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Good morning. My name is Samantha, and I will be your conference operator today. At this time, I would like to welcome everyone to the América Móvil First Quarter 2026 Conference Call and webcast. [Operator Instructions] I will now turn the call over to Ms. Daniela Lecuona, Head of Investor Relations.

Good morning. Thank you all for joining us today to discuss our first quarter of 2026 financial and operating report. We have today on the line Mr. Daniel Hajj, our CEO; Mr. Oscar Von Hauske, our COO; and Mr. Carlos Jose Moreno, our CFO.

Thank you, Daniela. Thank you, everyone, for being in the call. Carlos is going to make a summary of the first quarter results. Carlos?

Thank you, Daniel. Good morning, everyone. Well, the downward trend on short-term dollar interest rates following the 25 basis points rate reduction of the policy rate by the Fed in December continued in the beginning of the first quarter as the market became increasingly concerned with a potential slowdown in economic activity in the U.S.

The value of the dollar versus other currencies, including those in our region of operations declined throughout the first part of the quarter with the dollar falling 4.3% versus the Mexican peso, 3% versus the Chilean peso and 6.4% versus the Brazilian real by the end of February. With the major exception of the latter, U.S. dollar made up practically all its losses in the weeks after the initiation of the war with Iran. Throughout the period, the differential between short-term rates and 10-year rates widened significantly from 8 basis points to 64 basis points at the close of the quarter with investors eyeing both a slowdown in the pace of economic activity possibly even a recession and higher inflation rates.

In this context, in the first quarter, we continue to observe a trend towards an acceleration of both postpaid subscriber growth and that of broadband accesses, as you can see in the slide. The base increased 8.8% and 6%, respectively, vis-a-vis the year earlier quarter.

First quarter revenue was up 2.1% in Mexican peso terms to MXN 237 billion, with service revenue up 0.6%, equipment revenue 7.4% and other revenue 108%, including the proceeds of a favorable ruling in Chile on account of a dispute around certain TV rights. EBITDA increased at nearly twice the pace as revenue at 3.8% this year in Mexican peso. The figures cited above reflect the appreciation of Mexican peso versus practically all other currencies in our region of operations, having gained 16% versus the dollar 4.6% versus the euro, 4.5% versus the Brazilian real and 2.5% versus the Colombian peso with respect to the same period of 2025.

So major appreciation of the peso first quarter of '26 vis-a-vis first quarter of '25. At constant exchange rates, revenue rose 6.1% on the back of a 4.6% increase in service revenue and 11.3% in equipment revenue, driving an 8% expansion in EBITDA. Adjusted for the extraordinary proceeds of the legal ruling, EBITDA was up 7.0%. The greater operating leverage is allowing for faster EBITDA growth with EBITDA now expanding more rapidly than service revenue and led our consolidated EBITDA margin to reach 40%, one of our highest margins that we've seen.

At 6.4% year-on-year, a similar pace over the last several quarters, mobile service revenue growth has remained resilient with postpaid revenue growth at 7.3% and prepaid revenue at 5%, having expanded faster quarter after quarter over the last year. Mobile service revenue growth has been on an upward trend in Mexico and Colombia, as you can see in the slide, on the back of greater prepaid revenue, which has been recovering over the last several quarters.

On the fixed line platform, service revenue growth was up 1.7% in the first quarter. Some regions, in particular, Eastern Europe, Central America, Peru and Ecuador registered very rapid growth driven by residential demand. As regards to our operating profit, it came in at MXN 50.5 billion, was up 12% in Mexican peso terms, while our comprehensive financing costs declined 9.9%, reflecting lower net interest expenses.

These concepts brought about a 25% increase in our net income to MXN 23.4 billion, which was equivalent to MXN 0.39 per share and $0.44 per ADR. Our financial debt reached MXN 527 billion at the end of March, having increased by MXN 2.5 billion versus the one outstanding at the close of December. But this means that our net debt for the period at the end of March stood at MXN 437 billion and was equivalent to 1.41x EBITDA after leases.

Our cash flow in the first quarter allowed us to cover MXN 21.6 billion in CapEx, MXN 1.4 billion in share buybacks, MXN 1.5 billion in labor obligations and further to reduce our net debt by MXN 1 billion, okay? So that you can see here in the slide.

So with that, I thank you for listening to the presentation, and I will pass the floor back to Daniel for Q&A.

Thank you. Thank you, Carlos, and we can start with the Q&A.

[Operator Instructions] Your first question comes from the line of Leonardo Olmos with UBS.

Congrats on the results. I got a couple of questions here. The first on capital allocation and buybacks. With the reduction of net debt to EBITDA to 1.4, how should we think about the balance between continued deleveraging and a more visible acceleration in buybacks from here? What leverage would you make more comfortable stepping up capital returns?

And the second one, still on leverage, but more on the M&A context. If operating trends and FX remain broadly stable, should we expect leverage to continue trending lower from here? And how do you think about M&A activity in that context, which -- how is going to impact your free cash flow concerning, I mean, the actual payments of the M&A? That's it.

Thank you, Leonardo. Well, a couple of -- what we need to see and what we want is some space because I think the region is in very good shape, okay? So the region is going to -- we're going to have some opportunities in the region, in Latin America and in Eastern Europe. So both we are growing good, and we're doing very good. So we think that in Eastern Europe and Latin America, there's going to be good opportunities, and we are looking for some of them.

We already -- we -- just a few months ago, we closed Azteca, the network of Azteca in Colombia. We just closed Desktop. So there's going to be more opportunities on that. So as you said, we need to have a good balance between buybacks, between deleverage and the opportunities that we have. We are looking for some opportunities. And these opportunities are going to give us a very good competitive position in the places where we are looking.

So -- these opportunities are going to make a very good fit and are going to allow us to grow more in -- or faster than where we are. So that's where we are, and that's the balance that we have. Carlos was saying, we want to have the debt to 1.3, more or less is what we want to have. We have more opportunities. And we are also -- we are increasing our -- We're increasing to MXN 10,000 million more to have MXN 21,000 million on the fund. We want to buy. We want to buy back more. We want to take the opportunities, and we want to deleverage, as you are saying, we want to have a good balance on that. Right now, I'm personally seeing good opportunities in some countries that makes very good fit for us, and we are looking and doing that. So that's where we are, Leonardo.

Yes. You answered both of my questions in one answer. Just a quick follow-up. In the past, you used to talk about fiber opportunities in LATAM. Are we still on that? Or are you considering mobile or other type of network complementarity?

No, we're considering everything. We're considering fiber. I think there's a lot of fiber companies in the region that makes speed. Instead of putting fiber, they are already with fiber and some customers and also spectrum, you know that we buy last year some spectrum in Puerto Rico. There's a lot of things that you can see what we do in Desktop, the backbone that we do with Azteca, Colombia. And you are going to see all this year good opportunities, Leonardo. So we want to take those -- to have a chance to take those opportunities.

Our next question comes from Marcelo Santos at JPMorgan.

I have 2. The first is if you could provide us an update on the CapEx plan for 2026. There was a lot of changes in currencies, the Mexican peso getting stronger. So just wanted to hear what you plan for CapEx this year and maybe the next couple of years? And the second one, you mentioned in the release some operational issues in Argentina. Could you please comment a bit on that? Just give a bit more color on that would be great.

Well, as you said, we have been having a lot of movements in the exchange rates. And we have been reviewing carefully what we're going to have in each country for the CapEx. You know that the CapEx is part in dollars, part in local currency. So we're reviewing that. But all overall, what we think and finalizing our CapEx, we think that the CapEx for this year is going to be $7 billion -- around $7 billion, depending to be a little bit more, a little bit less depending on, as we said, the exchange rates.

And we think that for the next years will be around that. We are going to have our Investor Day in May, and we can finalize the numbers for the next years. But I can say that we are more or less in that number. And Argentina, I don't know what you are asking on Argentina.

I think you mentioned on the fixed line business in Argentina that you said the fixed line market has become more challenging because of the difficulties in assessing clients in the Buenos Aires metropolitan area. So just wanted to better understand.

We're doing very good putting fiber in Argentina, very difficult for us to do it in Buenos Aires as the capital city. So that's the only thing is where we're putting fiber, we're growing, we're putting broadband, we're giving TV and doing quad-play. It's been very good for us. We are growing very good in Argentina. And the only place where it has been difficult for us is Buenos Aires because I think we have permission, but there we don't it's difficult because they don't rent us the telephone posts and they don't allow all the competition to go there and difficult to do it underground.

To go underground has been very difficult to do it there, but that's the main reason that we have. Where we have fiber, we're growing very good, penetrating the network, doing fiber, doing quad-play, doing excellent. So that's been good for us. With all of that, well, we're going to have a big competitor in Buenos Aires because the market share of our competitor Telecom buying Telefonica is going to be high. So let's see what is going to happen there.

Your next question comes from Andres Coello of Scotiabank.

Daniel, as you know, Starlink said back in December that the direct-to-cell service is already available or could be available in Mexico. Obviously, users will appreciate that. And I'm wondering if América Móvil could work with Starlink?

I don't hear you so well. Can you repeat the question, please?

Sure. So Starlink said in December that direct-to- cell service is available in Mexico since December. So they could provide a service in Mexico. And this will be obviously very good for users, especially in remote areas. So I'm wondering if América Móvil could work with Starlink to provide direct-to-cell service.

Yes. I think the real direct to sell service, what I understand is going to be on 2027, something like that. They are going to launch a new satellite and that will be the direct to sell. Well, they have been successful selling broadband to the houses in Latin America, I think all around the world. We are open to do anything for them that makes sense for us, of course, and we're talking with them.

And I think it's going to be a good technology. So for doing that, you need to have a spectrum. So I don't know if they already have a spectrum in some places. I understand that they buy spectrum in the U.S. and some in Europe, but I don't know if they have a spectrum in Latin America. So -- but we are open. If your question is, we want -- or we can do something with them, of course, we can -- I think it's a service that makes complement with us. And of course, we are open to do something with them.

Okay. As you know, Entel is doing direct to sell in Chile and Peru. And I understand that in Costa Rica, the service will be available soon. So you are saying that you will wait until 2027 for the service to be available in Mexico.

No, we're not waiting. We're talking with them, but I think the real and the orbits of satellites for cell is going to be available in 2027. They are doing something today in some countries, of course. But the one that is going to be big and it's going to be directly to sell is going to be -- I think they said -- is what they said is I'm not stating, but what they said is going to be in 2027. Of course, they already have -- the new constellation is going to be in 2027, but they already have a constellation that can do the fixed broadband. But we're not waiting to talk with them. We are talking with them and see what opportunities we can have.

[Operator Instructions] Our next question comes from the line of Luca Brendan at Bank of America.

I have 2 from my side here. The first one, can you comment a little on how are you seeing the expansion of your partnership with NuCel? And how relevant it has been for the strong expansion we have seen in Brazil mobile this quarter in terms of new net additions? And then the second one, how do you see the potential impact of the recently announced M&A in Mexico Mobile and what the impact that this could have to the market and to América Móvil more specifically?

The second question is the announcement in mobile in Mexico, what?

Yes, the recent M&A that was announced at Telefonica selling their assets.

They buy -- the purchase from Telefonica, the sale of Telefonica in Mexico...

Yes, yes, that's it.

Okay. Well, I don't know if in Brazil, we are disclosing the numbers of number portability between what we have and what's NuCel. What I can tell you that we have been doing very well. In number portability, we have been gaining number portability for the last 4 years, 3, 4 years, gaining number portability in all the regions with all our competitors.

So we have been doing well. And with NuCel we increased that number portability. So that's nothing that we have been doing bad and then with NuCel change and we're doing good. So we have been gaining in number portability because we have a very good 5G. We have customer care. We do combos with the fixed. So we have a lot of promotions, and we are, I think, in a very good shape in terms of technology, in customer care. We have been investing in Brazil, and that's giving us good results for the last year.

So with NuCel, our portability expands. We are growing. I don't know -- I don't have the numbers here how much is in us and how much is in NuCel. I don't know if in Brazil, but if in Brazil, they disclose that, Daniela can give it to you. But it's something on top of what we have been doing very well. I'm not saying that NuCel, now it's doing very well. And we think that we can still grow more in Brazil in number portability.

Since October, I think we're gaining more and more, and I hope we can do more, Luca. And well, how I can see in Mexico, I can say that the last years of Telefonica in Mexico has been shrinking a little bit in terms of technology, in terms of infrastructure, in terms of frequencies. So they are -- they start to be like an MVNO of, I think, Altán and the other of AT&T, they are buying that. So there's a good company, a good name, but not investing what they need to invest in Mexico. And I don't know what's going to be the strategy of this new buyers, and I don't know if they are going to still do and manage the company as an MVNO or they are going to put infrastructure and buy spectrum and compete. So let's see. Still right now, I don't know what they are going to do.

Our next question comes from the line of Phani Kanumuri from HSBC.

My first question is on Mexico Mobile. The growth seems to be accelerating. What are the major drivers behind the growth in Mexico Mobile? And can we expect this growth to continue in 2026? My second question is on working capital. It seems to have increased a bit in 1Q '26 compared to 1Q '25. What are the reasons behind the increase in working capital?

Well, on Mexico Mobile, I think we are growing. Part is I think that the economy in Mexico is getting better. The increase in the salaries, the minimum wages increased 12%, I think, and that gives us an increase also in the prepaid side. So as we have been saying, prepaid is very related to the economy. And if the economy is starting to be better, then the people starting to spend a little bit more. And that's what we have been seeing in the prepaid side.

In postpaid, people like our promotions. We are increasing ARPU. And it's not new. I think in postpaid, the growth rate has been very good for the last 5 quarters. So our ARPU is growing. And we are growing in new customers and this -- and our actual customers are moving to better plans and consuming more. So that's more or less what you have been seeing.

And I hope that will be -- but it's not in this quarter. I think for the last 5 quarters, 6 quarters, 4 quarters, the growth of postpaid has been doing good. And in prepaid, I think last year, we had a little bit of slowdown because of the slowdown of the economy, but I think the economy is getting better and the recovery is doing good. So that's more or less what we have.

And on the working capital, I think there's 2 things to note. One is that we are taking in a bit more inventory. We have been more cautious about availability of supply. If you look at equipment revenues, they've been extremely good, extremely solid this quarter and the last one. And if you look across countries, you will see certainly Mexico, Brazil are showing very, very strong sales of equipment. So that's partly reflected in the working capital.

And then again, and it's partly linked to this, we are financing very successfully handsets. The consequence in Mexico, for instance, the way we do it is we are basically leasing the handsets and this basically entails some additional working capital. But it's been good sales and very, very successful these methods of selling the equipment.

And to add a little bit of what Carlos is saying, we all know that the memory chips has been increasing a lot, the prices. The price of the handsets is starting to increase. So we want to be sure that we have enough handsets to serve our base, our customer base. So that's really the reason why we increase on inventory. So prices are increasing. So -- and we don't know if only prices increasing or we're going to have a lack of handsets. So that's why we are taking that decision to increase a little bit our inventories.

Our next question comes from the line of Emilio Fuentes De Leon from GBM.

I have 2 questions regarding Mexico on the operating side. First, regarding the disconnections from the initiative from the digital transformation agency, could you give us a little more color on the nature of these clients? Were they mostly unactive lines? And my second question would be on the broadband side. Given that you're reaching 90% of customers connected through fiber, would this mean that we should expect the net adds to decelerate going forward?

Well, you know that since January 9, the registry of lines is -- we have to do it by law, we have to register the line and do a lot of things there. So maybe people is starting to activate less and churn less because they don't want to do it. But well, that is going to happen. So I think there's going to be a lot of cleaning the basis of subscribers and subscribers that they are not using at the end of the day, you need to cancel them because they are not going to be registered in the 1st of July.

So there's going to be a lot of things. But all overall, it's only number of lines, not money and consumption and -- so for me, I don't know if -- I'm not looking on how many lines or how many new activations because if I activate a lot, but then they churn in the next 3 or 4 months, it's worse because it's cost for me and it's not a revenue for me. So that will make subscribers, the base of subscribers to be more clean and to really understand where we are in number of subscribers with this new register of lines.

So let's see. It's been not as fast as all want, the register. All the new ones has to be registered and all the old ones has to be registered until July 1. So let's see what is going to happen there. But all overall, what I'm saying is a lot of people maybe it's not buying a new phone and staying with that because if they buy the new one, then they have to register.

But that's going to finish maybe in July. So there's going to be a lot of things. All overall, the important is how many good subscribers and subscribers that are consuming are the ones that the company has, and that you see in the revenues, in the ARPU in all of that. So that's what is going to happen. [Foreign language] The broadband in what way? And what's the reason why the broadband will slow down? What's your second question?

Yes. My question was regarding the broadband net adds. Should we expect this to slow down as you reach full penetration on your fiber network?

Well, still we have -- I don't think that our broadband will slow down because what we're doing is we're moving from copper to fiber. I think...

93%.

93% of our base is in fiber right now.

We have very good bundles in the market. We recently increased the speed almost 1/3 with the same price. So we -- I think we will continue with a good level of net adds...

We hope they don't slow down, and we can continue with that number.

Our next question comes from David Lopez at New Street Research.

Congrats on the results. A couple of questions, please. First one is a follow-up on Mexican broadband. I was wondering if you could comment on the competition recently, if there has been any changes? And if you could expand a bit on the reason why you've increased the speed on all the packages. And with Televisa upgrading to fiber, a large part of its business, does that mean it's going to be harder for your net adds? And the second question on Brazil. I was wondering if you could comment a bit on your plans for price increase this year.

Well, I'm going to start with the second question, and I'm going to let Oscar talk a little bit about the broadband in Mexico. Well, in Brazil, we don't have until now a plan of increasing prices at this moment. I don't know if there's going to be a chance to do it in the year. But right now, we don't have any idea on increasing prices in Brazil in anything in mobile, in broadband, in TV. So we don't have plans to increase prices. And on broadband in Mexico?

As we mentioned before, we already upgrade the network. We have a very good network. And you mentioned about the business. We want to differentiate ourselves in broadband, adding value to our small business connectivity. So we are bundled with cloud services, cybersecurity, productivity tools for small business. And really we have a team really focused just on small business to really penetrate not only broadband to bring value added to the small business as well on enterprise. So we believe that, that has been working very well, and the product has been very well adopted in the market. So we believe that we will continue with that.

And to talk a little bit about -- I want to do some other comments. I think all overall, América Móvil is doing very well in other countries. We're talking about Mexico a lot. We're talking a lot about Brazil. But I think the recovery in Colombia has been very good. We are increasing in broadband. We're doing much better in postpaid. So in Colombia, I think the market is performing well. We are performing well. We are cutting costs and doing a lot of things. So our revenues are growing, our EBITDA are growing...

In Peru.

No, in Colombia. In Peru, also, things are going okay with us. We have a tough competitor that has a lot of -- sorry, and in Colombia, we advanced in 5G, and we have the best 5G network until now. So we are doing okay. In Peru, also doing very good in broadband, growing our net adds and performing very well in revenue and in EBITDA. So if you see all the Central America has been doing also good. We talk also about Eastern Europe growing a lot, moving a lot. 5 years ago, we only have mobile.

Today, we have mobile and fixed and doing a lot of convergence there. So I think the results and in almost all the countries, we are performing very well, cutting costs, digitalizing, that will help us for the future. We are putting a lot of money on the CapEx on digitalizing our processes, digital IT and doing that in also in big businesses, we are putting more and more cloud, selling more services. So all of that has been doing very strong in our region. And as we said, we want to speed up and take more opportunities there. So that's what I want to talk a little bit more on that.

Our next question comes from the line of Ernesto Gonzalez with Morgan Stanley.

And I wanted to ask exactly about Colombia, which you were commenting on a moment ago and a few of the other markets where Telefonica has recently left. Could you discuss a little bit of the trends you're seeing? For example, Colombia, we saw an acceleration in revenues. What is driven by your commercial strategy? What is driven by market consolidation? And any color you could give on these moves is greatly appreciated.

Well, in Colombia, we have been investing for a long time. We invest in 5G. We have the best 5G network. So our customers are happy. Our traffic is growing well. In terms of broadband, we have been decreased the last year a little bit, but we are increasing this quarter on the broadband side. We have a lot of competition in Colombia with these ISPs there. And consolidation has been also good. But I think consolidation in Latin America is also being good for all the competitors. So you need to invest. You need to take the opportunities. But all overall, we think the markets are looking better.

That's really clear. And just one more question on Mexico. Margins improved, and they were the highest level in a long time. You continue expanding really, really well in fixed. What drove the margin improvement? And how sustainable is it?

Well, in fixed, what Oscar is saying is we increased the speeds to all of our customers. So we have fiber, and we're using that fiber. So customers are being -- the evaluation of our customers is that they are happy with the network, happy with the service, and we are going to still give what the market is giving.

So we want to be very competitive there. And also in prepaid, as we said, prepaid, let's say, I think -- I don't remember exactly the number, but I think first quarter of last year, we have decrease in revenues in prepaid. And this quarter, we are increasing like 4%, 5% there. So economy is doing better. Customers are consuming more. So all overall, is what -- and we are very strict on the cost control, something that nobody see and is giving us a lot of good is the digitalization of all our process.

So we are taking -- we are being much more productive, digitalizing all the process, doing better IT, using some AI and some processes that give us more knowledge of our customers. So all of that is helping us to perform better in each country.

We have reached the end of the Q&A session. I will now turn the call over to Mr. Daniel Hajj for final remarks.

Daniela wants to.

Just before we end the call, I just want to remind everyone that we're hosting our next Investor Day in New York City. It is on May 27. The save-the-date has been sent out, and that we will be sharing details on the agenda soon. We really hope to see you all there. And please don't hesitate to contact the team if you have any questions or need any help with the registration.

And thank you. Thank you very much.

Thank you. This concludes today's conference call. You may now disconnect.

Good morning. My name is Hillary, and I will be your conference operator today. At this time, I would like to welcome everyone to the America Movil Fourth Quarter 2025 Conference Call. [Operator Instructions] Thank you. I will now turn the call over to Ms. Daniela Lecuona, Head of Investor Relations. Please go ahead.

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

Thank you, Daniela. Welcome, everybody, to America Movil Fourth Quarter 2025 report. Carlos is going to make us a summary of the results. Carlos?

Thank you, Daniel. Good morning, everyone. Well, the U.S. government shutdown in effect through the middle of the fourth quarter ended up rising uncertainty about the state of economic activity in the U.S. Not only did it have a direct impact on employment, but on account of the shutdown, several economic indicators generated by government agencies failed to be released at all. On December 10, less than a month after the shutdown ended and with still incomplete economic data, the Fed reduced the policy rate by 25 basis points in the absence of strong inflation pressures and the appearance of a softening economy.

The dollar depreciated versus practically all the currencies in our region of operations in the quarter, except for the Brazilian real, the Argentinian peso, but it declined 2.3% versus the Mexican peso, 3.7% versus the Colombian peso and 5.7% versus the Chilean peso, remaining practically flat versus the euro in the quarter.

Well, we added 2.5 million wireless subscribers in the quarter, 2.8 million postpaid net gains and 298,000 prepaid losses and ended up December with 331 million wireless subscribers. Our postpaid base was up 8.4% year-on-year. Brazil led the way in terms of postpaid net adds with 644,000 subscribers, followed by Colombia with 276,000, Peru with 148,000 and Mexico with 135,000 postpaid subscribers.

Now in the prepaid segment, Mexico contributed 197,000 new subscribers; Argentina, 226,000; and Colombia 224,000, whereas in Brazil and Chile, we had prepaid losses of 381,000 and 315,000 subscribers, respectively.

In the fixed line segment, we connected 524,000 broadband accesses, 84,000 in Mexico, 113,000 in Brazil, 57,000 in Argentina and 49,000 in Colombia. PayTV posted a good performance, adding 77,000 units. We disconnected 79,000 voice lines -- land lines. Our access lines exceeded 410 million at the end of December: 331 million were wireless subscribers, 79 million were fixed line RGUs.

The growth of our mobile postpaid base and our broadband accesses, which you can see in the chart, our most dynamic business lines have been accelerated over the last quarters with that of postpaid reaching an 8.4% year-on-year increase and broadband access is expanding 5.6%. So these are some of our highest access growth rates in years. Fourth quarter revenue rose 3.4% in Mexican peso terms from a year ago to MXN 245 billion. They were up 6.2% at constant exchange rates with service revenue expanding 5.3%.

The difference between the rate of growth in nominal terms versus that at constant exchange rates mainly reflects the 9.6% appreciation relative to the year earlier quarter of the Mexican peso versus the U.S. dollar. The apparent deceleration of service revenue growth, which extends to most revenue categories, stems from the incorporation of our Chilean operation from November 2024.

EBITDA was up 4.2% in Mexican peso terms to MXN 95 billion, and it was up 6.9% at constant exchange rates in the year earlier quarter. As was the case over several quarters in 2022, 2024, EBITDA expanded more rapidly than revenue on greater operating leverage. Mobile service revenue growth remained strong at 6.2%, supported by postpaid revenue that was up 7.6%.

Prepaid revenue growth maintained the pace in the prior quarter, which was the fastest in at least 5 quarters and with the exceptional developments here in Mexico. As you can see in the next chart, with Mexico accelerating from 2.8% to 3.8% on the back of a strong recovery of private consumption in the country.

Fixed line service revenue was up 3.6% year-over-year with fixed broadband revenue increasing 6.4%. The non-Chilean operations were growing faster over the last couple of quarters, which you can see in the dotted green line. Mexico performed well with broadband revenue growth rising from 2% to really 4%. Our operating profit totaled MXN 49 billion. It was up 5.9% in nominal terms and 8.3% at constant exchange rates.

While our comprehensive financing costs were roughly half those of the year earlier quarter, this resulted in a net profit of MXN 19 billion in the quarter, which was 4x larger than that of a year before. It was equivalent to MXN 0.32 per share or $0.35 per ADR.

Our operating cash flow for the year 2025 came in at MXN 213 billion after deducting from our EBITDA after leases, MXN 16 billion increase in working capital and MXN 82 billion in interest payments and taxes. After CapEx in the amount of MXN 131 billion, we were left with a free cash flow of MXN 82 billion. The latter figure represents a nearly 40% year-on-year increase in our free cash flow.

Shareholder distributions reached MXN 45 billion, including MXN 12 billion in share buybacks, even as we reduced our net debt in cash flow terms by MXN 20 billion. At the end of the year, our net debt to EBITDA after leases ratio stood at 1.52x and was on a downward trend.

So with this, I will pass the floor back to Daniel Hajj, and we will begin the Q&A session. Thank you.

Thank you, Carlos. We can start with the Q&A session.

[Operator Instructions] Your first question comes from Marcelo Santos at JPMorgan.

I wanted to inquire about the CapEx outlook for 2026 and coming years. Could you please provide us with an updated view?

Marcelo, what we have been doing is that what we think we are not -- still we're not finalizing the CapEx for this year. But our target is to be around 14% to 15% revenues. That is what we have been saying and it's what we're going to do. That's maybe around $6.8 billion to $7 billion. That's what I mean, and that's what we're targeting to do. So we are going to be in those range. We still does not finalize all the countries, but we're looking to have around that number.

Okay. As a follow-up, going forward, is it reasonable to assume a similar percentage of revenues for the coming years? I know you have not finalized, but just conceptually, does it make sense?

Yes, this is what we think. The next 3 years, let's say, 2, 3 years, yes, we can assume that we can have between 14% to 15%, MXN 7 billion, MXN 6.8 billion, MXN 7.1 billion, depending on spectrum, depending on a lot of things that are coming, but that's more or less what we're thinking.

Your next question comes from Rogerio Araujo.

I have one on, there is a line called pretax nonoperating expenses. It came at MXN 7.9 billion this quarter. This is well above the quarterly average of MXN 700 million in the past couple of years. So could you please remind what anchors exactly in this line? What did impact it this quarter? And also, what to expect going forward?

In which line you said?

In nonoperating expenses...

It's within financial results, it's called other pretax nonoperating expenses.

The other financial expenses. We don't have it right now, but if you can talk to Daniela, we can give you the detail on what was the difference between the 4.9% to 7.8% this year -- this quarter.

Okay. No worries. I will. Can I follow up with another question as there was no answer on this one?

Yes, please.

Okay. Could you comment on Telefonica's announced sale of its operations in Chile, why America Movil and ENTEL ended up stepping out of the deal and any early expectation of the expected competitive environment in the country with Millicom and French buying these assets? If you could also comment on potential consolidation movements across Latin America as well, if there is anything active, and expectations for consolidation in the near future? Anything you can share would be great.

Well, you know that we were going together with ENTEL to do a bid for Telefonica. We review and we decide not -- in America Movil, we decide no go -- finalize and don't go together with ENTEL. So that's -- I think then I don't know if ENTEL decides to go alone or not. Then it was one. The other one that I heard that it was interested and then Millicom. Finally, Millicom is the one who win. I think we still have a lot of things to do in our company inside Chile. We are doing okay. We're gaining revenues. We're gaining market share. We are doing all the investments that we need, all the synergies that we need.

So we still think that we're going to be a very strong and good competitor in Chile. For us, it doesn't change a lot because we're changing as a competitor landscape, it will be very good to consolidate the market. But at the end of the day, Millicom is a new entrant. So it doesn't change anything having Telefonica and to change to Millicom. Let's see. I hope that in the future, we can consolidate the market in Chile, not only in the wireless, also in the fixed. And let's see, Chile will be important to be consolidated.

For us, why we were out, it was going to be a little bit complex because regulation, the split of the company, high leverage of the company, a lot of things that was going to be difficult to decide between ENTEL and us and then the value of Telefonica. So it was not an easy deal, and that's why we decided to quit and to stay where we are. But I think it's that Chile is a difficult market. Of course, it's a difficult market, but we are preparing and we're making all the investments and that we need to do to be competitive there. And as I said, hope that in the future, the market in Chile can consolidate.

Your next question comes from Gustavo Farias from UBS.

I'd like to hear some thoughts on capital allocation. So given the strong growth in free cash flow, and we also saw a slowdown in share buybacks lately. So how are you thinking about capital allocation going forward?

Well, I think as -- Carlos said 2 things, we do very good growth in the free cash flow. We grow around 40% in the free cash flow. But he also said that we -- the target that we have, and always, we're saying that the target on debt-to-EBITDA will be around 1.3 to 1.5x debt to EBITDA. So we are a little bit above. So well, when you said we are reducing, I don't know if you are saying we are reducing in 2026 or will reduce from 2025.

But it's important. We have a target on leverage, and we want to be on our target. So that's one thing. So the excess and the cash flow that we have, we're going to put it on reducing debt. Second, we have some M&A, as we said, we used to have Telefonica in Chile. We are not there, but we still have Desktop in Brazil. And we want to be financially healthy because we are not looking on M&A in other regions or material ones. No, we're not doing and looking on anything on that.

But in our region where we operate, I think there's going to be consolidation in the market, and we want to be prepared to consolidate, let's say, small companies or fiber, small fiber companies. So there will be a lot of things. The competitive landscape in Latin America is changing. We're having new competitors. Small ones are getting out. I hope -- new ones coming. So there's going to be a lot of things through the next year or 2 years. And we want to be prepared. We want to be healthy, and we want to be on target, okay?

Because as we said, the target is 1.3x to 1.5x. We are a little bit slightly above on that. So what we want is to be on target and use the cash flow for that and also to return for the shareholders and will be on buybacks and dividends. So that's mainly what we are going to do on the free cash flow that we have, nothing else. And as I said, we don't have or we are not looking on going to other countries -- outside of our region to do material things, no, because I read something this morning. So we are not thinking on doing nothing on that, only to be prepared to have opportunities. I think we're going to have some opportunities in the region that we have. That's what we have. So reducing debt and more opportunities.

Sorry, just to follow up on what Daniel has said, it's important to note that we, at the end of the quarter, we're still at a little bit marginally higher than the 1.5x net debt-to-EBITDA ratio that we have as our upper limit, even though we paid down debt by MXN 20 billion, okay, a bit more than $1 billion throughout the year. So we did devote some small amount of cash to a reduction of debt to remain within the limits that we have told the market, guided the market for the last 5 years. I mean these are not new limits.

Yes. Very clear. Just a quick follow-up, if I may. So considering what you just said and considering that the consolidation in Chile is now out of the table. Is it fair to assume that any, let's say, cash flow that would be directed to M&A in Chile is now redirected towards deleveraging?

Towards what?

[indiscernible]

Well, as we said -- yes, for -- if we don't have anything else in M&A, of course, we're going to do through leverage. And if we have an opportunity, then we're going to do something there. So that's -- we don't have something. We are looking for a lot of things, small things in Latin America where we are. And if not, then we're going to do leverage and be in the lower range of our target to be prepared for opportunities. That's what we have.

[Operator Instructions] Our next question comes from Cesar Medina at Morgan Stanley.

How should we think of the impact of FX on your overall results? And I'm asking because the Mexican peso strength is very visible and you're exposed to different currencies and your CapEx and debt also has sort of hard currency exposure. In net, how should we think of the impact on the cash flow?

I think, as you say, this is a company that has many operating exchange rates in our revenue. And then we also have very different exchange rates on our debt. So what we were talking about a little while ago in terms of the leverage ratio, that's something that tends to move both because the EBITDA flows move in terms of, say, if you measure them in dollars or pesos, whatever. But also, the net debt itself also moves a lot in terms of dollars or peso precisely because we have all of these currencies. So yes, it becomes a bit complex to manage these issues.

And that's why we always highlight here in the report how we are doing at constant exchange rates because we need to take out all of the noise that is created by the exchange rates. But yes, I think net-net, I think that we have a clear idea of how we manage the company. I think in terms of financial exposure, we manage our exposure to currencies. So we really have exposure only to 3 currencies for the most part, 3, 4 currencies. And in terms of the operating cash flows, well, that obviously has to do with -- there's nothing we do in that respect. There's nothing that we do in terms of hedging cash flows. That's something that just comes up as cities.

And this is why for us, it's always -- going back to what we were saying in the prior question, we need to balance the -- on the one hand, the desire to do distributions, share buybacks and also the need to adjust our leverage ratio by paying down some debt. And again, this is something that we cannot predict exactly from the beginning because it has to do a lot with where the exchange rates are.

And you can see them as noise at some point, but also they are a reality. They are there. I mean we are going to be measuring our net debt to EBITDA, which we measure with the rating agencies, that we measure with you every time that we publicly report, well, we need to be consistent with what we are doing. So balancing share buybacks, balancing CapEx, balancing the net leverage that we have. That's...

Exactly what Carlos is saying is a balance, a balance between the capital allocation. It will be reducing our leverage, returning to the shareholders via buybacks or dividends and be healthy to be prepared if there's something in our regions that will come as an opportunity. So these 3 things we're going to balance through all this year to be okay. So that's mainly what we're talking on the capital allocation.

Your next question comes from Alejandro Azar from GBM

This is just on the consolidation that we are seeing all over Latin America, Colombia, Chile, Brazil, there's even rumors on fixed players in Mexico being interested in AT&T. So my question is, how do you see the regulatory environment for AMX as it seems that we are moving to a tighter market with 2, 3 players. Do you think we should see in 5 years, 10 years, less regulatory or less asymmetric regulation where AMX currently has one?

Well, the only place where we have asymmetric regulation is in Mexico, all the other places, we don't have any, let's say, asymmetric regulation in all the other 20 countries that we operate, we don't have any asymmetric regulation. It's only in Mexico.

What -- your question is how I see in 3, 4 years is exactly what we're saying. I see more consolidation in all these markets. And I think it's going to be good for the business to consolidate more or less. I think like not only in mobile, but in fixed, maybe 5 years or 6 years ago, there's a lot of companies putting fiber, giving there in a lot of countries, fiber plus very aggressive promotions. I'm not seeing any more these companies putting fiber. There are still companies that they are doing, more competitors, but no new ones doing that. So they are seeing that the business, it's not as easy as it looks.

And so we don't -- we are not seeing new competitors, let's say, in terms of fiber. Then the other ones, maybe they are going to consolidate between them or they are going to consolidate with other ones. So there's going to be a new landscape in Latin America, and I think that's going to be good for us and for all the people who are staying here that's staying in Latin America. In Mexico, what you say rumors about AT&T? Well, they are rumors.

The only thing that I can say is that AT&T is a very strong competitor. And if they sell to other ones, there are going to be also strong competitors. So nothing to say. So what we need is to do our job to have the best 5G network, the best quality, customer care, everything, systems, IT, AI and to do everything that we are doing, all the investments that we need to do to compete against or still AT&T here or if they sell to the other one.

So we -- that's what -- exactly what I said in Chile. In Chile, we used to have Telefonica as our competitor. Today, it's not going to be Telefonica. It's a pity that we cannot consolidate this market because this market will be good to consolidate, but it's going to stay more or less the same with 4 competitors in mobile and the same in fixed. So let's see if in the future, we can consolidate that market. So that's what -- yes.

Alejandro, as Daniel is saying, I mean, I do believe that you can see that there's very much of a wave of consolidation happening in the world. You look at Europe, there used to be many more players in each one of the countries, there's been a reduction. And this basically has to do with the dynamics of the industry. This industry requires scale to getting returns for the investment.

And when you have a very fragmented market, there's no returns and no investment. And typically, players end up probably not in the best of shapes. So I think that this is an issue that is more and more taken into account by regulators and generally governments worldwide.

Your next question comes from Marcelo Santos at JPMorgan.

I just wanted to use this opportunity to ask about the Brazilian number portability. You mentioned in your release like that Brazil is seeing the sustained customer preference as evidenced by positive number portability trends, which indeed has been very strong and stronger than usual. My question is, is this portability that has been stronger mostly explained by NuCel, which you have the MVNO? Or is it mostly explained by your like Claro operation in Brazil? Just wanted to see what's driving this strong portability, which we also see using the data.

I think they are both, okay? There's no doubt that NuCel is helping us in number portability, and we're doing very good with them. But in the other side, we are doing strong, and we have been growing more on revenues than our competitors in Brazil. And I think that's good number portability plus new subscribers, we are doing okay. And the other thing that I'm seeing is that we are getting also very good ARPU subscribers.

So we are not only in the prepaid or in the low end, we are getting also good, high-end subscribers. So it's been good. That's what I can say. There is no doubt that NuCel is helping us, but it's not only NuCel. There's all the things that we have on the back of that, that is doing -- that we have been doing that. We have been always gaining number portability through the year. And in the fourth quarter, we get a strong because NuCel. So it's been good, and we are a little bit more good, a little bit more better than what we used to be. This is what I can tell you.

So just to clarify, the jump we saw in the fourth quarter, that would be attributed to NuCel. You were having very good portability across the year. That's Claro, but the change we saw in more recent months, that would be NuCel.

It's Part not all, but part could be -- yes, part could be NuCel, but not all is NuCel. Also it's fourth quarter. Fourth quarter, a lot of people is changing. There's new handsets that people want to change for handsets or they want to do promotions. So there's a lot of things.

Your next question comes from Emilio Fuentes at GBM.

I'm wondering, given the stellar net adds you have had in broadband in Mexico, the recent quarters, how sustainable do you see this performance going forward, specifically as we reach a higher penetration for this service in the market?

Yes. We see a good trend on the net adds within the last 4 quarters in fixed broadband in Mexico. We have very good promotions in the market that the customers have received very well. The bundles with streaming increasing the speed. So we see the same trend through this year, right? So we see the bundles are working pretty good with the streaming video platforms and the speeds that we've been delivering to the market are really good. We have 92% of the customers already with fiber. So we believe that we will retain the customers. We believe the trend will be more or less the same.

There are no further questions at this time. I will now turn the call back to Mr. Daniel Hajj for closing remarks.

Well, I'd like to thank everyone for being in the call. And thank you, Carlos, Daniela, Oscar. Thank you very much.

Thank you all.

Bye-bye.

Good morning. My name is Kevin, and I will be your conference operator today. At this time, I would like to welcome everyone to the America Movil Third Quarter 2025 Conference Call and Webcast. [Operator Instructions].

I will now turn the call over to Ms. Daniela Lecuona, Head of Investor Relations.

Good morning, everyone. Thank you for joining us today to discuss our third quarter financial and operating report. We have today on the line Mr. Daniel Hajj, our CEO; Mr. Carlos Garcia Moreno, our CFO; and also Mr. Oscar von Hauske, our COO.

Thank you, Daniela. Welcome to America Movil third quarter of 2025 financial and operating report. Carlos is going to make us a summary of the results.

Thank you, Daniel. Good morning, everyone. Well, we saw in the third quarter with the U.S. economy finally appearing to slowdown as evidenced by a sharp decline in the number of new jobs created. The Fed went ahead with a much anticipated reduction in its policy rate, which was brought down by 25 basis points in September. Since mid-July, long-term interest rates have been on a downward trend with 10-year rates falling from nearly 4.5% to 4.1% at the end of the quarter with lower interest rates and the expectation of further interest rate cuts by the Fed, the U.S. dollar lost ground versus practically all currencies in our region of operations, declining 2.7% versus the Mexican peso, 2.5% versus the Brazilian real and 4.1% versus the Colombian peso. The dollar remained practically flat versus the euro with the Argentine peso. The only major exception is the period that depreciated versus the dollar.

We added just over 3 million postpaid clients in the quarter, with Brazil contributing practically half as you can see in the chart, 1.5 million, followed by Colombia with 251,000, Peru with 198,000 and Mexico with 98,000. On the prepaid platform, we recorded net disconnections of 31,000, as you can see on the right-hand side of this slide, resulting from losses in Brazil, Ecuador and Chile, which offset net subscriber additions obtained in several countries including Argentina 253,000, Colombia 237,000 and Mexico with 136,000 in the prepaid. In the fixed-line segment, we gained 526,000 broadband accesses, including 211,000 in Mexico, that's roughly half of what we had overall in America Movil; 86,000 in Brazil; 56, 000 in Argentina; and 51,000 in Colombia.

At the end of September, we had 408 million accesses, of which 140 million were postpaid clients and 79 million were fixed-line RGUs. Year-over-year, our postpaid base increased 8.1%. As you can see that the access lines that have been increasing faster and then fixed broadband accesses with 5.1% growth.

Third quarter revenue totaled MXN 233 billion, they were up 4.2% in Mexican peso terms and 6.2% at constant exchange rates. The service revenue also expanding at the 6.2% pace. The difference between the rate of growth in nominal terms versus that at constant exchange rates, mainly reflects the appreciation of the Mexican peso versus the dollar, the Chilean peso and the Argentine peso as the former remained practically flat versus the Brazilian -- flat versus the Brazilian real and the Colombian peso.

On the mobile platform, service revenue posted its best rate of growth in 2 years, 7.1%, helped along by the continued recovery of prepaid revenue. The latter expanded 3.9%, the fastest pace in 2 years, while postpaid revenue climbed at 9.1%, very similar pace to that of the preceding quarter, which was a quicker one in 10 quarters. So very, very fast mobile revenue growth, both in prepaid and in postpaid. We're seeing the fastest pace in a couple of years. Mexico, Colombia and Chile were the main operations behind the acceleration of mobile service revenue growth.

As for fixed-line service revenue, it decelerated to 4.7% to 7.9% from 7.9% the prior quarter. This deceleration has to do with significant slowdown registered in corporate networks revenue, which fell from a 15% increase in the second quarter to a 3.5% increase in the third. Corporate networks revenue tends to be more volatile as it is associated with the pipeline of corporate network contracts and IT projects. We are an increasingly relevant player in this business segment, which is an ever more important revenue item for us; Its share of fixed-line service revenue has reached 21%.

EBITDA totaled MXN 94 billion and was up 4.9% in Mexican peso terms and 6.8% at constant exchange rates from the year-earlier quarter adjusting for tower sales a year ago. We returned to the trend seen over several quarters when EBITDA was expanding more rapidly than revenue, and we expect that this will continue to be the case going forward. Our operating profit came in at MXN 50 billion and was up 5.6% in nominal terms and 6.4% at constant exchange rates. With our comprehensive financing costs roughly cut in half compared to those of the year-earlier quarter, and this is basically on account of FX gains. Our net income surged to MXN 23 billion, and it was equivalent to 38 Mexican pesos cents per share or 40 dollar cents per ADR.

We ended up with MXN 138 billion in operating cash flow in the 9 months to September after deducting from our EBITDA after leases, MXN 34 billion in increased working capital and MXN 67 billion in interest payments and taxes. This capital expenditure totaled MXN 85 billion over the period. Our free cash flow amounted to MXN 53 billion compared to MXN 36 billion a year before. This means a 47% increase year-on-year. This free cash flow was MXN 2.3 billion in dividend income that we obtained [indiscernible], allowed us to distribute MXN 29 billion to our shareholders including MXN 11 billion in share buybacks, increase our equity investments by MXN 1 billion, pay out MXN 10 billion out of our labor obligations due this year and reduce our net debt by MXN 16 billion. At the end of September, our net debt stood at MXN 454 billion was equivalent to 1.55x net debt to EBITDA after leases.

So with that, I would pass the floor back to Daniel, and we will open up the floor for Q&A. Thank you all.

Thank you, Carlos.

We're ready for the Q&A.

[Operator Instructions] Your first question comes from the line of Vitor Tomita from Goldman Sachs.

Two quick questions from our side. The first one is on mobile prepaid revenues in Mexico. Prepaid revenues have been recovering well. Is this driven by better macro or other factors? And are you seeing this positive trend, if it is macro, for example, continuing into the fourth quarter for prepaid in Mexico? And our second question would be on the -- on Chile, Uruguay and Paraguay, where in that segment, even though it's small, we saw some very strong margin expansion quarter-on-quarter and year-on-year there. Was this due to accounting factors following the end of the JV there or any one-off effects, anything that we should bear in mind?

Well, Vitor, talking about the mobile prepaid in Mexico. As we said the last quarter and the last 2 quarters, we said that it's very related to the economy, and I think the worst that we do in the revenues in the prepaid was at the end of last year or beginning of this year. And since that, we're starting to recuperate the revenues. I think revenues should recuperate as we have been doing. I hope that the economy will get better and better. And hope for next year, we can have a better mobile revenues. It's very related to the economy. So it depends a lot on that. And as we see that things are going better than mobile prepaid will do better.

On the Chile, Uruguay and Paraguay, we have been working very hard in Chile. We do all the synergies. Then we bought the Liberty piece shares. And I think we're happy, we're gaining a lot of new subscribers. Revenue is growing, and we are being very careful with the cost and expenses. So that's why the increase on EBITDA that we have. There's nothing different on that. So that's only the operations and the growth that we have been having better churn, good subscribers -- better subscribers because we used to have the lowest segment of subscribers were having better postpaid subscribers, better revenue, better ARPUs, all of this is helping us to grow our EBITDA, and that's what we have been saying now. We need -- that we need some time to do the synergies and we're having a very good moment right now in Chile.

Our next question comes from the line of Phani Kanumuri.

My first one is regarding your potential acquisitions. There's news on AMX trying to require a part of Telefonica in Chile, along with Entel as well as AMX trying some acquisitions in -- some ISPs in Brazil. So how do you view these acquisitions? Do you see more potential for acquisitions in Brazil? And how does it impact average?

Well, in the M&A side, I want to talk about 2 things. First, on Chile, as we informed a few days ago, we are evaluating a potential joint bid with Entel to purchase Telefonica assets and operations in Chile. It is -- right now, it is in an early stage, and the process will take some time. So there's nothing else I can say. We are reviewing the company, making -- checking numbers, doing the due diligence, but nothing else than that. So on Chile, that's what we have, it's an early stage, and we don't have anything else.

On Brazil, on desktop, we're evaluating operations all around our markets. And our subsidiary in Brazil is currently evaluating desktop, but there is no binding commitment exists until to date. So there is nothing else only evaluating the company and our people is looking at that. There's nothing else that we can say. And that's what we are. We are, as we said, open to see any opportunity that we have in the region or out of the region that make sense for us, and it's what we are doing and evaluating, and I think all around the world, markets are consolidating. And if that makes sense for us, we are going to participate on that. So nothing else on that.

Our next question comes from the line of Gustavo Farias.

Also 2 on my end. The first one, If you could provide us color on the competition environment in Mexico, especially coming from the new postpaid plans, the competition in general? And the second question, focusing on Brazil. If we could have a better view on the main drivers of performance in prepaid, how you're seeing the segment especially with the good performance despite the disconnections we observed in the quarter?

Well, in Mexico, the competition with [ BYTE ] with AT&T, with Telefonica, we have a lot of competition in Mexico. But on postpaid, I think people looks a lot on quality, on 5G coverage, the way you -- your customer care centers will attend and solve all the problems. And I think we are by far much better than anybody else -- any other company in Mexico. We have more than 120 cities with 5G, nobody has that. We have customer care centers all around Mexico with a lot of people very professional and training to solve the problems, to help you, to activate your line. And on the other side, all of that helps you and if you have good prices and competitive prices, then well, you are in very good shape in Mexico. So that's what we have.

So we are very competitive. We financed a lot of the devices. We have very good devices. We have very good distribution. We have a very professional in the corporate segment, we have very professional people going to the companies in the small to medium business also. So we have a very good company here that makes -- so the -- let's say, the NPS people think very good about Telcel marketing and all of that, that help us to be very strong. And that's why I can tell you that from people who is visiting our stores, maybe 50% of the people that are actual customers decides to increase the plan and to extend the plan for some more time.

So we are very -- of course, we have a lot of competition. AT&T is doing good. [ BYTE ] is also doing good, but they don't have all the things that we have and people recognize a lot of that. Look, what we see is that the phone is a very important thing for you. So you need to have all day a day since you wake up and you get to sleep. All the day you have a lot of things to do. So what you want is to have the best network, the best customer care centers, the best coverage and all of that help us to be right now in this position.

On Brazil, well -- prepaid in Brazil, well, prepaid in Brazil also, we have been investing a lot in our network. We're gaining and doing a lot more coverage. We're doing a lot of 5G, and people in Brazil, there is a lot of people from prepaid moving to postpaid, but there's new people coming to stay with us in the prepaid side. So those are the things we -- in Brazil, we have 3 years gaining and doing much better in the wireless segment. And I think it's also because it's not only one thing that we have. It's a lot of things. In prepaid in Brazil, our ARPU is growing 7.3%, but it's a lot. So it means that people is consuming more, using more social networks or buying a package for more days. So all of that is helping us to do that. 5G is very important also.

[Operator Instructions] Our next question comes from the line of Lucca Brendim from Bank of America.

I have one here on my side. So if you guys could give us an update on the competitive market for Colombia and Chile. We saw many reports of potential acquisitions, including your potential move in Chile. Some of your peers are struggling financially in both regions. So is this already reflecting positively in the numbers you're seeing in those markets? Obviously, your numbers for the region have been improving in both Chile and Colombia. How much of that is due to competition? And what do you think we can expect going forward?

Well, we know what is going to happen in Colombia. Colombia is Tigo and Telefonica, they already merged their networks. So they are going to have 1 network, better costs, more efficiencies for them. And what looks like is that Tigo is going to end up having all Telefonica that means they are waiting for the authorization of the government. I don't know what's going to happen, but it looks like they're going to consolidate the market.

In Colombia, we're doing good. We are growing. We are #1 in 5G in Colombia. We're doing our investments there. Quality is doing good also. And the service revenue is growing 7.8%; 7.4% in wireless, and that the growth has been very good in Colombia. The competition with [ WOM ] is not so hard because [ WOM ] is not in very good shape, what I'm understanding. There is a new people buying the company, starting to do the changes, both all overall in Colombia were okay. Our EBITDA should increase a little bit more, but we are putting some extra reserves that we're doing for some [ physical ] and legal things that we are seeing. So we are putting. But if not, maybe we can have around -- we can have the 5% increase instead of 3% increase in the quarter, we can go to 5% increase if we don't do these reserves.

So next quarter, I think it's going to be the same because the reserves are until the end of the year, but the operations are doing good. We are being conservative doing their reserves, doesn't mean that we win or lose but we want to be conservative always. So that's what we've seen growing very good revenues and growing good EBITDA, investing a lot more in fiber. We're doing our investments and putting fiber to the houses changing more our cable and doing fiber. I don't know, Oscar, if you want to talk a little bit about the fix in Colombia.

No. As you mentioned, we are building home passes with fiber, and we are doing the migration from cable to fiber. So we expect to have 60% of our network already in fiber. So we believe that we have the right network to be competitive in Colombia, not only on fiber or residential, I think we are doing pretty well as well in corporate segment, selling cybersecurity, cloud, data center solutions. So I think we have a good operation there in Colombia.

And then in Chile, well -- Chile -- a lot of competition in Chile at -- but well, we hope that we can consolidate the market as Telefonica is -- they are staying on sale. But what we have been doing in the last 2, 3 years is since we buy the company, we modernize all the network, we put 5G. We grow our coverage. We do more customer care centers. We move the brand to Claro has been extraordinary good. So people migrate -- a lot of migration from cable to fiber. So we have been doing the last 3 years since we bought the company. We have been doing a lot of investments. And well, that's why our EBITDA is more than double in Chile. So -- but of course, competition is high in Chile, prices are still very low in Chile in everything. But we have been doing a lot of things to be competitive in the market, okay? So we need to compete at the prices that we have, they are very low, we need to compete at those prices. So that's what we are doing.

[Operator Instructions] Seeing no further questions at this time. I will now turn the call back over to Daniel Hajj for closing remarks.

Well, thank everyone from being in the call, and see you next quarter. Thank you very much.

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

Good morning. My name is Nadia, and I'll be your conference operator today. At this time, I would like to welcome everyone to the América Móvil, Second Quarter 2025 Conference Call and Webcast. [Operator Instructions]. Thank you. Now I will the call over to Ms. Daniela Lecuona, Head of Investor Relations.

Thank you. Good morning, everyone. Thank you for joining us today to discuss our second quarter financial and operating results. We have on the line Mr. Daniel Hajj, CEO; Mr. Carlos García Moreno, CFO; and also Mr. Oscar von Hauske, COO.

Thank you, Daniela. Welcome, everyone. Carlos is going to make a summary of the second quarter results.

Thank you, Daniel. Good morning, everyone. Well, the second quarter was characterized by significant uncertainty associated with the tariffs the U.S. government seeks to impose on merchandise imports. While this uncertainty did not have much of an impact on interest rate volatility during the period, the 10-year Treasury notes ended the first quarter at 4.21% and the second quarter at 4.23%, it did weigh on the value of the U.S. dollar, which during the period fell against most currencies in our region of operation, 7% versus the Mexican peso, 5% versus the real, 2.9% versus the Colombian peso, 2.1% versus the Chilean peso and 8.2% versus the euro.

We added 2.9 million postpaid clients with Brazil contributing 1.4 million, followed by Colombia with 199,000 and Mexico with 102,000. On the prepaid platform, we recorded net disconnections of 1.1 million subscribers with each of Brazil, Chile, and Central America is connecting approximately 500,000 clients each. While Colombia added 229,000 subscribers, Argentina, 251,000 and Mexico 83,000. Altogether, we gained 1.7 million wireless subscribers in the quarter between prepaid and postpaid.

In the fixed line segment, we gained 462,000 broadband accesses, including 231,000 in Mexico compared to 155,000 in the prior quarter, 66,000 in Brazil and 51,000 in Central America. Voice lines and PayTV units declined by 164,000 and 61,000, respectively, during the quarter. At the end of June, we had 404 million accesses, of which 137 million were postpaid clients and 71 -- 78 million were fixed line RGUs. Year-over-year, our postpaid base increased 6.8%, was the fastest-growing pay accesses and fixed broadband accesses increased by 4.5%. Those accesses constitute our main drivers of revenue growth.

In Mexican peso terms, our second quarter revenue totaled MXN 234 billion. That's a 13.8% year-on-year increase, which partly reflects depreciation over that period of the Mexican peso versus most of the currencies in our region of operations. We're talking about the second quarter versus the second quarter of 2024. At constant exchange rates, we posted our strongest revenue performance in over a year. I think, in some report I saw that over 12 years -- in 12 years, a 7.9% increase.

Our revenue expansion was broad-based across business lines and across countries with service revenue growth moving up to 7.3%, as can be seen in this slide, and that of equipment revenue to 12.5%. It's important to note that practically all our subsidiaries registered faster growth sequentially, practically all of them. On the mobile platform, postpaid service revenue expanded 9.5%, also the best result in over a year, with prepaid revenue growth recovering to 3.1% from 0.9% in the preceding quarter.

The rebound in prepaid revenue growth was driven by Mexico with prepaid ARPU climbing 2.2% in the quarter after posting a 2.5% -- 2.2% decline in the first quarter. As can be seen in this slide, prepaid ARPU growth mirrors the growth rate of private consumption in the country, which likely bottomed in the first quarter.

On the fixed line platform, corporate networks revenue and PayTV revenue were up 15% and 10.1%, respectively, representing also the best performance in several quarters, with broadband revenue decelerating slightly sequentially to 8.2% from 9.8%. Mexico and Colombia were the country that had the greatest impact on the sequential acceleration of revenue growth as can be seen here in this slide.

EBITDA came in at MXN 92.4 billion. It was up 11.2% in Mexican peso terms and 5.1% at constant exchange rates, improving sequentially from the prior quarter. And I think, again, something to note is that EBITDA margins were nearly flat sequentially across the board, practically in all countries. Margins were flat sequentially. Our operating profit came in at MXN 47 billion. That's a 4% increase from the year earlier quarter as the depreciation of right of use associated with tower leases jumped 24.5% on account of the consolidation of the Chilean operation and certain effects associated with the accounting methodology applicable to Argentina as a hyperinflationary country.

Our integral financial costs were down significantly on account of our having registered MXN 11 billion in foreign exchange gains. This helped us post a net profit of MXN 22.3 billion in the quarter. Our net profit was equivalent to MXN 0.37 per share and $0.38 per ADR. In cash flow terms, our net debt fell by MXN 7.3 billion in the 6 months to June. In that period, our CapEx amounted to MXN 54.9 billion.

Our shareholder distributions to MXN 9.4 billion, and that's including MXN 8.7 billion in share buybacks, and we covered MXN 2.7 billion in labor obligations. Our net debt to last 12 months EBITDA stood at 1.66x (sic) [ 1.56x ], a slight increase over the prior quarter, mostly on account of the appreciation in the second quarter of the Mexican peso and the euro vis-a-vis the U.S. dollar.

As I mentioned before, the -- in cash flow terms, net debt actually fell over the quarter by MXN 7.3 billion. So that should point to a [indiscernible] leverage. The greater leverage is basically on account of exchange rate movement. So with that, I will pass the floor back to Daniel, and maybe we can open it for Q&A.

Thank you, Carlos. And let's open the Q&A.

[Operator Instructions] The first question goes to Marcelo Santos of JPMorgan.

I have 2. The first question is about the Brazilian mobile environment. If you could comment a bit, you had a strong performance with revenue acceleration. Just wanted to hear your comments on the main drivers of that. And the second question would be if you could comment a bit on the recently approved regulatory changes in the Mexican telco framework. Just wanted to hear your considerations.

Marcelo, well, I think talking about postpaid in Brazil, we're doing very good. We are growing. We have been some quarters growing revenue, doing good in postpaid. All of these things has to be with a very, very strong and good quality network. We have been improving our network and putting more coverage all around Brazil. We have also increasing our sales force, stores and all the commercial area, we have been increasing that.

And we have been doing good plans. Also, our Claro Flex program has been very successful. So all overall, we are doing good. Customer care is doing also -- we have been a good performance, digitalizing everything. And our NPS has been growing very good. People is thinking of a very good service when we talk about Claro. And I think that's what we need to do. It's not only price, it's not only the commercial area, it's not only quality. When you do all the things together, then the market is responding very good.

So that's what we have been doing, and that's what -- we have also Nubank. It's still small, but our agreement with Nubank has been good. and they are looking for good customers, and that's also something that has been helping us. Convergence, it's important. So a lot of our fixed customers has also our postpaid or prepaid or vice versa. So all overall, I think we have a very strong performance, and we have been executing very good in Brazil.

So that's more or less what you could see. I see for the next -- no big changes on the next quarters in Brazil. I think we are doing very good. In the telecom law, what I can tell you is that the new telecommunications law and antitrust law are substantially similar to the original proposal sent by President Sheinbaum to Congress. Under the new law, we will be regulated by 2 different entities. The Comisión Nacional Antimonopolio, the new regulator for antitrust matters, which will be responsible for the imposition and revision of a symmetric regulations to preponderant and dominant agents.

And the other one will be the [indiscernible]. The new telecommuniciones regulator will assume the powers and responsibilities of the former IFT. And if you -- I can tell you some relevant -- most of -- some of the most relevant changes that we see. The first one is increasing the fines regulators may impose -- that's one. Potential discounts on payments for the use of spectrum in exchange for coverage obligations in remote areas and highways. That's very good for us.

The third one, similar terms for public and private concessions for obtaining spectrum for commercial service. That one is something that we have a lot of questions. So all the spectrum is going to be with similar terms. And the fourth is the new obligations relating to have the density of all users of telecommunication services for activating and maintaining activated all the telecom service, including mobile and prepaid. So that would be a lot of work to do. And that's more or less the changes and the relevant things that we see in the new telecom law.

Just one follow-up. In Brazil, do you have any particular comment regarding prepaid? There seems to have been a big shift in trends from first quarter to second quarter. Is there anything extra you could say on prepaid Brazil?

No. I think what is happening, I think, in all Brazil, not only for us is that the prepaid is moving to postpaid. So it's helping us a lot on postpaid -- the prepaid, but nothing new. So that's something that we have been working prepaid and postpaid, different strategies, but I think the same results, we are doing good in both.

In prepaid, I don't -- not only in Brazil, Marcelo, but in all the countries, it's very important to see in prepaid revenue growth, not subscribers because subscribers, it's very different. It -- some companies will disconnect after before, we don't know. So what it will be important is to follow the revenue growth in prepaid. And I think in prepaid, we have 10% -- more than 10% growth in Brazil. So very good for us.

The next question goes to Gustavo Farias of UBS.

I have 2 on my end. The first one, if you could comment on the outlook for Mexico, how you're seeing economic activity trending? How is a competitive environment in the country, especially for mobile, but also for broadband? And my second one, we've seen a lower increase in CapEx this quarter. I wonder if the target for the full year stands around MXN 7 billion.

Well, the first one is, yes, on CapEx, we are on target. I think it's going to be, I hope, less than MXN 7 billion. It will be like MXN 6.7 billion, MXN 6.8 billion, what we discussed, and that's more or less what we're going to have this year. So no changes on that. There's a lot of questions about what will be the next year and the next one. And the target that we have been having is to have the same percentage CapEx to sales that we have this year to have the next one and the next one. So I don't think there's going to be any change on the way we are going to invest in the next 1 or 2 years.

So that's something that all -- a lot of people have been asking us, and we have been doing a lot of investments in the last years. So that will help us to reduce and maintain what we have been doing this year. So that's, I think, good news for all of us. In Mexico, you want to talk there? I don't think there's different -- when you talk about the market, there's no different commercial or promotions in fixed or in wireless. I think we have the same competitors and some of them are more aggressive, other ones less aggressive. But the competition in the market is the same as last year. This year, there's a lot of competition in the Mexico market.

And I think what we discussed last time and the rebound in revenues is also helped by -- we think that Mexico economy is starting to grow. It's starting to grow a little bit. And what we discussed last quarter is that the reduction on revenues on prepaid mostly is because it's related to the economy, the acceleration of the economy, and it's rebound a little bit today, and we hope that the next quarters will be also better.

So -- the competition is there. We think we have a strong -- as we said, we have a strong network. We have a good revenue and commercial area, good promotions and good distribution, also customer care, and we're doing good. In the Peak side, we increased to more than 200,000. So it's a very good growth for Telmex, and we hope we can sustain and we will do good in the next quarters also. So we are accelerating also in the Peak side.

The next question goes to Phani Kanumuri of HSBC.

The first one is regarding the labor obligations. This first half, you had paid much lower than you had paid last year. So do you expect the outflow to be lower in the labor obligations? And second question is regarding -- yes.

No, you want Carlos to...

On the pension, so that you understand. Part of the obligations we have basically [indiscernible] are paid out of pension funds themselves. Part of the payments are made out of pocket. And this changes throughout the year, okay? So for the full year as a whole, I think you should not expect to see any major changes relative to what we had last year. So that's what I would say, okay? So how much we take pay cut upon in a given quarter, how much we pay out of pocket, that can vary during the year, depending on market conditions and the like.

And the second question is regarding the changing competition in different markets. We are seeing a lot of M&A happen in different markets, whether it's Argentina, Colombia and Ecuador, Uruguay. Are you seeing a change in competition there? Do you think the markets are becoming much more rational on a general level?

Yes, as markets consolidate, I think will be more rational promotions and the market will be more rational. And well, this is what we hope and we expect. So I think the Latin market with all the sales that the Telefonica -- the sales that Telefonica is having are not for consolidating the markets, okay?

In Argentina, yes, it's consolidating the market. In Colombia, it's consolidating the market. In Peru, it's not -- we're not. It's another one. It's a new entrant, in Uruguay and in Ecuador also, it's a new one. So it's not consolidating. So it's different in each market. So -- but we hope that in the markets where it's consolidating will be more rational competition, yes.

The next question goes to Walter Piecyk of LightShed Partners.

I was hoping you guys could comment a little bit about Bait. I think if I look at this quarter compared to last quarter, in Mexico, particularly in prepaid, you did much better. When we look at the Bait numbers, they did worse. So I'm just wondering if that was the reason you were doing better?

And then in addition, I think Bait this week, talked about maybe getting to the postpaid market. And I'm just curious kind of how you see that kind of playing out. It seems like the model is interesting in terms of them getting usage at grocery stores, I guess, to pay for service. So just if you can comment on what's going on in the market this quarter as it relates to Bait, and how you anticipate competing against whatever they're planning to do on postpaid.

Well, I think the first thing is for us that we have been improving the prepaid. This, as I said, I think the economy is doing a little bit better. So as the economy will do better, I think we will increase more. So that's the first thing.

On Bait, I cannot talk too much about Bait because I don't understand their numbers. They said if itel said that they have less subscribers then they said that they have more the ARPUs. I don't know -- I really don't understand the numbers. So it's very difficult to compare quarter-by-quarter with Bait.

What I think, something that I see that is important is when you are a new entrant, it's easy to -- when you have nothing, it's easy to start to grow. But when you have the your base, an important base, then it's important to maintain the base. So it's more difficult to grow. It's important to maintain the base. So I think it's maybe what is happening with them. But as I told you, very difficult to understand their numbers. I don't know their numbers. It's not clear.

And -- but in our case, I can tell you that we have been growing, and it's -- we have a very good network, much better than all the other ones. And coverage, also very good coverage. So that economy and all these things are making that our prepaid start to grow again.

The next question goes to Vitor Tomita of Goldman Sachs.

We have 2 from our side. The first one is in -- on Mexico's broadband market. We saw an acceleration in broadband net adds this quarter, quite a bit of commercial effort in Mexico. Could you give us a bit more color on how you see that acceleration in your broadband volumes in Mexico in the quarter. And on whether this commercial intensity is expected to continue into coming quarters.

Also, my second question would be on the litigation provision you booked in Colombia that affected margins this quarter. Could you give us a little bit more color on that? And particularly on whether the provisioning already assumes a worst-case scenario or whether there is risk of further provisioning depending on how this goes or even if provisions being reversed?

Well, talking about the Mexico broadband. First, we increased our sales force in order to be more proactive in the market. Secondly, we reinforce all the retention areas in order to keep the customers with Telmex and now we have 91% of the customer base already connected with fiber. So we are delivering at very great speed, very great quality and another thing that has been working for us is to add into the broadband streaming platform.

So we've been adding streaming platforms, all the major ones and has been very well received in the marketplace. So I believe if this continue, we will see good figures in the next quarters.

And on Colombia, I think -- there's a case where we lost related to the content is not only for us, it's for all the industry. And what we booked is this -- we have to pay something right now that is what we book, and then we have some payments to do in the next months until the end of the year.

So less payments than what we book today, but that case is close, we lose. It's booked. It's until December. And what we already put is maybe more than half of what we need to pay and the rest is divided in the next months, and we have to pay every month until the end of the year. So we are not going to see a big payments the next months, but it's a case that is closed. It's something that we cannot reverse, but it's for all the industries, what I can tell you related to the content.

The next question goes to Valeria Miranda of GBM.

Focusing on Colombia, how are you seeing the dynamics with the consolidation there has been?

Well, the consolidation has to be declared on September. And September, I think it's the time where they are going to decide if they approve or they don't approve this consolidation. And if you see consolidation are always good for the market. Still, they are separate companies. So we don't know what is going to happen. But the consolidation, I think it's good for the market. But let's see. Let's see what the regulator or the people who has to decide in Colombia, is what they are going to decide. Let's see. Let's wait until September.

[Operator Instructions] The next question goes to Lucca Brendim of Bank of America.

I have 2 here. First, following up on Marcelo's question, can you please double-click on postpaid net adds in Brazil and break it down, according to Anatel data for the past 2 months, machine-to-machine net adds were really strong. So were there any new strategies on this front? And also, you mentioned about Nubank that is already helping with results. It is all reported in the postpaid.

And then a second question, can you also give us some color on lease expenses. During the quarter, they expanded at a higher rate than the revenues. So we wanted to understand how this line should behave going forward. Should it grow in line with revenues, should grow at a higher pace, slower pace? Any color on that would be great.

The last question, I don't understand. The first question is about postpaid and machine-to-machine. I think machine-to-machine is growing also. But I don't think there's a swap compared to the last quarters. I think it's more or less the same. But important, you have to see revenues.

Revenues are very important. And in postpaid, we are growing I think I don't have it here, and I don't have the mix on mobile machine-to-machine, but on revenues, the net adds, we have 1.4 million, almost 1.4 million, I don't know exactly how many are machine-to-machine and how many are there. But our revenue is growing at 9%, almost 10% in postpaid.

So it's very good. So a lot of this growth is on the real postpaid, not machine to machine. So -- but if you want the numbers, I think Brazil has the numbers. They report -- the numbers -- Daniela can give you the numbers. But there's not a big difference between what we have been doing the last year and the last quarters, but what we have right now.

As I said, we are doing very good in Brazil in postpaid. We are also doing good in prepaid and in fix. Also, nobody is asking on fixed. And in fixed, nobody is asking on fixed, but in fixed, we're starting to grow. We have been 2 or 3 quarters growing our revenue in Brazil. So there are very good news also increasing, putting a little bit -- putting more fiber, changing some subscribers to fiber.

Corporate is also growing, but we need to do much more in corporate. Also, I think we have a good opportunity in BMS in small and medium companies and in corporate also to do, and we are focusing a lot there. So that's the second question, what will be the second question?

Yes. The second question was on the lease expenses, lease. So how do you expect this line to grow going forward? This should grow in line of inflation or more or less than -- sorry, if revenues are more or less than revenues? And also on the first question, if you can comment if Nubank's numbers are reported under the postpaid for AMX?

It's a good question. I don't know if they have reported on prepaid or postpaid. Maybe when they are postpaid should be postpaid when they are. They are reporting in our numbers also, but I don't know how will report it, but I can check and Daniela will let you know. The leases...

On the leasing, several of the lease agreements adjust by inflation. But in many cases, they are dollar based. So to the extent that the currencies are appreciating vis-a-vis the dollar, then you should not expect to see significant changes.

The appreciation is greater than the inflation.

We have no further questions. I'll hand back to Daniel Hajj for any closing comments.

No, I just want to thank everyone for being in the call. I think we have a very good quarter. Thank you all.

Thank you. This now concludes today's conference call. You may now disconnect your lines.