Good morning. My name is Samantha and I will be your conference operator today. At this time, I would like to welcome everyone to the America Mobile First Quarter 2026 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I will now turn the call over to Ms. Daniela Lacuona, Head of Investor Relations.

Good morning. Thank you all for joining us today to discuss our first quarter of the 2026 Financial and Operating Report. We have today on the line Mr. Daniel Cash, our CEO, Mr. Oscar Bonhauke, our COO, and Mr. Carlos Garcia Moreno, our CFO.

Thank you, Daniela. Thank you, everyone, for being in the call. Carlos is going to make a summary of the first quarter results. Thank you, Daniel. Good morning, everyone.

Well, the downward trend on a short-term dollar interest rate following the 25 basis rate reduction of the policy rate by the Fed in December continued in the beginning of the first quarter as the market became increasingly concerned with a potential slowdown in economic activity in the U.S. The value of the dollar versus the currency, including those in our region of operations, declined throughout the first part of the quarter, with the dollar falling 4.3 versus the Mexican peso, 3 percent versus the Chilean peso, and 6.4 percent versus the Brazilian real by the end of February. With the major exception of the latter, the U.S. dollar made up practically all its losses in the weeks after the initiation of the war with Iran. Throughout the period, the differential between short-term rates and 10-year rates widened significantly, from eight basis points to 64 basis points at the cross of the quarter, with investors eyeing both a slowdown in the pace of economic activity, possibly even a recession, and higher inflation rates. In this context, in the first quarter, we continue to observe a trend towards an acceleration of both post-its of private growth and that of broadband accesses, as you can see, in this slide. The base increased 8.8% and 6% respectively vis-à-vis the yearly quarter. First quarter revenue was up 2.1% in Mexican peso terms to 237 billion pesos, with service revenue of 0.6%, equipment revenue 7.4%, and other revenue, 108%, including the proceeds of a federal ruling in Chile on account of a dispute around $1.7 billion. EBITDA increased nearly twice the peso's revenue at 3.8 percent. These are all in Mexican pesos. The figures cited above reflect the appreciation of Mexican pesos versus practically all of the currencies in our region of corporations, having gained 16 percent versus the dollar, 4 percent, 4.6 percent versus the euro, four and a half percent versus the Brazilian real, and two and a half percent versus the Colombian pesos with respect to the same period of 2025. So, major application of the peso, first quarter of 26, vis-a-vis first quarter of 25. At constant exchange rates, revenue rose 6.1 percent on the back of a 4.6 percent increase in service revenue and 11.3 percent in equipment revenue, driving an 8 percent expansion in EBITDA. Adjusted for the extraordinary proceeds of the legal ruling, EBITDA was up 7.30 percent. The greater operating leverage is allowing for faster EBITDA growth, with EBITDA now expanding more rapidly than service revenue. And then our consolidated EBITDA margin to reach 40 percent, one of our highest margins At 6.4% year-on-year, a similar pace to the last several quarters, mobile service revenue growth has remained resilient, with posted revenue growth at 7.3% and prepaid revenue at 5%, having expanded faster quarter to quarter over the last year. Mobile service revenue growth has been on an upward trend in Mexico and Colombia, as you can see in the light, on the back of greater prepaid revenue, which has been recovering all over the last real quarter. On the feed-line platform, service revenue growth was up 1.7% in the first quarter. Some regions, in particular Eastern Europe, Central America, Peru, and Ecuador, raised a very rapid growth driven by residential demand. As regards to our operating profit, it came in at 50.5 billion pesos, or 12% in Mexican peso terms, while our comprehensive financing cost declined 9.9%, reflecting lower net interest expenses. These concepts brought about a 25% increase in our net income to 23.4 billion pesos, which which was equivalent to 39 pesos cents per share and $44 per ADR. Our financial debt, which has gone to 7 billion pesos at the end of March, having increased by 2.5 billion pesos, that's the one I've found at the close of December, but this means that our net debt for the period at the end of March stood at 437 billion pesos and was equivalent to 1.41 times EBITDA after leases. Our cash flow in the first quarter allowed us to cover 21.6 billion pesos in CAPEX, 1.4 billion pesos in share buybacks, 1.5 billion pesos in labor obligation, and further, to reduce our net debt by 1 billion pesos. So this story that you can see here in the slide. So with that, I thank you for listening to the presentation, and I will pass the floor back to Daniel for Q&A.

Thank you. Thank you, Carlos. And we can start with the Q&A.

Thank you. We will now move to our question and answer session. At this time, I would like to remind everyone in order to ask a question, press star, then the number one on your telephone keypad. We'll pause for a moment to compile the Q&A roster. Your first question comes from the line of Leonardo Olmos with UBS. Leonardo, your line is open.

Hi, everyone. Good morning. Congrats on the results. We've got a couple of questions here. The first on capital allocation and buybacks with the reduction of net debt to the debt to 1.4. How should we think about the balance between continued leveraging and a more visible acceleration buybacks from here? What leverage would it make more comfortable stepping up capital returns? And the second one, still on leverage, but more on the M&A context, if trading trends and effects remain broadly stable, should we expect leverage to continue trading lower from here? And how do you think about M&A activity in that context? How is it going to impact your free cash flow? I mean, the actual payments of the M&A. That's it. Thank you.

Thank you, Leonardo. Well, a couple of – what we need to see and what we want is some space because I think the region is in very good shape, okay? So the region is going to – we're going to have some opportunities in the region, in Latin America and in Eastern Europe. So both we are growing good and we're doing very good. So we think that in Eastern Europe and Latin America, there's going to be good opportunities, and we are looking for some of them. We already, we just a few months ago, we closed Azteca, the network of Azteca in Colombia. We just closed the desktop. So there's going to be more opportunities on that. So as you said, we need to have a good balance between buybacks, between the leverage and the opportunities that we have. We are looking for some opportunities, and these opportunities are going to give us a very good competitive position position in the places where we are looking. So these opportunities are going to make a very good fit and are going to allow us to grow more or faster than where we are. So that's where we are, and that's the balance that we have. Carlos, as Carlos was saying, we want to have the debt to 1.3, more or less, is what we want to have. We have more opportunities. And we are also, we increase, we are increasing our, no, okay, we're increasing the, to 10,000, the pond, 10,000 pesos more to have 21,000 pesos on the pond. So we want to buy. We want to buy back more. We want to take the opportunities and we want to deliver it. As you are saying, we want to have a good balance on that. Right now, I'm personally seeing good opportunities in some countries that makes very good fit for us, and we're looking and doing that. So that's where we are, Leonardo.

Yeah, good to see you answer both of my questions in one answer. Thank you for that. Just a quick follow-up. In the past, you used to talk about fiber opportunities in Latina. Are we still on that, or are you considering mobile or other type of network complementarity?

No, we're considering everything. We're considering fiber. I think there's a lot of fiber companies in the region that makes fit. Instead of putting fiber, they are already with fiber and some customers. And also Spectrum. You know that we buy last year some Spectrum in Puerto Rico. There's a lot of things that you can see. what we do in desktop, the backbone that we do with Azteca Colombia. And you are going to see all this year good opportunities, Leonardo. So we want to take those, to have a chance to take those opportunities.

Very good. Thank you very much and have a great day. Thank you. Thank you.

Thank you, Leonardo. Our next question comes from Marcelo Santos at JPMorgan. Marcelo, your line is open.

Hi, good morning. Thanks for the opportunity for asking. I have to, the first is if you could provide us an update on the CapEx plan for 2026. There was a lot of changes in currencies. The Mexican peso got getting stronger. So just wanted to hear what you plan for CapEx this year, maybe the next couple of years. And the second one, you mentioned in the release some operational issues in Argentina. Could you please comment a bit on that? Just give a bit more color on that would be great.

Well, as you said, we have been having a lot of movements in the change rates. And we have been reviewing carefully what we're going to have in each country for the CAPEX. You know that the CAPEX is part in dollars, part in local currency. So we're reviewing that, but all over all, what we think, finalizing our CAPEX, we think that the CAPEX for this year is going to be $7 billion, around $7 billion, depending, could be a little bit more, a little bit less, depending on, as we said, the exchange rates. and we think that for the next years we'll be around that. We are going to have our investor day in May and we can finalize the numbers for the next years but I can say that we are more or less in that number. And Argentina, I don't know what you are asking on Argentina.

I think you mentioned on the fixed-line business in Argentina that you said the fixed-line market has become more challenging because of the difficulties in assessing clients in the Buenos Aires metropolitan area. So I just wanted to better understand.

We're doing very good putting fiber in Argentina. Very difficult for us to do it in Buenos Aires as the capital city. so that's the only thing we're putting fiber, we're growing, we're putting broadband, we're giving TV and doing fourth play it's been very good for us, we're growing very good in Argentina and the only place where it has been difficult for us is Buenos Aires because I think we have permission but it's difficult because they don't rent us the telephone posts and they don't allow the competition to go there. And it's difficult to do it underground. To go underground has been very difficult to do it there, but that's the main reason that we have. Okay, very clear. Thank you very much. Where we have Fiverr, we're growing very good, penetrating the network, doing Fiverr, doing Quadplay, doing excellent. So that's been good for us. With all of that, we're going to have a big competitor in Buenos Aires because the market share of our competitor, or telecom buying Telefonica is going to be high. So let's see what is going to happen there, no?

All right. Thanks a lot. Thank you.

Thank you. Your next question comes from Andres Coelho of Scotiabank. Andres, your line is open.

Yes. Thank you for taking my question. Daniel, as you know, Starling said back in December that the direct-to-sale service is already available or could be available in Mexico. Obviously, users will appreciate that. And I'm wondering if America Mobile could work with Starlink. Thank you.

I don't hear you so well. Can you repeat the question, please?

So Starlink said in December that direct-to-sale service is available in Mexico since December. So they could provide the service in Mexico. And this will be obviously very good for users, especially in remote areas. So I'm wondering if America Mobile could work with Starlink to provide direct-to-sell service.

Yes. I think the real direct-to-sell service, what I understand is going to be in 2027, something like that. They are going to launch a new satellite, and that will be the direct to sell. Well, they have been successful selling broadband to the houses in Latin America, I think all around the world. We are open to do anything for them that makes sense for us, of course, and we're talking with them, and I think it's going to be a good technology. So for doing that, you need to have a spectrum. So I don't know if they already have a spectrum in some places. I understand that they buy a spectrum in the U.S. and some in Europe, but I don't know if they have a spectrum in Latin America. But we are open. If your question is we want or we can do something with them, of course, I think it's a service that makes a complement with us. And, of course, we are open to do something with them.

Okay, thank you. As you know, Entel is doing direct-to-sell in Chile and Peru. And I understand that in Costa Rica the service will be available soon. So you're saying that you will wait until 2027 for the terrorist to be available in Mexico?

No, no, we're not waiting. We're talking with them. But I think the real and the orbits of satellites for CEL is going to be available in 2027. They are doing something today in some countries, of course. But the one that is going to be big and it's going to be directly to CEL is going to be, I think they said, this is what they said. I'm not starting, but what they said is going to be in 2027. Of course, they already have some... The new constellation is going to be in 2027, but they already have a constellation that can do the fixed broadband. But we're not waiting. We're talking with them. and see what opportunities we can have. Understood. Thank you. Thank you.

Thank you. As we continue with our question and answer session, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. That is star number one. Our next question comes from the line of Luca Brendim at Bank of America. Luca, your line is open.

Hi, good morning, everyone. Thank you for taking my questions. I have two from my side here. The first one, can you comment a little on how are you seeing the expansion of your partnership with NuSel and how relevant it has been for the strong expansion we have seen in Brazil Mobile this quarter in terms of new net additions? And then the second one, how do you see the potential impact of the recently announced M&A in Mexico Mobile and what the impact that this could have to the market and to America Mobile more specifically?

The second question is the announcement in Mobile in Mexico of what?

Yeah, the recent M&A that was announced, the Telefónica selling their assets.

Ah, the buy, the purchase from Telefonica, the sale of Telefonica in Mexico?

Yes, yes, that's it.

All right, all right. Well, I don't know if in Brazil we are disclosing the numbers of number portability between what we have and what new sell. Well, I can tell you that we have been doing very well. In number portability, we have been gaining number portability for the last four years, three, four years, gaining number portability in all the regions with all our competitors. So we have been doing well. And with Nuzel, we increased that number portability. So that's nothing that we have been doing bad. And then with Nuzel, change and we're doing good. So we have been gaining in number portability because we have a very good 5G, we have customer care, we do combos with the pigs. So we have a lot of promotions and we are, I think, in a very good shape in terms of technology and customer care. we have been investing in Brazil and that's giving us good results for the last years so with Nuzel our portability expands we are growing I don't have the number here how much is in us and how much is in Nuzel I don't know if in Brazil but if in Brazil they disclose that Daniela can give it to you But it's something on top of what we have been doing very well. I'm not saying that Nuzel is doing very well. And we think that we can still grow more in Brazil in number portability. Since October, I think we're gaining more and more. And I hope we can do more, Luca. And, well, how I can see Mexico, I can say that the last years of Telefonica in Mexico has been shrinking a little bit in terms of technology, in terms of infrastructure, in terms of frequencies. So they start to be like an MVNO of, I think, Cartaltan and the other of AT&T. They are buying that. So there is a good company, a good name, but not investing what they need to invest in Mexico. And I don't know what's going to be the strategy of these new buyers. And I don't know if they are going to still do and manage the company as an MDNO or they are going to put in the structure and buy a spectrum and compete. So let's see. Still, right now, I don't know what they are going to do.

Very clear. Thank you for the answer. Thank you.

Our next question comes from the line of Fanny Kanumuri from HSBC. Fanny, your line is open. Please go ahead.

Thanks for taking my question. My first question is on Mexico Mobile. The growth seems to be accelerating. What are the major drivers behind the growth in Mexico Mobile? And can we expect this growth to continue in 2026? My second question is on working capital. It seems to have increased a bit in 1Q, 26 compared to 1Q, 25. What are the reasons behind the increase in working capital?

Well, on Mexico mobile, I think we are growing. Part is I think that the economy in Mexico is getting better. The increase in the salary, the minimum wages, increased 12%, I think, and that gives us an increase also in the prepaid side. So as we have been saying, prepaid is very related to the economy, and if the economy is starting to be better, then the people are starting to spend a little bit more, And that's what we have been seeing in the prepaid side. In PostPay, people like our promotions. We are increasing ARPU. And it's not new, I think, in PostPay. The growth rate has been very good for the last five quarters. So our ARPU is growing. And we are growing in new customers. and our actual customers are moving to better plants and consuming more. So that's more or less what you have been seeing, and I hope that will be – but it's not in this quarter. I think for the last five quarters, six quarters, four quarters, the growth of post-paste has been doing good. And in pre-paste, I think last year we had a little bit of slowdown because of the slowdown of the economy, but I think the economy is getting better and the recovery is doing good. So that's more or less what we have.

And on the working capital, I think there's two things to note. One is that we are taking a bit more inventory. We have been more cautious about availability of supplies. If you look at equipment revenues, they've been extremely good, extremely solid this quarter and the last one. And if you look across countries, you will see particularly Mexico, Brazil, showing very, very strong sales of equipment. So that's partly reflected in the working capital. And then again, and it's partly linked to this, we are financing very successfully handsets. And a consequence in Mexico, for instance, the way we do it is we are basically leasing the handsets. and this basically entails some additional working capital. But it's been good sales, and I'm very successful, these methods of selling the equipment.

Yeah, and to add a little bit of what Carlos is saying, we all know that the chips, the memory chips, has been increasing a lot the prices, so the price of the handsets is starting to increase. So we want to be sure that we have enough handsets to serve our base, our customer base. So that's really the reason why we increase on inventory. So prices are increasing. And we don't know if only prices are increasing or we're going to have a lack of handsets. so that's why we are taking uh uh that the decision to increase a little bit our inventors perfect thank you thank you our next question comes from the line of emilio fuentes de leon from gbm emilio your line is open please go ahead thank you for taking my questions i have two questions regarding mexico on the operating side first regarding the disconnections from the

initiative from the Digital Transformation Agency, could you give us a little more color on the nature of these clients? Were they mostly on active lines? And my second question would be on the broadband side. Given that you're reaching 90% of customers connected through fiber, would this mean that we should expect the NetApps to decelerate going forward?

Well, you know that since January 9, the registry of lines, we have to do it by law. We have to register the line and do a lot of things there. So maybe people are starting to activate less and churn less because they don't want to do it. But, well, that is going to happen. So I think there's going to be a lot of clean in the basis of subscribers and subscribers that they are not using. At the end of the day, you need to cancel them because they are not going to be registered in the 1st of July. So there's going to be a lot of things. But all over all, it's only number of lines, not money and consumption. And so for me, I don't know if I'm I'm not looking on how many lines or how many new activations, because if I activate a lot, but then they turn in the next three or four months, it's worse because it's cost for me and it's not a revenue for me. So that will make subscribers, the base of subscribers to be more clean and to really understand where we are in number of subscribers with this new register of lines. So let's see. It's been not as fast as all ones, the register. All the new ones have to be registered, and all the old ones have to be registered until July 1st. So let's see what is going to happen. All over all, what I'm saying is a lot of people maybe it's not buying a new phone and staying with that because if they buy the new one, then they have to register. But that's going to finish maybe in July. So there's going to be a lot of things. All over all, the important is how many good subscribers and subscribers that are consuming are the ones that the company has. And that you see in the revenues, in the ARPU, in all of that. So that's what is going to happen. The band ancha, the broadband in Mexico. And what's the reason why the broadband will slow down? What's your second question?

Yes, my question was regarding the broadband net ads. Should we expect this to slow down as you reach full penetration on your fiber network?

Well, still we have. I don't think that our adware broadband will slow down. because what we're doing is we're moving from copper to fiber, I think.

93%.

93% of our base is in fiber right now.

We have a very good bond also in the market. We recently increased the speed, almost one-third with the same price. So I think we will continue with a good level of net-up. Okay.

We hope they don't slow down and we can continue. with that number.

Thank you.

Thank you.

Our next question comes from David Lopez at New Street Research. David, your line is open. Please go ahead.

Hi. Thank you for the opportunity and congrats on the results. A couple of questions, please. First one is a follow-up on Mexican broadband. I was wondering if you could comment on the competition recently, if there have been any changes and if you could expand a bit on the reason why you've increased the speed on all the packages and with Televisa upgrading to fiber a large part of its business does that mean it's going to be harder for your net ads and the second question on Brazil I was wondering if you could comment a bit on your plans for price increase this year. Thank you.

Well, I'm going to start with the second question, and I'm going to let Oscar talk a little bit about the broadband in Mexico. Well, in Brazil, we don't have until now a plan of increasing prices at this moment. I don't know if there's going to be a chance to do it in the year, but right now We don't have any idea on increasing prices in Brazil in anything, in mobile, in broadband, in TV. So we don't have plans to increase prices. And on broadband in Mexico?

As we mentioned before, we are going to upgrade the network. We have a very good network. And you mentioned about the business. We want to be fair and safe ourselves in the broadband, adding value to our small business connectivity. So we are bundled with cloud services, cyber security, productivity tools for small business. We have a team really focused just on small business to really penetrate not only broadband, to bring value added to the small business as well on enterprise. So we believe that that has been working very well, and the product has been very well adapted in the market. So we believe that we will continue with that.

And to talk a little bit about, I want to do some other comments. I think all over all, America Mobile is doing very well in other countries. We're talking about Mexico a lot. We're talking a lot about Brazil. But I think the recovery in Colombia has been very good. We're increasing in broadband. We're doing much better in post-paid. So in Colombia, I think the market is performing well. We are performing well. We are cutting costs and doing a lot of things. So our revenues are growing. Our EBITDA is growing better.

In Peru, right?

No, in Colombia. In Peru, also, things are going okay with us. We have a top competitor that has a lot of – sorry, and in Colombia, we advance in 5G, and we have the best 5G network until now, so we are doing okay. In Peru, also doing very good in broadband, growing our net ads, and performing very well in revenue and in Edita. So if you see all the Central America has been doing all so good. We talk also about Eastern Europe growing a lot, moving a lot. Five years ago, we only had mobile. Today, we have mobile and fix and doing a lot of convergence there. So I think the results, and in almost all the countries, we are performing very well, cutting costs, digitalizing, that will help us for the future. We are putting a lot of money on the CapEx, on digitalizing our processes, digit IT, and doing that. Also, in big businesses, we are putting more and more cloud, selling more services. So, all of that has been doing very strong in our region. And as we said, we want to speed up and take more opportunities there. So that's what I want to talk a little bit more on that.

Very clear. Thank you. Thank you.

Our next question comes from the line of Ernesto Gonzalez with Morgan Stanley. Ernesto, your line is open. Please go ahead.

Hi. Thank you for taking our question. And I wanted to ask exactly about Colombia, which you were commenting on a moment ago, and a few of the other markets where Telefonica has recently left. Could you discuss a little bit of the trends you're seeing? For example, Colombia, we saw an acceleration in revenues. What is driven by your commercial strategy? What is driven by market consolidation? And any color you could give on these moves is greatly appreciated.

Well, in Colombia, we have been investing for a long time. We invest in 5G. We have the best 5G network, so our customers are happy. Our traffic is growing well. In terms of broadband, we have been decreased the last year a little bit, but we're increasing this quarter on the broadband side. We have a lot of competition in Colombia with these ISPs there, and consolidation has been also good. But I think consolidation in Latin America is also being good for all the competitors. So you need to invest, you need to take the opportunities, but all over all, we think the markets are looking better.

That's really clear, thank you. And just one more question on Mexico. So margins improved, and they were the highest level in a long time. You continue expanding really, really well in fixed. What drove the margin improvement and how sustainable is it?

Well, in fixed, what Oscar is saying is we increase the speed to all of our customers. So we have fiber, and we're using that fiber. So the evaluation of our customers is that they are happy with the network, happy with the service, and we are going to still give what the market is giving. So we want to be very competitive there. And also in prepaid, as we said, prepaid, let's say, I think, I don't remember exactly the number, but I think first quarter of last year, we have decreasing in revenues in prepaid. And this quarter, we are increasing like 4%, 5%. So, economy is doing better. Customers are consuming more. So, all over all is what, and we are very strict on the cost control. Something that nobody sees and is giving us a lot of good is the digitalization of all our process. So we are taking, we are being much more productive, digitalizing all the process, doing better IT, using some AI and some processes that give us more knowledge of our customers. So all of that is helping us to perform better in each country.

Really clear.

Thank you. we have reached the end of the q a session i will now turn the call over to mr daniel hash for final remarks well daniela daniela wants to just before we end the call i just want to remind everyone that we're hosting our next investor day in new york city this is may 27th the save the date has been sent out and that we will be sharing details on the agenda soon we really hope to see you all there and please don't hesitate to contact the team if you have any questions or need any help

with the registration and thank you thank you very much this concludes thank you this concludes today's conference call, you may now disconnect.