América Móvil [AMX] Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 19, 2022 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning. My name is Emily, and I will be your conference operator today. At this time, I would like to welcome everyone to the América Móvil Third 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].

Now I will turn the call over to Ms. Daniela Lecuona, Head of Investor Relations. Please go ahead.

Daniela Lecuona

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

Daniel Hajj

Hi Daniela. Good morning everyone, Carlos is going to make the summary of the results.

Carlos Garcia Moreno

Thank you, Daniel. Good morning everyone. Although increasingly hawkish tone by the Fed Governor on the back of continued inflationary pressures, brought about renewed increases in U.S. interest rate in the latter half of the third quarter, from the first half with 10 year rates ending the quarter at 3.33%, just making a rate of a 4% of [indiscernible], that was the context of the third quarter for us.

In the quarter we added 2.9 million wireless subscribers of which 1.9 million were postpaid. More than half of the new postpaid clients came from Brasil, with Austria contributing 329,000 subs, Columbia 215,000 and Peru, 155,000. Net subscriber gains in prepaid amounted to 1 million, with Mexico leading the way, with 402,000 net adds followed by Columbia with 300,000 and Central American and European blocks with approximately 135,000 each.

On the fixed-line platform, broadband access has increased by 156,000 in the quarter, with Argentina being the main contributor and the Central American Eastern European blocks following. Mobile postpaid was our fastest growing active group, increasing 11.9% year-on-year, 118 million followed by mobile prepaid that climbed 8.2% to 190 million. In both cases access growth accelerated in the third quarter.

On the fixed-line platform, broadband access lines rose 2.1% to 31 million, while Fixed Voice and Pay TV access fell 1.6% and 1.3% respectively. The latter appears to be on an improving trend. Our third quarter revenue reached MXN215 billion. It was up 1.8% year-on-year, with service revenues rising 3% in Mexican peso sense. At constant exchange rates, service revenue expanded 5.9%, and mobile service revenue jumped 9.7% and fixed-line service revenue remained almost flat but growing 0.2%.