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

Good morning. My name is Samantha and I will be your conference operator today. At this time, I would like to welcome everyone to the America Mobile first quarter 2026 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 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I will now turn the call over to Ms. Daniela Laquona, Head of Investor Relations.

Good morning. Thank you all for joining us today to discuss our first part of the 2026 Financial and Operating Report. We have today on the line Mr. Daniel Cash, our CEO. Mr. Oscar Gonjauke, our COO, and Mr. Carlos Garcia Moreno, our CFO.

Thank you, Daniela. Thank you, everyone, for being in the call. Carlos is going to make a summary of the first quarter results. Carlos.

Thank you, Daniela. Good morning, everyone. Well, the downward trend on a short-term dollar interest rate following the 35-day rate reduction of the policy rate by the end of December continued in the beginning of the first quarter, as the market became increasingly concerned with a potential slowdown in economic activity in the U.S. The value of the dollar versus the currency, including those in our region of operations, declined throughout the first part of the quarter, with the dollar falling 4.3% to the Mexican peso, based on the Chilean peso, and 6.4% based on the Brazilian real by the end of February. With the major exception of the latter, the U.S. dollar made up practically all its losses in the weeks after the initiation of the war with Iran. Throughout the period, the differential between short-term rates and 10-year rates widened significantly, from 8 basis points to 64 basis points at the course of the quarter, with investors eyeing both a slowdown in the pace of economic activity, possibly in a recession, and higher inflation rates. In this context, in the first quarter, we continue to observe a trend towards an acceleration of both prospects of private growth and that of open accesses, as you can see in this slide. The base increased 8.8% and 6% respectively vis-a-vis the yearly quarter. First quarter revenue was up 2.1% in Mexican peso terms to $237 billion pesos, with service revenue up 0.6%, equipment revenue 7.4%, and other revenue 108%, including the proceeds of a federal ruling in Chile on account of a dispute around self-contained rights. EBITDA increased nearly twice the peso revenue at 3.8%. This was in Mexican pesos. The three slides above reflect the appreciation of Mexican pesos versus practically all of the currencies in our region of operations, having gained 16% versus the dollar, 4%, 4.6% versus the euro, 4.5% versus the Brazilian rand, and 2.5% versus the Colombian peso with respect to the same period of 2025. So major application of the peso, first quarter of 2016 versus first quarter of 2025. At constant exchange rates, revenue rose 6%, 6.1% on the back of a 4.6% increase in service revenue and 11.3% in equipment revenue, driving an 8% expansion in EBITDA. Adjusted for the extraordinary position of the legal ruling, EBITDA was up 7.0%. The greater operating leverage is allowing for faster EBITDA growth. With EBITDA now expanding more rapidly than service revenue, And later, we consolidated a margin to reach 40%, one of our highest margins that we've seen. At 6.4% year-on-year, a similar rate to the one over the last several quarters, mobile service revenue growth has remained resilient, with posted revenue growth at 7.3% and preferred revenue at 5%, having expanded faster quarter to quarter over the last year. Mobile savings revenue growth has been on an upward trend in Mexico and Colombia, as you can see in the slide, on the back of greater prepaid revenue, which has been recovering over the last several quarters. On the fake-line platform, savings revenue growth was up 1.7% in the first quarter. Some regions, particularly Eastern Europe, Central America, Peru, and Ecuador, raised very rapid growth driven by residential demand. As regards our operating profit, it came in at 50.5 billion pesos, plus up 12% in Mexican peso temas, while our comprehensive financing cost declined 9.9%, reflecting lower net interest expenses. This concept brought about a 25% increase in our net income to 23.4 billion pesos, which was equivalent to 39 pesos per share and $44 per ADR. Our financial debt, which was 137 billion pesos at the end of March, has increased by 2.5 billion pesos since the end of December. But this means that our net debt for the period at the end of March stood at 137 billion pesos and was equivalent to 1.41 times EBITDA after leases. I will cancel in the first quarter, allow us to cover 21.6 billion pesos in CAPEX, 1.4 billion pesos in share buybacks, 1.5 billion pesos in labor relations, and further, to reduce our net debt by 1 billion pesos. Okay, so this shows that you can see here in the black. So with that, I thank you for listening to the presentation, and I will pass it over back to Daniel to Q&A.

Thank you. Thank you, Carlos, and where we can start with a Q&A.

Thank you. We will now move to our question and answer session. 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 a moment to compile the Q&A roster. Your first question. comes from the line of Leonardo Olmos with UBS. Leonardo, your line is open.

Hi, everyone. Good morning. Congrats on the results. We've got a couple questions here. The first in capital allocation and buybacks. With the reduction of net debt to the debt to 1.4, how should we think about the balance between continued leveraging and a more feasible acceleration buybacks from here? What leverage would you make more comfortable stepping up capital returns. And the second one, still on leverage, but more on the M&A context. If operating trends and effects remain broadly stable, should we expect leverage to continue trending lower from here? And how do you think about M&A activity in that context? How is it going to impact your free cash flow concerning the actual payments of the M&A? That's it. Thank you.

Thank you, Leonardo. Well, a couple of – what we need to see and what we want is some space because I think the region is in very good shape, okay? So the region is going to – we're going to have some opportunities in the region in Latin America and in Eastern Europe. So both we are growing good and we're doing very good so. We think that in Eastern Europe and Latin America, there's going to be good opportunities, and we are looking for some of them. We already – we just a few months ago, we closed Azteca, the network of Azteca in Colombia. We just closed Desktop. So there's – there's going to be more opportunities on that. So, as you said, we need to have a good balance between buybacks, between the leverage, and the opportunities that we have. We are looking for some opportunities, and these opportunities are going to give us a very good competitive position in the places where we are looking. So, these opportunities are going to make a very good fit and are going to allow us to grow more or faster where we are. So that's where we are, and that's the balance that we have. Carlos is saying we want to have the debt to 1.3. More or less is what we want to have. We have more opportunities, and we are also increasing our – Okay, we're increasing to 10,000 pesos more to have 21,000. Yeah, yeah. on the phone so we want to buy we want to buy back more we want to save the opportunities and we want to deliver it as you are saying we want to have a good balance on that right now I'm personally seeing good opportunities in some countries that makes very good fit for us and we are looking and doing that so that's where we are Leonardo Yeah, good to see you.

You answered both of my questions in one answer. Thank you for that. Just a quick follow-up. You used to talk about fiber opportunities. Are we still on that, or are you considering mobile or other type of network complementarity?

No, we're considering everything. We're considering fiber. I think there's a lot of fiber companies in the region that makes fits. Instead of putting fiber, they are already with fiber and some customers. And also Spectrum, you know that we buy last year some Spectrum in Puerto Rico. There's a lot of things that you can see what we do in desktop, the backbone that we do with Azteca Colombia. And you are going to see all these years good opportunities, Leonardo. So we want to have a chance to take those opportunities. Very good. Thank you very much and have a great day.

Thank you. Thank you.

Thank you, Leonardo. Our next question comes from Marcelo Santos at J.P. Morgan. Marcelo, your line is open.

Hi, good morning. Thanks for the opportunity for asking. I have two questions. The first is if you could provide us an update on the CapEx plan for 2026. There was a lot of changes in currencies. The Mexican peso got getting stronger, so just wanted to hear what you plan for CapEx this year, maybe the next couple of years. And the second one, you mentioned in the release some operational issues in Argentina. Could you please comment a bit on that? Just give a bit more color on that would be great. Thank you.

Well, as you said, we have been having a lot of movements in the exchange rates. And we have been reviewing carefully what we're going to have in each country for the capex. You know that the capex is part in dollars, part in local currency. So we're reviewing that both. All over all, what we think, finalizing our capex, we think that the capex for this year is going to be $7 billion, around $7 billion, depending to be a little bit more, a little bit less, depending on, as we said, the exchange rates. And we think that for the next years will be around that. We are going to have our investor day in May, and we can finalize the numbers for the next years. But I can say that we are more or less in that number. And Argentina, I don't know what you are asking on Argentina. Argentina?

I think you mentioned on the six-line business in Argentina that you said the six-line market has become more challenging because of the difficulties in assessing clients in the Buenos Aires metropolitan area. So just wanted to better understand.

We're doing very good putting fiber in Argentina. very difficult for us to do it in Buenos Aires as the capital city. So that's the only thing. We're putting fiber, we're growing, we're putting broadband, we're giving TV and doing foreplay. It's been very good for us. We're growing very good in Argentina and the only place where it's been difficult for us is Buenos Aires because I think we have permission, but it's difficult because they don't rent out the telephone posts, and they don't allow the competition to go there. And difficult to do it underground. Underground has been very difficult to do it there, but that's the main reason that we have. Okay. Thank you very much for your answers. Where we have fiber, we're growing very good, penetrating the network, doing fiber, doing quad play, doing excellent. So that's been good for us. With all of that, well, we're going to have a big competitor in Buenos Aires because we The market share of our competitor Telecom buying Telefonica is going to be high, so let's see what is going to happen there, no?

All right. Thanks a lot. Thank you.

Thank you. Your next question comes from Andreas Coelho of Scotiabank. Andreas, your line is open.

Yes. Thank you for taking my question. Daniel, as you know, Starlink said back in December that the direct-to-sales service is already available or could be available in Mexico. Obviously, users will appreciate that. And I'm wondering if American Mobile could work with Starlink. Thank you.

I don't hear you so well. Can you repeat the question, please?

Sure. So Starlink said in December that direct-to-sale service is available in Mexico since December. So they could provide the service in Mexico. And this will be obviously very good for users, especially in remote areas. So I'm wondering if American Mobile could work with Starlink to provide direct-to-sale service.

Yes, I think the real direct-to-sell service, what I understand is going to be in 2027, something like that. They are going to launch a new satellite, and that will be the direct-to-sell. Well, they have been successful selling satellites. broadband to the houses in Latin America, I think all around the world. We are open to do anything for them that makes sense for us, of course, and we're talking with them. And I think it's going to be a good technology. So for doing that, you need to have a spectrum. So I don't know if they already have a spectrum in some places. I understand that they buy a spectrum in the U.S., and some in Europe, but I don't know if they have a spectrum in Latin America. So, but we are open. If your question is we want or we can do something with them, of course, we can. I think it's a service that makes a complement with us, and, of course, we are open to do something with them.

Okay, thank you. As you know, Intel is doing a direct to sell in Chile and Peru. And I understand that in Costa Rica, the service will be available soon. So you're saying that you will wait until 2027 for the service to be available in Mexico?

No, no, we're not waiting. We're talking with them. But I think the real... and the orbits of satellites for CEL is going to be available in 2027. They are doing something today in some countries, of course, but the one that is going to be big and it's going to be directly to CEL is going to be, I think, they said, this is what they said, right? I'm not starting, but what they said is going to be in 2027. Of course, they already have some... The new constellation is going to be in 2027, but they already have a constellation that can do the peaks broadband. But we're not waiting to talk with them. We're talking with them and see what opportunities we can have. Understood. Thank you. Thank you.

Thank you. As we continue with our question and answer session, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. That is star number one. Our next question comes from the line of Luca Brendan at Bank of America. Luca, your line is open.

Hi, good morning, everyone. Thank you for taking my questions. I have two from my side here. The first one, can you comment a little on how are you seeing the expansion of your partnership with NuCell and how relevant it has been for the strong expansion you have seen in Brazil Mobile this quarter in terms of new net additions? And then the second one, How do you see the potential impact of the recently announced M&A in Mexico mobile and what the impact that this could have to the market and to America mobile more specifically?

Thank you. The second question is the announcement in mobile in Mexico of what?

Yeah, the recent M&A that was announced, the Telefonica selling their assets.

Ah, the buy, the purchase from Telefonica, the sell of Telefonica in Mexico?

Yes, yes, that's it.

Okay, okay. Well, I don't know if in Brazil we are disclosing the numbers of number portability between what we have and what we sell. But I can tell you that we have been doing very well. In number portability, we have been gaining number portability for the last four years, three, four years, gaining number portability in all the regions with all our competitors. So we have been doing well, and with Nusselt, we increased that number portability. So that's nothing that we have been doing bad, and then with Nusselt, change, and we're doing good. So we have been gaining in number portability because we have a very good 5G. We have customer care. We do combos with the peaks. So we have a lot of promotions and we are, I think, in a very good shape in terms of technology, in customer care. We have been investing in Brazil and that's giving us good results for the last year. So with Nusselt, our portability expands. We are growing. I don't know. I don't have the numbers here how much is in us and how much is in Nusselt. I don't know if in Brazil, but if in Brazil they disclose that, Daniela can give it to you. But it's something on top of what we have been doing very well. I'm not saying that Nusselt is not doing very well. And... we think that we can still grow more in Brazil in number portability. Since October, I think we're gaining more and more, and I hope we can do more, Luca. And, well, how I can see Mexico, I can say that the last years, of telephonic in Mexico has been shrinking a little bit in terms of technology, in terms of infrastructure, in terms of frequencies. So they start to be like an NBNO of, I think, and the other of AT&T. They are buying that. So there's a good company, good name. but not investing what they need to invest in Mexico. And I don't know what's going to be the strategy of these new buyers, and I don't know if they are going to still do and manage the company as an MD&O or they are going to put infrastructure and buy a spectrum and compete. So let's see. Still right now I don't know what they are going to do.

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

Our next question comes from the line of Femi Kanemuri from HSBC. Femi, your line is open. Please go ahead.

Thanks for taking my question. My first question is on Mexico Mobile. The growth seems to be accelerating. What are the major drivers behind the growth in Mexico Mobile? And can we expect this growth to continue in 2026? My second question is on working capital. It seems to have increased a bit in 1Q26 compared to 1Q25. What are the reasons behind the increase in working capital? Thank you.

Well, on Mexico Mobile, I think we are growing rapidly. Part is I think that the economy in Mexico is getting better. The increase in the salaries, the minimum wages increased 12%, I think, and that gives us an increase also in the prepaid side. So as we have been saying, prepaid, is very related to the economy, and if the economy is starting to be better, then the people are starting to spend a little bit more, and that's what we have been seeing in the prepaid side. In postpaid, people like our promotions. We are increasing ARPU, and It's not new. I think in post-state, the growth rate has been very good for the last five quarters. So our ARPU is growing, and we are growing in new customers, and our actual customers are moving to better plants and consuming more. So that's more or less. what you have been seeing, and I hope that will be, but it's not in this quarter. I think for the last five quarters, six quarters, four quarters, the growth of post-pays has been doing good. And in pre-pays, I think last year we had a little bit of slowdown because the slowdown of the economy, but I think the economy is getting better and the recovery is doing good. So that's more or less what we have.

And on the working capital, I think there's two things to note. One is that we are taking in a bit more inventory. We have been more cautious about availability of supplies. If you look at equipment revenues, they've been extremely good, extremely solid this quarter and the last one. And if you look across countries, you will see Mexico, Brazil, you know, showing very, very strong demand. so that's partly reflected in the working capital. And then again, and it's partly linked to this, we are financing very successfully handsets, and the consequence in Mexico, for instance, the way we do it is we are basically leasing the handsets, and this basically entails some additional working capital. But it's been good sales and very, very successful, these methods of selling the equipment.

Yes, and to add a little bit of what Carlos is saying, we all know that the chips, the memory chips, have been increasing a lot, the prices. So the price of the handsets is starting to increase. So we want to be sure that we have enough handsets to serve our base, our customer base. So that's really the reason why we increase on inventory. So prices are increasing. And we don't know if only prices increasing or we're going to have – So, that's why we are taking that decision to increase a little bit our inventories.

Okay. Thank you. Thank you.

Our next question comes from the line of Emilio Fuentes de Leon from GDM. Emilio, your line is open. Please go ahead.

Thank you for taking my questions. I have two questions regarding Mexico on the operating side. First, regarding the disconnections initially from the Digital Transformation Agency, could you give us a little more color on the nature of these clients? Were they mostly on active lines? And my second question would be on the broadband side. given that you're reaching 90% of customers connected through Fiverr, would this mean that we should expect NetApps to decelerate going forward?

Well, you know that since January 9th, the registry of lines is, we have to do it by law. We have to register the line and do a lot of things there. So, maybe people is starting to activate less and churn less because they don't want to do it, but well, that is gonna happen. So I think there's gonna be a lot of clean in the basis of subscribers and subscribers that they are not using. At the end of the day, you need to cancel them because they are not gonna be registered in the first of July. So there's gonna be a lot of things, but all over all, it's only number of lines not the money and consumption and so for me I don't know if I'm I'm not looking on how many lines or how many as new activations because if I activate a lot but then they turn in the next three or four months it's worse because it's cost for me and it's not a revenue for me so That will make subscribers, the base of subscribers to be more clean and to really understand where we are in number of subscribers with this new register of lines. So let's see. It's been not as fast as all ones, the register. All the new ones have to be registered and all the old ones, has to be registered until July 1st. So let's see what is going to happen. But all over all, what I'm saying is a lot of people maybe it's not buying a new phone and staying with that because if they buy the new one, then they have to register. But that's going to finish maybe in July. So there's going to be a lot of things. All over all, the important thing, how many good subscribers and subscribers that are consuming are the ones that the company has. And that you see in the revenues, in the ARPU, in all of that. So that's what is going to happen.

I also see that there is a solution in the broadband.

Yes, the broadband service, the broadband in YMAS. And what's the reason why the broadband will slow down? What's your second question?

Yes, my question was regarding the broadband network. Should we expect this to slow down as you reach full penetration on your fiber network?

Well, I don't think that our broadband will slow down because What we're doing is we're moving from copper to fiber, I think.

Ninety-three percent.

Ninety-three percent of our base is in fiber right now.

We have very good bundles in the market. We recently increased the speed almost one-third with the same price. So I think it will continue with a good level of net-up. Okay.

We hope they don't slow down and we can continue with that number.

Thank you. Thank you.

Our next question comes from David Lopez at New Street Research. David, your line is open. Please go ahead.

Hi. Thank you for the opportunity and congrats on the results. A couple of questions, please. First one is a follow-up on Mexican broadband. I was wondering if you could comment on the competition recently, if there have been any changes, and if you could expand a bit on the reason why you've increased the speed on all the packages. And with Televisa upgrading to Fiverr, a large part of its business, does that mean it's going to be harder for your net ads? And the second question on Brazil, I was wondering if you could comment a bit on your plan for price increase this year. Thank you.

Well, I'm going to start with the second question, and I'm going to let Oscar talk a little bit about the broadband in Mexico. Well, in Brazil, we don't have, until now, a plan of increasing prices at this moment. I don't know if there's going to be a chance to do it. in the year, but right now we don't have any idea on increasing prices in Brazil in anything, in mobile, in broadband, in TV, so we don't have plans to increase prices. And on broadband in Mexico?

As we mentioned before, we already upgrade the network. We have a very good network. And you mentioned about the business. we want to differentiate ourselves in broadband, adding value to our small business connectivity. So we are bundled with cloud services, cybersecurity, productivity tools for small business. And really, we have a team really focused on small business to really penetrate not only broadband, to bring value added to the small business as well on enterprise. So we believe that that is has been working very well, and the product has been very well adapted in the market, so we believe that we could continue with that.

And to talk a little bit about, I want to do some other comments. I think all over all, America Mobile is doing very well in other countries. We're talking about Mexico a lot. We're talking a lot about Brazil. But I think the recovery in Colombia has been very good, We're increasing in broadband. We're doing much better in post-paid. So in Colombia, I think the market is performing well. We are performing well. We are cutting costs and doing a lot of things. So our revenues are growing. Our EBITDA are growing better.

In Peru, right?

No, in Colombia. In Peru also, things are going okay with us. We have a top competitor that has a lot of – sorry, and in Colombia, we advance in 5G, and we have the best 5G network until now, so we are doing okay. In Peru, also doing very good in broadband, growing our net access. and performing very well in revenue and in EBITDA. So if you see all the Central America has been doing also good. We talk also about Eastern Europe growing a lot, moving a lot. Five years ago, we only had mobile. Today, we have mobile and fixed and doing a lot of convergence there. So I think The results, and in almost all the countries, we are performing very well, cutting costs, digitalizing, that will help us for the future. We are putting a lot of money on the CapExon, digitalizing our processes, digit IT, and doing that. Also, in big businesses, we are putting more and more clouds Selling more services. So all of that has been doing very strong in our region. And as we said, we want to speed up and take more opportunities there. So that's what I want to talk a little bit more on that.

Very clear. Thank you. Thank you.

Our next question comes from the line of Ernesto Gonzalez with Morgan Stanley. Ernesto, your line is open. Please go ahead.

Hi. Thank you for taking your question. And I wanted to ask exactly about Colombia, which you were commenting on a moment ago, and a few of the other markets where Telefónica has recently left. Could you discuss a little bit of the trends you're seeing? For example, Colombia, we saw an acceleration in revenues. What is driven by your commercial strategy? What is driven by market consolidation? And any color you could give on these moves is greatly appreciated. Thank you.

Well, in Colombia, we have been investing there for a long time. We invest in 5G. We have the best 5G network, so our customers are happy. Our traffic is growing well in terms of broadband. We have been decreased the last year a little bit, but we're increasing this quarter on the broadband side. We have a lot of competition in Colombia with these ISPs there. And consolidation has been also good. But I think consolidation in Latin America is also being good for all the competitors also. You need to invest. You need to take the opportunities. But all over all, we think the markets are looking better, no?

That's really clear. Thank you. And just one more question on Mexico. Margins improved, and they were the highest level in a long time. You continue expanding really, really well in fixed. What's the margin improvement and how sustainable is it?

Well, in fixed, what Oscar is saying is we increase the speed to all of our customers. So, we have fiber and we're using that fiber. So, customers are being the evaluation of our customers is that they are happy with the network, happy with the service, and we are going to still give what the market is giving. So we want to be very competitive there. And also in prepaid, as we said, prepaid, let's say, I think I don't remember exactly the number, but I think first quarter of last year, we have decreasing in revenues in prepaid. And this quarter, we are increasing like four, 5% there. So economy is doing better. Customers are consuming more. So all over all is what, and we are very strict on the cost control. Something that nobody see and is giving us a lot of good is the digitalization of all our process. So we are taking, we are being much more productive digitalizing all the process, doing better IT, using some AI in some processes that give us more knowledge of our customers. So all of that is helping us to perform better in each country.

Really clear. Thank you.

We have reached the end of the Q&A session. I will now turn the call over to Mr. Daniel Hash for final remarks. Well,

Daniela wants to... Just before we end the call, I just want to remind everyone that we're hosting our next investor day in New York City. This is May 27th. The save the dates has been sent out, and we'll be sharing details on the agenda soon. We really hope to see you all there, and please don't hesitate to contact the The team, if you have any questions or need any help with the registration.

And thank you.

Thank you very much. This concludes today's conference call. You may now disconnect.