America Movil Q3 2026 Earnings Call Transcript

America Movil (NYSE:AMX) reported third-quarter financial results on Wednesday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

America Movil’s Q3 2026 revenue totaled 251 billion pesos, marking a 7.6% year-on-year increase, with an EBITDA margin of 40.8%.

The company added 3.1 million postpaid subscribers, with significant growth in Brazil, Colombia, and Peru, while experiencing 5 million net disconnections in the prepaid segment due to subscriber base cleanups.

Capital expenditures for the nine months totaled 76 billion pesos, funded by cash flow, which also allowed for a reduction in net debt by 34 billion pesos.

The company reported a net profit of 24 billion pesos, a 7% increase from the previous year, with operating profit up 13.9%.

Strategic initiatives include a focus on upselling, particularly in the postpaid segment, and enhancing network infrastructure in markets like Argentina and Colombia.

Management highlighted the impact of exchange rates and the U.S. interest rate hike on financial results, while expressing optimism about future growth prospects in regions like Eastern Europe and Central America.

The company is exploring M&A opportunities, including a pending acquisition in Peru, and is focused on maintaining competitive pricing strategies amid varied market dynamics.

Full Transcript

OPERATOR

Good morning. My name is Caleb and I will be your conference operator today. At this time I would like to welcome everyone to the America Movil third quarter 2026 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by number one on your telephone keypad.

If you would like to withdraw your question, press star one again. Thank you. I will now turn the call over to Ms. Daniela Lecuona, head of Investor Relations.

Daniela Lecuona (Investor Relations and Sustainability Officer)

Good morning everyone. Thank you so much for joining us today to discuss our third quarter financial and operating results. We have on the line Mr. Daniel Hajj, CEO, Mr. Carlos Garcia Moreno, CFO, and Mr. Oscar Von Hauske, COO.

Daniel Hajj (Chief Executive Officer)

Thanks, Daniela. Welcome everyone. Thanks for being here. In the third quarter 2026 conference call, Carlos is going to make a summary of the results.

Carlos Garcia Moreno (Chief Financial Officer)

Thank you, Daniel. Good morning everyone. Well, we had a desert border with oil prices rising to a new peak in mid-September, above the dollars per barrel of WTI. Long-term inflation expectations were deeply affected, pushing market rates up, with the yield on 10-year Treasury notes accelerating its gains from the last week of August. These factors, together with a particularly strong nonfarm payroll report for that month that exceeded expectations, were the main drivers of the Fed’s decision on September 16 to increase its policy rate by 25 basis points.

The higher rates in the US supported a recovery of the dollar versus some currencies in our region of operations. The Mexican peso gave up in September all the gains it had posted against the US dollar in the first two months of the quarter, ending the period down approximately 2.1%. The Colombian peso managed to gain 3% as part of it, while the Brazilian real and the euro remained practically unchanged over the quarter. In the third quarter we added 3.1 million postpaid subscribers, roughly the average of the prior four quarters, as Brazil led the way with 743,000 additions. Colombia followed with 248,000, Peru with 229,000, Mexico with 144,000, and Argentina with 126,000. In the prepaid segment we recorded 5 million net disconnections, primarily reflecting subscriber base cleanups in Mexico and Colombia. Notwithstanding the cleanups, we managed to post net prepaid subscriber gains in Eastern Europe, Argentina, Central America and Ecuador that totaled 745,000 subscribers.

In the fixed-line segment we connected 390 new broadband accesses. Brazil was the main contributor with 94,000 additions, followed by Colombia with 67,000 and Argentina with 53,000. Pay TV net additions totaled 50,000 units, with Eastern Europe and Central America accounting for most of the growth. Mobile postpaid and fixed broadband accesses remain the main drivers of customer growth, increasing 8.9% and 5.6% respectively compared to the year-earlier quarters.

America Movil’s third quarter revenue totaled 251 billion pesos, a 7.6% year-on-year increase, with EBITDA reaching a 40.8% margin, a 0.5 percentage-point increase from a year before. At constant exchange rates, the service revenue was up 5.3% and EBITDA 6.7%. EBITDA continued to grow faster than service revenue. Service revenue growth resulted from mobile service revenue increasing 6.3%, very much in line with the pace of the prior three quarters, and fixed-line revenue growth accelerating to 3.7% from 2.7% in the prior quarter.

On the mobile platform, postpaid activities revenue increased 7.5% year on year at constant exchange rates, also very similar to that of the prior three quarters, while prepaid revenue rose 4.3%, slightly less rapidly than the pace of the preceding quarter but very much in line with the prior quarters. Postpaid growth accelerated in Mexico, Brazil and Colombia to 8%, 8.5% and 12% respectively. Growth rates in Chile and Peru also moved up to 11.5% and 7.5% respectively.

Prepaid service revenue growth decelerated in Mexico, partly reflecting the subsidy registration process mandated by the regulator, as well as in Brazil and Austria, but accelerated in Eastern Europe, Central America, the Caribbean and Ecuador. Operating profit totaled 57 billion pesos, up 13.9% from the year-earlier quarter, outpacing EBITDA growth as depreciation and amortization charges rose only 3%, although net interest expense was down 11.2% year on year. Our comprehensive financing cost increased as a result of foreign exchange losses of 3.6 billion pesos in the period compared to foreign exchange gains the prior year. We posted a net profit of 24 billion pesos in the quarter, 7% higher than in the year-earlier quarter, bringing our year-to-date net income to 72 billion pesos.

In the nine months to September, our capital expenditures totaled 76 billion pesos. They were fully funded by our cash flow, which also enabled us to reduce net debt in cash flow terms by 34 billion pesos and distribute 27 billion pesos to our shareholders by way of share buybacks and dividends. Our labor obligations came down by 13 billion pesos in the quarter. Our free cash flow was 41% higher than that of 2025, which in turn had been 47% greater than that of the year before.

A great share of the cash flow went to the reduction of our net debt, such that at the end of the quarter our net debt stood at 400 billion pesos, excluding leases. It was equivalent to 1.21 times the debt to EBITDA after leases, down from 1.5 times at the end of 2025. So with this I will pass the floor back to Daniel so that we can begin the Q&A session. Thank you.

Daniela Lecuona (Investor Relations and Sustainability Officer)

Thank you, Carlos. And we can start with the Q&A.

OPERATOR

At this time I would like to remind everyone, in order to ask a question, please press star, then the number one on your telephone keypad. We’ll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Marcelo Santos with JPMorgan. Your line is open. Please go ahead.

Marcelo Santos (Analyst at JPMorgan)

Hi, good morning. Thanks for taking my questions. I think the first question I wanted to approach is the M&A pipeline and outlook for buybacks. I think in the investor day in New York, you mentioned that that was a priority. I want to know how is that pipeline, if there is room to increase in buybacks. I know we have been creating so far, but I wanted to get a better feeling about the outlook there. And the second question is about Mexican broadband. I think there are a couple of different moving parts. I mean, this was a quarter where the net adds were much lower than in previous quarters, so just wanted to understand what’s happening there. But at the same time the revenue growth was much stronger than in previous quarter, so just want to understand these moving parts in Mexican broadband. Thank you very much.

Carlos Garcia Moreno (Chief Financial Officer)

Thank you, Marcelo. Well, you were mentioning the rest of the where we provided guidance for the period ’26 to ’28, right? Here we stated a leverage ratio that we intended to remain within, which was 1.2 times to one and a half, which is basically where we have been. And we said this had also to accommodate the share buyback, overall distributions, plus the M&A. In this quarter we are going to have an important amount that we have to accommodate in the M&A front, which is the consolidation of Esso. As you know, the total value of equipment announced is 1.4 billion reais, although we still have not completed the tender offer that should be completed fully just after the turn of the year. But for the most part, most of the 1.4 billion will be accounted for in the last quarter. And then also we have the last payment of dividends which will take place in a couple of weeks, two, three weeks, which is in the neighborhood of 17 billion pesos.

Okay, so those are the things that we have in the immediate period. But as I said, you know, the guidance that we provide is basically for the next two years as well. And we don’t have anything more in the M&A pipeline other than the acquisition in Peru that is waiting for regulatory approval, likely to be received until the second half of the year, and we don’t have anything else.

Daniel Hajj (Chief Executive Officer)

And Colombia that we think that it could be at the end of this year. And on the Mexico broadband, Oscar can talk a little bit more, but I can tell you that we have been growing good the last quarters and what we do this last quarter, we cleaned a little bit also our base, people not paying or not consuming, and we cleaned it up. So that’s the reason why revenues are increasing and the net adds are not as previous quarters.

Oscar Von Hauske (Chief Operating Officer)

I will add that we increased the speed of all the customer base to be more competitive in the market. And we are focused more on churn as well and upselling the customer. That’s why we had a good increase in revenue.

Daniel Hajj (Chief Executive Officer)

And we have how many if they are already in fiber?

Oscar Von Hauske (Chief Operating Officer)

94% of the customers are already connected with fiber.

Marcelo Santos (Analyst at JPMorgan)

Okay. Thanks very much.

Daniela Lecuona (Investor Relations and Sustainability Officer)

Thank you. Thank you, Marcelo.

OPERATOR

Your next question comes from the line of Fanny Kanamuri with HSBC. Your line is open. Please go ahead.

Fanny Kanamuri (Analyst at HSBC)

Thanks for taking my questions. The first question is on Argentina. You seem to have a very strong momentum there. But also there is a new operator now after Telecom Argentina has divested its assets. So how are you seeing the competitive scenario there? And what do you expect from this new competition in Argentina? The second question is more accounting related. In your cash flow statements I observed that your taxes that you paid this year are lower than last year in the first nine months. Could you please specify what is driving it? Are you seeing better realization from these taxes?

Daniela Lecuona (Investor Relations and Sustainability Officer)

Thank you.

Daniel Hajj (Chief Executive Officer)

Talking a little bit about Argentina. Well, yes, I think it was a very good quarter for Argentina. We have been investing for a long time. We have a very good 5G network. We have also a lot of broadband. The Telefonica and Telecom has merged. I think they already approve it, but they have been, we know that since maybe one year. So I think it’s a good market, the economy is improving, things are going good with us, so we are taking advantage on that.

We have good quality, good networks, good distribution, a very good data center for corporate businesses. And that’s the reason why we are growing there.

Carlos Garcia Moreno (Chief Financial Officer)

And on the question of the taxes paid, they basically have to do, you know, partly with some monies that we received back from the tax authorities in some countries, Mexico, partly something having to do some limited measures that we’ve done and then something having to do basically with the cash flow during the year, how much you pay throughout the year vis-à-vis how much you pay in the annual amount. So when you pay too much during the year based on the formula that we have in different countries, then at the moment that you present your annual returns, then you basically get some credit back.

Okay. So it basically has to do with that.

Daniel Hajj (Chief Executive Officer)

And adding a little bit more on Argentina. They approved the merge and the remedies. We understand that there’s a new company called MetroTel that’s going to move 6 million subscribers. There’s not going to be a new network. I think it’s going to be like an MVNO. Two hundred thousand broadband subscribers, and they have to do it in 18 months. Well, there’s a lot of things going on in Argentina, but we are well prepared to still grow, and we are good in corporate business. We have a very good fiber network, doing good in broadband and in 5G, and the spectrum and the network also quality. We’re doing okay. So see what’s going to happen.

Fanny Kanamuri (Analyst at HSBC)

Thanks for answering my questions.

Daniela Lecuona (Investor Relations and Sustainability Officer)

Thank you.

OPERATOR

Your next question comes from the line of Walter Piecyk with LightShed. Your line is open. Please go ahead.

Daniel Hajj (Chief Executive Officer)

Well, difficult to say. I think AT&T was a strong competitor to a lot of things. Well, it’s one of the biggest companies in the U.S. and did a lot of things in Mexico. I think Televisa is also going to be a strong competitor. We think that’s going to happen. But at the end of the day, we need to do what we have been doing for a long time. We need to have the best network, good investments, 5G coverage, good quality. We have almost 100 customer care centers.

Good to take care of the people, our customers. So all of this, the distribution with Telcel is a very strong brand in Mexico. So all of that we need to follow and still do what we have been doing. We don’t know exactly what they are going to do, what they are going to change, or what’s going to be their strategy. Let’s see what’s going to happen when they authorize and take the operation of the company. As I told you, AT&T was a strong competitor.

And I’m sure that Televisa is going to be also a strong competitor. So we still need to do what we have been doing, reinforce our investments, train our people, more salespeople, more distributors, all of that. We have to still focus on that and do what we have been doing for the last years.

Carlos Garcia Moreno (Chief Financial Officer)

I’m sorry, sorry. What you see this year, we have less Capex and it’s exactly because of what you are saying. We get Capex in dollars to the subsidiaries and then the movement of the currencies makes that we have less Capex in pesos. So at this time we don’t need to move the Capex to do more. Some countries are exceeding a little bit their budgets, other ones they are not exceeding. So overall we said 7 billion, 5% plus, 5% less. And it’s where we are.

And I think for next year we’re going to have the same $7 billion, something like that. We are still making—I don’t know if we need to do a little bit more or a little bit less. We haven’t finished our budget, but no major changes in Capex. So that’s what we have been doing and what we’re budgeting for next year.

Daniel Hajj (Chief Executive Officer)

Thank you.

OPERATOR

Just a reminder, if you would like to ask a question, please press star then the number one on your telephone keypad. Your next question comes from the line of Gustavo Ferris with UBS. Your line is open. Please go ahead.

Gustavo Ferris (Analyst at UBS)

Hi everyone, thanks for taking my questions. So two on my end on Brazil competition. We see Brazil mobile trends improving this quarter. Do you believe the competitive environment is stabilizing, or are promotional pressures still increasing? And my second one on convergent offers. In Brazil we’ve seen mobile service revenue accelerating but fixed service revenue has slowed down. So my question is, as convergence becomes more relevant, do you believe investors should focus more on the total service revenue and not only on mobile service revenue alone? Thank you.

Daniel Hajj (Chief Executive Officer)

Well, let’s talk a little bit. In Brazil we have a lot of competition, there’s no doubt. There are different competitors in mobile, and we have other competitors in broadband, fiber, TV. So it’s a lot of competition there. If you are asking, I think in mobile we are stabilizing a little bit the promotions, but we don’t know what is going to happen in the fourth quarter. It’s coming Christmas and all of that. So we don’t know what is going to happen.

I don’t know what the competitors are going to do, but I think all of them want to have a long-term view. Maybe they have promotions, but there will be some promotions not reducing price for a year or two years. So let’s see what we’re going to get in the fourth quarter in promotions. In the broadband business and the TV business, as you know, there’s a lot of companies with fiber—they call them fibreros—and ISPs in Brazil. So we are growing, good, in broadband subscribers. That’s good for us. And maybe we have more promotions than we used to do, but those promotions should have some time and then the revenue will come later. We are working very hard because we are just taking Desktop on 1st of October.

So I think we have a lot of synergies and we’re going to have also good synergies on the commercial side, where we can sell to these customers other products that we have, and to some postpaid or mobile customers that we have we can sell, where we have fiber, this new—because Desktop has around 4.8 million homes passed, and more than half of that we are not in those areas; a greenfield, exactly. So we’re going to have a lot of opportunities there and that’s what we’re focusing on.

So these next six months we want to integrate the company and take advantage as much as possible of all these Desktop subscribers that we have, and in mobile where we don’t have a footprint of fiber, to give an offer of fiber too.

Carlos Garcia Moreno (Chief Financial Officer)

And just a comment. We haven’t made any changes in the allocation of fixed-line revenues as per the different services. So, between broadband and pay TV and voice, we haven’t made any changes in the way we allocate.

Gustavo Ferris (Analyst at UBS)

All right, very clear. Thank you, guys.

Daniel Hajj (Chief Executive Officer)

Thank you.

OPERATOR

Your next question comes from the line of Rogerio Araujo with Bank of America. Your line is open. Please go ahead.

Rogerio Araujo (Analyst at Bank of America)

Hi guys, thanks a lot for the opportunity. I have a follow-up on the Brazilian market regarding pricing outlook and also new sales autonomy. Given the limited front-book price increases this year, how do you see the pricing outlook for next year? And if you could be more specific on unlimited WhatsApp in prepaid as well—we noticed that Vivo and then TIM took it out from their plans—if Claro could follow, and if there is any expectation of prepaid price increases after several years of flattish prices.

And also, if you could tell us a little bit on the strategy for pricing of Nucelle—if they have full autonomy or if Claro participates in those decisions—and what to expect for 2027. Thank you so much.

Daniel Hajj (Chief Executive Officer)

The first one, Nucelle—I think we have an agreement with them, and they can do whatever they want to do inside this agreement. They can decide their prices alone, but if they do—let’s say if they reduce the price—I don’t think we’re going to reduce the cost. So they are going to manage their prices in the area that they can do it. That’s the agreement that we have with Nucelle. I think they are going good, they have a good customer base, and they are still growing and doing good as an MVNO.

Also, Nucelle is doing okay on the promotions. In WhatsApp and prepaid promotions, sometimes it’s very difficult to increase the price of the card. So I think it’s better, if you want to increase the prices, to take out some promotions, and that’s what we do on the WhatsApp inside the card. So you take promotions and it’s a little bit increasing the price. So I think that’s more or less the way to do things in prepaid, because if you sell at 100 reais, a card is difficult to do it at 103, so it’s not so easy.

You can do it, but it’s not so easy. Sometimes it’s better—I’m not saying always—sometimes it’s better to reduce the… raise the time of the card. So that’s a way to increase price, or take out some promotions, or increase the card, or take out some gigs, or put… So there’s a lot of things. And in postpaid, well, you can increase. I don’t know—I can lie to you if I tell you what is going to be our price strategy for next year. Of course there’s inflation in Brazil, costs are increasing, but I don’t know if we are going to be allowed—allowed means competition—to increase or not increase prices. So still we haven’t discussed that, and we’re sure that costs are increasing, but we don’t know still if we are going to increase or when we are going to increase prices or take out some promotions.

What I can tell you is that the promotions in broadband are high, and we will remain competitive and do what we need to do to be competitive in all the segments in Brazil. That’s what we do and that’s what we’re going to do this year and next year.

Rogerio Araujo (Analyst at Bank of America)

Okay, that’s very clear. If I may, one follow-up on the agreement with Nucelle that you mentioned. You mentioned the cost—you know, if they reduce price, not necessarily this cost will reduce—but is this cost with Claro increasing by inflation on an annual basis or any other rate? Is there automatic inflation pass-through on those costs?

Daniel Hajj (Chief Executive Officer)

I don’t remember the agreement—I don’t remember the agreement that we have with Nucelle. I don’t know if it’s inflation or if every two years… I don’t know, I don’t remember really the agreement that we have with them.

Rogerio Araujo (Analyst at Bank of America)

Okay, no worries. Fair enough. Thanks very much and congratulations on the results.

Daniel Hajj (Chief Executive Officer)

Thank you. Thank you very much.

OPERATOR

Your next question comes from the line of Jesus Roma with Global Data. Your line is open. Please go ahead.

Jesus Roma (Analyst at GlobalData)

Hello, good morning. Congratulations on the results and thank you for taking my questions. I have a couple of questions about the dynamics of postpaid and prepaid in Mexico, and I wonder if you could add more color. The first one is regarding postpaid: I see that you had a substantial growth in net adds, over 140,000, which is one of the best quarters lately, and 8% increase in postpaid revenue. I wondered if you could add some color on what are the dynamics that are pushing postpaid forward in terms of both subscriptions and revenue—if it’s related to IoT, to renewals, or clients demanding more data.

And on prepaid, just to clarify if part of the net losses that you posted for this quarter are related to the prepaid registration mandate in Mexico. Thank you.

Daniel Hajj (Chief Executive Officer)

Well, we’re talking about postpaid. I think in postpaid we’re doing excellent. I can tell you that all the customers that are coming to renew their plan in our customer care centers are moving. Half of them are moving to a better plan. That’s good ARPU and that’s the reason why revenues are increasing. We have a source of revenue that is new customers. But another source of revenue is that the customers are jumping to a new plan and that’s better for them, better for us.

The second is a migration from prepaid to postpaid. We’re having more and, since the registration of the number, I think more people are coming from prepaid to postpaid, and people are using also more from 4G to 5G. So I think we are the only ones who have a very good 5G and coverage network in Mexico. And that’s what you are seeing. So that’s more or less what we have in postpaid. And in prepaid, well, we have disconnections, and there are disconnections that sometimes it’s people that only use one time — they take the card and move it. So those are people that we’re disconnecting. And we still are in the process of registering all the numbers. Every 15 days it’s a new number that people have to register until the end of December. And, well, still a long way to go there. But, yes, people are — some people are not — people that are consuming are not also ones to register.

But, well, that’s what we have there. And I think at the beginning we are going to have a little bit of reduction on the prepaid revenues, but in the mid run I think this is going to recover. So that’s what we have. So people are taking more time to register their number. But at the end of the day I hope, and I don’t think, that people are going to stay without a phone or without being connected because of the registration. So it’s going to take time.

Maybe in the short term we can have, like, a slow down a little bit on the revenues on prepay, but in the mid and long term we’re going to recuperate that. So that’s the way I’m seeing things. Okay. On the other side, on postpaid things are going very well and people are consuming and upselling and doing good.

Carlos Garcia Moreno (Chief Financial Officer)

Just to add to what Daniel is saying, our postpaid ARPU growth in Mexico in the quarter — we see that for the last three years at least we are seeing a continuous acceleration of postpaid ARPU growth, which is quite significant.

Daniel Hajj (Chief Executive Officer)

Yes, we’re having more corporate. The corporate is helping a lot on the fixed, on all these data center, cloud, and all these services — it’s growing very good this quarter in the fixed and also is doing good in the mobile. So we are, we are, we are — yes. Yes, as you are asking, yes, it’s been good — the corporate customers. Thank you.

OPERATOR

Your next question comes from the line of David Lopez with New Street Research. Your line is open. Please go ahead.

David Lopez (Analyst at New Street Research)

Hi. Thanks for the opportunity, and congrats on your results. Just one question on Colombia, please. It’s another very strong quarter for Colombia, and I was wondering if you can comment on what’s working well there. Also, comment on the ARPU growth this quarter and how sustainable this kind of performance is in Colombia. Thank you.

Daniel Hajj (Chief Executive Officer)

Well, in Colombia, if we go back five years ago, when one entered they did crazy promotions with a lot of data that surged the market. But, well, that passed, and since then we have been growing and we have been doing good. We do, and we focus as we’re focusing in Mexico: good network, good customer retention, good upselling. We have a lot of upselling there, very good upselling. And one of the things that we have is we have the biggest 5G network because they launched — well, they sold the spectrum — and we started to do 5G since the beginning.

So we didn’t have to wait to build the network. We already invested in the 5G network. So we were the first in Colombia in the market, and that is helping us. That’s the reason we have a very good coverage. We have a good network, and we’re growing also, very, very, very. So that’s what you are seeing in Colombia.

David Lopez (Analyst at New Street Research)

Very clear, thank you. And maybe a quick follow-up: while you mention spectrum, what is the next big auction coming in your main markets, please?

Daniel Hajj (Chief Executive Officer)

Where? In which country?

David Lopez (Analyst at New Street Research)

Across your markets. Which one will be the largest one coming?

Daniel Hajj (Chief Executive Officer)

I think we have — I don’t remember exactly — but I think we have something in Honduras for the end of this year to do 5G, but nothing — I don’t remember all the other auctions.

David Lopez (Analyst at New Street Research)

Okay, thank you very much.

Daniel Hajj (Chief Executive Officer)

We don’t need it. We don’t need it at this time. So. Good.

David Lopez (Analyst at New Street Research)

Very clear. Thanks.

OPERATOR

Your next question comes from the line of Ernesto Gonzalez with Morgan Stanley. Your line is open. Please go ahead.

Ernesto Gonzalez (Analyst at Morgan Stanley)

Hi, thank you for taking my question. Just talking about the smaller markets — you also delivered strong results in Peru and Ecuador. Anything to call out here, or any of the other markets we didn’t discuss? Thank you.

Daniel Hajj (Chief Executive Officer)

I think — well, I think we’re doing very good in Ecuador. Ecuador is growing good. We have a strategy on four-play. We’re doing fiber. It cost us a lot of time to understand the fixed business in Ecuador, but I think we have been having, like, maybe two years doing good, increasing our fiber footprint, taking good customers, giving TV. So all of that is working good. And the economy of Ecuador is also improving. That’s why we have a very good increase in the — postpaid, sorry, prepaid — ARPU also increasing revenues.

So things are going better in the economy, and we are doing better in fixed and in mobile, starting also in corporate customers there. So, well, Ecuador has been doing good. All Central America — we have outstanding results in Central America. Growing in all the countries, moving a lot more on fixed, moving in 5G. All of Central America is doing good, reducing a lot of costs and expenses. All these small countries — we are really — not the small countries — and something that we haven’t talked about is that we have been improving a lot in cost and efficiencies with some AI platforms that we think are very convenient for us.

So we are understanding more our customer and doing a lot more things on the call centers, cost side, and all of that. So we are having, like, a big strategy in cost control with all AI platforms. And Oscar can talk a little bit on that.

Oscar Von Hauske (Chief Operating Officer)

No, as you mentioned, we are focused on the main agents that help us to reduce costs, and we are more focused on customer interactions and some parts of the network that have been helping to reduce costs in call centers and maintenance in the network, and contact the customer faster and solve the problem faster. On the, let’s say, broadband, AI is helping us to go faster to solve the problem, to attend our customer. All of these things we’re improving, and we have a three-year plan to improve every day on all of these areas.

So that’s — Peru is doing also good. We have more competition, but Peru is doing also good. We have the third operator that is very aggressive in pricing, but we have convergence, we have all of that, and we hope that we can close our company that we bought and consolidate it as soon as possible in Peru.

Carlos Garcia Moreno (Chief Financial Officer)

Also, what Daniel was saying on Central America — just to give you an idea — service revenue growth in Central America in the quarter was 11.4%, and EBITDA growth again in the region was 16.1%. Okay, so Central America, which is a collection of small countries, as you say, but as a bloc it’s a very significant bloc, doing extremely well. And, you know, it’s an area with very stable currencies and very resilient growth. Yeah, good.

Ernesto Gonzalez (Analyst at Morgan Stanley)

Really clear. Thank you.

Daniel Hajj (Chief Executive Officer)

Thank you.

OPERATOR

Your next question comes from the line of Emilio Fuentes with GBM. Your line is open. Please go ahead.

Emilio Fuentes (Analyst at GBM)

Hi. Thank you for taking my question. My question is regarding the Televisa acquisition of AT&T. There’s been rumors circling around of how Televisa could bundle both its current fixed services with AT&T mobile services. Related to this, do you expect to receive permission to also offer both fixed and mobile service bundled in Mexico? Thank you.

Daniel Hajj (Chief Executive Officer)

Well, I think, yeah, they already have — they are going to have — all the services, and I hope the government will allow us to do all the services also. So I think they should do it. No, there’s no reason not to do it. And as I told you, and as I told you again, I think strategies are okay, but then you have to have a lot more things — not only a bundle strategy — then you have to have good coverage, good networks, good distribution, customer care centers.

You have to have a lot of things. And, well, that’s something that we have been working on and we’re going to still work on that.

Emilio Fuentes (Analyst at GBM)

Thank you again.

Daniel Hajj (Chief Executive Officer)

Thank you.

OPERATOR

We have reached the end of the Q and A session. I will now turn the call back over to Mr. Daniel Hajj for final remarks.

Daniel Hajj (Chief Executive Officer)

I just thank everyone for being in the call. Thank you very much.

OPERATOR

Thank you all. This concludes today’s conference call. You may now disconnect.

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