Alejandro Azar Wabi

Alejandro Azar from GBM inquired about América Móvil's perspective on the regulatory environment amidst increasing market consolidation across Latin America, including rumors about AT&T in Mexico, and whether less asymmetric regulation for AMX could be expected in the future.

Answer

CEO Daniel Hajj and CFO Carlos García Moreno discussed the ongoing consolidation wave in Latin America, noting that it's beneficial for the industry as it requires scale for investment returns. They clarified that asymmetric regulation is unique to Mexico. They stated that América Móvil focuses on strengthening its network and services regardless of competitor changes, expressing hope for further market consolidation in regions like Chile.

Alejandro Azar inquired about América Móvil's perspective on the regulatory environment amidst market consolidation across Latin America (Colombia, Chile, Brazil) and rumors regarding AT&T in Mexico. He asked if less asymmetric regulation for América Móvil in Mexico is anticipated in the future.

Answer

Daniel Hajj (CEO) clarified that asymmetric regulation is exclusive to Mexico, not other operating countries. He expects further market consolidation in Latin America (mobile and fixed), which he views as beneficial, noting a decline in new fiber competitors. Regarding AT&T rumors, he stated América Móvil focuses on its own network and service quality. Carlos García Moreno (CFO) added that industry dynamics globally favor scale, leading to consolidation, a trend increasingly recognized by regulators.

Alejandro Azar Wabi inquired about the 2024 growth of the cloud and corporate networks business and its share of CapEx. He also asked for clarification on the company's pension plan outflows and their expected trend over the next decade.

Answer

CEO Daniel Hajj Aboumrad and Executive Carlos Jose Garcia Moreno Elizondo highlighted that the corporate segment is one of the fastest-growing, with revenue growth accelerating to 12.3% in Q4. Executive Oscar Von Hauske Solís explained that pension outflows are expected to remain at current levels for about three years before declining, as payments have likely peaked.

Alejandro Azar Wabi inquired about the competitive landscape in the Cable segment following Q4 disconnections and how the company balances acquiring quality clients versus price-sensitive ones to grow free cash flow. He also asked about the potential for accelerated deleveraging at TelevisaUnivision in 2025 and whether a strategic team-up could be an alternative to an IPO for monetization.

Answer

Executive Francisco Valim Filho explained the focus is on high-value, loyal customers and that cash flow grew despite subscriber losses due to internal optimization and synergies. He expects subscriber growth to resume in 2025. Executive Alfonso de Angoitia Noriega addressed TelevisaUnivision, confirming deleveraging is a top priority, bolstered by the profitability and success of the ViX streaming platform. He highlighted ViX's strength from its vast content library and efficient production, making the asset highly attractive for potential future consolidation.