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

Good morning, my name is Emily and I'll be your conference operator today. At this time I would like to welcome everyone to the America Mobile third quarter 2022 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 start followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the start followed by number two. Now I will turn the call over to Ms. Daniela Lacuona, Head of Investor Relations. Please go ahead.

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

Hi, Daniela. Good morning, everyone. Carlos is going to make a summary of the results.

Thank you, Daniel. Good morning, everyone. Well, the increasingly hawkish tone by the Fed's governance on the back of continued inflationary pressures brought about renewed increases in U.S. interest rates in the latter half of the third quarter after a lull in its first half with 10-year rates ending the quarter at 3.33%, just missing a break of 4% a few days earlier. That was the context of the third quarter for us. In the quarter, we added 2.9 million wireless subscribers, of which 1.9 million were posted clients. More than half of the new posted clients came from Brazil, with Austria contributing 329,000 subs, Colombia 215,000, and Peru 155,000. Net subscriber gains in prepaid amounted to 1 million, with Mexico leading the way with 402,000 net ads followed by Colombia with 300,000, and Central American and Eastern European blocs with approximately 135,000 each. On the PICLAN platform, broadband access has increased by 156,000 in the quarter, with Argentina being the main contributor, and the Central American and Eastern European blocs following suit. Mobile Post-it was our fastest growing access group, increasing 11.9% year-on-year, to $119 million, followed by mobile prepaid that climbed 8.2% to $119 million. In both cases, access growth accelerated in the third quarter. On the six-land platform, broadband access lines rose 2.1% to $31 million, while fixed-voice and pay-to-do accesses fell 1.6% and 1.3% respectively. The latter appears to be on an improving trend. Our third-quarter revenue reached $253 billion pesos. It was up 1.8% year-on-year, with service revenues rising 3% in Mexican peso terms. At constant exchange rates, service revenue expanded 5.9%, as mobile service revenue jumped 9.7%, and fixed-line service revenue remained almost flat by growing 0.2%. Year-over-year, the Mexican peso appreciated strongly vis-à-vis the Colombian and Chilean pesos, 12.9% and 18% respectively, and even more versus the Euro, 16%. It remained practically flat vis-à-vis the Euro dollar and the Brazilian dollar. The appreciation of the peso extends the difference between revenue growth in nominal and the constant exchange rates. Mobile savings revenue rose more than 9% year-on-year at constant exchange rates, both in the prepaid and the post-paid segments. It was the fastest rate of growth observed in at least five quarters, with post-paid revenue growth accelerating in each of the last two quarters, partly void by 5G services. Brazil led the way in mobile service revenue growth at 22.5%, which includes the impact of the incorporation of part of all its mobile clients, followed by Mexico and Eastern Europe with 9.7% and 6.9% respectively. At 3 percent, Colombia posted its best revenue growth in five quarters, as did the Central America block with 6.5 percent. Ecuador, on an improving trend for several quarters now, posted a 1.6 percent revenue increase in the period. On the first-hand platform, broadband revenue rose 3.4 percent at constant exchange rates, and that of corporate networks increased 12.6 percent, also the fastest pace in at least five quarters, helping offset a 5.4% reduction in pay-to-be services and a 6.1% decline in wireline voice revenue. Eastern Europe, the Dominican Republic, and Puerto Rico were the top performers with double-digit growth and revenue growth. Corporate networks was our fastest-growing business line across the board, with Brazil posting a 27.7% rate Colombia 14.4% and Mexico 8.1%. Sixth world and revenue increased between 4 and 5% in both Mexico and Brazil. Eastern Europe's revenue surging 13.5%. Our EBITDA rose 2.3% year-on-year to 83.2 billion pesos. It was an increase of 5% at constant exchange rates. With EBITDA margin, which has been on an improving trend all year, expanding to 38.8% from 38.6% a year before. Brazil and Eastern Europe were the main generators of EBITDA growth with 10.8% and 8% respectively. EBITDA expansion helped bring about a 5.7% increase in agro-operating profit of 44 billion pesos, resulting in an 18 billion pesos net profit in the quarter. After 17 billion in comprehensive financing costs, there were 33% below that of the prior year, mostly on account of the foreign exchange losses incurred then. The increase in current and deferred taxes has mostly to do with our having booked a certain tax assets a year ago, which reviewed this line item at the time. The difference is explained by the increasing profits that took place since then. Our operating cash flow allowed us to fully cover our capital expenditures of $105 billion in the nine months to September. We remember, together with $72 billion in net financing raised in the period, suffice to fund $45 billion for $6 billion in shareholder distributions, including $21 billion in share buybacks, $20 billion in labor obligations, and $13 billion in the net acquisition of ownership interest coming from the acquisition of a portion of all its mobile clients on one hand, and the sale of our interest in Seattle, Panama on the other hand. Our net debt, excluding leases, ended September at 412 billion pesos, equivalent to 1.39 times our last 12 months EBITDA after leases in Italy. The spin-off of CITO Latin America in August resulted in the separation of 29,090 towers in 13 countries, but also brought about a reduction of 47 billion pesos in our net debt as it migrated over to CICLOS. With this, with summary, I will pass the floor back to Daniel Haas. Thank you, Daniel. Thank you, Carlos.

We can start with questions, please.

Thank you. At this time, I would like to remind everyone in order to ask a question, press star then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Our first question today comes from Diego Aragoa with Goldman Sachs. Diego, please go ahead.

Good morning. Thank you for taking the question. The first question is related to the policy now. Can you help us?

I think you have a... Diego, can you hear me? Yes, you have a bad connection, Diego. We don't hear you very well. Is it better now? A little bit better, but okay. So I'll speak a little bit slowly because I don't hear you. We don't hear you very well. Thank you.

Sounds good. So, yes. So the first question is related to the towers in off. I was wondering if you can help us to quantify the impact on your financial expenses related to the mission. which you can also provide the cost of the powers for American model. Secondly, I would like to understand your tax rate in the quarter, which is higher than in the previous quarter.

Thank you.

We don't understand the first question. The second question on the tax ratio is what you are asking, Diego?

Yes. on the tax rate in the quarter as well as the cost of the power that is not recently.

Okay, okay. On the tax rate in the quarter, the effective tax rate was high, was 40%. It was mostly to do With the tax regime in Mexico, as you know, we have an inflationary adjusted tax regime, which in essence will allow you only to deduct the quote unquote real interest payments on the debt. So not the nominal interest that you pay on the debt, but only the real payment, that is the nominal rates, minus the inflation. The inflation went up and has basically more or less matched the rates on the debt of America Mobile. the deductions for interest payments in Mexico have become much smaller. So that's basically what explained the situation in the quarter. It obviously also had to do with there being a smaller profit in this quarter, but it was basically to do with this inflationary accountancy. Okay, there will be some changes in our setup, so we don't expect this to continue going forward. On your first question, which had to do with the tower, we didn't quite hear it, so maybe you can repeat it again, please.

Okay, apologies for the technical issue here. On this idea, you know, we are concerned that the country could abuse your state and keep you there. Can you just give us some guidance around that? Thank you.

Diego, you have a very bad line. Why don't you send me your question via text or email, and we'll read it out loud. And while I get it, we can probably take the following question.

Perfect. I will do that. Thank you. Thank you. Thank you, Diego.

Our next question comes from the line of David Joyce with Barclays. David, your line is open.

Thank you. Can you please help us understand if the wireline RGU weakness was more from a macroeconomic softening or was it from a step up in competitors' offers? Or are you just seeing your own clients switch to mobile-only voice and video? Thank you.

All over the world, Yes, good morning. All over only in the results of this quarter, you see a very good increase in revenue in mobile and a good trend in the big size. So we grow 156,000 subscribers in the big size. So we have a good increase. We used to have in the first quarter and second quarter negative. trend in the revenue service in the PICS line, and today we have 0.2% increase in the PICS side. So we are increasing, and I think we're doing much better. The competition is high, the competition in some countries higher than in other countries. In the PICS side, you know that there's a lot of companies that are putting fiber all around Latin America, but I think we have a good service, a good combo, and we're offering mobile convergence, and it's helping us to maintain and to have a better rate, less disconnections with this. We have mobile fix, and brought them together in a combo and it's helping us. Pay TV is also very important. We're growing also with it being less the rate on these connections on the pay TV. So I can say that overall in mobile we do very good in the revenue growth and in fixed the trend is going better. We're growing 0.2% and we used to have negative the growth in the peak size in the other quarters.

Thank you. And could you please update us on your plans for your 5G and fiber rollouts where you expect to be by the end of this year and end of next year from your key markets?

Again, again, please. 5G and growth on fiber? is what you're asking?

Yeah, how much of your plant do you expect to be upgraded by the end of this year and next year for 5G and for fiber?

It's different in each country, but I can tell you that from September last year to September this year, we have been putting around 7.5 million houses in fiber so i think we do a very good increase in houses in fiber i think it's one of the highest that we have been having in the last year and it's helping us to get more speed better quality and to have more customers so we are upgrading in part of this is upgrading our network the other part is going to new cities green fields there so that's what we're doing so it's different in each country but that's more or less what we have been doing in 5g in countries where we have licenses let's say in mexico in mexico we already have 64 cities the the main cities in 5g we have been covered more than 60% of the population in 5G. You could see that in Mexico, 5G is helping us to increase our ARPU in phosphate We increase our ARPU 7.6% in Mexico. So 5G is helping. The ARPU in 5G is higher than the ARPU that we have in 3G and 4G. So 5G has been very successful in countries where we are putting 5G. In Brazil, we are developing. We are still starting to grow in 5G. So in the countries where we have license, 5G has been with a very good result. I don't know if Oscar wants to talk a little bit more about the PICS.

As you mentioned, we are the home partners with FHIR. Another thing is that we operate on the cable network .301, so we could deliver 1 gigabit speed to most of the home partners that we have.

So we are upgrading the network plus putting more fiber. It's what, yes.

Good. Thank you very much. Thank you.

I have Diego's question, so maybe we can continue with that one. About the tower Spino, can you help us quantify the impact of your financial expenses in 2022 related to the leases? It will be great if you can provide the cost of these towers for AMX as well.

The question is more like the cost in terms of EBITDA? No. In terms of the rents? The rents. So the descent would be probably at an annual rate approximately $350 million.

The rents that we're going to pay to CTOs is going to be around $350 million.

And then there's a follow-up question. AMX continues to reduce its stake in KPM. Can you give us some guidance about it?

Well, we have been selling at a point where we thought we were good. I don't think that we have any specific objective or any target in terms of getting I think it's just very opportunistic. As we have said in the past, this is for us a financial investment. We will be taking profits when we think it's convenient.

Good. We can proceed with the questions from the audience, please.

Thank you. Our next question comes from Alejandro Chavez with Credit Suisse. Please go ahead.

Can you hear me well?

Yes, Alir, yes.

Okay, great. Margins in Chile were very low this quarter. Is there anything in particular that explains this? And do you have any estimate on the level of margins that we should expect going forward and also on the potential for synergies that could be achieved in this region with the DTI merger in the long term? Thanks.

Well, in Chile, I think finally we get the authorization and we are starting with this joint venture. In my view, well, first I have to say that in Chile, Conditions in the market are really aggressive, so there's a lot of competition. Prices have been going down, and for the size of the country, there are a lot of competitors in peaks, in broadband a lot, and very aggressive in the mobile side. In terms of the economic situation of the country, Carlos can tell us that the The exchange rates have been going high and the inflation also is high.

Yes, I think the country has developed a very major client account deficit, and that has been driving the loss of FX reserves, and that has really been going hand-in-hand with the pressure on the peso. We think that this will be more contained going forward, but certainly it has been a factor in the first few months of the year.

So I think we're happy to do the joint venture. We were more focused on the mobile and in the corporate side. Liberty or VTR has been more focused on the broadband and on the TV. I think together we do, I think, a very good combination. And what we're going to do, you're going to see in the next year that we're going to have a good synergy in the company. We're going to invest synergies in capex, synergies in costs, synergies. We already put a new management there. So I think for me, I'm confident that the next year we're going to see good improvements in the Chile operation. Together, we have more or less the size of a big company, so it's going to help us, economy of scale over there. So I'm sure that in the next year, we're going to see good improvements in Chile.

Thanks so much. Perhaps a follow-up just on Brazil. Have you already adjusted prices for the postage subscriber rates for inflation? How high was the adjustment in postpaid for you?

I don't remember. I think we adjust some prices in postpaid in Brazil. I don't know exactly how much. I don't think that's exactly one price adjustment, depending in the plans maybe. But yes, we do adjustments only on the postpaid subscribers in Brazil.

Thanks so much.

Thank you.

Our next question comes from Fred Mendez with Bank of America.

Please go ahead, Fred.

Hello. Good morning, everyone, and thanks for the call. I have two questions as well. The first one on Mexico, and I guess it's a follow-up from a previous question. until Max, there was an important improvement in this quarter, growing 4.7% year-over-year. And just wondering if this is an impact from your fiber deployment, and now it's, you know, you're containing churn, and it's getting harder to, let's say, poach our clients, or if for any reason competition is easing a little bit, or it's something related to price. Just trying to understand the dynamics, that was my first one. And then the second one in Brazil, on mobile, you are doing very well in terms of net ads and your performance has been solid on the mobile front. But my question here is, you increase the number of clients on postpaid by close to 25% year-over-year, including Oi. If this at some point could be a challenge in terms of billing, in terms of collecting the receivable from these postpaid clients, changing the structure of your clients in Brazil in a very fast way, How could that eventually be a challenge for the operations in Brazil? Thank you.

Well, it starts in Brazil. I don't think there's a challenge over there. I think we have been preparing to take all these customers in prepaid and not only on postpaid, also in the prepaid side. And we were working and we're going to still work on that to bring these customers back to our billing system, to our network. We already do that in the Nextel acquisition that we have and we were very successful. So I think we're going to have good synergies. We're on target on the synergies and we feel comfortable passing these subscribers to our billing network, customer care and everything. We have a good experience. Brazil do that very good. And we're confident that we're going to have a successful transition.

And in Mexico... About Mexico, as we mentioned before, we've been very aggressive planning for that. Compasses with fiber, almost 68% of our customer base is already with fiber. And we will continue to migration every month the customers to fiber and getting into new areas as a greenfield. So we are beginning this year almost 2.9 million compasses with fiber. And another good thing in revenues in Mexico is in the corporate side, we've been growing selling products like clouds, like SD-WAN, like security, has produced a very good development this year. So I think the combination is the way to compensate the decline that we have in voice revenues, and we will continue to grow internationally.

Thank you. Perfect. Very clear. Thank you, Oscar. Thank you, Daniel. Thank you. Thank you.

Our next question comes from the line of Carlos Lagarto with ITAO. Please go ahead, Carlos.

Hi, thank you. Good morning. Thanks for taking the question. I have two, actually. The first one, just going back to the spin-off of the towers, now that the CAPEX required for the tower deployment has been mostly moved to CTOS LATAM, should we expect any changes in the CAPEX guidance on a yearly basis for you guys? And secondly, On this same issue, I understand you ended up keeping some of the towers, I understand, in Peru and Dominican Republic. Is there a possibility that you will divest those towers to sitios latam down the road? And if so, could you perhaps pay an extraordinary dividend with those proceeds? Thank you.

On CTOS Latam, I think the capex for this year, we are not going to have it. We have only three months, four months without CTOS, so this year is no change. And for next year, we're still working on our budget. We haven't finalized that, but we still see very good options to grow. There's not too many sites that we have been doing every year. So we have a big amount of sites, but there's not big ones that we have been doing in the last year. And Mexico was out with tele-sites. They were doing the sites. And we have been seeing good opportunities on growth, on broadband, on 5G. So I don't know exactly if there's going to be a small reduction on the CapEx or not because of sites, but we still see very good opportunities in growing in Latin America. So that's... important, and we're going to see, we're looking very carefully to have a very efficient CAPEX also for next year. And the other question? Dominican Republic and Peru, yes, we're going to sell to the towers, to sitios. I think as we put it in the consultation, In the release, we think we are going to sell them, and maybe at the beginning of next year, we think that we can complete those operations. It still depends also on the site management and what they decide, but we think that we're going to sell Dominican Republic and also Peru.

Thank you, Daniel. And if I may follow up, just in Argentina, if you could comment what is going on in terms of the competitive environment. I mean, you guys are adding subscribers both in wireless and fixed. However, the results are, I mean, in real terms, as you present them, are being pressured. I understand this is given that the pricing is very aggressive currently. But if you could comment on that, that would be great. Thank you.

No, I don't think we are changing our our plan in her fix or in mobile. I think in some quarters we have more increase on prices because of the inflation. In other ones we have a little bit less price increase and and we fell short of inflation in some months, so doesn't depend on that. I think we are aggressive because we are. doing households with fiber, our plants are good, our quality is also very good, and I think in Argentina we are doing exceptionally good in broadband, growing in TV, and doing good in the mobile side. So I'm not, if you think we are not reducing prices or doing big promotions to have this growth, I think we have been stable on the prices and increasing maybe not increasing at the month that we need, but maybe in the next month we do those increases, and that's been okay for us. So we're growing, and we're doing also it's important for us. We used to be only mobile. Today we're doing combos and our customers with this combo in Argentina have been very happy with the combo, having TV, having broadband and mobile prepaid or postpaid there. So that's also very good for us to have less churn in the future. So we're happy with the development in Argentina.

Just to add to what Daniel said, I think that the contribution of Argentina I mentioned in the note to the growth of broadband accesses was enormous. I think they added nearly 100,000 broadband accesses alone. So I think the momentum is very clearly there. We have had a very good cash flow in Argentina. And I think that the issue with Argentina is that they have inflationary accounting, and it's very difficult to discern exactly what is going on from the accounting. But from the point of view of the growth of the business in terms of accesses, from the point of view of market share, from the point of view of cash flow, it's doing really well.

And another important thing is we still see very good opportunities in the peak size in Latin America. I think there's specific some countries, that we think that the growth could be good. It's a good opportunity, still good prices over there, and with everything that we have in the country, easy for us to increase our participation in the broadband and TV side. So that's what we're looking for next year budget and to also to still do this fiber and to the house and to upgrade our cable that we have in each country.

I appreciate your comments, guys. Thank you.

Our next question comes from Lucas Chavez with UBS. Please go ahead, Lucas.

Hey guys, thanks for taking my question. So the first one is, we noticed a reduction in the KPM investment over the quarters from 20% to 17% something. How do sales were made and do you expect to continue to invest in the next quarters? And if I may ask a second one, what are the main cash and pre-cash growth improvements you expect for 2023 and how could that affect sharehold distribution going forward? Thank you.

The second question, we don't hear you. What was the second question?

So the second question was about pre-cash flow improvement. So what do you expect for 2023, and how do you expect that to affect your cash flow going forward?

Well, we haven't finished our budget for 2023. We're still looking, as we said, on the capex, on the growth. Cost reductions is important. Inflation in some countries also is important because the pressure on prices has been high, but we're working on that, and I think we're going to finish that end of November. So that's more or less where we finish our budget for next year. But still, as I said, still seeing good opportunities in 5G and broadband in Latin America.

And on the KPM, we had just mentioned in the previous question, but it's basically, as we have said before, this is a financial investment for us. and we don't have any specific target in terms of where we would want to be going forward in terms of net reductions. We did have some opportunistic sales in the quarter, and that's basically what it stands for. We don't really have any target, and it will very much be a function of the prices that we get to see in the market.

Okay, thank you. Very clear.

Thank you very much.

Thank you. Our next question comes from Marcelo Santos with JP Morgan. Please go ahead.

Hi, good morning. Thanks for taking my questions. I have two. The first one is regarding the opportunity you just mentioned that you saw on the LATAM fixed line. So you said you see a lot of room for growing broadband. Could you rank the main countries that you see most opportunity to specifically grow the broadband? And the second question is regarding ICMS in Brazil. So you passed only to postpaid. I wanted to understand better how is the behavior on prepaid? Did you capture higher revenues? Did clients, did you give more allowance to clients? How has the prepaid business done with the ICMS reduction in Brazil? Thank you.

Well, I think on the opportunities that I'm seeing in Latin America, there are, I think, good opportunities for us in some countries because we are not so strong. Let's say Central America, I think we see good opportunities. Penetrations are low. Ecuador is also good opportunity. Peru is good opportunity for us because we still rolling out fiber and growing very good. Dominican Republic is also doing good. In Mexico, we have been very strong rolling the last two years. We're doing a lot of new fiber and moving some customers to that. It's very good. Also, in Europe, in all the eastern countries in Europe, we are also moving from only being mobile to being mobile and fixed, and it's also good. In Austria, we have a new regulation, very, let's say, taking out a lot of restrictions that we have for the pig side and it's also going to help us to increase our broadband and our pigs share. So there's a lot. In Brazil, we're doing good. We haven't entered in some new areas, and every time that we enter a new area, we are doing also very good. We have more competition in the areas where we have, but when we put fiber in other areas, there's a good competition. Good growth, a new net tax for us, good net tax for us. So that's more or less how we see. In the other side, next year, we have also 5G in some countries. I think we're going to improve Brazil in 5G. Maybe we have in Colombia, we don't have the license, but if we get the license in 5G, then we're going to do that. Chile, I think we're going to start to roll out 5G also. Austria, we're going to do more on 5G because it's increasing. So there's big opportunities in each country. So we are really working on very detailed and where we want to put the capex and where it's more profitable, the capex that we're putting.

On your question on prepaid in Brazil, let me just point out, because this is really interesting, revenue growth in prepaid in Brazil's quarter was 32%, 32.3%, which already, yes, it incorporates a little bit impact of oil, which was already in second quarter with 25%, but it also incorporates, we think, the issue of the reduction in the ICMS, which is basically leading people to spend a bit more on the product.

And I think it's Not only in Brazil, in every place. If you take some taxes from telecommunications from the people, then the people is going to use more. They're going to use this money to use more our products. And it's exactly what is going to happen. It's happening, and it's going to happen in Brazil with this reduction on the ICMS.

Perfect. Thank you very much. Very clear. Thank you.

Our next question comes from Walter Pichik with LightShed Partners. Please go ahead.

Thanks, Dana. Just following up on those comments about Brazil and also if you look at ARPU in general in Mexico is obviously very good. Doesn't really seem like any signs of recession. Have you seen anything beyond that? I know some economists are expecting some recession in 2023. How do you think that could impact your business or is it possible that this has become such a necessary service for your customers that you won't see an ARPU impact or other impacts in 2023?

I think, well, we don't know exactly. Everybody's talking that there's going to be a recession for next year. We don't know exactly how deep it's going to be in Latin America and in which countries we're going to have higher recession or for more time. But telecommunications has been very resilient, has been a product that people is using, and I think they need that. We see that in the pandemic, in the COVID, and people moving to their houses and using more. And all of these things have been making everything more digital for us. All those things are making that people is every day more connected and needs to be more connected. So I still think that telecommunication is a product that people is going to need with recession or without recession.

Just to give you a reference, the latest outlook that we have for Latin America, including the latest IMS forecast, but also the one from investment banks. The only country in Latin America that is expected to be in recession that year is going to be Chile, as of today.

Let's hope that's true. Carlos, can I also ask you about the sherry purchase? Obviously, OI took some cash. So if I look at the share repurchase activity for Q1, Q2, and Q3, it was obviously lower than Q4 of last year, but you also spent a lot of cash on OI. Now that OI is paid for, you know, maybe you have to kind of amortize it into the fourth quarter. Should we expect the share repurchase to kind of return to Q4 2021 levels, you know, within the next couple of quarters now that OI is behind us?

I think it's important not only to look at share buybacks, but total distributions. What we had, which we didn't have last year, is that we made all the dividend payments in one installment in August, and that was roughly equivalent to $1.4 billion. So it was quite major. If you look at total distributions to shareholders, year-to-date through the third quarter. I think they're very much in line with what we did last year, okay? So I think that we will try to remain on track, more or less, with distributions based on the outlook that we have for free cash flow for the year.

Great. Thank you, Carlos.

Thank you. Thank you.

Our next question comes from Sumit Dasa with New Street Research. Please go ahead.

Hi there. Yeah, I just got one question at this point. Thank you. And it is on, it's back to Chile. Given the tough macro and the tough trading conditions in that market, I wondered if you can give any thoughts on to how you are looking to fund the JV going forward. Presumably your thoughts on that may have changed with the operating environment. And I wondered, is there a possibility that you'll have to put more equity into that JV in the near future.

Thank you.

I think we already agree on the funds that we're going to put this year for Chile. I think synergies is going to give us a good improvement in cash flow also there. But always we can talk. There's not any luck on that. And if we need to do something else, we need to sit down with our partners and decide what to do. So it's going to depend how things are going and how things are evolving there. But in my view, I think Liberty and NOS are really committed to Chile and to do a very good and have a successful on Chile. So that's more or less what we agree and it's what we're working for.

Okay, thanks. Thank you.

Thank you. And our final question today comes from Megan McDonald with Barclays.

Please go ahead, Megan.

Hi. Thank you for taking my question, and congratulations on the results and the two deal closings that's been up. Just two quick questions. Jumping back to Chile, I wanted to know when we could expect more detailed guidance or an update on next steps. I would assume that's probably post Liberty results. And then the other question on Chile, would you evaluate bringing in other partners? I know you have a connection to Telefonica, for example, with Subsea and any GSL you could provide on Subsea would be helpful as well. And then finally, any color that you guys can provide on liquidity at cloud or Chile and particularly how much cash and as well as debt is at the cloud or Chile level and additional available liquidity if you have any. Thank you so much.

Thank you. Good morning. First, we don't have any talks with nobody. I don't think we want to have a third partner in Chile. I don't think there's a space to have another partner on the authorization. I think the company there is very close to second place in terms of revenue and first place. So we have the size in Chile, consolidation in Chile. I think it's very good, and that's what we have. We have been working of what we can. on the synergies that we can get together. So we need to speed up on that. We need to work very hard and to do all these synergies for end of this year and all the next year to have all these synergies there. That will give us much better results. And savings, I think what we said last time is that the savings could be in synergies for more than $100 million, $180 in three years. So that's more or less what we are looking in terms of synergies. Good synergies that we could have also is that they are not going to take our customers and we are not going to take. So this churn is going to help us a lot. in cost and expenses, in people, so in the network. So there's a lot of things that we can do, and we need to work on that. So we are focused on working, on operating, and not to get a third partner right now. And in terms of the liquidity, the only thing that I agree is that we – We already have committed funds for this year, and if we need more funds next year, we need to sit down with them and to review the business cases and see what we can do. So I cannot say anymore because until today we already have committed for this year. So next year we need to sit down and to review what we are going to do if we need more funds. So that's really what is happening in Chile.

Okay, great. Thank you very much. I appreciate it.

Thank you.

Thank you.

Those are all the questions we have for today. So I'll now turn the call over to Mr. Daniel Harsh for final remarks.

Thank you all for being in the call. Just to reiterate that I think the growth that we have in mobile was excellent in the quarter and that in PICS we're improving and I think we're going to still improve more. Thank you very much and thank you for being in the call.

Thank you everyone for joining us today. This concludes today's conference call and you may now disconnect your lines.