America Movil Sab De Cv

Good morning. My name is Elliot, and I'll be your conference operator today. At this time, I would like to welcome everyone to the America Mobile First Quarter 2023 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 your question, please press the pound key. Now I'll turn the call over to Ms. Daniela Lacuna, Head of Investor Relations.

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

Thank you, Daniela. Thank you, everyone, for hosting the first quarter financial and operating report. And Carlos is going to make a summary of the results. Hi, Carlos.

Hello, everyone. Thank you, Daniel. Good morning. Well, throughout the first quarter, dollar interest rates remained volatile, hovering between 3.4% and 4%. A sentiment in the U.S. alternated between relief that inflation seemingly had come under control, anguish from the potential inflationary consequences of what appeared to be an increasingly hot labor market, and fear of contagion stemming from the fall of important banks in the U.S. and Europe. The value of our operating currency, vis-a-vis the dollar, reflected this volatility. Although they all ended up appreciating the price of the dollar in the previous year, the Argentinian peso being the only exception. Mexican peso appreciating 2.5%, the Brazilian real 4%, the Colombian peso 4.3%, and the Euro 1.2%. In the first quarter, we added 1.1 million wireless subscribers, of which 1.9 million were posted live. Almost half of the new post-paid shops, 944,000, came from Brazil, 295,000 from Austria, 154,000 from Colombia, and 128,000 from Peru. On our prepaid platform, we had net disconnections of 754,000 clients as Brazil disconnected 1.4 million, including 1.6 million former oil shops that were not generating traffic. Organically, we had solid growth, including Colombia with 354,000 and Brazil and Argentina with approximately 200,000 each. On the fixed line segment, we obtained 313,000 growth and accesses, including 139,000 in Mexico, 74,000 in Argentina, and 47,000 in Brazil. In some of these countries, Mexico and Brazil, these were the best numbers that we have had for fixed-line access growth in broadband for a long time. We ended March with 301 million wireless subscribers, of which 116 million were posted clients, and 73 million fixed-line are used, including 31 million broadband accesses and 13 million PPP clients. We have seen certain acceleration in access growth, particularly in mobile, with our post-paid base increasing 8.7% year-on-year and prepaid 5.6%. On the fixed-line platform, broadband accesses were up 2.6% and pay-to-be was practically flat, having recovered from the 2% decline from several years before. Twist-quarter revenue was up 1.7% to 209 billion pesos, with savings revenue declining 2% in Mexican peso terms on account of the appreciation of the Mexican peso versus substantially all of our operating currencies, which reduced the peso value of our international revenue. It reached a total of 83 billion pesos in the quarter. It was up 3.2% in Mexican peso terms, correcting for foreign exchange effects Service revenue was up 6.3%, a slightly faster pace than the prior quarter, and the same as the prior one. These are the top rates of growth that we have seen in a long time as well, more than a year. 6.3% service revenue growth, which brings about an EBITDA growth of 5.8% after adjusting for profits obtained from the sale of telecom towers in the Dominican Republic and Peru. So as you can see on the slide, the trends have been very good, and in both counts, we are exceeding the forecast that we had given back in our investor day in October of 2021. On the PICLAN platform, service revenue growth came in at 1.8% at contract exchange rates. It's best performance in over a year on the back-to-start expansion of broadband revenue, 9.6%. On the mobile platform, revenue grew 9.3%. Mobile service revenue accounted for 62% of total service revenue. So we do see a slight deceleration in mobile revenue growth, but an important upswing in fixed-line revenue growth, and the aggregate of the two was 6.3 percent, one of the best rates, better than the first quarter, than the fourth quarter of last year, and equal to the third quarter of last year. The improvement of fixed-line revenue growth was driven mostly by Mexico, Brazil, and Colombia. jumping to 4.1 percent from minus 1.3 percent the entire quarter in Mexico to minus 1.4 from minus 3.5 percent in Brazil and to plus 4.2 percent from minus 3.6 percent in Colombia broadband revenue was up 9.6 percent in the quarter at constant exchange rates while corporate network revenue increased 12 percent with respect to mobile service revenue Brazil led the way with 21.5%, followed by Eastern Europe and Mexico at 9.2% and 8.1%, respectively. Deceleration in consolidated mobile revenue growth reflects the slowdown observed in Colombia and Austria, with the pace of growth being reduced to 2.2% from 4.7% to 2.4% in Colombia and to 3% from 4.9% in Austria. Brazil and Eastern Europe also led the way in EBITDA growth at 15.7% and 9.7% respectively. They were followed by Ecuador and Mexico at approximately 6% each. We turned an operating profit of 44 billion pesos in the quarter of 9.7% year-on-year, which kept doing about a 30 billion pesos net profit in the quarter, slightly down 2%, 2.1% from the year-earlier quarter. The declining net income had to do with a reduction in foreign exchange gains, down from $22 billion in the first quarter of 2022 to $13.7 billion in the first quarter of this year. So we had a significant reduction in foreign exchange gains. And that's what explains that net income was practically flat, slightly down, as compared to an increase of nearly 10% in operating profit. Capital expenditures total 29 billion pesos in the quarter, which share buybacks amounting to 1.9 billion pesos. These items were funded by our operating cash flow, by net borrowings of 2.4 billion pesos, and by deferring up of 5.9 billion pesos in assets formerly invested in our pension fund. Our operating cash flow It was supported by the sale of towers in the Dominican Republic and Peru that provided $6.4 billion and provided an income of $0.7 billion coming from Verizon. Our net debt, excluding leases, totaled $365 billion by the end of March. It hadn't come down by $16 billion from the end of December. It was equivalent to $1.39 billion. So with this, I will pass the floor back to Daniel, and we will start the Q&A session. Thank you all.

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

Thank you. At this time, I would like to remind everyone, in order to ask a question, please press star, then the number 1 on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Our first question comes from Walter Pike from Light Shed. Your line is open.

Thanks. Carlos, I guess the first question is on, it's kind of a weird specific one, so I apologize. I usually ask larger macro, but if you look at Mexico, your equipment revenue grew year on year, but if you look at the subscriber growth, your net ads, I think we're were lower and churn rate was lower. So are you just selling more expensive phones in Mexico driving that higher equipment sales?

I think what is happening in Mexico, we have the fourth quarter that it's Christmas. It's Christmas last year. We sell a lot of equipment. And we have some disconnections because people only change the equipment. They bring the theme in their new equipment. And that's why you're seeing higher sales and changing the theme so you don't see too many new subscribers. I think we're doing good in selling equipment. We have a good profit, good revenue there. And all over all, I think we're doing very well on new subscribers. Also in Mexico, you see the post-paid is starting to grow again. We have around 85,000 post-paid new subscribers. So I think our 5G network is doing good. We're putting a lot of customers in this network. We are bringing... Also 5G in prepaid in those days. So all over all, I think we're doing good in equipment and net ads in Mexico.

Thanks, Daniel. Just an overall question, I guess. In the U.S., the replacement cycle is lengthening. People are holding onto their phones longer. And I think that's kind of what I was trying to understand is, I understand that in your market, there's a lot of SIM cards that are connected to gross ads and net ads. I'm just curious, though, given the investments you've made in 5G, how are overall phone sales in general across the markets, whether it's just Mexico or Brazil in general? Are people holding their phones longer? Are you seeing more upgrades in your markets because of your network investments? Can you give us a sense of what that market looks like?

Well, our ARPU is growing in Mexico, so you're seeing people is using more in prepaid and also in postpaid people is upgrading their plans to a better plan for 5G. I think 5G is working very good. Also, we're doing good financing in the handsets. We're also financing in the prepaid market. So we're financing postpaid for a long time and we're starting to do a little of financing in the prepaid and it's bringing good sales and good customers. So that's doing good. In the cycle, I think it's reducing, it's getting a little bit longer, the people, everybody's thinking a little bit what is happening, interest rates and everything in the economy. So people is trying to hold a little bit more for a little bit more time their phone. But we're not seeing the big, big changes right now in Mexico and Latin America. Let's see what is happening in the next quarters.

And if I just feel my one more just on the capital. I'm sorry. Go ahead, Carlos. Yes.

I just wanted to make it clear that everybody that hasn't focused on this. Equipment revenues were growing nearly twice as fast in Mexico as service revenues. And that's basically a lot of what all this has to do with a lot of equipment financing that we're providing today with insurance. And that has proven to be a very good combination. We are getting a good margin out of these sales, and we are getting a good margin out of financing itself. So that's something probably that some people do not have in the picture.

And I'm going to add another thing on that. I think last year's the increase of importing handsets in the market has been growing, and with interest rates getting higher, I think the importing handsets has been reduced, so give us opportunity to sell more through that. I don't think the market is growing, but I think Telcel is growing, selling more and more handsets. It's what is happening right now.

Can I assume that if you're financing a phone to a prepaid customer, that if that customer is not going to recharge their phone each month, that you'll require full payment of the phone? Or can they continue to make their lease payments or their finance payments on their phone and not recharge on the prepaid? Because obviously that would be something that could help your churn rate in the prepaid side of things as well.

No, we're starting to finance. It's not a big operation. But what we're seeing is that we can lock the phone. If they don't pay, then we can lock the phone, that they cannot use the phone. So people are starting to pay again. So it's been the bad debt. It's lower than what we're thinking. And we're going to do that smoothly, slowly, to see that it's a good business for us. It means good businesses, good new subscribers, they charge more, and we have profit selling these handsets. So those are the three things that we're seeing. And if you don't mind, can you just comment on the card? As I said, in post-paid, we have been financing for...

five seven years so we have been doing that for a long time and it's been very good if you don't mind yeah the other question was just on target leverage because i noticed that your share repurchase was a bit lower in the first quarter um have you changed your kind of view on target leverage given the kind of rate environment that exists

We have probably about $100 million equivalent less share buybacks in the first quarter. Typically, as we've said in other calls, our cash flow is very seasonal, and that's partly why we have less buybacks in the first quarter always. I think another I think that we are taking into consideration, I think Daniel will be expanding it, but it has to do a little bit with CapEx.

Yeah, what we're seeing is that we have like a target of 8 billion a little bit more or less for the next three years in CapEx. And we're seeing that if we put a little bit more fiber that brings more connectivity to houses, to businesses, long enterprises, data centers, and give more fiber for 5G. It's a good opportunity, and we're thinking to increase a little bit our capex this year to bring forward some of the capex. It's a good opportunity in some countries to do that for around maybe 4% to 5% more than what we have this year. And we're looking that it will bring us good subscribers, better ARPUs, more penetration in broadband, incorporating a lot of things. So that's what we're reviewing and seeing to do in some countries. Thank you.

Thank you. Our next question comes from Leonardo Olmos from UBS. Your line is open.

Hi, good morning, everyone, for taking the question. So I got a couple of ones. The first one is, can you please discuss the Telmex separation that is being requested by your competitors? And if there's a risk of IFT doing something about it or maybe directly the AMLO government? That's the first one. Thank you.

Well, what you have been seeing is a lot of noise from the competitors in the press, but our position is that we do believe that there is substantial evidence supporting the need of a deregulation in the telecom sector. I think the upcoming revision process with the IFT will bring a good opportunity for relaxing the regulation in Mexico. The only thing that I want to add is let's wait for August to see what are going to be the comments of the IFT and see what is happening. But the point is that Mexico needs deregulation in the telecom sector. More investment, less regulation is what all the countries in all the world want.

Crystal, clear. Thank you. And the second one, we noticed some cost pressures still relevant in a few countries, especially Colombia and Mexico, that have higher OPEC than we estimated here in UBS. Can you discuss what happened and your expectations for the remaining 2023? Thank you.

Well, Leonardo, I saw your note, and you were saying, you know, it is a margin for Mexico to come down by 100%. One of the points is if you compare it to total revenues, and that has to do with equipment sales, as we discussed in the prior question, growing nearly twice as fast as service revenues on mobile. So we do have, if you look at the EBITDA margin relative to service revenue, There's a slight reduction, but it's something like 30 base points or 40 base points, not the 100 base points that you mentioned. And this reduction is practically all having to do with a new legal framework, so we are now obliged to consider the premiums for vacations and a whole bunch of other things. We need to account for that earlier. So there's a little bit of an impact of that in the first quarter. Other than that, which is basically not a change in the cost throughout the year, but yes, change in the way how we account for it throughout the year. That's the only thing that we can say was anything to do in Mexico. In the other countries, we don't really have anything to do. Maybe in some cases, mostly provisions. It's really not something that we are doing on cash terms. Some of the pressures eating up margins Just another case in Colombia.

A little bit in Colombia, what's happening a little bit, I think there's more pressure, a lot of competition, and we're starting to grow again in the broadband. I think that's more or less what is happening. The exchange rate goes a little bit high, so some costs related to peso dollar, Colombian peso to dollar, but all over all, I think Colombia is also doing good. Still, we have a very good margin in Colombia, and we're going to compete in Colombia, and we're going to take opportunity of the market. So that's what we're going to do there.

Understood. Thank you very much, Carlos and Daniel. Have a good day.

Thank you.

Our next question comes from from JP Morgan. Your line is open.

Hello, guys. Can you hear me? Yes. Perfect. Thank you for taking my question. So what is the timing and the goal to surpass 80% FTTH penetration in Mexico? And second question, in Brazil, we have seen that you've been accelerating FTTH2. Is there a new mindset regarding fiber overlay?

Thank you. Well, the actual FTTH penetration in Mexico is 69.8%. We already reached 70%. 80%, I think, we will get next year of penetration. So we are doing a big effort to do the migration from copper to fiber. We've been building a lot of fiber to the home. So if I remember, last quarter we mentioned 62% of penetration. Now we move to almost 70%. So I think next year we will reach 80%.

Yeah, fiber. And the next question on Brazil, can you repeat that, please?

Sure. We have seen that you've been accelerating FTTH also in Brazil. Just wondering if there is a new mindset regarding fiber overlay. Is there a goal as ambitious as now in Mexico, some color there on the fiber overlay in Brazil?

Well, as you know, in Brazil, we have a cable. We have a FTTA cable. And all the network is already prepared with DOCSIS 3.1. So we could deliver one gigabit speed in all of the network. But as you mentioned, we've been building fiber to the home since three or four years ago. Now we have around 9.5 million home passes with fiber. We expect to end with 11.1 million home passes with fiber. So I think that's why you see the figures that we are getting net gain in Brazil because we've been improving the speeds in cable and in fiber to the home. But as well in Brazil, we've been working a lot on custom and experience. So all the... time on installation, time to repair, customer satisfaction. We've been really working and putting a lot of effort as well in customer retention. So we will end with all the cable network with DOCSIS 3.1 and with the 11.1 million fibers to the home by the end of the year.

Very clear. Thank you. Thank you for your answers.

Our next question comes from Andres Coelho from Scotiabank. Your line is open.

Thank you for taking my question. In the last couple of months, we have seen news regarding new technologies that can connect satellites directly to unmodified mobile phones, especially to areas where there are no towers currently. I think in Latin America, some of your competitors already have agreements with new satellite companies. such as Starlink or such as SpaceMobile. I was wondering what are your thoughts on these new technologies, and if you perhaps can provide us any color on what percentage of your capex goes into covering rural or distant areas. Thank you.

Well, I think, and Oscar can comment a little bit more deeply on that, but I think these satellites are like a complement also for our technology because a lot of our cell sites, towers that are far, that are very expensive to connect with the fiber or to connect with the wireless microwaves, we connect with the satellite. So we have our own satellite business, the Start One, and we connect that. But there's opportunity also with other satellite businesses. We do. We also connect with other satellite businesses. So it's a complement. I think it's going to be difficult at the short term to connect satellites every people in Latin America in every place. I think in the long run we are going to do it. But satellite can help to cover that. I don't think it's a competition, but it's also a complement to do that. To do it with satellite, it's more expensive for the customer. It's more expensive in cost. As we can do more and more wireless, I think it's going to be better for the people.

But, Oscar, I don't know if you... No, as you mentioned, we've been working with Star One for many years, our own company. Of course, it's a geo-satellite. The new constellation that is coming, the Leo satellites, Starlink, AST, But we have relations with the different satellite providers. We've been using for mobile backhaul, I think, in all the countries to reach rural areas. I think this new offering that is the LEO satellite will do more economical feasible to reach another location, a rural location. And we are working with these companies to complement our infrastructure in rural areas. I think it's a good technology to reach rural areas most cost-effective way, and we are working with those companies to bring it together to the market.

Understood. Thank you.

Thank you. Our next question comes from from HSBC. Your line is open.

Thanks for taking my questions. My first question is regarding Columbia fixed competition. There seems to be a much better trend this quarter in the fixed broadband revenues compared to last quarter, so just wanted to understand the competitive dynamics there, whether you're seeing the competition easing in Columbia. My second question is regarding your pension inflows and outflows. This quarter you had almost 5.9 billion assets that were freed up from your pension assets. How do you see the trend going forward? Do you see further freeing up of assets from the pension funds? And considering that in the last few years you have invested or put money into the pension funds, how do you see the trend going forward? Thank you.

Well, I think in Colombia, as we're doing in all the countries, we are putting more fiber, FTTH, similar to Brazil, similar to Mexico, similar to almost all the countries, and And it's bringing us to grow more in the broadband. So it's doing very good. Also, one of the segments that we're doing very good is in the corporate side. So fiber that brings to the houses also brings to the small and medium businesses. And we're growing very good the revenues in the corporate side. that's more or less what is happening in Colombia. And that's the reason why we're thinking and trying to do a little bit more CAPEX and a little bit more FIBER to see some opportunities that bring us more revenue in the future to bring forward a little bit of our CAPEX and to cover more So that's what we're doing. As Carlos said, the broadband is one of the best quarters that we're doing. It's something that we do last year that brings us more customers this year, and that's what we want to advance a little bit on that. I don't know, Oscar, if you want to comment something more on Colombia.

No, well, the same thing. We already upgraded the network, the cable network, to deliver high speeds. We've been building fiber to the home since four years ago. And we have a very aggressive plan to do fiber to the home this year. So I think we are very well positioned in the market. But there is a lot of competition. That's true in Colombia. I think it's important to understand that, you know, we have to manage a fund and we have to determine how much of the pension in each year should be funded directly out of Telmex funds should be funded from the pension fund itself. And this is something that we assess based on whether, you know, we consider that at a given moment it's better to keep money in the pension fund or it's better to take profits, so to speak, from the pension fund and take out some cash. It also has to do with the tax deductions from the pension payments made directly by Telmex to the extent that they can utilize them There's some value there. So there's many things in this exercise that we need to take into account. So that's why we don't have a strict rule saying every single year has to be the same proportion of funding coming from and from the pension fund. It changes, and it does reflect our views and our opportunities in terms of tax deductions.

Thank you. So just a quick follow-up on the corporate revenues that you have. What percentage of your corporate revenues comes from connectivity versus IT solutions? And considering that this quarter looked very strong in terms of the corporate revenue growth, do you think that this will continue or is there some seasonal component to this revenue?

It's difficult to because we do connectivity to the enterprises. So we do connectivity and brings everything, IT, cloud, wireless phones, some applications. So there's a lot of things that we sell. So it's difficult to share the revenue on that. Corporate has been growing for the last three years, and I think it's going to still grow for the next year. So, Oscar, I don't know.

I agree with what you say, Don. And mainly what we've been seeing is we've been always in connectivity. So we've been adding value to that connectivity. And what we see that is growing is, as you mentioned, cloud services, software as a services, infrastructure as a services, and we've been doing well in something verticals. So we are offering to the customer with alliance different vertical solutions in mining, in agricultural. That's the one that is pushing up the revenues. And just to give you an approximation, what we call computer data, which is a couple of networks, connectivity, and I think both in the mass market. That is approaching 25% of our service revenues on the consolidated level. And of that amount, maybe one-third of that could probably be corporate networks. So that is 68%. Corporate, right. MPLS and SE1 networks, right?

Yeah. OK. Thank you. Thank you, everyone, for answering the questions.

Our next question comes from Sumit Datta from New Street Research. Your line is open.

Yeah, hi there. Two or three questions, please. One just on capex, interesting to hear you're maybe spending a little bit more in the near term. I guess just conceptually, we've seen some nice strength in the Mexican peso versus the dollar in the last few weeks and months. So in theory, should we be seeing you getting more efficiency from your CapEx? Or do we think maybe the overall $24 billion CapEx envelope can come down given the moves in the currencies? That's the first question, please. I'll come back to the next one.

Well, I think, yes, we are seeing in some markets the trends have been appreciated. Not in all, but probably the trend will be for that to happen more generally throughout the year. I think there's the mankind, certainly the Latin American countries, also Europe. But I think that the type of Things that we are looking at doing, which has been said, is a lot of deployment of fiber optics. That includes a lot of local currency expenses, because it's not only equipment, but it's basically digging and putting the fiber on the ground. So I cannot say that, from that perspective, we are looking to have these kind of efficiencies. If you look at aggregate capex, probably the split is more or less half FX related and half local cost.

But the way to see that we're going to invest a little bit more is that we see opportunities in the market, so in some markets, and that's the reason. Opportunities means more revenue and more customers and better ARPUs. more penetration. So those are the things that we're also looking to, and the reason why we want to bring forward part of the capital. It's you.

Okay, makes a lot of sense. Thank you. Just next kind of final question, just on Mexican wirelessly on Telcel, obviously the business continues to perform well, but I think you haven't actually lifted prices um, since perhaps 2021. So I was just curious, what are your thoughts on the potential to, to move up prices in that market? Thank you.

Yeah, well, at this moment, we're not thinking to increase prices in Mexico. I think we're doing well. People is consuming and people is, uh, jumping to better plants. Uh, they are, uh, growing and, uh, We're not thinking to increase prices in Mexico at this moment, so.

Okay. That's super helpful. Thank you. Thank you.

Our next question comes from Carlos Licareta from . Your line is open.

Thank you. Good morning. Just two quick ones, please. The first one, going back to buybacks, please. It caught my attention that the share buyback fund that you approved this year is lower in both absolute and relative terms as compared to the past couple of years. Just wondering what's behind that. And secondly, if you could provide an update of the timing of the tower spin in Europe, that would be fantastic.

Thank you. I think I have explained this more, Carlos, in a previous question. But I said it's only one hand. The first quarter is one when we have a seasonal more, you know, less cash flow because basically we pay handsets in the first quarter. We sold in the last quarter of the five years. We typically, all of the handsets sold in the last quarter of a given year are actually paid in the first quarter of the next year. So that's a big draw on our working capital. And there's a lot of the capex, which was not the same in 22 and 21. In the latter part of the year, the capex that was received, let's say, was accepted towards the second half of the year. It's actually paid in the first quarter. So this is something that has a seasonal impact. The other thing is what Daniel was mentioning regarding CAPEX. To the extent that we are looking at increasing our CAPEX for the year between 4% to 5% relative to what was our initial budget, which is in line with the $8 billion per year plan that we mentioned and I will invest today for two years. They're basically moving, bringing forward part of our next year's CAPEX to be here so that we can move faster with various issues having to do with connectivity, and that has to do a lot with putting fiber in the ground.

And on the tower spin-off in Austria?

I think we are shooting for the third quarter. I think it's going to be towards the end of August. That's what we are aiming for. I think that we have already received, practically with one exception, all of the necessary approvals. And we are already working on the financing, which, by the way, I can say that we have received two investment grade ratings. So we are going to be previewing this to market in the next few weeks.

Thank you. As usual, I appreciate your answers, Carlos.

Thank you, Carlos.

Our next question comes from Luca Brendem from Bank of America. Your line is open.

Hi, good afternoon, everyone. Also, two questions here from my side related to Mexican broadband. Looking at the fourth quarter, you had disconnections in broadband, and now you had very strong connections. So I just wanted to know if there was some sort of adjustment on a quarter-over-quarter basis, or if those were just regular connections, and if this is a trend that should continue going forward. And then my second question is also related to Max and Broadbent, but on pricing, how are you seeing the dynamics for the year if there is space to hike prices, especially now considering that most of the base is now going to fiber and you are always expanding your fiber penetration within the base? Thank you.

Yeah, well, the first one is that we were putting a lot of resources in customer retention. So we've been reducing the churn. And secondly, we launched a new offering in the marketplace. It's a great, great product. It's a 200 megabits symmetrical with fiber, a very, very good price. So that helped us on the first quarter. And I think that we will continue in the next quarter because we will be focused on customer retention, improve the installation process, and improve the repair processes across all the company. And we have a new offering as well. We have bundled one of the largest streaming platforms in our broadband, a very good price with this platform. It's based, you know, in advertising revenue, so the price of the streaming is very good, and I think we will get a good penetration of those products in the market.

This concludes our Q&A. I'll now hand back to Mr. Daniel Hash for any closing remarks.

Well, just want to thank you, everybody, for being in the call. And Daniela, Carlos, and Oscar, thank you very much. Thank you. Bye-bye.

This concludes today's conference call. You may now disconnect.