América Móvil (AMXL) Q4 2024 earnings summary

Executive summary

• Fourth quarter saw a surge in U.S. interest rates and regional currency depreciation, notably the Brazilian real and Chilean peso, impacting financial results.

• Added 2.1 million postpaid subscribers, mainly from Brazil, Colombia, and Mexico; 302k prepaid clients added in Mexico, but prepaid platform saw net disconnections due to a base cleanup in Brazil.

• Connected 320k new broadband accesses, with Mexico, Brazil, and Argentina leading growth.

• Mobile postpaid and fixed-broadband were primary drivers of access growth, up 5.3% and 4.7% year-over-year, respectively.

• Consolidation of Chilean operations (ClaroVTR) from November 1st contributed to revenue and EBITDA growth.

Financial highlights

• Q4 revenue rose 18% year-over-year in MXN terms to MXN 237 billion; service revenue up 19.1%, EBITDA up 16.4% to MXN 91 billion.

• Excluding Argentina, Q4 revenue increased 10% in MXN, service revenue up 10.7%, EBITDA up 8.6%.

• At constant exchange rates (excluding Argentina), Q4 revenue rose 5.7% year-over-year, service revenue up 6.6%, EBITDA up 5.1% before one-offs and 7.2% after adjustments.

• Operating profit reached MXN 46.4 billion, up 11% year-over-year; net income was MXN 9.5 billion, down 47.5% due to higher financing costs, mainly FX losses.

• Net debt at year-end was MXN 488 billion, with net debt/EBITDA at 1.44x.

Outlook and guidance

• CapEx guidance for the three-year period remains at $22 billion, with 2024 CapEx expected to be lower than budgeted; Chile's CapEx for 2024 estimated at $250–300 million.

• CapEx intensity expected to decline in coming years as major investments in 5G and spectrum are completed.

• Free cash flow expansion anticipated, supporting potential for increased shareholder distributions.

• No immediate plans to increase broadband prices in Mexico; focus remains on value-added bundles.