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 a Foreign Private Issuer)
Reporting Period: First Quarter 2026 (Ended March 31, 2026)
Announcement Date: April 23, 2026
América Móvil reported financial and operating results for Q1 2026. The company operates across Latin America and Europe, with major subsidiaries including Telcel (Mexico), Claro (Brazil, Colombia, Peru, Argentina, etc.), and A1 (Austria/Eastern Europe). The reporting period reflects a strategic shift in classifying Fixed Wireless Access (FWA) devices under mobile services rather than fixed-line services.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 | Change (YoY) |
|---|---|---|---|
| Total Revenue | MXN 236.8 billion | MXN 232.0 billion | +2.1% (MXN) / +6.1% (Constant FX) |
| EBITDA | MXN 94.5 billion | MXN 91.0 billion | +3.8% (MXN) / +8.0% (Constant FX) |
| EBITDA Margin | 39.9% | 39.2% | +70 bps |
| Operating Profit (EBIT) | MXN 50.5 billion | MXN 44.8 billion | +12.7% |
| Net Income | MXN 23.4 billion | MXN 18.7 billion | +25.1% |
| Earnings Per Share (MXN) | 0.39 | 0.31 | +25.8% |
| Free Cash Flow | MXN 3.3 billion | (MXN 0.4 billion) | Positive vs. Negative |
| Net Debt | MXN 437.0 billion | MXN 447.5 billion | -10.5 billion |
| Net Debt / LTM EBITDA | 1.41x | N/A | N/A |
Material Changes vs. Prior Period
- Subscriber Growth: Added 3.0 million net wireless subscribers (all postpaid), offset by 90,000 prepaid disconnections. Total wireless base reached 334.5 million. Fixed-line broadband accesses grew by 594,000.
- Revenue Drivers: Service revenue grew 4.6% at constant exchange rates, driven by mobile service revenue (+6.4% YoY). Equipment revenue surged 11.3% at constant rates.
- Profitability Expansion: Operating profit grew 12.7% in MXN terms, outpacing revenue growth due to operating leverage. Net income jumped 25.1% aided by a 9.9% reduction in comprehensive financing costs.
- Regional Highlights:
- Brazil: Added 1.3 million postpaid subscribers; mobile service revenue +7.8%.
- Colombia: Mobile service revenue +10.2% (fastest in 10 years); EBITDA +11.6%.
- Argentina: Reported in constant pesos (IAS29); EBITDA +15.4% YoY.
- Southern Cone: Revenue +25.0% YoY, heavily influenced by a one-time TV rights settlement in Chile.
Guidance, Outlook, and Risks
- Capital Allocation: The Board proposed an ordinary dividend of MXN 0.54 per share and allocated an additional MXN 10 billion to the share-buyback fund for the April 2026–April 2027 period.
- Acquisitions: Announced an agreement to acquire approximately 73% of Desktop S.A. in Brazil to strengthen presence in São Paulo. Closing is subject to regulatory approval (CADE, ANATEL).
- Operational Risks:
- Regulatory: Mexico is undergoing a client registration process mandated by the Digital Transformation Agency, causing temporary prepaid disconnections.
- Geopolitical/Economic: Management noted market concerns regarding a potential U.S. economic slowdown and inflation, alongside currency volatility (MXN appreciated significantly vs. USD).
- Argentina: Continued hyperinflationary environment requires IAS29 reporting adjustments.
- Unusual Items: Q1 2026 results included MXN 2.3 billion in "Other Revenue" (up 107.9%), largely due to a favorable legal ruling regarding TV rights in Chile.
Investor Verification Checklist
- FX Impact: Verify the impact of the strong Mexican Peso (up ~16% vs. USD) on reported MXN figures versus constant currency growth.
- Argentina Reporting: Confirm understanding of IAS29 inflationary accounting adjustments for Argentina figures, which are excluded from constant currency comparisons.
- FWA Reclassification: Note the change in methodology where Fixed Wireless Access is now classified as mobile service, affecting historical comparisons for fixed-line broadband.
- One-Time Gains: Assess the sustainability of EBITDA growth in the Southern Cone block, which was boosted by a litigation settlement in Chile.
- Desktop Acquisition: Monitor regulatory approval status for the Desktop S.A. acquisition in Brazil.