AMX

Business Context and Reporting Period

Company: América Móvil, S.A.B. de C.V. (America Móvil)
Filing Type: Form 6-K (Report of a Foreign Private Issuer)
Reporting Period: Nine months ended September 30, 2025 (unaudited)
Business Overview: América Móvil is a leading telecommunications provider in Latin America and Europe, operating in 23 countries. As of September 30, 2025, the Company reported 328.8 million wireless subscriptions and 78.9 million fixed Revenue Generating Units (RGUs). Major operations are concentrated in Mexico and Brazil.

Key Financial Metrics

*USD amounts translated at Ps. 18.3825 to U.S.$1.00 (rate as of Sept 30, 2025).

Material Changes vs. Prior Period

• Revenue Growth: Operating revenues increased 10.5% (Ps. 66.5 billion) compared to the first nine months of 2024. At constant exchange rates, revenue grew 6.2% (3.7% excluding the consolidation of Claro Chile).
• Profit Surge: Net profit increased 207.4% to Ps. 67.7 billion. This dramatic increase was primarily driven by a reversal in foreign currency results: a net gain of Ps. 16.1 billion in 2025 versus a net loss of Ps. 58.4 billion in 2024, attributed to the appreciation of the Mexican peso against the U.S. dollar.
• Operating Income: Increased 6.4% to Ps. 142.3 billion. Operating margin decreased slightly to 20.4% from 21.1% in the prior year.
• Costs: Total operating costs and expenses rose 11.6%, driven by network maintenance, IT services, and energy costs. Depreciation and amortization increased 13.1%.
• Segment Performance:
  • Central America: Operating income surged 92.2%, recovering from a cybersecurity incident in the prior year.
  • Brazil: Operating income increased 19.7% due to cost controls and postpaid growth.
  • Chile: Full consolidation of Claro Chile (100% ownership achieved in July 2025) significantly impacted segment revenue comparisons.

Outlook, Risks, and Unusual Items

• Claro Chile Consolidation: The Company acquired 100% of Claro Chile SpA in July 2025. Financial measures presented in the filing often exclude Claro Chile results to provide a clearer view of organic performance, constituting a non-IFRS measure.
• Foreign Exchange Volatility: Results are heavily influenced by currency fluctuations, particularly the Mexican peso vs. the U.S. dollar and the hyperinflationary environment in Argentina (IAS 29). Argentina is excluded from constant currency comparisons.
• Capital Allocation: The Company spent Ps. 10.8 billion on share repurchases during the period. A dividend of Ps. 0.52 per share was approved, payable in two installments.
• Debt Management: The Company issued a €650 million bond in September 2025 and reopened its Global Peso-Denominated Notes Program. Net debt decreased to Ps. 453.6 billion from Ps. 484.2 billion at year-end 2024.
• Risks: Key risks include economic and political conditions in operating countries (Mexico, Brazil, Argentina), regulatory developments, inflation, and competitive pressures in the telecommunications sector.

Investor Verification Checklist

• FX Impact: Verify the sustainability of the net profit increase, which was largely driven by a one-time favorable foreign currency exchange swing rather than core operational margin expansion.
• Claro Chile Integration: Assess the long-term financial impact of the full consolidation of Claro Chile and the associated goodwill and integration costs.
• Argentina Exposure: Review the specific accounting treatment for Argentina under IAS 29 (hyperinflation) and its impact on reported assets and liabilities.
• Debt Maturity Profile: Confirm the Company's ability to service debt given the significant portion (approx. 75%) denominated in currencies other than the Mexican peso.
• Constant Currency Growth: Distinguish between reported growth and constant currency growth (6.2%) to understand underlying operational performance.