América Móvil (AMX) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

July 13, 2022 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning. My name is Drew, and I will be your conference operator today. At this time, I would like to welcome everybody to the América Móvil Second 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 will turn the call over to Ms. Daniela Lecuona, Head of Investor Relations.

Daniela Lecuona

Hi, thank you. Good morning, and good morning to everyone. Thank you for joining us today to discuss our second quarter financial and operating results. We have on the line, Mr. Daniel Hajj, CEO; and Mr. Carlos Garcia Moreno, CFO.

Daniel Hajj

Thank you, Daniela. Good morning, everyone. Carlos is going to make a summary of the second quarter of 2022 financial and operating results.

Carlos Garcia Moreno

Thank you, Daniel. Good morning, everyone.

The trend towards higher interest rates in the U.S. dollar market that began in March continued unabated in the second quarter as inflation fears dominated sentiment with both short and long-term interest rates rising. By the second week of June, long-term rates peaked and began a downward trend as markets shifted its focus towards the negative impact on economic activity that would be derived from substantially higher and short-term interest rates.

By the end of the quarter, the dollar had appreciated vis-à-vis all major currencies in our region of operations, including the Mexican peso, the Brazilian real, the Colombian peso and the Euro. We ended June with 306 million wireless subscribers after incorporating 12.9 million subscribers from the acquisition of Oi in Brazil.

Organically, we had net additions of 3.1 million, which includes 1.8 million postpaid subscribers. And Brazil led the way in terms of postpaid growth, having added 779,000 subscribers followed by Colombia with 272,000.

We gained in the quarter, 1.3 million prepaid subscribers, of approximately 350,000 came from Mexico and Colombia, both more or less equal, and 257,000 from Brazil. In the fixed-line segment, we connected 186,000 broadband, of which half came from Brazil, 38,000 from Eastern Europe, 25,000 from Central America and 20,000 from Mexico.

In terms of active growth, mobile postpaid was the main driver growth at 7.9%, followed by mobile prepaid at 4.2% and fixed broadband at 3.5%. Fixed broadband access continues to decline by year-on-year basis, although the former seems to be on an improving trend.