How does management view potential acquisitions — a joint move with Entel for Telefónica Chile, and ISP acquisitions in Brazil (desktop)?

CEO confirmed América Móvil is evaluating a potential joint bid with Entel to purchase Telefónica's Chile assets/operations, but stressed it is very early stage with due diligence ongoing and nothing else to disclose. In Brazil, the subsidiary is evaluating 'desktop' (an ISP), but no binding commitment exists. Management framed itself as open to opportunities in or outside the region as markets consolidate. “we are evaluating a potential joint bid with Entel to purchase Telefonica assets and operations in Chile. It is -- right now, it is in an early stage, and the process will take some time.”

What is the competitive environment in Mexico (new postpaid plans), and what are the drivers of Brazil's prepaid performance despite the disconnections?

CEO said Mexico is highly competitive (AT&T, Telefónica, 'Byte') but Telcel wins on quality, 5G coverage in 120+ cities, customer care, device financing and NPS — noting ~50% of existing customers visiting stores upgrade/extend their plans. In Brazil, prepaid strength reflects heavy network/5G investment and coverage gains; some prepaid users migrate to postpaid while new prepaid users arrive, with prepaid ARPU growing 7.3% on higher consumption. “We have more than 120 cities with 5G, nobody has that.”

Given peer consolidation/financial struggles, how much of the improving Colombia and Chile numbers is competition-driven, and what to expect going forward?

CEO said Colombia is consolidating (Tigo and Telefónica merged networks, Tigo likely to absorb Telefónica pending government approval); América Móvil is #1 in 5G there with service revenue +7.8% (wireless +7.4%), and WOM is weak. Colombia EBITDA growth of ~3% would be ~5% absent precautionary year-end reserves for legal/fiscal matters. In Chile, competition is high and prices very low, but the post-acquisition modernization, 5G, rebranding to Claro and cable-to-fiber migration have more than doubled EBITDA. COO added Colombia is migrating to fiber (targeting 60% of network) plus corporate cybersecurity/cloud/data-center sales. “if not, maybe we can have around -- we can have the 5% increase instead of 3% increase in the quarter, we can go to 5% increase if we don't do these reserves.”

AMX

America Movil SAB DE CV (AMX) Q3 FY25 earnings call: guidance and Q&A

Earnings call· Sep 2025 (Q3 FY25)· Communication Services· Oct 15, 2025

Source: earnings call transcript

Executive summary

América Móvil Q3 FY25 — mobile service revenue posts best growth in 2 years as postpaid adds top 3 million

América Móvil's quarter is a mobile reacceleration story: prepaid and postpaid revenue are both running at their fastest in two years, powered by Mexico, Colombia and Chile, while EBITDA is again outpacing revenue and deleveraging continues. The offsets are a volatile corporate-networks slowdown dragging fixed-line and a cautious, reserve-heavy stance in Colombia. Forward posture is opportunistic M&A — an early-stage Chile joint bid with Entel for Telefónica's assets and a Brazilian ISP review.

Highlights

Added just over 3 million postpaid clients in the quarter (Brazil 1.5M, Colombia 251K, Peru 198K, Mexico 98K); postpaid base up 8.1% YoY to 140 million
Mobile service revenue grew 7.1% (best in 2 years) — prepaid +3.9% (fastest in 2 years), postpaid +9.1%; total revenue MXN 233B, +4.2% (+6.2% constant FX)
EBITDA MXN 94B, +4.9% nominal / +6.8% constant FX (adjusted for prior-year tower sales), reverting to EBITDA outgrowing revenue
Free cash flow MXN 53B for the 9 months, up 47% YoY from MXN 36B; net debt cut by MXN 16B to MXN 454B (1.55x net debt/EBITDA after leases)
Fixed broadband gained 526K accesses (Mexico 211K); net income surged to MXN 23B (MXN 0.38/share, $0.40/ADR)

Concerns

Fixed-line service revenue decelerated to 4.7% from 7.9% prior quarter as corporate networks revenue growth fell from 15% to 3.5%
Prepaid platform recorded net disconnections of 31,000 (losses in Brazil, Ecuador and Chile)
Colombia EBITDA growth held to ~3% (vs ~5% possible) due to precautionary reserves being set through year-end for legal/fiscal matters
Mexican prepaid recovery remains hostage to the macro/economy, which management flagged is only gradually improving

Guidance & targets

Category	Target	Timeline	Confidence
EBITDA growth trajectory	EBITDA to continue expanding more rapidly than revenue going forward high materiality	coming quarters	Medium
Mobile prepaid revenue (Mexico)	Prepaid revenues expected to continue recuperating; hopes for better mobile revenues next year, contingent on the economy medium materiality	Q4 2025 and FY2026	Low
Colombia EBITDA growth	Next quarter EBITDA growth expected to remain similar (~3%) as precautionary reserves run through year-end medium materiality	Q4 · 2025	Medium
Colombia fiber network mix	Expect to have 60% of the Colombia network in fiber (via cable-to-fiber migration) low materiality	not stated	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Mobile — Prepaid (consolidated) Prepaid service revenue grew 3.9%, the fastest in two years, on macro-linked recovery led by Mexico. Net 31K disconnections as losses in Brazil, Ecuador and Chile offset gains elsewhere. Net disconnections: 31,000Prepaid net adds — Argentina: 253,000Prepaid net adds — Colombia: 237,000Prepaid net adds — Mexico: 136,000Prepaid losses: Brazil, Ecuador, Chile	—	3.9%	—	—
Mobile — Postpaid (consolidated) Postpaid service revenue grew 9.1%, near the prior quarter's fastest-in-10-quarters pace. Just over 3M net adds, roughly half from Brazil. Postpaid net adds: just over 3,000,000Net adds — Brazil: 1,500,000Net adds — Colombia: 251,000Net adds — Peru: 198,000Net adds — Mexico: 98,000Postpaid base: 140,000,000 (+8.1% YoY)	—	9.1%	—	—
Mobile — total service revenue (consolidated) Mobile service revenue grew 7.1%, its best in two years; Mexico, Colombia and Chile were the main operations behind the acceleration. Best rate of growth in 2 years	—	7.1%	—	—
Fixed-line service revenue (consolidated) Fixed-line service revenue decelerated to 4.7% from 7.9%, driven by corporate-networks slowdown (15% → 3.5%). Corporate networks now 21% of fixed-line service revenue. Fixed broadband net adds: 526,000Broadband adds — Mexico: 211,000Broadband adds — Brazil: 86,000Broadband adds — Argentina: 56,000Broadband adds — Colombia: 51,000Fixed-line RGUs: 79,000,000Fixed broadband base growth: 5.1% YoYCorporate networks revenue growth: 3.5% (from 15% in Q2)Corporate networks share of fixed-line service revenue: 21%	—	4.7%	—	—
Colombia Strong revenue growth; EBITDA growth held to ~3% by precautionary year-end reserves for legal/fiscal matters. Market consolidating (Tigo/Telefónica); WOM weak. Migrating cable to fiber, plus corporate cybersecurity/cloud/data-center sales. #1 in 5G in ColombiaPostpaid net adds: 251,000Prepaid net adds: 237,000Broadband net adds: 51,000Fiber network target: 60% of network	—	Service revenue +7.8% (wireless +7.4%)	—	EBITDA +3% (would be ~5% ex-reserves)
Chile / Uruguay / Paraguay Chile EBITDA more than doubled post-Liberty acquisition on network modernization, 5G, rebranding and cost discipline. Strong QoQ and YoY margin expansion driven by operations, not accounting. Prices remain very low, competition high. Rebranded to Claro5G deployedBetter postpaid subscribers / ARPUs / churn	—	—	—	EBITDA more than doubled (Chile)
Brazil Roughly half of group postpaid adds (1.5M). Prepaid net losses but prepaid ARPU up 7.3% on higher consumption (data, social, longer packages); prepaid-to-postpaid migration plus new prepaid users. Three years of wireless share gains, driven by network/5G investment. Postpaid net adds: 1,500,000Prepaid net adds: negative (net loss)Broadband net adds: 86,000Prepaid ARPU growth: 7.3%	—	—	—	—
Mexico Prepaid recovering on improving macro. Highly competitive (AT&T, Telefónica, 'Byte'), but Telcel leads on 5G coverage (120+ cities), customer care, device financing and NPS. Postpaid net adds: 98,000Prepaid net adds: 136,000Broadband net adds: 211,0005G in 120+ cities~50% of store-visiting customers upgrade/extend plan	—	—	—	—

Deals & partnerships

Telefónica (Chile) / Entel acquisition (potential joint bid)

América Móvil is evaluating a potential joint bid with Entel to purchase Telefónica's assets and operations in Chile. Early stage; due diligence and number-checking ongoing; process expected to take time. No binding commitment disclosed.

Desktop (Brazil ISP) acquisition (under evaluation)

América Móvil's Brazilian subsidiary is evaluating 'desktop' (an ISP), but management stated no binding commitment exists to date.

Liberty (Chile) acquisition (completed)

Referenced as already completed — América Móvil bought the Liberty shares/stake in Chile; integration and synergies drove the Chile turnaround (rebranding to Claro, 5G, cable-to-fiber migration).

Risks & headwinds

Corporate networks revenue volatility dragging fixed-line growth Q3 2025; inherently volatile going forward

Corporate networks revenue growth fell from 15% (Q2) to 3.5% (Q3); fixed-line service revenue decelerated to 4.7% from 7.9%

Mitigation:Management notes volatility is structural (tied to corporate contract/IT project pipeline); segment now 21% of fixed-line service revenue and growing

Prepaid net disconnections Q3 2025

31,000 net prepaid disconnections in the quarter (losses in Brazil, Ecuador, Chile)

Mitigation:Offset by prepaid gains in Argentina (253K), Colombia (237K) and Mexico (136K); prepaid revenue still grew 3.9%

Precautionary reserves suppressing Colombia EBITDA Through end of 2025

Colombia EBITDA growth held to ~3% vs ~5% possible; reserves for legal/fiscal ('physical and legal') matters run through year-end

Mitigation:Management characterizes reserves as conservative; underlying operations growing well (service revenue +7.8%)

Macro dependency of Mexican prepaid recovery Q4 2025 into 2026

Not quantified; prepaid recovery explicitly tied to the economy, which is only gradually improving

Mitigation:Management monitoring; expects recovery to continue if economy improves

Competitive intensity and low pricing in Chile Ongoing

Not quantified; prices described as 'very low' with high competition

Mitigation:Network modernization, 5G, Claro rebranding, cost discipline and better subscriber mix; EBITDA more than doubled

Regulatory approval risk on regional consolidation (Colombia) Ongoing

Not quantified; Tigo/Telefónica consolidation awaiting government authorization

Mitigation:América Móvil positioned as #1 in 5G in Colombia; monitoring competitive outcome

Q&A highlights

Is the Mexico prepaid revenue recovery macro-driven and continuing into Q4? Was the strong Chile/Uruguay/Paraguay margin expansion due to accounting/one-offs after the JV ended?

CEO said Mexican prepaid recovery is very related to the economy, which troughed late 2024/early 2025 and has been recovering since; sustainability depends on macro. On Chile, he attributed margin gains to genuine operations — synergies after buying the Liberty shares, better/higher-ARPU postpaid subscribers, improved churn and cost discipline — not accounting or one-offs.

“There's nothing different on that. So that's only the operations and the growth that we have been having better churn, good subscribers -- better subscribers because we used to have the lowest segment of subscribers were having better postpaid subscribers, better revenue, better ARPUs, all of this is helping us to grow our EBITDA”

asked by Vitor Tomita · answered by Daniel Hajj Aboumrad

2 min read 6 chapters

Detailed narrative

Macro backdrop and FX

CFO Garcia Moreno framed the quarter against a slowing U.S. economy, evidenced by a sharp decline in new jobs and a September Fed rate cut of 25 bps. Ten-year U.S. rates fell from nearly 4.5% to 4.1% since mid-July. The weaker dollar lost ground across América Móvil's region: down 2.7% vs the Mexican peso, 2.5% vs the Brazilian real and 4.1% vs the Colombian peso, roughly flat vs the euro, while the Argentine peso depreciated against the dollar.

This peso appreciation explains the gap between nominal (+4.2%) and constant-FX (+6.2%) revenue growth.

Subscriber additions across the footprint

The company added just over 3 million postpaid clients, with Brazil contributing roughly half (1.5M), followed by Colombia (251K), Peru (198K) and Mexico (98K). Prepaid saw net disconnections of 31,000 overall — losses in Brazil, Ecuador and Chile offset by additions in Argentina (253K), Colombia (237K) and Mexico (136K).

Fixed broadband gained 526,000 accesses, led by Mexico (211K), Brazil (86K), Argentina (56K) and Colombia (51K). Total accesses reached 408 million: 140 million postpaid, 79 million fixed-line RGUs.

Mobile revenue reacceleration

Mobile service revenue posted its best growth in two years at 7.1%. Prepaid revenue expanded 3.9% — the fastest pace in two years, driven by macro-linked recovery — while postpaid climbed 9.1%, similar to the prior quarter's fastest-in-10-quarters pace. Mexico, Colombia and Chile were the main operations behind the acceleration.

Management tied the prepaid recovery directly to the economy, noting the trough was late 2024/early 2025.

Fixed-line and corporate networks

Fixed-line service revenue decelerated to 4.7% (from 7.9% the prior quarter), driven by a sharp slowdown in corporate networks revenue, which fell from a 15% increase in Q2 to just 3.5% in Q3. Management noted corporate networks revenue is inherently volatile, tied to the pipeline of corporate contracts and IT projects, and has grown to represent 21% of fixed-line service revenue — an increasingly important segment for the company.

Cash flow, capital returns and balance sheet

Over the nine months to September, operating cash flow was MXN 138 billion (EBITDA after leases less MXN 34B working-capital increase and MXN 67B interest and taxes). Capex totaled MXN 85 billion. Free cash flow of MXN 53 billion (up 47% YoY from MXN 36B), plus MXN 2.3B dividend income, funded MXN 29 billion distributed to shareholders (including MXN 11B in buybacks), a MXN 1B increase in equity investments, MXN 10B in labor obligations, and a MXN 16B net-debt reduction.

Net debt ended at MXN 454 billion, or 1.55x net debt/EBITDA after leases.

Chile turnaround

Management highlighted Chile (grouped with Uruguay and Paraguay) as a strong margin story: after buying the Liberty stake, modernizing the network, deploying 5G, expanding coverage and rebranding to Claro, the operation is winning better-quality postpaid subscribers with better ARPUs and churn.

EBITDA in Chile has more than doubled. Management stressed synergies take time but the operation is in 'a very good moment,' while cautioning that Chilean prices remain very low and competition high.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.