The following is a summary of the América Móvil, S.A.B. De C.V. (AMX) Q1 2024 Earnings Call Transcript:
Financial Performance:
América Móvil reported a Q1 revenue of MXN203 billion and service revenue expanded 1.1% to MXN171 billion.
Other revenue saw a significant decline of 71.7%, mostly due to fewer tower sales.
Despite favorable constant exchange rates increasing service revenue by 5%, EBITDA decreased by 2.6% to MXN80.6 billion.
Operating income was at MXN4.8 billion, marking a 7.6% decline, while the net profit amounted to MXN13.5 billion.
Business Progress:
América Móvil added 1.5 million wireless subscribers in Q1 with a majority being postpaid clients.
They connected 562,000 new broadband accesses in the fixed-line segment and saw a year-on-year increase in the postpaid base and fixed broadband accesses.
The company also advanced on corporate digital services offerings, including cybersecurity, network management, and cloud services.
Despite two quarters of declines, Colombia returned to positive mobile revenue growth and a new data center was launched in Peru.
The capital expenditure for the year is committed to being within $7.1 billion to $7.2 billion range.
Successful new packages incorporating streaming video and high-speed symmetrical offerings increased profitability.
Growth was noted in the corporate networks business due to investments in cloud data centers and training for increased services and sales.
Agreements with OnNet and significant investments in the Chilean JV are crucial for coverage expansion, with optimism expressed for the JV's future.
Growth was spotted in both mobile and fixed sectors in Mexico and Brazil, attributing to the quality of services and competitiveness.
An investor day at the New York Stock Exchange is in the works for May 7th, and aggressive market strategies, particularly in 5G, were highlighted for Chile, aiming for more significant market share and potential market consolidation.
More details: America Movil SAB de CV IR
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