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

Mexico City - América Móvil, S.A.B. de C.V. (“América Móvil”) [BMV: AMX] [NYSE: AMX, AMOV], announced today its financial and operating results for the second quarter of 2024.

⁽¹⁾ Net Income / Average Shares Outstanding

⁽²⁾ 20 shares per ADR

⁽³⁾ EBITDA / Average Shares Outstanding

Note

The reported figures for Argentina corresponding to the second quarter of 2024 are presented in accordance with IAS29 reflecting the effects of inflationary accounting as the Argentinean economy is deemed to be hyperinflationary. All comparisons at constant exchange rates for América Móvil’s consolidated figures will exclude Argentina to ensure consistency.

Relevant Events

América Móvil to consolidate ClaroVTR upon regulatory approval

On June 24th we announced that América Móvil had been informed by Liberty Latin America that it would not exercise its catch-up right by which it would be able to maintain a 50% stake in the ClaroVTR joint venture. Once América Móvil converts into equity the outstanding notes, its stake in the Chilean joint venture will increase from 50% to approximately 91%. The conversion will occur once the approval from the regulator is obtained, at which point America Móvil will consolidate the Chilean operation.

The funds contributed to the Chilean JV enabled for a swift integration of Claro and VTR and to execute a business plan for the period 2023-2026. As of today, we can report that:

- We achieved a full integration of both companies and have worked on the optimization of resources. As a result, we shall generate important operating synergies.

- We are in the process of modernizing our mobile and fixed-line infrastructure:

1.) On the mobile side, we have expanded our coverage footprint by adding 1,200 new sites and have upgraded our network to be able to provide 5G services. We have just been awarded the use of 50MHz of 5G spectrum and will begin with the roll-out shortly.

2.) On the fixed-line platform we are in the process of migrating customers to FTTH. This will be done through the modernization and expansion of our own fiber network and through a long-dated commercial agreement to lease capacity from On*Net.

- We have been growing our customer base in both fixed and mobile for the last twelve months; as of June 31st, ClaroVTR had 2.7 million fixed-line RGUs, including 1.4 million broadband accesses, and 5.1 million wireless subscribers.

The consolidation of ClaroVTR into América Móvil’s balance sheet will add less than 0.1x net debt/EBITDA to the company’s leverage.

Access Lines

1.8M postpaid net adds

We added 2.4 million subscribers in the second quarter, of which 1.8 million were postpaid, with Brazil contributing 907 thousand, Colombia 183 thousand and Mexico 99 thousand. Our prepaid platform booked 599 thousand net additions in the period, with Colombia gaining 261 thousand subscribers, followed by Argentina with 191 thousand.

376k new broadband accesses

In the fixed-line segment we obtained 376 thousand broadband accesses, including 148 thousand in Mexico and approximately 63 thousand each in Argentina and Brazil. Voice lines and PayTV units registered losses in the period, and were down 63 thousand and 56 thousand, respectively.

Postpaid base up 6.6% YoY

Our subscriber base comprised 314 million wireless subscribers at the end of June, 125 million of which were postpaid clients. In addition, we had 74 million fixed-line RGUs, including 33 million broadband accesses, 13 million PayTV clients, and 29 million landlines. Our postpaid base increased 6.6% year-on-year, with prepaid expanding 1.6% and fixed broadband accesses 4.9%.

(1) Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated.

(2) Includes A1 Digital M2M subscribers.

⁽¹⁾ Fixed Line, Broadband and Television (Cable & DTH).

⁽¹⁾ Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated.

América Móvil Consolidated Results

The second quarter of the year got started with an important surge in long-dated U.S. Treasury yields with those in the 10-year tenor advancing 50 basis points in April on the back of unexpectedly strong employment figures. They remained volatile throughout the quarter, closing June at 4.40%, practically the mid-point of the range in which they traded in the period. The Mexican peso, which had withstood well the U.S. interest rate volatility, weakened sharply following the Mexican presidential elections on June 2nd. After months of appreciating vis-à-vis, not only the U.S. dollar, but also practically all the currencies in our region of operation, the Mexican peso was to depreciate against all.

Our second quarter revenue, 206 billion pesos, was up 1.5% from a year before, with service revenue expanding 3.5% and equipment revenue falling 9.8%. At constant exchange rates service revenue increased 4.7% year-on-year—practically the same pace it had maintained the prior quarter, but with slightly faster mobile revenue growth and somewhat slower fixed-line revenue growth—helping bring about a 6.9% increase in EBITDA. The greater operating leverage stemming from positive revenue growth on both platforms has been the main driver of EBITDA growth.

Mobile service revenue accelerated to a 5.1% pace from 4.9% the precedent quarter on the back of stronger postpaid revenue growth, as prepaid revenue stayed on pace. On the fixed-line platform service revenue growth decelerated to a 4.1% pace from 5.1% the prior quarter basically on account of corporate networks revenue, which had seen a big jump then. However, broadband revenue growth continued to improve, reaching 7.9%, up from 6.4% in the first quarter and corporate networks revenue increased 7.2%. It is important to note that fixed-broadband revenue has come to be nearly 25% higher than the combined PayTV and fixed-voice revenue.

EBITDA totaled 83.1 billion pesos in the quarter which represented a 5.6% increase in Mexican peso terms from the year-earlier-quarter and 6.9% at constant exchange rates, as seen above. The consolidated EBITDA margin reached 40.4% in the quarter, a 1.5 percentage points improvement from a year before.

Our operating profit came in at 45.5 billion pesos, having risen 12.9% from the year-earlier quarter, but with our comprehensive financing costs reaching 40.2 billion pesos on account of foreign exchange losses resulting mainly from the depreciation of the Mexican peso we ended up posting a net loss of 1.1 billion pesos in the quarter.

Our net debt excluding leases ended the quarter at 404.2 billion pesos after an 18.8 billion pesos increase relative to December brought about for the most part by currency effects following the depreciation of the Mexican peso. In cash flow terms our net debt increased by 14.3 billion pesos. This funding helped us cover share-buybacks in the amount of 12.5 billion pesos and labor obligations for a similar amount, with capital expenditures totaling 56.2 billion pesos in the six months to June. We had a stronger free cash flow overall compared to that of the first half of 2023 partly because of lower capital expenditures.

⁽¹⁾ Adjusted for extraordinary items, particularly the sale of towers in 2023 by Claro Peru and Claro Dominicana; and a small portion in 2024 by Telmex.

n.m. Not meaningful.