América Móvil, S.A.B. de C.V.

Second quarter revenue increased 3.1% year over year to MXN 241 billion. Service revenue increased 3.4% and EBITDA increased 6.8%; at constant exchange rates, service revenue rose 5.1% and EBITDA rose 5.3%, or 6.7% excluding a one-off charge in Mexico. Operating profit was MXN 51.8 billion, up 9.5%, and net income was MXN 24 billion, up 9.3%, equivalent to MXN 0.40 per share or MXN 0.47 per ADR. The company added 3.5 million postpaid subscribers, lost 3.9 million prepaid subscribers, connected 531 thousand new broadband accesses, and added 10 thousand pay TV units. For the first half, capex was MXN 48 billion, share buybacks were MXN 44.6 billion, labor obligations were MXN 8.4 billion, and net debt fell by MXN 30 billion in cash flow terms. Excluding capital lease obligations, net debt was ARS 402 billion at end-June, equal to 1.31x last-12-month EBITDA after leases. Management reiterated full-year capex around USD 7 billion, and said leverage should stay within its stated 1.2x-1.5x net debt/EBITDA range.

Daniel Hajj said the company is seeing mixed competitive conditions by market, but emphasized that the core strategy remains network quality, customer care, convergence and disciplined pricing. In Brazil, he acknowledged a more promotional environment in prepaid and postpaid, but said Claro is still gaining share in portability and expects a recovery later in the year. He also highlighted stronger momentum in Mexico, Colombia and Peru, and said the company is open to acquisitions that add fiber customers and create synergies, like Desktop and Wow.

Carlos Garcia Moreno emphasized that the quarter benefited from strong operating growth and a favorable currency backdrop, though the weak peso makes dollar-denominated capex more expensive. He detailed first-half cash uses of MXN 48 billion for capex, MXN 44.6 billion for share repurchases and MXN 8.4 billion for labor obligations, all covered by cash flow, while net debt declined by MXN 30 billion in cash flow terms. He also explained that the MXN 10.4 billion comprehensive financing cost reflected lower FX gains offsetting lower net interest costs, and that the MXN 1.3 billion Telmex fine related to an old 2017 case that became final in June. On leverage, he said the company aims to stay within 1.2x to 1.5x net debt to EBITDA and has committed future uses of cash, including an expected Desktop acquisition closing this year.

Analysts focused on Brazil competition, Mexico prepaid trends, Mexico registration rules, the Telmex fine, Nucell accounting, capital allocation, and M&A. Management said Brazil has become more promotional, especially in prepaid and postpaid, but fixed revenue is improving and the company is prepared to respond if rivals stay aggressive. In Mexico, management said prepaid customers are recharging more and buying larger cards, helped by better 5G coverage and rising data use, while the new prepaid registration process is creating some churn but is still early. They also clarified that Nucell subscribers are included in Claro's customer base, with revenue split between Claro and Nucell, and said any future cash will be balanced among acquisitions, shareholder returns and debt reduction rather than an immediate step-up in buybacks.