América Móvil (AMX) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

April 27, 2022 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, my name is Lauren. I will be your conference operator today. At this time, I would like to welcome everyone to the América Móvil First Quarter 2022 Conference Call and Webcast.

All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

Now I'll turn the call over to Ms. Daniela Lecuona, Head of Investor Relations. Daniela please go ahead.

Daniela Lecuona

Thank you. Good morning, everyone. Thank you for joining us today to discuss our first quarter financial and operating report.

We have on the line, Mr. Daniel Hajj, our CEO; Mr. Carlos Garcia Moreno, CFO; and Mr. Oscar Von Hauske, COO.

Daniel Hajj

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

Carlos Garcia Moreno

Thank you, Daniel. Good morning, everyone. Well, the first quarter of 2022 was marked by sharp increases in interest rates very much across the board with five-year U.S. inflation rates nearly doubling and ten-year rates rising from 151 to nearly 250 as concerns of our growth inflation rates led investors to revise or projections regarding future monetary policy moves by the Fed and other Central banks.

These moves happened even in the face of the Russia invasion of the Ukraine, which initially causing inflation to come down as investors looked for a safe haven. Notwithstanding these increases in rates, the main Latin American currencies actually appreciated vis-à-vis the U.S. dollar in the period, partly as a result of interest rates going up even more rapidly in Gulf countries.

We added 3.2 million wireless subscribers in the quarter, of which 1.9 million were post paid subscribers with over half of them coming from Brazil, nearly 300,000 from Colombia and 217,000 from Austria. As regards to prepaid subscribers, we added 1.3 million with Mexico contributing 485,000, Colombia 349,000 and Brazil and Central America approximately 200,000 each. Our wireless subscriber base ended March with 219 million clients.

On the fixed-line segment, we ended up with MXN74.5 million in March, practically flat from a year before. We connected 232,000 broadband accesses, including 68,000 in Argentina; 63,000 in Mexico; bringing the total to 30.7 million accesses 2.3% more than a year before.