América Móvil (AMXL) Q4 2024 earnings summary

Executive summary

• Fourth quarter saw a surge in U.S. interest rates and significant currency depreciation in key markets, notably Brazil and Chile, impacting financial results.

• Added 2.1 million postpaid subscribers, mainly from Brazil, Colombia, and Mexico, and 302k prepaid clients in Mexico; 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 boosted reported revenue and EBITDA, with Argentina's hyperinflationary accounting also impacting results.

Financial highlights

• Q4 revenue rose 18% year-over-year in MXN to MXN 237 billion; service revenue up 19.1%, EBITDA up 16.4%, both boosted by Chilean consolidation and Argentina's inflation adjustments.

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

• At constant exchange rates (excluding Argentina), Q4 service revenue increased 6.6% year-over-year; adjusted EBITDA rose 7.2% after one-off 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 (excluding lease obligations), with net debt/EBITDA at 1.44x.

Outlook and guidance

• CapEx guidance for 2022–2024 remains at $22 billion, with Chile requiring an additional $250–300 million in 2024 to finalize network modernization.

• CapEx intensity expected to decline after 2024 as major investments in 5G and spectrum are completed.

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

• Free cash flow expected to expand, supporting potential for increased shareholder distributions in 2025.