| Title of each class: |
Trading symbol |
Name of each exchange on which registered | ||
| A Shares, without par value |
AMOV |
New York Stock Exchange | ||
| L Shares, without par value |
AMX |
New York Stock Exchange | ||
| 3.625% Senior Notes Due 2029 |
AMX29 |
New York Stock Exchange | ||
| 2.875% Senior Notes Due 2030 |
AMX30 |
New York Stock Exchange | ||
| 6.375% Notes Due 2035 |
AMX35 |
New York Stock Exchange | ||
| 6.125% Notes Due 2037 |
AMX37 |
New York Stock Exchange | ||
| 6.125% Senior Notes Due 2040 |
AMX40 |
New York Stock Exchange | ||
| 4.375% Senior Notes Due 2042 |
AMX42 |
New York Stock Exchange | ||
| 4.375% Senior Notes Due 2049 |
AMX49 |
New York Stock Exchange |
| 20,555 million |
AA Shares | |
| 502 million |
A Shares | |
| 45,582 million |
L Shares |
| Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. | Yes |
✓ |
No |
| ||||
| If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. | Yes |
No |
✓ | |||||
| Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. |
Yes |
✓ |
No |
|||||
| Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). |
Yes |
✓ |
No |
|||||
✓ |
Large accelerated filer | Accelerated filer | Non-accelerated filer |
Emerging growth | ||||||||||||
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. |
Yes |
✓ |
No |
|||||
| U.S. GAAP | ✓ |
International Financial Reporting Standards as issued by the International Accounting Standards Board | Other | |||||||||||
| If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). |
Yes |
|
No |
✓ |
TABLE OF CONTENTS | ||||
(See Form 20-F Cross Reference Guide on page 89) | ||||
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| SELECTED FINANCIAL DATA We prepared our audited consolidated financial statements included in this annual report in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The selected financial information should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements. We present our consolidated financial statements in Mexican pesos. This annual report contains translations of various peso amounts into U.S. dollars at specified rates solely for your convenience. You should not construe these translations as representations that the peso amounts actually represent the U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated. Unless otherwise indicated, we have translated U.S. dollar amounts from pesos at the exchange rate of Ps.20.5835 to U.S.$1.00, which was the rate reported by Banco de México on December 30, 2021, as published in the Official Gazette of the Federation ( Diario Oficial de la Federación On November 23, 2021, we completed the sale of our U.S. operations to Verizon Communications Inc. (“Verizon”), as previously disclosed in our press release furnished on a report on Form 6-K on November 23, 2021. As a result, in accordance with IFRS 5, TracFone Wireless Inc.’s (“TracFone”) operations are classified as discontinued operations for all years presented in the consolidated financial information included in this report. Accordingly, results are presented in a single amount as profit after tax from discontinued operations in the consolidated financial information included in this annual report. Operating and financial information presented herein therefore excludes TracFone, including for periods prior to the sale.We have not included earnings or dividends on a per American Depositary Share (“ADS”) basis. Each L Share ADS represents 20 L Shares and each A Share ADS represents 20 A Shares. |
(1) |
Figures for each year provided represent the annual dividend declared at the general shareholders’ meeting that year. For information on dividends paid per share translated into U.S. dollars, see “Share Ownership and Trading—Dividends” under Part IV of this annual report. |
(2) |
For the years 2019 to 2020 the financial statements were modified for the sale of TracFone. See Note 2 Ac to our audited consolidated financial statements included in this annual report. |
| • | Mexico Wireless; |
| • | Mexico Fixed; |
| • | Brazil; |
| • | Colombia; |
| • | Southern Cone (Argentina, Chile, Paraguay and Uruguay); |
| • | Andean Region (Ecuador and Peru); |
| • | Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama); |
| • | the Caribbean (the Dominican Republic and Puerto Rico); and |
| • | Europe (Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia). |
COUNTRY |
PRINCIPAL BRANDS |
SERVICES AND PRODUCTS | ||
Mexico |
Telcel | Wireless voice | ||
| Wireless data | ||||
| Telmex Infinitum | Fixed voice | |||
| Fixed data | ||||
Europe |
A1 | Wireless voice | ||
| Wireless data | ||||
| Fixed voice | ||||
| Fixed data | ||||
| Pay TV | ||||
| • | Subscription video on demand, providing unlimited access to a catalogue of over 20,900 titles for a fixed monthly subscription fee; |
| • | Transactional video on demand and electronic sell-through, offering the option to rent or buy new content releases; and |
| • | Add-on services such as subscription and other OTT services through a platform payment system, including access to FOX, HBO, Noggin and Paramount+, among others. |
WIRELESS VOICE, DATA AND VALUE ADDED SERVICES (1) |
FIXED VOICE, BROADBAND, DATA AND IT SERVICES (2) |
PAY TV |
OTT SERVICES (3) | |||||
Argentina |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Austria |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Belarus |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Brazil |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Bulgaria |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Chile |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Colombia |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Costa Rica |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Croatia |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Dominican Republic |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Ecuador |
🌑 |
🌑 |
🌑 |
🌑 | ||||
El Salvador |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Guatemala |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Honduras |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Macedonia |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Mexico |
🌑 |
🌑 |
🌑 (4) | |||||
Nicaragua |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Panama |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Paraguay |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Peru |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Puerto Rico |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Serbia |
🌑 |
🌑 | ||||||
Slovenia |
🌑 |
🌑 |
🌑 |
🌑 | ||||
Uruguay |
🌑 |
🌑 | ||||||
(1) Includes voice communication and international roaming services, interconnection and termination services, SMS, MMS, e-mail, mobile browsing, entertainment and gaming applications.(2) Includes local calls, national and international long distance.(3) Includes ClaroVideo and ClaroMúsica.(4) Services provided by non-concessionaire subsidiaries. | ||||||||
• |
Cell sites: spin-off of our towers and related passive infrastructure in Latin America outside of Mexico. See “Acquisitions, Other Investments and Divestitures.” |
• |
Fiber-optic network: |
• |
Submarine cable systems: AMX-1 submarine cable that extends 18,300 km and connects the United States to Central and South America with 13 landing points and also the South Pacific Submarine Cable that extends 7,300 km along the Latin American Pacific coast, connecting Guatemala, Ecuador, Peru and Chile with 5 landing points. Both systems provide international connectivity to all of our subsidiaries in these geographic areas. |
• |
Satellites: |
• |
Data centers: |
Service (“IAAS”), Software as a Service (“SAAS”), security solutions and unified communications. |
GENERATION TECHNOLOGY |
||||||||||||||||
GSM |
UMTS |
LTE |
5G | |||||||||||||
(% of covered population) |
||||||||||||||||
Argentina |
99 | % | 98 | % | 97 | % | - | |||||||||
Austria |
100 | % | 96 | % | 99 | % | 62 | % | ||||||||
Belarus |
100 | % | 100 | % | 0 | % | - | |||||||||
Brazil |
94 | % | 95 | % | 87 | % | 17 | % | ||||||||
Bulgaria |
100 | % | 100 | % | 99 | % | 52 | % | ||||||||
Chile |
97 | % | 97 | % | 98 | % | - | |||||||||
Colombia |
91 | % | 80 | % | 73 | % | - | |||||||||
Costa Rica |
85 | % | 86 | % | 96 | % | - | |||||||||
Croatia |
99 | % | 99 | % | 99 | % | 13 | % | ||||||||
Dominican Republic |
100 | % | 99 | % | 97 | % | 6 | % | ||||||||
Ecuador |
96 | % | 80 | % | 78 | % | - | |||||||||
El Salvador |
91 | % | 88 | % | 87 | % | - | |||||||||
Guatemala |
89 | % | 89 | % | 88 | % | - | |||||||||
Honduras |
81 | % | 82 | % | 72 | % | - | |||||||||
Macedonia |
100 | % | 100 | % | 99 | % | - | |||||||||
Mexico |
94 | % | 95 | % | 93 | % | - | |||||||||
Nicaragua |
72 | % | 72 | % | 50 | % | - | |||||||||
Panama |
82 | % | 90 | % | 86 | % | - | |||||||||
Paraguay |
77 | % | 80 | % | 83 | % | - | |||||||||
Peru |
88 | % | 83 | % | 83 | % | 18 | % | ||||||||
Puerto Rico |
82 | % | 94 | % | 99 | % | 49 | % | ||||||||
Serbia |
99 | % | 98 | % | 98 | % | - | |||||||||
Slovenia |
100 | % | 100 | % | 99 | % | 19 | % | ||||||||
Uruguay |
100 | % | 99 | % | 98 | % | - | |||||||||
| • | On September 13, 2020, we entered into an agreement to sell our wholly-owned subsidiary TracFone to Verizon. On November 23, 2021, we completed the sale of TracFone to Verizon. We received the closing consideration of U.S.$3,625.7 million in cash, which included U.S.$500.7 million of customary adjustment for TracFone’s cash and working capital and 57,596,544 shares of Verizon’s common stock, par value U.S.$0.10 per share. Verizon has asserted post-closing claims under the adjustments and other provisions of this agreement, which may result in payments by us. Subject to TracFone continuing to achieve certain operating metrics (earn-out), Verizon will be required pay up to an additional U.S.$650 million of cash consideration within two years from November 23, 2021. |
| • | In December 2020, our Brazilian subsidiary, Claro S.A. (“Claro Brasil”), together with two other offerors, won a competitive bid to acquire the mobile business owned by Oi Group in Brazil. Pursuant to the transaction, Claro Brasil will pay R$3.6 billion for 32% of Oi Group’s mobile business and approximately 4.7 thousand mobile access sites (representing 32% of Oi Group’s mobile business access sites). Claro Brasil also committed to enter into long term |
agreements with Oi Group for the supply of data transmission capacity. This transaction closed on April 20, 2022. |
| • | In February 2021, our Board of Directors approved a plan to spin off our telecommunications towers and other related passive infrastructure in Latin America outside of Mexico. The spin-off was approved by our shareholders in an extraordinary shareholders’ meeting on September 29, 2021. In the spin-off and the associated corporate restructuring, we will contribute to Sitios a portion of our capital stock, assets and liabilities, mainly consisting of the shares of our subsidiaries holding telecommunications towers and other associated infrastructure in Latin America outside of Mexico, other than Colombia and our telecommunications towers existing in Peru prior to the spin-off. This operation is intended to maximize the infrastructure’s value, as the resulting entity, to be named Sitios Latinoamérica, S.A.B. de C.V. (“Sitios”), will be separate from América Móvil and will have its own management and personnel, who will be exclusively focused on developing, building and leasing telecommunications towers for wireless services. We will have master services agreements with subsidiaries of Sitios under which we will have access to and use of the tower space to provide wireless services. Completion of the spin-off is subject to the fulfillment of conditions that are typical in these type of transactions, as well as the implementation of several previous steps in several of the countries involved in the transaction, including receipt of confirmation from the Mexican Tax Administration Service (Servicio de Administración Tributaria spin-off and the transactions contemplated thereby, among other things, comply with all requirements under Mexican tax law and regulations so that the spin-off and the corporate reorganization arising from it are considered neutral for Mexican tax purposes, and the receipt of all necessary approvals in the applicable countries and the expiration of all legal or statutory waiting periods for its effectiveness in all applicable countries, all of which are outside of our control. |
| • | On September 15, 2021, we announced that we entered into an agreement with Cable & Wireless Panama, S.A., an affiliate of Liberty Latin America LTD., to sell 100% of our interest in our subsidiary Claro Panama, S.A. The transaction excludes (i) all telecommunication towers owned indirectly by América Móvil in Panama and (ii) the Claro trademarks. The agreed purchase price is U.S.$200 million on a cash/ debt free basis. The closing of the transaction is subject to customary conditions for this type of transactions, including obtaining required governmental approvals, and we expect closing to occur during the first half of 2022. |
| • | On September 29, 2021, we announced an agreement with Liberty Latin America LTD. to combine our respective Chilean operations, VTR Communicaciones SpA (“VTR”) and Claro Chile, to form a 50- 50 joint venture. The proposed transaction combines the complementary operations of VTR, a leading provider of high-speed consumer fixed products, such as broadband and Pay TV services, where it connects close to 3 million subscribers nationwide, and Claro Chile, one of Chile’s leading telecommunications service providers with over 6.5 million mobile customers. Completion of the transaction is subject to certain customary closing conditions, including obtaining required regulatory approvals, and we expect closing to occur during the second half of 2022. |
| • | intense competition, with growing costs for marketing and subscriber acquisition and retention, as well as declining customer prices; |
| • | developments in the telecommunications regulatory environment; |
| • | growing demand for data services over fixed and wireless networks, as well as for smartphones and devices with data service capabilities; |
| • | declining demand for voice services; |
| • | increasing capital expenditures in line with our historical capital expenditure levels after a decrease in capital expenditures in 2020 due to pressures from the COVID-19 pandemic; |
| • | our continued strategic focus on controlling operating costs in view of pressures from costs of customer care, the growing size and complexity of our infrastructure and general price inflation; and |
| • | instability in economic conditions caused by political uncertainty, inflation and volatility in financial markets and exchange rates. |
| MEXICAN PESOS PER FOREIGN CURRENCY UNIT (AVERAGE FOR THE PERIOD) FOR THE YEARS ENDED DECEMBER 31, |
||||||||||||
2020 |
2021 |
% CHANGE |
||||||||||
| Brazilian real |
4.1850 | 3.7625 | (10.1 | ) | ||||||||
| Colombian peso |
0.0058 | 0.0054 | (7.1 | ) | ||||||||
| Argentine peso |
0.3070 | 0.2137 | (30.4 | ) | ||||||||
| U.S. dollar |
21.4859 | 20.2768 | (5.6 | ) | ||||||||
| Euro |
24.5080 | 23.9834 | (2.1 | ) | ||||||||
| |
YEAR ENDED DECEMBER 31, 2021 |
|||||||||||||||
| |
OPERATING REVENUES |
OPERATING INCOME |
||||||||||||||
| (in millions of Mexican pesos) |
(as a% of to- tal operating revenues) |
(in millions of Mexican pesos) |
(as a% of total operat- ing income) |
|||||||||||||
| Mexico Wireless |
Ps. | 243,261 | 28.4% | Ps. | 77,784 | 46.8% | ||||||||||
| Mexico Fixed |
102,427 | 12.0 | 21,100 | 12.7 | ||||||||||||
| Brazil |
152,774 | 17.9 | 21,867 | 13.2 | ||||||||||||
| Colombia |
79,673 | 9.3 | 15,165 | 9.1 | ||||||||||||
| Southern Cone |
62,359 | 7.3 | 2,145 | 1.3 | ||||||||||||
| Andean Region |
52,962 | 6.2 | 7,458 | 4.5 | ||||||||||||
| Central America |
48,567 | 5.7 | 8,217 | 4.9 | ||||||||||||
| Caribbean |
39,929 | 4.7 | 8,661 | 5.2 | ||||||||||||
| Europe |
113,838 | 13.3 | 13,421 | 8.1 | ||||||||||||
| Eliminations |
(40,255) | (4.7) | (9,685) | (5.8) | ||||||||||||
| Total |
Ps. |
855,535 |
100.0% |
Ps. |
166,133 |
100.0% |
||||||||||
| |
YEAR ENDED DECEMBER 31, 2020 |
|||||||||||||||
| |
OPERATING REVENUES |
OPERATING INCOME |
||||||||||||||
| (in millions of Mexican pesos) |
(as a% of to- tal operating revenues) |
(in millions of Mexican pesos) |
(as a% of total operat- ing income) |
|||||||||||||
| Mexico Wireless |
Ps. | 232,242 | 27.7% | Ps. | 70,852 | 48.7% | ||||||||||
| Mexico Fixed |
91,589 | 10.9 | 11,204 | 7.7 | ||||||||||||
| Brazil |
168,073 | 20.0 | 25,204 | 17.3 | ||||||||||||
| Colombia |
77,635 | 9.2 | 15,112 | 10.4 | ||||||||||||
| Southern Cone |
56,705 | 6.8 | 1,877 | 1.3 | ||||||||||||
| Andean Region |
53,935 | 6.4 | 8,699 | 6.0 | ||||||||||||
| Central America |
48,195 | 5.7 | 4,005 | 2.8 | ||||||||||||
| Caribbean |
38,624 | 4.6 | 6,701 | 4.6 | ||||||||||||
| Europe |
111,472 | 13.3 | 13,160 | 9.0 | ||||||||||||
| Eliminations |
(38,763) | (4.6) | (11,311) | (7.8) | ||||||||||||
| Total |
Ps. |
839,707 |
100% |
Ps. |
145,503 |
100% |
||||||||||
• |
Capital expenditures - COVID-19 outbreak. Our capital expenditures for 2021 and our budgeted capital expenditures for 2022 are in line with our historical capital expenditure levels. |
• |
Acquisitions - |
• |
Short-term debt and contractual obligations - |
• |
Long-term debt and contractual obligations - |
| and Ps.9.0 billion in purchase obligations. On the same date, we had approximately Ps.73.5 billion in debt and contractual obligations due between 2026 and 2027, including approximately Ps.54.9 billion of principal and amortization, Ps.13.0 billion in long-term lease debt, and Ps.5.5 billion in purchase obligations. On the same date, we had approximately Ps.277.2 billion in debt and contractual obligations due after 2027, including approximately Ps.254 billion of principal and amortization, Ps.11.6 billion in long-term lease debt, and Ps.11.7 billion in purchase obligations. |
• |
Dividends - |
• |
Share repurchases - |