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Good morning, my name is Nadia and I'll be your conference operator today. At this time, I would like to welcome everyone to the American Mobile first quarter 2025 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, simply press star followed by the number one on your telephone keypad. If you would like to withdraw a question, please press star followed by two. Now I will turn the call over to Ms. Daniela Lechwana, Head of Investor Relations.

Thank you. Good morning, everyone. Thank you for joining us today to discuss our first quarter 2025 financial and operating results. We have on the line Mr. Daniel Hash, CEO, Mr. Carlos Garcia Moreno, CFO, and Mr. Oscar Bonsausque, CEO.

Thank you, Daniela. Welcome, everyone, to the first quarter of 2025 Financial and Operating Report. Carlos is going to make a summary of the results. Thank you. Thank you, Daniel.

Good morning, everyone. Well, the first quarter of the year began with interest surging ahead, continuing the trend from early December, as the market grew increasingly concerned with inflation on terms of a much stronger economy than had been expected. However, as inflation numbers came in within expectations and new payroll figures weakened, 10-year treasury yields came down by a remarkable 60 basis points from mid-January, 20 quarter at 420%. In the period, most currencies in our region of operations appreciated versus the U.S. dollar, but not the Mexican peso, which remained almost flat over the quarter as the uncertainty of a potential new tariffs by the U.S. weighed on it. In the quarter, the US dollar lost 7.3% versus the Brazilian real, 4.9% versus the Colombian peso, 4.4% versus the Chilean peso, and 4.2% versus the euro. Now, the Mexican economy has been slowing down since April of last year, with the index of economic activity reaching 0% in February of this year, and private consumption, as you can see in the slide that we are showing, has plummeted and is now declining 1% year-on-year on the back of uncertainty around the Mexican and then the U.S. election, increasing real rates of interest as inflation declined but raised state put, and the decline of economic activity made worse by a significant tightening of public expenditures. So as you can see, there's been really a vertical drop in private consumption in Mexico over the last several months. to a point that is now negative. Now, in the first quarter, we added 2.4 million post-PETS subscribers, with Brazil leading the way with 987,000 clients, followed by Colombia with 163,000, and Mexico with 133,000. In the prepaid segment, we posted 1 million net prepaid losses of both Mexico and Brazil's disconnected clients, 821,000 and 525,000, respectively. While Argentina added 230,000 troughs and Colombia added 134,000 troughs. So prepaid disconnections were limited to Brazil and Mexico. In the fixed land segment, we connected 446,000 new broadband accesses. Mexico was the main contributor with 165,000 clients, followed by Brazil with 98,000 and Central America with 52,000. Voice lines and pay TV units fell by $130,000 and $32,000, respectively. Mobile, post-paid, and fixed broadband were the main drivers of growth of our client base, increasing by 6.1% and 4.3%, respectively. Again, you can see this in the slide. Our first quarter revenue was up 14.1% year-on-year in Mexican peso terms. to 232 billion pesos, with service revenue expanding 15.8% and adjusted EBITDA 13.3%. The latter figures partly reflect the year-over-year appreciation of most currencies versus the Mexican pesos, particularly the Colombian and Chilean pesos, which were up 18% and 14% versus the Mexican pesos. The dollar, which was up 17.7%, and the euro, up 14.1%, again, versus the pesos. So that essentially means that with the exception, really, of Brazil, all other international operations of American mobility were worth more in Mexican participants. At constant exchange rates, when we adjust to these exchange rate movements, service revenue increased 6.1% and adjusted EBITDA 4.0%. Adjusted percent, and that was just until next year before. Most of our operations saw the EBITDA margins increase sequentially. Wireless service revenue climbed to 5.7%, decelerating somewhat from the prior quarter, as prepaid revenue continued to slow down, mostly on account of weak economic activity in Mexico, as we've seen before. Posted revenue growth remained fairly stable across the board and actually accelerated slightly to 8.8% when our Chilean operation is included. On the six land platform, the savings revenue growth came in at 6.7%, with corporate network revenue appearing to slow down. This effect had mostly to do with the fact that in the year earlier quarter, that line item had had a very strong showing. And you can see this again in this slide. Global revenue growth maintained its pace at 9.8%, while that of pay-to-deal came in at 8.7%, the fastest pace sitting in many quarters reflecting on the one hand incorporation of Chile, but also better growth in Central America and Austria and Eastern Europe. And we're seeing less of a drag in Brazil, where although growth is still negative, the rate of decline has slowed. The Central American and Eastern European blocs were top performers in the period, exhibiting faster service revenue growth in both the fixed and the wireless platforms, and they have had the preceding fall. Our first quarter operating profit totaled 44.8 billion pesos, a 10% year-on-year increase after the appreciation and amortization charges that were up 16%, which partly reflects the incorporation of our Chilean operation. With our comprehensive financing cost decreasing slightly from the year-earlier quarter, our net income was up 38% to 18.7 billion pesos and was equivalent to 31% per share, $30 per ADR. Our net debt end of March stood at 500 billion pesos, not including capitalized lease obligations. It was equivalent to 1.5 times last month's EBITDA. In cash flow terms, our net debt increased 11 billion pesos in the quarter, and it helped us fund capital expenditures in the month of 25 billion pesos, share buybacks of 4 billion pesos, and 7 billion pesos in labor obligations. So that's the summary and I will pass it back to Daniel so that we can begin the Q&A session. Thank you.

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

Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. The first question goes to Leonardo Almas of UBS. Leonardo, please go ahead.

Hi, everyone. Good morning. My question is going to be centered on regulations and laws in Mexico. So I think what we're seeing now is unprecedented, maybe for many, many years. If you could first discuss the new telecommunications law legislation that that could impact the spectrum distribution and what you're positioning on it. So potentially regarding spectrum to competitors, to new competitors. And second, if what the Trump administration is proposing on the Liberation Day if there is any type of impact from Mexico, because there was a document that, by that date, they released mentioning that they were concerned, the U.S. government was concerned about concentration, high concentration of market share in telecommunications in Mexico, if that could be a concern to you. Thank you.

Thank you. As you know, and everybody knows, Congress is currently discussing the proposals made by the President Shane Brown regarding the new telecommunication law and some changes in the competition law. Those are right now discussing in the Congress. We are monitoring closely both proposals. and providing comments and views to the congresspeople. So that's what we have now. We don't have anything else. Everybody knows what the proposals have. I agree on what you're saying about the spectrum. So we are giving our views and we can discuss that in more detail when both laws have been enacted. But right now, nothing to say. The laws are there. Everybody's discussing. We're giving our points of view. And that's all. So I think in the next two months, as the president said, they are going to be enacted. So that's what we have right now. On the other side, I don't exactly understand what you said about President Trump, but if you're saying about the competition and dominance and all of that, well, that will be included in these laws, and these laws have been discussed right now. uh other important issue and and we put it in front of the first page of our our results is the market share that we have in uh in fix broadband and tv we have 27 percent and cell cell has 55 percent so uh does not that does not include the cpe that has also some subscribers so I think we are discussing that. We think that we are not the dominant player anymore, and Delos has to show that. So that's mainly what we have been discussing.

Crystal clear. Thank you very much. Have a good day. Thank you.

The next question goes to Walter of LightShed. Walter, please go ahead.

Thanks. I think can you just address the impact of tariffs potentially on handsets? How do you expect to, you know, if anything, have that impact your business?

Can you hear me?

Sorry.

Well, the tariffs in Mexico, We no changes on tariff on handsets right now in Mexico and Latin America. I don't know that if we can have something in the future. So at this moment, even it's being a little bit better because the exchange rates are coming a little bit down and those are we buy everything in dollars or In Mexico, let's say, price of handsets has been better. So at this moment, we don't have anything on tariffs, and we don't expect anything on tariffs for the next months.

Sorry, I was going to continue just kind of noting perhaps the trade deficit that exists between Mexico and China. And if there's anything, perhaps, given everything that's happening in the world, and how manufacturing can move to different locations, whether that could extend in terms of Mexico's relationship with China.

Well, I think there's big discussions on that, on the trade deficit, trade deficit in the US, trade deficit in Mexico with China. So it's going to be very difficult to understand what is going to happen in the future. But I think that Mexico will have a very good, in my view, a good probability that there will be everyday manufacturing more and more in Mexico to go to the USA. manufacturing more with Mexicans and doing things in Mexico, not importing from other countries and then exporting to the U.S. I think that's going to change a little bit. But if we produce here, I think Mexico will have a good opportunity to grow. So I think all these discussions and what is happening in the world, I hope that will be a benefit for Mexico.

Thanks. Carlos also obviously mentioned, and we've seen the results, the impact of some of the economic, um, you know, issues in terms of, um, you know, consumer demand, I guess, in Mexico. I mean, you, you, you guys have both been there a very long time. Um, and obviously Carlos very involved, uh, in Mexico in general, even before mobile, just curious, um, kind of your thoughts on timeline and how long you think that this will progress through your numbers, how deep of a dip, how soon of a recovery, I suppose.

I think what I was saying before is we had an extraordinary situation last year. the second half of last year because of the confluence of many events. One was the election in Mexico, which always lead to a slowdown in economic activity for the month after the election and the beginning of the administration. That's a historical pattern. Then you have, we had also the elections in the U.S. at this time were probably more eventful than probably has been expected in some other times. And we had, as I mentioned, very high and increasing real rates of interest because policy rates were constant, but inflation was declining rapidly. So the real rates of interest were going up. And that obviously had an impact on overall spending, both consumption and investment. And then to make things somehow worse in some extent in terms of economic activity in the short term, the new administration came in with a clear commitment to put order in public finances, which meant reducing the fiscal deficit. And this, they've been doing, you know, with a lot of steel. We've seen the numbers through this year, and they are doing better than budget. You have a primary surplus that has increased significantly, not compared to last year, but even to two years before. And the financial deficit is even lower after inflation in terms of this year It was two years ago, not to mention last year. But our view is that these effects, all these three effects that I have mentioned, are going away. Obviously, the elections have happened, and the uncertainty around the tiles, I think, will be cleared relatively soon. The real policy rates are coming down in Mexico. They have been coming down, and we expect them to continue to come down. So real rates of interest are now beginning to go down. And we expect that the government will be in a position, the second half of the year, to be a bit more forthcoming with their expenditures. So I think that our current expectation is that we are seeing the bottom right now, this first quarter, and that we would expect to see, you know, this is probably the bottom and we can expect to see a recovery of sorts second half of the year. If there's a lot of people that believe that the USMCA agreement may be negotiated early, as early as this year, and to the extent that's the case, I think that it will provide an additional boost to the economy, as Daniel has been saying. And so, yeah, we think we're quite positive on the expectations for the second half of the year.

I think we're seeing the... That's very helpful, Carlos, and thank you also, Daniel. Appreciate it.

Thank you. Thank you, Walter.

The next question goes to Marcelo Santos of J.P. Morgan. Marcelo, please go ahead.

Hi, good morning, Daniel, Carlos, Oscar, Daniela. Thanks for taking my questions. I have two. The first is regarding Mexican prepaid. I understand in the release you attributed the weakness mostly to the economy, but I would like to see if you could discuss a bit the competitive angle. We are seeing some MVNOs growing very aggressively in prepaid. Do you think this is affecting it? What could you discuss of the competitive angle on prepaid in Mexico? And the second question is regarding the appetite of American models for M&A in the region. There are some players that are divesting some assets and wanted to know what we think about that. Thank you very much.

Well, let's talk about Mexico. First, I want to We already talked a little bit about broadband and post-paid. I think in Mexico we have a very good month on broadband, quarter, sorry, on the broadband and on post-paid. I think we are doing good. People is consuming more. Our food is going up. in postpaid and in broadband we're still gaining subscribers and moving to Fiverr and doing so I think when you talk about broadband fix and postpaid we're doing okay in Mexico and when you talk a little bit about the prepaid that I think it's the concern that I have been reading this morning is well first And not the only thing is the slowdown of the economy in Mexico. I think that's the first thing. You see that ARPU is declining a little bit, and ARPU is declining because our consumers are spending a little bit less than they used to be. Prepaid is really tied to the economy. So when things are good, people consume more. ARPU grows. When things are not so good, slowdown, then people are consuming a little bit less. In the other side, we have a very aggressive competition in promotions of some NBNOs like Bites. It's very aggressive, and they are growing. The difference is that, well, they have an ARPU of 38 pesos, and we're having an ARPU of 177 pesos. So the difference between their subscribers and our subscribers is huge. maybe three, four times difference on that. So we have been having and looking and our strategy is to look for good, all of them are good. Maybe what is happening is that their subscribers or the promotions that the market and they are having are so aggressive that they just want to uh not recharging give service for free and that's that's an issue and i i hope that will will solve in the future but they have been doing that for some time and the pro let's see what is gonna happen when uh start to move a little bit and take out these promotions other sign that i see uh this quarter is in number portability they have been gaining in number portability, let's say the same, but what I see in the numbers, but losing more subscribers in number portability. So number portability has been not so good as they used to be last year. So subscribers, when they start to move to their promotions, then they are going to decide in which other company they are going to use. The only thing is we're focusing very good and better on the highest ARPU customers in prepaid and in postpaid. Our number portability is doing a little bit better than last year, so I think we are starting to see better numbers on that. And that will be exactly what is happening in Mexico. So big and promotions where people is not paying or paying very low amount of money. And then when they want to recharge, they are going to do that. And when this promotion will end, I think it's going to be interesting how they are going to retain those customers. ARPU's 177 pesos in Telcel. 38 pesos in the other company. So it's exactly what is happening. It's not only one thing. You have a slowdown plus promotions, plus our strategy. All of that is what is happening here now. And another, I want to do another announcement that I have been, since the last call, that we don't give a guidance for capex budget. We have that announcement, and the capex for this year is going to be lower than last year. It's going to be $6,700,000, and it's only because we're seeing a slowdown in all the economies, a little bit slowdown. We have been investing a lot, moving a lot with 5G. We have been doing the last three years more Fiverr, a lot on IT systems. We have a lot, all our cloud and data centers all in place. So that give us a chance right now this year with the slowdown. That will reduce the capex to 6.7. That is what we decided yesterday in the board. I feel very comfortable on that. And that's what we decided on that.

Thank you. And the M&A, do you have any questions?

On the M&A, well, we're open to M&A. I think it will be a little bit difficult that in the region we'll have something alone. But if you are saying because Telefonica is selling their assets, we are aware of that and we're open to see if something fits in American mobile strategy. that we're open to see anything.

Perfect. Just on the CAPEX, does this change your three-year CAPEX view or is more a relocation of CAPEX between the years? Just to understand how this talks

We don't know. It's going to be very difficult to see what's going to be the pack affects of next year. But I think this year is going to be 6.7. Next year, difficult to say. But I don't think that it's going to go so high as we predicted, but I don't know, depending on the growth, depending on the traffic, depending on a lot of things that we're going to see around this year.

Perfect. Thank you very much for the clear answers. Thank you.

The next question goes to Pani Kanemuri of HSBC. Pani, please go ahead.

Thank you for taking my questions. So the first question is regarding your corporate network revenues in the fixed segment. Are you seeing some pressure due to the global concerns on growth on the corporate segment revenue? And do you expect the growth rate to continue in this segment? My second question is regarding Columbia. The margins have come down year-on-year as well as quarter-on-quarter. What is driving the margin decline in Colombia? Thank you.

Well, I'm going to start in Colombia. I think Colombia is doing much better. Colombia, our service revenue is growing 6% this quarter, wireless revenue 8.3%. So we're growing. and we're growing more. That's why we're investing a little bit more in growth, and that's the reason why our EBITDA in terms of percentage reduced a little bit, but we grow our EBITDA 2.4%. So the EBITDA is growing, and we are doing good, in the market we are recovering and i think we're going to have a good year in in colombia 2025 is going to be a good year for us and the other thing in the corporate segment oscar can talk a little bit about that i think we are very strong We have been investing a lot in salespeople, in apps, in services, in alliances, in our data centers, and it's a very important market, and we're going to continue to be focusing on that. Sometimes the corporate, but Oscar can talk a little bit about that. Sometimes in the quarter we gain some big customers, so that's why we grow a little bit more. Other ones is in the other quarter, but all over all, we're focusing in the corporate segment and we want to grow and be strong on that. Oscar can be with more detail.

Thank you. As you mentioned, last year we won a very large project. And now we have a very, very strong pipeline. But, you know, with the new conditions, the people is taking more time to get the decisions. But what we see in the pipeline around cloud services, digitalization, data centers, we see a very, very huge pipeline. So we believe that we will catch up through the year. And, you know, the people is taking more time to take a decision right now. given the economic situation. But the pipeline that we have is very, very strong, as Daniel said.

Thank you, everyone. It is pretty cool.

The next question goes to Vitor Tomita of Goldman Sachs. Vitor, please go ahead.

Hello, good morning, and thanks for taking our questions. We have two questions from our side. The first one is... follow up on the spend reduction, the reduction in spending by prepaid customers in Mexico. Do you have any visibility on whether customers are simply reducing internet usage or switching to lower cost competitors to some extent or using Wi-Fi a lot more? Just to check if you have any visibility on how people are being able to actually reduce their spending without affecting their daily usage or their daily habits. and the second question from our side on a similar note also discussing mexico could you give us a bit more of an update on how you are seeing the competitive environment for broadland uh given the following the good results involved in this quadrant thank you very much on the prepaid what i see and the the what i'm looking on the prepaid on with the reduction on arpu because they slow down on the economies because people

is delaying a little bit the recharge of the phone. You sell a card of 15 days, and sometimes they recharge before because they have all their data finished. Sometimes they recharge today. They wait a little bit, wait one or two days, and then they go and recharge, and that gives us the reduction on ARPU. So people is delaying a little bit the buying cards and recharging the cards. It's what I see and it's what is happening right now. On the broadband, we're going to be still, we're doing good and we're going to still be aggressive and as we put more fiber, we're going to change more We have 90% of our customers connected through fiber, and I think we're going to have more loyal customers with fiber, good speeds, and good prices. I think we are very aggressive in the market, in the broadband, and I think that's what is happening right now.

Just to give you a bit more color on the prepaids, Before the pre-PEDACO, pre-PEDACO was growing a year ago 4.5%, by the third quarter it had slowed down to 3.1%, 0.8% in the fourth, and it was minus 2.2% in the first quarter of the year. So this is very much in line with the chart that I showed you with the decline of domestic consumption. That's basically the same timing. And as Daniel said, the whole issue of prepaid, the whole reason for prepaid to exist is that people have more control over their spending. And if they become a bit more cautious, more uncertain about the environment, then they typically reduce their spending. They don't have to spend in and out every month as they would with a regular postage plan. So that's That's the beauty of prepaid for the people. And, you know, they are spending very rapidly.

The first signs of a slowdown of the economy. And as I said, it's a slowdown of the economy and also big promotion for competitions and other ones that they're doing. It's not only one thing what's happening in Mexico. There's a couple or three things that we already explained, and the market is there. So that's... I think it will be better in the future. I don't know for how long it's going to be so aggressive. We have the best network. We have very good coverage, the best systems, IT, so very good quality in the network. So that also counts. It's not only promotions. Other things count also on that.

That was very clear. Thank you very much. Thank you.

Thank you. As a reminder, if you would like to ask a question, please press star, followed by one on your telephone keypad. And the next question goes to Luca Brendim of Bank of America. Luca, please go ahead.

Hi, good morning. Thank you for taking my questions. I have two here on my side. The first one you mentioned a little bit about the recent M&A moves that we saw in Latin America. I just wanted to check if you already seen some changes in terms of competition, the competitive environment in any of the regions where we have seen M&A or that we're seeing lots of conversations about what could be happening. And the second one, now that you have incorporated the Chilean operations, could you give us an update on the strategy for the region? If the main focus will be increasing profitability, or what are the main growth drivers that you see for the region? Thank you.

For the region or for Chile?

For Chile.

Okay. Well, on the M&A, I think, well, everybody understands that the M&A brings consolidation. Consolidation is much better for all the markets, okay, so stronger competitors. And that will be good for us. I don't think that will be the case of Colombia, let's say, the case of Argentina. I think consolidation is not bad. On Chile, what's the question? If we want to go for profitability or for market share, I think in Chile we want to go for profitability and for market share. I think still we have not very high market share in the wireless market, and we're growing. We're going to grow there. We're changing the network. We're putting more coverage. We're doing 5G. We're buying Spectrum. So we're in prepaid and in postpaid. We're going to be targeting more customers, more market share, and try to grow there. We're still very small in market share. We want to grow. In the broadband, we have also a good strategy. We're giving TV, good channels. We have the best TV, and we're moving to fiber. We're moving very fast to fiber, and that's been very good for us. Churn has been reduced. So we are having not a six-month plan in Chile. We're having a three-, five-year plan in Chile, and that's what we are targeting, moving to fiber, putting best network, doing quality, very, very competitive. And the other that Oscar is saying, we still have a long way to go on the synergy. So merging the two companies, we still have a lot of synergies to go. So I'm sure that we're going to grow our market share, and I'm sure that we're going to grow our EBITDA margin in the future. So that's what we have in Chile.

Very clear. Thank you for the answers. Thank you.

The next question goes to Carlos de Legareta of ITAU. Carlos, please go ahead.

Thank you. Good morning. A couple of questions on my end, and hopefully they're not just housekeeping questions, but on Chile, Paraguay, and Uruguay that you're reporting together now. You mentioned in the press release that these are pro forma figures for Chile, and yet there's a double-digit increase in EBITDA, a massive increase in the EBITDA margin. And we just want to understand what is the nature or what is behind this. Is Chile doing much better, or is there an improvement perhaps in Paraguay and Uruguay? And sort of similar question also in Central America. You also had an outstanding increase in the EBITDA margin. And there's not really a ton of explanation in the press release. So we'd love to hear your thoughts on that. Thank you.

Well, first in Central America, you know that we have this cyber attack in last year, in January, a little bit of February. And the comparison between last year and this year is different. But if you look what we do in fourth quarter and what we're going to have in the third quarter, we have been, as I said, investing very good in Guatemala, buying frequency, doing more coverage in 5G. Also El Salvador, doing more fiber all around Costa Rica, doing Honduras, Nicaragua. So all around Central America, we have been investing for the last two, three years, good, strong. And we're seeing good performance in the other side. We are being very aggressive on the cost and expenses. So we have to reduce costs and control expenses. So we are doing good. this quarter is a little bit difficult to compare against last quarter of last year at the same quarter of last year but you are going to see a second quarter with a good comparison and you're going to see very good not the growth that we have right now but we're going to see very good growth in in in central america i think we're doing good Not only Central America, in the Caribbean, we're also doing good. Dominican Republic has been doing good. Also, Peru has been growing and gaining market share. Colombia, we're doing very strong. Eastern Europe, we are growing and gaining also some market share and reducing costs. So to be honest, all over all in America mobile, we have Because all the investments that we have been having for the last five years, four years, all the control of the costs that we're having, investing in our people, training, and doing more on all the corporate side. I think we have a good quarter, a quarter where we're gaining market shares and being uh good in uh uh control cost and evita so all over all words i think in paraguay also you're talking about paraguay and uruguay we're doing good i don't know if you want to talk a little bit oscar about paraguay uruguay chile before talking about the actual operation paraguay and uruguay and just to clear up uh your your doubt carlos uh the

The financial statements do not have Chile on proforma basis. Financial statements do not have Chile on proforma basis. Now, in the section Southern Cone, which is the first time that we come up with this section at Southern Cone, we did want to include proforma so that you could look for your models. You could have some basis. of what the numbers are, and you can basically come to terms with that. But we would expect that as soon as Argentina ceases to be hyperinflationary, which will probably be as soon as next year, we can group all of the financials and the operating statistics of Argentina, Chile, Paraguay, and Uruguay within the same group, okay? So I would expect that we were going to have the combined numbers, again, financial and operational for Southern Cone beginning next year. This year we will still have Argentina separate. And just to give you an idea of what things look like, you know, for the rest of the group, which is Uruguay, Paraguay, and Chile,

we are providing for this purpose the performer fees and on the operations yeah sorry yeah yeah sorry no no please oh thank you just i mean i i know at the console the pnl just specifically i mean we can follow up with daniela but in the chile paraguayan your way section the the revenue increase looks like it is pro forma, yet the EBITDA increase is 46%, so that doesn't look pro forma. So either there's an inconsistency or there was, like I said, perhaps a massive improvement in the profitability.

No, Carlos, it is pro forma. It is pro forma. Thank you.

Right, right. If it's not an inorganic effect, what is the driver behind the margin increase?

Just to tell you, one year ago, the EBITDA wasn't so good. We have been growing our EBITDA margin in Chile. The question is because of the EBITDA margin. It's pro forma, but we are growing very good our margins because of all the synergies that we're having in Chile. That's what is happening. If that answers your question, we are having a very good EBITDA and growing our EBITDA in Chile, and Chile is doing good, and the synergies are working very good. And against last year, we spent a lot of money. We take out some people. We reduce some costs that we have, content costs, a lot of all the synergies. Yes. maintenance costs, the new network, as we're saving some money with the new network. So, yes, that goes directly to our EBITDA numbers.

That's great. That's exactly the question. I appreciate it. Yes. Okay.

We have a follow-up from Vitor Tomita of Goldman Sachs. Vitor, please go ahead.

Yes. Hi, just a very quick follow-up on the new capex guidance. Back in the previous earnings call, it was mentioned that there could be some additional capex for Chile. Does this new guidance already include what you plan to invest in Chile, or is it separate? Thank you. No, no, no.

All our capex guidance includes all the capex of all the companies, so includes Chile, includes everything, okay? We used to give a CAPEX guidance before the three-year CAPEX guidance. And I think the last question is if we are going to, the reduction that we have this year, maybe increase it for next year. I don't know. I don't think so, but I don't know. I think the reduction this year will not increase the normal guidance of CAPEX for next year. I don't know, but we feel that we can save some CAPEX for the future. Clear. Thank you very much. Thank you.

Thank you. We have no further questions. I'll hand back to Mr. Daniel Hash for any closing comments.

I just want to thank everyone for being in the call. Thank you very much.

Thank you. This concludes today's conference call. You may now disconnect your lines.