Business Context and Reporting Period
Company: América Móvil, S.A.B. de C.V. (NYSE: AMX, AMOV; BMV: AMX)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Fourth Quarter 2024 (ended December 31, 2024)
Filing Date: February 13, 2025
América Móvil reported financial and operating results for Q4 2024. The company surpassed 400 million total access lines, comprising 323 million wireless subscribers and 78 million fixed-line Revenue Generating Units (RGUs). Results reflect the consolidation of Claro-VTR in Chile (from November 1, 2024) and significant accounting adjustments for Argentina due to hyperinflation (IAS 29).
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | YoY Change |
|---|---|---|---|
| Total Revenue (MXN) | 236.9 billion | 200.7 billion | +18.0% |
| Service Revenue (MXN) | 196.3 billion | 164.7 billion | +19.1% |
| EBITDA (MXN) | 91.1 billion | 78.3 billion | +16.4% |
| EBITDA Margin | 38.5% | 39.0% | -50 bps |
| Operating Profit (EBIT) (MXN) | 46.4 billion | 41.8 billion | +11.0% |
| Net Income (MXN) | 9.5 billion | 18.1 billion | -47.5% |
| Net Debt (MXN, excl. leases) | 485.1 billion | 385.4 billion | +25.9% |
| Net Debt / LTM EBITDAaL | 1.44x | N/A | N/A |
| Capital Expenditures (MXN) | 130.8 billion | N/A | N/A |
Note: Revenue and EBITDA growth figures are heavily influenced by the consolidation of Chile and inflationary accounting adjustments in Argentina. Excluding Argentina, service revenue grew 10.7% and EBITDA 8.6% in MXN terms. At constant exchange rates (excluding Argentina), service revenue grew 6.6% and EBITDA 5.1%.
Material Changes vs. Prior Period
- Subscriber Growth: Added 2.1 million postpaid clients (led by Brazil, Colombia, and Mexico) but recorded 1.3 million prepaid disconnections, primarily due to a cleanup of 1.0 million subscribers in Brazil. Total wireless base grew 2.3% YoY.
- Fixed-Line Expansion: Connected 320,000 new broadband accesses, finishing the year with 35 million broadband accesses (+4.7% YoY).
- Profitability Pressure: While EBITDA grew, Net Income fell 47.5% YoY. This decline was driven by a 91.2% increase in comprehensive financing costs (MXN 29.8 billion), nearly half of which were foreign exchange losses due to currency depreciation against the USD.
- Depreciation & Amortization: Increased 22.6% YoY, reflecting the Chilean consolidation, inflationary asset adjustments in Argentina, and amortization of new licenses in Austria and Colombia.
Guidance, Outlook, and Risks
- Shareholder Returns: The company approved an additional MXN 15 billion for its share buyback program (April 2024–April 2025) and authorized the cancellation of treasury shares to reduce capital stock.
- Regulatory Environment: In Mexico, the Federal Telecommunications Institute (IFT) issued new asymmetrical regulations. Management does not expect these to be materially detrimental.
- Macroeconomic Risks: Significant currency volatility impacted results. The Brazilian Real depreciated 13.7% and the Chilean Peso 11.0% against the USD in Q4. Argentina's hyperinflation (118% annualized) necessitates specific accounting treatments that distort nominal growth comparisons.
- Operational Outlook: Management highlighted strong momentum in mobile service revenue in Brazil, Colombia, Ecuador, and Peru. Fixed-line growth is driven by broadband and corporate networks.
Investor Verification Checklist
- Argentina Accounting Impact: Verify the specific magnitude of revenue and EBITDA adjustments due to IAS 29 hyperinflation accounting, as this significantly inflates reported MXN growth.
- FX Sensitivity: Assess the exposure to currency fluctuations, particularly the Brazilian Real and Chilean Peso, given that nearly 50% of financing costs were FX losses.
- Chile Consolidation: Confirm the run-rate contribution of the Claro-VTR acquisition to future quarters, as Q4 only included two months of data.
- Prepaid Cleanup: Monitor the impact of the 1.0 million prepaid subscriber cleanup in Brazil on future revenue stability and churn rates.
- Debt Servicing: Review the sustainability of the 1.44x Net Debt/EBITDAaL ratio given the rising interest rate environment and increased financing costs.