AMX

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 América Móvil First Quarter 2026 Conference Call and webcast. [Operator Instructions] I will now turn the call over to Ms. Daniela Lecuona, Head of Investor Relations.

Good morning. Thank you all for joining us today to discuss our first quarter of 2026 financial and operating report. We have today on the line Mr. Daniel Hajj, our CEO; Mr. Oscar Von Hauske, our COO; and Mr. Carlos Jose 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, Daniel. Good morning, everyone. Well, the downward trend on short-term dollar interest rates following the 25 basis points rate reduction of the policy rate by the Fed in 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 other currencies, including those in our region of operations declined throughout the first part of the quarter with the dollar falling 4.3% versus the Mexican peso, 3% versus the Chilean peso and 6.4% versus the Brazilian real by the end of February. With the major exception of the latter, 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 close of the quarter with investors eyeing both a slowdown in the pace of economic activity possibly even a recession and higher inflation rates. In this context, in the first quarter, we continue to observe a trend towards an acceleration of both postpaid subscriber growth and that of broadband accesses, as you can see in the slide. The base increased 8.8% and 6%, respectively, vis-a-vis the year earlier quarter. First quarter revenue was up 2.1% in Mexican peso terms to MXN 237 billion, with service revenue up 0.6%, equipment revenue 7.4% and other revenue 108%, including the proceeds of a favorable ruling in Chile on account of a dispute around certain TV rights. EBITDA increased at nearly twice the pace as revenue at 3.8% this year in Mexican peso. The figures cited above reflect the appreciation of Mexican peso versus practically all other currencies in our region of operations, having gained 16% versus the dollar 4.6% versus the euro, 4.5% versus the Brazilian real and 2.5% versus the Colombian peso with respect to the same period of 2025. So major appreciation of the peso first quarter of '26 vis-a-vis first quarter of '25. At constant exchange rates, revenue rose 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 proceeds 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 led our consolidated EBITDA margin to reach 40%, one of our highest margins that we've seen. At 6.4% year-on-year, a similar pace over the last several quarters, mobile service revenue growth has remained resilient with postpaid revenue growth at 7.3% and prepaid revenue at 5%, having expanded faster quarter after quarter over the last year. Mobile service 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 fixed line platform, service revenue growth was up 1.7% in the first quarter. Some regions, in particular, Eastern Europe, Central America, Peru and Ecuador registered very rapid growth driven by residential demand. As regards to our operating profit, it came in at MXN 50.5 billion, was up 12% in Mexican peso terms, while our comprehensive financing costs declined 9.9%, reflecting lower net interest expenses. These concepts brought about a 25% increase in our net income to MXN 23.4 billion, which was equivalent to MXN 0.39 per share and $0.44 per ADR. Our financial debt reached MXN 527 billion at the end of March, having increased by MXN 2.5 billion versus the one outstanding at the close of December. But this means that our net debt for the period at the end of March stood at MXN 437 billion and was equivalent to 1.41x EBITDA after leases. Our cash flow in the first quarter allowed us to cover MXN 21.6 billion in CapEx, MXN 1.4 billion in share buybacks, MXN 1.5 billion in labor obligations and further to reduce our net debt by MXN 1 billion, okay? So that you can see here in the slide. So with that, I thank you for listening to the presentation, and I will pass the floor back to Daniel for Q&A.

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

[Operator Instructions] Your first question comes from the line of Leonardo Olmos with UBS.

Congrats on the results. I got a couple of questions here. The first on capital allocation and buybacks. With the reduction of net debt to EBITDA to 1.4, how should we think about the balance between continued deleveraging and a more visible acceleration in 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 FX 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, which -- how is going to impact your free cash flow concerning, I mean, the actual payments of the M&A? That's it.

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 going to be more opportunities on that. So as you said, we need to have a good balance between buybacks, between deleverage 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 in -- or faster than where we are. So that's where we are, and that's the balance that we have. Carlos was 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 -- we are increasing our -- We're increasing to MXN 10,000 million more to have MXN 21,000 million on the fund. We want to buy. We want to buy back more. We want to take the opportunities, and we want to deleverage, 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.

Yes. You answered both of my questions in one answer. Just a quick follow-up. In the past, you used to talk about fiber opportunities in LATAM. 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 speed. 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 this year good opportunities, Leonardo. So we want to take those -- to have a chance to take those opportunities.

Our next question comes from Marcelo Santos at JPMorgan.

I have 2. 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 getting stronger. So just wanted to hear what you plan for CapEx this year and 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.

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. But all overall, what we think and 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.

I think you mentioned on the fixed line business in Argentina that you said the fixed 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 is where we're putting fiber, we're growing, we're putting broadband, we're giving TV and doing quad-play. It's been very good for us. We are growing very good in Argentina. And the only place where it has been difficult for us is Buenos Aires because I think we have permission, but there we don't it's difficult because they don't rent us the telephone posts and they don't allow all the competition to go there and difficult to do it underground. To go underground has been very difficult to do it there, but that's the main reason that we have. 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 the market share of our competitor Telecom buying Telefonica is going to be high. So let's see what is going to happen there.

Your next question comes from Andres Coello of Scotiabank.

Daniel, as you know, Starlink said back in December that the direct-to-cell service is already available or could be available in Mexico. Obviously, users will appreciate that. And I'm wondering if América Móvil could work with Starlink?

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

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

Yes. I think the real direct to sell service, what I understand is going to be on 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 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 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 complement with us. And of course, we are open to do something with them.

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

No, we're not waiting. We're talking with them, but I think the real and the orbits of satellites for cell 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 sell is going to be -- I think they said -- is what they said is I'm not stating, but what they said is going to be in 2027. Of course, they already have -- the new constellation is going to be in 2027, but they already have a constellation that can do the fixed broadband. But we're not waiting to talk with them. We are talking with them and see what opportunities we can have.

[Operator Instructions] Our next question comes from the line of Luca Brendan at Bank of America.

I have 2 from my side here. The first one, can you comment a little on how are you seeing the expansion of your partnership with NuCel? And how relevant it has been for the strong expansion we 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 América Móvil more specifically?

The second question is the announcement in mobile in Mexico, what?

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

They buy -- the purchase from Telefonica, the sale of Telefonica in Mexico...

Yes, yes, that's it.

Okay. Well, I don't know if in Brazil, we are disclosing the numbers of number portability between what we have and what's NuCel. What I can tell you that we have been doing very well. In number portability, we have been gaining number portability for the last 4 years, 3, 4 years, gaining number portability in all the regions with all our competitors. So we have been doing well. And with NuCel we increased that number portability. So that's nothing that we have been doing bad and then with NuCel 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 fixed. 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 NuCel, 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 NuCel. 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 NuCel, now it's 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 in Mexico, I can say that the last years of Telefonica in Mexico has been shrinking a little bit in terms of technology, in terms of infrastructure, in terms of frequencies. So they are -- they start to be like an MVNO of, I think, Altán and the other of AT&T, they are buying that. So there's a good company, a 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 this new buyers, and I don't know if they are going to still do and manage the company as an MVNO or they are going to put infrastructure and buy spectrum and compete. So let's see. Still right now, I don't know what they are going to do.

Our next question comes from the line of Phani Kanumuri from HSBC.

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 1Q '26 compared to 1Q '25. What are the reasons behind the increase in working capital?

Well, on Mexico Mobile, I think we are growing. 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 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 postpaid, the growth rate has been very good for the last 5 quarters. So our ARPU is growing. And we are growing in new customers and this -- and our actual customers are moving to better plans 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 5 quarters, 6 quarters, 4 quarters, the growth of postpaid has been doing good. And in prepaid, I think last year, we had a little bit of slowdown because of 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 2 things to note. One is that we are taking in a bit more inventory. We have been more cautious about availability of supply. 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 certainly Mexico, Brazil are showing very, very strong sales of equipment. 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. 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.

And to add a little bit of what Carlos is saying, we all know that the memory chips has been increasing a lot, the prices. 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. So -- and we don't know if only prices increasing or we're going to have a lack of handsets. So that's why we are taking that decision to increase a little bit our inventories.

Our next question comes from the line of Emilio Fuentes De Leon from GBM.

I have 2 questions regarding Mexico on the operating side. First, regarding the disconnections from the initiative from the digital transformation agency, could you give us a little more color on the nature of these clients? Were they mostly unactive lines? And my second question would be on the broadband side. Given that you're reaching 90% of customers connected through fiber, would this mean that we should expect the net adds to decelerate going forward?

Well, you know that since January 9, 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 going to happen. So I think there's going to be a lot of cleaning 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 going to be registered in the 1st of July. So there's going to be a lot of things. But all overall, it's only number of lines, not money and consumption and -- so for me, I don't know if -- I'm not looking on how many lines or how many new activations because if I activate a lot, but then they churn in the next 3 or 4 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 want, the register. All the new ones has to be registered and all the old ones has to be registered until July 1. So let's see what is going to happen there. But all overall, 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 overall, the important is 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. [Foreign language] The broadband in what way? And what's the reason why the broadband will slow down? What's your second question?

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

Well, still we have -- 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...

93%.

93% of our base is in fiber right now.

We have very good bundles in the market. We recently increased the speed almost 1/3 with the same price. So we -- I think we will continue with a good level of net adds...

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

Our next question comes from David Lopez at New Street Research.

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 has 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 fiber, a large part of its business, does that mean it's going to be harder for your net adds? And the second question on Brazil. I was wondering if you could comment a bit on your plans for price increase this year.

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 just 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 has been working very well, and the product has been very well adopted in the market. So we believe that we will continue with that.

And to talk a little bit about -- I want to do some other comments. I think all overall, América Móvil 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 are increasing in broadband. We're doing much better in postpaid. 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...

In Peru.

No, in Colombia. In Peru, also, things are going okay with us. We have a tough competitor that has a lot of -- sorry, and in Colombia, we advanced 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 adds 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. 5 years ago, we only have 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 CapEx on digitalizing our processes, digital IT and doing that in also in big businesses, we are putting more and more cloud, 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.

Our next question comes from the line of Ernesto Gonzalez with Morgan Stanley.

And I wanted to ask exactly about Colombia, which you were commenting on a moment ago and a few of the other markets where Telefonica 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.

Well, in Colombia, we have been investing 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 are 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. So you need to invest. You need to take the opportunities. But all overall, we think the markets are looking better.

That's really clear. 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 drove the margin improvement? And how sustainable is it?

Well, in fixed, what Oscar is saying is we increased the speeds 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 decrease in revenues in prepaid. And this quarter, we are increasing like 4%, 5% there. So economy is doing better. Customers are consuming more. So all overall, 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 and some processes that give us more knowledge of our customers. So all of that is helping us to perform better in each country.

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

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. It is on May 27. The save-the-date has been sent out, and that we will be sharing details on the agenda soon. We really hope to see you all there. And please don't hesitate to contact the team if you have any questions or need any help with the registration.

And thank you. Thank you very much.

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

Good morning. My name is Hillary, and I will be your conference operator today. At this time, I would like to welcome everyone to the Am�rica M�vil Fourth Quarter 2025 Conference Call. [Operator Instructions] Thank you. I will now turn the call over to Ms. Daniela Lecuona, Head of Investor Relations. Please go ahead.

Thank you so much. Good morning, everyone. Thank you for joining us today to discuss our fourth quarter results. We have today on the line Mr. Daniel Hajj, CEO; Mr. Oscar Von Hauske, COO; and Mr. Carlos Garcia Moreno, CFO. Thank you for joining.

Thank you, Daniela. Welcome, everybody, to Am�rica M�vil Fourth Quarter 2025 report. Carlos is going to make us a summary of the results. Carlos?

Thank you, Daniel. Good morning, everyone. Well, the U.S. government shutdown in effect through the middle of the fourth quarter ended up rising uncertainty about the state of economic activity in the U.S. Not only did it have a direct impact on employment, but on account of the shutdown, several economic indicators generated by government agencies failed to be released at all. On December 10, less than a month after the shutdown ended and with still incomplete economic data, the Fed reduced the policy rate by 25 basis points in the absence of strong inflation pressures and the appearance of a softening economy. The dollar depreciated versus practically all the currencies in our region of operations in the quarter, except for the Brazilian real, the Argentinian peso, but it declined 2.3% versus the Mexican peso, 3.7% versus the Colombian peso and 5.7% versus the Chilean peso, remaining practically flat versus the euro in the quarter. Well, we added 2.5 million wireless subscribers in the quarter, 2.8 million postpaid net gains and 298,000 prepaid losses and ended up December with 331 million wireless subscribers. Our postpaid base was up 8.4% year-on-year. Brazil led the way in terms of postpaid net adds with 644,000 subscribers, followed by Colombia with 276,000, Peru with 148,000 and Mexico with 135,000 postpaid subscribers. Now in the prepaid segment, Mexico contributed 197,000 new subscribers; Argentina, 226,000; and Colombia 224,000, whereas in Brazil and Chile, we had prepaid losses of 381,000 and 315,000 subscribers, respectively. In the fixed line segment, we connected 524,000 broadband accesses, 84,000 in Mexico, 113,000 in Brazil, 57,000 in Argentina and 49,000 in Colombia. PayTV posted a good performance, adding 77,000 units. We disconnected 79,000 voice lines -- land lines. Our access lines exceeded 410 million at the end of December: 331 million were wireless subscribers, 79 million were fixed line RGUs. The growth of our mobile postpaid base and our broadband accesses, which you can see in the chart, our most dynamic business lines have been accelerated over the last quarters with that of postpaid reaching an 8.4% year-on-year increase and broadband access is expanding 5.6%. So these are some of our highest access growth rates in years. Fourth quarter revenue rose 3.4% in Mexican peso terms from a year ago to MXN 245 billion. They were up 6.2% at constant exchange rates with service revenue expanding 5.3%. The difference between the rate of growth in nominal terms versus that at constant exchange rates mainly reflects the 9.6% appreciation relative to the year earlier quarter of the Mexican peso versus the U.S. dollar. The apparent deceleration of service revenue growth, which extends to most revenue categories, stems from the incorporation of our Chilean operation from November 2024. EBITDA was up 4.2% in Mexican peso terms to MXN 95 billion, and it was up 6.9% at constant exchange rates in the year earlier quarter. As was the case over several quarters in 2022, 2024, EBITDA expanded more rapidly than revenue on greater operating leverage. Mobile service revenue growth remained strong at 6.2%, supported by postpaid revenue that was up 7.6%. Prepaid revenue growth maintained the pace in the prior quarter, which was the fastest in at least 5 quarters and with the exceptional developments here in Mexico. As you can see in the next chart, with Mexico accelerating from 2.8% to 3.8% on the back of a strong recovery of private consumption in the country. Fixed line service revenue was up 3.6% year-over-year with fixed broadband revenue increasing 6.4%. The non-Chilean operations were growing faster over the last couple of quarters, which you can see in the dotted green line. Mexico performed well with broadband revenue growth rising from 2% to really 4%. Our operating profit totaled MXN 49 billion. It was up 5.9% in nominal terms and 8.3% at constant exchange rates. While our comprehensive financing costs were roughly half those of the year earlier quarter, this resulted in a net profit of MXN 19 billion in the quarter, which was 4x larger than that of a year before. It was equivalent to MXN 0.32 per share or $0.35 per ADR. Our operating cash flow for the year 2025 came in at MXN 213 billion after deducting from our EBITDA after leases, MXN 16 billion increase in working capital and MXN 82 billion in interest payments and taxes. After CapEx in the amount of MXN 131 billion, we were left with a free cash flow of MXN 82 billion. The latter figure represents a nearly 40% year-on-year increase in our free cash flow. Shareholder distributions reached MXN 45 billion, including MXN 12 billion in share buybacks, even as we reduced our net debt in cash flow terms by MXN 20 billion. At the end of the year, our net debt to EBITDA after leases ratio stood at 1.52x and was on a downward trend. So with this, I will pass the floor back to Daniel Hajj, and we will begin the Q&A session. Thank you.

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

[Operator Instructions] Your first question comes from Marcelo Santos at JPMorgan.

I wanted to inquire about the CapEx outlook for 2026 and coming years. Could you please provide us with an updated view?

Marcelo, what we have been doing is that what we think we are not -- still we're not finalizing the CapEx for this year. But our target is to be around 14% to 15% revenues. That is what we have been saying and it's what we're going to do. That's maybe around $6.8 billion to $7 billion. That's what I mean, and that's what we're targeting to do. So we are going to be in those range. We still does not finalize all the countries, but we're looking to have around that number.

Okay. As a follow-up, going forward, is it reasonable to assume a similar percentage of revenues for the coming years? I know you have not finalized, but just conceptually, does it make sense?

Yes, this is what we think. The next 3 years, let's say, 2, 3 years, yes, we can assume that we can have between 14% to 15%, MXN 7 billion, MXN 6.8 billion, MXN 7.1 billion, depending on spectrum, depending on a lot of things that are coming, but that's more or less what we're thinking.

Your next question comes from Rog�rio Ara�jo.

I have one on, there is a line called pretax nonoperating expenses. It came at MXN 7.9 billion this quarter. This is well above the quarterly average of MXN 700 million in the past couple of years. So could you please remind what anchors exactly in this line? What did impact it this quarter? And also what to expect going forward?

In which line you said?

In nonoperating expenses...

It's within financial results, it's called other pretax nonoperating expenses.

The other financial expenses. We don't have it right now, but if you can talk to Daniela, we can give you the detail on what was the difference between the 4.9% to 7.8% this year -- this quarter.

Okay. No worries. I will. Can I follow up with another question as there was no answer on this one?

Yes, please.

Okay. Could you comment on Telefonica's announced sale of its operations in Chile, why Am�rica M�vil and Entel ended up stepping out of the deal and any early expectation of the expected competitive environment in the country with Millicom and French buying these assets? If you could also comment on potential consolidation movements across Latin America as well, if there is anything active, and expectations for consolidation in the near future? Anything you can share would be great.

Well, you know that we were going together with Entel to do a bid for Telefonica. We review and we decide not -- in Am�rica M�vil, we decide no go -- finalize and don't go together with Entel. So that's -- I think then I don't know if Entel decides to go alone or not. Then it was one. The other one that I heard that it was interested and then Millicom. Finally, Millicom is the one who win. I think we still have a lot of things to do in our company inside Chile. We are doing okay. We're gaining revenues. We're gaining market share. We are doing all the investments that we need, all the synergies that we need. So we still think that we're going to be a very strong and good competitor in Chile. For us, it doesn't change a lot because we're changing as a competitor landscape, it will be very good to consolidate the market. But at the end of the day, Millicom is a new entrant. So it doesn't change anything having Telefonica and to change to Millicom. Let's see. I hope that in the future, we can consolidate the market in Chile, not only in the wireless, also in the fixed. And let's see, Chile will be important to be consolidated. For us, why we were out, it was going to be a little bit complex because regulation, the split of the company, high leverage of the company, a lot of things that was going to be difficult to decide between ENTEL and us and then the value of Telefonica. So it was not an easy deal, and that's why we decided to quit and to stay where we are. But I think it's that Chile is a difficult market. Of course, it's a difficult market, but we are preparing and we're making all the investments and that we need to do to be competitive there. And as I said, hope that in the future, the market in Chile can consolidate.

Your next question comes from Gustavo Farias from UBS.

I'd like to hear some thoughts on capital allocation. So given the strong growth in free cash flow, and we also saw a slowdown in share buybacks lately. So how are you thinking about capital allocation going forward?

Well, I think as -- Carlos said 2 things, we do very good growth in the free cash flow. We grow around 40% in the free cash flow. But he also said that we -- the target that we have, and always, we're saying that the target on debt-to-EBITDA will be around 1.3 to 1.5x debt to EBITDA. So we are a little bit above. So well, when you said we are reducing, I don't know if you are saying we are reducing in 2026 or will reduce from 2025. But it's important. We have a target on leverage, and we want to be on our target. So that's one thing. So the excess and the cash flow that we have, we're going to put it on reducing debt. Second, we have some M&A, as we said, we used to have Telefonica in Chile. We are not there, but we still have Desktop in Brazil. And we want to be financially healthy because we are not looking on M&A in other regions or material ones. No, we're not doing and looking on anything on that. But in our region where we operate, I think there's going to be consolidation in the market, and we want to be prepared to consolidate, let's say, small companies or fiber, small fiber companies. So there will be a lot of things. The competitive landscape in Latin America is changing. We're having new competitors. Small ones are getting out. I hope -- new ones coming. So there's going to be a lot of things through the next year or 2 years. And we want to be prepared. We want to be healthy, and we want to be on target, okay? Because as we said, the target is 1.3x to 1.5x. We are a little bit slightly above on that. So what we want is to be on target and use the cash flow for that and also to return for the shareholders and will be on buybacks and dividends. So that's mainly what we are going to do on the free cash flow that we have, nothing else. And as I said, we don't have or we are not looking on going to other countries -- outside of our region to do material things, no, because I read something this morning. So we are not thinking on doing nothing on that, only to be prepared to have opportunities. I think we're going to have some opportunities in the region that we have. That's what we have. So reducing debt and more opportunities.

Sorry, just to follow up on what Daniel has said, it's important to note that we, at the end of the quarter, we're still at a little bit marginally higher than the 1.5x net debt-to-EBITDA ratio that we have as our upper limit, even though we paid down debt by MXN 20 billion, okay, a bit more than $1 billion throughout the year. So we did devote some small amount of cash to a reduction of debt to remain within the limits that we have told the market, guided the market for the last 5 years. I mean these are not new limits.

Yes. Very clear. Just a quick follow-up, if I may. So considering what you just said and considering that the consolidation in Chile is now out of the table. Is it fair to assume that any, let's say, cash flow that would be directed to M&A in Chile is now redirected towards deleveraging?

Towards what?

[indiscernible]

Well, as we said -- yes, for -- if we don't have anything else in M&A, of course, we're going to do through leverage. And if we have an opportunity, then we're going to do something there. So that's -- we don't have something. We are looking for a lot of things, small things in Latin America where we are. And if not, then we're going to do leverage and be in the lower range of our target to be prepared for opportunities. That's what we have.

[Operator Instructions] Our next question comes from Cesar Medina at Morgan Stanley.

How should we think of the impact of FX on your overall results? And I'm asking because the Mexican peso strength is very visible and you're exposed to different currencies and your CapEx and debt also has sort of hard currency exposure. In net, how should we think of the impact on the cash flow?

I think, as you say, this is a company that has many operating exchange rates in our revenue. And then we also have very different exchange rates on our debt. So what we were talking about a little while ago in terms of the leverage ratio, that's something that tends to move both because the EBITDA flows move in terms of, say, if you measure them in dollars or pesos, whatever. But also the net debt itself also moves a lot in terms of dollars or peso precisely because we have all of these currencies. So yes, it becomes a bit complex to manage these issues. And that's why we always highlight here in the report how we are doing at constant exchange rates because we need to take out all of the noise that is created by the exchange rates. But yes, I think net-net, I think that we have a clear idea of how we manage the company. I think in terms of financial exposure, we manage our exposure to currencies. So we really have exposure only to 3 currencies for the most part, 3, 4 currencies. And in terms of the operating cash flows, well, that obviously has to do with -- there's nothing we do in that respect. There's nothing that we do in terms of hedging cash flows. That's something that just comes up as cities. And this is why for us, it's always -- going back to what we were saying in the prior question, we need to balance the -- on the one hand, the desire to do distributions, share buybacks and also the need to adjust our leverage ratio by paying down some debt. And again, this is something that we cannot predict exactly from the beginning because it has to do a lot with where the exchange rates are. And you can see them as noise at some point, but also they are a reality. They are there. I mean we are going to be measuring our net debt to EBITDA, which we measure with the rating agencies, that we measure with you every time that we publicly report, well, we need to be consistent with what we are doing. So balancing share buybacks, balancing CapEx, balancing the net leverage that we have. That's...

Exactly what Carlos is saying is a balance, a balance between the capital allocation. It will be reducing our leverage, returning to the shareholders via buybacks or dividends and be healthy to be prepared if there's something in our regions that will come as an opportunity. So these 3 things we're going to balance through all this year to be okay. So that's mainly what we're talking on the capital allocation.

Your next question comes from Alejandro Azar from GBM

This is just on the consolidation that we are seeing all over Latin America, Colombia, Chile, Brazil, there's even rumors on fixed players in Mexico being interested in AT&T. So my question is, how do you see the regulatory environment for AMX as it seems that we are moving to a tighter market with 2, 3 players. Do you think we should see in 5 years, 10 years, less regulatory or less asymmetric regulation where AMX currently has one?

Well, the only place where we have asymmetric regulation is in Mexico, all the other places, we don't have any, let's say, asymmetric regulation in all the other 20 countries that we operate, we don't have any asymmetric regulation. It's only in Mexico. What -- your question is how I see in 3, 4 years is exactly what we're saying. I see more consolidation in all these markets. And I think it's going to be good for the business to consolidate more or less. I think like not only in mobile, but in fixed, maybe 5 years or 6 years ago, there's a lot of companies putting fiber, giving the in a lot of countries, fiber plus very aggressive promotions. I'm not seeing any more these companies putting fiber. There are still companies that they are doing, more competitors, but no new ones doing that. So they are seeing that the business, it's not as easy as it looks. And so we don't -- we are not seeing new competitors, let's say, in terms of fiber. Then the other ones, maybe they are going to consolidate between them or they are going to consolidate with other ones. So there's going to be a new landscape in Latin America, and I think that's going to be good for us and for all the people who are staying here that's staying in Latin America. In Mexico, what you say rumors about AT&T? Well, they are rumors. The only thing that I can say is that AT&T is a very strong competitor. And if they sell to other ones, there are going to be also strong competitors. So nothing to say. So what we need is to do our job to to have the best 5G network, the best quality, customer care, everything systems, IT, AI and to do everything that we are doing, all the investments that we need to do to compete against or still AT&T here or if they sell to the other one. So we -- that's what -- exactly what I said in Chile. In Chile, we used to have a Telefonica competitor. Today, it's not going to be Telefonica. It's a pity that we cannot consolidate this market because this market will be good to consolidate, but it's going to stay more or less the same with 4 competitors in mobile and the same in fixed. So let's see and see if in the future, we can consolidate that market. So that's what -- yes.

Alejandro, as Daniel is saying, I mean, I do believe that you can see that there's very much of a wave of consolidation happening in the world. You look at Europe, there used to be many more players in each one of the countries, there's been a reduction. And this basically has to do with the dynamics of the industry. This industry requires scale to get the returns for the investment. And when you have a very fragmented market, there's no returns and no investment. And typically, players end up probably not in the best of shapes. So I think that this is an issue that is more and more taken into account by regulators and generally governments worldwide.

Your next question comes from Marcelo Santos at JPMorgan.

I just wanted to use this opportunity to ask about the Brazilian number portability. You mentioned in your release like that Brazil is seeing sustained customer preference as evidenced by positive number portability trends, which indeed has been very strong and stronger than usual. My question is, is this portability that has been stronger mostly explained by NuCel, which you have the MVNO? Or is it mostly explained by your like Paro operation in Brazil? Just wanted to see what's driving this strong portability, which we also see using the data.

I think they are both, okay? There's no doubt that NuCel is helping us in number portability, and we're doing very good with them. But in the other side, we are doing strong, and we have been growing more on revenues than our competitors in Brazil. And I think that's good number portability plus new subscribers, we are doing okay. And the other thing that I'm seeing is that we are getting also very good ARPU subscribers. So we are not only in the prepaid or in the low end, we are getting also good high-end subscribers. So it's been good. That's what I can say. There is no doubt that NuCel is helping us, but it's not only NuCel. There's all the things that we have on the back of that, that is doing -- that we have been doing that. We have been always gaining number portability through the year. And in the fourth quarter, we get a strong because NuCel. So it's been good, and we are a little bit more good, a little bit more better than what we used to be. This is what I can tell you.

So just to clarify, the jump we saw in the fourth quarter, that would be attributed to sales. You were having very good portability across the year. That's Claro, but the change we saw in more recent months, that would be NuCel.

Part not all, but part could be -- yes, part could be NuCel, but not all is NuCel. Also it's fourth quarter. Fourth quarter, a lot of people is changing. There's new handsets that people want to change for handsets or they want to do promotions. So there's a lot of things.

Your next question comes from Emilio Fuentes at GBM.

I'm wondering, given the stellar net adds you have had in broadband in Mexico, the recent quarters, how sustainable do you see this performance going forward, specifically as we reach a higher penetration for this service in the market?

Yes. We see a good trend on net adds within the last 4 quarters in fixed broadband in Mexico. We have very good promotions in the market that the customers have received very well. The bundles with streaming increasing the speed. So we see the same trend through the year through this year, right? So we see the bundles are working pretty good with the streaming video platforms and the speeds that we've been delivering to the market are really good. We have 92% of the customers already with fiber. So we believe that we will retain the customers. We believe the trend will be more or less the same.

There are no further questions at this time. I will now turn the call back to Mr. Daniel Hajj for closing remarks.

Well, to thank everyone for being in the call. And thank you, Carlos, Daniela, Oscar. Thank you very much.

Thank you all.

Bye-bye.