América Móvil, S.A.B. de C.V. (NYSE:AMX) Q3 2024 Earnings Call Transcript October 16, 2024 11:00 AM ET

Company Participants

Daniela Lecuona - Head of IR
Daniel Hajj - CEO
Carlos Garcia Moreno - CFO
Oscar von Hauske - COO

Conference Call Participants

Milenna Okamura - Goldman Sachs
Walter Piecyk - Lightshed Partners
Marcelo Santos - JPMorgan
Gustavo Farias - UBS
Ernesto Gonzalez - Morgan Stanley
Phani Kanumuri - HSBC
Alejandro Lavin - Santander
Lucca Brendim - Bank of America
Carlos Sequeira - BTG Pactual
Carlos Legarreta - ITAU
Camila Koga - BBI

Operator

Good morning. My name is Nadia, and I'll be the conference operator today. At this time, I would like to welcome everyone to America Movil's Third Quarter 2024 Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there'll 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 to begin.

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, good morning. Welcome to America Movil third quarter financial and operating report, and Carlos is going to make a summary of the results.

Carlos Garcia Moreno

Thank you, Daniel. Good morning, everyone. Well, interest rates in the US and several other countries continued their downward trend in the third quarter, with 10-year US Treasury yields falling 85 basis points from the beginning of the quarter through mid-September to a low of 3.6%. The decline was driven by concern about the cooling US economy and its corresponding impact on the labor market. It prompted the Fed to finally declare its first discount rate reduction in 2.5 years, a period in which it brought about a 5 percentage point increase in such rate.

Shortly after the end of the third quarter, 10-year yields have bounced back to more than 4% on the back of unexpectedly strong non-farm payroll numbers for September, wiping out half of the reductions that have taken place through mid-September. Throughout the quarter, Central Bank discount rates fell by 50 basis points in Mexico and Peru, 1 percentage point in Colombia, and 25 basis points in Chile, but were going up once again in Brazil by 25 basis points.