Company Overview

América Móvil S.A.B. de C.V. provides comprehensive telecommunications services, encompassing wireless and fixed voice services, including airtime, local, domestic, and international long-distance calls. The company also offers broadband services and is primarily involved in the telecommunications services sector, standing as one of Latin America's leading telecommunications providers. Headquartered in Mexico, it operates across numerous markets, offering a wide array of services crucial for modern connectivity.

Company Operations and Market Position

América Móvil functions as a holding company that delivers a broad spectrum of telecommunications services. Its offerings include mobile and fixed-line voice services, wireless and fixed data services, internet access, pay television, sales of equipment, accessories, and computers, alongside other related services. The company's operational segments span across: Mexico Wireless, Mexico Fixed, Brazil, Colombia, Southern Cone, Andean Region, Central America, the Caribbean, the United States, and Europe.

The company's dominant position within the Mexican wireless market serves as a stable source of cash flow. Simultaneously, its business operations in Brazil present significant upside potential. Furthermore, América Móvil is well-positioned to benefit from the escalating demand for internet access and other data-intensive services throughout Latin America. While this exposure comes with inherent political, regulatory, and economic uncertainties, the company's considerable scale and robust balance sheet are expected to enable it to effectively create shareholder value.

Financial Performance and Market Position

Recent Financial Performance

#### Q3 2024 Results

América Móvil announced its financial and operating results for the third quarter of 2024, which demonstrated continued subscriber growth and solid financial performance. During Q3 2024, América Móvil successfully added 1.8 million subscribers, of which 1.4 million were postpaid customers. Significant contributions to this growth came from operations in Brazil and Colombia.

Key financial metrics for Q3 2024 include:

- Revenue: 223 billion Mexican pesos. Service revenue expanded by 11.3% year-on-year in Mexican peso terms.

- Mobile Service Revenue: Recorded annual growth rates of 5.2% at constant exchange rates, with the postpaid segment showing a growth of 6.3%.

- Fixed-Line Platform Service Revenue: Increased by 5.9%, with corporate networks and broadband revenue growing by 10.1% and 7.4%, respectively.

- EBITDA: For the quarter, EBITDA increased by 11.9% in Mexican peso terms and 6.3% at constant exchange rates. Adjusted for one-off items (primarily from tower sales), EBITDA was up by 7.3%.

- Net Profit: 6.4 billion Mexican pesos. This was aided by a 14.2% increase in operating profit and a 4.8% reduction in comprehensive financing costs.

Market Capitalization and Valuation

The company's market capitalization stands at $51.48 billion as of October 2024, underscoring its substantial presence and valuation within the global telecommunications industry.

Dividend History and Shareholder Returns

América Móvil has demonstrated a strong commitment to returning value to its shareholders, evidenced by an increase in its dividend for 8 consecutive years and sustained dividend payments for 24 consecutive years. This consistent approach aligns with the company's reported capacity to cover shareholder distributions through its operating cash flow.

Financial Health and Balance Sheet

As of the end of September, América Móvil's net debt, excluding leases, was reported at 433 billion Mexican pesos. This figure represents a net debt-to-EBITDAaL ratio of 1.34 times. The company successfully managed its capital expenditures, shareholder distributions, and labor obligations, meeting them with its net financing and operating cash flow.

Furthermore, the company's gross profit margin of 61.35% for the last twelve months indicates a high degree of efficiency in cost management, which supports its operational excellence and reinforces its competitive position in the market.

Strategic Focus and Infrastructure Development

América Móvil has been making significant investments in upgrading its network infrastructure. Currently, 84% of its broadband connections utilize fiber optics, reflecting a strong commitment to delivering high-quality services. The company's IT infrastructure has also seen substantial improvements in Mexico, leading to enhanced customer service, faster installation times, and quicker repair resolution. These advancements contribute to an overall improvement in the quality of service provided to its customers.

Market Expansion and Growth

The company's prepaid platform registered 468,000 net additions, with primary growth originating from Colombia, Eastern Europe, and Argentina. América Móvil continues to prioritize organic growth over acquisitions. Management has indicated that they are not actively pursuing M&A opportunities in Latin America, instead focusing on expanding organically through strategic investments in technology and continuous improvement of customer service.

América Móvil remains exceptionally well-positioned as Latin America's preeminent telecommunications leader. Its strong operational metrics, consistent dividend payments, and strategic investments in network infrastructure collectively support its competitive advantage across numerous key markets in the region.