Business Context and Reporting Period
This Form 6-K filing by AMÉRICA MÓVIL, S.A.B. DE C.V. (AMX) is dated January 23, 2025. The report addresses a significant development regarding the Company's internal control over financial reporting (ICFR) for the fiscal year ended December 31, 2023, following an inspection by the Public Company Accounting Oversight Board (PCAOB) of the Company's independent auditor, Mancera S.C. (Mancera/EY).
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures. It explicitly states that, as of the date of the auditor's letter (January 9, 2025), there are no impacts on the Company's consolidated financial statements for the fiscal year ended December 31, 2023. Consequently, the auditor has not withdrawn its audit report on the consolidated financial statements.
Material Changes and Developments
- Withdrawal of ICFR Opinion: Mancera/EY has withdrawn its opinion dated April 29, 2024, regarding the effectiveness of AMX's ICFR as of December 31, 2023.
- Identification of Material Weaknesses: Following a PCAOB inspection, the auditor identified internal control deficiencies related to Teléfonos de México, S.A.B. de C.V., certain subsidiaries, and the wireline business in Mexico. These deficiencies have resulted in material weaknesses in ICFR.
- Ongoing Procedures: The auditor is performing additional procedures that were previously omitted. These procedures may result in the identification of one or more additional material weaknesses in other subsidiaries.
- Regulatory Action: The Company intends to amend its Annual Report on Form 20-F to reflect the auditor's final assessment of ICFR.
Outlook, Risks, and Management Commentary
Management is currently reviewing the auditor's conclusions to form its own assessment of ICFR effectiveness. The Company is in constant communication with Mancera/EY to address concerns and remediate identified deficiencies. The filing includes standard forward-looking statement disclaimers, noting that actual results may differ materially from expectations due to various risks and uncertainties. No specific financial guidance or outlook for future periods is provided in this document.
Investor Verification Checklist
- Verify the status of the amended Form 20-F filing to reflect the withdrawn ICFR opinion.
- Monitor for announcements regarding the completion of additional audit procedures and the potential identification of further material weaknesses.
- Review the Company's remediation plan for the identified internal control deficiencies in the wireline business and subsidiaries.
- Confirm that the consolidated financial statements for the fiscal year ended December 31, 2023, remain unchanged despite the ICFR opinion withdrawal.