In its Third Quarter 2023 Conference Call and Webcast, telecommunications giant America Movil (NYSE:AMX) reported an addition of nearly 3 million wireless subscribers, including 2 million postpaid and 950,000 prepaid clients. The company also reported a 3.3% YoY reduction in third-quarter revenue, which totaled MXN204 billion. Despite the decrease in revenue, adjusted EBITDA was up by 3.9%. The company highlighted growth in corporate network services and the acceleration of broadband revenue, while also discussing its $24 billion CapEx budget for 2022-2024.
Key takeaways from the call include:
- America Movil added nearly 3 million wireless subscribers in Q3 2023, including 2 million postpaid and 950,000 prepaid clients.
- The company reported a 3.3% YoY reduction in third-quarter revenue, which totaled MXN204 billion.
- Adjusted EBITDA was up by 3.9%, reflecting growth in corporate network services and the acceleration of broadband revenue.
- The company's CapEx budget for the next three years is $24 billion, with a focus on managing customer networks and offering services such as SD-WAN, security, cloud services, data lake, AI, and private wireless networks.
- The company reported strong results in the fixed broadband market in Colombia, due to changes in their go-to-market strategy and network upgrades.
- America Movil's joint venture with Liberty Latin America in Chile is on track, focused on creating value and improving cost control and coverage.
According to InvestingPro data, America Movil has a market cap of 51.14B USD and a P/E ratio of 10.3. The company has seen a revenue growth of 0.59% and a Gross Profit Margin of 61.57%. However, the company's Dividend Growth has seen a decrease of -30.48%.
During the call, America Movil also discussed its operations in Colombia and Chile, with a focus on building fiber infrastructure and improving the quality of its fixed broadband services. In Mexico, the company stated that it is not currently considering increasing prices and is focusing on expanding its fiber coverage. The company also noted that recent stock performance may be influenced by market stress but reiterated that the company's fundamentals are solid and that they have been conducting share buybacks.
The company expressed optimism about the growth and performance of the company in Brazil and Mexico, particularly in the corporate segment. They also mentioned that they received a payment of MXN3.3 billion from Verizon (NYSE:VZ) for the earnout. In Mexico, the company reported a 10.3% increase in corporate network revenue for the first nine months of the year. The company also mentioned its investment in improving coverage and quality in Guatemala, particularly in wireless and fixed-line services.
InvestingPro Tips suggests that America Movil has a high shareholder yield and has raised its dividend for 7 consecutive years. The company is also a prominent player in the Wireless Telecommunication Services industry and stockholders receive high returns on book equity. However, it's important to note that the company's short-term obligations exceed liquid assets.
In Argentina, the company sees good growth opportunities in fixed-line services, particularly in broadband and PayTV, where they have seen positive returns from their fiber investment. The executives acknowledged the challenging macro environment in Argentina but remained confident in the opportunities available. For more insights like these, check out InvestingPro which offers a wealth of additional tips and real-time metrics.
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