America Movil S.A.B. de C.V. (NASDAQ:AMOV) Q3 2018 Earnings Conference Call Transcript

Oct 17, 2018 • 10:00 am ET


America Movil S.A.B. de C.V. (NASDAQ:AMOV) Q3 2018 Earnings Conference Call Transcript


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Good morning. My name is Lisa, and I'll be your conference operator today. At this time, I would like to welcome everyone to the America Movil Third Quarter 2018 Conference Call and Webcast. (Operator Instructions)

Now, I'll turn the call over to Ms. Daniela Lecuona, Head of IR. Please go ahead.

Daniela Lecuona

Thank you. Good morning, everyone. Thank you for joining us today on our third quarter 2018 conference call. We have today on the line, Mr. Daniel Hajj, Chief Executive Officer; Mr. Carlos Garcia Moreno, Chief Financial Officer; and Mr. Oscar Von Hauske, Chief Operating Officer.

Daniel Hajj

Good morning. Carlos, as always he's going to give us summary of the third quarter 2018 financial and operating report.

Carlos Garcia Moreno

Okay. Thank you. Good morning, everyone. Well, the continued expansion of the U.S. economy through the summer with strong job creation even in the face of historically high levels of employment and they're pushing 10-year U.S. treasury yields decisively above 3%, bringing about a new bout of dollar trend that affected emerging markets in general, including several of the currencies in the region where we operate, more importantly in Argentina and Brazil.

This effect was partially offset by the reduced political uncertainty in some countries with their currencies appreciating versus the dollar as the presidential elections were left behind. This is particularly in case of Mexico and Colombia and already partly through halfway in Brazil.

In this context, we gained 1.1 million postpaid subscribers in the third quarter, including 420 -- 472,000 in Brazil, 184,000 in Mexico and a 100,000 in Colombia. All together, even after net disconnections of 750 -- 7,000 prepaid clients, we ended up with 339,000 net gains of mobile clients as compared to a net loss of 73,000 clients in prior quarter. This is important because I think most analysts were estimating a reduction of net adds for the quarter. This goes to show the importance of our ongoing commercial effort.

In fact, if we look at growth of subscriber rate, still have to correct our prepaid disconnections, they were up 2.9% versus the year earlier quarter, but Brazil and Austria offsetting the fastest growth 7.9% and 9.7%, respectively. This again is the rate of growth of gross subscriber additions.

On the fixed-line platform, broadband continued to be the fastest growing segment at 6.2% year-on-year after adding 284,000 new accesses in the quarter, including 105,000 in Brazil and 93,000 in Central America. In Brazil, with numbers from (inaudible) through August, we've been increasing market share over the last several quarters practically across the board in the fixed-line platform.

Mobile postpaid is our fastest growing segment with 7.6% followed by fixed broadband at 4.7%. The declines in PayTV accesses have leveled off. Mobile prepaid subscribers have continued to come down, and we have gone ahead with various disconnections, most notably in Brazil.

Revenues were up 2.1% year-on-year in Mexican peso terms and were just shy of MXN 250 billion, whereas EBITDA came in at MXN 71.8 billion and was 7.7% higher than