América Móvil (AMX) Q3 2026 Earnings Call Transcript

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DATE

Wednesday, Oct. 21, 2026

CALL PARTICIPANTS

• Head of Investor Relations - Daniela Lecuona Torras
• Chief Executive Officer - Daniel Hajj Aboumrad
• Chief Financial Officer - Carlos Jose Garcia Moreno Elizondo
• Chief Operating Officer - Oscar Von Hauske Solís

TAKEAWAYS

• Revenue -- MXN 251 billion, representing a 7.6% year-over-year increase driven by service revenue gains and currency movements.
• EBITDA Margin -- 40.8%, up 0.5 percentage points compared to the year-earlier quarter.
• Postpaid Subscriber Additions -- 3.1 million total, led by gains of 348,000 in Colombia and 343,000 in Brazil.
• Broadband Accesses -- 390,000 new connections, with mobile postpaid and fixed broadband remaining the primary drivers of customer growth.
• Mobile Service Revenue -- 6.3% growth at constant exchange rates, consistent with the pace of previous quarters.
• Postpaid Service Revenue -- 7.5% growth at constant exchange rates, driven by accelerated growth in Mexico, Brazil, and Colombia.
• Net Debt -- MXN 400 billion excluding leases, reflecting a reduction of MXN 34 billion in cash flow terms.
• Capital Expenditures -- 676 billion pesos for the first nine months of the year, fully funded by internal cash flow.
• Net Debt to EBITDA Ratio -- 1.21 times after leases, down from 1.51 times at the end of 2025.
• Shareholder Distributions -- MXN 27 billion distributed through share buybacks and dividends during the first nine months.
• Mexico Postpaid Revenue -- 8% growth, supported by customers migrating to higher-value plans and 5G network adoption.
• Colombia Postpaid Revenue -- 12% growth, reflecting early 5G investment and strong customer retention.
• Brazil Postpaid Revenue -- 8.5% growth, benefiting from a stabilizing competitive environment and promotional strategies.
• Chile Postpaid Revenue -- 11.5% growth, contributing to overall service revenue acceleration in the region.
• Central America Service Revenue -- 11.4% growth, with the region delivering 16.1% EBITDA growth.
• Prepaid Disconnections -- 5 million net losses, primarily reflecting subscriber base cleanups in Mexico and Colombia.
• Mexico Broadband Fiber Connection -- 94% of the customer base now connected with fiber, supporting increased broadband revenue.
• Desktop Acquisition Valuation -- BRL 4 billion, with the transaction expected to close and be accounted for in the fourth quarter.
• Annual CapEx Guidance -- $7 billion projected for 2026 and 2027, with management reporting no major changes in spending plans.
• Pay TV Additions -- 50,000 units, with Eastern Europe and Central America accounting for the majority of the growth.
• Labor Obligations -- MXN 15 billion reduction during the third quarter.
• Argentina Postpaid Additions -- 126,000 subscribers, supported by network quality and 5G spectrum deployment.

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RISKS

• Hajj stated, "Maybe in the short term, we can have, like, a slowdown a little bit on the revenues on prepaid," due to the subscriber registration mandate in Mexico.
• Garcia Moreno indicated that comprehensive financing costs increased because of "foreign exchange losses of 3.6 billion pesos in the period compared to foreign exchange gains in the prior year."

SUMMARY

América Móvil, S.A.B. de C.V. (NYSE:AMX) reported increased revenue and expanding EBITDA margins driven by sustained postpaid subscriber growth across its primary Latin American markets. Management reported that the company remains focused on migrating its broadband customer base to fiber-to-the-home and expanding its 5G footprint, particularly in Mexico and Colombia. The company stated that its leverage ratio has reached 1.21 times, comfortably within its target range of 1.2 to 1.5 times, while maintaining significant shareholder distributions and reducing net debt. Strategic initiatives for the coming months include the integration of the Desktop acquisition in Brazil and the continued implementation of artificial intelligence platforms to optimize operational costs.

• CEO Hajj stated, "I can tell you that on the customers that are coming to renew their plan in our customer care centers, half of them are moving to a better plan."
• Management reported that 94% of Mexican broadband customers are now connected via fiber, which has supported revenue growth even during subscriber cleanups.
• The company expects to complete the BRL 4 billion Desktop acquisition in Brazil after the turn of the year, targeting synergies between its mobile base and the new fiber footprint.
• Hajj noted that artificial intelligence platforms are helping the company "contact the customer faster and solve the problem faster" in call centers and network maintenance.
• CFO Garcia Moreno confirmed that the company's leverage ratio is intended to remain within a range of 1.2 to 1.5 times through 2028 to accommodate M&A and shareholder returns.
• Management reported that 5G network coverage is serving as a significant differentiator in Mexico and Colombia, driving migration from prepaid to postpaid plans.
• The company noted that centralizing costs and implementing efficiencies in Central America led to 16.1% EBITDA growth in that regional block.

INDUSTRY GLOSSARY

• ARPU: Average Revenue Per User, a metric used to measure the revenue generated per subscriber unit per month.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's overall financial performance and operational efficiency.
• Fiber-to-the-home (FTTH): The installation and use of optical fiber from a central point directly to individual buildings to provide high-speed internet access.
• MVNO: Mobile Virtual Network Operator, a company that provides mobile phone services but does not own the wireless network infrastructure it uses.
• Quad-play: A service bundle that includes broadband internet, television, telephone, and wireless service.

Full Conference Call Transcript

Operator: Good morning. My name is Caleb, and I will be your conference operator today. At this time, I would like to welcome everyone to the America Movil Third quarter 2026 conference call and Webcast. All lines have been placed on mute to prevent background noise. After this speaker's remarks, there will be a question and answer session. Simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I will now turn the call over to miss Daniela Lecuona, head of investor relations.

Daniela Lecuona Torras: Good morning, everyone. Thank you so much for joining us today to discuss our third quarter financial and operating results. We have on the line, Mr. Daniel Hajj, CEO; Mr. Carlos Garcia Moreno, CFO; and Mr. Oscar Von Hauske, COO.

Daniel Hajj Aboumrad: Thanks, Daniela. Welcome, everyone. Thanks for being here in the third quarter of 2026 conference call. Carlos is going to make a summary of the results.

Carlos Jose Garcia Moreno Elizondo: Thank you, Daniela. Good morning, everyone. Well, we had the third quarter with all prices. Oil prices rising to a new peak in mid September for as long as per barrel of WTI crude. Long term inflation expectations were duly affected, pushing up to the top. With the yield on 10-year treasury notes accelerating its gains from the low, but These factors, together with a particularly strong nonfarm payrolls report for that month, that exceeded expectations. With the main drivers of the Fed's decision on September 16, to increase its policy rate by 25-basis-points. The higher rates in the US supported a recovery of the dollar versus some currencies in our region of operations.

The Mexican peso gave up in September. All the gains it had posted versus the dollar in the first 2 months of the quarter, to end the period down approximately 2.1%. The Colombian peso managed to gain 3% in spite of this, while the Brazilian real and the euro remained practically unchanged over the quarter. In the third quarter, we added 3.1 million postpaid subscribers roughly the average of the prior 4 quarters. Brazil led the way with 343 thousand Telecom and 43 thousand. Colombia followed with 348 thousand Peru with 229 thousand Mexico with 144 thousand and Argentina with 126 thousand subscribers.

In the prepaid segment, we recorded 5 million net disconnections primarily reflecting subscriber based cleanups in Mexico and Colombia. Notwithstanding the cleanups, we managed to post net prepaid subscriber gains in Eastern Europe, Argentina, Central America, Ecuador, that totaled 745 thousand subscribers. In the fixed line segment, we connected 390 thousand new broadband accesses. Brazil was the main contributor with 94 thousand additions, followed by Colombia with 67 thousand and Argentina with 63 thousand. Pay TV net additions totaled 50 thousand units, with Eastern Europe and Central America accounting for most of the growth. Mobile postpaid and fixed broadband accesses remain the main drivers of customer growth. Increasing 8.9%, 5.6%, respectively, compared to the year earlier quarter.

América Móvil third quarter revenue totaled MXN 251 billion, 7.6% year on year increase, with EBITDA reaching a 40.8% margin. 0.5 percentage points increase from a year before. A constant exchange rate the service revenue was up 5.3% and EBITDA 6.7%. EBITDA continued to grow faster than service revenue. Service revenue growth resulted from mobile service revenue increasing 6.3%, very much in line with the pace of the service prior to 3.7% from 2.7% in the prior quarter. The mobile platform, postpaid service revenue increased 7.5% year on year, at constant exchange rates also very similar to that of the prior 4.3%.

Slightly less rapidly than the pace of the preceding quarter, but very much in line with the prior quarters. Postpaid revenue growth accelerated in Mexico, Brazil, and Colombia to 8%, 8.5%, and 12%, respectively. Growth rates in Chile and Peru also moved up 11.5% and 7.5%, respectively. Operating profit for prepaid service revenue growth was generated in Mexico, partly reflecting the subscriber registration process mandated by the regulator, as well as in Brazil and Austria, but accelerated in Eastern Europe, Central America, the Caribbean, and the. Operating profit totaled ARS 57 billion, up 13.9% from the year earlier quarter. Outpacing EBITDA growth as depreciation and amortization charges rose only 3%.

Although net interest expenses were down 11.2% year on year, our comprehensive financing cost increased as a result of foreign exchange losses of 3.6 billion pesos in the period compared to foreign exchange gains in the prior year. We posted a net profit of MXN 24 million in the quarter, 7% higher than in the year-earlier quarter bringing our year to date net income to 72 billion. In the 9 months to September, our capital expenditures totaled 676 billion pesos. They were fully funded by our cash flow, which also enabled us to reduce net debt, in cash flow terms by MXN 34 billion distribute MXN 27 billion to our shareholders by way of share buybacks and dividends.

Our labor obligations came down by MXN 15 billion in the quarter. Our free cash flow was 41% higher than that of 2025, which in turn had been 47% greater than that of the year before. And which year of the customer went to the reduction of our network. Such that at the end of the quarter, our net debt stood at MXN 400 billion excluding leases. It was equivalent to 1.21x net debt to EBITDA after leases down from 1.51x at the end of 2025. So, with this,, I will pass the floor back to Daniela so that we can begin the Q&A session.

Daniel Hajj Aboumrad: Thank you. Thank you, Carlos. And we can start with the Q&A.

Operator: At this time, I would like to remind everyone in order to ask a question, please press star then the number 1 on your telephone keypad. Your first question comes from the line of Marcelo Santos with JPMorgan. Line is open. Please go ahead.

Marcelo Santos: Hi. Good morning. Thanks for taking my questions. I think the first question I wanted to approach is the M&A pipeline and outlook for buybacks. It think in the Investor Day in New York, you mentioned that was a priority. I want to know how is that pipeline if there is room to increase in buybacks, you know, we have been increasing so far, but I wanted to get a better feeling about the outlook there. And the second question is about Mexican broadband. I think there are a couple of different moving parts. I mean, this was a quarter where you.

The net adds were much lower than in previous quarters, so I just wanted to understand what is happening there. But at the same time, the revenue growth was much stronger than in previous quarters. So just want to understand the. These moving parts in Mexican broadband. Thank you very much.

Carlos Jose Garcia Moreno Elizondo: Yes, thank you, Marcelo. you were mentioning the Investor Day where we provided guidance, well, on for the period 2026 to 2028. Right? Here, what we stated a leverage ratio that we intended to remain within, which was 1.5 to 1.4x, 1.2x to 1.5x, which is basically where we have been And we said this had also to accommodate the share buyback with the with all the distributions. Plus the M&A. In this quarter, we are going to have an important, amount that we have to collect in the M&A front, which is the consolidation of desktop.

As you know, we valued that, we have announced, started at BRL 1.4 billion that although we still have not completed the tender offer, but should be completed probably just after the turn of the year. But for the most part, that most of that BRL 4 billion will be accounted for in the last quarter. And then also we have the last payment of dividends, which will take place in a couple of weeks, 2-3 weeks. Which is in the neighborhood of 17 billion pesos. Okay. So those are the things that we have in the immediate, in the immediate time, not the immediate period.

But as I said, the guidance that we provided is, for the-- for the next, for the overall, for the next 2 years as well. And we do not have anything more in the M&A pipeline, other than the acquisition in Peru that is waiting for regulatory approval likely to be received until the second half of the year. And we do not have anything else on M&A.

Daniel Hajj Aboumrad: On Colombia. On Colombia, we think that it could be at the end of this year. So, and on the Mexico broadband, Oscar can talk a little bit more, but I can tell you that we have been growing well the last quarters. And what we did this last quarter, we cleaned a little bit also our base. People who follow us know, not consuming, not paying, or not consuming, and we cleaned it up. So that is the reason why revenues are increasing and net adds are not as previous quarters.

Oscar Von Hauske Solís: I do not know what is going on. It is what he is saying, I will add that we increase the speed of all the customer base. To be more competitive in the market. And we are focused more in churn as well and upselling the customer base that is why we had a good increase in revenues and we have. What percentage of already in fiber? 94% of the customers are already connected with fiber.

Marcelo Santos: Okay. Okay. Very clear. Thanks very much.

Operator: Thank you, sir. Thank you, sir. Your next question comes from the line of Phani Kumar Kanumuri with HSBC. Your line is open. Please go ahead.

Phani Kumar Kanumuri: Thanks for taking my questions. The first question is on Argentina. You seem to have a very strong momentum there. But also, there is a new operator now that telecom Argentina has divested assets. So how are you seeing the competitive scenario there, and what do you expect from this new competition in Argentina? The second question is more accounting related. In your cash flow statements, I observed that your taxes that you paid this year are lower than last year in the first 9 months. Could you please specify what is driving it? Are you seeing better realization from these taxes? Thank you.

Daniel Hajj Aboumrad: Talking a little bit about Argentina. Well, yes, I think it was a very good quarter for Argentina. We have been investing for a long time. We have a very good 5G network. We have also a lot of broadband. The telephonic and telecom has merged. I think, they already approved it, but they have been we know that since maybe 1 year. So I think it is a good market. The economy is improving. Things are going well with us. We are taking at advantage on that. So we have good quality, good networks, good distribution. A very good data center for corporate businesses, and that is the reason why we are growing there. Okay.

Carlos Jose Garcia Moreno Elizondo: And on the question of the taxes paid, they basically have to do, you know, partly with some monies that we received back from the tax authorities in some countries, like, out of Mexico. Partly something having to do with some limited measures that we have done. And then something having to do basically with the cash flow during the year, how much you pay for the year besides how much you pay in the annual amount?

So whenever you have paid it, too much, during the year, based on the formula that we have in different countries, and I think this is the most important thing, Then at the moment that you present your annual returns, then you basically get some credit back. Okay? So that is. It basically has to do with that.

Daniel Hajj Aboumrad: And adding a little bit more in Argentina, so we are. there is the. They approved the merge, and the remedies, we understand that there is a newco called Metrotel. They are going to move 6 million subscribers. there is only there is not gonna be a new network. it is like an. I think it is going to be like an MVNO. 200 thousand broadband subscribers, and they have to do it in 18 months. So well, there is a lot of things going on in Argentina, but we are well-prepared to still grow and that we are good in corporate business.

We have a very good fiber network, doing well in broadband and in 5G and the spectrum and the network also quality, we are doing okay. So let's see what is going to happen. Yeah.

Phani Kumar Kanumuri: Thanks for answering my questions.

Operator: Thank you. Your next question comes from the line of Walter Piecyk with LightShed. Your line is open. Please go ahead.

Walter Piecyk: Thanks. What do you guys expect Televisa to do differently after they buy. Or if they complete the purchase of the AT&T assets in Mexico.

Daniel Hajj Aboumrad: Well, difficult to say. I think AT&T was a stronger competitor to a lot of things. Well, it is 1 of the biggest companies in the US. And do a lot of things in Mexico. I think Televisa is also gonna be a strong competitor. We think that is what is going to happen. But at the end of the day, we need to do what we have been doing for a long time. We need to have a vision. Telcel is a very strong brand in Mexico. So all of that, we need to follow that and still do what we have been doing.

We do not know exactly what they are going to do, what they are going to change,, or what is going to be their strategy. Let's see what is going to happen when they authorize and take the operation of the company. But as I told you, AT&T used to be. Was a-- is a strong competitor. And I am sure that Televisa is going to be also a strong competitor. So we still need to do what we have been doing reinforce our investment, train our people, more salespeople, more distributors, all of that. We have to still focus on that and do what we have been doing for the last years.

Walter Piecyk: And then, I guess, Carlos, on CapEx, I think in the past, you have cited currency moves having an impact on CapEx. But given the more recent currency move, of the dollar recovering, does that give you more room to change CapEx there? Or is $7 billion the number? Or, like, how do you-- what type of moves, I guess, in currency do you see having an impact? See. Yeah. Go ahead. I am sorry.

Daniel Hajj Aboumrad: No. Sorry. What you see this year, Steve, we have a less CapEx, and it is exactly because what you are saying. We give CapEx in dollars to the subsidiaries and then the movement of the currencies make that we have less CapEx in pesos. So at this time, we do not need to move the CapEx, to do more. Some countries are exceeding a little bit their budgets. Other ones, they are not exceeding. So we, all overall, we said $7 billion, 5% plus or 5% less,, and it is where we are. And I think for next year, we are going to have the same, $7 billion, something like that. And we are still making.

I do not know if we need to do a little bit more or a little bit less. We have not finished our budget, but no major changes in CapEx. So that is what we have been doing. what we-- okay-- project for next year.

Walter Piecyk: Great. Thanks, Daniela. Appreciate it.

Operator: Thank you. Just a reminder, if you would like to ask a question, please press star then the number 1 on your telephone keypad. Your next question comes from the line of Gustavo Farias with UBS. Your line is open. Please go ahead.

Gustavo Farias: Hi, everyone. Thanks for taking my questions. So 2 on my end, on Brazil competition, So we have seen Brazil mobile trends, improving this quarter. Do you believe the competitive environment is stabilizing or promotional pressures are still increasing? And my second 1 on Convergent Offers, In Brazil, we have seen mobile service revenue accelerating. But fixed service revenue has slowed down. So, my question is, as convergence becomes more relevant do you believe investors should focus more on the total service revenue and not, maybe, only on Or more focused on mobile service revenue alone. Thank you.

Daniel Hajj Aboumrad: Well, let's talk a little bit. In Brazil, we have a lot of competition. that is no doubt. there is a lot of competitors. There are different competitors in mobile, and we have other competitors in broadband, fiber, TV, So it is a lot of competition there. So if you are telling. I think in mobile, we are stabilizing a little bit the promotions but we do not know what is going to happen on the third in the fourth quarter. No? it is coming Christmas and all of that. So we do not know what is going to happen.

I do not know what the competitors are going to do, but I think all of them want to have a long term view, only. So maybe they have promotions, but there will be some promotions, not reducing price for a year, no, or 2 years. So let. Let's see what we are going to get in the fourth quarter in promotions. But that is what it is in the broadband business and the TV business, there is a lot. As you know, there is a lot of companies with fiber. They call them fibreros or ISPs in Brazil. So we are growing good. We grew 90 thousand broadband subscribers. that is good for us.

And maybe we have more promotions that we used to do, but those promotions should have some time, and then the revenue will come later. We are working very hard because we are just taking desktop on October 1. So I think we have a lot of synergies. And we are going to have also good synergies on the commercial side, where we can sell to these customers other products that we have and to some postpaid or mobile customers that we have, we can sell also where we have fiber this new. because Desktop has around 4.8 million home passes and made more than half of that. We are not in those greenfield for us. Exactly.

So we are going to have a lot of opportunities there, and it is what we are focusing. So these next 6 months, we want to integrate the company and take advantage as much as possible to all these desktop subscribers that we have and to the mobile that we. where we do not have a footprint of fiber. To give and offer them fiber to them. No?

Carlos Jose Garcia Moreno Elizondo: And just a comment. We have not made any changes in the allocation of fixed line revenues as the different services. Okay. So you know, between broadband and the pay TV and voice, have not made any changes in the way we allocate those Alright.

Gustavo Farias: Very clear. Thank you, guys.

Operator: Thank you. Your next question comes from the line of Rogério Araújo with Bank of America. Your line is open. Please go ahead.

Rogério Araújo: Hi, guys. Thanks a lot for the opportunity. I have a follow-up on the Brazilian market regarding pricing outlook, And also NuCel's autonomy. Given the limited front book price increases this year, how do you see the pricing outlook for next year? And if you could be more specific on unlimited WhatsApp and prepaid as well, We noticed that Vivo and then TIM, they took it out from their plans if Claro could follow, and then if there is any expectation of prepaid price increase after several years of flattish prices. And, also, if you could, there was a little bit on the strategy for pricing of NuCel, if they have full autonomy or if Claro participates in those decisions.

And what to expect for looking into 2027. Thank you so much.

Daniel Hajj Aboumrad: The first 1, NuCel, I think we have an agreement with them. And they can do whatever they want to do inside this agreement. Okay? But now they can decide their prices alone. But if they do let's say, if they reduce the price, I do not think we are gonna reduce the cost. So they have. They are going to manage their price on the area that they can do it. So that is what the agreement that we have with NuCel. I think they are doing good. They have a good customer base, and they are still growing and doing good as an MVNO. So NuCel is doing okay.

On the promotions on WhatsApp and prepaid promotions. it is. Sometimes it is very difficult to increase the price of the card. So what I think it is better if you want to increase the prices to take out some promotions, and that is what we do on the WhatsApp inside the card. So you take promotions, and it is a little bit increasing the price. So I think that is more or less the way we do things in prepaid because if you sell at BRL 100 a car, it is difficult to do it at BRL 103. So it is not so easy. You can do it, but it is not so easy.

So sometimes it is better I am not saying that always. Sometimes it is better to reduce the duration. The-- Go ahead.-- reduce the time of the card. So that is the way to increase price or to take out some promotions or increase the. change the card, no? Or take out some gigas or add. So there is a lot of things And in postpaid, well, you can increase that. I do not know. I can lie to you if I can tell you what is going to be our price strategy next year. Of course, there is inflation in Brazil. Costs are increasing, but I do not know if we are going to be allowed.

Allowed means competition to increase or not increase price. So still, we have not disclosed that. And that we are we are. We. By. We are sure that costs and. Are increasing but we do not know if still. If we are gonna increase or when we are gonna increase prices or take out some promotion. So that is what we have. What I can tell you is that the promotions in broadband are high. And we are going to still and we will remain competitive and do what we need to do to be competitive in all the segments in Brazil. So that is what we do and what we are going to do this year and next year.

Okay.

Rogério Araújo: that is very clear. If I may, 1 follow-up on the agreement with NuCel that you mentioned. You mentioned the cost if they reduce price, not necessarily their cost will reduce. But is this cost with Claro increases by inflation on an annual basis or any other rate? Is there automatic inflation pass through on those costs?

Daniel Hajj Aboumrad: I do not remember the agreement but I do not remember the agreement that we have with NuCel. But I do not I do not know if it is set inflation or if it is for 2 years. I do not know. I do not remember really the agreement that we have with them.

Rogério Araújo: Okay. No worries. Fair enough. Thanks very much, and congratulations on the results.

Operator: Thank you. Thank you very much. Your next question comes from the line of Jesus Roma with Global Data. Line is open. Please go ahead.

Jesus Roma: Hello, good morning. Congratulations on the results, and thank you for taking my questions. I have a couple of questions about the dynamics of postpaid and prepaid in Mexico, and I wonder if you could add more color. The first 1 is regarding postpaid. I see that you are. You had a substantial growth in net adds, over 140 thousand which is 1 of the best quarters lately. And 8% increase in postpaid, revenue. I wondered if you could add some color on what are the dynamics that are pushing postpaid forward in terms of both subscriptions and revenue,, if it is related to IoT, to renewals,, or if clients are demanding more data.

And on prepaid, just to clarify if part of the net losses that you posted for this quarter are related to the prepaid registration mandate in Mexico. Thank you.

Daniel Hajj Aboumrad: Well, we are talking about postpaid. I think in postpaid, we are doing an excellent job. I can tell you that on the customers that are coming to renew their plan in our customer care centers, are moving. Half of them are moving to a better plan. That a good ARPU, and that is the reason why revenues are increasing. We have a source of revenue is new customers, but other source of revenue is that the customers are jumping to a new plan and that is. And it is better for them better for us. The second is the migration from prepaid to postpaid.

We are having more, and since the registration of the of the number, I think more people are coming from prepaid to postpaid. And people are using also more from 4G to 5G. So I think we are the only ones who have a very good 5G and coverage network in Mexico. And that is what you are seeing. So that is more or less what we have in postpaid. And in prepaid, well, we have disconnections, and there are disconnections that sometimes it is people that only use 1 time. They take the card and move it.

So those are people that we are disconnecting, and we still are in the process of registering all the numbers. it is every 15 days it is a new number that people has to register until the end of December, and, well, it is still a long way to go there. But, yes, people are. Some people are not-- people that are consuming also do not want to register. But, well, that is what we have there. And I think at the beginning, we are going to have a little bit of reduction on the prepaid revenues, but in the mid run, I think it is going to recover. So that is what we have.

So people are taking more time to register their number. But at the end of the day, I hope and I do not think that people are going to stay without the phone or without connected because of the registration. So it is gonna take time. Maybe in the short term, we can have, like, a slowdown a little bit on the revenues on prepaid, but in the mid- and long-term, then we are going to recuperate that. So that is what-- that is the way I am seeing things. Okay? In the other side, on postpaid, are going very well and people are consuming and upselling and doing good.

Carlos Jose Garcia Moreno Elizondo: Just to add to what Daniel is saying, the. Our ARPU postpaid ARPU growth in Mexico in the quarter, is the highest that for the last 3 years at least, we are seeing continuous acceleration of postpaid ARPU growth which is quite significant. Yeah. Thank you.

Jesus Roma: Thank you. 1 follow-up, if I may. Regarding postpaid, I understand that these are mostly like consumer trends. But do you see that the corporate or the B2B side of the operation is also helping the postpaid revenue in this year.

Daniel Hajj Aboumrad: Yes. We are having more and more corporate. The corporate is helping a lot on the fixed on all these data center cloud and all these services is growing very well this quarter on the fixed side. And also, is doing good in mobile. So we are-- Yes. Yes. As you are asking, yes. it is been good, the corporate customers.

Jesus Roma: Excellent. Thank you.

Operator: Thank you. Your next question comes from the line of David Lopez with New Street Research. Line is open. Please go ahead.

David Lopez: Hi. Thanks for the opportunity, and congrats on your results. Just 1 question on Colombia, please. it is another very strong quarter for Colombia. Was wondering if you can comment on what is working well there I will also comment on the ARPU growth this quarter. And how sustainable this kind of performance is in Colombia. Thank you.

Daniel Hajj Aboumrad: Well, in Colombia, yes. If we go back 5 years ago, When WOM entered, they do crazy promotions. With a lot of data that hurts all the market, but well, that passed and we have been. Since that, we have been growing and we have been doing well. We do-- And we focus, as we are focusing in Mexico. A good network, good customer retention. Good upselling. We have a lot of upselling there very good upselling. And 1 of the things that we have is we have the biggest 5G network, because they launched the-- well, they set-- They sell the spectrum, and we did.

We started to do 5G since the beginning, so we do not have to wait to do the network. We already do invest in the 5G network. So we were the first the starters in Colombia in the market, and that is helping us. that is the reason we have a very good coverage We have a good network, and we are growing also very, very, very good. So that is what you are seeing in Colombia.

David Lopez: Very clear. Thank you. And maybe a quick follow-up. While you mentioned spectrum, what is the next big auction coming in your main market, please?

Daniel Hajj Aboumrad: Where? In which country?

David Lopez: Across your markets, which 1 will be the largest 1 coming?

Daniel Hajj Aboumrad: I think we have. I do not remember exactly, but I think we have something in Honduras or for the end of this end of this year, to do 5G, but nothing I do not remember any other auction. Okay. Thank you very much. We do not need it. We do not need it at this time. So you are good. Very clear.

David Lopez: Thanks.

Operator: Your next question comes from the line of Ernesto Gonzalez with Morgan Stanley.

Ernesto Gonzalez: Hi. Thank you for taking our question. Just talking about the smaller markets, you also delivered strong results in Peru. and Ecuador? Anything to call out here or in any of the other markets we did not discuss? Thank you.

Daniel Hajj Aboumrad: Oh, I think. Well, I think we are doing very good in Ecuador. Ecuador is growing well. We have a strategy on quad-play. We are doing fiber. It cost us a lot of time to understand the fixed business in Ecuador. But I think we have been having, like, maybe 2 years of doing well,, increasing our fiber footprint, taking good customers, giving TV. So all of that is working well. And the economy of Ecuador is also improving. that is why we have a very good increase in the--postpaid--sorry, prepaid ARPU also increasing revenues. So things are going better in the economy. And we are doing better in fixed and in mobile, starting also in corporate customers there.

So while Ecuador has been doing well. All of Central America, we have outstanding results in Central America. Growing in all the countries, moving a lot more on fixed, moving into 5 g, All of Central America is doing well. Reducing a lot of costs and expenses All these small countries, we are really. Not the small countries. that is something that we have not talked about is that we have been improving a lot in cost and efficiencies with some of AI platforms that we think are very convenient for us. So we are understanding more our customer and doing a lot of more things on the cost call centers, cost side, all of that.

So we are having, like, a big strategy and cost control with all AI platforms and, you know, on the team can talk a little bit on that.

Oscar Von Hauske Solís: Oh, as you mentioned, we are focused on agents and helping us to reduce cost. And we are more focused on customer interactions and some part of the network that has helped this to reduce cost in call centers and maintenance in the network.

Daniel Hajj Aboumrad: So And contact the customer faster and solve the problem faster on the. On the. Let's say, in the broadband AI is helping us to go faster to solve the problem, to attend to our customers. All of these things we are improving,, and we have like, a 3-year plan to improve every day on all of these areas. So that is Peru is also doing good. We have more competition, but Peru is also doing good. We have the third operator that is very aggressive in pricing. But we have convergence. We have all of that, and we hope that we can close our company that we bought and consolidate it as soon as possible in Peru also.

Carlos Jose Garcia Moreno Elizondo: And what Daniel was saying on Central America, just to give you an idea. Revenue growth. Service revenue growth in Central America in the quarter was 11.4%. And EBITDA growth, again, the region was 16.1%. Okay. So Central America, which is a collection of small countries, as you say, but as a block, it is a very significant block. It is doing extremely well. And, you know, there is a matter of having very stable currencies and very resilient growth.

Daniel Hajj Aboumrad: Yep.

Ernesto Gonzalez: Good. Really clear. Thank you.

Operator: Thank you. Your next question comes from the line of Emilio Fuentes with GBM. Your line is open. Please go ahead.

Emilio Fuentes: Hi. Thank you for taking my question. My question is regarding the potential Televisa acquisition of AT&T. there is been rumorscircling around about how Televisa could bundle both its current fixed services with AT&T's mobile services Related to this, do you expect to receive permission to also offer both fixed and mobile services bundled in Mexico. Thank you.

Daniel Hajj Aboumrad: Well, I think, yeah, it is a it is a. They already have. They are going to have all the services and I hope the government will allow us to do all the services also. So I am-- I think they should do it. No? there is no reason not to do it. And as I told you-- to repeat, no. And as I told you again, I think strategies are okay, but then you have to have a lot of more things on not only a bundle strategy, then you have to have good coverage, good networks, good distribution. Customer care centers.

You have to have a lot of things And, well, that is something that we have been working, and we are going to still work on that. No? Thank you again.

Operator: Thank you. We have reached the end of the Q&A session. I will now turn the call back over to Ms. Daniela Lecuona for final remarks.

Daniel Hajj Aboumrad: I just want to thank everyone for being in the call. Thank you very much. Thank you all. Okay. Thanks.

Operator: This concludes today's conference call. You may now disconnect.

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