The following is a summary of the América Móvil S.A.B. De C.V. (AMX) Q4 2023 Earnings Call Transcript:
Financial Performance:
América Móvil has invested around $25 billion in the past three years mainly on 4G, 4.5G, and 5G infrastructure upgrade. It plans to reduce this year's CapEx to $7 billion from last year's $8.6 billion.
The company experienced growth in Argentina, despite inflation, due to price increases.
Significant growth in the postpaid business segment was seen in Mexico during 2023.
The company had a net addition of 3.9 million wireless subscribers in the quarter, including 2.7 million postpaid clients and 1.3 million prepaid clients.
Service revenue increased by 3.7% with mobile service revenue expanding 4.2%. However, the inclusion of Argentina's financial figures led to a decrease in revenue by 3.7 billion Pesos and EBITDA reduction of 1.4 billion pesos.
Business Progress:
The company embarked on an expansive 5G rollout in Brazil and Mexico, covering over 200 and 120 cities respectively.
Positive revenue growth resulted from increased investment in capacity, data centers, and B2B growth.
Market share in Brazil increased due to the consolidation of all oil subscribers.
Upgrades in 5G service subscriptions led to an increase in Average Revenue Per User (ARPU).
The company foresees strong growth in the fixed broadband segment, post enhanced digitalization and network improvements.
Plans are underway to continue investment in Colombia and Argentina despite regulatory changes and potential economic adversities.
The company aims to finance more handsets, thus creating a new business avenue by aiding customers to acquire better or 5G handsets.
In Mexico, 81% of customers have been migrated to fiber connections, improving their experience through new installation and repair processes.
There are no current plans for M&A as the firm aims to maintain a net debt to EBITDA ratio between 1.3x and 1.5x. Surplus cash flow will be returned to shareholders.
A Global Peso Notes program has been launched to attract both global and international investors. The company plans to re-enter the international market with Peso Notes at least once more this year.
More details: America Movil SAB de CV IR
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