AMX

Business Context and Reporting Period

Company: América Móvil, S.A.B. de C.V.
Filing Type: Form 6-K (Report of a Foreign Private Issuer)
Reporting Period: Six months ended June 30, 2025 (Unaudited)
Filing Date: September 19, 2025

América Móvil is a leading telecommunications provider in Latin America and Europe, operating in 23 countries under brands including Telcel, Telmex, and Claro. As of June 30, 2025, the company reported 325.7 million wireless subscriptions and 78.5 million fixed revenue generating units (RGUs). The report includes the consolidation of Claro Chile, SpA, which was converted from a joint venture to a consolidated subsidiary in late 2024.

Key Financial Metrics

Note: USD figures are provided for convenience based on an exchange rate of Ps. 18.8928 to $1.00.

Material Changes vs. Prior Period

• Revenue Growth: Total operating revenues increased 13.9% year-over-year. At constant exchange rates, revenue grew 6.3%, or 3.8% excluding the impact of consolidating Claro Chile.
• Profit Surge: Net profit tripled to Ps. 43.3 billion, driven primarily by a reversal in foreign currency exchange results (a Ps. 9.8 billion gain in 2025 vs. a Ps. 33.8 billion loss in 2024) due to the appreciation of the Mexican peso against the U.S. dollar.
• Cost Pressures: Operating costs and expenses rose 15.2%, outpacing revenue growth. Depreciation and amortization increased 17.9% due to site lease payments and network investments in Colombia and Austria.
• Segment Performance:
  • Argentina: Reported significant growth in adjusted operating income (+24.3%) and margin (36.2%) due to hyperinflationary accounting adjustments and strong service growth.
  • Central America: Adjusted operating income surged 48.5%, recovering from a cybersecurity incident in the prior year that limited billing and activations.
  • Mexico Fixed: Adjusted operating margin collapsed to 0.04% from 4.0% due to rising network maintenance and IT costs.
  • Chile/Paraguay/Uruguay: Reported an operating loss of Ps. 4.5 billion, though margins improved slightly compared to the prior period.

Guidance, Outlook, and Risks

Management Commentary: Management attributes the strong net profit primarily to favorable foreign exchange movements rather than operational margin expansion. The company continues to execute cost savings programs and invest in network infrastructure, particularly in Colombia and Austria. Share repurchases of Ps. 8.7 billion were conducted in the first half of 2025.

Risks and Contingencies:

• Currency Volatility: Results are heavily influenced by exchange rates between the Mexican peso and operating currencies (USD, Euro, Brazilian Real, Argentine Peso).
• Hyperinflation: Argentina's operations are subject to IAS 29 accounting standards, creating unusual effects on consolidated figures due to currency devaluation.
• Regulatory and Political: Risks include government policies, inflation rates, and regulatory developments in Mexico, Brazil, Argentina, and Europe.
• Debt Structure: Approximately 78.2% of indebtedness is denominated in non-Mexican peso currencies, exposing the company to currency risk despite hedging activities.

Investor Verification Checklist

• FX Impact: Verify the extent to which the 205% net profit increase is driven by foreign exchange gains rather than core operational performance.
• Argentina Accounting: Review the specific impact of IAS 29 hyperinflationary adjustments on the Southern Cone (Argentina) segment results.
• Chile Consolidation: Assess the long-term financial impact of the full consolidation of Claro Chile, SpA, which significantly altered revenue and cost bases.
• Debt Maturity: Examine the Ps. 154.2 billion in debt and obligations due in 2026 to evaluate near-term liquidity requirements.
• Mexico Fixed Margins: Investigate the drivers behind the near-zero adjusted operating margin in the Mexico Fixed segment and the sustainability of cost increases.