América Móvil S.A.B. de C.V. (NYSE:AMX) Q4 2023 Earnings Call Transcript February 14, 2024 10:00 AM ET

Company Participants

Daniela Lecuona - Head of Investor Relations

Daniel Hajj Aboumrad - CEO & Director

Carlos Garcia Moreno - Chief Financial Officer

Oscar von Hauske - COO

Conference Call Participants

Vitor Tomita - Goldman Sachs

Walter Piecyk - LightShed

Marcelo Santos - JPMorgan

Phani Kanumuri - HSBC

Fred Mendes - Bank of America

Carlos Legarreta - Itau

Operator

Good morning. My name is Candace, and I will be your conference operator today. At this time, I would like to welcome everyone to the América Móvil Fourth Quarter 2023 Conference Call and Webcast. [Operator Instructions] I would now like to turn the conference call over to Ms. Daniela Lecuona. Please go ahead.

Daniela Lecuona

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

Daniel Hajj Aboumrad

Good morning, everyone. Welcome to América Móvil's Fourth Quarter of 23 financial and operating report. Carlos Garcia Moreno is going to make out the summary of the results. Carlos?

Carlos Garcia Moreno

Thank you, Daniel. Good morning, everyone. Well, the fourth quarter of 2023 turned out to be an extremely volatile one, with interest rates surging

in the first month of the quarter to record highs not seen in over 16 years. This was in continuing with the trend that began early in the third quarter as inflation pressures brought about new increases in reference rates by the Fed. The yield of ten-year Treasury notes, which had stood as low as 3.75% in mid-July, shot up to 5% in exactly three months. But then things turned: new inflation readings appeared to be softer and the Fed put out the message that no new action on reference rates was expected for at least the remainder of the year. A huge rally in interest rates followed, with the ten-year Treasury yield plummeting back to where it had been in mid-July.

We added 3.9 million wireless subscribers in the quarter, including 2.7 million postpaid clients. Brazil contributed with 1.8 million new contract clients, while 329,000 came from Austria, 124,000 from Argentina and 109,000 from Mexico. The prepaid platform registered net additions of 1.3 million clients in the period with Colombia gaining 456,000, Mexico 308,000, Argentina, 278,000 and Central America roughly the same amount, 269,000. On the fixed line segment, we obtained 386,000 broadband accesses. Mexico was the leader, adding 165,000 accesses, followed by Brazil with 60,000 and Argentina with 51,000.