We’re doing a lot of five gs and people in Brazil. There’s a lot of people from prepaid moving to postpaid, but there’s new people coming to stay with us in the prepaid side. So those are the things. We in Brazil, we have three years gaining and doing much better in the wireless segment. And I think it’s also because it’s not only one thing that we have.

It’s a lot of things. In prepaid in Brazil, our ARPU is growing 7.3%. That is a lot. So it means that people is consuming more, using more social networks or buying a package for more days. So all of that is helping us to do that.

Five gs is very important also.

Gustavo Farias, Analyst: Very clear. Thank you very much.

Carlos Garcia Moreno, CFO, America Movil: Thank

Kevin, Conference Operator: Our next question comes from the line of Luca Brendim from Bank of America. Your line is open.

Luca Brendim, Analyst, Bank of America: Hi, good afternoon everyone. Thank you for taking my questions. I have one here on my side. So if you guys could give us an update on the competitive market for Colombia and Chile. We saw many reports of potential acquisitions including your potential move in Chile.

Some of your peers are struggling financially in both regions. So, is this already reflecting positively in the numbers we’re seeing in those markets? Obviously, numbers for the region have been improving in both Chile and Colombia. How much of that is due to competition? And what do you think we can expect going forward?

Thank you.

Daniel Hajj, CEO, America Movil: Well, we know what is going to happen in Colombia. Colombia is T1 Telefonica. They already merged their networks. So they are going to have one network, better costs, more efficiencies for them. And what looks like is that TIGO is going to end up having all Telefonica ministers.

They are waiting for the authorization of the government. I don’t know what’s going to happen, but looks like they’re going to consolidate the market. In Colombia, we’re doing good. We are growing. We are number one in five gs in Colombia.

We’re doing our investments there. Quality is doing gs good also. And the service revenue is growing 7.87.4% in wireless and that said the growth has been very good in Colombia. The competition with one is not so hard because one is not in very good shape, what I’m understanding. There’s a new people buying the company, starting to do the changes.

But all overall in Colombia, we’re okay. Our EBITDA should increase a little bit more, but we are putting some extra reserves that we’re doing for some fiscal and legal things that we’re seeing. So we’re putting, but if not, maybe we can have around we can have the 5% increase instead of 3% increase in the quarter, we can go to 5% increase if we don’t do these reserves. So next quarter, I think, is going to be the same because the reserves are until the end of the year. But the operations are doing good.

We are who is the call it? Thomas, are being conservative doing the reserves. It doesn’t mean that we win or lose, but we want to be conservative always. So that’s what we’ve seen growing very good revenues and growing good EBITDA, investing a lot more in fiber. We’re doing our investments and putting fiber to the houses, changing more our cable and doing fiber.

Don’t know, Oscar, if you want to talk a little bit about the peaks in Colombia.

Carlos Garcia Moreno, CFO, America Movil: No. As you mentioned, we are building home passes with fiber, and we are doing the migration from cable to fiber. So we expect to have 60% of our network already in fiber. So we believe that we have the right network to be competitive in Colombia, not only on fiber residential. I think we are doing pretty well as well in corporate segment, selling cybersecurity, cloud, data center solutions.

So I think we have a good operation there in Colombia. And then in

Daniel Hajj, CEO, America Movil: Chile, well, Chile a lot of competition in Chile, but well, we hope that we can consolidate the market as Telefonica is they are But staying on what we have been doing the last two, three years is since we buy the company, we modernize all the network. Put five gs. We grow our coverage. We do more customer care centers. We moved the brand to Claro, has been extraordinary good.

So people is migrate a lot of migration from cable to fiber. So we have been doing the last three years since we bought the company, we have been doing a lot of investments. And well, that’s why our EBITDA is more than double in Chile. So but of course, competition is high in Chile. Prices are also still very low in Chile and everything, but we have been doing a lot of things to be competitive in the market, okay?

So we need to compete at the prices that we have. They are very low, but we need to compete at those prices. So that’s what we’re doing.

Luca Brendim, Analyst, Bank of America: Very clear. Thank you for the answers.

Daniel Hajj, CEO, America Movil: Thank you.

Kevin, Conference Operator: Thank you. One last call for questions. Seeing no further questions at this time, I will now turn the call back over to Mr. Daniel Hash for closing remarks.

Daniel Hajj, CEO, America Movil: Well, to thank everyone for being in the call, and we’ll see you next quarter. Thank you very much.

Kevin, Conference Operator: This concludes today’s conference call. You may now disconnect.

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