América Móvil, S.A.B. de C.V. (NYSE:AMX) Q2 2023 Earnings Call Transcript

Leonardo Olmos: Hi. Good morning, everyone. This is Leonardo actually. Thank you for taking the question. A couple of questions in Brazil. The first one, if you could comment on the reduction on the B2B revenue, on the corporate revenue, which sounded like a one-off. But if you could talk a little bit about that. We’re seeing very strong growth in other regions in Brazil in the past quarters. And my second one, we saw yesterday the deal of Vero and AmericaNet forming one of the largest ISPs in Brazil in fixed broadband. We also see news of Felix talking with Vitol from BTG. So overall, I just want to double-click on Vitor’s question on M&A. And if you could talk about either M&A or partnership, what type of opportunities are you looking at specifically in the fixed market in Brazil? Thank you.

Daniel Hajj: Well, I’m going to talk a little bit about Brazil. I think in Brazil, we are doing good. We finalized all the synergies that we have with Oi. I think we have all the subscribers in our platform, I think, where you have the savings that we think that we’re going to have. So we do and execute very good on the purchase of Oi. We’re growing very good. We have a very good distribution network all around Brazil. We’re starting to grow again in fixed, in broadband. So it’s very good news. We have two or three quarters growing again in broadband. So things are looking for us is good that the market consolidate. There is a lot of players in Brazil. So it’s good we are not seeing any consolidation right now. But we’re open also to see what opportunities we can have.

I think the news today is or the I don’t know if it’s a news or not, but what they said is that Vero and AmericaNet are merging is what I hear this morning. So it’s good that everybody that the companies — these companies need to consolidate and I think it’s good for the market, it’s good for us. So we are in a very good position. We have been doing good investments. We have been operating well. So we’re in a very good position in Brazil. In the corporate market, I think, what is happening, I need to go more deeply on the corporate side. But I think we cancelled some contracts, cloud contracts that we don’t have any margins there. So we cancelled some of them. But we’re doing good and we’re growing in the corporate market. And what we want is to have a client what — to have profitable clients in this segment.

So that’s what we are looking for. So what, I don’t know, Oscar, if you want to say something else on Brazil.

Oscar Von Hauske: No, as you say, in corporate, as you mentioned, we cancelled some cloud contracts. When you look at the rest of the digital solutions, we are growing double-digit in all of them, in network management, in IoT. So we feel that the path overall will continue. And as you mentioned in fixed broadband, we are still growing the last three quarters. We were in negative before. So we operate the network and we are changing all the customer satisfaction, installation in time to prepare. So I think we have very product in the marketplace.

Daniel Hajj: And I think where we have network, our network is upgraded. We have a very good speed. And we are doing good. We’re gaining market share where we have network. Then there’s other places where we need to invest and that other companies are investing. But where we are, I think, we have a very good top of mind, very good network, very good customer service and we’re doing very good.

Oscar Von Hauske: Yeah. And we could offer 1 gigabit in all the network, right?

Daniel Hajj: And also we can. Yes. I don’t know if —

Leonardo Olmos: Great. Cannot disagree on that. Very good performance. Thank you very much.