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Good morning, my name is Chach and I'll be your conference operator today. At this time I would like to welcome everyone to the America Mobile fourth quarter 2024 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speakers remarks there'll be a question and answer session. If you'd like to ask a question during this time simply press star followed by the number one on your telephone keypad. And if you'd like to withdraw your question please press star followed by two. Thank you. Now I'll turn the call over to Ms. Daniela Lacona, head of investor relations. Please go ahead.

Thank you. Good morning everyone. Thank you for joining us today to discuss our fourth quarter financial and operating results. We have on the line Mr. Daniel Hach, CEO, Mr. Oscar 'Carlin-Jauzke, CEO and Mr. Carlos García Moreno, CFO.

Thank you Daniela. Welcome everyone. Carlos is going to make a summary of the fourth quarter 2024 results. Thank

you Daniela. Good morning everyone. The first quarter ended with a renewed surge in US interest rates with 10 year pressure jumping approximately 80 points in the quarter. The facility year is just higher 4.6 percent. Probably the highest level since the end of April. This significant increase in long-term interest rates took place not long after the Fed reduced its policy rates by 50 basis points in September, 14 months after completing a period of policy rate hikes. A stronger than expected labor market and economic activity led to major revisions in expectations regarding future reductions in policy rates by the Fed and hence the pass of medium and long-term yields, all of which resulted in the spiking yields mentioned above. Throughout the period substantial yield of currencies in our region of operations depreciated versus the dollar with the Brazilian real experiencing the worst decline of all, 13.7 percent followed by the Chilean peso 11 percent and the euro with 7 percent. We added 2.1 million posted subscribers in the fourth quarter with Brazil contributing 655,000, Colombia 178,000 and Mexico 141,000. On our prepaid platform we've registered 1.3 million net disconnections in the period. We had minus 1.8 million in Brazil after a clean profit space. But Mexico gained 302,000 tops followed by Central America with a total of 96,000, Colombia 128,000 and Argentina 164,000. In the tick-line segment we obtained 320,000 bull bar accesses including 132,000 in Mexico, 75,000 in Brazil and 45,000 in Argentina. Boards and -per-view units registered minor losses in the period, 88,000 in all. Our posted base increased 5.5 percent -on-year with prepaid expanding 0.4 percent and fixed bull bar accesses 4.7 percent. All the above figures include those reported by Jaro VTR in Chile over the last two months of 2024. Fourth oil revenue was up 18 percent in Mexican peso terms to current rates 7 billion pesos. The service revenue planning 19.1 percent and EBITDA 16.4 percent to 91 billion pesos. Those rates of increase reflect the consolidation of the Chilean operation from November 1st but were largely boosted by the accounting methodology associated with the Argentinian operations. Since these operations take place in a country that is considered inflationary, the annual revenue is adjusted for inflation and expressed in December 2024 prices. They converted to Mexican peso at the end of the year exchange rate, the real IFRS 29. The first quarter figures are obtained subtracting from the annual figures also obtained through September. Since Argentina's rate of inflation was up 18 percent through December, whereas the Argentinian peso only depreciated 4 percent in Mexican pesos. It has depreciated shortly in December 2020. The accounting adjustments mentioned are considerable when expressed in Mexican pesos. Excluding Argentina and therefore those are used having to do with the accounting methodology, America's fourth quarter revenue increased 10 percent in Mexican peso terms with 10.7 percent service revenue growth and 8.6 percent EBITDA growth. On the consolidation of the Chilean operation, its contribution to our consolidated revenue over the last two months of the year amounted to 3.8 billion pesos. Now, as constant exchange rates, as has been customary in our quarterly reports, excluding Argentina from this calculation, our fourth quarter revenue rose 5.7 percent year on year on the back of a 6.6 percent service revenue increase, the best performance in over a year, with EBITDA expanding 5.1 percent before one of adjustments and 7.2 percent after those adjustments were made. This increase has included the impact of the consolidation of the Chilean operations, but was felt more strongly in the Switzerland platform as can be seen in the moment. Mobile service revenue expanded 6.2 percent year on year in the fourth quarter. Without Chile, it would have been up 5.1 percent in line with the price of wealth seen in the prior three quarters. Postpaid revenue rose 8.5 percent in the quarter compared to 6.3 percent in the prior quarter, whereas prepaid revenue increased 2.5 percent, bounced largely from 3.6 percent in the third quarter. Mobile service revenue accelerated in Brazil, Colombia, Ecuador, and Peru, offsetting the deceleration of service in Mexico and Central America. Six lines of service revenue climbed 7.4 percent, including the Chilean operation, and would have posted a 4 percent increase without it, in line with the price of service in the second quarter, but somewhat lower than the growth rate of the third quarter. Broadband revenue growth accelerated to a 9.8 percent pace from 7.4 percent in the prior quarter, and corporate net worth revenues to 12.3 percent from 10.1 percent, with -to-be revenue growth hitting 5.2 percent compared to a 0.8 percent decline in the third quarter. Six service revenue growth decelerated in Mexico, Brazil, and Colombia from the pace in the prior quarter, but increased at a rate of 2.6 percent, reflecting the net worth revenue in Central America. American mobile spent an operating profit of 46.4 billion pesos in the fourth quarter, 11 percent higher than that of the -to-year quarter after the depletion of motivation charges that increased to 2.6 percent, reflecting the partly-reconciliation of the Chilean operation, inflationary adjustments of the Argentinian assets, and the depletion of new assets, such as Coalum 23 and 24 in North America and Colombia. Our net income came in at 9.5 billion pesos the first quarter, 147.5 percent lower than the year on account of higher comprehensive financial costs. This totaled 30 billion pesos, nearly half of which was associated with foreign exchange losses. Our net income was equivalent to 15 billion pesos per share, and our net at the end of the year was 4.88 billion pesos, excluding capitalized lease obligations. In cash flow terms, it increased 19 billion pesos over the year, and helped us to announce, according to Fed, 1 billion pesos in capital expenditures, 51 billion pesos in shareholding distributions. These are net of the dividends received from our variation stake, and 24 billion pesos in the administration of labor obligations. At the end of the year, our net debt stood at 1.44 times last month's EBITDA. The latter figure already reflects the impact of the consolidation of cargo BTR in Chile, in America mobile from October, from the end of October. So with that, I would thank you and further the floor back to Daniel. Thank you. Thank you, Carlos. I think we can start with a Q&A. Hello. Hello.

Thank you. Sorry, apologies. At this time, I would like to remind everyone in order to ask a question, press start, then the number one on your telephone keypad. We'll pause here just for a moment to compile the Q&A roster. So the first question comes from Carlos de la Garraza from Itao, BPA. Your line is now open.

Thank you. Good morning, everybody. I have two questions on my end, the first one is if you have a specific capping guidance for this year, given obviously the sharp effects movement, I don't know if there's been any deviation from what you've guided in yesterday. And secondly, maybe Daniel, you can talk about the details of the MVNO deal with Nodank. I'm just concerned if there's any, or are you at all concerned if there's any potential for trivialization of your own product or in terms of network capacity, if there's any kind of concern at all, even though it might become very large at some point? Hi, Carlos.

On the capex, I think we give guidance for the three years. I think we are on that guidance, including what we're incorporating, the capex of Chile. So we still don't know exactly what's going to be the capex for Chile for this year, but what we have is we do three-year capex in Chile, 23, 24, and 25. I think this year is the last year where we're going to change the network, modernize our network 5G, we're going to put more coverage, we're going to do fiber, more redundancies. We're doing a lot of things in Chile. We're on track there. We have a very good management in Chile, so we're very sure. Maybe it could be 250 to 300 million more of Chile. Still we don't know for this last year. But the capex and the guidance that we gave last time is still the same, plus what we're going to put in Chile for this year. I think next year in Chile maybe can reduce, but this year we're finalizing the last set, the three-year plan that we have to modernize all the networks that we have. In Brazil with Nubank, we are happy with them. We are doing okay, and we are not worried that Nubank can cannibalize our three-page subscribers. So we're happy. I think it's a very good alliance that we have with them, and we're doing okay. So it's okay. Good naming, they recharge a lot with Nubank, so we are doing very good.

Okay, thank you.

Thank you. The next question is from Walter Pietcik from LightShed Partners. Your line is now open.

Hi, good morning. Joanne for Walt. Thanks for taking the question. I kind of have a follow-up. Even with Chile included in the capex guidance, I guess the range that you had set at the end on the day of 22 to 24, it kind of seems like you're going to come in towards the low end. Is there any reason or what would push that towards the higher end at this point?

No. Look, what we said last time is that we're going to do 22 billion in three years. It's what we have. With that, I think we need to include Chile, and I think we're okay with that. We're not going to the high end. What I can tell you this year in fall 2024 is we have less capex of what we budget. We have a very good revenue increase, and we have a better cash flow than what we have been budget. So I think that's the trend that we have in 2024, and that's what we're looking to have in 2025. So we're being careful on capex, but we're investing where we think we need to invest to get more revenue. So that's the way we're looking, and the numbers are there. 22 billion, we set for three years. We are with that, and that's more or less. Chile, I think, it's going to require this year a little bit more on what we're going to have for the next year, because we're finalizing what I said, the three-year plan. But the rest, I think we're okay. Other thing that will be important is that we have also this year some spectrum renovations and acquire more 5G spectrum, but I think this year we'll finish almost everything on that. So also for next year, 2026, I think the spectrum and renovations will go also lower. So that's what I can see in the capex.

Okay. And then, I guess, Daniel or Oscar, T-Mobile started offering Starlink satellite to sell texting to its subscribers, and I believe last quarter you mentioned that you were working with SpaceX and AST. So have you guys started testing either both of those, and can you provide an update on either of those tests? No.

What we said is that we use these low orbit satellites to use for backbone. It's what I said. We are not working only with SpaceX. We're working with all of them, less with SpaceX than with the other ones. So we're working more with one web and the other one, I don't remember the name, ASD, and we're working with them. And we are not doing anything directly to the phone at this moment. We're still looking and reviewing if that makes sense for us or not. So that's where we are. But right now we don't have anything on direct to the phone with any of the satellite companies. Only doing for backbone in the rural areas where we think we need it, where it's more expensive to put fiber or microwave, then we put satellite. So that's more or less what we're doing. Okay.

Got it. Thank you.

Thank

you. Thank you. The next question is from Marcelo Santos from J.K. Morgan. Your line is now open.

Hi. Good morning. Thanks for the opportunity for taking questions. I have two. The first is on Mexican broadband. Could you please comment a bit on the pricing environment? If you plan to increase prices this year, I understand last year you kept your prices. So what's the outlook for this year? And the second question is about M&A. There is a discussion, at least when you read in the press about potential M&A in Argentina. How do you feel about that? What is the appetite of American model to see opportunities there? Thank you. Oscar

can talk a little bit about the broadband.

Yeah. Yeah. Generally, Mexico right now, we already have 85% of the customer connected with fiber. We don't see it to increase the prices. What we did is to launch new packages in the market. For residential, I think it's very unique packages. We believe that these will boost over net ads this year. And it's a package that includes Netflix for six months for free. It includes Claro video with Paramount and as well, anti-virus. It's a fully symmetrical connectivity with fiber. We include an email as well in the proposal. So we are adding value to the connectivity. Another segment that we are really focused on is in small business as well. Then we launched packages that include backup of information for the customer's name. We designed a web page for small business. We delivered electronic bills for small business for the same kind that we used to have, adding value to the broadband connectivity. And as well on the corporate, we mentioned before, we are adding different services, cybersecurity, cloud, vertical and horizontal solutions for corporate markets. So we believe we've got these bundled and packages. We are very well positioned in the market to take an interest in net ads for this year. And

on the Argentina, well, what I can tell you is that I read it also in the news this morning. We haven't talked with anyone on anything there. Of course, we're open. We're open always to see everything. And let's see if there's big synergies that make sense for us. We can be open to review that. But we haven't talked with them and we haven't had anything at this moment.

Thank you. Just to clarify on Oscar's answer, so you said you did not seek to increase prices, right? You launched the bundles, but on prices you do not seek to increase. Okay. Thank you. Thank you very much. Until now. Until

now, we don't think to do it. We don't know if that makes sense at the end of the year. But at this time, we haven't had anything on increasing prices.

Thank

you.

Thank you.

The next question is from Vito Tomita from Goldman Sachs. Your line is now open.

Hello. Good morning, all. And thanks for taking our questions. We have two questions from my side. The first one is if you could give us some more color on how you see prepaid revenue trends in Mexico in more detail in terms of how much users are recharging, how frequently they are recharging, how you are seeing these trends evolving. And our second question would be also related to prepaid in Mexico. If you could give us an update on how you have seen the competitive environment for prepaid in Mexico between the big operators and the MNOs, competition in general. Thank you very much.

Talking a little bit about the competition in Mexico. Well, what we have been seeing, let's talk first about cost-paid. Cost-paid, we are doing very good. We are increasing revenue. I think the revenue, we increased 5.7%, something like that, more than a year before and the second and third quarter of last year. So we are in cost-paid. We are doing good. Why we are doing good? Well, we are moving also some cost-tumors from prepaid to cost-paid. And we are moving our cost-paid from better plans and selling more things. So the output that we have in Telcel is maybe in cost-paid maybe 20% higher than our next competitor. So we have very good customers. They are in very good plans and we are doing very good in the cost-paid side. In the prepaid side, what I'm seeing is I don't see any change on the competition. It's the same competitors, that we have been having. I don't think they are more aggressive or less aggressive. They have been aggressive for maybe two, three years and still they are doing that. As I said, we are moving part of our prepaid base to cost-paid. And the third one is we are seeing also a slowdown on the economy. I think that's very important. And when you see a slowdown in the economy of Mexico, then the first place where you see a slowdown is in recharge in prepaid. So that's what we're looking. No big changes in competition. We have the same. Maybe CFE is giving and promote some chips, but more than that, we haven't seen anything else on that. And there's top competition in Mexico, but it's not the last quarter. It has been there for the last two years. What we have been seeing is a slowdown in the economy and that affects directly to the prepaid recharge that we have been having. So that's more or less what I'm seeing in the market in Mexico. So Oscar talked a little bit about the broadband. We're doing good. We're growing. We're moving to fiber. Postpaid, we're also doing good. Moving subscribers to better plans. Moving the prepaid to the low end, the postpaid that is being very successful. Around 85% of the people that we move stays in postpaid. So it's a very good number. So all over all, we are doing okay in that. And the second and very important that Oscar reminds me right now is that we have very, by far the best network in Mexico. We are the only ones that have 5G, the real 5G. We have more than 100 cities, very well covered, very good speed, good quality. Well, that's why we have the best postpaid customers right now. Thank you very

much.

The next question is from Andres Coelho from Scotiabank. Your line is now open.

Thank you. Thank you for taking my question. From Mexico, please. First, we saw last year two constitutional reforms. One given the CSCI special legal status in Mexico. And that was also the reform that is going to merge two regulators into a single body. So, Daniela, I'm just wondering what you're seeing in terms of the regulatory environment in the country with these constitutional reforms. And perhaps more specifically, how do you see the company competing with the government, right? Because the government is now providing retail services. So you'll be on that. And my second question is from Telmix. There was a letter published by Management and the Union where Telmix says that this year they expect to win 2 million broadband lines in Mexico and market share to reach 50%. So I'm just wondering if this is feasible, if you think that that is, or perhaps too ambitious to think of 2 million broadband additions in Mexico. Thank you.

Well, of course, it's an internal budget that we have. And of course, we want to win, if it's 2 million or more than 2 million. So all the commercial areas, marketing, people working in the streets are looking to grow. It's what we want. We want to increase our market and then Telmix. That's why we don't increase prices last year. We lose some market share in the previous years, and we want to recuperate part of this market share. And I'm happy that the Union and all the people is focusing on making more broadband subscribers and winning more broadband. So I'm happy it's feasible. Well, all the budgets that we do are feasible. We don't know if the will allow us to do as much as that, but we want to do it. It's maybe to be around 150,000 per month. I don't know if we can do it, but we are looking to do that. We have enough fiber. We are also changing subscribers from copper to fiber. So there's still a lot of things that we have to do. As Oscar said, we have 85% of our subscriber programs in fiber, and it's very good news. So if we look three years ago, I don't think we have those numbers. So we have been working very, very hard to move all our subscribers to fiber. So that's what we have. In terms of the what we have been seeing is that right now they are looking for the secondary loss. They are moving on that. We don't know exactly what are going to be the secondary loss. We're waiting for that. And see. So we're aiming to work with any, I think, part is going to go to economy. The other part is going to go to Agencia Digital. And we are going to work with those to do that. If we're going to compete, hope that what the government is saying is that what they want to do is to give connectivity in the very, very rural areas. So I hope they are working and doing to do connectivity in those rural areas. So that's more or less what I have been. I don't know. But that's what we have.

Okay. Thank you.

The next question is from Alejandra Azar from GBM. Your line is now open.

Hi. Good morning. And thank you for taking my questions. Two quick ones. One is on the cloud and corporate networks. If you can remind us how much that business grew in 2024. And if you can tell us from your 7, 7.5 billion capex, how much is that directed to that business segment? And the other one would be on your pension plan. You mentioned 25 billion uses or cash outflows during 2024. My question would be if that is 100% cash flows. And how should we think about your pension plan outflows in the next, let's say, I don't know, decade? Should that decline at some point and why? Thank you.

What I can tell you is that the segments that are growing more are post-paid and corporate, the corporate segment. Those are the two segments that are growing more in America. I think the corporate is growing around 15%, something like that. I think

the exchange rate for everyone including children, that's 12.3%. 12%. And it's been accelerating. It was seven in the second quarter, 10 in the third quarter, and 12% in the fourth quarter. What is very important is we have been

putting a good capex. It's difficult to devise what capex is for cloud and corporate and the other ones. But we have very well prepared in all Latin America to serve the corporate market. We have good salespeople. We have data centers. We have good alliances. So we are very well prepared to go in the corporate market. I'm very confident that in the next years we are going to be a good player, a big player in the corporate market.

On the press, I think the press should be declining. I think we will expect to see still some outflows more or less of the same size as we had last year for some time, or the next three years or so. And then we would expect them to be a little declining. And that has to do with the overall trend. I think that we have reached the peak of pension payments and they will be trending down. There's less people being pensioned, people and some people that have pensions that will face to receive pensions at some point. That's basically it. We can talk more about it in the next investment best policy.

Thank

you. Thank you both.

Thank you.

As a reminder, to ask a question, please press star four by one on your telephone keypad now. The next question is from Fanny Kanemuri from HSBC. Your line is now open.

Hi everyone. Thanks for taking my questions. The first one is related to the outlook for shareholder remuneration in 2025. Given the six changes and increased capex, how do you see the outlook for shareholder remuneration in 2025? The second one is regarding how you feel about Brazil Mobile. Do you see the regional market enrollment continuing there? And you have grown like 10% in 2024. Do you see that growth rate trending in the same range in 2025? Thank you.

Well, the first question, if you look at the basic trends that we are having today, we have had very solid revenue growth for a long time now. We have growth on both fixed and mobile, we've been highlighting for quite some time. And this is very well diversified. We are doing it in all the main countries and these blocks of countries like Central America and Eastern Europe. And what we are seeing is that on the back of very strong and consistent top line growth, we are also being able to reduce the capex intensity of the business. Given the important investments that we've made in the past, including introducing all the necessary investments to be able to produce that in all our markets and also the spectrum that has to go with that. So all of that is behind us and that's why we have been able to reduce capex to sales intensity significantly. We expect it will be remaining in that position. So given what I've said, I think the outlook is for the possibility of free cash flow expansion with a position of leverage that will remain not far from where we are. We are at 1.4 times net debt limit. It's right in the middle of the range where we want it to be. So that you can run the numbers and you will see that if we don't need more cash for debt and we don't need more cash for capex, that means that there's going to be more cash available for distribution.

And

on Brazil, I think

we have like 40%, something like that, 38 to 40% share of market in 5G. So we are one of the biggest in Brazil. We have a very good network. The fastest network, Anatele is saying that we're the fastest network in Brazil. And we have been growing market share in Brazil in post-paid for some years. So we are well prepared. We are investing and we have had good results, very good management, good team, good synergies that we have been having. So I think we can still do very good here. The next years we're going to be moving Brazil.

Yeah, thanks everyone. Thank you.

The next question is from Gustavo Sorrias from UBS. Your line is now open.

Hi, and thanks for taking the questions. I have two on my end. The first one is regarding mobile competition in Brazil. We've seen a competitor that we expect to raise from good prices in the first half of the year. So my question is if you could comment on how do you see competition in Brazil? Do you see it worsening or not? And the second question is regarding the bet profile and how do you see it in the longer term? So how much, if you have any target of how much of the bet you would like to see denominated in hot currencies as a percentage of total in five plus years from now? Thank you. Can you

repeat the second question please? We don't hear you well.

Hello, thank you. Regarding the bet profile, yeah, that's for sure. The bet profile, how do you see it in the longer term? How much of the bet you'd like to see denominated in hot currencies as a percentage of total?

Well, on the bet composition, we've been, I think you have to distinguish between funding on the one hand and then the actual currency exposure that we retain. We've been funding increasingly in local currencies. We've been raising funds more than a billion or a thousand six months in various local markets here in Latin America. And what we do with the currency exposure is basically managed through derivatives and that basically is managed depending on our views of what the currencies are. What I can tell you is that today the net exposure to dollars, for instance, is 42% for net debt and the net exposure to currencies to the US including Austria would be about 10%. So that means that the net economic exposure is basically around 50% to local currencies today.

You're talking about Brazil. I think competition, not only in Brazil, in all Latin America, we have a lot of competition there. Let's say in Brazil we have Telefonica, we have Teams, and then in Mobile and then we have all the new ones, the small ones that are growing. So in telecommunications everybody knows that you have to have, it's not only price. When you compete only in price then I think you are going to lose value in the future. You need to compete with quality, with coverage, with good products, and with customer care. So you need to have that. We have been doing that in Latin America for the last 10 years, for the last 20 years. So I think we are well prepared to compete not only in price but we have been digitalizing the company, working a lot on cost and expenses. Let's say in Colombia, we have a very good quarter. We start with revenues growing at the beginning of last year with 1%, 2%. We're growing 5%, 8% in this quarter in pre-paid. So we're doing good because we have the basis and we have the investments done. Of course we have some competition on price. Then we have to do it, but then we return with good customers, good alfos, good products to sell. So all around Latin America and Europe we have competitors, telecommunications with a lot of competition, but we are well prepared to compete with them.

Thank you. The next question is from Ernesto Gonzalez from Morgan Stanley. Your line is now open.

Hi, thank

you for taking the

question. Two quick ones. Can you please discuss how you're seeing competitive dynamics in Colombia, which you started to mention a moment ago, and also competitive dynamics in Chile? Thank you.

Well, in Colombia I think PIG and Telefónica are getting together, the network. I don't know if they're going to allow them to consolidate. But the networks, I think they are working and have a good network. I think it's good. They are going to say money. There's a stronger competitor that is good for us. As I said, in Colombia if you review the numbers that we have this quarter are very good. I think for 2025 we still think that we can increase and have better numbers. Revenue is growing and we are good in the market. I don't know exactly what is going to happen. There's going to be a new investor in one, so we don't know exactly what they are going to do. But we are in a good position. In Chile, I think in Chile we have a lot of competitions, different in broadband and in mobile. But what I can tell you in Chile is we have been working during 2023 and 2024. We have a very good management. They are delivering what they promised. So we are in the numbers and the investments that we are doing are being good. I think Chile, this year we are going to consolidate all the energies that we have between the two companies. We are going to have a much better network. We have a very good team working there. So we think we are going to have good numbers in Chile. Let's say in Chile, number portability, we have been gaining subscribers in number portability for the last six or seven months. That means that the network is working, that we have good plans, and that we are doing okay. We are okay and we are delivering what they are promising in Chile.

Thank you. Thank you very much.

Thank you. We have a question from Juan Cruz from Morgan Stanley. The line is now open.

Hi, good morning and thank you for the call. Just following up on the Chilean operation, now that the declarative ETR has been formally incorporated into the results, when should we expect more disclosure as to both operationally and financially as to how the Chilean operation is going forward? And secondly, if you could tell us what the CAPEX budget for Chile should be for 2025, if you have that number handy, it would be great. Thank you.

Okay, well, we will begin disclosing the Chilean results next quarter. Likely we will be disclosing it together with those of other countries that are in the region, so putting them together, putting them with the so-called Southern Conference countries. But I think that that's what we will be doing from the first quarter of 2025. On the CAPEX in

Chile, we said that it's going to be around $250 million this year to finalize everything that we have, change more to fiber, more coverage, more FITs. Thank you. So that's more or less what we budget. We still haven't finished this budget, but we think that it will be like $250 million, a little bit more, a little bit less than the on CAPEX for 2025.

Okay,

thank you.

Thank you. We have a question from Rico Zalazky from Goldman Sachs. Your line is not a question.

Hi, thank you for taking my question, Federico Zalazky from Hardin Group. Two questions regarding to Mexico. The first one is, how do you see the competition of the MVNO of WorldMex that they have like 15 million clients in the last two years? Obviously, it's in the low end of the range. And the second question if I may is, how do you see lower revenues in equipment sales? Do you believe that this trend will continue? Thank you so much.

Yeah, that's right. We reduce the revenues on equipment. I think also this is a little bit of we talk about the economy. The economy is slowing a little bit down. And the other thing is all these revenues are based in dollars. So the dollar moves from 17 in June to 20.5 in December. So on that, on Walmart, it's a good competitor, a strong competitor. They have good distribution. And well, it's not new. As you said, they are going to the low. They have with 40 million the subscribers, their ARCO. I don't know exactly the revenues, but the last time that we see the revenues and the ARCO is very low. So I don't know if they really have 40 million or not. We don't know. But it's no competition in Mexico, nothing new. We have been dealing with Walmart for the last two years with CFP also. And then we have Telefonica and then we have AP&T. So a lot of competition in Mexico, but nothing new. So that's what we have been having for last year. So that's and still we're going to have competition this year. Hope that the economy can return and be stronger in the next months. But still we're seeing that slowdown in the economy is hurting a little bit the prepaid subscribers.

Thank you so much. Thank you.

Thank you. We have no further questions. So I'd like to hand the call back to Mr. Daniel Hersch.

I want to thank everyone for being in the call and to you next quarter. Thank you very much.

Thank you. This concludes today's call. Thank you all for joining. You may now disconnect.