America Móvil — 2023 Form 20-F Summary
Reporting period: Fiscal year ended December 31, 2023. This is an annual report, not a standalone fourth-quarter report; the supplied filing text does not provide clear Q4-only financial results. Financial statements are audited and prepared under IFRS in Mexican pesos (Ps.). U.S. dollar translations are for convenience.
Business context
America Móvil provides wireless, fixed-line, broadband, Pay TV and related services in 22 countries. Mexico and Brazil are its largest markets. At year-end, it reported 310.1 million wireless RGUs, 73.7 million fixed RGUs and 383.8 million total RGUs. The company continued investing in network capacity and 5G; it reported 110,824 cell sites and more than 1.3 million kilometers of fiber-optic network.
Financial performance and liquidity
| Metric | FY 2023 | FY 2022 | Change / context |
|---|---|---|---|
| Operating revenue | Ps.816.0 billion | Ps.844.5 billion | Down 3.4% reported; up 5.1% at constant exchange rates, excluding Argentina |
| Operating income | Ps.167.8 billion | Ps.170.9 billion | Down 1.8%; operating margin was 20.6%, up 0.3 percentage points |
| Net profit from continuing operations | Ps.80.8 billion | Ps.88.2 billion | Down 8.4%; parent-attributable profit was Ps.76.1 billion |
| Operating cash flow | Ps.248.1 billion | Ps.225.3 billion | Up approximately 10.1% |
| Capital expenditure | Ps.156.3 billion | Ps.159.8 billion | Includes plant, property and equipment and license acquisition or renewal |
| Total debt | Ps.500.7 billion | Ps.510.6 billion | Ps.161.0 billion classified as short-term/current |
| Net debt | Ps.385.4 billion | Ps.381.5 billion | Increased slightly |
| Cash and cash equivalents | Ps.26.6 billion | Ps.33.7 billion | Year-end balance |
Commercial, administrative and general expenses were 21.2% of revenue, unchanged year over year; depreciation and amortization were 18.6% of revenue. Net foreign-exchange gains were Ps.14.7 billion, compared with Ps.20.8 billion in 2022. The 2023 loss on derivatives, labor-obligation interest and other financial items was Ps.26.8 billion, including Ps.4.7 billion of impairment of ClaroVTR and Ps.12.2 billion of impairment on notes purchased from the joint venture.
Management said working capital was sufficient for present requirements and expected operating cash generation to meet long-term liquidity needs. Debt and contractual obligations due in 2024 totaled approximately Ps.186.5 billion, including Ps.161.0 billion of debt principal and amortization. The company reported undrawn revolving credit facilities at year-end and compliance with its debt covenants. It paid Ps.30.5 billion in dividends and spent Ps.14.3 billion on share repurchases in 2023.
Material changes versus the prior comparable year
- Reported revenue and profit declined, while revenue increased at constant exchange rates excluding Argentina. Currency translation materially affected comparisons: the Mexican peso strengthened against several operating currencies, and Argentina is accounted for as a hyperinflationary economy.
- Wireless and fixed service revenue grew at constant exchange rates, supported by mobile services, broadband and corporate networks; fixed voice and Pay TV remained weaker. Wireless RGUs rose to 310.1 million, while fixed RGUs increased modestly to 73.7 million.
- Operating expenses decreased in reported pesos but increased at constant exchange rates, reflecting higher energy, maintenance, leasing, IT and logistics costs; cost-saving programs partly offset those pressures.
- 2022 comparative presentation excludes Claro Panama and Claro Chile operations as discontinued operations. Claro Chile is now a 50:50 equity-method joint venture, ClaroVTR. The company also completed sales of tower assets in the Dominican Republic and Peru to Sitios Latam in 2023.
- America Móvil increased its Telekom Austria ownership to 58.4% and Telekom Austria completed a tower-business spin-off into EuroTeleSites, which remains controlled by the group.
Outlook, risks and unusual items
- Investment outlook: The company budgeted approximately U.S.$7.0 billion (Ps.124.4 billion) of capital expenditures for 2024, expected to be funded primarily from operating activities. Shareholders approved a Ps.0.48-per-share dividend for 2024 and authorized up to Ps.15 billion for the April 2024–April 2025 buyback program.
- ClaroVTR: America Móvil and Liberty Latin America agreed to provide additional capital of up to CLP$972.4 billion (approximately Ps.18.7 billion) through June 30, 2024. America Móvil had purchased convertible notes and recorded the impairments described above. Funding, refinancing and the joint venture’s future ownership structure remain relevant to monitor.
- Operating and market risks: Management cites intense competition, regulatory constraints and asymmetric rules in Mexico, spectrum availability, inflation and input-cost pressure, foreign-exchange volatility, technology shifts, and economic and political uncertainty in its markets. Argentina’s hyperinflation and peso depreciation create particular comparability and translation effects.
- Legal and contingent exposures: The filing describes significant tax assessments and litigation, particularly in Brazil, Mexico and Colombia. Some claims are contested and may exceed recorded provisions; outcomes and potential financial effects are uncertain. Regulatory fines and proceedings are also pending in several markets.
- Financial reporting controls: Management concluded internal control over financial reporting and disclosure controls were not effective at December 31, 2023 because of a material weakness in IT general controls at the Colombian subsidiary, involving user access and program-change controls. Management reported no resulting material misstatement and described remediation work that was not yet fully completed and tested. The auditor issued an adverse opinion on internal control but an unqualified opinion on the financial statements.
- Other exposures: The filing identifies cybersecurity, network outages and natural disasters, labor and employee-benefit costs, supplier dependence, climate-related disruption, and related-party transactions as risks.
Important facts for investors to verify
- Whether 2024 operating cash flow, capital spending and debt refinancing are sufficient to manage the Ps.161.0 billion of debt principal and amortization classified as due in 2024.
- Progress and testing of remediation for the Colombian IT-control material weakness, and whether controls become effective in a subsequent reporting period.
- ClaroVTR’s operating performance, further impairment or funding needs, and the effects of the convertible notes and capital commitment.
- Underlying growth and margins by market using constant-currency measures, while accounting for the filing’s exclusion of Argentina from consolidated constant-currency comparisons and for discontinued-operation presentation.
- Developments in material tax assessments, regulatory proceedings and litigation, including the amount of any additional provisions or collateral requirements.