Earnings 6-K

Date: April 30, 2020

AMÉRICA MÓVIL, S.A.B. DE C.V.

/s/ Carlos José García Moreno Elizondo

Carlos José García Moreno Elizondo

Chief Financial Officer

6-K 1 d904993d6k.htm EARNINGS 6-K Earnings 6-K

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 2020

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): ☐

América Móvil’s first quarter of

2020 financial and operating report

Mexico City, April 28^th, 2020 - 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 2020.

●

First quarter figures in this report show limited impact so far from the pandemic. Our consolidated results were strong, with all our main operations performing well. However, after contingency measures were enforced in all countries, most of them around mid-March, operational trends began to change. There is no clarity as to its duration and magnitude overall or its impact in the countries where we operate.

●

In América Móvil we have been fully committed to ensuring the continuity of our top-quality services, prioritizing the health and well-being of our clients and employees and adapting our processes and commercial plans to accommodate the needs of our subscribers. We will continue to work together with our various stakeholders to this end.

●

We ended March with 283 million wireless subscribers after incorporating 3.5 million subs from the acquisition of Nextel. Organically, we gained 1.4 million mobile postpaid subscribers in the first quarter, including 874 thousand in Brazil and 215 thousand in Mexico. Our postpaid base increased 7.8% year-on-year, while prepaid was down 2.6%.

●

Fixed-broadband is still the main driver on the fixed-line platform; we connected 432 thousand new accesses, including 107 thousand in Brazil and 105 thousand in Mexico.

●

Revenues of 250 billion pesos were up 1.8% in Mexican peso terms. At constant exchange rates, service revenues expanded 5.0%—the fastest pace in over a year.

●

Mobile postpaid and fixed-broadband were the main drivers of revenue growth, increasing 13.6% and 7.8%. Prepaid service revenue expanded 3.9%, with Mexico, Colombia and Dominicana seeing 13% increases. Mobile ARPU rose in most countries from the year-earlier quarter driven by data services.

●

EBITDA came in at 77.6 billion pesos in the quarter and was up 2.9% in Mexican peso terms and 8.3% at constant exchange rates, with EBITDA rising faster in Mexico, 11.9%; Brazil, 7.5%; and Colombia, 8.2%.

●

Our operating profit came in at 39.0 billion pesos, having increased 9.9% from the year-earlier-quarter. However, after financing costs of 79.6 billion pesos—driven by foreign exchange losses stemming from the devaluation of the Mexican peso and other latam currencies vis-a-vis the U.S. dollar and the euro—we posted a net loss of 29.4 billion pesos in the quarter.

●

Our net debt ended March at 817 billion pesos. Under IAS17 our net debt to EBITDA ratio stood at 1.87x. In cash flow terms it was up 24.6 billion pesos year-to-date—mostly on account of seasonal effects on working capital—helping us fund our capital expenditures.

América Móvil Fundamentals



	1Q20		1Q19

Earnings per Share (Mex$)⁽¹⁾		-0.45		0.30

Earning per ADR (US$)⁽²⁾		-0.45		0.31

EBITDA per Share (Mex$)⁽³⁾		1.18		1.14

EBITDA per ADR (US$)		1.19		1.19

Net Income (millions of Mex$)		-29,381		19,553

Average Shares Outstanding (billion)		66.00		66.03

⁽¹⁾ Net Income / Average Shares Outstanding

⁽²⁾ 20 shares per ADR

⁽³⁾ EBITDA/ Average Shares Outstanding

América Móvil’s Subsidiaries as of March 2020




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		98.5%

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		16.1%

Austria	Telekom Austria	wireless/wireline		51.0%

The reported figures for Argentina corresponding to the first quarter of 2020 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 America Movil’s consolidated figures will exclude Argentina to ensure consistency.

Relevant Events

On April 24, 2020 we announced that our shareholders approved the payment of an ordinary dividend of MXP$0.38 per share, payable in cash; series “L” shares of AMX; or a combination thereof, according to the election of each shareholder. The dividend will be payable in two installments of MXP$0.19 each, on July 20 and November 9, 2020 and they also approved to allocate an amount equal to MXP$6,000’000,000 as its buyback program for the April 2020—April 2021 period, such amount includes the balance of the buyback program fund as that date.

América Móvil on COVID-19

The unprecedented health crisis arising from the spread of the Coronavirus will result in a severe global economic downturn that will impact substantially most countries according to the forecasts of various international banks and multilateral institutions. There is no clarity as to its duration and magnitude overall or its impact in the countries where we operate. The financial resilience of our company and its vast and critical infrastructure after a long period of large investment are important assets in these times.

It has become increasingly evident that telecommunication services are critical for companies, families and individuals alike. In América Móvil we have been fully committed to ensuring the continuity of our top-quality services, prioritizing the health and well-being of our clients and employees. We have adapted our processes and commercial plans to accommodate the needs of our subscribers and we have actively supported all government measures related to our industry.

First quarter figures in this report show limited impact so far from the pandemic. Rather the opposite: our consolidated results were strong, with all our main operations performing well. América Móvil entered this COVID-19 crisis with a solid balance sheet after a long period of deleveraging and remains committed to maintaining a low leverage ratio. We have drawn our committed credit facilities to ensure that we can continue to service our debt and preserve optimal liquidity for the foreseeable future. As for our cash flow and profitability we aim to protect them by adjusting our spending—opex, capex and working capital—as need be.

Access Lines

We ended March with 283 million wireless subscribers after incorporating 3.5 million subs from the acquisition of Nextel in Brazil. Organically, our subscriber base was up 0.6% after net additions that were just shy of one million. This figure comprises 1.4 million postpaid net gains and 442 thousand prepaid disconnections. Our postpaid base was up 7.8% organically and 12.0% after the integration of Nextel, reaching 94 million subs. Brazil led the way in terms of postpaid growth after adding 874 thousand subs followed by Mexico with 215 thousand. The prepaid base ended the quarter with 189 million subs, 2.6% below last year.

After adding 78 thousand RGUs in the quarter we finished with 81.4 million RGUs in the fixed-line segment. We connected 432 new broadband accesses including 107 thousand in Brazil and 105 thousand in Mexico. In the PayTV segment we registered disconnections of 141 thousand in the quarter, and in fixed voice the number of lines came down by 213 thousand.

General trends across our operations show a deceleration of net additions in March when compared to the first two months of the year that relates to the sanitary crisis and the lock-down in several countries in which our stores and customer service centers have been partially open. On the fixed-line platform, broadband was the exception in several countries including Mexico, Brazil and Colombia where new connections were higher in March given the advent of the restrictions on mobility and the increasing need to remain connected at home.

Wireless Subscribers as of March 2020


		Total⁽¹⁾ (Thousands)

Country	Mar ’20		Dic ’19		Var.%		Mar ’19		Var.%

Argentina, Paraguay and Uruguay		24,667		24,634		0.1%		24,370		1.2%

Austria & CEE		21,306		21,296		0.0%		20,941		1.7%

Brazil		58,671		54,488		7.7%		56,383		4.1%

Central America		15,469		15,488		-0.1%		15,841		-2.3%

Caribbean		6,312		6,244		1.1%		5,980		5.6%

Chile		6,966		6,873		1.4%		6,720		3.7%

Colombia		31,244		31,104		0.4%		29,887		4.5%

Ecuador		8,465		8,493		-0.3%		8,308		1.9%

Mexico		77,212		76,918		0.4%		75,611		2.1%

Peru		11,543		11,611		-0.6%		11,818		-2.3%

USA		20,704		20,876		-0.8%		21,599		-4.1%

Total Wireless Lines		282,559		278,027		1.6%		277,458		1.8%

⁽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 2020


	Total⁽¹⁾ (Thousands)

Country	Mar ’20		Dic ’19		Var.%		Mar ’19		Var.%

Argentina, Paraguay and Uruguay		1,210		1,114		8.6%		833		45.4%

Austria & CEE		6,131		6,143		-0.2%		6,182		-0.8%

Brazil		33,808		34,048		-0.7%		34,993		-3.4%

Central America		4,408		4,409		0.0%		4,393		0.3%

Caribbean		2,516		2,528		-0.5%		2,545		-1.1%

Chile		1,398		1,400		-0.2%		1,441		-3.0%

Colombia		7,760		7,613		1.9%		7,320		6.0%

Ecuador		458		446		2.8%		397		15.5%

Mexico		22,039		21,992		0.2%		22,350		-1.4%

Peru		1,646		1,603		2.7%		1,498		9.9%

Total RGUs		81,375		81,297		0.1%		81,951		-0.7%

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

América Móvil Consolidated Results

Signs of the emergence of the Coronavirus pandemic in China early in the first quarter and of the ensuing contagion of other regions, first in Europe and then in the Americas, brought about a chaotic response of financial markets concerned that a major economic contraction would follow. Over the last several weeks the full or partial lockdown of various countries has resulted in a sharp collapse of economic activity and rapidly rising levels of unemployment. Most Latin American currencies depreciated vs. the U.S. dollar, with the Mexican peso losing 25%, the Brazilian real 29% and the Colombian peso 24% in relation to their levels at the close of 2019.

The above notwithstanding, our consolidated revenues expanded at a rapid pace, as several operations—including Mexico, Brazil and Colombia—posted their best revenue increase in at least five quarters. Consolidated revenues, 250 billion pesos, were up 1.8% year-on-year in Mexican peso terms, with service revenue growing 5.0% at constant exchange rates from a year before—also the fastest pace in over a year. In Colombia service revenues expanded at similar rates on both the mobile and the fixed-line platforms, approximately 9.5%.

Mobile services were the main driver of revenue growth, at 8.4%, the most dynamic rhythm in sev- eral quarters, helped along by postpaid revenue—up 13.6% at constant exchange rates partly on account of the incorporation of Nextel—as several countries experienced an acceleration of revenue growth. Prepaid service revenue expanded at roughly half that pace, 3.9%, although Mexico, Colombia and Dominicana saw 13% increases. Mobile ARPU rose in most countries from the year before driven by data services, as data consumption per client kept on increasing rapidly.

On the fixed-line platform service revenues declined slightly at constant exchange rates, 0.7%, as fixed-broadband revenues, up 7.8%—the second most dynamic business line in our group after mobile postpaid revenues—did not managed to fully offset the declines seen in voice and PayTV revenues. Peru, Colombia and Ecuador presented sequential improvements and their best results in over a year while fixed service revenues in Brazil and Puerto Rico continued their downward trend.

EBITDA totaled 77.6 billion pesos and our operating profit 39.0 billion pesos, increasing 2.9% and 9.9% in Mexican peso terms respectively. At constant exchange rates EBITDA rose 8.3% rising more rapidly in Mexico, 11.9%. In Brazil and Colombia EBITDA was up 7.5% and 8.2% whereas it fell in Puerto Rico, Panama and Nicaragua.

América Móvil’s Income Statement Millions of Mexican pesos



	1Q20		1Q19		Var.%

Service Revenues		209,513		206,454		1.5%

Equipment Revenues		39,480		37,852		4.3%

Total Revenues*		250,102		245,656		1.8%

Cost of Service		75,475		74,833		0.9%

Cost of Equipment		40,388		39,186		3.1%

Selling, General & Administrative Expenses		55,566		54,784		1.4%

Others		1,045		1,418		-26.3%

Total Costs and Expenses		172,474		170,220		1.3%

EBITDA		77,627		75,436		2.9%

% of Total Revenues		31.0%		30.7%

Depreciation & Amortization		38,677		39,984		-3.3%

EBIT		38,950		35,452		9.9%

% of Total Revenues		15.6%		14.4%

Net Interest Expense		9,380		8,721		7.5%

Other Financial Expenses		-23,092		674		n.m.

Foreign Exchange Loss		93,303		-8,249		n.m.

Comprehensive Financing Cost (Income)		79,591		1,146		n.m.

Income & Deferred Taxes		-12,036		14,005		-185.9%

Net Income before Minority
Interest and Equity Participation in Results of Affiliates		-28,604		20,301		-240.9%

Equity Participation in Results of Affiliates		3		16		-83.9%

Minority Interest		-779		-765		-1.9%

Net Income		-29,381		19,553		-250.3%

* Total revenues include Other Revenues

n.m. Not meaningful.

Comprehensive financing costs totaled 79.6 billion pesos resulting from 93 billion pesos in foreign exchange losses stemming mostly from the depreciation of the Mexican peso vis-a-vis the U.S. dollar and the euro. They gave rise to a 29.4 billion pesos net loss in the quarter. Most of our debt has been raised in international markets in hard currencies; since the company is based in Mexico the debt is therefore subject to foreign exchange variations. However, the exposure arising from this funding is managed through the use of financial derivatives and had been significantly reduced over the last several months to better conform to the currency mix of our revenue base and equity investments.

Our net debt ended March at 817 billion pesos; in cash flow terms it was up 24.6 billion pesos year-to-date, helping us fund our capital expenditures, 26.8 billion pesos. Our net debt to EBITDA (LTM) stood at 1.87 times under IAS17 at the end of March.

Balance Sheet - América Móvil Consolidated Millions of Mexican Pesos



	Mar ‘20		Dec ‘19		Var.%			Mar ‘20		Dec ‘19		Var.%
Current Assets							Current Liabilities
Cash, Marketable Securities & Other Short Term Investments		155,702		67,464		130.8%	Short Term Debt*		140,721		129,172		8.9%
Accounts Receivable		271,589		211,532		28.4%	Lease-Related Debt		25,993		25,895		0.4%
Other Current Assets		21,224		10,747		97.5%	Accounts Payable		262,035		268,484		-2.4%
Inventories		39,270		41,102		-4.5%	Other Current Liabilities		105,350		101,849		3.4%
		487,786		330,844		47.4%			534,098		525,400		1.7%
Non Current Assets							Non Current Liabilities
Plant & Equipment, gross		1,422,775		1,319,588		7.8%	Long Term Debt		702,807		495,082		42.0%
-Depreciation		741,149		680,244		9.0%	Lease-Related Debt		103,653		94,702		9.5%
Plant & Equipment, net		681,626		639,343		6.6%	Other Non Current Liabilities		204,983		189,843		8.0%
Rights of Use		124,996		118,003		5.9%			1,011,442		779,627		29.7%
Investments in Affiliates		2,460		2,474		-0.6%

Deferred Assets
Goodwill (Net)		154,355		152,900		1.0%
Intangible Assets		140,283		125,169		12.1%	Shareholder’s Equity		232,373		226,907		2.4%
Deferred Assets		186,408		163,199		14.2%
Total Assets		1,777,914		1,531,934		16.1%	Total Liabilities and Equity		1,777,914		1,531,934		16.1%

Financial Debt of América Móvil* Millions



	Mar -20		Dec -19

Peso - denominated debt (MxP)		73,204		80,129
Bonds and other securities		51,204		58,129

Banks and others		22,000		22,000

U.S. Dollar - denominated debt (USD)		11,638		9,472
Bonds and other securities		8,351		8,975
Banks and others		3,287		497

Euro - denominated Debt (EUR)		12,850		11,165
Bonds and other securities		10,887		11,065
Banks and others		1,963		100

Sterling - denominated Debt (GBP)		2,750		2,750
Bonds and other securities		2,750		2,750

Reais - denominated Debt (BRL)		9,975		7,475
Bonds and other securities		9,975		7,475
Banks and others		0		0

Debt denominated in other currencies (MxP)		37,997		26,045
Bonds and other securities		6,788		5,818
Banks and others		31,209		20,227

Total Debt (MxP)		843,527		624,254

Cash, Marketable Securities and Short Term Financial Investments (MxP)		155,702		67,464

Net Debt (MxP)		687,825		556,790

*This table does not include the effect of forwards and derivatives used to hedge our foreign exchange exposure.

Mexico

We ended March with 77.2 million subs after adding 215 thousand mobile postpaid subscribers and 80 thousand prepaid clients in the quarter. Mobile net additions were lower at the end of March as Mexico began to enforce social distancing and other restrictive measures to prevent contagion of Covid-19 on March 19th. On the fixed-line platform we gained 105 thousand broadband clients in the first quarter—a 1.1% sequential increase in our fixed-broadband access lines—and disconnected 58 thousand voice lines.

Our revenues were up 8.8% year-on-year to 73.2 billion pesos with service revenues expanding 6.7%, their best performance in at least five quarters, led by mobile service revenues that jumped 10.4%, also the most rapid pace in over a year. Mobile prepaid revenues expanded 13.3% and mobile postpaid revenues 6.8%; in both cases it was the fastest rate, on the back of greater consumption of mobile data services.

At 0.5%, fixed-line service revenues were slightly higher in the quarter compared to a year before as the reductions in voice revenues were more than offset by a 4.6% increase in fixed-broadband revenues—the greatest increase posted in over a year. International long-distance revenues also rose, reflecting the depreciation of the Mexican peso vs. the U.S. dollar.

EBITDA rose nearly 12% from the year-earlier quarter, reaching 27.8 billion pesos. At 37.9%, our EBITDA margin was up 1.0 percentage points in the period.

We have leveraged the investments we have made over the last years in new technologies that have enhanced the capacity and reach of our platforms that have enabled us to handled important traffic increases with no detriment to quality or speed.

We have promoted the use of our digital platforms to address the needs of our clients: from online customer care to digital sales of airtime. In this unprecedented crisis we must remain very close to our clients in order to have enough flexibility to adapt to their needs.

To further support our clients during the emergency period, we have given away more than 27 million airtime and SMS bundles for mobile subscribers and in the fixed side we are offering a $100 peso plan with 2Mbps for Internet access. Additionally, we have opened all sites related to health and several related to education.

INCOME STATEMENT - Mexico Millions of MxP



	1Q20		1Q19⁽¹⁾		Var.%

Total Revenues*		73,182		67,241		8.8%

Total Service Revenues		54,599		51,160		6.7%

Wireless Revenues		53,395		46,966		13.7%

Service Revenues		35,555		32,213		10.4%

Equipment Revenues		17,840		14,753		20.9%

Fixed Line Service Revenues		19,310		19,806		-2.5%

EBITDA		27,771		24,818		11.9%

% total revenues		37.9%		36.9%

EBIT		20,038		16,140		24.1%

%		27.4%		24.0%

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

Total revenues include other income.

⁽¹⁾ 1Q19 reflects reclassifications of “other revenues”.

Mexico Operating Data

1Q20

1Q19

Var.%

Wireless Subscribers (thousands)

77,212

75,611

2.1%

Postpaid

14,564

13,714

6.2%

Prepaid**

62,648

61,897

1.2%

MOU

528

522

1.2%

ARPU (MxP)

154

143

7.8%

Churn (%)

3.9%

4.1%

(0.2)

Revenue Generating Units (RGUs)*

22,039

22,350

-1.4%

Fixed Lines

12,241

12,666

-3.4%

Broadband

9,798

9,684

1.2%

*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.

Argentina has remained under lockdown since March 19th. Our stores and customers service centers have remained closed since then. We had nearly 12 thousand postpaid net additions in the quarter, but nearly ten thousand disconnections in prepaid. We have been promoting the use of digital platforms and have seen good adoption by postpaids and for prepaid airtime recharges. Prepaid adds and handset sales, however, have been very limited.

Revenues topped 25 billion Argentinean pesos in the first quarter, 7.5% less than the prior year with service revenues down 4.9% and equipment revenues contracting 18%. On the mobile segment, service revenues declined 6.5%. As a result of heavy promotions in the contract segment, revenues came down 6.9% annually, and on prepaid, they declined 4.5%.

First quarter EBITDA of 9.4 billion Argentinean pesos was down 15.0% year-on-year as a result of revenue declines and of a greater provision for bad debt booked after the contingency began. The EBITDA margin stood at 37.6% of revenues.

In Uruguay, measures effected by the government following COVID-19 have been milder and lockdown is recommended but not mandatory. In Paraguay, citizens are to remain at home with limited mobility but we have been able to keep our customer service centers and some stores open.

INCOME STATEMENT - Argentina Millions of Constant ARS of March 2020



	1Q20		1Q19		Var.%

Total Revenues*		25,008		27,033		-7.5%

Total Service Revenues		20,682		21,752		-4.9%

Wireless Revenues		22,746		24,949		-8.8%

Service Revenues		18,465		19,739		-6.5%

Equipment Revenues		4,281		5,210		-17.8%

Fixed Line Revenues		2,217		2,013		10.1%

EBITDA		9,391		11,054		-15.0%

% total revenues		37.6%		40.9%

EBIT		7,327		9,007		-18.7%

%		29.3%		33.3%

*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

1Q20

1Q19

Var.%

Wireless Subscribers (thousands)⁽¹⁾

21,896

21,828

0.3%

Postpaid

8,460

8,387

0.9%

Prepaid

13,436

13,441

0.0%

MOU

-0.5%

ARPU (ARP)

279

198

40.5%

Churn (%)

1.7%

1.8%

(0.1)

Revenue Generating Units (RGUs)*

875

521

68.0%

*Fixed Line, Broadband and Pay TV.

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

Brazil

After incorporating Nextel Brazil with 3.5 million subscribers and adding organically an additional 874 thousand postpaid clients in the first quarter, we ended March with 58.7 million subscribers. On the fixed-line platform we connected 107 thousand new broadband accesses in the period. At the end of the month we had 9.7 million broadband accesses, up 2.2% year-on-year, and a total of 33.8 million RGUs.

Organically, revenues rose 2.9% to 9.2 billion reais with service revenues rising 3.2%. On the mobile segment, service revenues rose 15.4%—almost as much as in the prior quarter—with postpaid revenues that shot up 19.2% relative to the prior year and prepaid revenues that grew 5.3%, up from 2.4% in the prior quarter. With the acquisition of Nextel we booked additional revenues of 593 million reais with which mobile service revenues topped four billion reais, an increase of 35% vis-à-vis our 1Q19 revenues.

On the fixed-line platform, service revenues declined 3.4% as the growth in broadband revenues, 10.6%, was not enough to compensate for the decline in voice, PayTV and corporate networks revenues. We have successfully been cross-selling our fixed and mobile products to our clients, and our Combo Multi has proven to be a very convenient solution.

At 3.5 billion reais, and as a result of solid revenue growth and good cost controls, our organic EBITDA for the quarter was 6.4% higher than that of the year-earlier quarter. The EBITDA margin stood at 38.3%, having climbed 1.3 percentage points over the last twelve-months. With our recent acquisition, EBITDA increased to 3.7 billion reais—an additional 189 million reais—and the margin was equivalent to 37.9% of revenues.

INCOME STATEMENT - Brazil Proforma Millions of BrL



	1Q20		1Q19		Var.%

Total Revenues*		9,791		9,485		3.2%

Total Service Revenues		9,522		9,198		3.5%

Wireless Revenues		4,341		3,840		13.1%

Service Revenues		4,082		3,566		14.5%

Equipment Revenues		259		274		-5.3%

Fixed Line Revenues		5,440		5,632		-3.4%

EBITDA		3,709		3,450		7.5%

% total revenues		37.9%		36.4%

EBIT		1,429		1,312		9.0%

%		14.6%		13.8%

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

Brazil Operating Data

1Q20

1Q19

Var.%

Wireless Subscribers (thousands)

58,671

56,383

4.1%

Postpaid

31,847

24,479

30.1%

Prepaid

26,825

31,904

-15.9%

MOU⁽¹⁾

157

138

13.9%

ARPU (BrL)

33.0%

Churn (%)

4.0%

3.8%

0.2

Revenue Generating Units (RGUs)*

33,808

34,993

-3.4%

*Fixed Line, Broadband and Television.

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

Colombia

We added 140 thousand subscribers in the quarter, including 33 thousand postpaid subs. January and February showed solid figures and in March, they came down reflecting the impact of the reduced mobility after the initial lockdown measures were implemented. On the fixed-line platform we connected 147 thousand new RGUs: 70 thousand broadband accesses, 45 thousand voice lines and 31 thousand PayTV units.

Total revenues, 3.2 trillion Colombian Pesos, were up 10.2% year-on-year, as service revenue growth continued to accelerate to 9.6%, with fixed and mobile service revenues growing almost at the same pace.

Mobile service revenues of 1.6 trillion Colombian pesos were up 9.6% year-on-year from 8.5% in the prior quarter with prepaid revenue growth accelerating to 13.5% and postpaid revenues expanding 7.7%. In both cases, it was the fastest pace observed in over a year.

Fixed-line service revenues increased 9.5% up from 8.6% in the fourth quarter. Broadband revenues, the most important component of fixed-line service revenues, were up 11.2% annually while corporate network services, our fastest growing business line, rose 19.5%. PayTV revenues increased 8.9%. The latter two also had their best showing in more than a year.

First quarter EBITDA of 1.4 trillion Colombian pesos was up 8.2% over the prior year; it was equivalent to 43.0% of revenues.

INCOME STATEMENT - Colombia Billions of COP



	1Q20		1Q19		Var.%

Total Revenues*		3,230		2,931		10.2%

Total Service Revenues		2,590		2,363		9.6%

Wireless Revenues		2,239		2,004		11.7%

Service Revenues		1,619		1,477		9.6%

Equipment Revenues		620		527		17.7%

Fixed Line Revenues		975		903		8.0%

EBITDA		1,390		1,284		8.2%

%		43.0%		43.8%

EBIT		814		720		13.1%

%		25.2%		24.6%

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

Colombia Operating Data

1Q20

1Q19

Var.%

Wireless Subscribers* (thousands)

31,244

29,887

4.5%

Postpaid

7,384

6,997

5.5%

Prepaid

23,860

22,890

4.2%

MOU⁽¹⁾

294

236

25.0%

ARPU (COP)

17,353

17,291

0.4%

Churn (%)

4.2%

4.8%

(0.6)

Revenue Generating Units (RGUs)**

7,760

7,320

6.0%

*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.

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

Chile

Chile took preemptive measures at an early stage of the world pandemic by limiting mobility in certain municipalities in the second week of March and gradually extending the restrictions to larger areas through the remainder of the month.

Chile is one of the countries with the highest penetration of bank and other financial services. Since digital channels for sales and payments are widely used, the impact on demand for telecom services has been limited in spite of mobility having become more restricted.

Mobile net additions totaled 94 thousand in the first quarter; in fact, the figure for March was nearly 50% greater than the average of the first two months, and in the prepaid segment, net adds were almost two times higher in March. In the fixed-line segment we experienced similar trends: broadband net additions totaled three thousand in the quarter, but more than six thousand in March. In PayTV we had nine thousand disconnections in the first quarter.

First quarter revenues of 199 billion Chilean pesos came down 3.0% with service revenues falling 2.4%. The latter figure compares with -4.1% in Q4 and -5.0% in Q3. Although mobile service revenues declined 2.3% given the secular downtrend in prepaid revenues, postpaid revenues actually increased 3.8% annually, up from 2.7% in the prior quarter. On the fixed-line platform service revenues declined 2.5% compared to -4.4% in the precedent quarter.

EBITDA for the period was practically flat relative to the year-earlier quarter in spite of the revenue decline. The EBITDA margin for the period stood at 21.6% of revenues, 70 basis points higher than in the prior year.

INCOME STATEMENT - Chile Millions of ChPL



	1Q20		1Q19⁽¹⁾		Var.%

Total Revenues*		199,349		205,548		-3.0%

Total Service Revenues		165,753		169,849		-2.4%

Wireless Revenues		125,334		128,916		-2.8%

Service Revenues		92,038		94,228		-2.3%

Equipment Revenues		33,296		34,688		-4.0%

Fixed Line Revenues		73,715		75,621		-2.5%

EBITDA		42,993		42,942		0.1%

% total revenues		21.6%		20.9%

EBIT		-8,058		-14,540		44.6%

%		-4.0%		-7.1%

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

⁽¹⁾ 1Q19 reflects restatements of fixed and mobile revenues.

Chile Operating Data

1Q20

1Q19

Var.%

Wireless Subscribers (thousands)

6,966

6,720

3.7%

Postpaid

2,286

2,127

7.5%

Prepaid

4,681

4,593

1.9%

MOU

160

170

-5.8%

ARPU (ChP)

4,950

5,074

-2.5%

Churn (%)

6.5%

6.0%

0.5

Revenue Generating Units (RGUs)*

1,398

1,441

-3.0%

*Fixed Line, Broadband and Television.

Ecuador

The impact on Covid-19 was strongly felt in the second half of March as Ecuador was one of the countries with some of the most restrictive measures amongst our Latam operations. The country has been on mandatory lock-down since March 17th and our stores and customer service centers have remained closed since that date. Therefore the impact was initially felt in mobile net additions; we registered 28 thousand net disconnections for the quarter.

Subsequently, we saw a deterioration in service revenues. We had seen mobile service revenues contracting over the past quarters as the economy was undergoing a downturn, but now collections have come down since the contingency period began. First quarter revenues of 307 million were down 5.9% over the year with service revenues declining 3.9%. On the mobile segment, service revenues fell 5.5% with prepaid revenues falling almost twice as rapidly. On the fixed-line platform, albeit a small base, service revenues increased 14.5% on the back of broadband and corporate networks.

As revenues declined, EBITDA contracted 6.4% and the margin came in at 42.1% of revenues.


INCOME STATEMENT - *Ecuador* Millions of Dollars

	1Q20		1Q19		Var.%

Total Revenues*		307		326		-5.9%

Total Service Revenues		262		273		-3.9%

Wireless Revenues		281		303		-7.3%

Service Revenues		237		251		-5.5%

Equipment Revenues		44		52		-16.0%

Fixed Line Revenues		26		23		14.0%

EBITDA		129		138		-6.4%

% total revenues		42.1%		42.4%

EBIT		74		81		-9.0%

%		23.9%		24.8%

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

Ecuador Operating Data

1Q20

1Q19

Var.%

Wireless Subscribers (thousands)

8,465

8,308

1.9%

Postpaid

2,660

2,640

0.7%

Prepaid

5,805

5,668

2.4%

MOU

413

427

-3.3%

ARPU (US$)

-8.0%

Churn (%)

4.0%

4.2%

(0.3)

Revenue Generating Units (RGUs)*

458

397

15.5%

*Fixed Line, Broadband and Television.

Peru

Peru was amongst the first countries, in our Latam footprint, to adopt contingency measures. The actions taken to mitigate contagion include mandatory lock-down beginning March 16th. Sales of new mobile lines and fixed accesses have been suspended.

First quarter revenues rose 2.4% to 1.3 billion soles, as service revenues increased 4.9% and equipment revenues decreased 1.3% year-on-year on account of the limitation to activate new lines. Mobile service revenues increased 4.0% with prepaid revenues falling 3.6% and postpaid rising 7.0%.

On the fixed-line platform, service revenues were 8.0% higher than a year before on account of broadband revenues that jumped 26%. Whereas January and February showed solid operating trends, the latter figures also reflect revenues booked based on invoices issued in March which are not currently being paid by our clients and payment for which will not be required for some time. We are increasing our bad debt provision accordingly.

EBITDA of 400 million soles was up 13.5% on an annual basis. The EBITDA margin for the period stood at 30.9%, three percentage points above that of the precedent year.


INCOME STATEMENT - *Peru* Millons of Soles

	1Q20		1Q19		Var.%

Total Revenues*		1,294		1,264		2.4%

Total Service Revenues		972		926		4.9%

Wireless Revenues		1,064		1,040		2.4%

Service Revenues		744		715		4.0%

Equipment Revenues		320		324		-1.3%

Fixed Line Revenues		227		211		7.9%

EBITDA		400		352		13.5%

% total revenues		30.9%		27.9%

EBIT		140		119		17.8%

%		10.8%		9.4%

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

Peru Operating Data

1Q20

1Q19

Var.%

Wireless Subscribers (thousands)

11,543

11,818

-2.3%

Postpaid

4,234

4,069

4.1%

Prepaid

7,309

7,749

-5.7%

MOU

290

252

14.9%

ARPU (Sol)

7.2%

Churn (%)

4.5%

6.3%

(1.9)

Revenue Generating Units (RGUs)*

1,646

1,498

9.9%

*Fixed Line, Broadband and Television.

Central America

We have had very different schemes as related to the Covid-19 pandemic in the countries that make up the Central American block.

Altogether, we generated revenues of 583 million dollars that declined 4.5% from the year-earlier quarter on a proforma basis, with service revenues down 1.9% and equipment revenues falling 18.8%. Mobile service revenues were 2.1% lower than a year before. Towards the end of March, we began to experience a greater reduction in prepaid revenues given the social distancing and curfew measures in some countries, but postpaid revenues were slightly higher than a year before.

On the fixed-line segment, service revenues were 1.7% lower year-on-year, mostly on the back of voice revenue declines.

EBITDA of 219 million dollars declined 3.1% relative to the prior year but the margin rose 50 basis points to 37.5%. In Guatemala, EBITDA rose as we start to benefit from the synergies of the integration of Telefonica’s former operation in that country.

INCOME STATEMENT - Central America Proforma Millions of Dollars



	1Q20		1Q19⁽¹⁾		Var.%

Total Revenues*		583		610		-4.5%

Total Service Revenues		514		524		-1.9%

Wireless Revenues		392		413		-4.9%

Service Revenues		333		340		-2.1%

Equipment Revenues		60		73		-18.2%

Fixed Line Revenues		187		192		-2.6%

EBITDA		219		226		-3.1%

% total revenues		37.5%		37.0%

EBIT		78		88		-11.4%

%		13.3%		14.4%

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

⁽¹⁾ 1Q19 figures were restated for IFRS 16.

Central America Operating Data

1Q20

1Q19

Var.%

Wireless Subscribers (thousands)

15,469

15,841

-2.3%

Postpaid

2,548

2,513

1.4%

Prepaid

12,921

13,328

-3.1%

MOU

166

158

4.7%

ARPU (US$)⁽²⁾

1.7%

Churn (%)

6.1%

5.6%

0.5

Revenue Generating Units (RGUs)*

4,408

4,393

0.3%

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

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

⁽²⁾ Under IFRS 15.

Caribbean

In the Dominican Republic we ended march with 5.4 million wireless subscribers.

Total revenues increased 4.8% with service revenues rising 5.7% over the year. Mobile postpaid had the greatest annual increase in at least five quarters, while prepaid service revenues rose 12.5%. On the fixed-line platform, service revenues remained flat from a year before. EBITDA for the quarter, 5.9 billion Dominican pesos, was 5.3% higher than a year before with the margin increasing slightly to 46.1% of revenues.

In Puerto Rico all of our stores and customer service centers have remained closed since March 16th. Revenues declined 4.9% as compared to the prior year with service revenues down 5.3%, dragged down by declining fixed-line and mobile revenues, down -9.4% and -1.4%, respectively. First quarter EBITDA, 32 million dollars, fell 14.4% year-on-year. The EBITDA margin stood at 15.9% of revenues.

INCOME STATEMENT - Caribbean Millions of Dollars



	1Q20		1Q19⁽¹⁾		Var.%

Total Revenues*		435		450		-3.2%

Total Service Revenues		388		399		-2.8%

Wireless Revenues		264		265		-0.5%

Service Revenues		217		214		1.4%

Equipment Revenues		47		51		-8.5%

Fixed Line Revenues		174		188		-7.8%

EBITDA		141		147		-4.5%

% total revenues		32.3%		32.8%

EBIT		59		71		-17.1%

%		13.6%		15.8%

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

⁽¹⁾ 1Q19 reflects reclassifications of fixed and mobile service revenues.

Caribbean Operating Data

1Q20

1Q19

Var.%

Wireless Subscribers (thousands)

6,312

5,980

5.6%

Postpaid

2,046

1,951

4.9%

Prepaid

4,266

4,029

5.9%

MOU

219

238

-8.0%

ARPU (US$)

-4.2%

Churn (%)

3.3%

3.5%

(0.2)

Revenue Generating Units (RGUs)*

2,516

2,545

-1.1%

* Fixed Line, Broadband and Pay TV.

United States

We disconnected 50 thousand clients in the first quarter—excluding Safelink—to finish March with 20.7 million wireless subscribers. Our high ARPU brands showed solid growth in the period with some registering greater net gains as the month progressed in March. As economic uncertainty increased alongside the impact of the Coronavirus, several clients appeared to be looking for more flexible plans, as there are in prepaid.

Notwithstanding the incipient but severe economic contraction, service revenues for the period were flat on an annual basis at 1.7 billion dollars with ARPU rising 4.0% to 27 dollars. EBITDA was down 5.8% to 116 million dollars on account of higher subsidies that resulted from aggressive competition. The EBITDA margin stood at 5.9%, slightly below that of the year-earlier quarter.

INCOME STATEMENT - United States Millions of Dollars



	1Q20		1Q19		Var.%

Total Revenues		1,986		1,992		-0.3%

Service Revenues		1,692		1690		0.1%

Equipment Revenues		294		302		-2.6%

EBITDA		116		123		-5.8%

% total revenues		5.9%		6.2%

EBIT		98		105		-6.1%

%		4.9%		5.3%

United States Operating Data

1Q20

1Q19

Var.%

Wireless Subscribers (thousands)

20,704

21,599

-4.1%

Straight Talk

9,473

9,359

1.2%

SafeLink

2,051

2,660

-22.9%

Other Brands

9,180

9,581

-4.2%

MOU

625

553

13.0%

ARPU (US$)

4.0%

Churn (%)

3.7%

0.0

A1 Telekom Austria Group

Covid-19 started to affect Telekom Austria’s business towards the end of the first quarter and thus had only a limited impact on its financial results. Most governments imposed restrictive contingency measures that limited mobility. As a result, traffic increased, but our networks have handled it—for both data and voice traffic—without any congestions.

Mobile subscribers increased by 1.8% to 21.3 million in the quarter. The postpaid segment remained strong as demand for mobile WiFi routers increased. RGUs declined by 0.9% year-on-year. In Austria driven primarily by voice and to a lesser extent by low-bandwidth broadband RGUs. In the international markets, the number of RGUs rose due to TV and broadband connections. Following the sanitary crisis, we had high demand for mobile WiFi routers and mobile devices as well as for VPN connections and bandwidth upgrades for business customers. In the residential segment, gross ads have been lower on both the fixed and mobile platforms.

For most of the quarter, the underlying positive trends of the previous quarters continued with both stable or growing service revenues and rising EBITDA in Bulgaria, Croatia, Belarus and Serbia. However, the market lost part of its dynamism in the second half of March.

Total revenues for the group were up 3.4% year-on-year to 1,126 million euros with growth in Bulgaria, Belarus and Serbia. In Austria, revenues were stable as lower fixed-line revenues were offset by higher mobile service and equipment revenues. Mobile service revenues were 5.2% greater than a year before rising in all markets except for Slovenia on the back of strong demand of mobile WiFi routers and upselling activities in the high-value segment in Austria

Fixed-line service revenues were flat as growth in Eastern Europe outweighed the decline in Austria which resulted from fixed-line disconnections as well as from voucher redemptions and lower installation fees associated to certain broadband promotions. In the second half of March we started to feel an impact from the collapse of customer and visitor roaming revenues.

EBITDA for the Group, excluding restructuring charges, increased slightly by 0.4% to 397 million euros (reported: +1.7%), driven by higher service revenues that compensated for higher bad debt following an increase in provisions for past due amounts. In Austria, EBITDA excluding restructuring charges declined by 3.1%, due to lower fixed-line revenues and higher bad debt provisions, increased advertising costs and the continued improvement of security, infrastructure and digitalization measures. In the international markets, EBITDA grew by 6.5% driven by Bulgaria, Belarus and Serbia. The margin for the group stood at 35.2%.

On January 27th, A1 launched in Austria its “5Giga” premium tariff portfolio for mobile and Internet@Home segments. The initial uptake for our 5Giga products showed strong demand.

On March 2nd, A1 successfully launched its new TV platform A1 Xplore TV with 260 channels, 7 day replay, multiscreen experience – on TV, tablet, smartphone, laptop and Chromecast – as well as up to 500 hours recording and many integrated apps.

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

Millions of Euros



	1Q20		1Q19		Var.%

Total Revenues		1,126		1,089		3.4%

Total Service Revenues		950		924		2.7%

Wireless Service Revenues		521		495		5.2%

Fixed-line Service Revenues		429		430		-0.1%

Equipment Revenues		158		144		10.1%

Other operating income		18		22		-15.5%

EBITDA		381		374		1.7%

% total revenues		33.8%		34.3%

Adjusted EBITDA⁽¹⁾		397		395		0.4%

% total revenues		35.2%		36.3%

EBIT		147		140		5.1%

%		13.1%		12.9%

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

1Q20

1Q19

Var.%

Wireless Subscribers (thousands)

21,306

20,933

1.8%

Postpaid

17,100

16,288

5.0%

Prepaid

4,206

4,645

-9.5%

MOU

397

354

12.2%

ARPU (US$)

3.5%

Churn (%)

1.5%

1.8%

(0.3

)

Revenue Generating Units (RGUs)*

6,131

6,185

-0.9%

* Fixed Line, Fixed Line, Broadband and Television.

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


Exchange Rates Local Currency units per MxP
	1Q20		1Q19		Var.%
Euro
End of Period		0.0386		0.0461	-16.4%
Average		0.0457		0.0458	-0.2%
U.S.
End of Period		0.0425		0.0518	-17.8%
Average		0.0504		0.0520	-3.1%
Brazilean Real
End of Period		0.2211		0.2017	9.6%
Average		0.2244		0.1962	14.4%
Argentinean Peso
End of Period		2.7419		2.2438	22.2%
Average		3.1021		2.0295	52.9%
Chilean Peso
End of Period		36.2378		35.1204	3.2%
Average		40.4554		34.7178	16.5%
Colombian Peso
End of Period		172.8809		165.1617	4.7%
Average		178.0793		163.2116	9.1%
Guatemalan Quetzal
End of Period		0.3268		0.3976	-17.8%
Average		0.3871		0.4016	-3.6%
Peruvian Sol
End of Period		0.1464		0.1719	-14.8%
Average		0.1716		0.1730	-0.8%
Dominican Republic Peso
End of Period		2.3401		2.6185	-10.6%
Average		2.7185		2.6304	3.4%


Exchange Rates Local Currency Units per USD
	1Q20		1Q19		Var.%
Euro
End of Period		0.9065		0.8914		1.7%
Average		0.9069		0.8808		3.0%
Mexican Peso
End of Period		23.5122		19.3201		21.7%
Average		19.8341		19.2202		3.2%
Brazilean Real
End of Period		5.1987		3.8967		33.4%
Average		4.4511		3.7706		18.0%
Argentinean Peso
End of Period		64.4690		43.3500		48.7%
Average		61.5281		39.0065		57.7%
Chilean Peso
End of Period		852.0300		678.5300		25.6%
Average		802.3949		667.2841		20.2%
Colombian Peso
End of Period		4,064.8100		3190.9400		27.4%
Average		3,532.0353		3136.9606		12.6%
Guatemalan Quetzal
End of Period		7.6847		7.6810		0.0%
Average		7.6769		7.7192		-0.5%
Peruvian Sol
End of Period		3.4420		3.3210		3.6%
Average		3.4034		3.3253		2.3%
Dominican Republic Peso
End of Period		55.0200		50.5900		8.8%
Average		53.9189		50.5565		6.7%

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.

For further information please visit our website at: www.americamovil.com

América Móvil, S.A.B. de C.V. (the “Company”) quarterly reports and all other written materials may from time to time contain forward-looking statements that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance, or achievements, and may contain words like “believe”, “anticipate”, “expect”, “envisages”, “will likely result”, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this report. In no event, neither the Company nor any of its subsidiaries, affiliates, directors, officers, agents or employees shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this document or for any consequential, special or similar damages.

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.