6-K
AMERICA MOVIL SAB DE CV/ (AMX)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF AFOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2023
Commission File Number: 1-16269
AMÉRICA MÓVIL, S.A.B. DE C.V.
(Exact Name of the Registrant as Specified in the Charter)
America Mobile
(Translation of Registrant’s Name into English)
Lago Zurich245
Plaza Carso / Edificio Telcel, Piso 16
Colonia Ampliación Granada, Miguel Hidalgo
11529 Mexico City, Mexico
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
América Móvil’s second quarter of 2023 financial and operating report
July 11^th^, 2023 / 2Q23
Mexico City - América Móvil, S.A.B. de C.V. (“América Móvil”) [BMV: AMX] [NYSE: AMX, AMOV], announced today itsfinancial and operating results for the second quarter of 2023.
| • | We added 2.2 million wireless subscribers in the second quarter including 1.5 million postpaids. Brazil<br>contributed 632 thousand, Austria 267 thousand and Colombia 171 thousand. | ||
|---|---|---|---|
| • | Prepaid net subscriber additions stood at 787 thousand, with Brazil and Mexico adding almost<br>200 thousand each and Colombia 185 thousand. | ||
| --- | --- | ||
| • | On the fixed-line segment we obtained 331 thousand broadband accesses including 140 thousand in Mexico,<br>78 thousand in Argentina and 45 thousand in Brazil. | ||
| --- | --- | ||
| • | Second quarter revenue was down 4.6%<br>year-on-year to 203 billion pesos in Mexican peso terms, but correcting for foreign exchange effects, service revenue increased 5.0%, expanding 6.7% in mobile<br>services and 2.3% on fixed-line ones. Mexico, Brazil and Austria saw continued progress on their fixed-line revenue growth. | ||
| --- | --- | ||
| • | EBITDA was down 3.8% in Mexican peso terms to 78.7 billion pesos in the quarter, resulting in a 38.9% EBITDA<br>margin. At constant exchange rates it expanded 5.6% in the period on greater operating leverage. | ||
| --- | --- | ||
| • | Operating profit of 40.3 billion pesos was down 2.8% year-on-year whereas our net profit nearly doubled from the year-earlier quarter to 25.9 billion pesos, mostly on account of greater foreign exchange gains. | ||
| --- | --- | ||
| • | In the first six months of the year capital expenditures totaled 64.4 billlion pesos and distributions to<br>shareholders 5.0 billion pesos, including share buybacks in the amount of 3.1 billion pesos and dividends of 2.0 billion. | ||
| --- | --- | ||
| • | In cash flow terms we reduced our net debt by 3.8 billion pesos in the period. Our net debt excluding leases<br>totaled 358 billion pesos at the end of June, having come down by 23.9 billion pesos from the end-of-December figure on the back of the appreciation of the<br>Mexican peso vis-à-vis other currencies, particularly the U.S. dollar. It was equivalent to 1.43 times LTM EBITDA. | ||
| --- | --- | ||
| América<br>Móvil Fundamentals | |||
| --- | --- | --- | --- |
| 2Q22 | |||
| Earnings per Share (Mex) (1) | 0.41 | 0.21 | |
| Earning per ADR (US) (2) | 0.46 | 0.21 | |
| EBITDA per Share (Mex) (3) | 1.25 | 1.28 | |
| EBITDA per ADR<br>(US) | 1.41 | 1.27 | |
| Net Income (millions of<br>Mex) | 25,875 | 13,683 | |
| Average Shares Outstanding<br>(billion) | 63.2 | 64.0 | |
| Shares Outstanding End of<br>Period (billion) | 63.2 | 63.9 |
All values are in US Dollars.
^(1)^ Net Income / Average Shares Outstanding
^(2)^ 20 shares per ADR
^(3)^ EBITDA / Average Shares Outstanding
| América Móvil’s Subsidiaries as of June 2023 | |||
|---|---|---|---|
| Country | Brand | Main Activity | Equity |
| Mexico | Telcel | wireless | 100.0% |
| Telmex | wireline | 98.8% | |
| Argentina | Claro | wireless/wireline | 100.0% |
| Brazil | Claro | wireless/wireline | 99.6% |
| Colombia | Claro | wireless/wireline | 99.4% |
| Costa Rica | Claro | wireless/wireline | 100.0% |
| Dominicana | Claro | wireless/wireline | 100.0% |
| Ecuador | Claro | wireless/wireline | 100.0% |
| El Salvador | Claro | wireless/wireline | 95.8% |
| Guatemala | Claro | wireless/wireline | 99.3% |
| Honduras | Claro | wireless/wireline | 100.0% |
| Nicaragua | Claro | wireless/wireline | 99.6% |
| Paraguay | Claro | wireless/wireline | 100.0% |
| Peru | Claro | wireless/wireline | 100.0% |
| Puerto Rico | Claro | wireless/wireline | 100.0% |
| Uruguay | Claro | wireless/wireline | 100.0% |
| Netherlands | KPN | wireless/wireline | 16.1% |
| Austria | A1 | wireless/wireline | 51.0% |
Note
Upon its sale in July 2022 Claro Panama became a discontinued operation. Claro Chile did so as well upon the establishment of the joint venture with LibertyLatin America in October 2022. The financial statements presented in this report account for those operations as discontinued operations.
Thereported figures for Argentina corresponding to the second quarter of 2023 are presented in accordance with IAS29 reflecting the effects of inflationary accounting as the Argentinean economy is deemed to be hyperinflationary. All comparisons atconstant exchange rates for America Movil’s consolidated figures will exclude Argentina to ensure consistency.
Relevant Events
Ordinary dividend of MXP$0.46 per share
In April our shareholders approved a buyback program fund in the amount of MXP 20 billion and the payment of an ordinary dividend of MXP$0.46 per share to be paid out in July and in November. They also agreed on the cancelation of treasury shares acquired as part of our buyback program, and to amend article sixth of its bylaws reducing the capital stock in proportion to the cancelled shares.
One billion-euro financing for Euro Tele Sites
On June 9th we closed a 500 million-euro, five-year bullet loan for the new Euro Tele Sites, a tower company to be spun-off from Telekom Austria. The loan was provided by a group of six international banks. A few weeks later, on July 6th, the same entity launched a 5.25%, 500 million-euro five-year bond. Euro Tele Sites will thus be fully funded at the time of the spin-off.
América Móvil’s Global Peso Notes program
On June 26th we launched the inaugural issue of our new Global Peso Notes program, under which we expect to issue an amount of up to 130 billion pesos over five years. In our inaugural offering, registered both with the SEC in the U.S. and with the CNBV in Mexico, we placed a long seven-year, 17 billion-peso, 9.5% sustainable bond—approximately one billion U.S. dollars equivalent—maturing in January 2031. Nearly half of the bonds were distributed amongst international investors.
Access Lines
2.2M wireless net adds, 1.5M were postpaid clients
We added 2.2 million wireless subscribers in the second quarter of which 1.5 million were postpaid clients. Brazil contributed 632 thousand new contract clients, while 267 thousand came from Austria and 171 thousand from Colombia. On our prepaid platform we had net additions of 787 thousand clients in the period, with Brazil and Mexico gaining almost 200 thousand each and Colombia 185 thousand.
331k new broadband accesses
On the fixed-line segment we obtained 331 thousand broadband accesses including 140 thousand in Mexico, 78 thousand in Argentina and 45 thousand in Brazil. Voice lines and PayTV units fell by 253 thousand and 47 thousand, respectively, in the quarter.
Postpaid base +3.7% YoY and fixed-broadband accesses +3.0% YoY
Our subscriber base comprised 303 million wireless subscribers at the end of June, of which 117 million were postpaid clients. In addition, we had 73 million fixed-line RGUs, including 31 million broadband accesses, 13 million Pay TV clients and 29 million land-lines. Our postpaid base increased 3.7% year-on-year, with prepaid expanding 0.7%, fixed-broadband 3.0% and PayTV practically flat.
| Wireless subscribers as of June 2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Total^(1)^ (Thousands) | ||||||||||
| Country | Jun ’23 | Mar ’23 | Var.% | Jun ’22 | Var.% | |||||
| Argentina, Paraguay and<br>Uruguay | 27,462 | 27,178 | 1.0% | 26,638 | 3.1% | |||||
| Austria | 9,511 | 9,250 | 2.8% | 8,306 | 14.5% | |||||
| Brazil | 83,671 | 82,844 | 1.0% | 85,735 | -2.4% | |||||
| Central<br>America | 16,834 | 16,845 | -0.1% | 16,189 | 4.0% | |||||
| Caribbean | 7,469 | 7,410 | 0.8% | 7,222 | 3.4% | |||||
| Colombia | 38,424 | 38,068 | 0.9% | 36,322 | 5.8% | |||||
| Eastern<br>Europe | 14,975 | 14,867 | 0.7% | 14,969 | 0.0% | |||||
| Ecuador | 9,290 | 9,163 | 1.4% | 8,802 | 5.5% | |||||
| Mexico | 83,243 | 82,982 | 0.3% | 81,364 | 2.3% | |||||
| Peru | 12,323 | 12,347 | -0.2% | 12,202 | 1.0% | |||||
| Total WirelessLines | **** | 303,202 | **** | 300,952 | **** | 0.7% | **** | 297,749 | **** | 1.8% |
^(1)^ Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated.
| Fixed-Line and Other Accesses (RGUs) as of June 2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Total^(1)^ (Thousands) | ||||||||||
| Country | Jun ’23 | Mar ’23 | Var.% | Jun ’22 | Var.% | |||||
| Argentina, Paraguay and<br>Uruguay | 3,250 | 3,055 | 6.4% | 2,417 | 34.4% | |||||
| Austria | 2,892 | 2,917 | -0.9% | 2,995 | -3.4% | |||||
| Brazil^(2)^ | 23,452 | 23,889 | -1.8% | 24,699 | -5.0% | |||||
| Central<br>America | 4,763 | 4,700 | 1.3% | 4,514 | 5.5% | |||||
| Caribbean | 2,750 | 2,734 | 0.6% | 2,673 | 2.9% | |||||
| Colombia | 9,334 | 9,263 | 0.8% | 9,075 | 2.9% | |||||
| Eastern<br>Europe | 3,357 | 3,304 | 1.6% | 3,140 | 6.9% | |||||
| Ecuador | 615 | 623 | -1.4% | 582 | 5.6% | |||||
| Mexico | 21,074 | 20,944 | 0.6% | 21,256 | -0.9% | |||||
| Peru | 1,957 | 1,985 | -1.4% | 1,962 | -0.2% | |||||
| TotalRGUs | **** | 73,444 | **** | 73,413 | **** | 0.0% | **** | 73,311 | **** | 0.2% |
^(1)^ Fixed Line, Broadband and Television (Cable & DTH).
^(2)^The number of Pay TV units has been adjusted to the criteria by which we report to the local regulator.
América Móvil Consolidated Results
During the second quarter U.S. dollar interest rates remained as volatile as they had been in the first quarter. With inflationary pressures stronger than anticipated earlier in the year, the reductions of interest rates by the Fed originally expected to take place in the latter part of 2023 appeared increasingly improbable, giving rise to an upward trend in medium and long-term rates throughout the latter half of the quarter that has continued in July.
Second quarter revenue was down 4.6% year-on-year to 203 billion pesos in Mexican peso terms, with service revenue falling 4.2%. As in the prior quarter, this reflected the appreciation of the Mexican peso vs. our other operating currencies in the period. Correcting for foreign exchange effects, service revenue increased 5.0%, a slightly slower pace than that observed the prior quarter.
Service revenue growth continued to advance on the fixed-line platform, moving up to 2.3% at constant exchange rates from 1.8% the prior quarter. On the mobile platform it slowed down to 6.7% from 9.3% the prior quarter.
The improvement of fixed-line service revenue growth was observed in three of our four principal markets: Mexico, Brazil and Austria. In Mexico it was driven by both corporate networks services and fixed-broadband services; in Brazil and Austria by the latter. Importantly, the downward trend of PayTV revenue appears to be coming to an end: in the quarter they were down 1.3%, the lowest decline in several quarters.
The deceleration of mobile service revenue growth stems principally from the normalization of mobile revenue in Brazil exactly a year after the integration of revenue from former Oi mobile clients acquired by Claro. The uplift in terms of revenue growth provided by former Oi clients has come down to 0.8% from 6.4% a year ago. In addition to the above, we also had somewhat slower growth in Mexico and Colombia.
EBITDA was down 3.8% in Mexican peso terms to 78.7 billion pesos in the quarter, representing a 38.9% EBITDA margin. At constant exchange rates it expanded 5.6% in the period, reflecting the greater operating leverage of the company. The reduction in inflation rates we have seen in most countries, as well as the appreciation of most Latam currencies and the euro vis-à-vis U.S. dollar, have recently contributed to this through their impact on costs.
We turned an operating profit of 40.3 billion pesos in the quarter, down 2.8% year-on-year, which helped bring about a 25.9 billion pesos net profit in the quarter, almost doubling that of the year-earlier quarter mostly on account of foreign exchange gains increasing from 4.4 billion pesos in the year-earlier quarter to 14.0 billion pesos. Our net profit was equivalent to 41 peso cents per share or 46 dollar cents per ADR.
In the first six months of the year capital expenditures totaled 64.4 billlion pesos and distributions to shareholders 5.0 billion pesos, including share buybacks in the amount of 3.1 billion pesos and dividends of 2.0 billion. These were partly funded by 2.4 billion pesos in dividends received from KPN and Verizon.
Our net debt excluding leases totaled 358 billion pesos at the end of June—equivalent to 1.43 times LTM EBITDA—having come down by 23.9 billion pesos from the end-of-December figure on the back of the appreciation of the Mexican peso vis-à-vis other currencies, particularly the U.S. dollar. In cash flow terms we reduced our net debt by 3.8 billion pesos in the period.
| América Móvil’s Income Statement Proform^(1)^ Millions of Mexican pesos | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | Jan-Jun 23 | Jan-Jun 22 | Var.% | |||||||
| Service Revenue | 169,206 | 176,569 | -4.2% | 338,259 | 349,418 | -3.2% | ||||||
| Equipment Revenue | 31,103 | 33,614 | -7.5% | 62,336 | 64,198 | -2.9% | ||||||
| Total Revenue^(2)^ | **** | 202,532 | **** | 212,254 | **** | -4.6% | **** | 411,458 | **** | 417,747 | **** | -1.5% |
| Cost of Service | 51,330 | 53,673 | -4.4% | 103,155 | 107,760 | -4.3% | ||||||
| Cost of Equipment | 27,269 | 29,079 | -6.2% | 54,916 | 55,441 | -0.9% | ||||||
| Selling, General & Administrative<br>Expenses | 43,896 | 46,435 | -5.5% | 87,853 | 90,651 | -3.1% | ||||||
| Others | 1,337 | 1,292 | 3.5% | 4,127 | 1,994 | 106.9% | ||||||
| Total Costs and Expenses | **** | 123,833 | **** | 130,479 | **** | -5.1% | **** | 250,050 | **** | 255,846 | **** | -2.3% |
| EBITDA^(3)^ | **** | 78,699 | **** | 81,775 | **** | -3.8% | **** | 161,407 | **** | 161,901 | **** | -0.3% |
| % of Total Revenue | 38.9% | 38.5% | 39.2% | 38.8% | ||||||||
| Depreciation &<br>Amortization | 38,391 | 40,319 | -4.8% | 76,975 | 80,230 | -4.1% | ||||||
| EBIT | **** | 40,308 | **** | 41,456 | **** | -2.8% | **** | 84,433 | **** | 81,671 | **** | 3.4% |
| % of Total Revenue | 19.9% | 19.5% | 20.5% | 19.6% | ||||||||
| Net Interest Expenses | 8,117 | 9,803 | -17.2% | 16,839 | 18,661 | -9.8% | ||||||
| Other Financial Expenses | 8,034 | 12,228 | -34.3% | 12,639 | 18,466 | -31.6% | ||||||
| Foreign Exchange Loss | -14,047 | -4,417 | -218.0% | -27,749 | -26,877 | -3.2% | ||||||
| Comprehensive Financing Cost(Income) | **** | 2,104 | **** | 17,614 | **** | -88.1% | **** | 1,730 | **** | 10,250 | **** | -83.1% |
| Income & Deferred Taxes | 10,085 | 8,519 | 18.4% | 22,762 | 24,129 | -5.7% | ||||||
| Net Income before Minority Interest andEquity Participation in Results of Affiliates | **** | 28,119 | **** | 15,323 | **** | 83.5% | **** | 59,941 | **** | 47,291 | **** | 26.7% |
| Equity Participation in Results of<br>Affiliates | -1,030 | 11 | n.m. | -1,613 | -4 | n.m. | ||||||
| Minority Interest | -1,215 | -1,399 | 13.1% | -2,308 | -2,571 | 10.2% | ||||||
| Net Income from ContinuedOperations | **** | 25,875 | **** | 13,936 | **** | 85.7% | **** | 56,020 | **** | 44,716 | **** | 25.3% |
| Net Income from DiscontinuedOperations | **** | 0 | **** | -252 | **** | 100.0% | **** | 0 | **** | -235 | **** | 100.0% |
| Net Income | **** | 25,875 | **** | 13,683 | **** | 89.1% | **** | 56,020 | **** | 44,481 | **** | 25.9% |
^(1)^ Adjusted to reflect the sale of Panama and the deconsolidation of Claro Chile on account of the new joint venture.
^(2)^ Total Revenue include Other Revenue.
^(3)^ EBITDA figures reflect the sale of towers in Peru and the Dominican Republic. Adjusting for these extraordinary items, the EBITDA for the January-June period decreased -3.1%.
n.m. Not meaningful.
| Balance Sheet - América Móvil Consolidated^(1)^ Millions of Mexican Pesos | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun ‘23 | Dec ‘22 | Var.% | Jun ‘23 | Dec ‘22 | Var.% | ||||||||
| Current Assets | Current Liabilities | ||||||||||||
| Cash, Marketable<br>Securities & Other Short Term Investments | 120,238 | 122,129 | -1.5% | Short<br>Term Debt^(2)^ | 170,960 | 102,024 | 67.6% | ||||||
| Accounts Receivable | 205,124 | 202,027 | 1.5% | Lease-Related Debt | 28,553 | 32,902 | -13.2% | ||||||
| Other Current Assets | 20,871 | 12,853 | 62.4% | Accounts Payable | 141,812 | 165,342 | -14.2% | ||||||
| Inventories | 21,895 | 23,995 | -8.8% | Other Current Liabilities | 217,146 | 188,608 | 15.1% | ||||||
| **** | 368,128 | **** | 361,004 | **** | 2.0% | **** | 558,471 | **** | 488,877 | **** | 14.2% | ||
| Non CurrentAssets | Non Current Liabilities | ||||||||||||
| Plant & Equipment,<br>gross | 1,238,017 | 1,317,191 | -6.0% | Long Term Debt | 318,350 | 408,565 | -22.1% | ||||||
| -Depreciation | 616,873 | 659,965 | -6.5% | Lease-Related Debt | 99,715 | 101,247 | -1.5% | ||||||
| Plant & Equipment,<br>net | 621,144 | 657,226 | -5.5% | Other Liabilities | 180,275 | 181,581 | -0.7% | ||||||
| Rights of Use | 117,147 | 121,874 | -3.9% | **** | 598,341 | **** | 691,393 | **** | -13.5% | ||||
| Investments in Affiliates and Other<br>Investments | 34,438 | 30,957 | 11.2% | ||||||||||
| Deferred Assets | |||||||||||||
| Goodwill (Net) | 137,183 | 141,121 | -2.8% | ||||||||||
| Intangible Assets | 119,615 | 128,893 | -7.2% | Shareholder’s<br>Equity | 416,277 | 437,829 | -4.9% | ||||||
| Deferred Assets | 175,433 | 177,024 | -0.9% | ||||||||||
| Total Assets | **** | 1,573,088 | **** | 1,618,099 | **** | -2.8% | Total Liabilities andEquity | **** | 1,573,088 | **** | 1,618,099 | **** | -2.8% |
^(1)^ The spin-off of Sitios Latinoamérica gave rise to 37.0 billion pesos in new lease-related debt and a similar amount in rights of use of tower assets.
^(2)^ Includes current portion of Long Term Debt.
Mexico
262k wireless adds and 140k new broadband accesses
We gained 262 thousand wireless subscribers in Mexico in the second quarter, most of them prepaid clients, 199 thousand, ending June with 83.2 million subscribers. As for the fixed-line segment, we added 130 thousand RGUs, of which 140 thousand were broadband accesses, marking the best performance—together with the one seen the prior quarter—in six years. At the end of June we had 21.1 million access lines, including 10.3 million broadband accesses.
Fixed-line service revenue +5.6% YoY
Our revenue increased 3.6% year-on-year to 79.6 billion pesos as service revenue rose 6.1%. Mobile service revenue slowed down to 6.4% with both prepaid and postpaid revenue expanding at similar rates. On the fixed-line platform service revenue growth continued to improve, accelerating to 5.6%—its best performance in years, helped along by broadband services and corporate networks, up 7.5% and 13.6%, respectively.
EBITDA +5.1% YoY with the EBITDA margin at 40.9%
EBITDA totaled 32.6 billion pesos, a 5.1% increase from the year-earlier quarter, with the margin increasing slightly to 40.9% from 40.3% a year before.
| INCOMESTATEMENT - Mexico Millions of MxP | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | Jan-Jun 23 | Jan-Jun 22 | Var.% | |||||||
| Total Revenue^(1)^ | **** | 79,617 | **** | 76,844 | **** | 3.6% | **** | 158,066 | **** | 149,203 | **** | 5.9% |
| Total Service Revenue | 62,084 | 58,490 | 6.1% | 123,239 | 115,758 | 6.5% | ||||||
| Total Equipment Revenue | 15,911 | 16,934 | -6.0% | 31,653 | 30,740 | 3.0% | ||||||
| Wireless Revenue | 58,366 | 56,835 | 2.7% | 115,967 | 109,357 | 6.0% | ||||||
| Service Revenue | 42,550 | 39,990 | 6.4% | 84,513 | 78,823 | 7.2% | ||||||
| Equipment Revenue | 15,816 | 16,845 | -6.1% | 31,454 | 30,534 | 3.0% | ||||||
| Fixed Line Revenue | 19,629 | 18,589 | 5.6% | 38,925 | 37,141 | 4.8% | ||||||
| Service Revenue | 19,534 | 18,500 | 5.6% | 38,727 | 36,935 | 4.9% | ||||||
| Equipment Revenue | 95 | 89 | 7.2% | 199 | 206 | -3.7% | ||||||
| EBITDA | **** | 32,563 | **** | 30,978 | **** | 5.1% | **** | 64,662 | **** | 61,283 | **** | 5.5% |
| % total revenue | 40.9% | 40.3% | 40.9% | 41.1% | ||||||||
| EBIT | **** | 24,028 | **** | 22,986 | **** | 4.5% | **** | 47,732 | **** | 45,378 | **** | 5.2% |
| % total revenue | 30.2% | 29.9% | 30.2% | 30.4% |
^(1)^ Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.
| Mexico OperatingData | ||||||
|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | ||||
| Wireless Subscribers(thousands) | **** | 83,243 | **** | 81,364 | **** | 2.3% |
| Postpaid | 14,797 | 14,541 | 1.8% | |||
| Prepaid | 68,447 | 66,824 | 2.4% | |||
| ARPU (MxP) | **** | 172 | **** | 166 | **** | 3.7% |
| Churn (%) | **** | 3.1% | **** | 3.3% | **** | (0.2) |
| Revenue Generating Units (RGUs)^(1)^ | **** | 21,074 | **** | 21,256 | **** | -0.9% |
| Fixed Lines | 10,770 | 11,135 | -3.3% | |||
| Broadband | 10,304 | 10,120 | 1.8% |
^(1)^ Fixed Line and Broadband.
Brazil
632k postpaid net adds and 45k new broadband accesses
In the second quarter we obtained 827 thousand new wireless subscribers—of which 632 thousand were postpaid—to finish the quarter with 83.7 million subscribers. On the fixed-line platform we added 45 thousand broadband accesses while we continued to disconnect PayTV units, 156 thousand. We had 23.5 million RGUs at the end of June.
Service revenue +6.1% YoY
Our second quarter revenue reached 11.3 billion reais and was 7.6% higher than that of the year-earlier quarter, with service revenue expanding 6.1%, down from 9.8% the prior quarter, as mobile revenue growth stabilized following the acquisition of Oi mobile clients a year before. Mobile revenue growth stood at 12.6% in the second quarter, with the revenue uplift attributable to Oi being 0.8%, down from 6.4% in the year-earlier quarter.
Fixed-line service revenue -0.8% YoY
Fixed-line service revenue was nearly flat, -0.8%, its best performance in six years, buoyed by broadband service revenue that expanded 7.5%, also its best showing in several quarters. The long-standing PayTV revenue decline has been tapering off, to -5.1% in the second quarter as compared to -11.2% a year before, which also supported the improved fixed-line revenue-growth figures. The latter reflects progress on both subscriber additions and pricing. Partly offsetting this, corporate networks revenue fell 1.1% in the period.
EBITDA +9.0% YoY
Second quarter EBITDA, 4.6 billion reais, rose 9.0% from a year before as the EBITDA margin reached 41.1% of revenues.
5G coverage in 107 cities
We finished the quarter with 107 cities with 5G coverage, 30 more than in March and continued to lead the market in subscriber growth in the segment. We launched fiber-to-the-home services in 29 new cities during the period to reach 423 cities where we offer ultra-high speed broadband and last generation solutions.
| INCOME STATEMENT - Brazil Millions of BrL | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | Jan-Jun 23 | Jan-Jun 22 | Var.% | |||||||
| Total Revenue^(1)^ | **** | 11,306 | **** | 10,509 | **** | 7.6% | **** | 22,441 | **** | 20,540 | **** | 9.3% |
| Total Service<br>Revenue | 10,802 | 10,179 | 6.1% | 21,456 | 19,884 | 7.9% | ||||||
| Wireless<br>Revenue | 6,396 | 5,560 | 15.0% | 12,607 | 10,596 | 19.0% | ||||||
| Service<br>Revenue | 5,913 | 5,253 | 12.6% | 11,662 | 9,983 | 16.8% | ||||||
| Equipment<br>Revenue | 483 | 307 | 57.2% | 944 | 613 | 54.0% | ||||||
| Fixed Line<br>Revenue | 4,889 | 4,926 | -0.8% | 9,794 | 9,901 | -1.1% | ||||||
| EBITDA | **** | 4,646 | **** | 4,261 | **** | 9.0% | **** | 9,216 | **** | 8,280 | **** | 11.3% |
| % total<br>revenue | 41.1% | 40.5% | 41.1% | 40.3% | ||||||||
| EBIT | **** | 1,573 | **** | 1,473 | **** | 6.7% | **** | 3,100 | **** | 2,807 | **** | 10.4% |
| % total<br>revenue | 13.9% | 14.0% | 13.8% | 13.7% | ||||||||
| ^(1)^ Revenue reflect eliminations derived<br>from both the overlap of fixed and mobile operations as well as international intercompany transactions.<br> <br>Total<br>revenue include other income. | ||||||||||||
| Brazil OperatingData | ||||||||||||
| --- | --- | --- | --- | |||||||||
| 2Q23 | 2Q22 | Var.% | ||||||||||
| Wireless Subscribers(thousands) | 83,671 | 85,735 | -2.4% | |||||||||
| Postpaid | 48,530 | 47,979 | 1.1% | |||||||||
| Prepaid | 35,141 | 37,756 | -6.9% | |||||||||
| ARPU(BrL) | 24 | 22 | 6.5% | |||||||||
| Churn(%) | 2.5% | 3.0% | (0.5) | |||||||||
| Revenue Generating Units (RGUs)^(1)^ | 23,452 | 24,699 | -5.0% |
^(1)^ Fixed Line, Broadband and Television. The number of Pay TV units has been adjusted to the criteria by which we report to the local regulator.
Colombia
356k wireless net adds
We added 356 thousand mobile subscribers—almost half of them postpaid clients—to finish June with 38.4 million wireless subscribers. We also gained 71 thousand fixed-line RGUs including 25 thousand PayTV units and ten thousand broadband accesses, to end the quarter with 9.3 million RGUs, 2.9% more than a year before.
Service revenue +1.2% YoY
Revenue for the second quarter was up 2.8% over the year to reach 3.8 trillion Colombian pesos, with service revenue increasing 1.2% and equipment revenues expanding 6.9%. Mobile service revenue rose 0.6% in the face of weak consumer trends and strong competition. A 3.5% revenue increase from contract clients allowed us to fully offset a 5.3% revenue drop in the prepaid segment resulting from aggressive commercial promotions.
Fixed-line service revenue +2.2% YoY led by corporate networks
On the fixed-line platform service revenue increased 2.2% over the year led by corporate networks services, up 19.6% year-on-year. We continued to face pressure in the broadband segment.
EBITDA +1.3% YoY
EBITDA for the period, 1.6 trillion Colombian pesos, was 1.3% higher than a year before as the EBITDA margin declined marginally to 41.4% of revenue. The EBITDA expansion is a testament to strong discipline in the face of major inflationary pressures affecting the cost base.
| INCOME STATEMENT - Colombia Billions of COP | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | Jan-Jun 23 | Jan-Jun 22 | Var.% | |||||||
| Total Revenue^(1)^ | **** | 3,792 | **** | 3,687 | **** | 2.8% | **** | 7,531 | **** | 7,425 | **** | 1.4% |
| Total Service<br>Revenue | 2,870 | 2,836 | 1.2% | 5,786 | 5,666 | 2.1% | ||||||
| Wireless<br>Revenue | 2,564 | 2,497 | 2.7% | 5,063 | 5,039 | 0.5% | ||||||
| Service<br>Revenue | 1,709 | 1,699 | 0.6% | 3,434 | 3,387 | 1.4% | ||||||
| Equipment<br>Revenue | 856 | 797 | 7.3% | 1,629 | 1,653 | -1.4% | ||||||
| Fixed Line<br>Revenue | 1,185 | 1,162 | 2.0% | 2,397 | 2,332 | 2.8% | ||||||
| EBITDA | **** | 1,569 | **** | 1,549 | **** | 1.3% | **** | 3,115 | **** | 3,155 | **** | -1.3% |
| % total<br>revenue | 41.4% | 42.0% | 41.4% | 42.5% | ||||||||
| EBIT | **** | 800 | **** | 895 | **** | -10.6% | **** | 1,597 | **** | 1,865 | **** | -14.4% |
| % total<br>revenue | 21.1% | 24.3% | 21.2% | 25.1% | ||||||||
| ^(1)^ Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other<br>income. | ||||||||||||
| Colombia OperatingData | ||||||||||||
| --- | --- | --- | --- | |||||||||
| 2Q23 | 2Q22 | Var.% | ||||||||||
| Wireless Subscribers(thousands)^(1)^ | 38,424 | 36,322 | 5.8% | |||||||||
| Postpaid | 10,030 | 9,320 | 7.6% | |||||||||
| Prepaid | 28,394 | 27,002 | 5.2% | |||||||||
| ARPU(COP) | 14,973 | 15,850 | -5.5% | |||||||||
| Churn(%) | 3.4% | 3.5% | (0.1) | |||||||||
| Revenue Generating Units (RGUs)^(2)^ | 9,334 | 9,075 | 2.9% | |||||||||
| ^(1)^ Due to differences in the policy for accounting active subscribers, the figures in this report are different from those published by the Ministry of Communications of Colombia (MinTIC).<br><br><br>^(2)^ Fixed Line, Broadband and Television. |
Peru
78k postpaid net adds
We registered postpaid net additions of 78 thousand in the quarter but disconnected 102 thousand prepaids for a total of 24 thousand net disconnections, ending June with 12.3 million subscribers. On the fixed-line platform we lost 28 thousand RGUs, almost all land-lines, to end the quarter just shy of two million fixed-line RGUs.
Service revenue +4.7% YoY with mobile service revenue +5.5% YoY
Although revenue for the quarter, 1.6 billion soles, was slightly lower than that of a year before because of a drop in equipment revenue, service revenue rose 4.7%. Mobile services increased 5.5% annually as postpaid revenue climbed 6.9% on the back of subscriber gains. Prepaid revenue rose marginally, 0.6%, after several consecutive quarters of declines.
Fixed-line service revenue +2.3% YoY
Fixed-line service revenue grew 2.3% with revenue from corporate networks accelerating its pace to 10.6% on the back of cloud and data centers; broadband revenue was up 4.3%. We continued to make inroads in the corporate segment and secured some relevant IT projects in the quarter.
EBITDA +9.6% YoY supported by higher equipment margins
EBITDA for the period, 564 million soles, was 9.6% higher than that of a year before supported by higher equipment margins and a reduction in bad debt. The EBITDA margin stood at 35.6% of revenue having climbed 3.4 percentage points over the twelve-month period.
| INCOME STATEMENT -Peru Millons of Soles | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | Jan-Jun 23 | Jan-Jun 22 | Var.% | |||||||
| TotalRevenue^(1)^ | **** | 1,584 | **** | 1,599 | **** | -0.9% | **** | 3,999 | **** | 3,195 | **** | 25.1% |
| Total Service<br>Revenue | 1,210 | 1,156 | 4.7% | 2,410 | 2,294 | 5.0% | ||||||
| Wireless<br>Revenue | 1,280 | 1,299 | -1.5% | 2,572 | 2,601 | -1.1% | ||||||
| Service<br>Revenue | 911 | 864 | 5.5% | 1,815 | 1,714 | 5.9% | ||||||
| Equipment<br>Revenue | 369 | 435 | -15.3% | 757 | 887 | -14.7% | ||||||
| Fixed Line<br>Revenue | 299 | 292 | 2.3% | 595 | 580 | 2.6% | ||||||
| EBITDA^(2)^ | **** | 564 | **** | 514 | **** | 9.6% | **** | 1,750 | **** | 1,026 | **** | 70.5% |
| % total<br>revenue | 35.6% | 32.2% | 43.8% | 32.1% | ||||||||
| EBIT | **** | 246 | **** | 219 | **** | 12.4% | **** | 1,094 | **** | 432 | **** | 153.2% |
| % total<br>revenue | 15.5% | 13.7% | 27.4% | 13.5% | ||||||||
| ^(1)^ Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.<br><br><br>^(^^2)^ EBITDA figures<br>reflect the sale of towers. Adjusting for these extraordinary items, the EBITDA for the January-June period increased 11.3%. | ||||||||||||
| PeruOperating Data | ||||||||||||
| --- | --- | --- | --- | |||||||||
| 2Q23 | 2Q22 | Var.% | ||||||||||
| Wireless Subscribers(thousands) | 12,323 | 12,202 | 1.0% | |||||||||
| Postpaid | 5,842 | 5,366 | 8.9% | |||||||||
| Prepaid | 6,480 | 6,836 | -5.2% | |||||||||
| ARPU(Sol) | 25 | 24 | 3.8% | |||||||||
| Churn(%) | 4.5% | 4.3% | 0.2 | |||||||||
| Revenue Generating Units (RGUs)^(1)^ | 1,957 | 1,962 | -0.2% | |||||||||
| ^(1)^ Fixed Line, Broadband and Television. |
Ecuador
128k wireless net adds
Net subscriber gains came in at 128 thousand—22 thousand were postpaids—bringing the mobile base up to 9.3 million. Fixed-line RGUs declined by eight thousand in the period, most of them voice lines, to 615 thousand.
Mobile service revenue +1.6% YoY on the back of postpaid
Second quarter revenue totaled 261 million dollars, 1.9% more than in year-earlier quarter. Service revenue increased 1.4% compared to 3.1% in the prior quarter. The figures reflect the impact from severe rain and floods during the period in parts of the country and certain mobility restrictions in the main cities that resulted from government measures aimed at reducing insecurity. Mobile service revenue grew 1.6% with proceeds from postpaids rising 4.2% on the back of strong subscriber gains. Fixed-line service revenue fell 0.4% in the period.
EBITDA +8.6% YoY
Strong cost controls helped EBITDA growth accelerate to 8.6% from 6.6% in the prior quarter, resulting in 127 million dollars and an EBITDA margin of 48.6%, three percentage points higher than that of a year before.
| INCOME STATEMENT - Ecuador Millions of Dollars | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | Jan-Jun 23 | Jan-Jun 22 | Var.% | |||||||
| Total Revenue^(1)^ | **** | 261 | **** | 256 | **** | 1.9% | **** | 520 | **** | 505 | **** | 2.8% |
| Total Service<br>Revenue | 228 | 225 | 1.4% | 455 | 445 | 2.2% | ||||||
| Wireless<br>Revenue | 234 | 228 | 2.4% | 466 | 450 | 3.5% | ||||||
| Service<br>Revenue | 202 | 198 | 1.6% | 402 | 392 | 2.5% | ||||||
| Equipment<br>Revenue | 32 | 30 | 7.7% | 64 | 58 | 10.5% | ||||||
| Fixed Line<br>Revenue | 27 | 27 | -1.1% | 53 | 55 | -2.3% | ||||||
| EBITDA | **** | 127 | **** | 117 | **** | 8.6% | **** | 250 | **** | 233 | **** | 7.6% |
| % total<br>revenue | 48.6% | 45.6% | 48.2% | 46.1% | ||||||||
| EBIT | **** | 71 | **** | 71 | **** | -0.1% | **** | 140 | **** | 141 | **** | -0.6% |
| % total<br>revenue | 27.2% | 27.7% | 26.9% | 27.9% | ||||||||
| ^(1)^ Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income. | ||||||||||||
| Ecuador OperatingData | ||||||||||||
| --- | --- | --- | --- | |||||||||
| 2Q23 | 2Q22 | Var.% | ||||||||||
| Wireless Subscribers(thousands) | 9,290 | 8,802 | 5.5% | |||||||||
| Postpaid | 2,252 | 2,135 | 5.5% | |||||||||
| Prepaid | 7,039 | 6,668 | 5.6% | |||||||||
| ARPU(US$) | 7 | 8 | -3.3% | |||||||||
| Churn(%) | 3.0% | 3.3% | (0.2) | |||||||||
| Revenue Generating Units (RGUs)^(1)^ | 615 | 582 | 5.6% | |||||||||
| ^(1)^ Fixed Line, Broadband and Television. |
Argentina
For comparison purposes all comments in this section related to annual variations of the presented period for Argentina refer to figures in constant pesoterms, that is, adjusted for inflation in accordance to NIC 29. Information for Uruguay and Paraguay is not presented in the table.
273k wireless net adds and 193k fixed-line new RGUs
Net additions of 273 thousand subscribers in the quarter—70 thousand of them postpaid clients—allowed us to end June with 24.4 million subscribers. We also booked 193 thousand new fixed-line RGUs, almost half of them broadband accesses. Argentina contributed the largest number of broadband net additions outside our home market in the quarter. At the end of June we had 3.0 million RGUs, 39.3% more than a year before.
Service revenue trends have improved
Second quarter revenue totaled 112 billion Argentinean pesos and was down 6.2% annually in real terms (after inflation). Service revenue trends have improved as we posted a 4.5% decline in real terms that compares to -12.0% in the prior quarter and -15.7% in the fourth quarter of last year.
Fixed-line service revenue +15.2% YoY
Mobile service revenue declined 7.8% with sequential improvements in postpaid revenue growth more than compensating steeper declines in prepaid revenue. Although from a smaller base, fixed-line service revenue expanded 15.2% over the prior year as Claro’s fiber roll-out has greatly enhanced customer experience with the introduction of high speed connectivity in a number of cities and towns.
EBITDA was down 8.3% YoY
EBITDA for the period, 44.6 billion Argentinean pesos, was down 8.3% over the year-earlier quarter. The EBITDA margin came in at 39.8%, down 0.9 percentage points from a year before.
| INCOME STATEMENT -Argentin a Millions of Constant ARS as of June 2023 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | Jan-Jun 23 | Jan-Jun 22 | Var.% | |||||||
| TotalRevenue^(1)^ | **** | 111,881 | **** | 119,327 | **** | -6.2% | **** | 227,181 | **** | 245,595 | **** | -7.5% |
| Total Service<br>Revenue | 90,394 | 94,703 | -4.5% | 181,202 | 198,305 | -8.6% | ||||||
| Wireless<br>Revenue | 96,350 | 105,616 | -8.8% | 196,813 | 216,866 | -9.2% | ||||||
| Service<br>Revenue | 74,987 | 81,326 | -7.8% | 151,167 | 170,155 | -11.2% | ||||||
| Equipment<br>Revenue | 21,363 | 24,290 | -12.1% | 45,645 | 46,711 | -2.3% | ||||||
| Fixed Line<br>Revenue | 15,407 | 13,377 | 15.2% | 30,035 | 28,150 | 6.7% | ||||||
| EBITDA | **** | 44,570 | **** | 48,586 | **** | -8.3% | **** | 90,338 | **** | 99,469 | **** | -9.2% |
| % total<br>revenue | 39.8% | 40.7% | 39.8% | 40.5% | ||||||||
| EBIT | **** | 37,403 | **** | 39,434 | **** | -5.1% | **** | 74,990 | **** | 80,288 | **** | -6.6% |
| % total<br>revenue | 33.4% | 33.0% | 33.0% | 32.7% |
^(1)^ Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.
| Argentina Operating Data | ||||||
|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | ||||
| Wireless Subscribers (thousands) | **** | 24,400 | **** | 23,669 | **** | 3.1% |
| Postpaid | 9,291 | 8,998 | 3.3% | |||
| Prepaid | 15,109 | 14,672 | 3.0% | |||
| ARPU(ARS) | **** | 972 | **** | 507 | **** | 91.6% |
| Churn(%) | **** | 1.3% | **** | 1.6% | **** | (0.3) |
| Revenue Generating Units(RGUs)^(1)^ | **** | 2,927 | **** | 2,101 | **** | 39.3% |
^(1)^ Fixed Line, Broadband and Television.
Central America
49k postpaid net adds and 24k new broadband accesses
Altogether we added 49 thousand postpaid subscribers and registered 60 thousand prepaid disconnections, for a total of 16.8 million subscribers at the end of June. On the fixed-line platform we gained 63 thousand RGUs including 24 thousand of both broadband accesses and PayTV units, to finish quarter with 4.8 million RGUs, 5.5% more than a year before.
Service revenue +7.2% YoY
Combined revenue totaled 618 million dollars in the period, up 5.9% annually. Service revenue growth accelerated to 7.2% in the second quarter from 5.3% in the prior one and 3.6% in the fourth quarter of 2022 reflecting improving trends in both the fixed and mobile platforms.
Mobile service revenue +8.8% YoY
Mobile service revenue rose 8.8% with prepaid growing somewhat faster than postpaid. On the fixed-line platform we posted service revenue growth of 4.4% which shows a very significant improvement from the prior quarters, as PayTV revenue expanded 10.1% and those coming from broadband and corporate networks increased 4.4% and 3.5%, respectively.
EBITDA +2.2% YoY
With revenue growth and operational efficiency more than compensating for subscriber acquisition costs, EBITDA rose 2.2% from the year-earlier quarter, to 258 million dollars. The EBITDA margin for the period stood at 41.9% of revenue.
| INCOME STATEMENT^(1)^ - Central America Millions of Dollars | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | Jan-Jun 23 | Jan-Jun 22 | Var.% | ||||||
| Total Revenue^(2)^ | **** | 618 | **** | 583 | **** | 5.9% | **** | 1,221 | **** | 1,151 | 6.0% |
| Total Service<br>Revenue | 535 | 499 | 7.2% | 1,056 | 994 | 6.3% | |||||
| Wireless<br>Revenue | 424 | 396 | 7.2% | 835 | 774 | 7.9% | |||||
| Service<br>Revenue | 352 | 323 | 8.8% | 691 | 640 | 8.0% | |||||
| Equipment<br>Revenue | 73 | 72 | 0.3% | 143 | 133 | 7.4% | |||||
| Fixed Line<br>Revenue | 190 | 183 | 3.7% | 378 | 368 | 2.7% | |||||
| EBITDA | **** | 258 | **** | 253 | **** | 2.2% | **** | 508 | **** | 506 | 0.5% |
| % total<br>revenue | 41.9% | 43.4% | 41.6% | 43.9% | |||||||
| EBIT | **** | 118 | **** | 140 | **** | -15.2% | **** | 239 | **** | 274 | -12.9% |
| % total<br>revenue | 19.2% | 23.9% | 19.5% | 23.8% | |||||||
| ^(1)^ The table reflects the sale of Panama.<br> <br>^(2)^ Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other<br>income. | |||||||||||
| Central America Operating Data(1) | |||||||||||
| --- | --- | --- | --- | --- | --- | ||||||
| 2Q22 | Var.% | ||||||||||
| Wireless Subscribers<br>(thousands) | 16,834 | **** | 16,189 | **** | 4.0% | ||||||
| Postpaid | 2,488 | 2,282 | 9.0% | ||||||||
| Prepaid | 14,346 | 13,908 | 3.2% | ||||||||
| ARPU<br>(US) | 7 | **** | 7 | **** | 2.6% | ||||||
| Churn(%) | 5.8% | **** | 5.9% | **** | (0.0) | ||||||
| Revenue Generating Units<br>(RGUs)(2) | 4,763 | **** | 4,514 | **** | 5.5% | ||||||
| (1) The table reflects the sale of Panama. (2) Fixed Line, Broadband and Television. |
All values are in US Dollars.
Caribbean
47k wireless net adds in the Dominican Republic
Net additions in the mobile segment came in at 47 thousand for the Dominican Republic and 11 thousand for Puerto Rico, whereas on the fixed-line platform the former added just over one thousand RGUs and the latter 15 thousand.
Service revenue +3.1% YoY in the Dominican Republic
Total revenue in the islands came in at 487 million dollars in the second quarter, flat relative to the prior year, with service revenue rising 1.6% in the period. In the Dominican Republic we posted 3.1% service revenue growth as that from mobile increased 3.9% and that from the fixed-line platform 1.9%. Mobile postpaid and fixed-broadband led the expansion, rising 7.4% and 9.8%, respectively. In Puerto Rico service revenue dropped 1.3% with mobile falling 0.6% dragged down by postpaid, and fixed-line revenue declining 2.4% as the growth in broadband and corporate networks revenue failed to compensate for the declines observed in the voice and PayTV segments.
EBITDA +2.5% YoY
EBITDA of 186 million dollars in the quarter was up 2.5% year-on-year and the combined margin was equivalent to 38.1% of revenue. The Dominican Republic posted a 2.1% EBITDA increase in its local currency, while that of Puerto Rico was up 1.8%.
| INCOME STATEMENT - Caribbean Millions of Dollars | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | Jan-Jun 23 | Jan-Jun 22 | Var.% | ||||||
| Total Revenue^(1)^ | **** | 487 | **** | 487 | **** | 0.0% | **** | 1,100 | **** | 960 | 14.6% |
| Total Service<br>Revenue | 435 | 428 | 1.6% | 862 | 844 | 2.1% | |||||
| Wireless<br>Revenue | 309 | 312 | -0.7% | 619 | 618 | 0.1% | |||||
| Service<br>Revenue | 258 | 252 | 2.3% | 513 | 502 | 2.3% | |||||
| Equipment<br>Revenue | 52 | 59 | -13.3% | 106 | 116 | -9.0% | |||||
| Fixed Line<br>Revenue | 180 | 178 | 1.3% | 355 | 346 | 2.5% | |||||
| EBITDA^(2)^ | **** | 186 | **** | 181 | **** | 2.5% | **** | 459 | **** | 360 | 27.5% |
| % total<br>revenue | 38.1% | 37.2% | 41.7% | 37.5% | |||||||
| EBIT | **** | 89 | **** | 95 | **** | -5.5% | **** | 268 | **** | 187 | 43.4% |
| % total<br>revenue | 18.4% | 19.4% | 24.3% | 19.4% | |||||||
| ^(1)^ Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.<br><br><br>^(2)^EBITDA figures reflect the sale of towers. Adjusting for these<br>extraordinary items, the EBITDA for the January-June period increased 3.0%. | |||||||||||
| Caribbean Operating Data | |||||||||||
| --- | --- | --- | --- | --- | --- | ||||||
| 2Q22 | Var.% | ||||||||||
| Wireless Subscribers<br>(thousands) | 7,469 | **** | 7,222 | **** | 3.4% | ||||||
| Postpaid | 2,211 | 2,157 | 2.5% | ||||||||
| Prepaid | 5,258 | 5,065 | 3.8% | ||||||||
| ARPU<br>(US) | 12 | **** | 12 | **** | -2.0% | ||||||
| Churn<br>(%) | 3.1% | **** | 3.0% | **** | 0.1 | ||||||
| Revenue Generating Units<br>(RGUs)(1) | 2,750 | **** | 2,673 | **** | 2.9% | ||||||
| (1) Fixed Line, Broadband and Television. |
All values are in US Dollars.
Austria
261k wireless net adds
Mobile subscriber gains of 261 thousand allowed us to end the quarter with 9.5 million subscribers. This figure comprises 423 thousand mobile WiFi routers. Fixed-line RGUs came down by 25 thousand, of which 14 thousand were land-lines and seven thousand were broadband accesses, and finished June with 2.9 million RGUs.
Service revenue +2.8% YoY with mobile revenue +4.7% YoY
Revenue rose 3.9% year-on-year to reach 702 million euros in the quarter. Service revenue grew 2.8%, somewhat faster than the 1.1% observed the prior quarter partly on account of price adjustments effected during the period. Mobile service revenue increased 4.7% with postpaid revenue rising 5.4% on the back of higher subscriber gains and continued adoption of mobile WiFi routers. In the fixed-line segment, service revenue was 1.5% higher than a year before as the recovery of PayTV and broadband revenue—up 5.9% and 5.0% respectively— which resulted from price reconfiguration and from speeding up the fiber roll-out more than offset the losses of voice revenue.
EBITDA +4.3% YoY
EBITDA was up 4.3% year-on-year to 270 million euros, following top-line growth. The EBITDA margin stood at 38.4% of revenue, 20 basis points higher than a year before.
| INCOME STATEMENT - Austria Millions of Euros | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | Jan-Jun 23 | Jan-Jun 22 | Var.% | |||||||
| Total Revenue^(1)^ | **** | 702 | **** | 676 | **** | 3.9% | **** | 1,379 | **** | 1,340 | **** | 2.9% |
| Total Service<br>Revenue | 620 | 603 | 2.8% | 1,214 | 1,191 | 2.0% | ||||||
| Wireless<br>Revenue | 318 | 302 | 5.2% | 632 | 604 | 4.7% | ||||||
| Service<br>Revenue | 267 | 255 | 4.7% | 524 | 504 | 3.8% | ||||||
| Equipment<br>Revenue | 51 | 47 | 8.2% | 108 | 99 | 9.1% | ||||||
| Fixed Line<br>Revenue | 372 | 362 | 2.8% | 723 | 709 | 2.0% | ||||||
| EBITDA | **** | 270 | **** | 258 | **** | 4.3% | **** | 501 | **** | 503 | **** | -0.3% |
| % total<br>revenue | 38.4% | 38.2% | 36.3% | 37.5% | ||||||||
| Adjusted EBITDA^(2)^ | **** | 286 | **** | 279 | **** | 2.8% | **** | 539 | **** | 544 | **** | -0.9% |
| % total<br>revenue | 40.8% | 41.2% | 39.1% | 40.6% | ||||||||
| EBIT | **** | 132 | **** | 123 | **** | 7.6% | **** | 227 | **** | 229 | **** | -1.0% |
| % total<br>revenue | 18.8% | 18.2% | 16.5% | 17.1% | ||||||||
| For further detail please<br>visit www.al.group/en/investor-relations<br> <br>^(1)^ Total revenue<br>include other income.<br> <br>^(2)^^^Before restructuring charges in Austria and one-off effects. | ||||||||||||
| Austria Operating Data | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| 2Q23 | 2Q22 | Var.% | ||||||||||
| Wireless Subscribers(thousands)^(1)^ | **** | 9,511 | **** | 8,306 | **** | 14.5% | ||||||
| Postpaid | 8,443 | 7,239 | 16.6% | |||||||||
| Prepaid | 1,068 | 1,066 | 0.2% | |||||||||
| ARPU(Euros) | **** | 10 | **** | 11 | **** | -8.1% | ||||||
| Churn(%) | **** | 0.7% | **** | 0.7% | **** | 0.1 | ||||||
| Revenue Generating Units (RGUs)^(2)^ | **** | 2,892 | **** | 2,995 | **** | -3.4% | ||||||
| ^(1)^ Includes Al Digital subscribers.<br><br><br>^(2)^ Fixed Line, Broadband and Television. |
Other European
41k postpaid net adds
Altogether we added 108 thousand mobile subscribers in our Eastern European operations, of which 41 thousand were postpaid. Fixed-line RGUs increased by 53 thousand units in the quarter—almost half were broadband accesses—to reach 3.4 million fixed-line RGUs, up 6.9% year-on-year.
Fixed-line service revenue +17.7% YoY
Revenue for the quarter, 604 million euros, was up 11.0% annually; this was the fastest-growing block amongst our operations. Service revenue growth slowed down to 8.4% from 11.0% the prior quarter as the mobile service revenue growth declined to 5.2% from 9.2%. Revenue on the fixed-line platform jumped 28.3% buoyed by corporate networks revenue that soared 49.9% and that of broadband and PayTV, up 15.0% and 9.0%, respectively.
Bulgaria posted the highest growth both reflecting the acquisition of STEMO in the summer of 2022 which contributed 14 million euros to our revenue base. Belarus, Croatia and Slovenia showed double digit growth of total revenue, in local currency terms.
EBITDA +9.1% YoY
With solid top line growth, EBITDA for the period increased 9.1% to 230 million euros. The margin for the period stood at 38.0% of revenue. We booked double digit growth in Bulgaria, Belarus, Croatia and Serbia in the second quarter.
| INCOME STATEMENT - Other European Millions of Euros | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | Jan-Jun 23 | Jan-Jun 22 | Var.% | |||||||
| TotalRevenue^(1)^ | **** | 604 | **** | 544 | **** | 11.0% | **** | 1,191 | **** | 1,052 | **** | 13.2% |
| Total Service<br>Revenue | 468 | 432 | 8.4% | 917 | 837 | 9.6% | ||||||
| Wireless<br>Revenue | 444 | 417 | 6.5% | 884 | 806 | 9.7% | ||||||
| Service<br>Revenue | 339 | 322 | 5.2% | 666 | 621 | 7.1% | ||||||
| Equipment<br>Revenue | 106 | 95 | 11.0% | 219 | 185 | 18.5% | ||||||
| Fixed Line<br>Revenue | 148 | 115 | 28.3% | 281 | 226 | 24.3% | ||||||
| EBITDA | **** | 230 | **** | 211 | **** | 9.1% | **** | 448 | **** | 409 | **** | 9.4% |
| % total<br>revenue | 38.0% | 38.7% | 37.6% | 38.9% | ||||||||
| EBIT | **** | 123 | **** | 110 | **** | 12.5% | **** | 238 | **** | 211 | **** | 12.9% |
| % total<br>revenue | 20.4% | 20.2% | 20.0% | 20.0% |
For further detail please visit www.al.group/en/investor-relations
^(1)^ Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.
| Other European Operating Data | ||||||
|---|---|---|---|---|---|---|
| 2Q23 | 2Q22 | Var.% | ||||
| Wireless Subscribers (thousands) | **** | 14,975 | **** | 14,969 | **** | 0.0% |
| Postpaid | 12,236 | 12,113 | 1.0% | |||
| Prepaid | 2,739 | 2,856 | -4.1% | |||
| ARPU(Euros) | **** | 8 | **** | 7 | **** | 7.5% |
| Churn(%) | **** | 1.5% | **** | 1.5% | **** | 0.0 |
| Revenue Generating Units(RGUs)^(1)^ | **** | 3,357 | **** | 3,140 | **** | 6.9% |
^(1)^ Fixed Line, Broadband and Television.
| Exchange Rates Local Currency Units per MxP | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q22 | Var.% | Jan-Jun 23 | Jan-Jun 22 | Var.% | |||||||
| Euro | |||||||||||
| End of<br>Period | 0.0639 | 0.0477 | 33.9% | 0.0639 | 0.0477 | 33.9% | |||||
| Average | 0.0614 | 0.0468 | 31.1% | 0.0593 | 0.0451 | 31.7% | |||||
| End of<br>Period | 0.0586 | 0.0500 | 17.1% | 0.0586 | 0.0500 | 17.1% | |||||
| Average | 0.0564 | 0.0499 | 13.1% | 0.0549 | 0.0493 | 11.4% | |||||
| Brazilean Real | |||||||||||
| End of<br>Period | 0.2823 | 0.2621 | 7.7% | 0.2823 | 0.2621 | 7.7% | |||||
| Average | 0.2796 | 0.2453 | 14.0% | 0.2787 | 0.2503 | 11.3% | |||||
| Argentinean Peso | |||||||||||
| End of<br>Period | 15.0363 | 6.2663 | 140.0% | 15.0363 | 6.2663 | 140.0% | |||||
| Average | 13.0796 | 5.8822 | 122.4% | 11.6434 | 5.5335 | 110.4% | |||||
| Colombian Peso | |||||||||||
| End of<br>Period | 245.5061 | 206.5315 | 18.9% | 245.5061 | 206.5315 | 18.9% | |||||
| Average | 250.0440 | 195.2361 | 28.1% | 252.4797 | 192.9216 | 30.9% | |||||
| Guatemalan Quetzal | |||||||||||
| End of<br>Period | 0.4596 | 0.3881 | 18.4% | 0.4596 | 0.3881 | 18.4% | |||||
| Average | 0.4411 | 0.3837 | 14.9% | 0.4295 | 0.3794 | 13.2% | |||||
| Peruvian Sol | |||||||||||
| End of<br>Period | 0.2128 | 0.1916 | 11.0% | 0.2128 | 0.1916 | 11.0% | |||||
| Average | 0.2090 | 0.1872 | 11.7% | 0.2066 | 0.1864 | 10.8% | |||||
| Dominican Republic Peso | |||||||||||
| End of<br>Period | 3.2562 | 2.7541 | 18.2% | 3.2562 | 2.7541 | 18.2% | |||||
| Average | 3.0981 | 2.7555 | 12.4% | 3.0445 | 2.7585 | 10.4% |
All values are in US Dollars.
| Exchange Rates Local Currency Units per | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q22 | Var.% | Jan-Jun 23 | Jan-Jun 22 | Var.% | |||||||
| Euro | |||||||||||
| End of<br>Period | 1.0909 | 0.9538 | 14.4% | 1.0909 | 0.9538 | 14.4% | |||||
| Average | 1.0886 | 0.9388 | 16.0% | 1.0807 | 0.9140 | 18.2% | |||||
| Mexican Peso | |||||||||||
| End of<br>Period | 17.0720 | 19.9847 | -14.6% | 17.0720 | 19.9847 | -14.6% | |||||
| Average | 17.7203 | 20.0400 | -11.6% | 18.2124 | 20.2800 | -10.2% | |||||
| Brazilean Real | |||||||||||
| End of<br>Period | 4.8192 | 5.2380 | -8.0% | 4.8192 | 5.2380 | -8.0% | |||||
| Average | 4.9544 | 4.9166 | 0.8% | 5.0752 | 5.0756 | 0.0% | |||||
| Argentinean Peso | |||||||||||
| End of<br>Period | 256.7000 | 125.2300 | 105.0% | 256.7000 | 125.2300 | 105.0% | |||||
| Average | 231.7741 | 117.8793 | 96.6% | 212.0552 | 112.2200 | 89.0% | |||||
| Colombian Peso | |||||||||||
| End of<br>Period | 4,191.2800 | 4,127.4700 | 1.5% | 4,191.2800 | 4,127.4700 | 1.5% | |||||
| Average | 4,430.8637 | 3,912.5390 | 13.2% | 4,598.2633 | 3,912.4429 | 17.5% | |||||
| Guatemalan Quetzal | |||||||||||
| End of<br>Period | 7.8458 | 7.7561 | 1.2% | 7.8458 | 7.7561 | 1.2% | |||||
| Average | 7.8156 | 7.6893 | 1.6% | 7.8221 | 7.6939 | 1.7% | |||||
| Peruvian Sol | |||||||||||
| End of<br>Period | 3.6330 | 3.8300 | -5.1% | 3.6330 | 3.8300 | -5.1% | |||||
| Average | 3.7042 | 3.7513 | -1.3% | 3.7620 | 3.7807 | -0.5% | |||||
| Dominican Republic Peso | |||||||||||
| End of<br>Period | 55.5900 | 55.0400 | 1.0% | 55.5900 | 55.0400 | 1.0% | |||||
| Average | 54.9000 | 55.2209 | -0.6% | 55.4476 | 55.9416 | -0.9% |
All values are in US Dollars.
Appendix
| Financial Debt of América Móvil(1) Millions | |||
|---|---|---|---|
| Dec -22 | |||
| Peso<br>- denominated debt (MxP) | 106,785 | **** | 97,134 |
| Bonds(2) | 66,205 | 53,554 | |
| Banks and<br>others | 40,580 | 43,580 | |
| U.S. Dollar - denominated debt () | 8,496 | **** | 8,521 |
| Bonds | 8,496 | 8,496 | |
| Banks and<br>others | 0 | 25 | |
| Euro<br>- denominated Debt () | 7,709 | **** | 7,045 |
| Bonds | 6,023 | 6,099 | |
| Commercial<br>Paper | 767 | 125 | |
| Banks and<br>others | 919 | 821 | |
| Sterling - denominated Debt () | 2,200 | **** | 2,200 |
| Bonds | 2,200 | 2,200 | |
| Reais - denominated Debt (BRL) | 8,050 | **** | 10,691 |
| Bonds | 8,050 | 9,050 | |
| Banks and<br>others | 0 | 1,641 | |
| Debt<br>denominated in other currencies (MxP)(3) | 17,685 | **** | 10,220 |
| Bonds | 5,381 | 5,889 | |
| Banks and<br>others | 12,304 | 4,331 | |
| Total Debt (MxP) | 489,310 | **** | 510,589 |
| Cash, Marketable<br>Securities and Short Term Financial Investments (MxP)(4) | 131,719 | 129,110 | |
| Net<br>Debt (MxP) | 357,591 | **** | 381,479 |
All values are in US Dollars.
^(1)^ This table does not include the effect of forwards and derivatives used to hedge our foreign exchange exposure. It includes financial debt of Telekom Austria.
^(2)^ Includes the effect of inflation-linked debt.
^(3)^ Includes Peruvian soles.
^(4)^ Includes fixed income securities.
| Summary CashFlow **** Millions of Mexican pesos | ||||
|---|---|---|---|---|
| Jan-Jun 23 | Jan-Jun 22 | |||
| Funds from Operations | **** | 64,896 | **** | 67,136 |
| Capital Expenditures | 64,448 | 65,578 | ||
| Free Cash Flow^(1)^ | **** | 448 | **** | 294 |
| Dividends and Share Buybacks | 2,596 | 13,144 | ||
| Sale of Ownership Interest | (6,369) | 19,590 | ||
| Net Debt Amortizations | 3,752 | (44,057) | ||
| Amortization of Labor<br>Obligations | 468 | 11,617 |
^(1)^ There are approximately one billion pesos directed to the provisioning to the early retirement plans in Austria that has been substracted from the Free Cash Flow in 2022.
Glossary of Terms
| ARPU | Average Revenue per User. The ratio of service revenue in a given period to the average number of wireless subscribers in the same period. |
|---|---|
| Capex | Capital Expenditure. Accrued capital expenditures related to the expansion of the telecommunications infrastructure. |
| Churn | Disconnection Rate. The ratio of wireless subscribers disconnected during a given period to the number of wireless subscribers at the beginning of that period. |
| EBIT | Earnings Before Interest and Taxes, also known as Operating Profit. |
| EBIT margin | The ratio of EBIT to total operating revenue. |
| EBITDA | Earnings Before Interest, Taxes, Depreciation, and Amortization. |
| EBlTDAaL | Earnings Before Interest, Taxes, Depreciation, and Amortization. Adjusted after lease payments. |
| EBITDA margin | The ratio of EBITDA to total operating revenue. |
| EPS (Mexican pesos) | Earnings per share. Total earnings in Mexican pesos divided by total shares. |
| Earnings per ADR (US$) | Total earnings in U.S. dollars divided by total ADRs equivalent. |
| Cross additions | Total number of subscribers acquired during the period. |
| Licensed pops | Licensed population. Population covered by the licenses that each of the companies manage. |
Glossary of Terms
| LTE | Long-term evolution is a 4th generation standard for wireless communication of high-speed data for mobile phones and data terminals. |
|---|---|
| Market share | A company’s subscribers base divided by the total number of subscribers in that country. |
| MBOU | Megabytes of Use per subscriber. The ratio of wireless data in a given period to the average number of wireless subscribers in that same period. It is presented on a monthly basis. |
| Net subscriber additions | The difference in the subscriber base from one period to another. It is the different between gross additions and disconnections |
| Net debt | Total short and long term debt minus cash and marketable securities. |
| Net debt/<br><br><br>EBITDA | The ratio of total short and long-term debt minus cash and securities to trailing 12-month income before interest, taxes, depreciation and amortization. |
| Prepaid | Subscriber that may recharge a mobile phone. The client does not hold a contract with the company. |
| Postpaid | Subscriber that has a contract for the use of voice and data. |
| SMS | Short Message Service. |
| SAC | Subscriber Acquisition Cost. The sum of handset subsidies, marketing expenses and commissions to distributors for handset activation. Handset subsidy is calculated as the difference between equipment cost and<br>equipment revenue. |
| Wireless penetration | The ratio of total wireless subscribers in any given country divided by the total population in that country. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: July 13, 2023
| AMÉRICA MÓVIL, S.A.B. DE C.V. | |
|---|---|
| By : | /s/ Carlos José García Moreno Elizondo |
| Name: | Carlos José García Moreno Elizondo |
| Title: **** | Chief Financial Officer |