AMX Earning Date, Transcript Summary & Report

Postpaid Subscriber Growth: In the first quarter, we added 2.4 million postpaid subscribers, with Brazil leading the way with 987,000 clients, followed by Colombia with 163,000 and Mexico with 133,000.

Q1 Revenue and EBITDA Growth: Our first quarter revenue was up 14.1% year-on-year in Mexican peso terms to MXN232 billion, with service revenue expanding 15.8% and adjusted EBITDA, 13.3%.

Service Revenue and EBITDA Growth: At constant exchange rates, service revenue increased 6.1% and adjusted EBITDA 4.0%, adjusting for sale of towers by Telmex a year before.

EBITDA Margin Improvement: Most of our operations saw the EBITDA margins increased sequentially.

Wireless Revenue Growth Decline: Our wireless service revenue climbed 5.7%, decelerating some part from the prior quarter as prepaid revenue continued to slow down mostly on account of weak economic activity in Mexico.

Broadband and PayTV Revenue Growth: Broadband revenue growth maintained its pace at 9.8%, while that of PayTV in at 8.7%, the fastest pace seen in many quarters.

Regional Service Revenue Growth: The Central America and Eastern European blocks were top performers in the period, exhibiting faster service revenue growth in both the fixed and the wireless platforms.

Operating Profit Increase: Our first quarter operating profit totaled MXN44.8 billion, a 10% year-on-year increase after depreciation and amortization charges that were up 16%.

Net Income Increase: Our net income was up 38% to MXN18.7 billion and was equivalent to MXN0.31 per share, $30 per ADA.

Economic Activity Decline: The Mexican economy has been slowing down since April of last year, with the index of economic activity reaching 0% in February of this year.

Decline in Private Consumption: Private consumption in Mexico has plummeted and is now declining 1% year-on-year, attributed to uncertainty around the Mexican and U.S. elections and increasing real interest rates.

Prepaid Segment Losses: In the prepaid segment, the company posted 1 million net prepaid losses, with significant disconnections in Mexico and Brazil, totaling 831,000 and 545,000 respectively.

Fixed Line Segment Decline: The fixed line segment saw a decline in both lines and PayTV units, falling by 130,000 and 32,000 respectively.

Wireless Revenue Deceleration: Wireless service revenue growth decelerated to 5.7%, primarily due to slowing prepaid revenue linked to weak economic activity in Mexico.

Corporate Networks Revenue Slowdown: Corporate networks revenue growth slowed down, following a strong performance in the previous year.

EBITDA Growth Concerns: Despite overall revenue growth, the adjusted EBITDA growth at constant exchange rates was only 4.0%, indicating potential underlying issues in profitability.