AMX America Movil SAB de CV

 

 

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 2021

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):  ☐

 

 

 

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América Móvil’s first quarter of

2021 financial and operating report

 

 

Mexico City, April 27^th, 2021 - 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 2021.

 

●

We added 6.0 million wireless subscribers, one third more than a year before, of which 3.3 million were postpaid and 2.8 million were prepaid. Brazil, Mexico and Colombia were the main contributors.

 

●

On the fixed-line platform we added 246 thousand broadband accesses, most of them coming from Colombia, Ecuador and Peru.

 

●

First quarter revenues of 248 billion pesos were nearly flat in Mexican peso terms from the year-earlier quarter with service revenues declining 1.1% year-on-year and equipment revenues 0.7%.

 

●

At constant exchange rates service revenues expanded 1.2% year-on-year. Mobile service revenues were up 1.7%, whereas fixed-line service revenue growth turned slightly positive for the first time in eight quarters.

 

●

EBITDA rose 5.2% in Mexican peso terms to 81.7 billion pesos; at constant exchange rates it grew 8.1%. Our EBITDA margin increased almost two percentage points from a year before to 32.9% on the back of strict cost controls across all markets.

 

●

Our operating profit, 41.1 billion pesos, was up 5.7% whereas our comprehensive financing cost was down 55%, resulting in a swing in net profits to 1.8 billion pesos from a 28.9 billion loss a year before.

 

●

Our cash flow enabled us to cover capital expenditures of 24.9 billion pesos, buy back shares in the amount of 4.4 billion pesos and reduce our net debt by 9.9 billion pesos.

 

●

At the end of March, our net debt stood at 627 billion pesos; it was equivalent to 1.77 times EBITDA under IAS 17.

 

We will host our conference call to discuss 1Q21 financial and operating results on April 28th at 9:00 am Mexico City time. To access the call please log on to www.americamovil.com/investors

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América Móvil Fundamentals
		1Q21				1Q20
Earnings per Share (Mex$)(1)			0.03				-0.44
Earning per ADR (US$)(2)			0.03				-0.44
EBITDA per Share (Mex$)(3)			1.22				1.18
EBITDA per ADR (US$)			1.21				1.19
Net Income (millions of Mex$)			1,810				-28,862
Average Shares Outstanding (billion)			66.74				66.00
Shares Oustanding End of Period (billion)			66.54				65.99

(1) Net Income / Average Shares outstanding

(2) 20 shares per ADR

(3) EBITDA/ Average Shares Outstanding

América Móvil’s Subsidiaries as of March 2021

Country		Brand		Business		Equity Participation
Mexico		Telcel		wireless			100.0%
		Telmex		wireline			98.8%
		Sección Amarilla		other			100.0%
		Telvista		other			90.0%
Argentina		Claro		wireless			100.0%
		Telmex		wireline			100.0%
Brazil		Claro		wireless/wireline			99.6%
Chile		Claro		wireless			100.0%
		Telmex		wireline			100.0%
Colombia		Claro		wireless/wireline			99.4%
Costa Rica		Claro		wireless			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%
Panama		Claro		wireless/wireline			100.0%
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%
USA		Tracfone		wireless			100.0%
Netherlands		KPN		wireless/wireline			20.9%
Austria		Telekom Austria		wireless/wireline			51.0%

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The reported figures for Argentina corresponding to the first quarter of 2021 are presented in accordance with a) IAS29 reflecting the effects of the adoption of inflationary accounting that became mandatory after the Argentinean economy was deemed to be hyperinflationary in the third quarter of 2018 and b) IAS21 translated to Mexican pesos using the end-of-period exchange rate.

All comparisons at constant exchange rates for América Móvil’s consolidated figures will exclude Argentina to ensure consistency.

Relevant Events

 

 

On March 2nd we launched a three-year exchangeable bond in the amount of 2.1 billion euros. The bond carries no coupon and was sold at a price of 104.75%, which results in a negative yield of -1.53% per annum. The bond may be exchanged at maturity for 672.4 million KPN shares—which represent a 16% interest in the company— at a price of 3.1185 euros per share.

On April 26th we held our Ordinary Shareholders’ meeting where we received approval to pay a dividend of MXP$0.40 (forty peso cents) in two installments to each of the series of our capital stock and to allocate an additional amount of MXP$25 billion pesos to our buyback fund. We also received approval to cancel all shares held in treasury acquired as part of AMX’s share-buyback program.

Access Lines

 

 

In the first quarter we added 3.3 million postpaid subscribers and 2.8 million prepaid subs for a total of 6.0 million wireless additions. Brazil led the way in terms of postpaid growth adding 2.4 million subs followed by Peru with 210 thousand and Colombia with 154 thousand. As regards prepaid, we ended the quarter with 192 million subscribers, after adding 812 thousand in Brazil, 500 thousand in Mexico, 298 thousand in Colombia and 213 thousand in Argentina.

On the fixed-line platform we added 246 thousand broadband clients, with almost every operation showing an increase in access lines, except for Austria where we had disconnections of low-bandwidth clients. We registered net disconnections in of voice and PayTV accesses.

We ended March with 374 million access lines, 2.8% more than a year before with our postpaid base and our fixed-broadband accesses increasing 7.8% and 4.7%, respectively.

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Wireless Subscribers as of March 2021

			Total(1) (Thousands)
Country		Mar ’21				Dec ’20				Var.%				Mar ’20				Var.%
Argentina, Paraguay and Uruguay			24,618				24,234				1.6%				24,667				-0.2%
Austria & CEE			21,932				21,864				0.3%				21,306				2.9%
Brazil			66,337				63,140				5.1%				58,671				13.1%
Central America			15,569				15,044				3.5%				15,469				0.6%
Caribbean			6,562				6,422				2.2%				6,312				4.0%
Chile			6,581				6,435				2.3%				6,966				-5.5%
Colombia			33,461				33,009				1.4%				31,244				7.1%
Ecuador			8,104				7,929				2.2%				8,465				-4.3%
Mexico			78,311				77,789				0.7%				77,212				1.4%
Peru			11,181				10,948				2.1%				11,543				-3.1%
USA			20,883				20,682				1.0%				20,704				0.9%
Total Wireless Lines			293,538				287,497				2.1%				282,559				3.9%

(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 2021

		Total(1) (Thousands)
Country		Mar ’21				Dec ’20				Var.%				Mar ’20				Var.%
Argentina, Paraguay and Uruguay			1,527				1,459				4.7%				1,210				26.2%
Austria & CEE			6,079				6,050				0.5%				6,131				-0.9%
Brazil			32,273				32,648				-1.1%				33,808				-4.5%
Central America			4,291				4,247				1.0%				4,408				-2.7%
Caribbean			2,586				2,558				1.1%				2,516				2.8%
Chile			1,376				1,377				-0.1%				1,398				-1.5%
Colombia			8,527				8,318				2.5%				7,760				9.9%
Ecuador			476				420				13.4%				458				3.9%
Mexico			21,739				21,925				-0.8%				22,039				-1.4%
Peru			1,805				1,739				3.8%				1,646				9.6%
Total RGUs			80,680				80,740				-0.1%				81,375				-0.9%

(1) Fixed Line, Broadband and Television (Cable & DTH). Central America figures have been adjusted in accordance with the methodolgy used for all AMX operations.

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América Móvil Consolidated Results

 

 

The strong economic expansion in the United States that had gained momentum in the second half of 2020 continued unabated in the first quarter of the year propelled by news of a second fiscal stimulus plan, talk of a new infrastructure program and solid progress on vaccination. U.S. economic growth forecasts for 2021 were upgraded and initially led to an appreciation of the U.S. dollar vs. most other currencies on the back of rapid increases in medium and long-term dollar interest rates. Various Latin American countries, including Mexico and Brazil, experienced new COVID waves that led to renewed confinements, constrained mobility and a slowdown in economic activity.

Our first quarter revenues totaled 248 billion pesos, nearly flat in nominal peso terms, with service revenues declining 1.1% year-on-year. At constant exchange rates, service revenues actually increased 1.2%, slightly slower than in the preceding quarter when they had risen 2.2%. As in the prior quarter, the main reason for our consolidated nominal peso revenues to decline even though they had risen in local currency terms have mostly to do with the sharp depreciation of the Brazilian real vis-à-vis the Mexican peso, -20.4%.

The expansion of service revenues was driven by that of mobile service revenues, which decelerated to 1.7% from 4.1% the prior quarter, and was supported by the continued recovery of fixed-line services. The latter’s revenue growth turned positive, 0.1%, after several quarters of negative growth, on the back of continued strong performance of fixed-broadband services which became our most important revenue line in the quarter maintaining its nearly 8% annual pace. We registered an important improvement in corporate networks, with revenues expanding 2.4% in the quarter compared to a 2.9% decline in the fourth quarter, which tipped into positive territory the overall expansion of fixed-line revenues.

The deceleration of mobile service revenues mirrored that of mobile postpaid revenues, which slowed down in Brazil, Colombia and Austria. Prepaid revenues, for their part, maintained their pace of growth at 2.4%.

EBITDA rose 5.2% to 81.7 billion pesos. At constant exchange rates it was up 8.1% with the EBITDA margin expanding almost two percentage points to 32.9% supported by strict cost controls across all markets. Most countries registered strong EBITDA growth: 59% in the U.S., 47% in Puerto Rico, 36% in Peru and 15% in Dominicana.

With our operating profit increasing 5.7% to 41.1 billion pesos and our comprehensive financing cost coming down by 55% year-on-year to 35.9 billion pesos, bringing our net income to 1.8 billion pesos from -28.9 billion a year before. Net profit was equivalent to 3 peso cents per share or 3 dollar cents per ADR.

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América Móvil’s Income Statement Millions of Mexican pesos

		1Q21				1Q20				Var.%
Service Revenues			207,109				209,513				-1.1%
Equipment Revenues			39,216				39,480				-0.7%
Total Revenues*			248,186				250,062				-0.8%
Cost of Service			75,192				75,475				-0.4%
Cost of Equipment			40,505				40,388				0.3%
Selling, General & Administrative Expenses			49,430				55,566				-11.0%
Others			1,403				1,045				34.2%
Total Costs and Expenses			166,529				172,474				-3.4%
EBITDA			81,656				77,587				5.2%
% of Total Revenues			32.9%				31.0%
Depreciation & Amortization			40,509				38,677				4.7%
EBIT			41,147				38,910				5.7%
% of Total Revenues			16.6%				15.6%
Net Interest Expense			8,742				9,380				-6.8%
Other Financial Expenses			10,747				-23,092				146.5%
Foreign Exchange Loss			16,361				92,728				-82.4%
Comprehensive Financing Cost (Income)			35,849				79,016				-54.6%
Income & Deferred Taxes			2,558				-12,020				121.3%
Net Income before Minority
Interest and Equity Participation in Results of Affiliates			2,740				-28,085				109.8%
Equity Participation in Results of Affiliates*			13				3				n.m.
Minority Interest			-943				-779				-21.1%
Net Income			1,810				-28,862				n.m.

*Total revenues include Other Revenues

n.m. Not meaningful.

Our net debt fell by 20.2 billion pesos in the first quarter ending March at 627 billion pesos. In cash flow terms it was reduced by 9.9 billion pesos in the quarter. In addition to this reduction, our operating cash flow allowed us to fund capital expenditures in the amount of 24.9 billion pesos and to buy back shares worth 4.4 billion pesos in shares. Our net debt stood at 1.77 time EBITDA LTM.

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Balance Sheet – América Móvil Consolidated Millions of Mexican Pesos

		Mar ‘21				Dec ‘20				Var.%						Mar ‘21				Dec ‘20				Var.%
Current Assets														Current Liabilities
Cash, Marketable Securities & Other Short Term Investments			118,967				90,554				31.4%			Short Term Debt*			114,623				148,083				-22.6%
Accounts Receivable			215,183				228,906				-6.0%			Lease-Related Debt			26,689				25,068				6.5%
Other Current Assets			19,537				10,385				88.1%			Accounts Payable			249,642				237,287				5.2%
Inventories			30,920				30,377				1.8%			Other Current Liabilities			101,243				96,872				4.5%
			384,606				360,223				6.8%						492,197				507,311				-3.0%
Non Current Assets														Non Current Liabilities
Plant & Equipment, gross			1,347,771				1,355,801				-0.6%			Long Term Debt			526,117				480,300				9.5%
-Depreciation			636,619				632,871				0.6%			Lease-Related Debt			78,530				84,259				-6.8%
Plant & Equipment, net			711,152				722,930				-1.6%			Other Non Current Liabilities			241,181				238,061				1.3%
Rights of Use			97,929				101,977				-4.0%						845,828				802,620				5.4%
Investments in Affiliates			1,773				1,830				-3.1%
Deferred Assets
Goodwill (Net)			140,992				143,053				-1.4%
Intangible Assets			130,401				133,457				-2.3%			Shareholder’s Equity			293,556				315,118				-6.8%
Deferred Assets			164,729				161,579				1.9%
Total Assets			1,631,582				1,625,048				0.4%			Total Liabilities and Equity			1,631,582				1,625,048				0.4%

*Includes current portion of Long Term Debt.

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Financial Debt of América Móvil* Millions

		Mar -21				Dec -20
Peso - denominated debt (MxP)			73,389				78,383
Bonds(1)			51,389				51,283
Banks and others			22,000				27,100
U.S. Dollar - denominated debt (USD)			9,601				9,351
Bonds			9,351				9,351
Banks and others			250				0
Euro - denominated Debt (EUR)			10,247				9,780
Bonds			9,197				8,100
Commercial Paper			1,050				1,680
Banks and others			0				0
Sterling - denominated Debt (GBP)			2,200				2,200
Bonds			2,200				2,200
Reais - denominated Debt (BRL)			7,375				8,475
Bonds			7,375				8,475
Banks and others			0				0
Debt denominated in other currencies(2) (MxP)			32,721				32,610
Bonds			6,615				6,590
Banks and others			26,106				26,020
Total Debt (MxP)			640,741				628,383
Cash, Marketable Securities and Short Term Financial Investments (MxP)			118,417				90,554
Net Debt (MxP)			522,323				537,829

*This table does not include the effect of forwards and derivatives used to hedge our foreign exchange exposure. It includes financial debt of Telekom Austria.

⁽¹⁾Includes the effect of inflation-linked debt.

⁽²⁾Includes Peruvian soles and Chilean pesos.

Mexico

 

 

We gained 522 thousand subscribers in the first quarter, most of them prepaid subscribers, to finish March with 78.3 million subscribers. On the fixed-line platform we disconnected 185 thousand accesses, of which 167 thousand were land-lines.

Revenues totaled 71.5 billion pesos, with service revenues flat year-on-year, -0.1% as those coming from mobile decreased 0.2% and those on the fixed-line platform remained practically unchanged. The recovery in fixed-line revenues was driven by fixed-broadband and corporate networks that expanded 2.5% and 1.6%, respectively, compensating the decline in voice revenues. Equipment revenues were down 11.7% on lower handset sales, partly stemming from the global shortage of chips.

EBITDA was up 3.6% from the year-earlier quarter to 28.8 billion pesos and the EBITDA margin reached 40.2%, a 2.3 percentage points expansion in the period on operational efficiencies, as we become increasingly digital.

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INCOME STATEMENT - Mexico Millions of MxP

 

		1Q21				1Q20				Var.%
Total Revenues*			71,466				73,182				-2.3%
Total Service Revenues			54,518				54,599				-0.1%
Total Equipment Revenues			15,988				18,106				-11.7%
Wireless Revenues			51,337				53,395				-3.9%
Service Revenues			35,479				35,555				-0.2%
Equipment Revenues			15,858				17,840				-11.1%
Fixed Line Service Revenues			19,169				19,310				-0.7%
Service Revenues			19,039				19,044				0.0%
Equipment Revenues			130				266				-51.2%
EBITDA			28,758				27,771				3.6%
% total revenues			40.2%				37.9%
EBIT			21,057				20,038				5.1%
%			29.5%				27.4%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

Total revenues include other income.

Mexico Operating Data

		1Q21				1Q20				Var.%
Wireless Subscribers (thousands)			78,311				77,212				1.4%
Postpaid			14,558				14,564				0.0%
Prepaid**			63,753				62,648				1.8%
MOU			556				528				5.4%
ARPU (MxP)			152				154				-1.3%
Churn (%)			3.5%				3.9%				(0.5)
Revenue Generating Units (RGUs)*			21,739				22,039				-1.4%
Fixed Lines			11,747				12,241				-4.0%
Broadband			9,992				9,798				2.0%

*Fixed Line and Broadband

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.

We added 332 thousand new wireless subscribers in Argentina in the first quarter of which 119 thousand were postpaid. On the fixed-line segment we carried on with our fiber rollout and gained 37 thousand new broadband clients.

First quarter revenues of 32.5 billion Argentinean pesos were 8.8% lower than a year before in after-inflation (real) terms. Service revenues of 26.2 billion Argentinean pesos showed a sequential improvement of 1.1%; but they were still down 10.9% annually.

Revenues on the mobile segment improved as a result of price increases that were conducted on a monthly basis during the quarter, with service revenues rising 1.1% on the prepaid segment and declined 16.5% in postpaid. Fixed-line service revenues were up 6.1% over the year on the back of broadband revenues that expanded 26.2% and of PayTV revenues that, although from a smaller base, climbed 51.3% annually following the launch of our IPTV services.

EBITDA came in at 12.9 billion Argentinean pesos and was 3.8% lower than a year before, compared to -15.0% in the fourth quarter and -9.1% in the third. The EBITDA margin increased by two percentage points relative to the prior year, to 39.6% of revenues.

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INCOME STATEMENT - Argentina Millions of Constant ARS of March 2021

 

		1Q21				1Q20				Var.%
Total Revenues*			32,486				35,609				-8.8%
Total Service Revenues			26,236				29,442				-10.9%
Wireless Revenues			29,097				32,389				-10.2%
Service Revenues			22,887				26,286				-12.9%
Equipment Revenues			6,210				6,103				1.7%
Fixed Line Revenues			3,349				3,157				6.1%
EBITDA			12,872				13,375				-3.8%
% total revenues			39.6%				37.6%
EBIT			10,005				10,438				-4.1%
%			30.8%				29.3%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

Total revenues include other income.

Argentina Operating Data

		1Q21				1Q20				Var.%
Wireless Subscribers (thousands)(1)			21,827				21,896				-0.3%
Postpaid			8,549				8,460				1.1%
Prepaid			13,278				13,436				-1.2%
MOU			77				75				2.8%
ARPU (ARP)			344				279				23.4%
Churn (%)			1.0%				1.7%				(0.7)
Revenue Generating Units (RGUs)			1221				875				39.6%

*Fixed Line, Broadband and Pay TV.

⁽¹⁾ Hybrid subscribers are now included in our postpaid figures.

Brazil

 

Claro remained on a strong growth path adding 3.2 million subscribers in the first quarter, 2.4 million of them postpaid, to finish March with 66.3 million subscribers. After the new additions, our postpaid base increased 19.4% year-on-year. Claro was the only operator in the first quarter to keep a positive balance from Mobile Number Portability and obtained a record number of subscribers ported-in. On the fixed-line platform we disconnected 375 thousand accesses in the quarter, including 191 thousand PayTV clients and 159 thousand land-lines.

First quarter revenues were nearly flat year-on-year, declining slightly, -0.2%, to 9.8 billion reais as service revenues dropped 0.4% with those coming from mobile services increasing 5.1% and those originating in the fixed-line platform falling 4.6%. Service revenue growth slowed down in the quarter, particularly in mobile, as a consequence of a new wave of COVID-19 contagion that resulted in reduced mobility as well as to a much reduced level of support from the federal government.

Postpaid drove revenue growth on the mobile platform, expanding 6.8%, whereas prepaid revenues were off 1.1%. On the fixed-line platform service revenues came down 4.6% brought down by PayTV services (-13.3%) and voice revenues (-15.9%); fixed-broadband service revenues continued to expand at a solid pace, 7.2%, as we held on to our leadership position in the ultrabroadband segment.

EBITDA increased 5.3% from the year-earlier quarter to 3.9 billion reais with the EBITDA margin expanding 2.1 percentage points from a year before to 40.0% buoyed by significant reductions in administrative expenses.

Since March we have made “Claro Pay” available to all our clients. It is a digital wallet that allows for payments and transfers through the mobile.

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In January we launched our “Claro Box TV” service, available through streaming and with voice commands, which may be self-installed, reducing the operational costs associated with the service. Generally we reinforced the positioning of our sports products at a time when the search for this type of content is surging.

INCOME STATEMENT - Brazil Millions of BrL

 

		1Q21				1Q20				Var.%
Total Revenues*			9,775				9,791				-0.2%
Total Service Revenues			9,480				9,522				-0.4%
Wireless Revenues			4,564				4,341				5.1%
Service Revenues			4,290				4,082				5.1%
Equipment Revenues			275				259				5.9%
Fixed Line Revenues			5,190				5,440				-4.6%
EBITDA			3,905				3,709				5.3%
% total revenues			40.0%				37.9%
EBIT			1,255				1,429				-12.2%
%			12.8%				14.6%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

Total revenues include other income.

Brazil Operating Data

		1Q21				1Q20				Var.%
Wireless Subscribers (thousands)			66,337				58,671				13.1%
Postpaid			38,026				31,847				19.4%
Prepaid			28,311				26,825				5.5%
MOU(1)			168				173				-2.5%
ARPU (BrL)			22				24				-7.0%
Churn (%)			3.0%				4.0%				(1.0)
Revenue Generating Units (RGUs)*			32,273				33,808				-4.5%

*Fixed Line, Broadband and Television.

⁽¹⁾ We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

Colombia

 

 

Mobile net additions trebled relative to the year-earlier quarter reaching 452 thousand subscribers, a third of which were postpaid clients. On the fixed-line segment we connected 89 thousand new broadband accesses and 54 thousand PayTV units.

Revenues rose 9.8% year-on-year to 3.5 trillion Colombian pesos with service revenues expanding 7.9%. On the mobile segment, service revenues increased 4.4% with prepaid revenues growing somewhat faster. Fixed-line service revenues for their part continued to accelerate to 13.7% on the back of broadband revenue growth that reached 21.7% (from 20.9% in the fourth quarter and 16.1% in the third) and PayTV revenues that increased 12.1%.

First quarter EBITDA came in at 1.5 trillion Colombian pesos exceeding by 10.3% that obtained a year before—its best performance in at least that period—with administrative expenses coming down in line with provisions for bad debt. The EBITDA margin for the period was equivalent to 43.2% of revenues.

We finished the first quarter with a positive balance from Mobile Number Portability as subscribers greatly value the quality and speed of our network, our efforts to provide the best customer care and the unmatched coverage of our platforms. Claro provides 4G services in 99% of the municipalities of Colombia.

---

INCOME STATEMENT - Colombia Billions of COP

		1Q21				1Q20				Var.%
Total Revenues*			3,549				3,230				9.8%
Total Service Revenues			2,794				2,590				7.9%
Wireless Revenues			2,366				2,239				5.7%
Service Revenues			1,690				1,619				4.4%
Equipment Revenues			676				620				8.9%
Fixed Line Revenues			1,133				975				16.2%
EBITDA			1,534				1,390				10.3%
% total revenues			43.2%				43.0%
EBIT			911				814				11.8%
%			25.7%				25.2%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

Total revenues include other income.

 

Colombia Operating Data
		1Q21				1Q20				Var.%
Wireless Subscribers* (thousands)			33,461				31,244				7.1%
Postpaid			7,919				7,384				7.2%
Prepaid			25,542				23,860				7.1%
MOU(1)			297				294				0.8%
ARPU (CoP)			17,035				17,353				-1.8%
Churn (%)			4.1%				4.2%				(0.1)
Revenue Generating Units (RGUs)**			8,527				7,760				9.9%

*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).**Fixed Line, Broadband and Television ** Fixed Line, Broadband and Television.

⁽¹⁾ We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

Chile

 

 

In the first quarter we gained 146 thousand wireless subscribers—108 thousand postpaid—with no major change in fixed-line RGUs, ending March with 6.6 million subscribers.

Total revenues topped 200 billion Chilean pesos, slightly higher than a year before, with service revenues coming down 1.7% year-on-year. The rate of decline has slowed, from -5.7% in the precedent quarter and -7.2% in the third quarter.

Mobile service revenues were down 3.7% —compared to -10.5% in the prior quarter—partly as a result of our subscriber growth. We registered 146 thousand net subscriber gains in the first quarter, 56% more than a year before. Postpaid revenues were down 2.7% after high single digit declines in the past two quarters, while prepaid revenues fell 11.9%; the latter represent only 10% of our mobile revenues. On the fixed-line platform revenues increased 0.9% annually with broadband and PayTV rising 7.4% and 4.8%, respectively.

EBITDA of 44.5 billion Chilean pesos was up 3.6% from the year-earlier quarter, as the margin reached 22.3% of revenues, 70 basis percentage points higher than a year before.

As part of an auction that concluded in the first quarter, Claro was granted the use of 400MHz of spectrum in the 26GHz band to be used to provide 5G services in Chile.

---

INCOME STATEMENT—Chile Millions of ChPL

 

		1Q21				1Q20				Var.%
Total Revenues*			200,091				199,349				0.4%
Total Service Revenues			163,003				165,753				-1.7%
Wireless Revenues			124,625				125,334				-0.6%
Service Revenues			88,598				92,038				-3.7%
Equipment Revenues			36,026				33,296				8.2%
Fixed Line Revenues			74,404				73,715				0.9%
EBITDA			44,528				42,993				3.6%
% total revenues			22.3%				21.6%
EBIT			-8,558				-8,058				-6.2%
%			-4.3%				-4.0%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

Chile Operating Data

 

		1Q21				1Q20				Var.%
Wireless Subscribers (thousands)			6,581				6,966				-5.5%
Postpaid			2,489				2,286				8.9%
Prepaid			4,092				4,681				-12.6%
MOU			179				160				12.1%
ARPU (ChP)			4,845				4,950				-2.1%
Churn (%)			6.2%				6.5%				(0.3)
Revenue Generating Units (RGUs)*			1,376				1,398				-1.5%

*Fixed Line, Broadband and Television.

Ecuador

 

 

First quarter revenues totaled 253 million dollars and were down 17.4% year-on-year with service revenues declining 13.4%, consequence of the rough economic situation the country has been undergoing for some time, which was exacerbated by the sanitary crisis.

Mobile service revenues fell 14.8% over the year with postpaid revenues still heavily impacted by deteriorated credit-scoring from our clients, many of which have migrated to prepaid. The recovery of prepaid service revenues can be seen in their having declined only 1.8% in the first quarter compared to -4.2% in the fourth quarter and -12.3% in the third.

We continued to make inroads in the broadband segment as we expanded our fiber footprint. Broadband service revenues increased 15.3% compensating for the decline in PayTV and Corporate network revenues that resulted from disconnections of clients that could not afford to maintain their service.

EBITDA was off 15.2% to 110 million dollars. However, the EBITDA margin improved 1.1 percentage points to 43.2% as we have been making extraordinary efforts to reduce costs, particularly our cost of service and our selling and marketing expenses, both of which dropped approximately 17%.

 

INCOME STATEMENT - Ecuador Millions of Dollars
		1Q21				1Q20				Var.%
Total Revenues*			253				307				-17.4%
Total Service Revenues			227				262				-13.4%
Wireless Revenues			228				281				-19.0%
Service Revenues			202				237				-14.8%
Equipment Revenues			26				44				-41.8%
Fixed Line Revenues			26				26				-1.2%
EBITDA			110				129				-15.2%
% total revenues			43.2%				42.1%
EBIT			55				74				-24.6%
%			21.9%				23.9%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

Total revenues include other income.

---

Ecuador Operating Data
		1Q21				1Q20				Var.%
Wireless Subscribers (thousands)			8,104				8,465				-4.3%
Postpaid			2,031				2,660				-23.6%
Prepaid			6,073				5,805				4.6%
MOU			357				413				-13.4%
ARPU (US$)			8				9				-9.8%
Churn (%)			3.3%				4.0%				(0.6)
Revenue Generating Units (RGUs)*			476				458				3.9%

*Fixed Line, Broadband and Pay TV.

Peru

 

 

We added 233 thousand mobile subscribers in the first quarter, most of them postpaid, ending March with 11.2 million subscribers, whereas in the fixed-line segment we gained 66 thousand clients, three quarters of which were broadband clients.

First quarter revenues of 1.4 billion soles were up 11.5% year-on-year with service revenues expanding 7.7%, with those coming from mobile clients rising 4.2% and those on the fixed-line segment jumping 19.1% as broadband revenues soared. The latter, up 41.5%, has become our fastest growing revenue line.

We have been expanding our fixed-line infrastructure and the number of homes passed, and launched at the end of the period our IPTV platform that offers convergence between OTT content and traditional TV channels.

Our greater operating leverage allowed for a 36.4% EBITDA expansion, to 546 million soles. The EBITDA increase also reflects a reduction of bad debt charges and an improvement in the margins of our equipment sales. The EBITDA margin for the period climbed 6.9 percentage points from the prior year to 37.8% of revenues.

Claro remained a net gainer from Mobile Number Portability in the first quarter.

 

INCOME STATEMENT - Peru Millons of Soles
		1Q21				1Q20				Var.%
Total Revenues*			1,443				1,294				11.5%
Total Service Revenues			1,046				972				7.7%
Wireless Revenues			1,166				1,064				9.6%
Service Revenues			775				744				4.2%
Equipment Revenues			391				320				22.2%
Fixed Line Revenues			271				227				19.1%
EBITDA			546				400				36.4%
% total revenues			37.8%				30.9%
EBIT			265				140				89.4%
%			18.4%				10.8%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

Total revenues include other income.

 

Peru Operating Data
		1Q21				1Q20				Var.%
Wireless Subscribers (thousands)			11,181				11,543				-3.1%
Postpaid			4,424				4,234				4.5%
Prepaid			6,756				7,309				-7.6%
MOU			383				290				32.0%
ARPU (Sol)			23				21				9.9%
Churn (%)			4.1%				4.5%				(0.4)
Revenue Generating Units (RGUs)*			1,805				1,646				9.6%

*Fixed Line, Broadband and Pay TV.

---

Central America

 

 

Altogether we added 524 thousand wireless subscribers in Central America in the first quarter, almost all of them prepaid. Many clients had to disconnect their lines during the sanitary crisis and have migrated to prepaid plans, which have generally been buoyed by the high level of remittances flowing into the region from the U.S. We are facing strong demand for broadband services as remote work and education persist and mobile has been the primary means of access to Internet in the region. On the fixed-line platform we gained 44 thousand clients, most of them broadband accesses.

Total revenues were slightly lower than a year before with service revenues that were flat after several quarters of declines. Mobile service revenues contracted 0.5% yet, with a marked improvement in prepaid in all major markets with revenue growth accelerating to 6.4% from 2.8% the prior quarter whereas postpaid revenues contracted 7.9%. Fixed-line service revenues expanded 0.5%, with those from broadband increasing 7.0% and those from voice dropping 12.3%.

EBITDA growth accelerated from 7.5% in the fourth quarter to 9.6% in the current period to reach 240 million dollars. At 41.3% of revenues, the EBITDA margin came in 3.7 percentage points above the prior year.

INCOME STATEMENT - Central America Millions of Dollars

 

		1Q21				1Q20				Var.%
Total Revenues*			581				583				-0.3%
Total Service Revenues			513				514				-0.1%
Wireless Revenues			389				392				-0.8%
Service Revenues			331				333				-0.5%
Equipment Revenues			58				60				-2.6%
Fixed Line Revenues			187				187				0.2%
EBITDA			240				219				9.6%
% total revenues			41.3%				37.5%
EBIT			100				78				28.6%
%			17.2%				13.3%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

Total revenues include other income.

Central America Operating Data

		1Q21				1Q20				Var.%
Wireless Subscribers (thousands)			15,569				15,469				0.6%
Postpaid			2,291				2,548				-10.1%
Prepaid			13,277				12,921				2.8%
MOU(1)			178				166				7.4%
ARPU (US$)			7				7				-0.4%
Churn (%)			5.4%				6.1%				(0.7)
Revenue Generating Units (RGUs)*			4,291				4,408				-2.7%

*Fixed Line, Broadband and Pay TV. Figures have been adjusted in accordance with the methodolgy used for all AMX operations.

⁽¹⁾ We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

Caribbean

 

 

Our operation in Dominicana added 26 thousand fixed-line accesses and 122 thousand wireless subscribers, 75% more than a year before, of which 102 thousand were prepaid subscribers. Puerto Rico gained 18 thousand wireless subscribers in the quarter compared to disconnections of two thousand in the year-earlier quarter, and saw practically no changes on fixed-line RGUs.

Revenues were up 4.3% in Dominicana as service revenues rose 4.7% year-on-year. On the mobile platform, service revenues increased 4.8% on the back of prepaid revenues that were up 11.0%. Fixed-line service revenues increased 4.5%—improving from 1.7% in the precedent quarter—on the back of an 18.1% increase in broadband revenues. Revenue growth and reductions in selling, marketing and administrative expenses—including bad debt provisions—resulted in a 15% increase in EBITDA to 6.8 billion Dominican Pesos, with the EBITDA margin expanding 4.7 percentage points from the year-earlier quarter.

---

In Puerto Rico, revenue growth accelerated to 12.1%, as revenues reached 223 million dollars in the quarter, with service revenues increasing 7.3%. On the mobile platform we registered service revenue expansion of 16.8% with postpaid revenues growing twice as fast as prepaid. Nonetheless, prepaid revenue growth exhibited a marked acceleration, from 1.0% in the prior quarter to a pace of 9.9% in the present one. On the fixed-line segment, service revenues declined 3.6%. EBITDA rose 47% annually on the back of solid revenue growth and falling selling, marketing and administrative expenses, including bad debt provisions. The EBITDA margin climbed 4.9 percentage points from the year-earlier quarter to 20.8%.

INCOME STATEMENT - Caribbean Millions of Dollars

 

		1Q21				1Q20				Var.%
Total Revenues*			453				435				3.9%
Total Service Revenues			394				388				1.6%
Wireless Revenues			287				264				8.7%
Service Revenues			229				217				5.3%
Equipment Revenues			58				47				24.1%
Fixed Line Revenues			168				174				-3.5%
EBITDA			163				141				15.9%
% total revenues			36.1%				32.3%
EBIT			81				59				36.5%
%			17.8%				13.6%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions.

Total revenues include other income.

Caribbean Operating Data

		1Q21				1Q20				Var.%
Wireless Subscribers (thousands)			6,562				6,312				4.0%
Postpaid			2,092				2,046				2.2%
Prepaid			4,471				4,266				4.8%
MOU(1)			202				219				-8.0%
ARPU (US$)			12				12				2.3%
Churn (%)			3.0%				3.3%				(0.3)
Revenue Generating Units (RGUs)*			2,586				2,516				2.8%

*Fixed Line, Broadband and Pay TV.

⁽¹⁾ We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

United States

 

 

In the first quarter we added 201 thousand subscribers. The figure compares to disconnections of 172 thousand subs in the same quarter of 2020.

Revenues rose 3.8% year-on-year and topped two billion dollars with service revenues rising 3.3% and equipment revenues 7.0% as the COVID-related plans fueled demand for the service. ARPU was up 3.3% to 28 dollars.

EBITDA jumped 59.3% to 185 million dollars, as the EBITDA margin expanded 3.1 percentage points from a year before, to 9.0%.

---

INCOME STATEMENT - United States Millions of Dollars

		1Q21				1Q20				Var.%
Total Revenues			2,062				1,986				3.8%
Service Revenues			1,747				1,692				3.3%
Equipment Revenues			315				294				7.0%
EBITDA			185				116				59.3%
% total revenues			9.0%				5.9%
EBIT			177				98				80.2%
%			8.6%				4.9%

United States Operating Data

		1Q21				1Q20				Var.%
Wireless Subscribers (thousands)			20,883				20,704				0.9%
Straight Talk			9,823				9,473				3.7%
SafeLink			2,034				2,051				-0.8%
Other Brands			9,026				9,180				-1.7%
MOU			675				625				8.0%
ARPU (US$)			28				27				3.3%
Churn (%)			3.2%				3.7%				(0.5)

A1 Telekom Austria Group

 

 

We added a total of 67 thousand mobile subscribers. In the postpaid segment we gained 191 thousand clients, mostly mobile WiFi routers across all countries, and in prepaid we disconnected 124 thousand subscribers, part of which have migrated to postpaid. On the fixed-line platform we gained 29 thousand RGUs. In Austria we had disconnections of low-bandwidth broadband and PayTV accesses, but our operations in Eastern Europe more than compensated with new broadband clients.

Total revenues increased 0.8% to 1.1 billion euros growing in all segments other than in Belarus where they declined because of the depreciation of the ruble vs. the euro. Service revenues were up 0.6% driven by those coming from fixed-line services which expanded 1.8%; those from mobile services were down 0.4%.

EBITDA rose 4.7% year-on-year to 398 million euros. Before restructuring charges it was up 5.7% with rising EBITDA margins in almost all segments. Growth was driven by operational efficiencies that more than offset the negative impact of roaming revenues, particularly in Austria as travel restrictions restrained winter tourism. In Austria, EBITDA excluding restructuring costs rose 4.4% year-on-year.

---

INCOME STATEMENT (In accordance to IFRS 16) - A1 Telekom Austria Group 

Millions of Euros

		1Q21				1Q20				Var.%
Total Revenues			1,136				1,126				0.8%
Total Service Revenues			956				950				0.6%
Wireless Service Revenues			519				521				-0.4%
Fixed-line Service Revenues			437				429				1.8%
Equipment Revenues			162				158				2.6%
Other operating income			18				18				-2.3%
EBITDA			398				381				4.7%
% total revenues			35.1%				33.8%
Adjusted EBITDA(1)			419				397				5.7%
% total revenues			36.9%				35.2%
EBIT			163				147				10.8%
%			14.4%				13.1%

For further detail please visit www.a1.group/en/investor-relations

⁽¹⁾ Does not include restructuring charges in Austria.

A1 Telekom Austria Group Operating Data

		1Q21				1Q20				Var.%
Wireless Subscribers (thousands)			21,932				21,306				2.9%
Postpaid			18,014				17,100				5.3%
Prepaid			3,918				4,206				-6.8%
MOU(1)			430				397				8.2%
ARPU (US$)			8				8				-3.1%
Churn (%)			1.4%				1.5%				(0.1)
Revenue Generating Units (RGUs)*			6,079				6,131				-0.9%

*Fixed Line, Broadband and Pay TV.

⁽¹⁾ We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

Exchange Rates Local Currency Units per MxP

 

 

		1Q21				1Q20				Var.%
Euro
End of Period			0.0414				0.0386				7.3%
Average			0.0409				0.0457				-10.7%
U.S.
End of Period			0.0485				0.0425				14.1%
Average			0.0492				0.0504				-2.3%
Brazilean Real
End of Period			0.2765				0.2211				25.1%
Average			0.2693				0.2244				20.0%
Argentinean Peso
End of Period			4.4650				2.7419				62.8%
Average			4.3610				3.1021				40.6%
Chilean Peso
End of Period			35.0318				36.2378				-3.3%
Average			35.6410				40.4554				-11.9%
Colombian Peso
End of Period			181.3620				172.8809				4.9%
Average			174.8920				178.0793				-1.8%
Guatemalan Quetzal
End of Period			0.3744				0.3268				14.6%
Average			0.3817				0.3871				-1.4%
Peruvian Sol
End of Period			0.1824				0.1464				24.6%
Average			0.1803				0.1716				5.1%
Dominican Republic Peso
End of Period			2.7761				2.3401				18.6%
Average			2.8552				2.7185				5.0%

Exchange Rates Local Currency Units per USD

 

 

		1Q21				1Q20				Var.%
Euro
End of Period			0.8525				0.9065				-6.0%
Average			0.8296				0.9069				-8.5%
Mexican Peso
End of Period			20.6047				23.5122				-12.4%
Average			20.3064				19.8341				2.4%
Brazilean Real
End of Period			5.6973				5.1987				9.6%
Average			5.4676				4.4511				22.8%
Argentinean Peso
End of Period			92.0000				64.4690				42.7%
Average			88.5570				61.5281				43.9%
Chilean Peso
End of Period			721.8200				852.0300				-15.3%
Average			723.7388				802.3949				-9.8%
Colombian Peso
End of Period			3,736.9100				4,064.8100				-8.1%
Average			3,551.4216				3,532.0353				0.5%
Guatemalan Quetzal
End of Period			7.7150				7.6847				0.4%
Average			7.7519				7.6769				1.0%
Peruvian Sol
End of Period			3.7580				3.4420				9.2%
Average			3.6617				3.4034				7.6%
Dominican Republic Peso
End of Period			57.2000				55.0200				4.0%
Average			57.9788				53.9189				7.5%

Glossary of Terms

ARPU		Average Revenue per User. The ratio of service revenues in a given period to the average number of wireless subscribers in the same period. It is presented on a monthly basis.
ARPM		Average Revenue per Minute. The ratio of service revenues to airtime traffic.
Capex		Capital Expenditure. Accrued capital expenditures related to the expansion of the telecommunications infrastructure.
Churn		Disconnection Rate. The ratio of wireless subscribers disconnected during a given period to the number of wireless subscribers at the beginning of that period.
EBIT		Earnings Before Interest and Taxes, also known as Operating Profit.
EBIT margin		The ratio of EBIT to total operating revenue.
EBITDA		Earnings Before Interest, Taxes, Depreciation, and Amortization.
EBITDA margin		The ratio of EBITDA to total operating revenue.
EPS (Mexican pesos)		Earnings per share. Total earnings in Mexican pesos divided by total shares.

---

Earnings per ADR (US$)		Total earnings in U.S. dollars divided by total ADRs equivalent.
Gross additions		Total number of subscribers acquired during the period.
Licensed pops		Licensed population. Population covered by the licenses that each of the companies manage.
LTE		Long-term evolution is a 4th generation standard for wireless communication of high-speed data for mobile phones and data terminals.
Market share		A company’s subscriber base divided by the total number of subscribers in that country.
MBOU		Megabytes of Use per subscriber. The ratio of wireless data in a given period to the average number of wireless subscribers in that same period. It is presented on a monthly basis.
MOU		Minutes of Use per subscriber. The ratio of wireless traffic in a given period to the average number of wireless subscribers in that same period. It is presented on a monthly basis.
Net subscriber additions		The difference in the subscriber base from one period to another. It is the different between gross additions and disconnections.
Net debt		Total short and long term debt minus cash and marketable securities.
Net debt / EBITDA		The ratio of total short and long term debt minus cash and securities to trailing 12-month income before interest, taxes, depreciation and amortization.
Prepaid		Subscriber that may purchase airtime to recharge a cellular phone. The client does not hold a contract with the company for voice and data services.
Postpaid		Subscriber that has a contract for the use of airtime. The client has no need of activating airtime, it is done so immediately.
SMS		Short Message Service.
SAC		Subscriber Acquisition Cost. The sum of handset subsidies, marketing expenses and commissions to distributors for handset activation. Handset subsidy is calculated as the difference between equipment cost and equipment revenues.
Wireless penetration		The ratio of total wireless subscribers in any given country divided by the total population in that country.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: April 30, 2021				AMÉRICA MÓVIL, S.A.B. DE C.V.
				By:		/s/ Carlos José García Moreno Elizondo
				Name:		Carlos José García Moreno Elizondo
				Title:		Chief Financial Officer