América Móvil (AMXL) Q4 2023 earnings summary

Executive summary

• Added 3.9M wireless subscribers in Q4, including 2.7M postpaid; full-year wireless net adds reached 10.3M. Fixed broadband accesses grew 4.1% YoY to 32M.

• Q4 service revenue grew 3.7% and adjusted EBITDA rose 4.6% at constant exchange rates, excluding Argentina; mobile and fixed-line service revenue grew for a fifth consecutive quarter.

Financial highlights

• Excluding Argentina, Q4 revenue was MXN 204.4B, down 2.5% YoY; including Argentina, revenue was MXN 200.7B.

• Reported EBITDA was MXN 79.7B excluding Argentina and MXN 78.3B including Argentina; adjusted EBITDA was MxP 78bn and MxP 77bn, respectively.

• Net income was MXN 26.4B excluding Argentina and MXN 18.1B including Argentina; full-year net income excluding Argentina rose 12.8% to MXN 82.8B.

• Mobile service revenue grew 4.2% and fixed-line service revenue 3.0% YoY at constant exchange rates, excluding Argentina.

• Operating profit was MXN 42.3B excluding Argentina.

Segment performance

• Q4 postpaid net adds totaled 2.677M, led by Brazil at 1.790M and Austria at 329k; prepaid net adds totaled 1.252M, led by Colombia at 456k.

• Broadband net adds reached 386k, the strongest quarterly result in three years; Mexico contributed 165k. Fixed broadband accesses grew 4.1% YoY to 32M.

• Fixed-line corporate networks revenue grew 8.1% and broadband revenue 6.6%; Pay TV declined 1.1%, at constant exchange rates and excluding Argentina.

• Mexico service revenue grew 4.9%; broadband revenue rose 7.2%. EBITDA grew 4.9% adjusted for the prior-year tower-sale comparison.

• Brazil service revenue rose 3.8%, led by mobile service growth of 7.1%; adjusted EBITDA increased 7.3%, with a 41.9% margin, up 80 bps YoY.