America Movil, S.A.B. de C.V.

Good morning. My name is Ian, and I will be your conference operator today. At this time, I would like to welcome everyone to the America Mobile third quarter 2020 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. Thank you. Now I will turn the call over to Ms. Daniela Laquana, Head of Investor Relations. Please go ahead, Ms. Laquana.

Thank you. Good morning, everyone. Thank you for joining us today to discuss our third quarter results. We have today on the line Mr. Daniel Hash, CEO, Mr. Carlos García Moreno, CFO, and Mr. Oscar Donjauske, CEO.

Thank you, Daniela. Welcome to the third quarter results. Carlos is going to make a summary of the report.

Thank you, Daniel. Good morning, everyone. Well, following the massive monetary and fiscal stimulus introduced throughout the world since the advent of the pandemic, the third quarter saw a rebound in economic activity in most countries in our region of operation. and little of the volatility that was present in the prior two quarters. With the exception of the Brazilian Real, which continued to deteriorate their dollar, the main currencies in Latin America did not see much change over the period. As confinement measures began to be lifted toward the end of the second quarter, an improving trend became apparent on commercial activity. We added 3.2 million wireless subscribers, 1.1 million of them postpaid and 1.4 million prepaid. Brazil led the way in terms of postpaid growth after adding 1.8 million subscribers, followed by Austria with 241,000 and Colombia with a total of 2,000. In the second quarter, we had lost 500,000 folks. As for the prepaid gains, Mexico obtained the most with 1.2 million, with Colombia and Ecuador contributing approximately $300,000 each, Peru $237,000, and Dominicana $139,000. We recovered several of the prepaid subscribers that we disconnected in the second quarter as mobility was restricted and making recharging difficult. In the six-line segment, we gained 446,000 new broadband clients with every operation in that time forcing an increase in accesses. Only Austria and Croatia, among all our operations, presented these connections. Colombia and Mexico led the way with over 100,000 accesses each. In Mexico's case, it doubled those of the prior quarter. Altogether, mobile posters and fixed broadband remain our main areas of access growth, with the former increasing 5.7% year-on-year and the latter 5.2%. I will repeat it. Some days, it's still down 3.2% from the year before, while fixed votes and pay-to-be accesses are falling around 4% each. Our third quarter revenues rose 4.7% in Mexican peso terms from the year before, to reach $260 billion. Our service revenues expanded 5.4%. At constant exchange rates, service revenues were up 1.5%, roughly twice as fast as in the preceding quarter, on the back of continued strong performance of fixed dollars and revenues, and recovery of mobile prepaid revenues, those most affected in the prior quarter in the midst of the lockdown measures implemented throughout Latin America. Mobile savings revenues accelerated to 3.5% from 2.3% in the second quarter, while fixed line savings revenues maintained a 1.4% pace of decline. Across our operations, both MOUs rose 11%, while mobile data per user was up 41%, all of which resulted in a 5% increase in mobile ARPUs at constant exchange rates. Mobile service revenues were bought by prepaid revenues, which rose to 2.5% from minus 2% the prior quarter. While posted revenues decelerated somewhat to just under 5% year-on-year, equipment revenues bounced back sharply as we moved on to a more forceful commercial activity. The continued decline in fixed-line revenues took place as the gains observed in fixed-bos and revenues from a pace of close 7.3% to one of close 9.1% were offset by new revenue losses in fixed-line BOS and 3TB revenues. EBITDA was up 10% in the third quarter from the year earlier quarter to $36.5 billion, as the EBITDA margin remained at 33.2%. At constant exchange rates, EBITDA increased 7.2%, more than twice as fast as it had in the preceding quarter, with Puerto Rico, Mexico, and Dominicana forcing important advances. Mexico has improved from minus 10% in the second quarter to close 1.3%. Well, Dominicana's increased from minus 5.5% to plus 5.8%, and 11 percentage points swing in both cases. And it's important just to note that both countries have a high share of prepaid clients. Our EBITDA margin, 33.2%, was 1.6 percentage points higher than in the yearly course. Our operating profit shot up 18% to 45 billion pesos, and was the driver of a 45% increase in our net income, which totaled 19 billion pesos. Our operating cash flow totaled 164 billion pesos, and allowed us to cover our capital expenditures, which amounted to 91 billion pesos, and to reduce financial and labor obligations in the amount of 62 billion pesos. including a $47 billion reduction in our net debt. Our capital expenditures in the period were directed to securing adequate capacity in our networks and maintaining good quality of service. At the end of September, our net debt to EBITDA ratio stood at 1.38 times on the IAS 17, slightly less than at the end of June. All throughout this year, and in spite of movements in foreign exchange rates, we have kept our leverage ratio at or below 1.90 times all over the year. Looking at Mexico, prepared revenues bounced back to plus 1.1% from a minus 4% decline in the second quarter, with fixed broadband revenues accelerating to 6% from 2%. On the back of the above, EBITDA recovered sharply from a 10% launch in the second quarter to close 1.3%. As for Brazil, posted revenues continued to excel, posting a 9% increase from the year before, with pre-planned revenues rising 5%, the same pace they had shown prior to the pandemic. On the fixed-line platform, broadband revenues continued to perform well, expanding 6.8% and maintaining a stable trend. while the decline in pre-TV revenues accelerated to minus 13.6%. Colombia was the only country where savings revenues expanded on both the mobile and the Fisland platform in the third quarter, almost at the same pace in each one. Post-pre- and post-tax revenues expanded at rates similar to those in the first quarter, where fixed-organ revenues remained at a 15% growth pace, and pay-to-be revenues continue to accelerate to 10%. EBITDA increased 3.4% in the quarter on the strength of the revenue increases and the reduced need to provide for past-due collections. Regarding Austria, both fixed and mobile revenues declined slightly. The latter bumped down by reduced roaming revenues as tourism to the country dried up on account of the pandemic. In spite of the above, the companies adjusted EBITDA for restructuring, showed up 4.7% on reduced interconnection and roaming charges, as well as savings on several oil funds. Well, with this, I would like to conclude this introduction. I will pass it to Carlos. Thank you.

Thank you, Carlos. And we can start the Q&A.

At this time, if you would like to ask a question over the phone lines, please press star, then one on your telephone keypad. Your first question comes from the line of Rodrigo Uvanuela of Bank of America. Your line is open.

Hi, thank you. Good morning. Can you hear me well?

Yes.

Perfect, thank you. So my first question, thank you very much. My first question is if there's any update that you can share with us regarding the potential alternatives to create value from your towers. Anything related to timing, amount of towers, or type of transaction would be very helpful. Thank you.

Hi, Rodrigo. Well, what we have been saying on the tower transaction that we have around 60,000 towers in America Mobile, and we're working on the regulatory, on the legal, to see what is the best thing to do. We have like 15 countries, so in every country it's different, so we're working on that. and we're analyzing what's the best way to give value to the tower. So we have nothing concrete to say right now, but we're working hard to have that as soon as possible.

Understood, Daniel. Thank you very much. And secondly, I mean, the Mexican government appears to be willing to raise the price for spectrum, particularly in frequencies expected to be used for budget purposes. So I was wondering if you could share with us how relevant this is for AMX and if there's anything that you can do to prevent this from happening.

Thank you. Well, we have been following that discussion in the Congress, in the Senate. We are not agree on that. I think they shouldn't raise any on the spectrum. It's very expensive right now, and the only thing that they are going to do is to delay 5G. They are going to do that or increase prices in the other side. So Mexico at this time is at the highest level. levels of spectrum. We're paying a lot of money, and we are not agree on that. We're following the discussions. We don't know what is going to end on, but what they are saying is that they want to increase the 800 megahertz frequencies what they have been in discussion so we don't know exactly what is going to end on but we are on favor that we are really we don't think that's a good idea understood daniel thank you very much thank you your next question comes from diego aradro of golden sacks your line is open

yes uh good morning everybody thank you for this my question i have just two short questions about brazil the first if you can please share your expectations about emanating the country i mean you sign up like an agreement with tim and bibo so if you can just provide like an overview about you know the next steps and your expectations in the mobile space and secondly if you can also share uh your expectations regarding 5g spectrum option that apparently It should occur in the beginning of next year, but if you can share anything on this topic, that would be great.

Thank you. Well, on Brazil, first of all, I think we have a very good quarter in Brazil. It's still growing very good on post-paid subscribers and also in prepaid, so the revenue in our wireless operations are doing very good. In broadband, we're also doing excellent in Brazil. On oil, I think we feel that the final option will be before end of the year. We don't know exactly the dates, but we feel that's going to be before the end of the year. And the spectrum for 5G, Well, I'm hearing rumors that they said that it's going to be in the first quarter of next year, as you are saying. Other ones said that in the middle of next year. So we don't know exactly when we're going to have the option. But right now in Brazil, we have very small numbers. a very small amount of our network within 5G. So we are already launched 5G in a very small town part in Brazil. So we are moving on that direction and I think next year we're gonna see that we're gonna have 5G there. In the other side, with the Nextel purchase, We already integrate the company. We do a very good integration, and we are doing very well on wireless, gaining post-paid market share every quarter. So that's more or less what we have been doing. In Brazil, on the other side, we have been cutting costs all around Latin America, also in Brazil. We are being and trying to be more digital, a company more digital. It's saving a lot of costs over there. So we're working on that direction and putting money and a lot of work on that.

Thank you. That's very helpful. And just a follow-up on the post-paid in Brazil, because it was indeed quite strong. So what we're curious to understand, where are those cost marks coming from? I mean, do you feel that this is still a trend of prepaid shifting to post-paid, or do you believe that you are gaining share from competitors? Thank you.

I think there's a lot of our prepaid moving to postpaid, of course. That's something. Prepaid from other companies moving to postpaid, and also postpaid from other companies moving. We have a very good network, and we have been showing that for the last year. So that's been very, very good. Thank you. And also, you can see in number portability. In number portability, we're gaining more than any other company. So that's where we're getting all these postpaid subscribers. Perfect. Thank you. Thank you.

Your next question comes from Lionel Arturo. Arturo Blanca of ETAL BBA. Your line is open.

Hi, good morning. Thank you for taking my question. I would just like to get your thoughts on your intention to reduce debt, maybe potentially the Taylor Towers in Southern America will help. But if the intention is still to reach 1.5 times net debt, and if so, how can we think about cash distribution to shareholders once AMX reaches this level? Is the intention still to increase distribution to shareholders? And if so, what levels of yield do you have in mind, and then what mechanism may you pursue by that? That would be my first question. My second question is related to Colombia, how you see the arrival of warm in the country Would you be interested in offering enrollment services to one like you did for them in China?

Thank you. Well, on the first question, I mean, I think with the sale of platform to Verizon, the time it closes, that alone should bring us down. or would bring us down to one and a half tons in the detritus. So whatever is obtained from the disposal of the taus, if there is a disposal of some kind, that would be something that would further reduce our leverage. I'd say that in addition to this, we have a strong cash flow and we're expecting to for this castle to remain well, you know, for the next year, the next couple of years. So I think from a leverage standpoint, we feel that we are in very, very good shape. This is something that the rating agency, you know, that we are very much in touch with, have ratified to us. We are in very, very good shape financially. And we think it's important, particularly in times of so much economic uncertainty that we are living through today to navigate with a lighter load of debt than would normally be the case. So I think that it's important, again, given the uncertainty, it's better to be somewhat more conservative on the financial structure of the company.

And can you repeat the second question, please? Yes.

Yeah, sorry, Daniela. Just your thoughts on the arrival of WOM into Colombia. And, you know, they have big obligations in terms of network rollouts. And it's in discussion right now if there should be actually a roaming agreement, which you might be willing to provide. And you guys did have a roaming agreement to WOM in Chile. So I was just wondering what your thoughts on the arrival of WOM into Colombia are and how will you manage that?

Well, I think we know one. As you said, they are in Chile and they are aggressive. So we have been preparing the company for maybe all these years. So we're putting more capacity and we're working to be prepared when one starts. And that's something that's nothing else I can say that we like to compete and we're going to compete in Colombia and Colombia. Also, Stigo and Movistar over there. So we haven't had any roaming agreement until now with one. If that's your question, we haven't had anything there. They haven't do anything with us. So we're working. You know that we gained the spectrum in Colombia, and we're working to fill all the – how do you call those – to all the investments that we need to do and to put the capacity and the network in the small towns that they require. So we are doing very well in Colombia. We are growing in post-paid, growing in prepaid, growing in TV, growing in broadband. So, we're really doing very well there. So, we have a platform and Oscar can talk a little bit more on what we have been doing in Colombia.

Thank you. Yes, as you mentioned, we are a fully integrated company in Colombia. We've been doing quite well on mobile, but more in the convergence. So we deliver all the set of products, so fixed broadband, fixed line, and mobile, pay TV in different flavors. And as well, we started three years ago focused on enterprise and all the cloud services that we deliver there. So we are more a telco-integrated solution that has only connectivity, and we've been really successful in that market on enterprise.

So it's going to be more competition, but we feel that we are in a very good position.

Understood. I appreciate your answer. Thank you.

Thank you.

Your next question comes from the line of Walter Peisk of Lakeshed. Your line is open.

Thanks. Daniel, the trend for ARPU has been pretty positive since 2017. I understand that some of that is postpaid, prepaid mix, but clearly LTE usage has certainly had an impact. Obviously, COVID gave you a little bit of a headwind in the last couple of quarters, but when you're looking at 2021, assuming we have some type of COVID recovery, at least health-wise, but maybe not economically, do you think that across your markets, especially the big ones that you can get back to, ARPU growth, and then two kind of Additional questions as it relates to that, which is, can you give us an update on what is the mix of LTE traffic today and kind of a capital CapEx outlook? Because your CapEx has to get down a lot this year. Is there going to be kind of a return to CapEx investment based on some of this LTE growth? Thank you.

Well, what we have been seeing in these two things are very important with the pandemic. The pandemic show us that our networks are really strong. So we handle all the traffic in all the countries that we meet. So people move from offices to houses. And then a lot more in houses, in broadband, in wireless, in Wi-Fi. They see a lot more TV. So all these trends looks very good in our network. So we have a very strong network. And that's because the last three years we have been investing a lot on that. There's the focus on photonics in the backbones, in the last mile. That's very important and we're very happy. We have been doing a lot of testing all around Latin America and we have been the best network in most or maybe all of the country. We have been doing very good on that. That's very, very important. So other thing that what happens during the pandemic is it accelerates a lot the digital for payments, for shopping, for studying, for everything. So it looks like people is going to use more and more and more on that. I don't know what is going to happen in 2021, but what I can tell you is that people are using a lot more telecom. Telecom has become more and more important every day, and with this lockdown, it accelerates a lot in the digital side, so we're doing that. On the CAPEX, I'm going to talk a little bit about the CAPEX this year. Well, I think the CAPEX It's going to end reducing maybe 30%, 25% to 30%. We're going to reduce the capex from our original capex this year. Also because execution, because in the lockdown it was very difficult to execute. Also because we take out some projects that we don't need, and maybe we're going to delay that. And we're working – right now to see what's going to be the capex for next year. So I still don't know what will be the capex, but the capex of this year is going to be around $6 billion instead of the $8.5 billion that we have there. So that's more or less what we have. Part execution because of the lockdown, other ones because we delay some projects that we don't think or we don't need at this moment.

That's a pretty big decline. It didn't seem like usage declined that much. So, I mean, at a minimum, shouldn't you think that CapEx – I mean, I know you don't want to give a CapEx guidance for 2021 now, but if you're down that much this year, should it at least be flat in 2021? Would it be reasonable to assume that?

Compared with this year or compared with our original CapEx?

When I look at 2021, if it's $6 billion this year, I would assume that you're at a minimum that's going to be glad if not up in 2021 from that level.

From that level, it's going to be higher, of course. It's going to be higher, but we're working. I don't want to advance anything, but it's going to be higher than this year.

Maybe not at the $8 billion from 2018 and 2019. I got it. Okay.

Thank you, Dana. Okay, thanks. Well, you know, other things that have been really interesting is that, well, there's a lot of suppliers that are helping and reducing prices and moving with new technologies, and there's a lot that we have been doing there. So also it's helping us on that. So what I can tell you right now, very important, that – that with this $6 billion, we haven't lost anything. We have a lot of capacity, very good quality, and in the commercial side, in the variable capex, that it's 100% done what we need. So we're not stopping anything on that. So that's important. So we're not going to stop growth. We're not going to stop capacity. We're not going to stop quality. We're not going to stop very important, all the digital things that we're doing in the company. So that's That's very important.

Just one quick follow-up, Daniel, and I apologize for the third question, but it's related. When you say execution, does that mean you're using different radio vendors like Fujitsu or Airspan or whoever rather than the traditional guys, or is it just that pricing is coming down from the Nokia, Ericsson, and Huawei's of the world?

Well, it's new vendors plus maybe not in radio, but in other things. There are new people entering in some of the new technology. So radio is a very small part of our capex. So it's a lot on backbones, a lot of photonics, a lot on digital, Pfizer. There's a lot of things in the capex. It's not only radio. Core, virtualization. So it's a lot of things related to CAP.

Thank you very much.

Thank you. Your next question comes from a line of Marcelo Santos of J.P. Morgan. Your line is open.

Hi, good morning. Thanks for taking the question. There are two, actually. So the first is about to pick up in broadband ads in Mexico. I just wonder if you could talk a bit about the sources. You mentioned the agreements with OTTs, but also is there some demand from COVID coming in? And what do you think about the sustainability of this higher growth in broadband? And the second question is about Brazilian weakness in the fixed line, which you commented. Is this limited to DTH? This is also a suffering cable. What's the outlook here? How much more of a decline could we have on the DTH? Thank you.

So your first question around the Mexico broadband, what we've been doing is we've been working operating all the speeds of our customers that have been keeping the loyalty from our customers. Another thing is that we've been migrating from copper to fiber as soon as we can within the market. And the third one is that we launched a new set of packages that includes several add-ons with the program, and I think it has been very well received on the market. And there is a pickup, as you mentioned, around the COVID. All the people working from home need more speed, but there is more people connected to the network. That's another thing that happens. Not only in Mexico, we see this in all the countries. On the Brazilian side, as you know, pay TV, is decreasing the revenues, as Carlos mentioned, 13%. But what we see is that when you look at the total market, the total market is decreasing in Brazil. So there is downgrades in some of the customers given the economic condition in Brazil. But what we are doing is to develop a new set of products that is more like an entertainment hub, moving just the pay-to-be, regular pay-to-be, and we believe that included add-ons and more functionality to the pay-to-be, we could, you know, stabilize that revenue in the near future.

Thank you. Thank you. Thank you very much.

Your next question comes from the line of Cesar Medina of Morgan Stanley. Your line is open.

Hi, thanks for taking my call. I have two questions related to the UFD leveraging process. I mean, one is, other than the towers that you're working on, how should we think about other, you know, stakes? I think, for instance, there's been news regarding KPN, and once you reach to that 1.5 level, what's next? I mean, should we expect... and distribution to shareholders, buyback dividends, more on that front. I appreciate your thoughts on that. Thank you.

Well, first on your question on KPN, so we – We know this Swedish private equity bond that is the rumor over there, we don't know nothing. We know that from the media, so we don't know what is going to happen there. Of course, there's going to be consolidation. Of course, there's going to be consolidation in Europe, but we don't know nothing about that. And on the...

I think as regards, you know, as we have the KPM shares listed as disposable for sale, it is reflected as marketable securities. They are indeed marketable securities. And that will not change our net debt. So even a potential divestment of the KPM stake wouldn't have any impact on the levers. As I was pointing out, I think we have on the one hand the cash flow that is providing us ample room to reduce debt, as we have done so far this year. I mentioned nearly 50 billion pesos cash reduction of net debt. And we expect, you know, by the time the maximum transaction closes, we expect to receive initially $6.3 billion. So that really would take us a long way to 1.5 times or even below the 1.5 times As I was saying, I think there is a great uncertainty in the world. I don't know if you're familiar with the latest IMF forecast for the world, but basically we have several countries not coming back to where they were in 2019 until two or three or four years from now. So I think this is still is in some ways the early part of this COVID-related crisis. And we think it pays to remain conservative and to, as I was saying, to navigate life a little bit. It's easier when things are uncertain. So that's what I would say to them.

Great. Thank you.

Thank you. Your next question comes from Linus Carlos Sequeira of BTB Actual. Your line is open.

Thank you. Good morning, everybody. So my question is, does AMX have any plans to overlay its Quark-Cell cable network in Brazil with fiber and fiber-to-the-home technologies? I know you have a big cable network operation there, and I was just wondering if you have any plans to overlay it at some point. Thank you.

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Yes, if you want me to make the question again, I can do it again. Sorry. Yes. Yeah, okay, so my question is, if AMX has any plans to overlay its coaxial cable network in Brazil with fiber or fiber-to-the-home technologies, you know, if not now, at some point in time, how do you see the cable network in Brazil versus the possibility of upgrading to fiber-venting? Thank you.

Well, as you know, in Brazil, we have a HST network. And what we've been doing is to upgrade those networks to DOCSIS 3.1. All the issues that we were going to have, it was with FHIR. So we have a compacted already with FHIR, with GPON. We believe that DOCSIS 3.1 will deliver the speed that we need for the market needs. Again, if you'd like to ask a question over the phone lines, please press star then one on your telephone keypad.

Your next question comes from the line of Chelsea Collin of ADON. Your line is open.

Hi, and thank you for taking my questions. I was just wondering if you could provide a little bit more color around the performance in GLA. I'm just wondering how much of this performance do you think is due to competition in the market versus the effects of the pandemic? And if you could also just remind us of what technology you have on the mobile and fixed side in Chile.

You're talking about Chile?

Yes.

In Chile, we have the same technology in mobile that we have all around Latin America. We have 2G, 3G. Not 2G, no. I think it's almost zero, but 2G and 4G and 4.5G. So that's the technology that we have in PICS. We also have fiber to the home. So what we need in Chile, Chile is doing a little bit more difficult on the country. The lockdown starts being on and off, and we need to improve there. So I think we are putting an execute better.

So we are working on that, and I hope that we are going to see better results in the next year.

So it's not something about technology.

I think we are well prepared on the technology, very good also in mobile, in PIC, in incorporate also the data centers we have.

So we need to execute a little bit better. So the market is also very difficult there. Pricing has been going down. And for that, nothing else to say.

We need to execute better.

And what is your exposure to the SME segment in Chile?

What is the what? Sorry, we don't hear you.

Your exposure to SMEs in Chile?

I think we're in a good position. Oscar can talk a little bit about what we're doing on the corporate side in the small and medium enterprise also.

Sure. I mean, small business is an excellent segment in the market. And we've seen in small business that these enterprises are looking for more digitalization, more cloud services. more applications. They've been asking us to help them to get online to have a store in the Utah world. So what we've been doing is bundle all these products and services to deliver to the small business. And on enterprise, if you look at the change of values from the connectivity to the end of the chain, you have connectivity and then you have security, you have data centers, you have the business analytics, you have artificial intelligence, and then you have verticals. So what we are offering on both markets is a fully integrated solution in the market. Not only keep up on connectivity, we want to bring value to the customers to improve them the productivity or increase revenues. It's more business-oriented proposal, not only connectivity. We've been working on setting up all these portfolios within the two years ago. So I think that we've been very well-intentioned in the matter, more as an aggregator than only in connectivity.

Thank you.

Thank you. Your next question comes from the line of Marie Azevedo of San... Your line is open.

Hi, everyone. Thank you for the call. Congratulations for the strong numbers. I have two questions. The first one is a follow-up on the question on CapEx. Do you think that network sharing, open RAN, and those initiatives can also help the optimization of CapEx? And how much do you expect to spend with 5G spectrum in 2020 and 2021? And then the second question is about a trend about monetizing subscriber base, and some of the companies are talking about digital wallets, and you launched some initiatives of using creditors. credit as digital wallets, how big is that opportunity in lockdown? Thank you very much.

Well, I think in terms of 5G, I don't have a number on how much we're going to invest in 5G next year, but we're going to have 5G in some of the countries next year.

It's going to depend a lot on the spectrum. Let's say when Brazil is going to launch the spectrum, when those other countries are going to launch the spectrum,

Another one, we already have the spectrum. So we're working in 5G, and we can have 5G, launch 5G in some countries next year. So we have that. Network sharing, I think network sharing... but it helps in some places. So I'm not a fan of network sharing, let's say, in big cities, by an example, okay, because in big cities you are always investing more new technologies, a lot of capacity, and then you have to grow the capacity and put more and more because of the usage. But network sharing in rural areas where the growth is not so big or in places where you need more coverage than a lot of capacity, I think it's a very good idea. That's the way we feel and what we think is important. So, of course, network sharing is a good idea, but depending where and with whom you put it. That's what we do. And on the wallet, Oscar, can you talk a little bit about what we have on digital wallets?

Yes, we develop a product around digital wallets. It's called ClaroPay. And the functionality that is within the ClaroPay is that you could cash in or cash out cash. or from the deposit. As you know, in Latin American countries, there is a lot of use of cash. So getting into that to digitalize that interaction should be great. And it's an application that is going to consist of the use of cash, but as well you could pay You could pay separate services like a telephone to recharge the prepaid mobile phone. And we are on the first of first and finally right now, so we are developing more functionality. But we are ready to go with this Cloud Pay product.

Very good.

Okay. Thank you very much.

Thank you. There are no further questions at this time. I hand the call over to Mr. Daniel Hash.

I just thank everyone for being in the call. Thank you very much. Bye-bye.

This concludes today's conference call. You may now disconnect.