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Good morning. My name is Caleb, and I will be your conference operator today. At this time, I would like to welcome everyone to the América Móvil Third 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, everyone. Thank you so much for joining us today to discuss our third quarter financial and operating results. We have on the line Mr. Daniel Hajj, CEO; Mr. Carlos Garcia Moreno, CFO; and Mr. Oscar Hauske, COO.

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

Thank you, Daniel. Good morning, everyone. Well, we had the third quarter with oil price repricing to a new peak in mid-September of [indiscernible] per barrel of WTI crude. Long-term inflation expectations were duly affected pushing [indiscernible] with the yield on 10-year treasury notes accelerating its gains from the week of August. These factors, together with a particularly strong nonfarmer report for that month, that exceeded expectations, were the main drivers of the first decision on September 16 to increase its policy rate by 25 basis points.

The higher rates in the U.S. supported a recovery of the dollar versus some currencies in our region of operations. The Mexican peso gave up in September, all the [indiscernible] in the first 2 months of the quarter, 20 period down approximately 2.1%. The Colombian peso managed to [indiscernible] part of this while the Brazilian real and the euro remains practically unchanged over the quarter.

In the third quarter, we added 3.1 million postpaid subscribers, roughly the average of the prior 4 quarters, as Brazil led the way with [indiscernible] additions. Colombia followed with 348,000, Peru with 229,000, Mexico with 144,000 and Argentina with 126,000 subscribers. In the prepaid segment, we recorded 5 million net disconnections primarily reflecting subscriber base cleanups in Mexico and Colombia. Notwithstanding the cleanups, we managed to post net prepaid subscriber gains in Eastern Europe Argentina, Central America and Ecuador that totaled 745,000 subscribers.

In the fixed line segment, we connected 390,000 new broadband assets. Brazil was the main contributor with 94,000 additions, followed by Colombia with 67,000 and Argentina with 53,000. Pay TV net additions totaled 50,000 units with Eastern Europe and Central America accounting for most of the growth. Mobile postpaid and fixed broad and accesses remained the main drivers of customer growth, increasing 8.9% and 5.6%, respectively, compared to the year earlier quarter. América Móvil third quarter revenue totaled MXN 251 billion, 7.6% year-on-year increase with the EBITDA reaching 4.8% margin, 0.5 percentage points increase from a year before. At constant exchange rates, service revenue was up 5.3% and EBITDA 6.7%.

EBITDA continued to grow faster than service revenue. Service revenue growth resulted from mobile service revenue increasing 6.3%, very much in line with the pace of service [indiscernible] quarters and fixed line revenue growth accelerating to 3.7% from 2.7% in the prior quarter. On the mobile platform, [indiscernible] revenue increased 7.5% year-on-year at constant exchange rate also very similar to that [indiscernible], while prepaid revenue rose 4.3%, slightly less rapidly than the pace of the preceding quarter, but very much in line with the prior quarters.

Postpaid revenue growth accelerated in Mexico, Brazil and Colombia to 8%, 8.5% and 12%, respectively. Gross rate in Chile and Peru also moved up to 11.5% and 7.5%, respectively. Operating profit for prepaid service revenue growth, decelerated in Mexico, partly reflecting the subscriber registration process mandated by regulators as well as in Brazil and Austria but accelerated in Eastern Europe, Central America, Caribbean and Ecuador. Operating profit totaled MXN 57 billion, up 13.9% from the year earlier quarter. Outpatient EBITDA growth, our depreciation and amortization charges rose only 3%.

Although net interest expense were down 11.2% year-on-year, our comprehensive financing cost increased as a result of foreign exchange losses of MXN 3.6 billion in the period compared to foreign exchange gains in the prior year. We posted a net profit of MXN 34 million in the quarter, 7% higher than in the year-earlier quarter, bringing our year-to-date net income to MXN 72 billion. In the 9 months to September, our capital expense to total MXN [ 76 ] billion. They were fully funded by our cash flow which also enabled us to reduce net debt and cash flow terms by MXN 34 billion and distributed MXN 27 billion to our shareholders by way of share buybacks and dividends.

Our labor obligations came down by MXN 13 billion in the quarter. Our free cash flow was 41% higher than that of 2025, which in turn has been 47% greater than that as the year before and which year the cash flow went to the reduction of our effect. Such that at the end of the quarter, our net debt stood at MXN 400 billion, excluding leases. It was equivalent to 1.21x net debt to EBITDA after leases down from 1.5x at the end of 2025.

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

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

[Operator Instructions] Your first question comes from the line of Marcelo Santos with JPMorgan. Please go ahead.

I think the first question I wanted to approach is the M&A pipeline and outlook for buybacks. I think in the Investor Day in New York, you mentioned that, that was a priority. I want to know how is that pipeline if there is room to increase in buybacks? I know we have been increasing so far, but I wanted to get a better feeling about the outlook there?

And the second question is about Mexican broadband. I think there are a couple of different moving parts. I mean, this was a quarter where you -- the net adds were much lower than in previous quarters. So I just wanted to get understand what's happening there. But at the same time, the revenue growth was much stronger than in previous quarters. So I just want to understand these moving parts in Mexican broadband.

Thank you, Marcelo. Well, on -- you were mentioning the Investor Day, where we provided [indiscernible] for the period '26 to '28, right? Here, what we stated a leverage ratio that we intended to remain [indiscernible] which was 1.2x to 1.5x, which is basically where we have been. And we said this had also to accommodate the share buyback or the overall distributions plus the M&A. In this quarter, we are going to have an important amount that we have to accommodate in the M&A front, which is the consolidation of [indiscernible]. As you know, the total value equipment announced started MXN 4 billion that although we still have not completed the tender offer, but it should be completed probably just after the turn of the year.

But for the most part, most of the, MXN 4 billion will be accounted for in the last quarter. And then also we have the last impairment of dividends, which will take place in a couple of weeks to 3 weeks, which is in the neighborhood of MXN 17 billion. So those are the things that we have in the immediate time on the year period. But as I said, the guidance that we provided is basically for the next -- for the overall -- for the next 2 years as well. And we don't have anything more in the M&A pipeline other than the acquisition in Peru that is waiting for regulatory approval, likely to be received until the second half of the year, and we don't have anything else on the [indiscernible] And Colombia that we think that it could be at the end of this year.

So the -- and on the Mexico broadband, Oscar can talk a little bit more, but I can tell you that we have been growing good the last quarters. And what we do this last quarter, we cleaned a little bit also our base, people [indiscernible] not consume, not paying or not consuming, and we clean it up. So that's the reason why revenues are increasing, and the net adds are not as previous quarters. I don't know what's got...

No, it is what you say, but I will add that we increase the speed of all the customer base to be more competitive in the market. And we are focused more in turn as well and upselling the customer base. That's why we had a good increase in the revenues.

And we have how many [indiscernible] already in fiber.

94% of the customers have already connected with [indiscernible]

Your next question comes from the line of Phani Kanumuri with HSBC.

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

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

Okay. And on the question of the taxes paid, they basically have to do partly with some money that we received back from the tax authorities in some countries at of Mexico, partly something having to do limited measures that we've done and then something having to do basically with the cash flow during the year, how much you pay throughout the year [indiscernible] how much you pay in the annual amount. So whenever you have paid too much during the year based on the formula that we have in different countries. And I think this is the most important thing. Then the at the moment that you present your annual returns then you basically get some credit back, okay? So that's -- it basically has to do with that. [indiscernible]

And adding a little bit more in Argentina. So where there's -- they approved the merge the remedies, we understand that there's a new company called Metrotel. There's going to move 6 million subscribers. There's only -- there's not going to be a new network. It's like I think it's going to be like an [ MDNO ] 200,000 broadband subscribers, and they have to do it in 18 months. So well, there's a lot of things going on in Argentina, but we are well prepared to still grow and that we are good in corporate business. We have a very good fiber network doing good in broadband and in 5G and spectrum and the network also quality we're doing okay. So let's see what's going to happen.

Your next question comes from the line of Walter Piecyk with LightShed.

What do you guys expect Televisa to do differently after they buy or if they complete the purchase of the AT&T assets in Mexico?

Well, it's difficult to say. I think AT&T was a strong competitor, do a lot of things. Well, it's one of the biggest companies in the U.S. and do a lot of things in Mexico. I think Televisa is also going to be a strong competitor. We think that that's going to happen. But at the end of the day, we need to do what we have been doing for a long time. We need to have the best network, good investments, 5G coverage good quality. We have almost 700 customer care centers good to take care of the people, our customers. So all of this, the distribution with Telcel is a very strong brand in Mexico. So all of that, we need to follow that and still do what we have been doing we don't know exactly what they are going to do, what they are going to change or what's going to be their strategy.

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

Got it. And then I guess, Carlos, on CapEx. I think in the past, you've cited currency moves having an impact on CapEx, given the more recent currency move of the dollar recovering, does that give you more to change CapEx there? Or is MXN 7 billion in the number? Or like how do you -- what type of moves, I guess, in currency have an impact.

Sorry, what you see this year is we have less CapEx and it's exactly because what you are saying, we give CapEx in dollars to the subsidiaries and then the movement of the currencies make that we have less CapEx in pesos. So at this time, we don't need to move the CapEx to do more -- some countries are exceeding a little bit their budgets or the ones they are not exceeding. So we -- all overall, we said MXN 7 billion, 5% plus, 5% less, and it's where we are -- and I think for next year, we're going to have the same, $7 billion, something like that. And we are still making. I don't know if we need to do a little bit more or a little bit less. We haven't finished our budget, but no major changes in CapEx. So that's what we have been doing and what we do budgeting for next year.

Your next question comes from the line of Gustavo Farias with UBS.

So 2 on my end. On Brazil competition, so we've seen Brazil mobile trends improve in this quarter. Do you believe the competitive environment is stabilizing or promotional pressures are still increasing? And my second one on convergent offers. In Brazil, within mobile service revenue accelerating, but fixed service revenue has slowed down. So my question is, as convergence becomes more relevant, do you believe investors should focus more on the total service revenue and not maybe only on or more focused on mobile service revenue alone?

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

I don't know what the competitions are going to do. But I think all of them want to have a long-term view, not only -- so maybe they have promotions, but there will be some promotions not reducing price for a year or 2 years. So let's see what we're going to get in the fourth quarter in promotions. But that's what it is. In the broadband business and the TV business, there's a lot -- as you know, there's a lot of companies with fiber as they call them [indiscernible] in Brazil. So we are growing good. We grow 90 broadband subscribers. That's good for us. And maybe we have more promotions that we used to do, but those promotions should have some time and then the revenue will come later. We are working very hard because we are just taking desktop in 1st of October.

So I see I think we have a lot of synergies. And we're going to have also good synergies on the commercial side, where we can sell to these customers or the other products that we have and to some postpaid or mobile customers that we have, we can sell also where we have fiber this new because Desktop has around 4.8 million home passes and made more than half of that, we are not in those areas.

A greenfield [indiscernible]

Exactly. So we're going to have a lot of opportunities there, and it's what we're focusing. So these next 6 months, we want to integrate the company and take advantage as much as possible to all these desktop subscribers that we have and the mobile that -- where we don't have a footprint of fiber to give an offer fiber to them.

And just a comment. We haven't made any changes in the allocation of fast-lane revenues as the different services, okay? So between broadband and Pay TV and voice, we haven't made any changes in the way how we allocate those revenue.

Your next question comes from the line of Rogério Araújo with Bank of America.

I have a follow-up on the Brazilian market regarding pricing outlook and also on the sales autonomy. Given the limited front book price increases this year, how do you see the pricing outlook for next year? And if you could be more specific on unlimited what's happening in prepaid as well. We noticed that [indiscernible], they took it out from their plans if [indiscernible] could follow? And then if there is any expectation of prepaid price increase after several years of flattish prices? And also, if you could tell us a little bit on the strategy for pricing of new sell if they have full autonomy or if [indiscernible] participates in those decisions and what to expect for -- looking into '27?

The first one, [indiscernible] . I think we have an agreement with them and they can do whatever they want to do inside this agreement, okay? Now they can decide the prices alone. But they do, let's say, they reduce the price, I don't think we're going to reduce the cost. So they have -- they are going to manage their prices on the area that they can do. So that's what the agreement that we have with NuCel. I think they are doing good they have good customer base and they are still growing and doing good as an MVNO. So NuCel is doing okay.

On the promotions and in what's up and prepaid promotions. It's sometimes it's very difficult to increase the price of the card. So what I think it's better if you want to increase the prices to take out some promotions. And that's what we do on the what's up inside the card. So take promotions, and it's a little bit increasing the price. So I think that's more or less the way to do things in prepaid because if you sell at MXN 100 [indiscernible], it's difficult to do it at MXN 103, so it's not so easy. You can do it, but it's not so easy. So sometimes it's better. I'm not saying that always, sometimes it's better to reduce the [indiscernible] the time of the card. So that's a way to increase price or take out some promotions or increase the card or take out some [indiscernible].

So there's a lot of things. And in postpaid, well, you can increase price. I don't know. I can like to you if I can tell you what is going to be our price strategy for next year. Of course, there's inflation in Brazil. Costs are increasing. But I don't know if we are going to be allowed [indiscernible] competition to increase or not increase prices. So still, we haven't discussed that. And we we're sure that costs are increasing but we don't know we still -- if we are going to increase or when we are going to increase prices or take out some promotions.

So that's what we have -- what I can tell you is that the promotions in broadband are high and where we're going to still and we will remain competitive and do what we need to do to be competitive in all the segments in Brazil. So that's what we do and what's what we're going to do this year and next year.

Okay. That's very clear. If I may, one follow-up on the agreement with NuCel that you mentioned. You mentioned the cost if they reduce price, not necessarily this cost will reduce, but is this case with Claro increases inflation on an annual basis or any other rates? Is there automatic inflation pass-through on those costs?

I don't remember the agreement, but I don't remember the agreement that we have with NuCel, but I don't know if it's inflation or effect for 2 years, I don't know. I don't remember really the agreement that we have with them.

Fair enough. Congratulations on the results.

Your next question comes from the line of Jesus Romo with GlobalData.

Congratulations on the results, I have a couple of questions about the dynamics postpaid and prepaid in Mexico. And I wonder if you could add more color. The first one is regarding postpaid. I see that your -- you had a substantial growth in net adds over 10,000 which is one of the best quarters lately and [ 88% ] increase in postpaid revenue. I wondered if you could add some color on what are the dynamics that are pushing postpaid for were in terms of both subscriptions and revenue, if it's related to IoT, to renewals or clients are demanding more data and on prepaid, just to clarify, if part of the net losses that you posted for this quarter are related to the prepaid registration mandate in Mexico.

Well, we're talking about postpaid. I think in postpaid, we're doing an excellent job. I can tell you that all the customers that are coming to renew their plan in our customer care centers, are moving half of them are moving to a better plan. That's a good ARPU, and that's the reason why revenues are increasing. We have a source of revenue is new customers, but other source of revenue is that the customers are jumping to a new plan, and that's -- and it's better for them, better for us.

The second is the migration from prepaid to postpaid. We're having more. And since the registration of the number. I think more people are coming from prepaid to postpaid and people is using also more from 4G to 5G. So I think we are the only ones who has a very good 5G and coverage network in Mexico and that's what you are seeing. So that's more or less what we have in postpaid. And in prepaid, well, we have these connections and not disconnections that sometimes it's people that only use one time, they take the card and move it. So those are people that we are disconnecting and we still are in the process of registering all the numbers. It's every 15 days.

It's a new number that people have to register until the end of December and will still a long way to go there. But yes, people are so people are not people that are consuming are not also wants to register. But well, that's what we have there. And I think at the beginning, we are going to have a little bit of reduction on the prepaid revenues, but in the mid run, I think this is going to recover. So what we have. So people is taking more time to register the number. But at the end of the day, I hope and I don't think that people is going to stay without a phone or without connected because of the registration. So it's going to take time. Maybe in the short term, we can have like a slowdown a little bit on the revenues on prepaid, but in the mid along, then we're going to recuperate that. So that's what -- that's the way I'm seeing things, okay? In the other side, post things are going very well, and people is consuming and upselling and doing good.

Just to add to what I'm really saying our ARPU posted growth in Mexico in the quarter [indiscernible] we see that for the last 3 years, at least, we are seeing a continuous acceleration of poster ARPU both, which is quite significant.

One follow-up, if I may. Regarding postpaid, I understand that these are mostly like consumer trends. Do you see that the corporate of the B2B side of the operation is also helping the postpaid revenue in this year?

Yes, we're having more corporate. The corporate is helping a lot on the fix on all these data center cloud and all these services is growing very good this quarter in the big side and also is doing good in the mobile. So we are -- yes, as you are asking, yes, it's been good to corporate customers.

Your next question comes from the line of David Lopez with New Street Research.

Congrats on your results. Just one question on Colombia, please. It's another very strong quarter for Colombia. I was wondering if you can comment on what's working well there. I also comment on the ARPU growth this quarter and how sustainable this kind of performance is in Colombia?

Well, in Colombia, if we go back 5 years ago, when one enters they do crazy promotions with a lot of data, the cards hold the market, what [indiscernible] that passed. And we have been since that, we have been growing, and we have been doing good. We do -- and we focus as we're focusing in Mexico, good network, good customer retention, good upselling. We have a lot of upselling there, very good upselling. And one of the things that we have is we have the biggest 5G network because they launched they launch the -- well, they sell the spectrum and we do -- we start to since the beginning.

So we don't have to wait to do the network. We already do invest in the 5G network. So we were the first, the starters in Colombia, in the market, and that is helping us. That's the reason we have a very good coverage. We have a good network, and we're growing also very, very, very good. So that's what you are seeing in Colombia.

And maybe a quick follow-up. While you mentioned spectrum. What is the next big option coming in your main markets, please? .

Well, in which country?

Across your markets, which one will be the largest ones coming?

I think we have -- I don't remember [indiscernible] but I think we have something in Honduras for the end of the end of this year to do 5G, but nothing -- I don't remember other auction. We don't need it at this time.

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

Just talking about the smaller markets. You also delivered strong results in Peru and Ecuador. Anything to call out here or in any of the other markets we didn't discuss?

I think -- well, I think we're doing very good in Ecuador. Ecuador is growing good we have a strategy on Fort play. We're doing fiber. It cost us a lot of time to understand the peak business in Ecuador. What I think we have been having like maybe 2 years doing good, increasing our fiber footprint, taking good customers giving TV. So all of that is working good. And the economy of Ecuador is also improving. That's why we have a very good increase in the postpaid -- sorry, prepaid the ARPU also increasing revenues.

So things are going better in the economy, and we are doing better in fixed and in mobile, starting also incorporate customers there. So well Ecuador has been doing good. all Central America, we have outstanding results in Central America, growing in all the countries, moving a lot more on fix, moving in 5G, all of Central America is doing good, reducing a lot cost and expenses, all these small countries we are really not the small countries and something that we haven't talked about is that we have been improving a lot in cost and efficiencies with some of AI platforms that we think are very convenient for us.

So we are understanding more of our customer and doing a lot more things on the cost, call centers, cost side and all of that. So we are having like a big strategy and cost control with all AI platforms and Oscar can talk a little bit on that.

As we mentioned, we are focused on the main agents and helps us to reduce costs. And we are more focused on customer interactions and some part of the network that has been helped us to reduce costs in call centers and maintenance in the network.

And contact the customer faster and solving the problem faster on the [indiscernible], let's say, in the broadband AI is helping us to go faster, to solve the problem, to attend our customer. All of these things were improving, and we have like a 3-year plan improve every day on all of these areas. So that's Peru is doing also good we have more competition, but Peru is doing also good. We have the third at the third operator that is very aggressive in pricing. But we have convergence, we have all of that, and we hope that we can close our company that we buy and consolidated as soon as possible in Peru also.

And just on [indiscernible] Central America, just to give you an idea service revenue growth in Central America in the quarter was 11.4% and EBITDA growth, again, in the region was 16.1%. So Central America, which is a collection of small countries, I would say, [indiscernible] it's a very significant block. It is doing extremely well. And the [indiscernible] very stable currencies and the very resilient growth.

Your next question comes from the line of Emilio Fuentes with GBM.

My question is regarding the Televisa acquisition of AT&T. There's been rumors circling around of how Televisa could bundle both its current speed services with AT&T's mobile services. Related to this, do you expect to receive permission to also offer both fixed and mobile service bundled in Mexico?

Well, I think, yes, it's -- they already have -- they are going to have all the services. And I hope the government will allow us to do all the services also. So I think they should do it. There's no reason not to do it.

And as I told you, again, I think strategies are okay. But then you have to have a lot more things on not only a bundle strategy, then you have to have good coverage, good networks with distribution customer care center, you have to have a lot of things. And well, that's something that we have been working and we're going to still work on that.

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

I just thank everyone for being in the call. Thank you very much.

Thank you all.

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

Good morning. My name is Caleb, and I will be your conference operator today. At this time, I would like to welcome everyone to the America Movil Second Quarter 2026 Conference Call and Webcast. [Operator Instructions]

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

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

Thank you, Daniela. Welcome, everyone, to America Movil's second quarter of 2026 financial and operating report. And Carlos is going to give us a summary of the results.

Thank you, Daniel. Good morning, everyone. Well, we can see that throughout the second quarter with the Iran war raging, oil prices remain elevated, picking meat roughly 70% higher than prior to the war. This brought about greater concerns regarding inflation worldwide and the expectation, and in some cases, the reality of higher interest rates, including those at the long end of the year. [indiscernible] U.S. treasury notes reached their highest yield in nearly 20 years.

However, in spite of the supporting dollar rates, the U.S. dollar did not grow stronger against most currencies in our region of operations is in the quarter and in fact, actually depreciated 6% versus the Colombian peso. In the second quarter, we added 3.5 million postpaid subscribers with the filing be way with 1.5 million subscribers. Colombia followed with 250,000. Peru, we had 173,000, Argentina with 154,000 and Mexico with 101,000 postpaid subscribers.

In the prepaid segment, we raised 3.7 million net losses as Colombia and Argentina cleaned up their base. In the fixed line segment, we connected 531,000 new broadband accesses. Mexico was the main contributor with 170,000 accesses followed by Brazil with 83,000 and Colombia with 74,000. As regards to Pay-TV, we added a current 110,000 units, with most of them coming from Argentina, Eastern Europe and Central America. Mobile postpaid and fixed broadband accesses remain the main diverse growth of our customer base, increasing at an even faster pace, 9.1% and 6.1%, respectively, compared with the year earlier quarter.

Second quarter revenue was up 3.1% year-on-year in Mexican peso terms to MXN 241 billion, and service revenue increased [ 3.4% ] and EBITDA [indiscernible]. Compared to a year earlier quarter, the Mexican peso appreciated significantly versus the dollar and the euro, 12% and 9% [indiscernible] while remaining flat basically Brazilian real and depreciating 3% versus the Colombian peso. At constant exchange rates, service revenue was up 1%, while EBITDA increased 5.3%. It would have increased 6.7% absent a one-off charge in Mexico.

Mobile service revenue maintained the preset has observed over several quarters, 6.5%, while fixed line service revenue accelerated to 2.7% from 1.7% the prior quarter, with the downward trend in line growth coming to an end. On the mobile platform, postpaid revenue expanded 7.2% as in the preceding quarter, with prepaid revenue growth continuing to accelerate to 5.3%, up from 3.1% a year ago. Mexico, Colombia, Central America and Western European blocks were the best performance in terms of improved mobile service revenue growth.

Regarding fixed line service revenue in the residential segment, both broadband and Pay TV revenue grew somewhat more rapidly than in the preceding quarter, 4.2% to 5.4%, up from 3.1% to 4.6%, respectively. B2B revenue growth remained stable at [ 4.0% ]. Mobile, Peru and Central America all contributed to the improvement in broadband revenue growth. As for the recovery in the pay TV segment, Brazil was the top performer, moving up from a 4.7% pace to 7.5%, okay.

Operating profit totaled MXN 51.8 billion and was up 9.5% in Mexican peso terms. Our comprehensive financing cost rose to MXN 10.4 billion, reflecting lower foreign exchange gains that more than offset lower net interest costs. Our net income totaled MXN 24 billion, a 9.2% increase from the year earlier quarter. It was equivalent to MXN 0.40 per share and [indiscernible].

Throughout the first half of the year, our capital expenditures amounted to MXN 48 billion, our share buyback to MXN 4.6 billion and the service of our labor obligations to MXN 8.4 billion. These were all covered by our cash flow, which together with net dividend income of MXN 1.1 billion, allowed us to reduce our net debt and cash flow terms by MXN 30.9 billion, you can see the increase side. Excluding capitalized lease obligations, net debt totaled MXN 402 billion at the end of June, which represented 1.31x last 12 months EBITDA after leases.

So with that, I will conclude this presentation and we'll pass the floor back to Daniel.

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

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

Congrats on the numbers. We love the deleveraging we saw. My question would be regarding competition in Brazil, you mentioned a more competitive and promotional environment in Brazil. Which segments are most concerned? And how does this entry-level hybrid plants such as Claro [ Flex ] fit in these scenarios? So I'm asking specifically about the new around BRL 30 per month low-end hybrid plants that all the 3 mobile carriers launch.

Thank you, Leonardo. We're talking a little bit about Brazil. I think in Brazil, we have a lot of things. So the first is, well, if you see 1 year ago, second quarter, the growth was very size. So the comparative between second quarter last year and second quarter this year is a little bit difficult because second quarter of last year, the growth was higher than it used to be in the other quarter. So it's difficult comparison between quarters, okay? That's one of the things.

The second, no doubt that the market has been more promotional where we have seen -- where we are seeing more promotions are in prepaid and in postpaid. What you see -- what you talk about the Claro Flex, I don't think there's any change on the trends on Claro Flex, postpaid, prepaid. I think everybody is more or less seeing the same trend. So we are not selling more cheap postpaid or more cheap prepaid.

So we are seeing the same trend. The only thing is that promotions are becoming a little bit more strong. I still think that we're going to have a recovery in second, but better in third, but more in the fourth quarter, i.e., we're going to see again a little bit more growth in mobile. But well, if promotions and our competitors are more aggressive, then we need to be a little bit more aggressive.

So I'm not sure what is going to happen in the next months, maybe the promotions are not so aggressive. But we don't know. So it depends a lot. We are following them since May. TIM and [ Vivo ] has becoming more aggressive. So we have to follow and we're going to follow that. So that is what is happening.

In the other side, in the fixed side, we are being and growing revenues. We are growing revenues from, let's say, we have -- in Brazil, I can tell you, we start with 1 year ago, 1.5% growth, then 1.8%, then 2.6% and today, 4.1%. So in the things are going better and things looking stronger. So we -- at the end of the day, we have a very strong network. We are doing very good in [ Pachi ]. We are investing in customer care. We have a very good NPS. We are doing convergence. So if the market is aggressive for this moment, then we're going to be a little bit more aggressive. And in the future, it things are going the other way and less promotions, then we're going to see better revenue.

So we are still gaining in mobile portability. We are the gainers in postpaid in mobile portability. So all overall, we are looking Brazil good. And the other thing important that you can see is that we think and we're feeling a little bit a slowdown in the economy. That's also one of the things that we're looking how -- why revenues are decreasing a little bit because the economy, we see a little bit of a slowdown, but it's too early to see.

Let's see what's happening in the next months. And then we can find -- if the economies -- the trend is going slow or it's going to stay the way it is. So that's more or less what we have in Brazil, Leonardo.

Your next call comes from the line of Marcelo Santos, JPMorgan.

Thank you for the opportunity to ask questions. I wanted to ask about the Mexican prepaid performance. The revenue growth we are seeing there has been accelerating every quarter for many quarters already. Usually, you discussed this in the light of improving Mexican economy. But what we hear from consumer companies, it's kind of not such a great story in the consumption side, yet your performance is good. What kind of initiatives have you been pulling forward? What is happening in the competitive environment from inside or outside of America Movil that's helping you to deliver these results?

Well, as you said, we think that the economy, at the beginning when we were almost flat in prepaid, and we're growing maybe 1% in prepaid was maybe 2 years ago, when we think that the economy was in a slowdown period. But right now, I think the economy is going back. And our prepaid customers are consuming, are recharging more and are charging higher cards, higher prepaid types, okay? So instead of charging MXN 50, they are charging MXN 80 or MXN 100. So people is starting to use more and more 5G. In Mexico, really, we're the only one that has a very good 5G network, and that's also helping us a lot.

And on the other side, we have a little bit more coverage. So we're gaining some good subscribers that we don't have. We're starting to do a little bit more coverage in some places. But all overall, is we have a very good base on prepaid. We -- difficult to say, but we have a lot of our prepaid customers are consuming. So we don't have a base that some of them are consuming or they are maybe 1 month consuming and 2 months not. So all these customers are -- every month are charging and using more data. So those are the things that are helping a lot on the prepaid side. So our base of people with recharging is growing, and that's very good for us.

Marcelo, just a small net on the economy. As Daniel points out, I think that the economies on the recovery path, it is coming back. I think at this stage, it's very uneven, so it's not affecting all the sectors same way.

But I'll give you the 2 reference points. As of June, we have registered the highest ever volume of sales of automotives, highest ever. And the growth of the automobile sales are almost identical to our prepaid revenues, the growth of the prepaid revenues. You just put it in perspective.

Another reference point is if you look at other services like restaurants, they are booming. All sorts of rest of Europe, high end, low end, all of them are booming. So it's a little bit uneven. You have some sectors that are doing particularly well, some other sectors that are still not growing.

Your next question comes from the line of Phani Kanumuri, HSBC.

My first question is on Mexico mobile revenue growth. It has registered a very strong growth. But I'm wondering if it had any positive impact from the World Cup that is happening in Mexico, are you seeing higher roaming revenues? Have you seen higher growth in June compared to other months?

The second question is also on Mexico. How is the progress happening on the mobile registration? And how many -- what percentage of customers have already been registered on this front?

The first one, I think the World Cup impacts a little bit. So I don't think it's too much. There's not -- the World Cup was not only in Mexico, not only -- we have only like 7 games, something like that. So there's people coming. We see more roaming here in Mexico, more people using.

It's not only the roaming people is using more, it's looking -- we have a very good 5G network. So they are looking at the games in the iPad, in the phone. So that will have a little bit more consumed, but that will be only 2 weeks in June. So it's not too much.

But what we are seeing is that a lot of our customers who are coming back to our store and wants to renovate, they are renovating. Maybe I can tell you that maybe half of our subscribers are upgrading their plan. So that's very, very important. So they want to use -- they want to have a better plan. They want to use more, they want -- they are using more of the handsets. So that is what is giving us on postpaid, a very good growth. So a lot of our customers are moving to a higher plan. So that's what you could see.

The market is very competitive as we have a lot of competition in the market. But as I said, we are the only really 5G network, very good network all around Latin America. We're working a lot on quality, where we're working a lot on speed, customer care. So we're trying to give our customers the best service, and that is making us to grow that.

So -- and in the registration, well, for now on, there's the -- what we said in our -- is that there's going to be new date for the registration. The dates are going to be depending on the end of your number is where you need to be registered. It's going to be only prepaid subscribers. The postpaid are already in. So they are not -- they don't need to register the postpaid subscribers. And I don't know exactly the number on the industry, but there's still a lot to do on that.

So every month, every 15 days, every month, there's going to be a new number, and then you have to register your prepaid numbers. So that's what it is, starting 15 of Augus and ends on, I think, end of November or beginning of December. And well, that's what the authorities are saying, and that's what the people needs to do in prepaid, they need to register.

Since January, all the people, all the new customers that all of the company has to be registered. So since that, all of them has to be registered. And this is only for the actual customers that need to register their numbers. So that's where we are. And we hope that all of them will register.

Your next question comes from the line of Rogerio Araujo, Bank of America.

I have a couple of questions. The first one on the line other financial expenses, it rose to roughly MXN 6.9 billion in the quarter. This was a 40% increase year-over-year. Could you please break down what drove that increase? But specifically, how much of this relates to cash outflows tied to your labor obligations and pension funds? We saw this was nearly MXN 6.9 billion in the quarter as well.

Also looking forward, what level of annual pension-related cash outflow should we model given the maturity of the Telmex plan? This is the first one. And the second on [ Nucell ]. Could you gently walk us through how it's reflected in our accounting and KPIs? Specifically, are new sales users counted within your reported subscriber base and net adds, we think so. But if you could confirm? But also how is the economics recognized, full revenue or only Claro's revenue share? So we can have an idea on how this impacts ARPU. And finally, how should we think about the associated network commercial costs and margin profile of [ Nucell ] in your results?

Thank you, Rogerio. On the first question, on other expense -- other financial expenses. Basically, what we are reflecting is partly a little bit of the elements of the fine that was mentioned a while ago. Because as the first ruling was some years ago, part of the finance of being financial expenses, what was -- financial penalties that were accrued since the initial ruling, okay?

The other part that is imported in other expenses, generally -- and this is -- you will see it all the time, is that that's where we have the hedging -- the currency hedging transactions and a lot of things. So typically, when you are gaining on FX, to the extent that those gains have already been -- or those gains are already been hedged, you are giving back part on the expenses. It works no positive directions, both cases, okay? So that's part of it.

So it's part the fine and partly expenses.nothing to do with the pension, the pension are accrued and accounting business, what we are showing here is an accrual basis. It's not on a cash flow basis, okay? And the accrual basis, there's no change.

And on new cell, there's 2 types of MVNOs in Brazil. The one, we call them [ a Creditagos ], and the other ones authorized MVNOs. [ Nucell ] is the ones that are like [ Creditas ] that they work like a agent, commercial agent, and those customers count as our base. We count them as in our base in Claro. So that's the way we count. So all the [ Nucell ] subscribers are inside Claro customers.

Okay. Perfect. And the revenue is the full revenue charged by [ Ncell ] that answers your...

The revenue is the part that is including in that our revenue and the rest is new sale revenue. So we divide that. So that's where we have. But [ Newell ] has been working maybe for 1 year or more, so more.

Your next question comes from the line of Emilio Fuentes.

My question is regarding capital allocation. I was wondering, given the current weakness we've seen in the U.S. dollar and how this could benefit your investment needs, do you see any downside risk to your full year CapEx guidance? And if so, and given you're currently standing the lower end of your leverage ratio, do you see incremental free cash flow as being destined for share buybacks?

The weak dollar, it's difficult for us in CapEx because then for the same things that you do, then it's going to be more dollars. So we need -- on dollars, it's more dollars for the same budget that we have. So it's -- in terms of the CapEx, it's not helping. Well, in terms of revenues, it's helping. So that's where we are and we're deciding what to do. But in CapEx, it's a little bit more but we are in the target that we have, MXN 7 billion, and it's at MXN 7 billion, a little bit more, a little bit less, what we are in that target, and we're not going to move on that.

And the second question, can you repeat it, please? On the leverage -- the leverage you...

Do you go... I think incremental free cash flow. If you see an incremental cash flow going for buybacks?

No. No, I think what we have consistently. At least we first determined what our leverage ratio is meant to be, okay? So we need to look at our leverage rate, considering the expenses that we are already committed to bake, which will include the purchase of Desktop, which likely is going to close this year, okay? That's our expectation in any case, okay? So we basically manage to stay within the range that we have said. So it's not more than 1.5x net debt to EBITDA, not less than 1.2x. That, you can see that we have some limits in terms of how much we can reduce our ratio at this point.

And what we -- and also adding another thing that we just announced yesterday, the WOW acquisition that we have, I think, makes a lot of sense for us in Peru. It's some -- more fiber, like 3 -- more than 3 million houses passes with fiber. 0.5 million customers and make a lot of synergy with us. So -- and we're open to see more of those acquisitions. So they are good for us. We're going to -- they are broadband customers that we can sell prepaid, postpaid or TV also.

This network is outside of Lima. And it's a good complement for us, help us also the fiber to do corporate customers that were growing and doing very good there, a small business as a scary saying. So we are also looking for other good acquisitions that we can have.

[Operator Instructions] Our next question comes from the line of Ernesto Gonzalez, Morgan Stanley. Excuse me, our next question comes from the line of Carlos Sequeira, BTG Pactual.

So I have one question, please, and it's related to M&A strategy in Europe, if you can let us know what you were looking at, what makes sense for AMX at this point, remind to you were, please?

Well we are open to see everything. But what we're really looking is this type of companies like Desktop, like WOW that add fiber customers, that are -- the fiber complement to our fiber network that we can sell more things to those customers like prepaid, postpaid. And as I said also, the fiber will be in the small and medium companies have a lot of synergies. I think we can have a lot of synergies with this company. So those are the companies that we're looking. So we are not looking to go outside right now to other countries, but we are looking things inside our countries that will make us grow a little bit faster and consolidate the market. Consolidation of the market will be important.

Your next question comes from the line of Ernesto Gonzalez, Morgan Stanley.

So it's two questions. The first one is on Colombia. You delivered really strong results consistent with past quarters. Could you talk about how you see this market evolving especially now that some time has passed since the acquisition of Telefonica closed?

And the second question is on Argentina. Given the recent competition authority's resolution on potential consolidation in the market, does it change how you view the long-term outlook for Argentina? Or any comments you can give are greatly appreciated.

Well, good that you're talking about other countries. So Colombia, I think we're doing very good in Colombia, growing very fast in mobile. We were the first one in -- let me tell you, we're growing from 7 in to 7.6, then to 10, the growth in mobile revenue. So we do -- we were the first ones that do 5G there. We have a very good network, and portability is going well with us. So that's the reason why we're growing.

Also, a lot of customers are moving to higher plans. We work a lot also service, quality, speed. So all of that is making that our customers will use more, the service and that new customers are coming to our network. In the other side, in the peak side, we are moving also to do more fiber is more challenging. Mobile is more challenging, but I think we can grow. We are doing fiber. We have a good network, good sales and distribution. So I think we're going to do much better in the figure.

As well in Colombia, as was saying, I think on the segment on corporate segment, we are growing pretty nicely in Colombia as well.

Okay. So good in -- good in mobile, good in corporate and moving to be better in broadband and fixed in TV, mobile and broadband and fixed TV. So that's where we are. And in Argentina, well, in Argentina, we're going to compete against a big competitor there. But nothing else to do, so we have fiber. We have good broadband. We have 5G. And we're growing. So that's what we want to do, and that's the same strategy that we have, do fiber to be more customers in broadband, in TV. And we are competitive in price. So we have good prices there. So that's where we are.

We're growing also very good. We don't say about Peru, but in Peru, we're growing very good in broadband, very good in corporate segment. The growth in Peru, I think on the peak side was around 12%. So it was incredible, the growth in Peru. And that's what we are doing and looking to still grow more there. So there's a lot of opportunities in the corporate segment also in Peru.

Your next question comes from the line of Rogerio Araujo, Bank of America.

If you could provide more details on the regulatory fine of MXN 1.3 billion on Telmex? What are the reasons behind it? And also the potential recurrencies of regulatory fines going forward?

Well, this is something that dates back to 2017. And in 2020, this fine was imposed on an alleged violation of asymmetric measures. So we contested the fine, and now in June, it became final. So we believe it's this proportional. It doesn't make any sense, this fine. It's 6% of the revenue, which is the minimum accordance to the law. And we think it's completely absurd, what they do.

So unfortunately, at this stage, we cannot do anything. So that's what we have. So it's not on Telmex. It's on Telnor, an affiliate of Telmex, and that's what give us the 6%. So -- we don't think -- we think those fines are absurd. So we hope and we don't think there's going to be any more of those. So let's see.

Your next question comes from the line of Marcelo Santos, JPMorgan.

I just want to circle back to the first question regarding Brazilian mobile. So based on what you said, like you expect the growth to improve in the third and fourth quarter. Do you see room to increase the control prices, the mobile control price, hybrid prices this year or not? Could you make some comments on that, please?

I think we can do increase our prices, but whilst there's a lot of competition in Brazil. So we are not going to do anything on that until we see -- we -- at the end of the day, we're going to be competitive. We have the network, we have the coverage to be competitive. And if there's 1, 2 or 3 months or quarters that the promotions are more aggressive, then we're going to be there. If there's -- that happens in May with [ Vivo ]. So in May with [ Vivo ] we need to put more promotions, and we think we need to put more promotions and to be more aggressive. So that's what we do in May and June.

We don't know what is going to happen. As I said, where we don't control the competition. We control what is internal in the company, not the competition. So I don't know exactly what they are going to do. But in Brazil and in all the countries we are prepared to compete, and they do more promotions than we're going to do more promotions. And if the promotions are not relax them, we can relax the promotions.

But we are a long-term player. And if it's for some quarters or 1 year that they're too aggressive, well, that happens in Colombia, like 3 or 4 years ago, with the entrance of the new competition there, very aggressive, well. And today, we're growing. And we do what we need to do in the market in our network in training our people.

And other thing that we're doing is worth using and starting to use a lot more AI agents, a lot more AI, and it's going to help us to reduce costs. It's going to help us to understand more our customers and to see what opportunities we have. It's not a short term. I think that's something that we're going to do on long term. And it's going to help us in the -- we are seeing that we are growing more, our EBITDA than our revenues, and that's because we are controlling our costs and expenses.

So that's where we are. That's really the strategy of the company all around Latin America and in Europe. And well, in some countries, maybe we have some competition 1 quarter or 6 months, in not 1 another one. And while we are prepared to do that. So that's where we are, and that's our strategy.

Your next question comes from the line of Walter Piecyk from LightShed.

So in Mexico, you've had very good margins for quite some time. I think they stepped up a couple of years ago, but you are -- you do show revenue growth there. Just curious if there's a way to further leverage that to take margins higher specifically in Mexico?

Well, what I said, so we are really working hard to control costs, to control expenses to find ways that will be good for our customers to increase their plan because we don't want that we sell a better plan and the people and our customers don't use that plan. We want that -- what we sell, they use, they will be happy. We want customers for a long term. So we don't want customers for short term.

So of course, if we can find a way to increase more revenue and to us and to control costs in all the companies, of course, the margin will increase. I think all overall, this quarter against last quarter of last year, the second quarter of last year, the margins of all the companies increased a little bit. So -- almost, not all, but in almost all the companies, our margin of EBITDA increased this quarter.

Okay. And then -- sorry, this was touched on before, but the fiber acquisition and maybe potential other acquisitions, I assume it's not going to negatively impact the -- what has been a good trajectory in terms of capital return with dividends as well as share repurchase. But related to that, I mean, you have -- you still have a stake in Verizon. Is there any thought of monetizing that stake in order to provide additional cash for acquisitions or capital return? Obviously, the leverage ratio of the company is within your target range. So just kind of curious how all those all those things fit together in terms of maybe selling Verizon, how much fiber more to build and whether we're going to see a big step up more in capital return in '27?

Well, the past -- these first 6 months was really good. I think we increased a lot, our cash flow. But still, we need to give the dividends, the dividends for the second half are there. So -- and with the dollar appreciated, it's a lot of dollars, what we need to give. So it's good.

And no, I think what Carlos is saying, so we have a target. And then at the end of the day, we can use that -- it doesn't have to be immediately in the short term. I can tell you that in the long term, there is going to be acquisitions if we have acquisitions and return to capital to the shareholders and reduce the debt. Those are the three things that we have.

We want to be as financial health as possible because, well, maybe we can have other opportunities in the future. So that's what we are. Still, what Carlos is saying, we need to pay the acquisition of Desktop at the end of the year. So all overall, we are going to be looking for those three things, acquisitions, returning capital to shareholders and reducing debt. So that's where we are.

Is there any reason...

But we can -- what we are not seeing the things in the short term, okay? So today, what is today and then tomorrow, we need to see a little bit more on medium and long term to do all these things, okay? So that's where we are. We -- I still personally think that there will be more opportunities like Desktop, like WOW in the future. And let's see, that's why we want to be healthy and to be prepared to do those things. That's appreciation.

And why continue to own Verizon?

Well, Verizon, when the sale was at some price, we saw some of that. We are -- we take the decision to sell half of that. We haven't made the decision of the other half of that. So we are looking for that nothing that -- that's not -- we are sure that in the future, we are going to divest. Maybe, we don't know exactly when. Nothing, we're not going to hurry. So there has to be a good price, and we are not going to hurry to do that.

They're a pretty good price. It's a pretty good price right now.

Yes. We saw this 1.

Your next question comes from the line of [ Jesus Romo ], [ Global Data ].

Just a quick follow-up on the Mexico numbers, specifically the prepaid subscriber numbers. I noticed that you had positive net [ adds ] in Q2 2026 versus Q1 2026. And since we're in the middle of the -- we're still on the ongoing registration process, I wonder if you could share a little bit of color or the factors that guided to have positive net [ add ] numbers in this quarter, positive promotions, the World Cup, mobile portability or a combination of factors?

So look, let's -- it's very difficult to explain what is happening since the registration in January is with the new customers. It's very difficult because some customers decide not to renew because if they renew, they have to register. So people are not registered, but we have less disconnections. So a little bit less cells, but less disconnection.

But it's very difficult. The way we still were seeing and trying to understand what people is thinking, but change a little bit because people used to buy very cheap and then use and then buy another handset and then use -- the behavior of the prepaid subscribers are changing a little bit, and we need to see. But at the end of the day, the most important thing in prepaid is the amount of revenue that you are getting per month. And I think that's what is doing good, and we are doing fine on that.

And just to give you a reference point. Net adds -- prepaid net adds second quarter were 146,000 in Mexico. A year ago, second quarter of last year, they were 83,000. And 2 years ago, they were 106,000. So if you look at the last 3 years, the second quarter has given better net adds in prepaid.

And other thing that is happening in all the countries is that there's a lot of people moving from prepaid to postpaid. So in some countries, they are moving more from prepaid to postpaid. In other ones, a little bit less.

But as people is understanding that, well, the handset is part of the life of the person. So they are moving when they can, they move to a postpaid and in postpaid, they hire more data and more applications and do more things. So that's going to be the trend for the next 5 years. There's going to be more people moving from prepaid to postpaid.

Just a quick follow-up, if I may. Do you perceive there is an effect of customers coming in from [ Movistar ], now that there is an announcement of a deal, not an approval yet, but there's an announcement of [ Movistar ] changes. How do you think that customers?

I think it's difficult that the customers -- all the customers will know that the company is going to be for sale or not for sale. Some of them know, other ones, no. But I think what we have is the number portability, we have been gainers in number portability, and we still are gainers in -- we're gaining number portability.

So I don't know exactly if it's because the company was for sale and then it's still not for sale or they are not selling because they are not -- don't have the -- I don't know exactly what those regulatory is happening, but while we are gaining customers from all the companies.

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

We thank everyone for being in the call. Thank you very much. Bye-bye.

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

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.