América Móvil (AMXL) Q2 2024 earnings summary

Executive summary

• Added 2.4 million subscribers in Q2 2024, with 1.8 million postpaid; Brazil, Colombia, and Mexico were key contributors, with Brazil leading at 907k postpaid net adds.

• Revenue reached MXN 206 billion, up 1.5% year-over-year; service revenue grew 3.5%, equipment revenue fell 9.8%.

• EBITDA increased 5.6% in MXN terms and 6.9% at constant exchange rates, with margin improving to 40.4%.

• Net loss of MXN 1.1 billion due to MXN 40 billion in FX losses from peso depreciation.

• Net debt (ex-leases) at MXN 404.2 billion, net debt/EBITDAAL at 1.38x.

Financial highlights

• Service revenue rose 4.7% year-over-year at constant FX; mobile service revenue accelerated to 5.1%, fixed line slowed to 4.1%.

• Broadband revenue growth reached 7.9%, up from 6.4% in Q1; corporate networks revenue increased 7.2%.

• Free cash flow for Jan–Jun 2024 was MXN 64.4 billion, up from MXN 56.2 billion in the prior year period, aided by lower CapEx.

• Share buybacks totaled MXN 12.5 billion in H1 2024, four times higher than H1 2023.

• Leverage ratio improved to 1.38x EBITDA from 1.5x in the prior quarter.

Outlook and guidance

• ARPU growth trends expected to continue in 2024 and 2025, driven by 5G adoption and higher data usage.

• No major M&A expected in 2024; open to opportunities, especially in Chile depending on market developments.

• Share buybacks and distributions to match free cash flow, with higher activity in H2 due to seasonality.

• Consolidation of ClaroVTR in Chile expected upon regulatory approval, increasing stake to ~91%.

• ClaroVTR integration to generate operating synergies and add less than 0.1x to net debt/EBITDA.