SEC Form 6-K filed by America Movil S.A.B. de C.V.

América Móvil Consolidated Results

 

The U.S. Government shutdown, in effect through the middle of the fourth quarter, ended up raising uncertainty about the state of economic activity in the U.S. Not only did it have a direct impact on employment but, on account of the shutdown, several economic indicators generated by government agencies failed to be released at all. These indicators included those related to inflation and employment—among the latter, the creation of non-farm jobs and the level of unemployment. The lack of visibility confounded investors and the Fed, as it was not clear whether-or-not interest rates needed to be cut further. On December 10th, less than a month after the shutdown ended and with still incomplete economic data, the Fed reduced the policy rate by 25 basis points in the absence of strong inflation pressures and the appearance of a softening economy. The dollar depreciated vs. practically all the currencies in our region of operations in the quarter except for the Brazilian real and the Argentinean peso, declining 2.3% vs. the Mexican peso; 3.7% vs. the Colombian peso and 5.7% vs. de Chilean peso and remaining practically flat vs. the Euro.

 

Fourth quarter revenue rose 3.4% in Mexican peso terms from a year ago, to 245 billion Mexican pesos. They were up 6.2% at constant exchange rates, with service revenue expanding 5.3%. The difference between the rate of growth in nominal terms vs. that at constant exchange rates mainly reflects the 9.6% appreciation relative to the year-earlier quarter of the Mexican peso vs. the U.S. dollar.

 

The apparent decelaration of service revenue growth—which extends to most revenue categories—stems from the incorporation of our Chilean operation from November 2024.

 

Mobile service revenue growth remained strong at 6.2% supported by postpaid revenue that was up 7.6%. Prepaid revenue growth maintained the pace seen the prior quarter, the fastest in at least five quarters, with that coming from Mexico accelerating from 2.8% to 3.8%.

 

Fixed-line service revenue was up 3.6% year-over-year. Mexico improved, moving from a 1.4% contraction in the third quarter to 2.2% growth, and Eastern Europe also accelerated. Corporate networks revenue strengthened and reached 6.9%. Mexico, Brazil and Austria drove this improvement, with Mexico reversing the decline of the previous quarter to grow 4.7%. Fixed-broadband revenue increased 6.4%. Mexico performed well, with broadband revenue rising from 2.0% to 3.9%.

EBITDA was up 4.2% in Mexican peso terms to 94.9 billion pesos and 6.9% at constant exchange rates from the year-earlier quarter, with the EBITDA margin improving slightly to 38.8%.

Our operating profit totaled 49.1 billion Mexican pesos, up 5.9% in nominal terms and 8.3% at constant exchange rates, while our comprehensive financing costs were roughly half those of the year-earlier quarter. This resulted in a net profit of 19.1 billion Mexican pesos in the quarter, four times larger than that of a year before. It was equivalent to 32 Mexican pesos cents per share or 35 dollars cents per ADR.

 

Our operating cash flow for the year 2025 came in at 212.7 billion pesos after deducting from our EBITDAaL (EBITDA after leases) a 16.4 billion pesos increase in working capital and 81.8 billion pesos in interest payments and taxes. After capital expenditures in the amount of 130.8 billion pesos we were left with a free cash flow of 81.9 billion pesos. The latter figure represents a 39.4% year-on-year increase in our free cash flow.

 

Shareholder distributions reached 45.1 billion pesos—including 11.9 billion pesos in share buybacks— even as we reduced our net debt in cash flow terms by 20.0 billion pesos. At the end of the year our net debt to LTM EBITDAaL ratio stood at 1.52 times.