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

Good morning. My name is Drew, and I will be your conference operator today. At this time, I would like to welcome everybody to the America Mobile Second Quarter 2022 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remark, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by one on your telephone keypad. If you would like to withdraw your question, press the star key followed by two. Thank you. Now I will turn the call over to Ms. Daniela Laquona, Head of Investor Relations.

Hi, thank you. Good morning. Good morning to everyone. Thank you for joining us today to discuss our second quarter financial and operating results. We have on the line Mr. Daniel Sash, CEO, and Mr. Carlos García Moreno, CFO.

Thank you, Daniela. Good morning, everyone. Carlos is going to make a summary of the second quarter of 2022 financial and operating report. Thank you, Daniela. Good morning, everyone. The trend towards high interest rates in the U.S. dollar market that began in March continued unabated in the second quarter with both short and long-term interest rates rising. By the second week of June, long-term rates peaked and began a downward trend as markets shifted their focus towards the negative impact on economic activity that is really derived from substantially high short-term interest rates. By the end of the quarter, the dollar had appreciated $1.6 million including the Mexican pesos, the Mexican reais, the Colombian pesos, and the euro. In the end of June, with 306 million worldwide subscribers, after incorporating 12.9 million subscribers from the acquisition of oil in Brazil. Organically, we had net admissions of 6.1 million, which includes 1.8 million posted subscribers, and Brazil led the way in terms of supported work, having added 339,000 subscribers, followed by Colombia with 272,000. We gained in the quarter 1.3 million people subscribers, of which approximately 350,000 came from Mexico and Colombia, more or less equal, and 257,000 from Brazil. In the pipeline segment, we connected 186,000 broadband accesses, of which half came from Brazil, 38,000 from Eastern Europe, 25,000 from Central America, and 20,000 from Mexico. In terms of package growth, mobile postage was the main driver of growth at 10.9%, followed by mobile prepaid at 4.2% and 5.5%. Our revenue reached 217.4 million pesos in the quarter, 3.3% more than in the yearly quarter in Mexican pesos. With net savings revenue expanding 4.5%. At concept exchange rates, the latter increased 4.9%, excluding Argentina because of its high inflation rates. So it's 4.9% between the impact from the incorporation of former oil clients and revenue from May 1st. Including that effect, savings revenues were up 4.2%, including that effect. Both brief and post-earning growth rates were similar in the quarter, approximately 8.5%. once the oil clients are taken into account. With 20% mobile service revenue growth, 13.7% without oil, Brazil was our top performer. As I will add, Eastern European operations posted 9.6% growth, Mexico 8.8%, Peru 7.5%, the Dominican Republic 6.9%, and Austria 6.2%. Broadband revenue was up 3.3%, a similar pace to that of the first quarter, where corporate network revenue rose, increased to 8.9% and 4.9% in the prior quarter. The decline in pay-per-view revenue moderated somewhat to minus 5.3%, mostly on account of the improvement in basics. The top performance in broken ground expansion was in the Dominican Republic at 15%, Eastern Europe at 11.3%, and Puerto Rico at 10.1%. This slide does not include Argentina because of its organization. Nonetheless, it must be pointed out that Argentina is exhibiting the fastest action goals in this area. Second quarter EBITDA totaled 82.7 billion pesos, a 4% increase in nominal trends, and 4.2% in constant exchanges, with EBITDA margin rising 0.2 percentage points to 38%. EBITDA expanded 10.3% in our Eastern European operations, 8.8% in Brazil, 8.6% in California, and 5.6% in Mexico. Our operating profit of 41 billion pesos in the quarter resulted in a net income of 13.7 billion pesos after the comprehensive financing cost of 18 billion pesos, which approximately half were net income spending. Throughout the first half of the year, our operating cash flow, which already reflects our working capital requirements, fully covered our capital expenditures in the amount of 65 or 60 billion pesos. We raised 43.8 billion pesos in net financing degree, a fund, 19.6 billion pesos for the purchase form, and a price adjustment related to the health platform, and 11.6 billion pesos in labor obligations. Shareholder distributions of 16.3 billion pesos in share buybacks were partially funded by 2.2 billion pesos in dividend income from our KPM and the license base. Given the size and tonality of our working capital requirements, we foresee a reduction in the second half of the year. Our net debt excluding interest stood at $14.7 billion at the end of June, at $7.1 billion in increase relative to December. It was equivalent to 1.36 times net debt to APM Unita. Approximately 55 billion pesos in debt obligations will be transferred to Central Latin America upon stream of American mobiles expected to take place in this . With that, I would like to pass the floor back to Daniel for Q&A. Thank you, Carlos.