This article first appeared on GuruFocus .
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Revenue:MXN241 billion, up 3.1% year-on-year in Mexican peso terms.
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Service Revenue:Increased 3.4% year-on-year.
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EBITDA:Increased 5.3% at constant exchange rates.
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Operating Profit:MXN51.8 billion, up 9.5% in Mexican peso terms.
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Net Income:MXN24 billion, a 9.2% increase from the year earlier quarter.
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Capital Expenditures:MXN48 billion for the first half of the year.
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Net Debt:MXN402 billion at the end of June, representing 1.31 times last 12 months EBITDA after leases.
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Postpaid Subscribers:Added 3.5 million in the second quarter.
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Fixed Broadband Accesses:Connected 531,000 new accesses.
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Pay TV Units:Added 110,000 units.
Release Date: July 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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America Movil SAB de CV ( NYSE:AMX ) added 3.5 million postpaid subscribers in the second quarter, with significant contributions from Colombia, Peru, Argentina, and Mexico.
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The company connected 531,000 new broadband accesses, with Mexico, Brazil, and Colombia being major contributors.
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Second quarter revenue increased by 3.1% year-on-year in Mexican peso terms, reaching MXN241 billion.
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Operating profit rose by 9.5% in Mexican peso terms, totaling MXN51.8 billion.
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Net income increased by 9.2% from the previous year, amounting to MXN24 billion.
Negative Points
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The prepaid segment experienced a net loss of 3.7 million subscribers, primarily due to base clean-up in Colombia and Argentina.
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The company faced a regulatory fine of MXN1.3 billion related to alleged violations of asymmetric measures dating back to 2017.
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There is increased competition and promotional activity in Brazil, particularly in the prepaid and postpaid segments.
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The company noted a slowdown in the Brazilian economy, which could impact revenue growth.
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Capital expenditures amounted to MXN48 billion, which, along with other financial obligations, impacted cash flow.
Q & A Highlights
Q: Could you elaborate on the competitive environment in Brazil, particularly regarding the new low-end hybrid plans? A: The Brazilian market has become more promotional, especially in prepaid and postpaid segments. While Claro Flex trends remain stable, promotions have intensified. We anticipate a recovery in the third and fourth quarters, but if competitors remain aggressive, we may need to adjust our strategies accordingly. On the fixed side, revenue growth is strong, supported by our robust network and customer care investments. - Daniel Hajj Aboumrad, CEO
Q: What factors are driving the strong prepaid performance in Mexico despite mixed economic signals? A: The Mexican economy is recovering, and our prepaid customers are recharging more frequently and with higher amounts. Our extensive 5G network and increased coverage are attracting more subscribers. Additionally, our prepaid base is consistently active, contributing to revenue growth. - Daniel Hajj Aboumrad, CEO and Carlos Jose Garcia Moreno Elizondo, CFO
Q: How is the World Cup impacting Mexico's mobile revenue growth, and what is the status of mobile registration? A: The World Cup had a minor impact, with increased roaming and data usage during the event. Regarding mobile registration, it primarily affects prepaid subscribers, with a phased registration process starting in August. Postpaid customers are already registered. - Daniel Hajj Aboumrad, CEO
Q: Can you explain the increase in other financial expenses and the impact of Nucell on your financials? A: The rise in financial expenses is partly due to a fine related to past regulatory issues and currency hedging activities. Regarding Nucell, its subscribers are included in our base, and revenue is shared between Claro and Nucell. - Carlos Jose Garcia Moreno Elizondo, CFO and Daniel Hajj Aboumrad, CEO
Q: With the current US dollar weakness, do you foresee any changes to your CapEx guidance or capital allocation strategy? A: The weak dollar increases our CapEx in dollar terms, but we remain committed to our MXN7 billion target. We prioritize maintaining our leverage ratio and are open to acquisitions that complement our existing operations, like the recent WOW acquisition in Peru. - Daniel Hajj Aboumrad, CEO and Carlos Jose Garcia Moreno Elizondo, CFO
Q: What is your M&A strategy in Europe, and are you considering any divestments, such as your stake in Verizon? A: We focus on acquiring companies that enhance our fiber network and customer base, like Desktop and WOW. We are not actively pursuing divestments, including our Verizon stake, unless favorable conditions arise. - Daniel Hajj Aboumrad, CEO
Q: How do you view the regulatory fine on Telmex, and what are the implications for future regulatory actions? A: The fine, related to alleged violations from 2017, is considered disproportionate. We hope there won't be similar fines in the future, as we believe this one was unjustified. - Daniel Hajj Aboumrad, CEO
Q: Can you provide insights into the strong performance in Colombia and your outlook for Argentina? A: In Colombia, we are experiencing robust growth in mobile and corporate segments, driven by our 5G network and customer service. In Argentina, despite competitive challenges, we continue to expand our fiber and broadband offerings. - Daniel Hajj Aboumrad, CEO and Carlos Jose Garcia Moreno Elizondo, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
