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

Good morning, my name is Juan and I will be your conference operator today. At this time, I would like to welcome everyone to the America Mobile for Quote 2021 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 would like to ask a question during this time, please press the star followed by number one on your telephone keypad. If you would like to withdraw your question, please press Staff followed by number two. Now I will turn the call to Ms. Daniela Lecuona, Head of Investor Relations. Please, Ms. Daniela, go ahead.

Thank you. Good morning, everyone. Thanks for joining us today to discuss our fourth quarter operating and financial results. We have on the line Mr. Daniel Hash, CEO, Mr. Carlos Garcia Moreno, CFO, and Mr. Oscar Bonjauske, CEO.

Thank you, Daniela. Good morning, everyone. Carlos is going to make a summary of the fourth quarter results.

Thank you, Daniel. Good morning, everyone. Throughout the fourth quarter, concerns about the rising inflation rates across the board kept financial markets alert about the policy implications with 10-year treasury yields moving around in a relatively wide band, 25 basis points. But ending the quarter very much where they had started, at about 1.5%. Notwithstanding the volatility in interest rates, equity markets continue to advance with the S&P 500 delivering a 10% increase in the quarter. And in our region of operation, the Mexican peso, the Colombian peso, and the Chilean peso all experienced bouts of volatility in the second half of November, with the former recovering fully by the end of the year and the other ones depreciating further. In the fourth quarter, we added 4.8 million wireless subscribers including 2.2 million post-paid clients and 2.5 million prepaid jobs. Brazil contributed approximately half of our post-peravisions, followed by Colombia with 357,000, and Austria and Peru with close to 200,000 each. As in the prior quarter, Mexico provided most of the new prepaid clients, 1.2 million, with Colombia contributing 349,000 clients and Central America and Argentina approximately 300,000 each. Fourth quarter revenue, total 227 billion pesos, a 7.7% year-on-year increase, with service revenue expanding 5.4% to 180 billion pesos. The consolidated figures mentioned above and those that will be referenced later exclude crack funds as it has been deemed to be a discontinued operation. They also excluded Argentina, as we have done for several quarters, given the hyperinflation of service in the country. At constant exchange rates, service revenue growth came in at 4.4%, a fairly similar rate to the 4.6% one posted the prior quarter. The Mexican peso, appreciated versus most other currencies in our region of operation on a annual basis, and depreciated slightly, 1% versus the U.S. dollar. The pace of growth of mobile service revenue stayed roughly constant in the quarter at 6.9%, while that of fixed-line service revenues declined relative to that of the prior quarter to 0.5%. On the mobile platform, posted revenue expanded 5.9%, practically at the same pace as in the previous quarter, while prepaid revenue growth accelerated to 8.7%. Several operations, including Peru, Puerto Rico, Eastern Euro-Dominican Republic, Mexico, and Brazil, experienced brisk mobile service revenue growth between 8% and 12%. We also are posting a 7% increase. On the fixed-line platform, Revenue growth from corporate networks accelerated to 6.8%, and that from broadband services slowed down to 4%. Both continued declines followed throughout the years. Fixed-line bullish revenue growth continued to decline, although at a slower pace than seen previously, whereas pay-to-be revenue kept on declining roughly at the same rhythm as it had in prior quarters. Our Eastern European operations in Peru observed the fastest revenue growth in fixed-line services with 13% and 11% respectively. They were followed by Colombia and the Dominican Republic with 7% and 6%. The decline in Puerto Rico's revenue was due to the suspension of funding provided by the government associated with the pandemic. Within fixed-line services, broadband revenue climbed 19% and 17% in Dominican Republic and Peru. Ecuador, Puerto Rico, Eastern Europe, and Central America, all posting revenue growth of between 6% and 9%. EBITDA came in at 89.8 billion pesos in the quarter. This figure reflects one of the items during the impact of the sale of Towers by Pelmen. Our adjusted EBITDA was up 7.7% year-on-year, slightly more than the 7.2% increase of 7.34%. The Dominican Republic, Central America, and Europe exhibited the fastest pace of EBITDA growth at 12.4%, 11%, and 9.7% respectively, with Mexico and Colombia posting 8% growth rates and Ecuador 7.2%. Practically all the operations saw increases in their margins. Our adjusted operating profit reached 41 billion pesos and was up 20% in Mexican peso terms and 15% at constant exchange rates. This helps generate, after accounting for 19 billion pesos in comprehensive financing costs, a net profit from continuing operations of 23 billion pesos. The net profit obtained through both the operation of the platform until its sale in November and the sale itself is booked under the line item of net income from these continuing operations. It totals 118 billion pesos. Together with the net income of our continuing operations, It resulted in a net profit of $136 billion in the fourth quarter. For the full year 2021, our net income stood at $196 billion, an amount more than four times larger than the one observed the prior year. In 2021, our operating cash flow and the proceeds from the sales platform, net from Mexican taxes paid in December, allowed us to fund $170 billion of capital expenditures. 62 billion pesos in net shareholder distribution, and to reduce our net debt by 128 billion pesos in close terms. Excluding leases, our net debt ended the year at 400 billion pesos, which is a 137 billion pesos reduction from the level outstanding at the end of 2020. Net debt excluding leases was equivalent to 1.3 times EBITDA after leases at the close of 21 EBITDA. In our net debt calculation, we're considering as cash equivalent on the securities available for sale, stock received from Verizon as part of the payment for platform. At the end of the year, the value of the Verizon stock was 62 billion pesos. Also booked on the chain line item is the KPM stock we own, valued at 56 billion pesos. So with this, somebody would like to pass the floor back to Daniel for Q&A.

Thank you, Carlos. We can start the Q&A.

Thank you. If you would like to ask a question, please press a star followed by one on your telephone keypads now. And your first question comes from Leonardo Olmos from UBS. Please, Leonardo, your line is now open.

Hello, everyone. Good morning, good afternoon. My first question is related to 5G CapEx, specifically about the spectrum auctions that you're already booking in 2021, as far as I understood. Can you disclose a bit the breakdown between the spectrum auctions that you booked in 2021? And please confirm if the total amount was $1.1 billion. Thank you.

Yes, good morning. On the CAPEX of 2021, on the Spectrum CAPEX, I don't remember exactly, but it was around $800 million in Brazil. And then some more in Mexico, a little bit more on Peru. But yes, it's around $1.1 billion on Spectrum that we have in 2021. Mostly was on Brazil alone. $800 million.

Crystal clear. Thank you very much. And my follow-up question, also on 5G, can you discuss what do you expect for 2022, 2023? It doesn't need to be specific on numbers, but mostly what countries do you expect to deploy, what base, what overall spectrum options are you expecting for this year? Thank you.

I think we mostly have a spectrum in all the countries in Latin America. We expect to launch, I can tell you, in 90% of the places where we operate in 2022. The capex that we're going to spend in 5G, as we told in previous calls, we have been investing in virtualization, we have been investing in a lot of in fiber to the node, virtualization, and we're not going to put any more capex of what we planned this year, $8 billion, and it's 5G included, and we're going to launch 90% of the country. So all over all, I can tell you that that's more or less what we have, and It's going to be all around this year. I don't have a specific date, but it's all over the year where we're going to launch. We hope we can do it in the first semester of this year, mostly. Colombia is the only one that we don't have a spectrum. And we hope that the government will speed up that auction. And I think it's important to have 5G in all the countries where we operate. We're ready. We have been doing investments in Colombia also with the fiber to the node, fiber to the cell site. virtualize the network, the switches. So we're ready. So in 2022, we're going to have almost all the countries. We have modernized all our cell sites through the last five years. So in all the countries, we have 3G, 4G, 4.5G, and ready to have 5G also. No more CAPEX than what we have been saying. The $8 billion on CAPEX this year, it's included all the budget launch.

Okay, glad to see that the plans are remaining. Thank you very much. Have a good day. Thank you.

Thank you very much. Thank you. Our next question comes from Walter Piecik from Lightset. Please, Walter, your line is now open.

Thanks. Can you just give us a sense on what your plans are for the Verizon shares that you received as a part of the closing of the transaction?

Well, we don't have any plans today. We're receiving four transactions. I think there are 5% dividend yield in Verizon. Until right now, we don't have any plan. We don't have any lockups on the shares. So anytime that we want to sell, we can sell. So right now, we're going to maintain the shares and decide in the near future.

Okay. And then just to go back to the CapEx question, I think if we just looked at the network equipment of CapEx, I think in 2021, if you excluded Spectrum, it was about a little over $7 billion. And in 2020, it was about $6 billion. So you just, Daniel, talked about the eight for this year. I assume that's all network CapEx. Is this just kind of a rising trend because your overall business is growing? Or is this kind of residual 5G so that when we look out... to the years of 2023 or 2024 that we might return to the capital spending levels that you did in 2020 of $6 billion?

No, I think with the numbers that you give me, what we have is that in 2020, because of the pandemic and COVID-19, the capex reduced to $6. instead of being $8 billion. We have been having $8 billion for a long time. Maybe since 2018 or 2017, we have been having like $8 billion on CapEx, including Spectrum. So in some years, we have more Spectrum than infrastructure. In other years, we have more infrastructure than Spectrum infrastructure. We're doing also some fiber to the home, virtualization, as we said, modernizing and digitalizing. We're digitalizing a lot of our equipment. So that's the capex that we have been saying that we're going to do, and that's what we have also for this year.

Okay. And then just one last one, if you don't mind. If you looked at the equipment revenue, basically it appears that there's some supply constraint perhaps in getting phones to sell to customers. Is that the case? Is it that people or your customers are not upgrading their phones? And if it is supply constraints, what's the outlook for that over the course of 2022 to get more supply to sell more phones?

In 2021, we have problems with the supply of the phones, shortages. And there's no doubt that there were shortages all around the world. We have that in Mexico and Latin America. And still, I think for the first and second quarter, I think things are getting better. I can tell you that things are getting better. We're having more supply. A little bit different because the supply is good in the high-end handsets, but the supply in the mid and low, it's a little bit more. We have more shortages in these segments. But I think of what the people are saying and the… The brands that are making handsets, what they are saying is that in the second half of this year, they are going to be more normalized on the production of their handsets. So that's what we're hearing. Okay, thank you.

Thank you. Thank you. Our next question comes from Fred Mendez from Bank of America. Please, Fred, your line is now open.

Hello, good morning, everyone. Thanks for the call. I have two questions as well. I mean, the first one, I think the performance from Delmax was quite strong. Just trying to make sense of the numbers here. According to IFT, they say that around 40% of your connections, they are already on Fiber. Just want to double-check this number to see if it makes sense. And if you have something like a target for number of connections in Fiber for 2022, that would be my first question. And then my second question, as you expand your FTTH network, it makes sense that margins in Mexico, there is some significant room for improvement. Thank you.

I think, as you said, Telmex do well, and they are going to do better. We're putting more FTTH in Mexico. People is changing. We're increasing speed. We're doing bundles. But Oscar can... deeply give a better explanation.

Yeah, as you mentioned, Telnes has been improving the cyber to the home. Last year, we did a lot of migration from copper to fiber. And we already have 52% of the customer base connected with fiber. And we will continue to do so next year. And we want to speed up the migration from copper to fiber. So we are doing new compasses with fiber this year. We believe that we will migrate copper to fiber this year more rapidly than the year before. And another thing is that the enterprise market in Chalmers has been developed quite well. So it's not only based on connectivity. We are adding a lot of value services like cloud services, vertical services, security, and that business is growing pretty good.

Thank you, Oscar. Very clear. If I just double-check, 52% already of the connections are on fiber. And if I may follow up, if there's a difference in terms of margins between the clients you have On 5 grams, to me, you charge a little bit more versus the client that you have in copper. Thank you.

Yeah, I always try to upsell in the customer base. But the competitive line stage is based on speed. So even we are increasing the speed with the same output that we have in order to protect the customer base. Now we launch one gigabit speed. That is a better price in the market. And let's see what is the reaction in the market to this kind of product.

Just to answer your question, I think to have customers more on fiber, I think it's more efficient. It should increase a little bit the margin, depending on the ARPU and what Oscar said. And operations. I think it's more efficient to have fiber than copper. So as we put more fiber, then we're going to take out copper. And I think it's much, much more efficient. So the OPEX in fiber is cheaper, is less than the OPEX in copper.

One more thing, just to complement the answer. What Oscar was saying about OPEX, The revenue in the corporate segment is very important. What we call the corporate networks line item has had its best quarter in Mexico, also by the way in Brazil, in at least five quarters. Just to give you an idea, in Mexico, revenues from corporate networks increased 5.5%, and in Brazil it's about 9.6% as well. So in both Mexico and Brazil, corporate networks are doing really, really, really well. Thank you.

Perfect. Thank you very much, Daniel, Carlos, and Oscar. Very clear.

Thank you.

Thank you.

Thank you. Our next question comes from Marcelo Santos from GP Morgan. Please, Marcelo, your line is now open.

Hi, good morning. Thanks for taking my questions. I have two questions. The first one is on Colombia. Could you please expand a little bit more on the positive performance with accelerating EBITDA despite the increased competitive pressure? That's the first question. And the second question is on Brazilian broadband. We see, at least from Anatel data, that America Mobile seems to continue to lose broadband subscribers. How do you see these trends going forward, and do you think the new plans will lead to a reversion? What could you talk about that? Thank you.

Well, I'm going to start on Brazil, and Oscar can complement a little bit of what I'm going to say. I think still we are the leaders in broadband and we are the leaders in ultra-broadband. As everybody knows, the market in Brazil is very competitive, a lot of new entrants and a lot of new fiber. And we do... fiber like 2 million fiber to the home new ones we're gonna do 3 million this year so we're gonna have more coverage and we're gonna i think we're gonna grow again broadband and uh and we're doing a lot of things i think the market the trends market everything is changing in brazil and we're changing so we're gonna do more on distribution we're gonna do more packages We already launched one gig to any customer that they want and more customer support. So we're doing a lot more things as the market is changing. So we are also moving and doing more things. So including more fiber in places where we are not. So I don't know, Oscar, if you have anything else.

No, no. As you say, we already upgraded the copper network to deliver 1 gigabit speed nationwide. And in all the new cities, we are deploying fiber. We end close to 4 million home passes with fiber. We will do 3 million more this year in fiber to the home. And secondly, in the market, we see the product as a bundle. The combos we have And as well, the fixed and mobile convergence is another thing that we add, and we think that we add value to our customer base. As Daniel said, the market has been changing and has become very competitive with a lot of fiber across the different regions. So we see that with these changes on the commercial forces attacking the market, we feel that we could start growing again. And we are the leaders in Ultra Broadband as well. We've been doing so many years. And as Carlos mentioned in FIGS on enterprise, we are doing pretty well in Brazil. It's the first year that we grow in enterprises. It's many years back. Similar to Mexico, we are having different value to the connectivity, cloud services, vertical services. And it's the first time that we grew in the enterprise in Brazil many years back in Brazil.

And moving to Colombia, what I can say in Colombia, I think we have an extraordinary quarter, very good quarter in Colombia. We have been doing very good on the corporate side We have been doing excellent also in the broadband and TV. We're growing very good. And we are competing with this new entrance in the market in prepaid and postpaid. We have the best quality. I think the brand is excellent brand. People is preparing to stay and to go with Claro. We have also very good customer care customer care centers distribution in all the streets we do convergence we have a lot of our base already in fourth play so in colombia we have doing our we have been doing very good on all the operations i don't think that people are happy only with price. In these times, people want coverage, people want convergence, people want quality, customer care, a good network, good TV. And we are offering everything in Colombia. So I think we have been doing good, and the results in Colombia are very good.

Perfect. Thank you very much. Very clear.

Thank you. Thank you. Our next question comes from Gilberto Garcia from Barclays. Please, Gilberto, your line is now open.

Hello. Good morning, and thank you for the call. You had a rather strong performance in prepaid in Mexico and postpaid in Brazil. Can you comment on what is driving the divergence in these two markets?

Well, there are two different markets and people think different. So in Mexico, since the pandemic, people prefer to go more to prepaid. We're growing a lot on prepaid. Our prepaid platform in Mexico is excellent. were growing there. And I think in the quarter, I think the service revenue in prepaid grow more than 10%. So it was very good. And in the other side, in Brazil, postpaid has been growing good. Brazil has been having a little bit more the economy has been a little bit more slowing down a little bit, so that's why people are not spending as much as they were spending in prepaid. In Mexico, it's the other side. People are spending. ARPUs are good in prepaid, and that's more or less what is happening, no?

But then are you being more aggressive in terms of promotions for contract subscribers in Brazil to drive this very strong performance?

No, I think in Brazil the strong performance that we're having in postpaid is not in one quarter. If you can see the last two years we have been very strong in postpaid or more than two years we have been very strong and we have been the leaders gaining net tax in postpaid in Brazil. So that's not new. We have been doing very good investments in the network in coverage as the in 4g in 4.5g giving the best speeds having good phones so and and and doing good in in in the in the plans that we have so that's not new in in brazil we have been doing that for a long time and And we're growing, and we have been the leaders growing in the postpaid segment in Brazil. And in Mexico, yes, it was a change, but we can see that that's a market situation because nobody is growing too much in postpaid, and the growth has been more in the prepaid segment. So that's really what is happening, and we're okay with that. And if the market switch in the next months because people feel more – secure to have like a contract in Mexico, we're ready to give them. So that's more or less what is happening in each market. Understood. Thank you very much. Very clear.

Thank you. Our next question comes from Diego Argao from Goldman Sachs. Please, Diego, your line is now open.

Yes, thanks. Hello, everybody. Hello, Daniel, Carlos, Daniela. Look, the first question is on Mexico. Can you just help us define, you know, this power transaction? Who is the buyer? What was the price paid for each dollar and the number of dollars that would be helpful? And still on Mexico, any, you know, updates on the pay-to-do license? We've been seeing some I know some articles out there, some rumors that might be a chance for you to get finally your KTV license in Mexico. So any update, it would be great. Thank you.

First, I'm going to give you an update on the new Tower spin-off that we're going to do. I think in our Tower spin-off, we have all the local preliminary steps in the different countries is completed. Local tower companies are now operating independently from the telcos operations. The spin-off at the American mobile level is subject to the authorizations of the Mexican tax authorities, the SAT, and the registration and distribution of the shares. of the new entity is subject to the approval of the Mexican Security Commission, the CNBB. And filing has been made before to the SAT and to the CNBB, and we expect to be in a position to finalize this spin-off more or less on the second quarter of this year. So that's more or less when we are in the tower spin-off that we have. On the towers that Cellmex sell, they sold around 900 towers. And I think Cellmex still has more towers to sell, but they sell 900 towers. And that's more or less what we get. We separate. Carlos can tell you more or less the difference and the profits that we get on that. And what was your other question?

The other question was on the PQD license. Any updates that you can share with us?

Yes. Well, as you know, the application is still pending. The application complies with all the current regulations. In addition to that, it has become public that it has an investment commitment and a network sharing commitment. As you know, pay TV is a highly concentrated market. There are two dominant players that have already been determined by the IFT. One of those have approximately 65% of a market share. There's no asymmetric regulations that have been imposed to this date. The two main competitors do not overlap in their cable network, so they have basically split The territory, and there's no competition for the AAA in those areas. Prices are consistently up. Subscriptions are not growing. So it is clear that competition will serve well to consumers and to the sector, and we believe that Claro and American Mobile is a clear alternative to that. So this will have to be determined by the IFT, and we expect, hopefully, some positive news on that front. There's no timing at this point in time for a new vote on the application.

That's very clear. And then just on the numbers for the power transaction, please.

Power transaction, I think the revenues obtained by Telmes were exactly $7 billion. They are booked on the other revenues. Thank you. Okay, thank you.

Thank you. Our next question comes from Carlos Legareta from GVM. Please, Carlos, your line is now open. Good morning.

Thank you for taking the questions. I have two very quick. In terms of share buybacks in the last two months, you've spent around $2 billion, if I'm correct. I believe in your investor today, you mentioned a figure of $3 billion. Is that still a number that we should think of as a reference? And secondly, regarding the competitive environment in Mexico and wireless, you've obviously done very well overall. But do you see any space to start increasing prices, perhaps? Thank you.

Hello, Carlos. Well, just to be very clear, what we said on the investor day was that we were expecting a time shareholder distributions, not buybacks, shareholder distributions, including dividends, to come to be as high as $3 billion since we were not having to deploy all our cash flow for the reduction of debt anymore. And as it happens, I think the aggregate distributions for last year were a little bit more than that. It was about $3.1 billion, if I remember correctly, of which about $1.8 billion were Shared buybacks and $1.3 billion were dividends. So going forward, as we have done, we always take a look at what is our expected cash flow, and then we deploy it in shared buybacks throughout the year, very much in line with the seasonality of our cash flow. So, we would expect to continue to do the same.

And on the wireless market in Mexico, we don't have any... We're not thinking to increase prices at this time. So, we don't think to increase prices. I think we're doing well because... We get the preference of our customers. I think customers can do number portability immediately. So we really have the preference of the customers, and we have the best coverage, the best network, the best speeds. We used to have like Oukla, that it's a company that measures quality. We were the leaders, even that we have more subscribers in our networks than the other ones. We have the best speed and quality of service. So I think that's really the reason why people and customers are preferring Telcel. So I think that's why we are in the wireless market. Thank you both for your comments.

Thank you. Thank you. Our next question comes from Cesar Davanco from Santander. Please, Cesar, your line is now open.

Hello, guys. Thanks for having a question. First of all, congratulations on your results. My question is regarding Colombia. I understand it was very clear your explanation regarding the competitive landscape, but I would like to have more color regarding Arapu, because we saw a decline this semester. So if you could give a little bit more about this, it would be great.

Well, I think ARPU is going down a little bit because of the big competition that we're having. So as you give more and more data to customers, then some customers prefer to reduce the rent or reduce his plan. So that's more or less what we have. But I think with the competition that we have, we're having... Good performance. We're growing in prepaid. We're growing in postpaid. It's very important. And you know something that is very important? Number portability is positive this year. So with all the competition that we have, number portability was very good in Colombia. So we're happy the way we're developing in Colombia.

Do you have any expectations regarding the next quarters? We don't have expectations.

It's very difficult to understand what your competitors are going to do. I think we have a very solid basis in Colombia. As we said, we have a good fixed company, a good TV, broadband. We are doing convergence. We have a good network in the prepaid, in the postpaid, quality. So we hope to maintain the way we're doing right now. I don't know if they are going to be more aggressive. Well, the market will be more aggressive, and we're ready. We have capacity in our network. We have a very good network, and we're doing fiber to the home. So we are investing in Colombia.

Thank you. Very clear. Thank you.

Thank you. As a reminder, if you would like to ask any question, please press staff followed by number one on your telephone keypads now. The next question comes from Andres Coelho from Escotia Bank. Please, Andres, your line is now open.

Thank you. Good morning. Two questions, please. In 2021, there was an increase in the funding of pension obligations. Can you explain what's behind the increase and if you are expecting a similar level for 2022? And a second question, is it public who was the buyer of the towers in Mexico? Was it Pelesites? Thank you.

Well, on the pension fund, I think it has mostly to do with the fact that rates had continued to come down in Mexico, so there was a little bit more of a shortfall in funding, so we decided to contribute a bit more. Obviously, this is now reversing, which is what is happening everywhere. The present value of future liabilities had gone up because rates had come down. Now rates are going back up again, and the present value of future liabilities is coming down. So we don't expect to continue to fund at this level.

Thank you.

The next question comes from Alejandro Chabelas from Credit Suisse. Please, Alejandro, your line is now open.

Hi, Michael Moulton. Thanks for taking my question. Most of my questions have been answered. Just two questions from my side. The first one is, if AFT noted that they expect to conduct the new review of asymmetrical measures during this year, I know it's a difficult question to answer, but do you have any ideas of what could change, or should we expect a similar type of adjustments in regulation that we have seen in the past? Anything that you can share is super useful. And the other one is in Brazil. There was this news that a government entity recommended to deny the oil acquisition. It appears to be a recommendation, not something formal. If you can share anything on that front, if it changes your expectations in any way, that would be super useful. Thanks.

In terms of the IFT revisions, it will start in December, as it was published by the IFT. We don't have any particular expectation. As you know, all areas of the company are heavily regulated, so hopefully this would be a good time to start some deregulation on the market.

What was the other question?

I think on Brazil, on Hoy, we have the approval on Anatel, I think, last week. And Cade is having a meeting right now, so I don't know what's going to be the decision. We need to wait until... they finish and see what's going to be the decision on CADE.

Thank you very much.

Very useful.

Thank you. Thank you. As a final reminder, if you would like to ask a question, please press the star followed by number one on your telephone keypads now. Our next question comes from Valentin Mendoza from Actimber. Please, Valentin, your line is now open.

Hi, good morning, ladies and gentlemen. Thank you very much for taking my questions and congratulations on the strong set of results. I have a couple of questions on my side. The first one has to do with Chile. I was wondering if you could share with us about a sense on the competitive landscape over there as we continue to see some RP pressures there. Are you sticking to have some change on this side with the merger with VTR? And the second question is a follow-up on oil in Brazil. Just wanted to hear your thoughts because some media has been citing that a competitor has requested the annulment of the regulator backing up the sale on the back of an illegal decision.

Alexis, do you want to talk about that?

Yes, on this last point, yes, we have heard the news. And, you know, so far, Anatel's resolution is in force and effect. And we understand that any problem with that is really just a procedural problem and that to the extent required, that resolution would be ratified by Anatel. So up to now, nothing would affect the closing to the extent that CADE approves the transaction.

On Chile, well, I think the competitive landscape in Chile is high. In the mobile and in the fixed, there's a lot of new fiber to the home companies that are putting fiber and that are selling broadband. But I think we're doing well. We're not doing anything with VTR until the end. we have the approval on the transaction. So what we're doing is we're still focusing in the networks, in the customers, in the prepaid, postpaid, and to grow our TV and broadband segment. So it's been... very competitive, highly competitive market. We have been increasing our promotions and we're going to do that this year.

All right. Thank you very much.

Thank you.

Thank you. We currently have no further questions. I will hand over back to Mr. Daniel Haas for any final remarks.

Thank you all of you for the call. Good afternoon. Bye-bye.

Thank you all.

This concludes today's call. Thank you so much for joining. You may now disconnect your lines.