UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF A FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of April, 2023

Commission File Number: 1-16269

 

 

AMÉRICA MÓVIL, S.A.B. DE C.V.

(Exact Name of the Registrant as Specified in the Charter)

America Mobile

(Translation of Registrant’s Name into English)

 

 

Lago Zurich 245

Plaza Carso / Edificio Telcel, Piso 16

Colonia Ampliación Granada, Miguel Hidalgo

11529 Mexico City, Mexico

(Address of Principal Executive Office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 

Exhibit A

América Móvil’s first quarter of 2023 financial and operating report

April 25^th, 2023 / 1Q23

Mexico City - América Móvil, S.A.B. de C.V. (“América Móvil”) [BMV: AMX] [NYSE: AMX, AMOV], announced today its financial and operating results for the first quarter of 2023.

 

 

 

•

We added 1.1 million wireless subscribers in the first quarter, including 1.9 million postpaid clients over half of which came from Brazil, 944 thousand, 285 thousand from Austria, 164 thousand from Colombia and 128 thousand from Peru.

 

•

In the prepaid segment we had net disconnections of 754 thousand subscribers as Brazil disconnected 1.4 million, including 1.6 million former Oi subs. Colombia contributed with 354 thousand net adds, Argentina 190 thousand and Central America and Ecuador with 110 thousand each.

 

•

On the fixed-line platform we obtained 313 thousand broadband accesses, including 139 thousand in Mexico, 74 thousand in Argentina and 47 thousand in Brazil.

 

•

First quarter revenue of 208.9 billion pesos was up 1.7% year-on-year in nominal peso terms, with service revenue declining 2.2%. At constant exchange rates service revenue was up 6.3% year-on-year.

 

•

Fixed-line service revenue increased 1.8% at constant exchange rates, its best performance in over a year. The improvement of fixed-line service revenue growth was driven mostly by Mexico, Brazil and Colombia.

 

•

Mobile service revenue was up 9.3% year-on-year at constant exchange rates with prepaid revenue rising 8.2% and postpaid revenue 9.9%.

 

•

EBITDA came in at 82.7 billion pesos, 3.2% more than a year before in nominal peso terms. At constant exchange rates, EBITDA was up 12.6% year-on-year. Adjusting for extraordinary items, it rose 5.8%.

 

•

Our operating profit increased 9.7% to 44.1 billion pesos which helped bring about a net profit of 30.1 billion pesos, slightly down, -2.1%, from the year-earlier quarter, since we obtained lower foreign exchange gains.

 

•

Our capital expenditures totaled 29.2 billion pesos, with share buybacks amounting to 1.9 billion pesos. Our outflows were funded by our operating cash flow, by net borrowings of 2.4 billion pesos and the freeing-up of 5.9 billion pesos in assets formerly invested in our pension funds.

 

•

Our net debt excluding leases totaled 365.1 billion pesos at the end of March, having come down by 16.4 billion pesos from the end-of-December figure. It was equivalent to 1.39 times LTM EBITDAaL.

América Móvil Fundamentals
		1Q23				1Q22
Earnings per Share (Mex$) (1)			0.48				0.48
Earning per ADR (US$) (2)			0.51				0.47
EBITDA per Share (Mex$) (3)			1.31				1.24
EBITDA per ADR (US$)			1.40				1.21
Net Income (millions of Mex$)			30,146				30,797
Average Shares Outstanding (billion)			63.3				64.5
Shares Outstanding End of Period (billion)			63.2				64.2

 

(1)	Net Income / Average Shares Outstanding

(2)	20 shares per ADR

(3)	EBITDA / Average Shares Outstanding

 

América Móvil’s Subsidiaries as of March 2023
Country		Brand		Main Activity		Equity
Mexico		Telcel		wireless			100.0%
		Telmex		wireline			98.8%
Argentina		Claro		wireless			100.0%
Brazil		Claro		wireless/wireline			99.6%
Colombia		Claro		wireless/wireline			99.4%
Costa Rica		Claro		wireless/wireline			100.0%
Dominicana		Claro		wireless/wireline			100.0%
Ecuador		Claro		wireless/wireline			100.0%
El Salvador		Claro		wireless/wireline			95.8%
Guatemala		Claro		wireless/wireline			99.3%
Honduras		Claro		wireless/wireline			100.0%
Nicaragua		Claro		wireless/wireline			99.6%
Paraguay		Claro		wireless/wireline			100.0%
Peru		Claro		wireless/wireline			100.0%
Puerto Rico		Claro		wireless/wireline			100.0%
Uruguay		Claro		wireless/wireline			100.0%
Netherlands		KPN		wireless/wireline			17.2%
Austria		A1		wireless/wireline			51.0%

Note

Upon its sale in July 2022 Claro Panama became a discontinued operation. Claro Chile did so as well upon the establishment of the joint venture with Liberty Latin America in October 2022. The financial statements presented in this report account for those operations as discontinued operations.

The reported figures for Argentina corresponding to the first quarter of 2023 are presented in accordance with IAS29 reflecting the effects of inflationary accounting as the Argentinean economy is deemed to be hyperinflationary. All comparisons at constant exchange rates for America Movil’s consolidated figures will exclude Argentina to ensure consistency.

Relevant Events

América Móvil extends Telekom Austria’s shareholders agreement

On February 6^th we entered into an agreement with Österreichische Beteiligungs AG (“OBAG”), with respect to Telekom Austria AG. This agreement extends AMX and OBAG´s partnership in Telekom Austria AG for a new 10-year term, under the leadership and control of AMX.

AMX and OBAG have agreed to support the spin-off of the mobile towers owned by Telekom Austria in most of the countries in which it operates including Austria. The tower spin-off will enable a more efficient capital allocation and will provide Telekom Austria with greater financial capacity to execute its investment plans.

América Móvil converts its stock into a single series

On March 16^th we converted our stock into a single series of ordinary shares with full voting rights. This action was approved by an extraordinary shareholders assembly in December 2022.

Buyback program of MXP 20Bn

On April 14^th our shareholders approved a share-buyback fund in the amount of 20 billion pesos for the April 2023-April 2024 period.

América Móvil issued bonds

On March 23^rd we issued bonds in the Mexican market in three tranches totaling 12.4 billion pesos. These included a five year fixed-rate peso bond with a principal amount of 11.0 billion pesos and a 9.35% coupon.

Access Lines

1.1M wireless net adds

In the first quarter we added 1.1 million wireless subscribers of which 1.9 million were postpaid clients. Almost half of the new postpaid subs, 944 thousand, came from Brazil, 285 thousand from Austria, 164 thousand from Colombia and 128 thousand from Peru.

On our prepaid platform we had net disconnections of 754 thousand clients in the first quarter as Brazil disconnected 1.4 million, including 1.6 million former Oi subs that were not generating traffic. In other countries we had solid growth, including Colombia with 354 thousand, Argentina with 190 thousand and Central America and Ecuador with 110 thousand each.

313k new broadband accesses

On the fixed-line segment we obtained 313 thousand broadband accesses including 139 thousand in Mexico, 74 thousand in Argentina and 47 thousand in Brazil. Voice access lines and PayTV units came down by 115 thousand and 68 thousand, respectively, in the quarter.

At the end of March we had 301 million wireless subscribers, of which 116 million were postpaid clients, and 73 million fixed-line RGUs, including 31 million broadband accesses, 13 million Pay TV clients and 29 million land-lines. Our postpaid base increased 8.7% year-on-year, with prepaid expanding 5.6%, fixed-broadband 2.6% and PayTV practically flat.

 

Wireless subscribers as of March 2023
Total(1) (Thousands)
Country			Mar ’23				Dec ’22				Var.%				Mar ’22				Var.%
Argentina, Paraguay and Uruguay			27,178				26,915				1.0%				26,463				2.7%
Austria			9,250				8,973				3.1%				8,084				14.4%
Brazil			82,844				83,260				-0.5%				71,804				15.4%
Central America			16,845				16,673				1.0%				16,024				5.1%
Caribbean			7,410				7,345				0.9%				7,143				3.7%
Colombia			38,068				37,550				1.4%				35,710				6.6%
Eastern Europe			14,867				14,924				-0.4%				14,837				0.2%
Ecuador			9,163				9,028				1.5%				8,747				4.8%
Mexico			82,982				82,851				0.2%				80,990				2.5%
Peru			12,347				12,338				0.1%				12,066				2.3%
Total Wireless Lines			300,952				299,856				0.4%				281,867				6.8%

 

(1)	Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated.

 

Fixed-Line and Other Accesses (RGUs) as of March 2023
Total(1) (Thousands)
Country			Mar ’23				Dec ’22				Var.%				Mar ’22				Var.%
Argentina, Paraguay and Uruguay			3,055				2,865				6.6%				2,183				39.9%
Austria			2,917				2,946				-1.0%				3,019				-3.4%
Brazil(2)			23,889				24,136				-1.0%				24,991				-4.4%
Central America			4,700				4,624				1.7%				4,444				5.8%
Caribbean			2,734				2,774				-1.4%				2,639				3.6%
Colombia			9,263				9,248				0.2%				9,003				2.9%
Eastern Europe			3,304				3,258				1.4%				3,055				8.1%
Ecuador			623				614				1.4%				560				11.3%
Mexico			20,944				20,824				0.6%				21,361				-2.0%
Peru			1,985				1,994				-0.5%				1,931				2.8%
Total RGUs			73,413				73,283				0.2%				73,186				0.3%

 

(1)	Fixed Line, Broadband and Television (Cable & DTH).

(2)	The number of Pay TV units has been adjusted to the criteria by which we report to the local regulator.

América Móvil Consolidated Results

Throughout the first quarter dollar interest rates remained volatile, hovering between 3.40% and 4.00%, as 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 currencies vis-à-vis the U.S. dollar reflected this volatility, although they all ended up appreciating vs. the dollar in the period (the Argentinean peso being the only exception): the Mexican peso, 7.5%; the Brazilian real, 4.1%; the Colombian peso, 4.7%; and the euro, 1.2%.

Revenue was up 1.7% in the quarter to 208.9 billion pesos, with service revenue declining 2.2% in Mexican peso terms on account of the appreciation of the Mexican peso vs. substantially all our other operating currencies, which reduced the peso value of our international revenue. Correcting for foreign exchange effects, service revenue was up 6.3%, a slightly faster pace than in the prior quarter.

On the fixed-line platform service revenue growth came in at 1.8% at constant exchange rates, its best performance in over a year on the back of a strong expansion of broadband revenue, 9.6%. On the mobile platform revenue grew 9.3%. Mobile service revenue accounted for 62% of total service revenue.

The improvement of fixed-line service revenue growth was driven mostly by Mexico, Brazil and Colombia, jumping to 4.1% from -1.3% the prior quarter in Mexico; to -1.4% from -3.5% in Brazil; and to 4.2% from -3.6% in Colombia. The latter reflect a marked acceleration of fixed-broadband revenue, to -1.3% from -12.9% in the fourth quarter. Corporate networks revenue increased 12.1% in the first quarter, up from 10.5% in the precedent period.

With respect to mobile service revenue, the deceleration reflects the slowdown observed in Colombia and Austria, with the pace of growth being reduced to 2.2% from 4.7% the preceding quarter in Colombia; and to 3.0% from 4.9% in Austria.

EBITDA totaled 82.7 billion pesos in the quarter; it was up 3.2% in Mexican peso terms and 12.6% at constant exchange rates. These figures include the profits obtained from the sale of telecommunication towers in the Dominican Republic and Peru. Adjusting for these profits, EBITDA decreased -2.5% in Mexican peso terms but rose 5.8% at constant exchange rates.

We turned an operating profit of 44.1 billion pesos in the quarter, up 9.7% year-on-year, which helped bring about a 30.1 billion pesos net profit in the quarter, slightly down -2.1% from the year-earlier quarter. The decline in net income had mostly to do with a reduction in foreign exchange gains, down from 22.5 billion pesos in the first quarter of 2022 to 13.7 billion pesos in the first quarter of this year.

Capital expenditures totaled 29.2 billion pesos in the quarter, with share buybacks amounting to 1.9 billion pesos. These items were funded by our operating cash flow, net borrowings of 2.4 billion pesos and the freeing-up of 5.9 billion pesos in assets formerly invested in our pension funds. Our operating cash flow was supported by the sale of towers in the Dominican Republic and Peru that provided 6.4 billion pesos. Dividend income of 0.7 billion pesos also contributed to the funding of our capital outlays.

Our net debt excluding leases totaled 365.1 billion pesos at the end of March, having come down by 16.4 billion pesos from the end-of-December figure. It was equivalent to 1.39 times LTM EBITDAaL.

América Móvil’s Income Statement Proforma(1) Millions of Mexican pesos
			1Q23				1Q22				Var.%
Service Revenue			169,053				172,849				-2.2%
Equipment Revenue			31,233				30,584				2.1%
Total Revenue(2)			208,926				205,493				1.7%
Cost of Service			51,824				54,087				-4.2%
Cost of Equipment			27,646				26,362				4.9%
Selling, General & Administrative Expenses			43,957				44,215				-0.6%
Others			2,790				703				297.0%
Total Costs and Expenses			126,218				125,367				0.7%
EBITDA			82,708				80,126				3.2%
% of Total Revenue			39.6%				39.0%
Adjusted EBITDA			78,108				80,126				-2.5%
% of Total Revenue			38.6%				39.0%
Depreciation & Amortization			38,583				39,912				-3.3%
EBIT			44,125				40,214				9.7%
% of Total Revenue			21.1%				19.6%
Net Interest Expenses			8,722				8,858				-1.5%
Other Financial Expenses			4,606				6,238				-26.2%
Foreign Exchange Loss			-13,702				-22,460				39.0%
Comprehensive Financing Cost (Income)			-374				-7,364				94.9%
Income & Deferred Taxes			12,677				15,610				-18.8%
Net Income before Minority Interest and Equity Participation in Results of Affiliates			31,823				31,968				-0.5%
Equity Participation in Results of Affiliates			-583				-16				n.m.
Minority Interest			-1,094				-1,173				6.7%
Net Income from Continued Operations			30,146				30,780				-2.1%
Net Income from Discontinued Operations			0				17				-100.0%
Net Income			30,146				30,797				-2.1%

 

(1)	Adjusted to reflect the sale of Panama and the deconsolidation of Claro Chile on account of the new joint venture.

(2)	Total Revenue include Other Revenue.

n.m.	Not meaningful.

Balance Sheet - América Móvil Consolidated(1) Millions of Mexican Pesos
			Mar ‘23				Dec ‘22				Var.%						Mar ‘23				Dec ‘22				Var.%
Current Assets														Current Liabilities
Cash, Marketable Securities & Other Short Term Investments			130,373				122,129				6.7%			Short Term Debt(2)			173,017				102,024				69.6%
Accounts Receivable			198,372				202,027				-1.8%			Lease-Related Debt			29,494				32,902				-10.4%
Other Current Assets			24,585				12,853				91.3%			Accounts Payable			147,156				165,342				-11.0%
Inventories			23,399				23,995				-2.5%			Other Current Liabilities			215,958				188,608				14.5%
			376,729				361,004				4.4%						565,625				488,877				15.7%
Non Current Assets														Non Current Liabilities
Plant & Equipment, gross			1,242,719				1,335,027				-6.9%			Long Term Debt			332,861				408,565				-18.5%
-Depreciation			617,995				677,801				-8.8%			Lease-Related Debt			102,268				101,247				1.0%
Plant & Equipment, net			624,724				657,226				-4.9%			Other Liabilities			183,316				181,581				1.0%
Rights of Use			120,148				121,874				-1.4%						618,445				691,393				-10.6%
Investments in Affiliates and Other Investments			34,269				30,957				10.7%
Deferred Assets
Goodwill (Net)			138,255				141,121				-2.0%
Intangible Assets			123,504				128,893				-4.2%			Shareholder’s Equity			409,271				437,829				-6.5%
Deferred Assets			175,713				177,024				-0.7%
Total Assets			1,593,341				1,618,099				-1.5%			Total Liabilities and Equity			1,593,341				1,618,099				-1.5%

 

(1)	The spin-off of Sitios Latinoamérica gave rise to 37.0 billion pesos in new lease-related debt and a similar amount in rights of use of tower assets.

(2)	Includes current portion of Long Term Debt.

Mexico

131k net wireless adds and 139k new broadband accesses

In the first quarter we gained 131 thousand wireless subscribers in Mexico, of which 84 thousand were postpaid clients, ending the quarter with 83.0 million subscribers. On the fixed-line platform we added 120 thousand RGUs, including 139 thousand broadband accesses, finishing March with 10.2 million accesses.

Service revenue +6.8% YoY

Our revenue totaled 78.4 billion pesos in the quarter, up 8.4% year-on-year, with service revenue expanding 6.8% on the back of 8.1% growth on the mobile platform and 4.1% on the fixed-line one. The latter represents an important acceleration of revenue growth from the prior year; the previous quarter it had observed a 1.3% annual decline. This acceleration reflects continued improvement on broadband revenue–5.8% vs. 4.1% the prior quarter and 3.1% a year before–and a 15.8% increase on corporate networks revenue stemming from IT solutions such as infrastructure and software as a service.

EBITDA +5.9% YoY

EBITDA came in at 32.1 billion pesos, a 5.9% increase from the year-earlier quarter. The EBITDA margin came in at 40.9% of revenue. We continue to make extraordinary efforts to reduce costs .

We booked 322 thousand net additions from mobile number portability with over 120 cities with 5G coverage.

 

INCOME STATEMENT - Mexico Millions of MxP
		1Q23				1Q22				Var.%
Total Revenue(1)			78,450				72,359				8.4%
Total Service Revenue			61,156				57,269				6.8%
Total Equipment Revenue			15,742				13,806				14.0%
Wireless Revenue			57,601				52,522				9.7%
Service Revenue			41,963				38,834				8.1%
Equipment Revenue			15,638				13,689				14.2%
Fixed Line Revenue			19,296				18,553				4.0%
Service Revenue			19,193				18,435				4.1%
Equipment Revenue			103				117				-12.0%
EBITDA			32,099				30,305				5.9%
% total revenue			40.9%				41.9%
EBIT			23,704				22,391				5.9%
% total revenue			30.2%				30.9%

 

(1)	Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

Mexico Operating Data
		1Q23				1Q22				Var.%
Wireless Subscribers (thousands)			82,982				80,990				2.5%
Postpaid			14,734				14,519				1.5%
Prepaid			68,248				66,471				2.7%
ARPU (MxP)			170				162				5.0%
Churn (%)			3.2%				3.3%				(0.1)
Revenue Generating Units (RGUs)(1)			20,944				21,361				-2.0%
Fixed Lines			10,780				11,261				-4.3%
Broadband			10,164				10,100				0.6%

 

(1)	Fixed Line and Broadband.

Brazil

944k postpaid net adds

We added 944 thousand postpaid subscribers and 200 thousand prepaids in the quarter; for a total of 1.1 million organic net additions. Our wireless base ended March with 82.8 million subs, 15.4% more than a year before. The wireless base already reflects the disconnection of 1.6 millions of former Oi clients that were not generating traffic. This concludes the migration of Oi customers acquired by Claro. On the fixed-line platform we booked positive additions of 47 thousand new broadband accesses, our strongest performance in almost three years, but continued to disconnect PayTV units, 134 thousand in the quarter. Claro leads the fixed-line segment with 23.9 million RGUs.

Service revenue +9.8% on the back of mobile growth of 21.5% YoY

Our first quarter revenue of 11.1 billion reais exceeded by 11.0% that of the year-earlier quarter. Service revenue was up 9.8% to 10.7 billion reais reflecting strong performance of our mobile service revenue, up 21.5%.

Broadband revenue expanded 7.3% YoY

Fixed-line service revenue declined 1.4% in the period–compared to -3.5% the prior quarter–its best showing in at least a year, buoyed by broadband service revenue that expanded 7.3%, also its best showing in several quarters, as Claro reinforced its strategy to deliver the best fixed broadband experience. We have continued to expand our fiber roll-out in our existing footprint and in new cities. Revenue from corporate networks grew 7.7% on the back of managed network solutions, data centers and security solutions.

EBITDA 13.7% YoY

EBITDA in the first quarter was up 13.7% from a year before to 4.6 billion reais; it was equivalent to 41.0% of revenue, representing a one percentage point margin expansion in the period.

Claro recognized as the best “experience in accessibility”

Claro was recognized by Anatel for offering the best “experience in accessibility” in the telecom sector in 2023 and maintained the absolute leadership in the “satisfaction and perceived quality survey” of mobile services carried out by Anatel in 2022.

We increased our 5G coverage to 77 cities and remain the leader in 5G technology according to Anatel; we have also increased our portfolio of digital services, an important driver for ARPU.

 

INCOME STATEMENT - Brazil Millions of BrL
		1Q23				1Q22				Var.%
Total Revenue(1)			11,135				10,031				11.0%
Total Service Revenue			10,655				9,704				9.8%
Wireless Revenue			6,210				5,036				23.3%
Service Revenue			5,749				4,730				21.5%
Equipment Revenue			461				306				50.8%
Fixed Line Revenue			4,905				4,974				-1.4%
EBITDA			4,569				4,019				13.7%
% total revenue			41.0%				40.1%
EBIT			1,527				1,334				14.5%
% total revenue			13.7%				13.3%

 

(1)	Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

Total revenue include other income.

Brazil Operating Data
		1Q23				1Q22				Var.%
Wireless Subscribers (thousands)			82,844				71,804				15.4%
Postpaid			47,898				42,467				12.8%
Prepaid			34,946				29,338				19.1%
ARPU (BrL)			23				22				4.2%
Churn (%)			3.2%				2.9%				0.3
Revenue Generating Units (RGUs)(1)			23,889				24,991				-4.4%

 

(1)	Fixed Line, Broadband and Television. The number of Pay TV units has been adjusted to the criteria by which we report to the local regulator.

Colombia

164k postpaid net adds

We obtained net additions of 518 thousand wireless subs in the first quarter–including 164 thousand postpaid clients–taking our base to 38.1 million wireless subscribers, 6.6% more than a year before. On the fixed-line platform we gained 15 thousand net RGUs, all of them voice-lines, and finished March with 9.3 million RGUs, up 2.9% as compared to March 2022.

Service revenue +3.0% YoY, its best showing in four quarters

First quarter revenue remained unchanged compared to the prior year, even as service revenue expanded 3.0%, its best showing in four quarters. The improvement derives from a 4.2% expansion in fixed-line service revenue partly driven by a 23.5% increase in the corporate networks revenue line associated with long-dated contracts to provide IT services and solutions. PayTV revenue increased 3.2% following the launch in February of Claro TV Plus, a digital PayTV offering that complements our portfolio of entertainment solutions. On the other hand, broadband revenue was down 1.3% in the midst of intense commercial activity.

Mobile service revenue +2.2% YoY

On the mobile platform, service revenue was up 2.2%. Postpaid revenue rose 5.5% partly as a result of prepaid to postpaid migration that resulted in a 4.1% revenue decline in the prepaid segment.

EBITDA down reflecting higher acquisition costs

EBITDA was down 3.7% year-on-year reflecting higher subscriber acquisition costs, but also continued cost pressures from inflation, production index, and currency linked items. Additionally, as a consequence of the tax reform, we began booking as operating expenses certain charges paid to the municipalities where we exercise commercial activity. The EBITDA margin for the period came in at 41.4%, down from 43.0% a year before.

INCOME STATEMENT - Colombia Billions of COP
		1Q23				1Q22				Var.%
Total Revenue(1)			3,738				3,737				0.0%
Total Service Revenue			2,916				2,830				3.0%
Wireless Revenue			2,499				2,543				-1.7%
Service Revenue			1,726				1,688				2.2%
Equipment Revenue			773				855				-9.6%
Fixed Line Revenue			1,212				1,170				3.6%
EBITDA			1,546				1,606				-3.7%
% total revenue			41.4%				43.0%
EBIT			797				971				-17.9%
% total revenue			21.3%				26.0%

 

(1)	Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

 

Colombia Operating Data
		1Q23				1Q22				Var.%
Wireless Subscribers (thousands)(1)			38,068				35,710				6.6%
Postpaid			9,859				9,048				9.0%
Prepaid			28,209				26,662				5.8%
ARPU (COP)			15,329				16,017				-4.3%
Churn (%)			3.2%				4.0%				(0.8)
Revenue Generating Units (RGUs)(2)			9,263				9,003				2.9%

 

(1)	Due to differences in the policy for accounting active subscribers, the figures in this report are different from those published by the Ministry of Communications of Colombia (MinTIC).

 

(2)	Fixed Line, Broadband and Television.

Peru

128k postpaid net adds

We gained 128 thousand postpaid subscribers in the first quarter but disconnected 119 thousand prepaids for a net positive of nine thousand additions that brought our base to 12.3 million wireless clients, 2.3% more than a year before. On the fixed-line platform we added five thousand PayTV subscriptions and three thousand broadband accesses but disconnected 17 thousand voice lines for a total of nearly two million fixed-line RGUs at the end of March, 2.8% more than a year before.

Service revenue +5.4% YoY with mobile revenue growth of 6.3% YoY

First quarter revenue, 2.4 billion Soles, reflects the sale of 2,980 towers to Sitios Latinoamérica for a total of 821 million Peruvian soles. Service revenue increased 5.4% over the year with mobile revenue rising 6.3%. We are offering attractive contract plans as we are seeing a trend from clients wishing to migrate from prepaid to postpaid; for this reason, our postpaid revenue increased 9.7% while the former was down 4.2%. On the fixed-line segment, revenue rose 2.8% with PayTV revenue expanding 11.0%, that of corporate networks 5.7%, and broadband revenue 3.9%.

Adjusted EBITDA +12.9% YoY

EBITDA for the quarter, 1.2 billion soles, reflects the profit on the sale of the towers; adjusting for this, the EBITDA comes in at 578 million soles, up 12.9%, helped along by an improvement in equipment margin and overall cost controls. The EBITDA margin stood at 36.3% of revenue from 32.1% the prior year.

INCOME STATEMENT - Peru Millions of Soles
		1Q23				1Q22				Var.%
Total Revenue(1)			2,414				1,597				51.2%
Total Service Revenue			1,200				1,138				5.4%
Wireless Revenue			1,292				1,302				-0.7%
Service Revenue			904				850				6.3%
Equipment Revenue			388				451				-14.0%
Fixed Line Revenue			296				288				2.8%
EBITDA			1,186				512				131.7%
% total revenue			49.1%				32.1%
Adjusted EBITDA			578				512				12.9%
% total revenue			36.3%				32.1%
EBIT			848				213				297.9%
% total revenue			35.1%				13.3%

 

(1)	Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

 

Peru Operating Data
		1Q23				1Q22				Var.%
Wireless Subscribers (thousands)			12,347				12,066				2.3%
Postpaid			5,764				5,224				10.3%
Prepaid			6,582				6,843				-3.8%
ARPU (Sol)			24				23				4.4%
Churn (%)			4.5%				4.6%				(0.1)
Revenue Generating Units (RGUs)(1)			1,985				1,931				2.8%

 

(1)	Fixed Line, Broadband and Television.

Ecuador

135k wireless net adds

We added 135 thousand mobile clients in the first quarter bringing our base to 9.2 million subscribers. We also gained seven thousand new broadband accesses to reach 623 thousand fixed-line RGUs, 11.3% more than a year before.

Mobile service revenue +3.3% YoY with postpaid up 5.7% YoY

Our first quarter revenue, 259 million dollars, was up 3.8% year-on-year with service revenue rising 3.1%, practically the same as in the prior quarter. Mobile service revenue growth, 3.3%, was slightly faster sequentially; it was supported by postpaid revenue, up 5.7%. Fixed-line service revenue increased 1.6% with broadband revenue up 0.8% and corporate networks revenue rising 17.4%.

EBITDA +6.6% YoY

The period’s EBITDA came in at 124 million dollars. It increased 6.6% twice as fast as service revenue with the EBITDA margin climbing 1.3 percentage points to 47.8% of revenue.

INCOME STATEMENT - Ecuador Millions of Dollars
		1Q23				1Q22				Var.%
Total Revenue(1)			259				249				3.8%
Total Service Revenue			227				220				3.1%
Wireless Revenue			232				222				4.6%
Service Revenue			200				194				3.3%
Equipment Revenue			32				28				13.5%
Fixed Line Revenue			26				27				-3.5%
EBITDA			124				116				6.6%
% total revenue			47.8%				46.5%
EBIT			69				70				-1.1%
% total revenue			26.7%				28.1%

 

(1)	Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

 

Ecuador Operating Data
		1Q23				1Q22				Var.%
Wireless Subscribers (thousands)			9,163				8,747				4.8%
Postpaid			2,229				2,111				5.6%
Prepaid			6,933				6,636				4.5%
ARPU (US$)			7				7				-1.1%
Churn (%)			3.0%				3.1%				(0.1)
Revenue Generating Units (RGUs)(1)			623				560				11.3%

 

(1)	Fixed Line, Broadband and Television.

Argentina

For comparison purposes all comments in this section related to annual variations of the presented period for Argentina refer to figures in constant peso terms, that is, adjusted for inflation in accordance to NIC 29. Information for Uruguay and Paraguay is not presented in the table.

252k wireless net adds and 187k fixed-line new RGUs

We gained 252 thousand mobile subscribers in the first quarter, including 62 thousand contract subs. Our wireless base ended the period with 24.1 million subs, 2.7% more than a year before. On the fixed-line platform we connected 74 thousand new broadband accesses and 41 thousand new IPTV services reaching 2.7 million fixed-line RGUs at the end of March, up 46.5% year-on-year.