América Móvil, S.A.B. de C.V.

Q2 revenue rose 3.1% year over year to MXN 241 billion. Service revenue increased 3.4% and EBITDA rose 6.8%; at constant exchange rates, service revenue was up 5.1% and EBITDA up 5.3%, or 6.7% absent a one-off charge in Mexico. Operating profit totaled MXN 51.8 billion, up 9.5%, and net income was MXN 24 billion, up 9.3% and 90.2% versus the year-earlier quarter, equal to $0.40 per share and $0.47 per ADR. The company added 3.5 million postpaid subscribers, 531,000 broadband accesses, and reported 3.9 million prepaid net losses. For the first half, capex was MXN 48 billion, buybacks MXN 44.6 billion, labor obligations MXN 8.4 billion, and net debt in cash flow terms was reduced by MXN 30 billion. Management reiterated a capex target of about $7 billion, and said leverage is managed within a 1.2x to 1.5x net debt-to-EBITDA range.

Daniel Hajj said the business is benefiting from network quality, 5G leadership, customer care investments, and convergence, even as competition got more promotional in Brazil and elsewhere. He repeatedly emphasized that America Movil is prepared to compete with promotions when needed, but also expects better revenue trends later in the year, particularly in Q3 and Q4. He framed M&A as a strategic priority when it adds fiber customers and synergies, citing Desktop and Wow as examples, and said the company wants to stay financially healthy for acquisitions, shareholder returns, and debt reduction.

Carlos Garcia Moreno highlighted that FX moved favorably for reported revenue but made dollar-based capex more expensive, while the company still expects to stay near its roughly $7 billion capex target. He explained that 'other financial expenses' reflected part of the Telmex-related fine accruals and hedging effects, and said pensions were not the driver of that line item. He also noted first-half cash flow covered MXN 48 billion of capex, MXN 44.6 billion of buybacks, and MXN 8.4 billion of labor obligations, allowing MXN 30 billion of net debt reduction in cash-flow terms; leverage ended at 1.31x last-12-month EBITDA after leases.

Analysts focused on Brazil competition, Mexico prepaid strength, the Telmex fine, Nucell accounting, capital allocation, and Argentina/Colombia outlook. Management said Brazil has become more promotional in prepaid and postpaid, but fixed-line revenue there is improving; in Mexico, prepaid consumers are recharging more, using higher-value cards, and benefiting from 5G and coverage improvements. On the fine, management said the MXN 1.3 billion penalty dated back to an alleged 2017 asymmetric-measures violation, became final in June, and they viewed it as disproportionate. They also said Nucell subscribers are counted in Claro’s base, while revenue is split, and reiterated that future cash will be balanced among acquisitions, shareholder returns, and debt reduction rather than a sharp near-term step-up in buybacks.