TITLE OF EACH CLASS: |
TRADING SYMBOL |
NAME OF EACH EXCHANGE ON WHICH REGISTERED | ||
Shares, without par value |
||||
|
B Shares |
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. |
X |
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 |
X | ||||||
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. |
X |
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). |
X |
No |
||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act |
X |
Accelerated filer |
Non-accelerated filer |
growth company |
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. |
X |
No |
||||||
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. |
Yes |
X | ||||||
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). |
Yes |
No |
X | |||||
U.S. GAAP |
X |
|
|
Other |
|
If “other” has been checked in response to the previous question, indicate by check mark which financial statement item |
Item |
Item |
||||||
the registrant has elected to follow. |
17 |
18 |
||||||
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 |
Yes |
X | ||||||
Exchange Act). |
(See Form 20-F Cross Reference Guide on page 98) | ||||
6 |
||||
9 |
||||
10 |
||||
18 |
||||
19 |
||||
19 |
||||
21 |
||||
23 |
||||
24 |
||||
26 |
||||
34 |
||||
39 |
||||
52 |
||||
53 |
||||
54 |
||||
55 |
||||
55 |
||||
55 |
||||
56 |
||||
57 |
||||
62 |
||||
63 |
||||
67 |
||||
69 |
||||
72 |
||||
73 |
||||
75 |
||||
77 |
||||
93 |
||||
94 |
||||
94 |
||||
95 |
||||
96 |
||||
97 |
||||
98 |
||||
100 |
||||
103 |
FOR THE YEAR ENDED DECEMBER 31, |
||||||||||||||||||||||||||||||||
2021 (2) |
2022 (3)(4) |
2023 |
2023 |
|||||||||||||||||||||||||||||
(in millions of Mexican pesos, except share and per share amounts) |
(in millions of U.S. dollars, except share and per share amounts) |
|||||||||||||||||||||||||||||||
STATEMENT OF COMPREHENSIVE INCOME DATA: |
||||||||||||||||||||||||||||||||
Operating revenues |
Ps. |
830,687 |
Ps. |
844,501 |
Ps. |
816,013 |
U.S. |
48,303 |
||||||||||||||||||||||||
Operating costs and expenses |
506,828 |
514,996 |
496,443 |
29,387 |
||||||||||||||||||||||||||||
Depreciation and amortization |
156,303 |
158,634 |
151,786 |
8,985 |
||||||||||||||||||||||||||||
Operating income |
167,556 |
170,871 |
167,784 |
9,931 |
||||||||||||||||||||||||||||
Net profit for the year from continuing operations |
Ps. |
72,090 |
Ps. |
88,225 |
Ps. |
80,790 |
U.S. |
4,782 |
||||||||||||||||||||||||
Net profit (loss) for the year from discontinued operations |
124,236 |
- |
(6,719 |
) |
- |
- |
||||||||||||||||||||||||||
Net profit for the year |
Ps. |
196,326 |
Ps. |
81,506 |
Ps. |
80,790 |
U.S. |
4,782 |
||||||||||||||||||||||||
NET PROFIT (LOSS) ATTRIBUTABLE FOR THE YEAR TO: |
||||||||||||||||||||||||||||||||
Equity holders of the parent from continuing operations |
Ps. |
68,187 |
Ps. |
82,878 |
Ps. |
76,111 |
U.S. |
4,505 |
||||||||||||||||||||||||
Equity holders of the parent from discontinued operations |
124,236 |
(6,719 |
) |
- |
- |
|||||||||||||||||||||||||||
Equity holders of the parent |
Ps. |
192,423 |
Ps. |
76,159 |
Ps. |
76,111 |
U.S. |
4,505 |
||||||||||||||||||||||||
Non-controlling interests |
3,903 |
5,347 |
4,679 |
277 |
||||||||||||||||||||||||||||
Net profit for the year |
Ps. |
196,326 |
Ps. |
81,506 |
Ps. |
80,790 |
U.S. |
4,782 |
||||||||||||||||||||||||
EARNINGS PER SHARE: |
||||||||||||||||||||||||||||||||
Basic and diluted from continuing operations |
Ps. |
1.03 |
Ps. |
1.30 |
Ps. |
1.21 |
U.S. |
0.07 |
||||||||||||||||||||||||
Basic and diluted from discontinued operations |
Ps. |
1.88 |
Ps. |
(0.11 |
) |
Ps. |
- |
U.S. |
- |
|||||||||||||||||||||||
Dividends declared per share (1) |
Ps. |
0.40 |
Ps. |
0.44 |
Ps. |
0.46 |
U.S. |
0.03 |
||||||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING (MILLIONS): |
||||||||||||||||||||||||||||||||
Basic |
65,967 |
63,936 |
63,049 |
- |
||||||||||||||||||||||||||||
Diluted |
65,967 |
63,936 |
63,049 |
- |
||||||||||||||||||||||||||||
BALANCE SHEET DATA: |
||||||||||||||||||||||||||||||||
Property, plant and equipment, net |
Ps. |
731,197 |
Ps. |
657,226 |
Ps. |
628,651 |
U.S. |
37,213 |
||||||||||||||||||||||||
Right of use assets |
90,372 |
121,874 |
113,568 |
6,723 |
||||||||||||||||||||||||||||
Total assets |
1,689,650 |
1,618,099 |
1,564,186 |
92,591 |
||||||||||||||||||||||||||||
Short-term debt and current portion of long-term debt |
145,223 |
102,024 |
160,964 |
9,528 |
||||||||||||||||||||||||||||
Short-term liability related to right-of-use |
27,632 |
32,902 |
24,375 |
1,443 |
||||||||||||||||||||||||||||
Long-term debt |
418,807 |
408,565 |
339,713 |
20,109 |
||||||||||||||||||||||||||||
Long-term liability related to right-of-use |
71,022 |
101,247 |
100,794 |
5,967 |
||||||||||||||||||||||||||||
Capital stock |
96,333 |
95,365 |
95,362 |
5,645 |
||||||||||||||||||||||||||||
Total equity |
Ps. |
454,042 |
Ps. |
437,829 |
Ps. |
421,702 |
U.S. |
24,962 |
||||||||||||||||||||||||
NUMBER OF OUTSTANDING SHARES (MILLIONS) (5) : |
||||||||||||||||||||||||||||||||
AA Shares |
20,555 |
20,555 |
- |
- |
||||||||||||||||||||||||||||
A Shares |
502 |
488 |
- |
- |
||||||||||||||||||||||||||||
L Shares |
43,633 |
42,282 |
- |
- |
||||||||||||||||||||||||||||
B Shares |
- |
- |
62,450 |
- |
(1) |
Figures for each year provided represent the annual dividend declared at the general shareholders’ meeting for 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) |
On November 23, 2021, we completed the sale of TracFone Wireless, Inc. (“TracFone”) to Verizon Communications Inc. (“Verizon”). As a result of the sale of TracFone, in accordance with IFRS 5, the operations of Tracfone are classified as discontinued operations for the reporting periods prior to 2022 presented in the consolidated financial information included in this annual report. See “Overview—Discontinued Operations” under Part II of this annual report and Note 2 Ac to our audited consolidated financial statements included in this annual report. |
(3) |
On July 1, 2022, we completed the sale of the operations of Claro Panama, S.A. (“Claro Panama”) to Cable & Wireless Panama, S.A., an affiliate of LLA. As a result of the sale of Claro Panama, in accordance with IFRS 5, the operations of Claro Panama are classified as discontinued operations for the reporting periods prior to 2023 presented in the consolidated financial information included in this annual report. See “Overview—Discontinued Operations” under Part II of this annual report and Note 2 Ac to our audited consolidated financial statements included in this annual report. |
(4) |
As a result of the incorporation of ClaroVTR as a joint venture in 2022, in accordance with IFRS 5, the operations of Claro Chile are classified as discontinued operations for the reporting periods prior to 2023 presented in the consolidated financial information included in this annual report and are recognized through the equity method from October 6, 2022 onwards. See “Overview—Discontinued Operations” under Part II of this annual report and Note 2 Ac to our audited consolidated financial statements included in this annual report. |
(5) |
We have not included earnings or dividends on a per American Deposit Share (“ADS”) basis. On December 20, 2022, our shareholders approved the conversion (such conversion, the “Reclassification”) of all of our AA Shares, A Shares and L Shares into a single series of B Shares on a one-for-one |
• |
Mexico Wireless; |
• |
Mexico Fixed; |
• |
Brazil; |
• |
Colombia; |
• |
Southern Cone (Argentina) |
• |
Southern Cone (Paraguay and Uruguay); |
• |
Andean Region (Ecuador and Peru); |
• |
Central America (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua); |
• |
the Caribbean (the Dominican Republic and Puerto Rico); and |
• |
Europe (Austria, Belarus, Bulgaria, Croatia, North Macedonia, Serbia and Slovenia). |
AS OF DECEMBER 31, |
||||||||||||
2021 |
2022 |
2023 |
||||||||||
(in thousands) |
||||||||||||
WIRELESS RGUs |
||||||||||||
Mexico |
80,539 |
82,851 |
83,834 |
|||||||||
Brazil |
70,541 |
83,260 |
86,951 |
|||||||||
Colombia |
35,062 |
37,550 |
39,240 |
|||||||||
Southern Cone (Argentina) |
23,407 |
23,875 |
24,928 |
|||||||||
Southern Cone (Paraguay and Uruguay) |
2,941 |
3,040 |
3,115 |
|||||||||
Andean Region |
20,774 |
21,365 |
21,936 |
|||||||||
Central America |
15,753 |
16,673 |
17,266 |
|||||||||
Caribbean |
7,020 |
7,345 |
7,592 |
|||||||||
Europe |
22,766 |
23,897 |
25,245 |
|||||||||
Total Wireless RGUs |
278,803 |
299,856 |
310,106 |
|||||||||
FIXED RGUs: |
||||||||||||
Mexico |
21,408 |
20,824 |
21,171 |
|||||||||
Brazil |
25,291 |
24,136 |
23,089 |
|||||||||
Colombia |
8,876 |
9,248 |
9,440 |
|||||||||
Southern Cone (Argentina) |
1,694 |
2,546 |
3,212 |
|||||||||
Southern Cone (Paraguay and Uruguay) |
326 |
319 |
337 |
|||||||||
Andean Region |
2,444 |
2,608 |
2,473 |
|||||||||
Central America |
4,376 |
4,624 |
4,923 |
|||||||||
Caribbean |
2,608 |
2,774 |
2,787 |
|||||||||
Europe |
6,077 |
6,204 |
6,270 |
|||||||||
Total Fixed RGUs |
73,100 |
73,283 |
73,702 |
|||||||||
Total RGUs |
351,903 |
373,139 |
383,808 |
COUNTRY |
PRINCIPAL BRANDS |
SERVICES AND PRODUCTS | ||
Mexico |
Telcel |
Wireless voice | ||
Wireless data | ||||
Equipment and accessories | ||||
Telmex Infinitum |
Fixed voice | |||
Fixed data | ||||
Equipment and accessories | ||||
Europe |
A1 |
Wireless voice | ||
Wireless data | ||||
Fixed voice | ||||
Fixed data | ||||
Pay TV | ||||
Equipment and accessories |
• |
Subscription video on demand, providing unlimited access to our entire catalogue of content 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, DATA, BROAD- BAND, AND IT SERVICES (2) |
PAY TV |
OTT SERVICES (3) | |||||
Argentina |
● |
● |
● |
● | ||||
Austria |
● |
● |
● |
● | ||||
Belarus |
● |
● |
● |
● | ||||
Brazil |
● |
● |
● |
● | ||||
Bulgaria |
● |
● |
● |
● | ||||
Colombia |
● |
● |
● |
● | ||||
Costa Rica |
● |
● |
● |
● | ||||
Croatia |
● |
● |
● |
● | ||||
Dominican Republic |
● |
● |
● |
● | ||||
Ecuador |
● |
● |
● |
● | ||||
El Salvador |
● |
● |
● |
● | ||||
Guatemala |
● |
● |
● |
● | ||||
Honduras |
● |
● |
● |
● | ||||
North Macedonia |
● |
● |
● |
● | ||||
Mexico |
● |
● |
● (4) | |||||
Nicaragua |
● |
● |
● |
● | ||||
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 ) Fixed voice includes local calls, national and international long-distance.(3) Includes ClaroVideo and ClaroMúsica.(4) Services provided by non-concessionaire subsidiaries. |
• |
Cell sites: 110,824 sites with 2G, 3G, 4G and/or 5G technologies across Latin America and Europe. We have been expanding our coverage and improving quality and speed with a number of street cells and indoor solutions. On August 8, 2022, we completed the spin-off to Sitios Latam of our telecommunications towers and other related passive infrastructure in Latin America outside of Mexico, Colombia and our telecommunications towers existing in the Dominican Republic and Peru prior to the spin-off. Between February and July 2023, we completed the sale of all of our telecommunications towers in the Dominican Republic and Peru. See “Acquisitions, Other Investments and Divestitures.” |
• |
Fiber-optic network: More than 1.3 million km. Our network reached approximately 102 million homes. |
• |
Submarine cable systems: Capacity in more than 197 thousand km of submarine cables, including the AMX-1 submarine cable that extends 18.3 thousand km and connects the United States to Central and South America with 13 landing points and also the South Pacific Submarine Cable that extends 7.3 thousand km along the Latin American Pacific coast, connecting Guatemala, Ecuador, Peru and Chile with five landing points. Both systems provide international connectivity to all of our subsidiaries in these geographic areas. |
• |
Satellites: Five. Star One S.A. (“Star One”) has the most extensive satellite system in Latin America, with a fleet that covers the United States, Mexico, Central America and South America. We use these satellites to supply capacity for DTH services for Claro TV throughout Brazil and in other DTH Operations, as well as cellular backhaul, video broadcast and corporate data networks. |
• |
Data centers: 43. We use our data centers to manage a number of cloud solutions, such as Infrastructure as a Service (“IAAS”), Software as a Service (“SAAS”), security solutions and unified communications. |
GENERATION TECHNOLOGY |
||||||||||||||||
GSM |
UMTS |
LTE |
5G |
|||||||||||||
(% of covered population) |
||||||||||||||||
Argentina |
99.29 |
98.30 |
97.74 |
- |
||||||||||||
Austria |
99.99 |
95.20 |
98.67 |
90.50 |
||||||||||||
Belarus |
99.90 |
99.90 |
- |
- |
||||||||||||
Brazil |
95.38 |
96.74 |
96.60 |
45.82 |
||||||||||||
Bulgaria |
99.83 |
99.92 |
99.44 |
82.64 |
||||||||||||
Colombia |
90.23 |
90.11 |
87.20 |
- |
||||||||||||
Costa Rica |
90.74 |
96.74 |
97.01 |
- |
||||||||||||
Croatia |
99.00 |
99.00 |
98.90 |
92.30 |
||||||||||||
Dominican Republic |
99.12 |
98.75 |
89.63 |
53.36 |
||||||||||||
Ecuador |
96.03 |
81.80 |
80.83 |
- |
||||||||||||
El Salvador |
82.19 |
96.31 |
89.95 |
- |
||||||||||||
Guatemala |
88.44 |
90.50 |
88.46 |
28.51 |
||||||||||||
Honduras |
73.93 |
81.87 |
75.08 |
- |
||||||||||||
North Macedonia |
99.80 |
99.90 |
99.20 |
99.50 |
||||||||||||
Mexico |
95.44 |
96.56 |
93.96 |
49.46 |
||||||||||||
Nicaragua |
71.75 |
79.36 |
78.49 |
- |
||||||||||||
Paraguay |
76.89 |
80.76 |
83.63 |
- |
||||||||||||
Peru |
88.03 |
85.15 |
85.52 |
25.70 |
||||||||||||
Puerto Rico |
- |
96.95 |
99.26 |
90.65 |
||||||||||||
Serbia |
99.80 |
98.00 |
99.50 |
- |
||||||||||||
Slovenia |
99.90 |
- |
99.30 |
80.00 |
||||||||||||
Uruguay |
99.52 |
99.23 |
98.65 |
- |
• |
In December 2020, our Brazilian subsidiary, Claro S.A. (“Claro Brasil”), together with two other purchasers, won |
a competitive bid to acquire the mobile business owned by Oi Group in Brazil. Pursuant to the transaction, Claro Brasil paid R$3.6 billion for 32.0% of Oi Group’s mobile business. 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. The final purchase price for the acquisition was Ps.14.2 billion, net of cash acquired, of which an amount of Ps.1.3 billion was withheld for price adjustment purposes and other conditions, in accordance with the purchase agreement. Additionally, Claro Brasil received Ps.781 million during the twelve months following April 20, 2022, for transition services. On October 4, 2023, Claro Brasil and the two other purchasers reached an agreement on the value of a post-purchase price adjustment, pursuant to which Ps.658 million was paid to Oi Group. The post-purchase price adjustment corresponds to 50% of the Ps.1.3 billion withheld at closing for price adjustment purposes plus interest and monetary correction of Ps.155.7 million. All issues and disputes between the Oi Group, Claro Brasil and the two other purchasers relating to the determination of the acquisition price are now concluded. |
• |
On August 8, 2022, we completed the spin-off of our telecommunications towers and other related passive infrastructure in Latin America outside of Mexico, other than Colombia and our telecommunications towers existing in Peru and in the Dominican Republic prior to |
the spin off. As part of the spin-off and the associated corporate restructuring, we contributed to Sitios Latam 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 and in the Dominican Republic prior to the spin-off. The shares of Sitios Latam began trading on the Mexican Stock Exchange on September 29, 2022. On February 3, 2023, we completed the sale of all of our telecommunications towers owned by our subsidiary in the Dominican Republic to Sitios Latam for an amount of Ps.2.4 billion. Between March and July 2023, we completed the sale of all of our telecommunication towers owned by our subsidiary in Peru to Sitios Latam for an amount of Ps.4.0 billion. In total, 4,592 telecommunications towers were transferred pursuant to these two transactions in 2023. |
• |
On October 6, 2022, we entered into an agreement to combine our Chilean operation, Claro Chile, with the Chilean operations of LLA, VTR, to form a 50:50 joint venture, ClaroVTR, which we previously announced on September 29, 2021. On December 26, 2023, we announced our entry into a transaction agreement (the “Claro Chile Transaction Agreement”) with LLA, ClaroVTR and certain of our and LLA’s affiliates and an amended shareholders agreement to amend ClaroVTR’s governance structure. Pursuant to the Claro Chile Transaction Agreement, we agreed with LLA to, collectively in proportion to our respective shareholding interests or individually, provide additional capital to ClaroVTR, during the calendar year 2023 and through June 30, 2024 in an aggregate amount not to exceed CLP$972.4 billion (Ps.18.7 billion) (the “Commitment”). This Commitment seeks to support the execution of the business plan of ClaroVTR, and CLP$289.3 billion (Ps.5.6 billion) of the Commitment aims to permit the refinancing of certain bank debt guaranteed by the Company and existing at the formation of ClaroVTR. The Claro Chile Transaction Agreement provides us and LLA with an exercisable catch-up right on or before August 1, 2024 to cure any failure to fund our or LLA’s respective portions of the Commitment in order to maintain ClaroVTR as a 50:50 joint venture. As of December 31, 2023, we have purchased notes from ClaroVTR with an aggregate principal amount of CLP$742.1 billion (Ps.14.3 billion) (including the amounts used for the refinancing of bank debt) that are convertible into shares of ClaroVTR. In September 2023, we identified impairment indicators and assessed that there is objective evidence that ClaroVTR is impaired. As a result, an amount of Ps.4.7 billion was recorded as the difference between the recoverable amount of ClaroVTR and its carrying value. Additionally, as of December 31, |
2023, we recorded an impairment relating to purchased convertible notes from ClaroVTR totaling Ps.12.2 billion. Both amounts are recorded in the “valuation of derivatives, interest cost from labor obligations and other financial items” caption of the consolidated statements of comprehensive income in our audited consolidated financial statements. See Note 22 to our audited consolidated financial statements. |
• |
On February 6, 2023, we entered into a definitive agreement with Österreichische Beteiligungs AG (“OBAG”) with respect to OBAG’s and América Móvil’s participations in Telekom Austria AG (“Telekom Austria” or “TKA”) (the “TKA Shareholders Agreement”), which became effective on February 6, 2023. The TKA Shareholders Agreement provides a new 10-year term from February 2, 2023 and ensures América Móvil’s leadership and control over Telekom Austria Group by providing América Móvil with the right to nominate the majority of Telekom Austria Group’s supervisory board members and to nominate the chairman and chief executive officer of Telekom Austria Group’s management board with the decision-making vote over all management decisions. As part of the renewal of the TKA Shareholders Agreement, América Móvil and OBAG agreed to firmly support the spin-off of the mobile towers in most of the countries in which TKA operates, including Austria. In furtherance of the foregoing, we procured a € 500 million, five-year bullet loan on behalf of EuroTeleSites AG (“EuroTeleSites”), the company designated to own TKA’s towers after the spin-off. On July 6, 2023, EuroTeleSites launched a € 500 million 5.25% five-year bond. The five-year bullet loan and five-year bond were designed to ensure EuroTeleSite’s full funding at the time of the tower spin-off. The spin-off of TKA’s tower business, in all countries in which TKA operates, other than Belarus, was approved by the shareholders of TKA in an extraordinary shareholders’ meeting on August 1, 2023. On September 22, 2023, TKA completed the spin-off of its telecommunications towers and other related passive infrastructure in all countries in which TKA operates, other than Belarus, and listed the shares of EuroTeleSites on the Vienna Stock Exchange. As part of the spin-off, TKA contributed to EuroTeleSites net total assets of € 290 million in the form of capital stock, assets and liabilities, mainly consisting of the shares of TKA’s subsidiary. Both of TKA and EuroTeleSites are indirect subsidiaries of América Móvil over which América Móvil retains a controlling interest. |
• |
intense competition, with growing costs for marketing and subscriber acquisition and retention, as well as increasing service 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 stronger data service capabilities; |
• |
declining demand for voice services; |
• |
declining demand for traditional Pay TV services; |
• |
increasing capital expenditures linked to higher demand for connectivity; |
• |
our continued strategic focus on our cost savings programs 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) THE YEARS ENDED DECEMBER 31, | ||||||
2022 |
2023 |
% CHANGE | ||||
Brazilian real |
3.9045 |
3.5545 |
(9.0) | |||
Colombian peso |
0.0048 |
0.0041 |
(14.6) | |||
Argentine peso |
0.1586 |
0.0681 |
(57.1) (1) | |||
U.S. dollar |
20.1283 |
17.7617 |
(11.8) | |||
Euro |
21.2285 |
19.2047 |
(9.5) | |||
(1) As of December 31, 2023, the devaluation of the Argentine peso against the Mexican peso is due pri- marily to economic policies established by the new Argentine presidential administration. The stated goals of the policies involve, among other things, the devaluation of the Argentine peso by more than 50 percent against the U.S. dollar. |
YEAR ENDED DECEMBER 31, 2023 |
||||||||||||||||
OPERATING REVENUES |
OPERATING INCOME |
|||||||||||||||
(in millions of Mexican pesos) |
(as a % of total operating revenues) |
(in millions of Mexican pesos) |
(as a % of total operat- ing income) |
|||||||||||||
Mexico Wireless |
Ps. 258,788 |
31.7 |
Ps. 84,817 |
50.6 |
||||||||||||
Mexico Fixed |
101,832 |
12.5 |
12,064 |
7.2 |
||||||||||||
Brazil |
166,710 |
20.4 |
25,618 |
15.3 |
||||||||||||
Colombia |
62,718 |
7.7 |
9,959 |
5.9 |
||||||||||||
Southern Cone (Argentina) |
18,923 |
2.3 |
515 |
0.3 |
||||||||||||
Southern Cone (Paraguay and Uruguay) |
4,006 |
0.5 |
(444 |
) |
(0.3 |
) | ||||||||||
Andean Region |
52,992 |
6.5 |
10,639 |
6.3 |
||||||||||||
Central America (1) |
44,064 |
5.4 |
6,956 |
4.1 |
||||||||||||
Caribbean |
38,268 |
4.7 |
7,723 |
4.6 |
||||||||||||
Europe |
100,836 |
12.4 |
15,752 |
9.4 |
||||||||||||
Eliminations |
(33,124 |
) |
(4.1 |
) |
(5,815 |
) |
(3.4 |
) | ||||||||
Total |
Ps. 816,013 |
100.0 |
Ps. 167,784 |
100.0 |
YEAR ENDED DECEMBER 31, 2022 |
||||||||||||||||
OPERATING REVENUES |
OPERATING INCOME |
|||||||||||||||
(in millions of Mexican pesos) |
(as a% of total operating revenues) |
(in millions of Mexican pesos) |
(as a% of total operat- ing income) |
|||||||||||||
Mexico Wireless |
Ps. 245,899 |
29.1 |
Ps. 76,709 |
44.9 |
||||||||||||
Mexico Fixed |
99,985 |
11.8 |
16,172 |
9.5 |
||||||||||||
Brazil |
170,880 |
20.2 |
26,666 |
15.6 |
||||||||||||
Colombia |
71,300 |
8.4 |
14,171 |
8.3 |
||||||||||||
Southern Cone (Argentina) |
34,517 |
4.1 |
2,571 |
1.5 |
||||||||||||
Southern Cone (Paraguay and Uruguay) |
4,521 |
0.5 |
(778 |
) |
(0.5 |
) | ||||||||||
Andean Region |
55,498 |
6.6 |
8,262 |
4.8 |
||||||||||||
Central America (1) |
47,215 |
5.6 |
7,540 |
4.4 |
||||||||||||
Caribbean |
42,714 |
5.1 |
10,285 |
6.0 |
||||||||||||
Europe |
105,956 |
12.5 |
16,156 |
9.5 |
||||||||||||
Eliminations |
(33,984 |
) |
(3.9 |
) |
(6,883 |
) |
(4.0 |
) | ||||||||
Total |
Ps. 844,501 |
100.0 |
Ps. 170,871 |
100.0 |
||||||||||||
(1) Excludes Claro Panama. |
• |
Capital expenditures - We make substantial capital expenditures to continue expanding and improving our networks in each country in which we operate. Our capital expenditures on plant, property and equipment and acquisition or renewal of licenses were Ps.156.3 billion in 2023, Ps.159.8 billion in 2022, and Ps.158.7 billion in 2021. The amount of capital expenditures can vary significantly from year to year, depending on acquisition opportunities, concession renewal schedules and the need for more spectrum. We have budgeted capital expenditures for 2024 of approximately U.S.$7.0 billion (Ps.124.4 billion), which will be primarily funded by our operating activities. |
• |
Acquisitions - |
• |
Short-term debt and contractual obligations - |
• |
Long-term debt and contractual obligations - |
between 2025 and 2027, including approximately Ps.58.6 billion of principal and amortization, Ps.39.8 billion in long-term lease debt, and Ps.19.7 billion in purchase obligations. On the same date, we had approximately Ps.102.6 billion in debt and contractual obligations due between 2028 and 2029, including approximately Ps.57.7 billion of principal and amortization, Ps.28.6 billion in long-term lease debt, and Ps.16.3 billion in purchase obligations. On the same date, we had approximately Ps.283.5 billion in debt and contractual obligations due after 2029, including approximately Ps.223.4 billion of principal and amortization, Ps.32.4 billion in long-term lease debt, and Ps.27.7 billion in purchase obligations. |
• |
Dividends - |
• |
Share repurchases - |
TOTAL DEBT (1) |
||||
(millions of Mexican pesos) |
||||
SENIOR NOTES |
||||
DENOMINATED IN U.S. DOLLARS |
||||
América Móvil 3.625% Senior Notes due 2029 |
16,894 |
|||
América Móvil 2.875% Senior Notes due 2030 |
16,894 |
|||
América Móvil 4.700% Senior Notes Due 2032 |
12,670 |
TOTAL DEBT (1) |
||||
(millions of Mexican pesos) |
||||
América Móvil 6.375% Senior Notes due 2035 |
16,578 |
|||
América Móvil 6.125% Senior Notes due 2037 |
6,238 |
|||
América Móvil 6.125% Senior Notes due 2040 |
33,711 |
|||
América Móvil 4.375% Senior Notes due 2042 |
19,428 |
|||
América Móvil 4.375% Senior Notes due 2049 |
21,117 |
|||
Total |
Ps. 143,528 |
DENOMINATED IN MEXICAN PESOS |
||||
Commercial Paper 11.439% due 2024 |
200 |
|||
América Móvil TIIE + 0.020% Domestic Senior Notes due 2024 (2) |
1,357 |
|||
América Móvil TIIE + 0.050% Domestic Senior Notes due 2024 |
1,920 |
|||
América Móvil 7.125% Senior Notes due 2024 |
11,000 |
|||
América Móvil 0.000% Domestic Senior Notes due 2025 |
5,930 |
|||
América Móvil TIIE + 0.050% Domestic Senior Notes due 2025 |
3,000 |
|||
América Móvil TIIE + 0.300% Domestic Senior Notes due 2025 |
410 |
|||
América Móvil 9.350% Senior Notes due 2028 |
11,016 |
|||
América Móvil 9.500% Senior Notes due 2031 |
17,000 |
|||
América Móvil 9.520% Domestic Senior Notes due 2032 |
14,679 |
|||
América Móvil 8.460% Senior Notes due 2036 |
7,872 |
|||
Telmex 8.360% Domestic Senior Notes due 2037 |
4,964 |
|||
América Móvil 4.840% Domestic Senior Notes due 2037 |
10,579 |
|||
Total |
Ps. 89,927 |
|||
DENOMINATED IN EURO |
||||
Commercial Paper 4.110% - 4.210% due 2024 |
9,511 |
|||
Exchangeable Bond 0.00% due 2024 |
37,663 |
|||
América Móvil 1.500% Senior Notes due 2024 |
15,851 |
|||
TKA 1.500% Senior Notes due 2026 |
13,987 |
|||
América Móvil 0.750% Senior Notes due 2027 |
14,095 |
|||
América Móvil 2.125% Senior Notes due 2028 |
11,122 |
|||
TKA 5.250% Senior Notes due 2028 |
9,324 |
|||
Total |
Ps. 111,554 |
|||
DENOMINATED IN BRAZILIAN REAIS |
||||
Claro Brasil CDI + 1.400% Domestic Senior Notes due 2024 |
14,830 |
|||
Claro Brasil CDI + 1.100% Domestic Senior Notes due 2024 |
3,489 |
|||
Claro Brasil CDI + 1.370% Domestic Senior Notes due 2025 |
5,234 |
|||
Claro Brasil CDI + 1.350% Domestic Senior Notes due 2026 |
5,234 |
|||
Total |
Ps. 28,788 |
|||
DENOMINATED IN POUND STERLING |
||||
América Móvil 5.000% Senior Notes due 2026 |
10,754 |
|||
América Móvil 5.750% Senior Notes due 2030 |
13,980 |
|||
América Móvil 4.948% Senior Notes due 2033 |
6,452 |
|||
América Móvil 4.375% Senior Notes due 2041 |
16,130 |
|||
Total |
Ps. 47,316 |
TOTAL DEBT (1) |
||||
(millions of Mexican pesos) |
||||
DENOMINATED IN JAPANESE YEN |
||||
América Móvil 2.950% Senior Notes due 2039 |
1,557 |
|||
Total |
Ps. 1,557 |
|||
DENOMINATED IN CHILEAN PESOS |
||||
América Móvil 4.000% Senior Notes due 2035 |
3,541 |
|||
Total |
Ps. 3,541 |
|||
BANK DEBT AND OTHER |
||||
DENOMINATED IN EUROS |
10,443 |
|||
DENOMINATED IN MEXICAN PESOS |
52,680 |
|||
DENOMINATED IN PERUVIAN SOLES |
11,343 |
|||
Total |
Ps. 74,466 |
|||
Total Debt |
Ps. 500,677 |
Less short-term debt and current portion of long-term debt |
160,964 |
|||
Total Long-term Debt |
Ps. 339,713 |
|||
(1) Totals may not sum due to rounding.(2) The notes matured on April 22, 2024, and were paid in full. |
AS OF DECEMBER 31, 2023 (in millions of Mexican pesos) |
||||||||
PARENT |
GUARANTOR |
|||||||
Current assets |
Ps. 35,268 |
Ps. 44,826 |
||||||
Total assets |
832,409 |
200,905 |
||||||
Current liabilities |
122,738 |
143,858 |
||||||
Total liabilities |
465,697 |
149,306 |
||||||
YEAR ENDED DECEMBER 31, 2022 (in millions of Mexican pesos) |
||||||||
PARENT |
GUARANTOR |
|||||||
Total revenues |
Ps. - |
Ps. 237,291 |
||||||
Operating Income |
(6,170 |
) |
89,258 |
|||||
Net profit for the year |
(9,409 |
) |
87,653 |
• |
provide higher handset subsidies; |
• |
offer higher commissions to retailers; |
• |
provide free airtime or other services (such as internet access); |
• |
offer services at lower costs through double, triple and quadruple play packages or other pricing strategies; |
• |
expand their networks faster; or |
• |
develop and deploy improved technologies faster, such as 5G LTE technology. |
• |
physical damage to access lines and fixed networks; |
• |
power surges or outages; |
• |
natural disasters; |
• |
climate change; |
• |
malicious actions, such as theft or misuse of customer data; |
• |
limitations on the use of our radio bases; |
• |
software defects; |
• |
human error; and |
• |
other disruptions beyond our control, including as a result of civil unrest in the regions where we operate. |
• |
significant governmental influence over local economies; |
• |
substantial fluctuations in economic growth; |
• |
high levels of inflation, including hyperinflation; |
• |
changes in currency values; |
• |
exchange controls or restrictions on expatriation of earnings; |
• |
high domestic interest rates; |
• |
price controls; |
• |
changes in governmental economic, tax, labor or other policies; |
• |
imposition of trade barriers; |
• |
changes in law or regulation; |
• |
imposition of local requirements or orders, including potential censorship or requirements to provide user information; and |
• |
overall political, social and economic instability and civil unrest. |
SERIES (1) |
NUMBER OF SHARES (MILLIONS) |
PERCENT OF CAPITAL |
||||||
Outstanding B Shares (no par value) |
62,144 |
100 |
% | |||||
Total |
62,144 |
100 |
% |
(1) On December 20, 2022, our shareholders approved the Reclassification of all of our AA Shares, A Shares and L Shares into a single series of B Shares on a one for one basis, and on March 16, 2023, our B Shares started trading. |
SHAREHOLDER |
SHARES OWNED (MILLIONS) |
PERCENT OF CLASS (1) |
||||||
B SHARES: |
||||||||
Family Trust (2) |
17,743 |
28.6 |
% | |||||
Control Empresarial de Capitales (3) |
10,700 |
17.2 |
% | |||||
Carlos Slim Helú |
5,200 |
8.4 |
% |
(1) Percentage figures are based on the number of shares outstanding as of March 31, 2024. |
(2) The Family Trust is a Mexican trust that holds B Shares for the benefit of members of the Slim Family. In addition to shares held by the Family Trust, members of the Slim Family, including Carlos Slim Helú, directly own an aggregate of 13,783 million B Shares representing 22.2% of all outstanding B Shares. According to beneficial reports filed with the SEC, none of these members of the Slim Family, other than Carlos Slim Helú, individually directly own more than 5% of our shares. |
(3) Includes shares owned by subsidiaries of Control Empresarial de Capitales, formerly known as Inversora Carso. Based on beneficial ownership reports filed with the SEC, Control Empresarial de Capitales is a Mexican sociedad anónima de capital variable |
(4) Based on beneficial ownership reports filed with the SEC. |
PAYMENT DATE |
PESOS PER SHARE |
DOLLARS PER SHARE |
||||||
November 13, 2023 |
Ps. 0.23 |
U.S.$ |
0.0131 |
|||||
July 17, 2023 |
Ps. 0.23 |
U.S.$ |
0.0136 |
|||||
August 29, 2022 |
Ps. 0.44 |
U.S.$ |
0.0221 |
|||||
November 8, 2021 |
Ps. 0.20 |
U.S.$ |
0.0097 |
|||||
July 19, 2021 |
Ps. 0.20 |
U.S.$ |
0.0100 |
|||||
November 9, 2020 |
Ps. 0.19 |
U.S.$ |
0.0092 |
|||||
July 20, 2020 |
Ps. 0.19 |
U.S.$ |
0.0085 |
|||||
November 11, 2019 |
Ps. 0.17 |
U.S.$ |
0.0090 |
|||||
July 15, 2019 |
Ps. 0.18 |
U.S.$ |
0.0095 |
SECURITY |
STOCK EXCHANGE |
TICKER SYMBOL | ||
B Shares |
Mexican Stock Exchange—Mexico City |
AMX | ||
B Share ADSs |
New York Stock Exchange—New York |
AMX |
PERIOD |
TOTAL NUMBER OF SHARES PURCHASED (1) |
AVERAGE PRICE PER SHARE |
TOTAL NUMBER OF SHARES PUR- CHASED AS PART OF PUBLICLY AN- NOUNCED PLANS OR PROGRAMS |
APPROXIMATE MEXICAN PESO VALUE OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS (2) |
||||||||||||
January 2023 |
41,000,000 |
Ps. 19.29 |
41,000,000 |
Ps. 19,624,826,102.31 |
||||||||||||
February 2023 |
38,000,000 |
18.93 |
38,000,000 |
18,909,717,139.46 |
||||||||||||
March 2023 |
22,500,000 |
19.38 |
22,500,000 |
18,476,148,690.44 |
||||||||||||
April 2023 |
13,725,000 |
19.32 |
13,725,000 |
19,798,706,951.27 |
||||||||||||
May 2023 |
19,775,000 |
19.40 |
19,775,000 |
19,417,290,615.94 |
||||||||||||
June 2023 |
24,750,000 |
19.12 |
24,750,000 |
18,946,772,568.15 |
||||||||||||
July 2023 |
42,750,000 |
18.02 |
42,750,000 |
18,180,887,206.71 |
||||||||||||
August 2023 |
135,040,000 |
16.31 |
135,040,000 |
15,990,885,465.78 |
||||||||||||
September 2023 |
108,460,000 |
15.53 |
108,460,000 |
14,316,726,519.56 |
||||||||||||
October 2023 |
139,000,000 |
15.16 |
139,000,000 |
12,221,125,972.78 |
||||||||||||
November 2023 |
110,000,000 |
15.34 |
110,000,000 |
10,543,142,289.67 |
||||||||||||
December 2023 |
180,000,000 |
16.03 |
180,000,000 |
7,674,539,433.33 |
||||||||||||
Total Shares (3) |
875,000,000 |
875,000,000 |
(1) This includes purchases by us and our affiliated purchasers in 2023. | ||||||||
(2) This is the approximate Mexican peso amount available at the end of the period for purchases of our shares pursuant to our share repurchase program. | ||||||||
(3) Prior to March 16, 2023, we periodically repurchased at our discretion our L Shares and A Shares on the open market. |
• |
whose shares were not acquired through the Mexican Stock Exchange or other markets authorized by the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público) or the Mexican Federal Tax Code; |
• |
of Series B Shares or B Share ADSs that control us; |
• |
that holds 10.0% or more of our shares; |
• |
that is part of a group of persons for purposes of Mexican law that controls us (or holds 10.0% or more of our shares); or |
• |
that is a resident of Mexico or is a corporation resident in a tax haven (as defined by the Mexican Income Tax Law). |
• |
a citizen or resident of the United States of America, |
• |
a corporation (or other entity taxable as a corporation) organized under the laws of the United States of America or any state thereof or |
• |
otherwise subject to U.S. federal income taxation on a net income basis with respect to the shares or ADSs. |
• |
establishes that it is an exempt recipient, if required, or |
• |
provides an accurate taxpayer identification number on a properly completed IRS Form W-9 and certifies that no loss of exemption from backup withholding has occurred. |
• |
gain is effectively connected with the conduct by the holder of a U.S. trade or business or |
• |
in the case of gain realized by an individual holder, the holder is present in the United States for 183 days or more in the taxable year of the sale and certain other conditions are met. |
CARLOS SLIM DOMIT | ||
Chairman of the Board and the Executive Committee | ||
Born: |
1967 | |
First elected: |
2011 | |
Principal occupation: |
Chairman of the Board of América Móvil | |
Other directorships: |
Chairman of the Board of Grupo Carso and its affiliates | |
Business experience: |
Chief Executive Officer of Sanborn Hermanos |
PATRICK SLIM DOMIT | ||
Cochairman of the Board and Member of the Executive Committee | ||
Born: |
1969 | |
First elected: |
2004 | |
Principal occupation: |
Cochairman of the Board of América Móvil | |
Other directorships: |
Director of Grupo Carso and its affiliates | |
Business experience: |
Chief Executive Officer of Grupo Carso and Vice Chairman of Commercial Markets of Telmex |
DANIEL HAJJ ABOUMRAD | ||
Director and Member of the Executive Committee | ||
Born: |
1966 | |
First elected: |
2000 | |
Principal occupation: |
Chief Executive Officer of América Móvil | |
Other directorships: |
Director of Grupo Carso and Telmex | |
Business experience: |
Chief Executive Officer of Compañía Hulera Euzkadi |
LUIS ALEJANDRO SOBERÓN KURI | ||
Director | ||
Born: |
1960 | |
First elected: |
2000 | |
Principal occupation: |
Chief Executive Officer and Chairman of the Board of Corporación Interamericana de Entretenimiento (“CIE”) | |
Other directorships: |
Director of Banco Nacional de México | |
Business experience: |
Various positions at CIE and its affiliates |
FRANCISCO JOSÉ MEDINA CHÁVEZ | ||
Director | ||
Born: |
1956 | |
First elected: |
2018 | |
Principal occupation: |
Chairman of Grupo Fame | |
Other directorships: |
Director of Banco Nacional de México and Grupo Chedraui | |
Business experience: |
Various positions at Aeroméxico and Mitsui Mexico |
ERNESTO VEGA VELASCO | ||
Director and Chairman of the Audit and Corporate Practices Committee | ||
Born: |
1937 | |
First elected: |
2007 | |
Principal occupation: |
Independent member of the Board of Directors of certain companies. | |
Other directorships: |
Director of Kuo and its affiliates, Impulsora de Desarrollo y el Empleo en América Latina and Industrias Peñoles | |
Business experience: |
Various positions in Desc Group, including Corporate Vice President |
RAFAEL MOISÉS KALACH MIZRAHI | ||
Director and Member of the Audit and Corporate Practices Committee | ||
Born: |
1946 | |
First elected: |
2012 | |
Principal occupation: |
Chairman and Chief Executive Officer of Grupo Kaltex | |
Other directorships: |
Director of Grupo Carso and affiliates | |
Business experience: |
Various positions in Grupo Kaltex |
ANTONIO COSÍO PANDO | ||
Director | ||
Born: |
1968 | |
First elected: |
2015 | |
Principal occupation: |
Vice President of Grupo Hotelero las Brisas, Compañía Industrial Tepeji del Río, and Bodegas de Santo Tomás | |
Other directorships: |
Director of Grupo Carso and its affiliates, Corporación Actinver, and Grupo Aeroméxico | |
Business experience: |
Various positions in Grupo Brisas and Compañía Industrial Tepeji del Río |
ÓSCAR VON HAUSKE SOLÍS | ||
Director | ||
Born: |
1957 | |
First elected: |
2011 | |
Principal occupation: |
Chief Fixed-line Operations Officer of América Móvil | |
Other directorships: |
Member of the Supervisory Board of Telekom Austria and EuroTeleSites | |
Business experience: |
Chief Executive Officer of Telmex Internacional, Director of Systems and Telecommunications of Telmex and Board member of KPN |
VANESSA HAJJ SLIM | ||
Director | ||
Born: |
1997 | |
First elected: |
2018 | |
Principal occupation: |
Director of América Móvil and Head of Business Development at Inmuebles Carso | |
Other directorships: |
Director of Grupo Carso |
DAVID IBARRA MUÑOZ | ||
Director | ||
Born: |
1930 | |
First elected: |
2000 | |
Principal occupation: |
Retired | |
Other directorships: |
Director of Grupo Carso and its affiliates, and Grupo Mexicano de Desarrollo | |
Business experience: |
Chief Executive Officer of Nacional Financiera and Secretary of Finance and Public Credit of Mexico |
GISSELLE MORÁN JIMÉNEZ | ||
Director | ||
Born: |
1974 | |
First elected: |
2021 | |
Principal occupation: |
Chief Executive Officer of Real Estate, Market and Life-style | |
Other directorships: |
Director in Alignmex Real Estate Capital | |
Business experience: |
Corporate Commercial Director of Grupo Mundo Ejecutivo |
PABLO ROBERTO GONZÁLEZ GUAJARDO | ||
Director and Member of the Audit and Corporate Practices Committee | ||
Born: |
1967 | |
First elected: |
2007 | |
Principal occupation: |
Chief Executive Officer of Kimberly Clark de México | |
Other directorships: |
Director of Kimberly Clark de México, Grupo Sanborns and Grupo Lala | |
Business experience: |
Various positions in the Kimberly Clark Corporation and Kimberly Clark de México |
CLAUDIA JAÑEZ SÁNCHEZ | ||
Director | ||
Born: |
1971 | |
First elected: |
2021 | |
Principal occupation: |
Chairwoman of Consejo Mexicano de la Industria de Productos de Consumo, A.C. | |
Other directorships: |
Director of Bolsa Mexicana de Valores, The Mexico Fund Inc., Grupo Industrial Saltillo, HSBC Mexico and Impul-sora del Desarrollo y el Empleo en América Latina | |
Business experience: |
Chairwoman of DuPont Latin America and Chairwoman of the Executive Council of Global Companies |
DANIEL HAJJ ABOUMRAD | ||
Chief Executive Officer | ||
Appointed: |
2000 | |
Business experience: |
Director of Telmex and Chief Executive Officer of Compañía Hulera Euzkadi |
CARLOS JOSÉ GARCÍA MORENO ELIZONDO | ||
Chief Financial Officer | ||
Appointed: |
2001 | |
Business experience: |
General Director of Public Credit at the Ministry of Finance and Public Credit; Managing Director of UBS Warburg; Associate Director of Financing at Petróleos Mexicanos (Pemex); Member of Telekom Austria’s Supervisory Board; Member of KPN Supervisory Board |
ALEJANDRO CANTÚ JIMÉNEZ | ||
General Counsel | ||
Appointed: |
2001 | |
Business experience: |
Member of Telekom Austria’s Supervisory Board |
OSCAR VON HAUSKE SOLÍS | ||
Chief Fixed-line Operations Officer and Chief Information Security Officer (“CISO”) | ||
Appointed: |
2010 | |
Business experience: |
Chief Executive Officer of Telmex Internacional; Chief Sys- tems and Telecommunications Officer of Telmex; Head of Finance at Grupo Condumex; Director of Telmex, Telmex Internacional, Empresa Brasileira de Telecomunicações S.A. (“Embratel”), and Net Serviços de Comunicação S.A. (“Net Serviços”); Member of Telekom Austria’s Supervisory Board |
RAFAEL COUTTOLENC URREA | ||
Chief Wireless Operations Officer | ||
Appointed: |
2021 | |
Business experience: |
Various positions in América Móvil |
NYSE STANDARDS |
OUR CORPORATE GOVERNANCE PRACTICES | |
DIRECTOR INDEPENDENCE | ||
Majority of board of directors must be independent. §303A.01. “Controlled companies” are exempt from this requirement. A controlled company is one in which more than 50.0% of the voting power is held by an individual, group or another company, rather than the public. §303A.00. As a controlled company, we would be exempt from this requirement if we were a U.S. issuer. |
Pursuant to the Mexican Securities Market Law, our shareholders are required to elect a board of directors of no more than 21 members, 25% of whom must be independent. Certain persons are per se non-independent, including insiders, control persons, major suppliers and any relatives of such persons. Under the Mexican Securities Market Law, our shareholders’ meeting is required to make a determination as to the independence of our directors, though such determination may be challenged by the CNBV. There is no exemption from the independence requirement for controlled companies.Currently, a majority of our Board of Directors is independent. |
EXECUTIVE SESSIONS | ||
Non-management directors must meet at regularly scheduled executive sessions without management. Independent directors should meet alone in an executive session at least once a year. §303A.03. |
Our non-management directors have not held executive sessions without management in the past, and they are not required to do so. |
NOMINATING/CORPORATE GOVERNANCE COMMITTEE | ||
Nominating/corporate governance committee composed entirely of independent directors is required. The committee must have a charter specifying the purpose, duties and evaluation procedures of the committee. §303A.04. “Controlled companies” are exempt from these requirements. §303A.00. As a controlled company, we would be exempt from this requirement if we were a U.S. issuer. |
Mexican law requires us to have one or more committees that oversee certain corporate practices, including the appointment of directors and executives. Under the Mexican Securities Market Law, committees overseeing certain corporate practices must be composed of independent directors. However, in the case of controlled companies, such as ours, only a majority of the committee members must be independent. Currently, we do not have a nominating committee, and we are not required to have one. Our Audit and Corporate Practices Committee, which is composed of independent directors, oversees our corporate practices, including the compensation and appointment of directors and executives. |
COMPENSATION COMMITTEE | ||
Compensation committee composed entirely of independent directors is required, which must evaluate and approve executive officer compensation. The committee must have a charter specifying the purpose, duties and evaluation procedures of the committee. §303A.02(a)(ii) and §303A.05. “Controlled companies” are exempt from this requirement. §303A.00. |
We have an Audit and Corporate Practices Committee of four members. Each member of the Audit and Corporate Practices Committee is independent, as independence is defined under the Mexican Securities Market Law, and also meets the independence requirements of Rule 10A-3 under the U.S. Securities Exchange Act of 1934, as amended. Our Audit and Corporate Practices Committee operates primarily pursuant to (1) a written charter adopted by our Board of Directors, which assigns to the Committee responsibility over those matters required by Rule 10A-3, (2) our bylaws and (3) Mexican law. For a more detailed description of the duties of our Audit and Corporate Practices Committee, see “Management” under Part V of this annual report. |
AUDIT COMMITTEE | ||
Audit committee satisfying the independence and other requirements of Rule 10A-3 under the Exchange Act and the additional requirements under the NYSE standards is required. §§303A.06 and 303A.07. |
We have an Audit and Corporate Practices Committee of three members. Each member of the Audit and Corporate Practices Committee is independent, as independence is defined under the Mexican Securities Market Law, and also meets the independence requirements of Rule 10A-3 under the U.S. Securities Exchange Act of 1934, as amended. Our Audit and Corporate Practices Committee operates primarily pursuant to (1) a written charter adopted by our Board of Directors, which assigns to the Committee responsibility over those matters required by Rule 10A-3, (2) our bylaws and (3) Mexican law. For a more detailed description of the duties of our Audit and Corporate Practices Committee, see “Management” under Part V of this annual report. |
NYSE STANDARDS |
OUR CORPORATE GOVERNANCE PRACTICES | |
EQUITY COMPENSATION PLANS | ||
Equity compensation plans and all material revisions thereto require shareholder approval, subject to limited exemptions. §§303A.08 and 312.03. |
Shareholder approval is required under Mexican law for the adoption or amendment of an equity compensation plan. Such plans must provide for similar treatment of executives in comparable positions. |
SHAREHOLDER APPROVAL FOR ISSUANCE OF SECURITIES | ||
Issuances of securities (1) that will result in a change of control of the issuer, (2) that are to a related party or someone closely related to a related party, (3) that have voting power equal to at least 20.0% of the outstanding common stock voting power before such issuance or (4) that will increase the number of shares of common stock by at least 20.0% of the number of outstanding shares before such issuance requires shareholder approval. §§312.03(b)-(d). |
Mexican law requires us to obtain shareholder approval for any issuance of equity securities, although this approval may be delegated by the shareholders meeting to our Board of Directors. Under certain circumstances, we may also sell treasury stock subject to the approval of our Board of Directors. |
CODE OF BUSINESS CONDUCT AND ETHICS | ||
Corporate governance guidelines and a code of business conduct and ethics are required, with disclosure of any waiver for directors or executive officers. The code must contain compliance standards and procedures that will facilitate the effective operation of the code. §303A.10. |
We have adopted a code of ethics, which applies to all of our directors and executive officers and other personnel. For more information, see “Corporate Governance–Code of Ethics” under Part V of this annual report. |
CONFLICTS OF INTEREST | ||
A company’s audit committee or another independent body of the board of directors shall conduct a reasonable prior review and oversight of related party transactions required by Item 7.B of Form 20-F for potential conflicts of interest and will prohibit such transaction if it determines it to be inconsistent with the interests of the company and its shareholders. §314.00. Certain issuances of common stock to a related party require shareholder approval. §312.03(b). |
In accordance with Mexican law, an independent audit committee must provide an opinion to the board of directors regarding any transaction with a related party, which must be approved by the board of directors. Pursuant to Mexican Law, non-material related party transactions, or transactions with certain related parties within the ordinary course of business or on arms-length basis, do not require specific board approval, if consistent with guidelines approved by the Board of Directors. |
SOLICITATION OF PROXIES | ||
Solicitation of proxies and provision of proxy materials is required for all meetings of shareholders. Copies of such proxy solicitations are to be provided to NYSE. §§402.01 and 402.04. |
We are not required to solicit proxies from our shareholders. In accordance with Mexican law and our bylaws, we inform shareholders of all meetings by public notice, which states the requirements for admission to the meeting and we make materials available to be discussed at each shareholders’ meeting. Under the deposit agreement relating to our ADSs, holders of our ADSs receive notices of shareholders’ meetings and, where applicable, instructions on how to instruct the depositary to vote at the meeting. Under the deposit agreement relating to our ADS, we may direct the voting of any ADS as to which no voting instructions are received by the depositary, except with respect to any matter where substantial opposition exists or that materially and adversely affects the rights of holders. |
• |
Cybersecurity governance and data privacy frameworks that include risk assessment and mitigation through a threat intelligence-driven approach, application controls and enhanced security with ransomware defense. Our frameworks leverage International Organization for Standardizations (ISO) 27001/27002 standards for general information technology controls and International Society of Automation (ISA) / International Electrotechnical Commission (IEC) standards for industrial automation. We also consider the National Institute of Standards and Technology (NIST) Cyber Security Framework in measuring overall readiness to respond to cyber threats. |
• |
Policies, software, training programs and hardware solutions are utilized to protect and monitor our environment, including multifactor authentication, firewalls, intrusion detection and prevention systems, vulnerability and penetration testing and identity management systems. We also seek to continually improve our cybersecurity practices through annual reviews. |
• |
Mandatory security awareness education and training for all employees and additional specialist training for IT employees, internal “phishing” testing and training for “clickers,” mandatory security training for all new hires and the publication of periodic cybersecurity newsletters and employee awareness campaigns to highlight security threats. |
• |
We are in the process of updating our cybersecurity incident response plan and processes to respond to and recover from cybersecurity incidents in accordance with international standards. |
• |
Participation with telecom industry associations in Latin America to share threat intelligence and collaboration with organizations across different industries to share best practices. |
• |
Independent third-parties to assess and report on our internal incident response preparedness and help identify areas for continued focus and improvement, test for cyber vulnerabilities, perform penetration tests at least once a year and execute regular information technology reviews based on the NIST Cybersecurity Framework. |
• |
Outside counsel to advise about best practices for cybersecurity oversight, and the evolution of that oversight over time. |
• |
honest and ethical conduct; |
• |
full, fair, accurate, timely and understandable disclosure in reports and documents that we file with, or submit to, the SEC and other authorities; |
• |
compliance with applicable governmental laws, rules and regulations; the prompt internal reporting of violations of the Code of Ethics and the ICP; and |
• |
adherence to the Code of Ethics. |
FREQUENCY |
COVERAGE AREA |
INITIAL DATE |
TERMINATION DATE | |||
Band A (1900 MHz) |
Nationwide |
Sep. 1999 |
Oct. 2039 | |||
Band D (1900 MHz) |
Nationwide |
Oct. 1998 |
Oct. 2038 | |||
Band B (850 MHz) |
Regions 1, 2, 3 |
Aug. 2011 |
Aug. 2026 (1) | |||
Band B (850 MHz) |
Regions 4, 5 |
Aug. 2010 |
Aug. 2037 | |||
Band B (850 MHz) |
Regions 6, 7, 8 |
Oct. 2011 |
Oct. 2026 (1) | |||
Band B (850 MHz) |
Region 9 |
Oct. 2015 |
Oct. 2030 | |||
Bands A and B (1.7/2.1 GHz) |
Nationwide |
Oct. 2010 |
Oct. 2030 | |||
Bands H, I and J (1.7/2.1 GHz) |
Nationwide |
May 2016 |
Oct. 2030 | |||
Band 7 (2.5 GHz) |
98.94% of the population (2) |
Jul. 2017 |
Nov. 2028 – Oct. 2040 – May 2041, Nov. 2041 | |||
Band 3.5 GHz (3) |
Nationwide |
Oct. 2020 (4) |
Oct. 2038 and 2040 | |||
Band F (1900 MHz) |
Nationwide |
Apr. 2025 |
Apr. 2045 | |||
(1) A request for extension was filed with the IFT on April 24, 2023.(2) Except 7 municipalities in the state of Jalisco and 34 municipalities in the state of Zacatecas.(3) On February 15, 2022, Telcel received mobile service authorization for these concessions.(4) The term of this concession is currently in force and was extended by IFT in favor of Telmex until 2040 and afterwards it was assigned by Telmex to Telcel as of March 11, 2020. Concessions acquired from Axtel were extended by the IFT until 2038. |
SUBSIDIARY |
LICENSE |
TERMINATION DATE | ||
Claro Brasil |
Fixed Local Voice Services |
Indefinite | ||
Domestic and International Long-Distance |
2025 | |||
Voice Services |
Indefinite | |||
Personal Communication Services |
Indefinite | |||
Data Services |
Indefinite | |||
Mobile Maritime Services |
Indefinite | |||
Global Mobile Satellite Services |
Indefinite | |||
Claro TV |
DTH TV Services |
Indefinite | ||
Data Services |
Indefinite | |||
Americel S.A. |
Data Services |
Indefinite | ||
Telmex do Brasil |
Data Services |
Indefinite | ||
Claro NXT |
Data Services |
Indefinite | ||
Cable TV Services |
Indefinite |
FREQUENCY |
BANDWIDTH |
TERMINATION DATE | ||
850 MHz |
25 MHz |
Mar. 2024 (1) | ||
1900 MHz |
10 MHz |
Dec. 2039 | ||
5 MHz |
Oct. 2041 | |||
15 MHz |
Mar. 2024 | |||
2.5 GHz |
30 MHz |
Aug. 2023 | ||
10 MHz |
Mar. 2040 | |||
10 MHz |
Mar. 2040 | |||
10 MHz |
Mar. 2040 | |||
700 MHz |
20 MHz |
May 2040 | ||
(1) Comcel has initiated procedures that seek a 20-year renewal of this license. The termination date of this license will be deemed extended until such time as the Colombian government renders a final decision on the renewal. |
COUNTRY |
FREQUENCY |
TERMINATION DATE | ||
AUSTRIA |
800 MHz |
2029 | ||
900 MHz |
2034 | |||
2034 |
2044 | |||
1800 MHz |
2034 | |||
1800 MHz |
2034 | |||
2100 MHz |
2044 | |||
2600 MHz |
2026 | |||
3500 MHz |
2039 | |||
BELARUS |
900 MHz |
Not applicable | ||
1800 MHz |
Not applicable | |||
2100 MHz |
Not applicable | |||
BULGARIA |
700 MHz |
2038 | ||
800 MHz |
2038 | |||
900 MHz |
2024 | |||
1800 MHz |
2024 | |||
2100 MHz |
2025 | |||
3500 MHz |
2041 | |||
26000 MHz |
2042 | |||
CROATIA |
700 MHz |
2036 | ||
800 MHz |
2024 | |||
900 MHz |
2024 | |||
1800 MHz |
2024 | |||
2100 MHz |
2024 | |||
3500 MHz |
2036 | |||
26000 MHz |
2036 | |||
NORTH MACEDONIA |
800 MHz |
2033 | ||
900 MHz |
2028 | |||
1800 MHz |
2033 | |||
2100 MHz |
2028 | |||
SERBIA |
800 MHz |
2026 | ||
900 MHz |
2026 | |||
1800 MHz |
2026 | |||
2100 MHz |
2026 | |||
SLOVENIA |
700 MHz |
2036 | ||
800 MHz |
2029 | |||
900 MHz |
2031 | |||
1500 MHz |
2036 | |||
1800 MHz |
2031 | |||
2100 MHz |
2036 | |||
2600 MHz |
2029 | |||
3500 MHz |
2036 | |||
26000 MHz |
2029 |
COUNTRY |
PRINCIPAL REGULATORY AUTHORITIES |
CONCESSION AND LICENSES | ||
COSTA RICA |
Superintendency of Telecommunica- tions (Superintendencia de Teleco- municaciones) (Ministerio de Ciencia, Innovación, Tecnología y Telecomunicaciones) |
• Concessions of 70 MHz in the 1800/2100 MHz bands that expire in 2026 • Concessions 30 MHz in the 1800/2100 MHz bands that expire in 2033 • License to operate Pay TV services using DTH technology that will expire in 2026 | ||
EL SALVADOR |
Electricity and Telecommunications Superintendency (Superintendencia General de Electricidad y Telecomunicaciones) |
• Concession of 50 MHz in the 1900 MHz band of which 30 MHz that expire in 2038, 10 MHz that expire in 2041 and 10 MHz that expire in 2028 • Concession to provide public telephone service that expires in 2027 • Licenses to provide Pay TV Services through HFC and DTH technologies have an indefinite term • Concession of 40 MHz in 1700/2100 MHz bands (AWS) that will expire in 2040. | ||
GUATEMALA |
Guatemalan Telecommunications Agency (Superintendencia de Telecomunicaciones) |
• Rights of use of 12 MHz in the 900 MHz band, 120 MHz in the 1900 MHz band and 175 MHz in the 3.5 GHz band to provide all types of services that expire in 2033. • Rights of use of 50 MHz in the 700 MHz band to provide all types of services that expire in 2043. • License to provide Pay TV Services that expires in 2038. | ||
NICARAGUA |
Nicaraguan Telecommunications and Mailing Institute (Instituto Nicaragüense de Telecomunicaciones y Correos) |
• Concessions in the 700 MHz, 850 MHz, 1900 MHz and 1700/2100 MHz bands that all expire in 2042 • Concession of 50 MHz in the 3.5 GHz band that will expire in 2042 • Licenses to provide DTH technology that will expire in January 2028 and Pay TV services that has an indefinite term | ||
HONDURAS |
Honduran National Telecommunications Commission (Comisión Nacional de Telecomunicaciones) |
• Concessions to use 80 MHz in the 1900 MHz PCS band and 40 MHz in the LTE-4G 1700/2100 MHz band that all expire in 2033• Licenses to operate Pay TV services through (i) HFC technology that will expire in 2027 and (ii) DTH technology that will expire in 2030 | ||
DOMINICAN REPUBLIC |
Dominican Institute of Telecommunications (Instituto Dominicano de las Telecomunicaciones) |
• Concession to provide fixed and wireless services, internet and pay TV services through DTH and IPTV technologies that expire in 2041 • Licenses to use 25 MHz in the 800 MHz band, 30 MHz in the 1900 MHz band, 80 MHz in the 2.5/2.7 GHz band, 100 MHz in the 3.3-3.4 GHz band and 40 MHz in the 1.7/2.1 GHz (AWS) band that expire in 2041 | ||
PUERTO RICO |
Federal Communications Commission (FCC) and the Telecommunications Bureau of Puerto Rico |
• Concessions to use the 28 GHz band that expire in 2029. • Concessions to use the 700 MHz band that expire in 2031. • Concessions to use the 850 MHz band that expire in 2026, 2028, 2030 and 2031. • Concessions to use the AWS-1 (1700/2100 MHz) band that expire in 2026 and 2037.• Long-term transfer lease concessions to use the AWS-1 (1700/2100 MHz) band that expire in 2027.• Concessions to use the AWS-3 band (1700/2100 MHz) that expire in 2026 and 2028.• Concessions to use the 3.5 GHz band that expire in 2031. • Long-term transfer lease concessions to use 35.6 MHz of the 2.5 GHz band that expire in2025, 2026, 2030,2032 and 2033. • Franchise to operate Pay TV services using IPTV technology that will be terminated in 2024. |
|
|
DECEMBER 31, |
|
|||||||||
|
2021 |
2022 |
2023 |
|||||||||
NUMBER OF EMPLOYEES |
177,713 |
176,014 |
176,083 |
|||||||||
CATEGORY OF ACTIVITY: |
||||||||||||
Wireless |
68,606 |
68,981 |
68,325 |
|||||||||
Fixed |
86,788 |
84,829 |
83,940 |
|||||||||
Other businesses |
22,319 |
22,204 |
23,818 |
|||||||||
GEOGRAPHIC LOCATION: |
||||||||||||
Mexico |
87,233 |
85,820 |
86,996 |
|||||||||
South America |
53,227 |
52,492 |
51,886 |
|||||||||
Central America |
9,141 |
9,602 |
9,645 |
|||||||||
Caribbean |
10,256 |
10,193 |
10,048 |
|||||||||
Europe |
17,856 |
17,907 |
17,508 |
YEAR ENDED DECEMBER 31, |
||||||||
2022 |
2023 |
|||||||
(in millions of Mexican pesos) |
||||||||
Audit fees (1) |
Ps. 229 |
Ps. 202 |
||||||
Audit-related fees (2) |
9 |
13 |
||||||
Tax fees (3) |
14 |
11 |
||||||
Total fees |
Ps. 252 |
Ps. 226 |
||||||
(1) Audit fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms in connection with the audit of our annual financial statements and statutory and regulatory audits.(2) Audit-related fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms for the review of reports on our operations submitted to IFT and attestation services that are not required by statute or regulation.(3) Tax fees represent fees billed by Mancera and its Ernst & Young Global affiliated firms for tax compliance services and tax advice services. |
1.1 |
||
2.1 |
||
4.1 |
||
4.2 |
||
8.1 |
||
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
12.1 |
||
|
Certification pursuant to Section 906 of the Sarbanes- Oxley Act of 2002. | |
12.2 |
||
|
Consent of independent registered public accounting firm. | |
13.1 |
||
|
Inline XBRL Instance Document. | |
15.1 |
||
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
15.2 |
||
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
17.1 |
||
97.1 |
||
101.INS |
Inline XBRL Instance Document. | |
101.SCH |
Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
101.DEF |
Inline XBRL Taxonomy Extension Definition Document. | |
104 |
Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) |
• |
projections of our commercial, operating or financial performance, our financing, our capital structure or our other financial items; |
• |
statements of our plans, objectives or goals, including those relating to acquisitions, competition and rates; |
• |
statements concerning regulation or regulatory developments; |
• |
the impact of public health crises; |
• |
statements about our future economic performance or that of Mexico or other countries in which we operate; |
• |
competitive developments in the telecommunications industry; |
• |
other factors and trends affecting the telecommunications industry generally and our financial condition in particular; and |
• |
statements of assumptions underlying the foregoing statements. |
ITEM |
FORM 20-F CAPTION |
LOCATION IN THIS REPORT |
PAGE | |||
1 |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
Not applicable |
– | |||
2 |
OFFER STATISTICS AND EXPECTED TIMETABLE |
Not applicable |
– | |||
3 |
KEY INFORMATION |
|||||
3A Selected financial data |
Selected financial data |
6 | ||||
3B Capitalization and indebtedness |
Not applicable |
– | ||||
3C Reasons for the offer and use of proceeds |
Not applicable |
– | ||||
3D Risk factors |
Risk factors |
39 | ||||
4 |
INFORMATION ON THE COMPANY |
|||||
4A History and development of the Company |
Information on the Company |
9 | ||||
Note 10–Property, Plant and Equipment, net |
F-47 | |||||
Liquidity and capital resources |
34 | |||||
Additional Information |
93 | |||||
4B Business overview |
Information on the Company |
9 | ||||
Regulation |
77 | |||||
4C Organizational structure |
Exhibit 8.1 |
– | ||||
4D Property, plant and equipment |
Information on the Company |
9 | ||||
Note 10–Property Plant and Equipment, net |
9 | |||||
Liquidity and capital resources |
34 | |||||
Regulation |
77 | |||||
4A |
Unresolved staff comments |
None |
– | |||
5 |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
|||||
5A Operating results |
Services and Products |
15 | ||||
Overview |
24 | |||||
Results of operations |
26 | |||||
Regulation |
77 | |||||
Liquidity and capital resources |
34 | |||||
5B Liquidity and capital resources |
Note 14–Debt |
F-63 | ||||
5C Research and development, patents and licenses, etc. |
Not applicable |
– | ||||
5D Trend information |
Overview |
24 | ||||
Results of operations |
26 | |||||
5E Critical Accounting Estimates |
Not applicable |
– | ||||
6 |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
|||||
6A Directors and senior management |
Management |
53 | ||||
6B Compensation |
Management |
66 | ||||
6C Board practices |
Management |
65 | ||||
6D Employees |
Employees |
94 | ||||
6E Share ownership |
Major shareholders |
53 | ||||
Management |
63 | |||||
6F Disclosure of a registrant’s action to recover erroneously awarded compensation |
Not applicable |
– | ||||
7 |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
|||||
7A Major shareholders |
Major shareholders |
53 | ||||
7B Related party transactions |
Related party transactions |
54 | ||||
7C Interests of experts and counsel |
Not applicable |
– | ||||
8 |
FINANCIAL INFORMATION |
|||||
8A Consolidated statements and other financial information |
Consolidated Financial Statements |
103 | ||||
Dividends |
55 | |||||
Note 17–Commitments and Contingencies |
F-71 | |||||
8B Significant changes |
Not applicable |
– |
ITEM |
FORM 20-F CAPTION |
LOCATION IN THIS REPORT |
PAGE | |||
9 |
THE OFFER AND LISTING |
|||||
9A Offer and listing details |
Trading markets |
55 | ||||
9B Plan of distribution |
Not applicable |
– | ||||
9C Markets |
Trading markets |
55 | ||||
9D Selling shareholders |
Not applicable |
– | ||||
9E Dilution |
Not applicable |
– | ||||
9F Expenses of the issue |
Not applicable |
– | ||||
10 |
ADDITIONAL INFORMATION |
|||||
10A Share Capital |
Not applicable |
– | ||||
10B Memorandum and articles of association |
Bylaws |
55 | ||||
10C Material contracts |
Information on the Company |
9 | ||||
Results of operations |
26 | |||||
Related party transactions |
54 | |||||
Regulation |
77 | |||||
10D Exchange controls |
Additional information |
93 | ||||
10E Taxation |
Taxation of shares and ADSs |
57 | ||||
10F Dividends and paying agents |
Not applicable |
– | ||||
10G Statement by experts |
Not applicable |
– | ||||
10H Documents on display |
Additional information |
93 | ||||
10I Subsidiary information |
Not applicable |
– | ||||
10J Annual report to security holders |
Note applicable |
– | ||||
11 |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Risk management |
[
] | |||
Note 2 a)–Basis of Preparation of the Consolidated Financial Statements and Summary of Significant Accounting Policies and Practices |
F-11 | |||||
12 |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
|||||
12A Debt securities |
Not applicable |
– | ||||
12B Warrants and rights |
Not applicable |
– | ||||
12C Other securities |
Not applicable |
– | ||||
12D American Depositary Shares |
Bylaws |
55 | ||||
13 |
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
Not applicable |
– | |||
14 |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
Not applicable |
– | |||
15 |
CONTROLS AND PROCEDURES |
Controls and procedures |
69 | |||
16A |
AUDIT COMMITTEE FINANCIAL EXPERT |
Management |
66 | |||
16B |
CODE OF ETHICS |
Code of ethics |
75 | |||
16C |
PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Principal accountant fees and services |
95 | |||
16D |
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
Not applicable |
– | |||
16E |
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
Purchases of equity securities by the issuer and affiliated purchasers |
56 | |||
16F |
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
Not applicable |
– | |||
16G |
CORPORATE GOVERNANCE |
Corporate governance |
62 | |||
16H |
MINE SAFETY DISCLOSURE |
Not applicable |
– | |||
16I |
DISCLOSURE REGARDING FOREIGN JURISDICATIONS THAT PREVENT INSPECTIONS |
Not applicable |
– | |||
16J |
INSIDER TRADING POLICIES |
Not applicable |
– | |||
16K |
CYBERSECURITY |
Cybersecurity |
73 | |||
17 |
FINANCIAL STATEMENTS |
Not applicable |
– | |||
18 |
FINANCIAL STATEMENTS |
Consolidated Financial statements |
103 | |||
19 |
EXHIBITS |
Additional Information |
93 |
By: |
/s/ Carlos José García Moreno Elizondo | |
Name: |
Carlos José García Moreno Elizondo | |
Title: |
Chief Financial Officer |
By: |
/s/ Alejandro Cantú Jiménez | |
Name: |
Alejandro Cantú Jiménez | |
Title: |
General Counsel |
F-2 |
||||
Audited Consolidated Financial Statements: |
||||
F-5 |
||||
F-6 |
||||
F-7 |
||||
F-8 |
||||
F-9 |
Deferred tax assets, realizability of amounts related to net operating loss carryforwards and temporary differences related to employee benefits | ||
Description of the Matter |
As discussed in Note 13 to the consolidated financial statements, as of December 31, 2023, the balance of deferred tax assets was Ps. 137,883,622 thousand. The Company has recognized deferred tax assets arising from net operating loss carryforwards (NOLs) of Ps. 36,970,123 thousand, of which Ps. 25,293,302 thousand was generated by its subsidiary in Brazil. In addition, the Company has recognized deferred tax assets of Ps. 34,663,794 thousand related to employee benefits, which are primarily related to one of its Mexican subsidiaries. | |
Auditing management’s assessment of the realizability of the deferred tax assets arising from NOLs and the Mexican subsidiary’s employee benefits involved complex auditor judgement because management’s estimate of realizability was based on assessing the likelihood, timing and sufficiency of future taxable profits and available tax planning opportunities. These projections are sensitive because they can be affected by future operating results and future market and economic conditions. | ||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement related to the realizability of the deferred tax assets. We tested controls over management’s analyses of the future reversal of existing taxable temporary differences, their projections of future taxable income and related assumptions used in developing the projected financial information and their identification of available tax planning opportunities. Our audit also included the testing of controls that address the completeness and accuracy of the data used in the analysis. | |
To test the realizability of the deferred tax assets our audit procedures included, among others, the review of management’s estimates of future taxable income, the methodology used, the significant assumptions and the underlying data used by the Company in developing the projected financial information, such as customer attrition rates, growth rates, and other key assumptions by comparing them with historical, economic and industry trends and evaluating whether changes to the Company’s business model and other factors would significantly affect the projected financial information. We also involved our valuation specialists to evaluate the analysis and assumptions used, and to test the calculations used by the Company. | ||
In addition, with the assistance of our tax professionals, we assessed the application of relevant tax laws, including assessing the Company’s future tax planning opportunities, and tested the scheduling of the timing and amounts of expected reversals of taxable temporary differences. | ||
We also assessed the adequacy of the related financial statement disclosures. | ||
Discount rate used in determining defined benefit pension obligations in Mexico | ||
Description of the Matter |
As discussed in Note 2 q) and in Note 18 to the consolidated financial statements, as of December 31, 2023, the defined benefit pension obligation balance was Ps. 134,188,504 thousand. The Company assessed and updated its estimates and assumptions used to actuarially measure and value the defined benefit pension obligation as of December 31, 2023, using the assistance of independent actuarial specialists. |
Auditing the defined benefit pension obligation, for which the majority of the balance arises from one of the Company’s subsidiaries in Mexico, involved complex auditor judgement and required the involvement of our actuarial and valuation specialists because of the highly judgmental nature of the discount rate used in the Company’s measurement process. This assumption was complex because it required a valuation of the credit quality of the corporate bonds used to develop the discount rate and the correlation of those bonds’ cash inflows to the timing and amount of future expected benefit payments. | ||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement relating to the determination of the discount rate used in the defined benefit pension calculation. We tested controls over management’s determination and review of the discount rate provided to the independent actuaries. | |
To test the determination of the discount rate of the defined benefit pension obligation we involved our valuation and actuarial specialists to assist us in evaluating the methodology used to select the yield curve applied on the calculation, assessing the credit quality of the corporate bonds that comprise the yield curve and the timing and amount of cash flows at maturity with the expected amounts and duration of the related benefit payments. | ||
We also evaluated the objectivity and competence of management’s internal specialist responsible for overseeing the determination of the discount rate and the independent actuarial specialists through the consideration of their professional qualifications, experience and use of accepted methodology. | ||
We also assessed the adequacy of the related financial statement disclosures. |
Note | At December 31, |
|||||||||||||
2022 | 2023 |
2023 Millions of U.S. dollars |
||||||||||||
Assets |
||||||||||||||
Current assets: |
||||||||||||||
Cash and cash equivalents |
3 | Ps. | Ps. |
US$ |
||||||||||
Equity investments at fair value through other comprehensive income (OCI) and other short-term investments |
4 | |||||||||||||
Accounts receivable: |
||||||||||||||
Subscribers, distributors, recoverable taxes, contract assets and other, net |
5 | |||||||||||||
Related parties |
6 | |||||||||||||
Derivative financial instruments |
7 | |||||||||||||
Inventories, net |
8 | |||||||||||||
Other current assets, net |
9 | |||||||||||||
|
|
|
|
|
|
|||||||||
Total current assets |
Ps. | Ps. |
US$ |
|||||||||||
Non-current assets: |
||||||||||||||
Property, plant and equipment, net |
10 | Ps. | Ps. |
US$ |
||||||||||
Intangibles, net |
11 | |||||||||||||
Goodwill |
11 | |||||||||||||
Investments in associated companies |
12b | |||||||||||||
Deferred income taxes |
13 | |||||||||||||
Accounts receivable, subscriber, distributors and contract assets, net |
5 | |||||||||||||
Other assets, net |
9 | |||||||||||||
Debt instruments at fair value through OCI |
4 | |||||||||||||
Right-of-use |
15 | |||||||||||||
|
|
|
|
|
|
|||||||||
Total assets |
Ps. | Ps. |
US$ |
|||||||||||
|
|
|
|
|
|
|||||||||
Liabilities and equity |
||||||||||||||
Current liabilities: |
||||||||||||||
Short-term debt and current portion of long-term debt |
14 | Ps. | Ps. |
US$ |
||||||||||
Short-term liability related to right-of-use |
15 | |||||||||||||
Accounts payable |
16a | |||||||||||||
Accrued liabilities |
16b | |||||||||||||
Income tax |
13 | |||||||||||||
Other taxes payable |
||||||||||||||
Derivative financial instruments |
7 | |||||||||||||
Related parties |
6 | |||||||||||||
Deferred revenues |
||||||||||||||
|
|
|
|
|
|
|||||||||
Total current liabilities |
Ps. | Ps. |
US$ |
|||||||||||
Non-current liabilities: |
||||||||||||||
Long-term debt |
14 | Ps. | Ps. |
US$ |
||||||||||
Long-term liability related to right-of-use |
15 | |||||||||||||
Deferred income taxes |
13 | |||||||||||||
Deferred revenues |
||||||||||||||
Asset retirement obligations |
16c | |||||||||||||
Employee benefits |
18 | |||||||||||||
|
|
|
|
|
|
|||||||||
Total non-current liabilities |
Ps. | Ps. |
US$ |
|||||||||||
|
|
|
|
|
|
|||||||||
Total liabilities |
Ps. | Ps. |
US$ |
|||||||||||
|
|
|
|
|
|
|||||||||
Equity: |
||||||||||||||
Capital stock |
20 | Ps. | Ps. |
US$ |
||||||||||
Retained earnings: |
||||||||||||||
Prior years |
||||||||||||||
Profit for the year |
||||||||||||||
|
|
|
|
|
|
|||||||||
Total retained earnings |
||||||||||||||
Other comprehensive loss items |
( |
) | ( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||||
Equity attributable to equity holders of the parent |
||||||||||||||
Non-controlling interests |
||||||||||||||
|
|
|
|
|
|
|||||||||
Total equity |
||||||||||||||
|
|
|
|
|
|
|||||||||
Total liabilities and equity |
Ps. | Ps. |
US$ |
|||||||||||
|
|
|
|
|
|
Note | For the years ended December 31 |
|||||||||||||||||
2021 (1) |
2022 (1) |
2023 |
2023 Millions of U.S. dollars, except for earnings per share |
|||||||||||||||
Operating revenues: |
||||||||||||||||||
Service revenues |
Ps. | Ps. | Ps. |
US$ |
||||||||||||||
Sales of equipment |
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Ps. | Ps. | Ps. |
US$ |
|||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Operating costs and expenses: |
||||||||||||||||||
Cost of sales and services |
||||||||||||||||||
Commercial, administrative and general expenses |
||||||||||||||||||
Other expenses |
||||||||||||||||||
Depreciation and amortization |
9,10,11 and 15 |
|||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Ps. | Ps. | Ps. |
US$ |
|||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Operating income |
Ps. | Ps. | Ps. |
US$ |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Interest income |
||||||||||||||||||
Interest expense |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Foreign currency exchange (loss) gain, net |
( |
) | ||||||||||||||||
Valuation of derivatives, interest cost from labor obligations and other financial items, net |
22 | ( |
) | ( |
) | ( |
) |
( |
) | |||||||||
Equity interest in net result of associated companies |
( |
) | ( |
) |
( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Profit before income tax |
||||||||||||||||||
Income tax |
13 | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net profit for the year from continuing operations |
Ps. | Ps. | Ps. |
US$ |
||||||||||||||
Profit (loss) after tax for the year from discontinued operations |
2, Ac | ( |
) | — |
— |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net profit for the year |
Ps. | Ps. | Ps. |
US$ |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net profit for the year attributable to: |
||||||||||||||||||
Equity holders of the parent from continuing operations |
20 | Ps. | Ps. | Ps. |
US$ |
|||||||||||||
Equity holders of the parent from discontinued operations |
2, Ac | ( |
) | — |
— |
|||||||||||||
Non-controlling interests |
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Ps. | Ps. | Ps. |
US$ |
|||||||||||||||
Basic and diluted earnings per share attributable to equity holders of the parent from continuing operations |
20 | Ps. | Ps. | Ps. |
US$ |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Basic and diluted earnings per share attributable to equity holders of the parent from discontinued operations |
20 | Ps. | Ps. | ( |
) | Ps. |
— |
US$ |
— |
|||||||||
|
|
|
|
|
|
|
|
|||||||||||
Other comprehensive income (loss): |
||||||||||||||||||
Other comprehensive income (loss) that may be reclassified to profit or loss in subsequent years (net of tax): |
||||||||||||||||||
Effect of translation of foreign entities from continuing operations |
Ps. | ( |
) | Ps. | ( |
) | Ps. |
( |
) |
US$ |
( |
) | ||||||
Effect of translation of foreign entities from discontinued operations |
( |
) | — |
— |
||||||||||||||
Items that will not be reclassified to profit (or loss) in subsequent years (net of tax): |
||||||||||||||||||
Re-measurement of defined benefit plan, net of deferred taxes |
( |
) | ( |
) |
( |
) | ||||||||||||
Unrealized gain (loss) on equity investments at fair value, net of deferred taxes |
4 | ( |
) | ( |
) |
( |
) | |||||||||||
Revaluation surplus, net of deferred taxes |
— | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total other comprehensive income (loss) items for the year, net of deferred taxes |
21 | ( |
) | ( |
) |
( |
) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total comprehensive income for the year |
Ps. | Ps. | Ps. |
US$ |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive income for the year attributable to: |
||||||||||||||||||
Equity holders of the parent from continuing operations |
Ps. | Ps. | Ps. |
US$ |
||||||||||||||
Non-controlling interests |
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Ps. | Ps. | Ps. |
US$ |
|||||||||||||||
Comprehensive income for the period: |
||||||||||||||||||
Net comprehensive income from continuing operations |
Ps. | Ps. | Ps. |
US$ |
||||||||||||||
Net comprehensive income (loss) from discontinued operations |
2, Ac | ( |
) | — |
— |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Ps. | Ps. | Ps. |
US$ |
|||||||||||||||
|
|
|
|
|
|
|
|
(1) | Discontinued operations. |
Capital stock |
Legal reserve (Note 20) |
Retained earnings |
Unrealized loss on equity investment at fair value |
Re-measurement of defined benefit plans |
Cumulative translation adjustment |
Revaluation surplus |
Total equity attributable to equity holders of the parent |
Non- controlling interests |
Total equity |
|||||||||||||||||||||||||||||||
As of January 1, 2021 |
Ps. | Ps. | Ps. | Ps. | ( |
) | Ps. | ( |
) | Ps. | ( |
) | Ps. | Ps. | Ps. | Ps. | ||||||||||||||||||||||||
Net profit for the year |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Unrealized gain on equity investments at fair value, net of deferred taxes (Note 21) |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Remeasurement of defined benefit plan, net of deferred taxes (Note 21) |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Effect of translation of foreign entities (Note 21) |
— | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Discontinued operations (Note 21) |
— | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
Transfer of assets’ revaluation surplus (Note 21) |
— | — | — | — | — | ( |
) | — | — | — | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Comprehensive income for the year |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
Dividends declared |
— | — | ( |
) | — | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Repurchase of shares |
( |
) | — | ( |
) | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||
Other acquisitions of non-controlling interests |
— | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2021 |
Ps. | Ps. | Ps. | Ps. | ( |
) | Ps. | ( |
) | Ps. | ( |
) | Ps. | Ps. | Ps. | Ps. | ||||||||||||||||||||||||
Net profit for the year |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Unrealized loss on equity and debt investments at fair value, net of deferred taxes (Note 21) |
— | — | — | ( |
) | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
Remeasurement of defined benefit plan, net of deferred taxes (Note 21) |
— | — | — | — | ( |
) | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Effect of translation of foreign entities (Note 21) |
— | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Discontinued operations (Note 21) |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Transfer of assets’ revaluation surplus (Note 21) |
— | — | — | — | — | ( |
) | — | — | — | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Comprehensive income for the year |
— | — | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Dividends declared |
— | — | ( |
) | — | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Repurchase of shares |
— | ( |
) | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||
Recycling of assets revaluation surplus by spin-off, net of deferred taxes |
— | — | — | — | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Spin-off effects |
( |
) | — | ( |
) | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||
Other acquisitions of non-controlling interests |
— | — | ( |
) | — | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2022 |
Ps. |
Ps. |
Ps. |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
Ps. |
Ps. |
Ps. |
||||||||||||||||||||||||
Net profit for the year |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||
Unrealized loss on equity and debt investments at fair value, net of deferred taxes (Note 21) |
— |
— |
— |
( |
) |
— |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||
Remeasurement of defined benefit plan, net of deferred taxes (Note 21) |
— |
— |
— |
— |
( |
) |
— |
— |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||
Effect of translation of foreign entities (Note 21) |
— |
— |
— |
— |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | |||||||||||||||||||||||||
Revaluation surplus, net deferred taxes (Note 21) |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||
Transfer of assets’ revaluation surplus (Note 21) |
— |
— |
— |
— |
— |
( |
) |
— |
— |
— |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Comprehensive income for the year |
— |
— |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||
Dividends declared |
— |
— |
( |
) |
— |
— |
— |
— |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||
Repurchase of shares |
( |
) |
— |
( |
) |
— |
— |
— |
— |
( |
) |
— |
( |
) | ||||||||||||||||||||||||||
Recycling of assets revaluation surplus related to Peru and the Dominican Republic’s sale of towers, net of deferred taxes |
— |
— |
— |
— |
— |
( |
) |
— |
— |
— |
||||||||||||||||||||||||||||||
Other acquisitions of non-controlling interests |
— |
— |
— |
— |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2023 |
Ps. |
Ps. |
Ps. |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
( |
) |
$ |
Ps. |
Ps. |
Ps. |
Ps. |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31 |
||||||||||||||||||
Note | 2021 (1) |
2022 (1) |
2023 |
2023 Millions of U.S. dollars |
||||||||||||||
Operating activities |
||||||||||||||||||
Profit before income tax from continuing operations |
Ps. | Ps. | Ps. |
US$ |
||||||||||||||
Profit (loss) before income tax from discontinued operations |
2, Ac | ( |
) | — |
— |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Profit before income tax |
||||||||||||||||||
Items not requiring the use of cash: |
||||||||||||||||||
Depreciation property, plant and equipment and right-of-use |
10 and 15 | |||||||||||||||||
Amortization of intangible and other assets |
9 and 11 | |||||||||||||||||
Equity interest in net result of associated companies |
( |
) | ||||||||||||||||
(Gain) loss on sale of property, plant and equipment |
( |
) | ( |
) |
( |
) | ||||||||||||
Net period cost of labor obligations |
18 | |||||||||||||||||
Foreign currency exchange loss (income), net |
( |
) | ( |
) |
( |
) | ||||||||||||
Interest income |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Interest expense |
||||||||||||||||||
Employee profit sharing |
||||||||||||||||||
Loss in valuation of derivative financial instruments, capitalized interest expense and other, net |
||||||||||||||||||
Gain on net monetary positions |
22 | ( |
) | ( |
) | ( |
) |
( |
) | |||||||||
Gain on sale of subsidiary |
2, Ac | ( |
) | ( |
) | — |
— |
|||||||||||
Loss on deconsolidation of subsidiary |
12b | — | — |
— |
||||||||||||||
Impairment to notes receivable from joint venture |
22 | — | — | |||||||||||||||
Impairment of joint venture |
22 | — | — | |||||||||||||||
Working capital changes: |
||||||||||||||||||
Subscribers, distributors, recoverable taxes, contract assets and other, net |
( |
) | ( |
) |
( |
) | ||||||||||||
Prepaid expenses |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Related parties |
||||||||||||||||||
Inventories |
( |
) | ||||||||||||||||
Other assets |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Employee benefits |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Accounts payable and accrued liabilities |
( |
) | ||||||||||||||||
Employee profit sharing paid |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Financial instruments and other |
( |
) | ( |
) | ||||||||||||||
Deferred revenues |
( |
) | ||||||||||||||||
Interest received |
||||||||||||||||||
Income taxes paid |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Cash flows from discontinued operating |
( |
) | — |
— |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net cash flows provided by continuing operating activities |
Ps. | Ps. | Ps. |
US$ |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Investing activities |
||||||||||||||||||
Purchase of property, plant and equipment |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Acquisition of intangibles |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Dividends received |
22 | |||||||||||||||||
Proceeds from sale of property, plant and equipment |
||||||||||||||||||
Acquisition of business, net of cash acquired |
12 | — | ( |
) | — |
— |
||||||||||||
Contractual earn-out from business combination |
2, Ac | — | ||||||||||||||||
Financial instruments |
— | — | ( |
) |
( |
) | ||||||||||||
Partial sale of shares of associated company |
— |
— |
||||||||||||||||
Investments in associate companies |
— | ( |
) | ( |
) |
( |
) | |||||||||||
Proceeds from the sale of businesses |
— |
— |
||||||||||||||||
Acquisition of short-term investments |
( |
) | — | ( |
) |
( |
) | |||||||||||
Sale of short-term investments |
— | |||||||||||||||||
Acquisition of notes from joint venture |
— | — | ( |
) |
( |
) | ||||||||||||
Cash flows from discontinued investing |
( |
) | ( |
) | — |
— |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net cash flows used in investing activities |
Ps. | ( |
) | Ps. | ( |
) | Ps. |
( |
) |
US$ |
( |
) | ||||||
|
|
|
|
|
|
|
|
|||||||||||
Financing activities |
||||||||||||||||||
Loans obtained |
||||||||||||||||||
Repayment of loans |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Payment of liability related to right-of-use |
15 | ( |
) | ( |
) | ( |
) |
( |
) | |||||||||
Interest paid |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Repurchase of shares |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Dividends paid |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Acquisition of non-controlling interests |
12 | ( |
) | ( |
) | ( |
) |
( |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net cash flows used in financing activities |
Ps. | ( |
) | Ps. | ( |
) | Ps. |
( |
) |
US$ |
( |
) | ||||||
|
|
|
|
|
|
|
|
|||||||||||
Net increase (decrease) in cash and cash equivalents |
Ps. | Ps. | ( |
) | Ps. |
( |
) |
US$ |
( |
) | ||||||||
Adjustment to cash flows due to exchange rate fluctuations, net |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Cash and cash equivalents at beginning of the year |
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents at end of the year |
Ps. | Ps. | Ps. |
US$ |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Non-cash transactions related to: |
||||||||||||||||||
Acquisitions of property, plant and equipment in accounts payable at year end |
Ps. | Ps. | Ps. |
US$ |
||||||||||||||
Revaluation surplus |
— | — | ||||||||||||||||
Spin-off |
( |
) | — |
— |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Non-cash transactions |
Ps. | Ps. | Ps. |
US$ |
||||||||||||||
|
|
|
|
|
|
|
|
(1) | Discontinued operations. |
• | Voice services provided by the Company, both wireless and fixed, mainly include the following: airtime, local, domestic and international long-distance services, and network interconnection services. |
• | Data services include value added, corporate networks, data and Internet services. |
• | Pay TV represents basic services, as well as pay per view and additional programming and advertising services. |
• | AMX provides other related services to advertising in telephone directories, publishing and call center services. |
• | The Company also provides video, audio and other media content that is delivered through the internet directly from the content provider to the end user. |
• | A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules; and |
• | Disclosure requirements for affected entities to help users of the financial statements better understand an entity’s exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date. |
Country |
Equity interest at December 31 |
|||||||||||
2022 | 2023 |
|||||||||||
Subsidiaries: |
||||||||||||
América Móvil B.V. a) |
Netherlands | % | % | |||||||||
Compañía Dominicana de Teléfonos, S.A. (“Codetel”) b) |
Dominican Republic | % | % | |||||||||
Sercotel, S.A. de C.V. a) |
Mexico | % | % | |||||||||
Radiomóvil Dipsa, S.A. de C.V. and subsidiaries (“Telcel”) b) |
Mexico | % | % | |||||||||
Puerto Rico Telephone Company, Inc. b) |
Puerto Rico | % | % | |||||||||
Servicios de Comunicaciones de Honduras, S.A. de C.V. (“Sercom Honduras”) b) |
Honduras | % | % | |||||||||
Claro S.A. b) |
Brazil | % | % | |||||||||
NII Brazil Holding S.A.R.L c) |
Luxembourg | % | ||||||||||
AMX International Mobile S.A. de C.V. c) |
Mexico | % | ||||||||||
Claro NXT Telecomunicações, S.A. b) |
Brazil | % | % | |||||||||
Telecomunicaciones de Guatemala, S.A. (“Telgua”) b) |
Guatemala | % | % | |||||||||
Claro Guatemala, S.A. b) |
Guatemala | % | % | |||||||||
Empresa Nicaragüense de Telecomunicaciones, S.A. (“Enitel”) b) |
Nicaragua | % | % | |||||||||
Compañía de Telecomunicaciones de El Salvador, S.A. de C.V. (“CTE”) b) |
El Salvador | % | % | |||||||||
Comunicación Celular, S.A. (“Comcel”) b) |
Colombia | % | % | |||||||||
Consorcio Ecuatoriano de Telecomunicaciones, S.A. (“Conecel”) b) |
Ecuador | % | % | |||||||||
AMX Argentina, S.A. b) |
Argentina | % | % | |||||||||
AMX Paraguay, S.A. b) |
Paraguay | % | % | |||||||||
AM Wireless Uruguay, S.A. b) |
Uruguay | % | % | |||||||||
América Móvil Perú, S.A.C b) |
Peru | % | % | |||||||||
Teléfonos de México, S.A.B. de C.V. b) |
Mexico | % | % | |||||||||
Telekom Austria AG b) |
Austria | % | % | |||||||||
EuroTeleSites AG and subsidiaries d) |
Austria | % | ||||||||||
Joint venture: |
||||||||||||
Claro Chile, SpA |
Chile | % | % |
a) | Holding companies. |
b) | Operating companies of mobile and fixed services. |
c) | On January 2023, this entity merged with AMX International Mobile, S.A. de C.V. |
d) | Company spun-off from Telekom Austria AG on September 22, 2023. |
• | all monetary assets and liabilities were translated at the closing exchange rate of the period; |
• | all non-monetary assets and liabilities at the closing exchange rate of the period; |
• | equity accounts are translated at the exchange rate at the time the capital contributions were made and the profits were generated; |
• | revenues, costs and expenses are translated at the average exchange rate of the period, except for the operations of the subsidiaries in Argentina, whose economy is considered hyperinflationary since 2018; |
• | the consolidated statements of cash flows presented using the indirect method were translated using the weighted-average exchange rate for the applicable period (except for Argentina), and the resulting difference is shown in the consolidated statements of cash flows under the heading “Adjustment to cash flows due to exchange rate fluctuations, net”. |
• | Adjustment of the historical cost of non-monetary assets and liabilities and equity items from their date of acquisition, or the date of inclusion in the consolidated statements of financial position, to the end of the year, in order to reflect changes in the currency’s purchasing power caused by inflation. |
• | The gain on the net monetary position caused by the impact of inflation in the year is included in the consolidated statements of comprehensive income as part of the caption “ Valuation of derivatives, interest cost from labor obligations and other financial items, net” |
• | All items in the financial statements of the Argentine company are translated at the closing exchange rate, which at December 31, 2022 and 2023 were |
(i) | Identify the acquirer; |
(ii) | Determine the acquisition date; |
(iii) | Value the acquired identifiable assets and assumed liabilities; and |
(iv) | Recognize the goodwill or a bargain purchase gain. |
Network infrastructure |
||||
Buildings and leasehold improvement |
||||
Other assets |
• | Current subscribers and expected growth; |
• | Type of subscribers (prepaid, postpaid, fixed line, multiple services); |
• | Market environment and penetration expectations; |
• | New products and services; |
• | Economic environment of each country; |
• | Expenses for maintaining the current assets; |
• | Investments in technology for expanding the current assets; and |
• | Market consolidation and synergies. |
• | Margin on EBITDA is determined by dividing EBITDA (operating income plus depreciation and amortization) by total revenues. |
• | Margin on CAPEX is determined by dividing capital expenditures (“CAPEX”) by total revenues. |
• | Post-tax weighted average cost of capital (“WACC”) is used to discount the projected cash flows. |
Average margin on EBIDTA |
Average margin on CAPEX |
Average pre-tax discount rate (WACC) |
||||||||||
2022: |
||||||||||||
Europe (7 countries) |
||||||||||||
Brazil (fixed line, wireless and TV) |
||||||||||||
Puerto Rico |
||||||||||||
Dominican Republic |
||||||||||||
Mexico (fixed line and wireless) |
||||||||||||
Ecuador |
||||||||||||
Peru |
||||||||||||
El Salvador |
||||||||||||
Colombia |
||||||||||||
Other countries |
||||||||||||
2023: |
||||||||||||
Europe (7 countries) |
||||||||||||
Brazil (fixed line, wireless and TV) |
||||||||||||
Puerto Rico |
||||||||||||
Dominican Republic |
||||||||||||
Mexico (fixed line and wireless) |
||||||||||||
Ecuador |
||||||||||||
Peru |
||||||||||||
El Salvador |
||||||||||||
Colombia |
||||||||||||
Other countries |
i) | Right-of-use |
Assets |
Useful life | |
Towers and sites |
||
Property |
||
Other equipment |
ii) | Lease liabilities. |
iii) | Short-term leases and leases of low value assets. |
• | Financial assets at amortized cost (debt instruments); |
• | Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments); |
• | Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments); and |
• | Financial assets at fair value through profit or loss. |
• | The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and |
• | The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. |
• | The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; and |
• | The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. |
• | The rights to receive cash flows from the asset have expired, or |
• | The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. |
Average exchange rate |
Closing exchange rate at December 31, |
|||||||||||||||||||||
Country or Zone |
Currency |
2021 | 2022 | 2023 |
2022 | 2023 |
||||||||||||||||
Argentina (1) |
Argentine Peso (AR$) | |||||||||||||||||||||
Brazil | Real (R$) | |||||||||||||||||||||
Colombia | Colombian Peso (COP$) | |||||||||||||||||||||
Guatemala | Quetzal | |||||||||||||||||||||
U.S.A. (2) |
US Dollar | |||||||||||||||||||||
Uruguay | Uruguay Peso | |||||||||||||||||||||
Nicaragua | Cordoba | |||||||||||||||||||||
Honduras | Lempira | |||||||||||||||||||||
Chile | Chilean Peso (CLP$) | |||||||||||||||||||||
Paraguay | Guaraní | |||||||||||||||||||||
Peru | Sol (PEN$) | |||||||||||||||||||||
Dominican Republic | Dominican Peso | |||||||||||||||||||||
Costa Rica | Colon | |||||||||||||||||||||
European Union | Euro | |||||||||||||||||||||
Bulgaria | Lev | |||||||||||||||||||||
Belarus | New Belarusian Ruble | |||||||||||||||||||||
Croatia | Croatian Kuna | |||||||||||||||||||||
Macedonia | Macedonian Denar | |||||||||||||||||||||
Serbia | Serbian Denar |
(1) | Year-end rates are used for the translation of revenues and expenses if IAS 29 “Financial Reporting in Hyperinflationary Economies” |
(2) | Includes Ecuador, El Salvador and Puerto Rico. |
(i) | The date of the plan amendment or curtailment; and |
(ii) | The date that the Company recognizes restructuring-related costs. |
• | When the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the sales tax is recognized as part of the cost of acquisition of the asset or as part of the expense item, as applicable. |
• | Receivables and payables that are stated with the amount of sales tax included. |
(i) | Expected to be realized or intended to be sold or consumed in the normal operating cycle. |
(ii) | Held primarily for the purpose of trading. |
(iii) | Expected to be realized within twelve months after the reporting period. |
(iv) | Cash and cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. |
• | It is expected to be settled in the normal operating cycle. |
• | It is held primarily for the purpose of trading. |
• | It is due to be settled within twelve months after the reporting period. |
• | There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. |
For the years ended as of December 31,2021 |
For the period ended as of October 6, 2022 |
|||||||
Operating revenue: |
||||||||
Service revenues |
Ps. | Ps. | ||||||
Sales of equipment |
||||||||
|
|
|
|
|||||
Total costs and expenses |
||||||||
|
|
|
|
|||||
Operating loss |
( |
) | ( |
) | ||||
Financial costs |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Loss before income taxes of discontinued operations |
( |
) | ( |
) | ||||
Income taxes: |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net profit (loss) of the period from discontinued operations |
Ps. | Ps. | ( |
) | ||||
|
|
|
|
b) | Claro Panama Disposal |
As of July 1, |
||||
2022 |
||||
Current assets: |
||||
Cash |
Ps. |
|||
Account receivable to subscribers, distributors and others Net |
||||
Inventories, net |
||||
Other assets, net |
||||
|
|
|||
Total current assets |
||||
Non-current assets: |
||||
Property, plant and equipment |
||||
Intangibles, net |
||||
Account receivables to subscribers, distributors and others, Net |
||||
Other assets, net |
||||
Right-of-use |
||||
|
|
|||
Total assets |
Ps. |
|||
|
|
|||
Short term liability related to right-of-use |
Ps. |
|||
Accounts payable |
||||
Payable taxes |
||||
Related parties |
||||
Deferred income |
||||
Long term liability related to right-of-use |
Ps. |
|||
Deferred income |
||||
|
|
|||
Total liabilities |
||||
|
|
|||
Net assets directly related to the Group’s disposal |
Ps. |
|||
|
|
For the year ended December 31, | July 1 st . |
|||||||
2021 | 2022 | |||||||
Operating revenue: |
||||||||
Revenue services |
Ps. |
Ps. |
||||||
Sales of equipment |
||||||||
|
|
|
|
|||||
Total costs and expenses |
||||||||
|
|
|
|
|||||
Operating (loss) profit |
( |
) | ||||||
Financial costs |
( |
) | ( |
) | ||||
Gain on sale of discontinued operations |
||||||||
(Loss) profit before income taxes from discontinued operations |
( |
) | ||||||
Income taxes: |
||||||||
|
|
|
|
|||||
Net (loss) profit of the period of discontinued operations |
Ps. ( |
) | Ps. |
|||||
|
|
|
|
c) | TracFone Disposal |
For the years ended December 31 |
||||
2021 | ||||
Operating revenues: |
||||
Service revenues |
Ps. |
|||
Sales of equipment |
||||
|
|
|||
Total costs and expenses |
||||
|
|
|||
Operating income |
||||
|
|
|||
Financial cost |
( |
) | ||
Gain on disposal of discontinued operations |
||||
|
|
|||
Profit before income tax discontinued operations |
||||
|
|
|||
Tax expense: |
||||
Related to pre-tax profit from the ordinary activities for the period |
||||
Related to gain on disposal from discontinued operations |
||||
|
|
|||
Net profit for the year from discontinued operations |
Ps. |
|||
|
|
November 23, | ||||
2021 | ||||
Current assets |
||||
Cash |
Ps. | |||
Subscribers, distributors, recoverable taxes, contract assets and other net |
||||
Inventories, net |
||||
Other current assets, net |
||||
|
|
|||
Total current assets |
||||
Non-current assets: |
||||
Property, plant and equipment |
||||
Intangibles, net |
||||
Goodwill |
||||
Deferred income taxes |
||||
Other assets, net |
||||
Rights of use |
||||
|
|
|||
Total assets |
Ps. | |||
|
|
|||
Short term liability related to right of use of assets |
Ps. | |||
Accounts payable |
||||
Income tax |
||||
Deferred revenue |
||||
|
|
|||
Total liabilities |
||||
|
|
|||
Net liability directly associated with disposal group |
Ps. | ( |
) | |
|
|
At December 31, |
||||||||
2022 | 2023 |
|||||||
Subscribers and distributors |
Ps. |
Ps. |
||||||
Telecommunications carriers for network interconnection and other services |
||||||||
Recoverable taxes |
||||||||
Sundry debtors |
||||||||
Contract assets |
||||||||
Allowance of expected credit losses |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total net |
Ps. |
Ps. |
||||||
Non-current subscribers, distributors and contractual assets |
||||||||
|
|
|
|
|||||
Total current subscribers, distributors and contractual assets |
Ps. |
Ps. |
||||||
|
|
|
|
For the years ended December 31, |
||||||||||||
(1) 2021 |
2022 | 2023 |
||||||||||
Balance at beginning of year |
Ps. | ( |
) | Ps. | ( |
) | Ps. |
( |
) | |||
Increases recorded in expenses (i) |
( |
) | ( |
) | ( |
) | ||||||
Write-offs |
||||||||||||
Incorporation (spin-off) (ii) |
( |
) | ||||||||||
Translation effect |
||||||||||||
|
|
|
|
|
|
|||||||
Balance at year end |
Ps. | ( |
) | Ps. | ( |
) | Ps. |
( |
) | |||
|
|
|
|
|
|
(1) | Discontinued operations |
i) | Includes discontinued operation of Panama and Chile in joint venture. See note 2Ac. |
ii) | This figure is related to the spin-off of Telekom Austria AG. |
Past due |
||||||||||||||||||||||||
Total |
Unbilled services provided |
a-30 days |
31-60 days |
61-90 days |
Greater than 90 days |
|||||||||||||||||||
December 31, 2022 |
Ps. |
Ps. |
Ps. |
Ps. |
Ps. |
Ps. |
||||||||||||||||||
December 31, 2023 |
Ps. |
Ps. |
Ps. |
Ps. |
Ps. |
Ps. |
Total |
1-90 days |
Greater than 90 days | ||||
December 31, 2022 |
Ps. |
Ps. |
Ps. | |||
December 31, 2023 |
Ps. |
Ps. |
Ps. |
2022 | 2023 |
|||||||
Contract Assets: |
||||||||
Balance at the beginning of the year |
Ps. | Ps. |
||||||
Additions |
||||||||
Business combination |
||||||||
Disposals |
( |
) | ( |
) | ||||
Amortization |
( |
) | ( |
) | ||||
Translation effect |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Balance at the end of the year |
Ps. | Ps. |
||||||
Non-current contract assets |
Ps. | Ps. |
||||||
|
|
|
|
|||||
Current portion contracts assets |
Ps. | Ps. |
||||||
|
|
|
|
2022 | 2023 |
|||||||
Accounts receivable: |
||||||||
Sears Roebuck de México, S.A. de C.V. and Subsidiaries |
Ps. | Ps. |
||||||
Sitios Latinoamérica, S.A.B. de C.V. |
||||||||
Sanborns Hermanos, S.A. |
||||||||
Patrimonial Inbursa, S.A. |
||||||||
Grupo Condumex, S.A. de C.V. and Subsidiaries |
||||||||
Telesites, S.A.B. de C.V. and Subsidiaries |
||||||||
Claroshop.com, S.A.P.I de C.V. |
||||||||
Other |
||||||||
|
|
|
|
|||||
Total |
Ps. | Ps. |
||||||
|
|
|
|
|||||
Accounts payable: |
||||||||
Carso Infraestructura y Construcción, S.A. de C.V. and Subsidiaries |
Ps. | Ps. |
||||||
Grupo Condumex, S.A. de C.V. and Subsidiaries |
||||||||
Sitios Latinoamérica, S.A.B. de C.V. |
||||||||
Fianzas Guardiana Inbursa, S.A. de C.V. |
||||||||
Claroshop.com, S.A.P.I de C.V. |
||||||||
Grupo Financiero Inbursa, S.A.B. de C.V. |
||||||||
Seguros Inbursa, S.A. de C.V. |
||||||||
Industrial Afiliada, S.A. de C.V.. |
||||||||
Banco Inbursa, S.A. |
||||||||
Promotora Inbursa, S.A. de C.V. |
||||||||
Cicsa Perú, S.A.C. |
||||||||
Other |
||||||||
|
|
|
|
|||||
Total |
Ps. | Ps. |
||||||
|
|
|
|
2021 | 2022 | 2023 |
||||||||||
Capex and expenses: |
||||||||||||
Construction services, purchases of materials, inventories and property, plant and equipment (i) |
Ps. | Ps. | Ps. |
|||||||||
Insurance premiums, fees paid for administrative and operating services, brokerage services and others (ii) |
||||||||||||
Associated costs for towers sale (iii) |
||||||||||||
Rent of towers |
||||||||||||
Other services |
||||||||||||
|
|
|
|
|
|
|||||||
Ps. | Ps. | Ps. |
||||||||||
|
|
|
|
|
|
|||||||
Revenues: |
||||||||||||
Service revenues (iv) |
Ps. | Ps. | Ps. |
|||||||||
Sales of towers (v) |
||||||||||||
Sales of equipment |
||||||||||||
|
|
|
|
|
|
|||||||
Ps. | Ps. | Ps. |
||||||||||
|
|
|
|
|
|
i) | In 2023, this amount includes Ps. |
ii) | In 2023, this amount includes Ps. |
iii) | In 2023, this amount includes Ps. |
iv) | In 2023, this amount includes Ps. |
v) | In 2023, this amount includes Ps. |
At December 31, |
||||||||||||||||
2022 |
2023 |
|||||||||||||||
Instrument |
Notional amount in millions |
Fair Value | Notional amount in millions |
Fair Value |
||||||||||||
Assets: |
||||||||||||||||
Swaps US Dollar – Mexican Peso |
US$ | Ps. | US$ |
Ps. |
||||||||||||
Swaps US Dollar – Euro |
US$ | US$ |
||||||||||||||
Swaps Yen – US Dollar |
¥ | ¥ |
||||||||||||||
Swaps Euro – US Dollar |
— | — | € |
|||||||||||||
Forwards US Dollar – Mexican Peso |
US$ | US$ |
||||||||||||||
Forwards Brazilian Real – US Dollar |
R$ | R$ |
||||||||||||||
Forwards Euro – US Dollar |
€ | € |
||||||||||||||
|
|
|
|
|||||||||||||
Total Assets |
Ps. | Ps. |
||||||||||||||
|
|
|
|
|||||||||||||
At December 31, |
||||||||||||||||
2022 |
2023 |
|||||||||||||||
Instrument |
Notional amount in millions |
Fair Value | Notional amount in millions |
Fair Value |
||||||||||||
Liabilities: |
||||||||||||||||
Swaps US Dollar – Mexican Peso |
US$ | Ps. | ( |
) | US$ |
Ps. |
( |
) | ||||||||
Swaps US Dollar – Euro |
US$ | ( |
) | US$ |
( |
) | ||||||||||
Swaps Yen – US Dollar |
¥ | ( |
) | ¥ |
( |
) | ||||||||||
Swaps Pound Sterling – Euro |
£ | ( |
) | £ |
( |
) | ||||||||||
Swap Pound Sterling – US Dollar |
£ | ( |
) | £ |
( |
) | ||||||||||
Swaps Euro – US Dollar |
€ | ( |
) | € |
( |
) | ||||||||||
Swaps Euro – Mexican Peso |
€ | ( |
) | — |
— |
|||||||||||
Forwards US Dollar – Mexican Peso |
US$ | ( |
) | US$ |
( |
) | ||||||||||
Forwards Brazilian Real – US Dollar |
R$ | ( |
) | R$ |
( |
) | ||||||||||
Forwards Euro – US Dollar |
€ | ( |
) | € |
( |
) | ||||||||||
Forwards Euro – Mexican Peso |
— | — | € |
( |
) | |||||||||||
Put option |
€ | ( |
) | — |
— |
|||||||||||
Call option |
€ | ( |
) | € |
( |
) | ||||||||||
|
|
|
|
|||||||||||||
Total Liabilities |
— | Ps. | ( |
) | — |
Ps. |
( |
) | ||||||||
|
|
|
|
* |
Totals may not sum due to rounding. |
Instrument |
Notional amount in millions |
2024 |
2025 |
2026 |
2027 |
2028 Thereafter |
||||||||||||||||||
Assets |
||||||||||||||||||||||||
Swaps US Dollar – Mexican Peso |
US$ |
— |
— |
— |
— |
|||||||||||||||||||
Swaps Yen – US Dollar |
¥ |
— |
— |
— |
— |
|||||||||||||||||||
Swaps US Dollar – Euro |
US$ |
— |
— |
— |
— |
|||||||||||||||||||
Swaps Euro – US Dollar |
€ |
— |
— |
— |
— |
|||||||||||||||||||
Forwards US Dollar – Mexican Peso |
US$ |
— |
— |
— |
— |
|||||||||||||||||||
Forwards Brazilian Real – US Dollar |
R$ |
— |
— |
— |
— |
|||||||||||||||||||
Forwards Euro – US Dollar |
€ |
— |
— |
— |
— |
|||||||||||||||||||
Liabilities |
||||||||||||||||||||||||
Swaps US Dollar – Mexican Peso |
US$ |
— |
— |
— |
— |
|||||||||||||||||||
Swaps US Dollar – Euro |
US$ |
— |
— |
— |
— |
|||||||||||||||||||
Swaps Euro – US Dollar |
€ |
— |
— |
|||||||||||||||||||||
Swaps Yen – US Dollar |
¥ |
— |
— |
— |
— |
|||||||||||||||||||
Swaps Sterling Pound – Euro |
£ |
— |
— |
— |
||||||||||||||||||||
Swap Sterling Pound – US Dollar |
£ |
— |
— |
— |
||||||||||||||||||||
Forwards US Dollar – Mexican Peso |
US$ |
— |
— |
— |
— |
|||||||||||||||||||
Forwards Euro – US Dollar |
€ |
— |
— |
— |
— |
|||||||||||||||||||
Forwards Brazilian Real – US Dollar |
R$ |
— |
— |
— |
— |
|||||||||||||||||||
Forwards Euro – Mexican Peso |
€ |
— |
— |
— |
— |
|||||||||||||||||||
Call Option |
€ |
— |
— |
— |
— |
2022 | 2023 |
|||||||
Mobile phones, accessories, computers, TVs, cards and other materials |
Ps. |
Ps. |
||||||
Less: Reserve for obsolete and slow-moving inventories |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total |
Ps. |
Ps. |
||||||
|
|
|
|
2022 | 2023 |
|||||||
Current portion: |
||||||||
Advances to suppliers (different from CAPEX and inventories) |
Ps. | Ps. |
||||||
Prepaid insurance |
||||||||
Other |
||||||||
|
|
|
|
|||||
Ps. | Ps. |
|||||||
|
|
|
|
|||||
Non-current portion: |
||||||||
Recoverable taxes |
Ps. | Ps. |
||||||
Prepayments for the use of fiber optics |
||||||||
Judicial deposits (1) |
||||||||
Prepaid expenses |
||||||||
|
|
|
|
|||||
Total |
Ps. | Ps. |
||||||
|
|
|
|
(1) | Judicial deposits represent cash and cash equivalents pledged in order to fulfill the collateral requirements for tax contingencies in Brazil. Based on its evaluation of the underlying contingencies, the Company believes that such amounts are recoverable. See Note 17 b). |
At December 31, 2020 |
Additions |
Retirements (2) |
Transfers |
Effect of translation of foreign subsidiaries and hyperinflation adjustment |
Depreciation for the year (3) |
At December 31, 2021 |
||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
Network in operation and equipment |
Ps. | Ps. | Ps. | ( |
) | Ps. | Ps. | ( |
) | Ps. | — | Ps. | ||||||||||||||||
Land and buildings |
( |
) | ( |
) | — | |||||||||||||||||||||||
Other assets |
( |
) | ( |
) | ( |
) | — | |||||||||||||||||||||
Construction in process and advances plant suppliers (1) |
( |
) | ( |
) | ( |
) | — | |||||||||||||||||||||
Spare parts for operation of the network |
( |
) | ( |
) | ( |
) | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
( |
) | ( |
) | ( |
) | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Accumulated depreciation |
||||||||||||||||||||||||||||
Network in operation and equipment |
— | ( |
) | ( |
) | |||||||||||||||||||||||
Buildings |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||
Other assets |
— | ( |
) | ( |
) | |||||||||||||||||||||||
Spare parts for operation of the network |
— | ( |
) | — | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
Ps |
Ps. | — | Ps. | ( |
) | Ps. | Ps. | ( |
) | Ps. | Ps. | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Cost |
Ps. | Ps. | Ps. | ( |
) | Ps. | ( |
) | Ps. | ( |
) | Ps. | ( |
) | Ps. | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Construction in progress includes fixed and mobile network facilities as well as satellite developments and fiber optic which is in the process of being installed. |
(2) | Includes disposals related to the sale of TracFone. |
(3) | Discontinued operations. |
At December 31 2021 |
Additions |
Retirements (2) |
Business combinations (3) |
Revaluation adjustments (5) |
Transfer |
Incorporation (merger, spin- off, sale) (4) |
Effect of translation of foreign subsidiaries and hyperinflation adjustment |
Depreciation for the year |
At December 31, 2022 |
|||||||||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||||||||||||||
Network in operation and equipment |
Ps. |
Ps. |
Ps. |
( |
) |
Ps. |
Ps. |
( |
) |
Ps. |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
— |
Ps. |
|||||||||||||||||||||
Land and buildings |
( |
) |
— |
— |
— |
( |
) |
— |
||||||||||||||||||||||||||||||||
Other assets |
( |
) |
— |
( |
) |
( |
) |
— |
||||||||||||||||||||||||||||||||
Construction in process and advances plant suppliers (1) |
( |
) |
— |
( |
) |
( |
) |
( |
) |
— |
||||||||||||||||||||||||||||||
Spare parts for operation of the network |
( |
) |
— |
— |
( |
) |
( |
) |
( |
) |
— |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Accumulated depreciation |
||||||||||||||||||||||||||||||||||||||||
Network in operation and equipment |
Ps. |
Ps. |
— |
Ps. |
( |
) |
Ps. |
— |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
Ps. |
( |
) |
Ps. |
Ps. |
||||||||||||||||||||
Buildings |
— |
( |
) |
— |
— |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||
Other assets |
— |
( |
) |
— |
— |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||
Spare parts for the operation of the network |
— |
( |
) |
— |
— |
— |
( |
) |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total |
Ps. |
Ps. |
— |
Ps. |
( |
) |
Ps. |
— |
Ps. |
( |
) |
Ps. |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
Ps. |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net Cost |
Ps. |
Ps. |
Ps. |
( |
) |
Ps. |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Construction in progress includes fixed and mobile network facilities as well as satellite developments and fiber optic which is in the process of being installed. |
(2) | Includes disposals of Chile’s separation process as a result of the ClaroVTR joint venture. See Note 12b. Also includes disposals related to the sale of Claro Panama. See Note 2Ac and disposals related to the partial sale Claro Peru’s towers to Sitios Latam as of December 31, 2022. |
(3) | “Business Combination” includes the acquisition of Assets of Grupo Oi, Jonava and Ustore, in Brazil. See Note 12a. |
(4) | “Incorporation (merger, spin-off, sale)” includes disposals associated as spin-off of assets to Sitios Latam described in Note 12d. |
(5) | ¨Revaluation adjustments” include the surplus associated with the |
At December 31 2022 |
Additions |
Retirements (2)(3) |
Revaluation adjustments (4) |
Transfer |
Effect of translation of foreign subsidiaries and hyperinflation adjustment (5) |
Depreciation for the year |
At December 31, 2023 |
|||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||||||
Network in operation and equipment |
Ps. |
Ps. |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
Ps. |
( |
) |
Ps. |
— |
Ps. |
|||||||||||||||||
Land and buildings |
( |
) |
— |
( |
) |
— |
||||||||||||||||||||||||||
Other assets |
( |
) |
— |
( |
) |
— |
||||||||||||||||||||||||||
Construction in process and advances plant suppliers (1) |
( |
) |
— |
( |
) |
( |
) |
— |
||||||||||||||||||||||||
Spare parts for operation of the network |
( |
) |
— |
( |
) |
( |
) |
— |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
( |
) |
( |
) |
( |
) |
( |
) |
— |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Accumulated depreciation |
||||||||||||||||||||||||||||||||
Network in operation and equipment |
Ps. |
Ps. |
— |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
Ps. |
( |
) |
Ps. |
Ps. |
|||||||||||||||||
Buildings |
— |
( |
) |
— |
( |
) |
( |
) |
||||||||||||||||||||||||
Other assets |
— |
( |
) |
— |
( |
) |
||||||||||||||||||||||||||
Spare parts for the operation of the network |
— |
( |
) |
— |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
Ps. |
Ps. |
— |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
Ps. |
( |
) |
Ps. |
Ps. |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Cost |
Ps. |
Ps. |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | The construction in progress includes fixed and mobile network installations, as well as satellite and fiber optic developments that are in the process of being installed |
(2) | Includes disposals for the sale of |
(3) | It includes disposals related to the sale of |
(4) | Includes the surplus associated with the telecommunications towers that were transferred by the sale to Sitios Latam, described previously, for an amount of Ps. ( |
(5) | Includes a hyperinflation adjustment associated to Argentinean subsidiaries for an amount of Ps. ( |
Year ended December 31, |
||||||||||||
2021 | 2022 | 2023 |
||||||||||
Amount invested in the acquisition of qualifying assets |
Ps. |
Ps. |
Ps. |
|||||||||
Capitalized interest |
||||||||||||
Capitalization rate |
For the year ended December 31, 2021 | ||||||||||||||||||||||||
Balance at beginning of year |
Acquisitions | Disposals and other (1) |
Amortization of the year (2) |
Effect of translation of foreign subsidiaries and Hyperinflation adjustment |
Balance at end of year |
|||||||||||||||||||
Licenses and rights of use |
Ps. | Ps. | Ps. | ( |
) | Ps. | — | Ps. | ( |
) | Ps. | |||||||||||||
Accumulated amortization |
( |
) | — | ( |
) | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Trademarks |
( |
) | — | ( |
) | |||||||||||||||||||
Accumulated amortization |
( |
) | — | ( |
) | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Customer relationships |
( |
) | — | ( |
) | |||||||||||||||||||
Accumulated amortization |
( |
) | — | ( |
) | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Software licenses |
( |
) | — | ( |
) | |||||||||||||||||||
Accumulated amortization |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Content rights |
( |
) | — | |||||||||||||||||||||
Accumulated amortization |
( |
) | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total of intangibles, net |
Ps. | Ps. | Ps. | Ps. | ( |
) | Ps. | ( |
) | Ps. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Goodwill |
Ps. | Ps. | — | Ps. | ( |
) | Ps. | — | Ps. | ( |
) | Ps. | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Includes disposals related to the sale of TracFone. |
(2) | Discontinued operations of Panama and the ClaroVTR joint venture. See Note 2. Ac. |
For the year ended December 31, 2022 | ||||||||||||||||||||||||||||
Balance at beginning of year |
Acquisitions | Acquisitions in business combinations |
Disposals and other (1) |
Amortization of the year (2) |
Effect of translation of foreign subsidiaries and Hyperinflation adjustment |
Balance at end of year |
||||||||||||||||||||||
Licenses and rights of use |
Ps. | Ps. | Ps. | Ps. | ( |
) | Ps. | — | Ps. | ( |
) | Ps. | ||||||||||||||||
Accumulated amortization |
( |
) | — | — | ( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Trademarks |
( |
) | — | ( |
) | |||||||||||||||||||||||
Accumulated amortization |
( |
) | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Customer relationships |
— | — | ( |
) | ||||||||||||||||||||||||
Accumulated amortization |
( |
) | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Software licenses |
( |
) | — | ( |
) | |||||||||||||||||||||||
Accumulated amortization |
( |
) | — | — | ( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net |
( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Content rights |
— | ( |
) | — | ( |
) | ||||||||||||||||||||||
Accumulated amortization |
( |
) | — | — | ( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total of intangibles, net |
Ps. | Ps. | Ps. | Ps. | ( |
) | Ps. | ( |
) | Ps. | ( |
) | Ps. | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Goodwill |
Ps. | Ps. | Ps. | Ps. | ( |
) | Ps. | ( |
) | Ps. | ( |
) | Ps. | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Includes the transaction related to Panama and Chile disposal. |
(2) | Includes the discontinued operations of Panama and the ClaroVTR joint venture. See Note 2, Ac. |
For the year ended December 31, 2023 |
||||||||||||||||||||||||||||
Balance at beginning of year |
Acquisitions |
Disposals and other |
Amortization of the year |
Incorporation (Merge, Spin off, Sale/other) |
Effect of translation of foreign subsidiaries and Hyperinflation adjustment |
Balance at end of year |
||||||||||||||||||||||
Licenses and rights of use |
Ps. |
Ps. |
Ps. |
Ps. |
— |
Ps. |
— |
Ps. |
( |
) |
Ps. |
|||||||||||||||||
Accumulated amortization |
( |
) |
— |
( |
) |
( |
) |
— |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net |
( |
) |
— |
( |
) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Trademarks |
( |
) |
— |
( |
) |
|||||||||||||||||||||||
Accumulated amortization |
( |
) |
— |
( |
) |
— |
( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Customer relationships |
— |
— |
— |
( |
) |
|||||||||||||||||||||||
Accumulated amortization |
( |
) |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net |
— |
( |
) |
— |
( |
) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Software licenses |
— |
— |
( |
) |
||||||||||||||||||||||||
Accumulated amortization |
( |
) |
— |
( |
) |
— |
( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net |
( |
) |
— |
( |
) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Content rights |
( |
) |
— |
— |
( |
) |
||||||||||||||||||||||
Accumulated amortization |
( |
) |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net |
( |
) |
( |
) |
— |
( |
) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total of intangibles, net |
Ps. |
Ps. |
Ps. |
Ps. |
( |
) |
Ps. |
Ps. |
( |
) |
Ps. |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Goodwill |
Ps. |
Ps. |
— |
Ps. |
— |
Ps. |
— |
Ps. |
— |
Ps. |
Ps. |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 | 2023 |
|||||||
Europe |
Ps. | Ps. |
||||||
Brazil (1) |
||||||||
Puerto Rico |
||||||||
Dominican Republic |
||||||||
Colombia |
||||||||
Mexico |
||||||||
Peru |
||||||||
El Salvador |
||||||||
Ecuador |
||||||||
Guatemala |
||||||||
Other countries |
||||||||
|
|
|
|
|||||
Ps. | Ps. |
|||||||
|
|
|
|
(1) | Includes a goodwill as a result of the Jonava acquisition. See Note 12a. |
2022 Figures at acquisition date |
||||
Current assets |
Ps. | |||
Other non-current assets |
||||
Intangible assets (excluding goodwill) |
||||
Property, plant and equipment |
||||
Right-of-use |
||||
|
|
|||
Total acquired assets |
||||
|
|
|||
Accounts payable |
( |
) | ||
Other liabilities |
( |
) | ||
|
|
|||
Total assumed liabilities |
( |
) | ||
|
|
|||
Fair value of acquired assets and assumed liabilities – net of cash acquired |
||||
Acquisition price |
||||
|
|
|||
Goodwill |
Ps. | |||
|
|
December 31, |
||||||||
2022 | 2023 |
|||||||
Assets: |
||||||||
Current assets |
Ps. | Ps. |
||||||
Non-current assets |
||||||||
|
|
|
|
|||||
Total assets |
Ps. | Ps. |
||||||
|
|
|
|
|||||
Liabilities and equity: |
||||||||
Current liabilities |
Ps. | Ps. |
||||||
Non-current liabilities |
||||||||
|
|
|
|
|||||
Total liabilities |
||||||||
Equity attributable to equity holders of the parent |
||||||||
Non-controlling interest |
||||||||
|
|
|
|
|||||
Total equity |
Ps. | Ps. |
||||||
|
|
|
|
|||||
Total liabilities and equity |
Ps. | Ps. |
||||||
|
|
|
|
For the year ended December 31, |
||||||||||||
2021 | 2022 | 2023 |
||||||||||
Operating revenues |
Ps. | Ps. | Ps. |
|||||||||
Operating costs and expenses |
||||||||||||
|
|
|
|
|
|
|||||||
Operating income |
Ps. | Ps. | Ps. |
|||||||||
|
|
|
|
|
|
|||||||
Net income |
Ps. | Ps. | Ps. |
|||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income |
Ps. | Ps. | Ps. |
|||||||||
|
|
|
|
|
|
|||||||
Net income attributable to: |
||||||||||||
Equity holders of the parent |
Ps. | Ps. | Ps. |
|||||||||
Non-controlling interest |
||||||||||||
|
|
|
|
|
|
|||||||
Ps. | Ps. | Ps. |
||||||||||
|
|
|
|
|
|
|||||||
Comprehensive income attributable to: |
||||||||||||
Equity holders of the parent |
Ps. | Ps. | Ps. |
|||||||||
Non-controlling interest |
||||||||||||
|
|
|
|
|
|
|||||||
Ps. | Ps. | Ps. |
||||||||||
|
|
|
|
|
|
2021 | 2022 | 2023 |
||||||||||
Income Tax attributable to a continuing operation |
||||||||||||
In Mexico: |
||||||||||||
Current year income tax |
Ps. | Ps. | Ps. |
|||||||||
Deferred income tax |
( |
) | ( |
) | ||||||||
Foreign: |
||||||||||||
Current year income tax |
||||||||||||
Deferred income tax |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total income tax |
Ps. | Ps. | Ps. |
|||||||||
|
|
|
|
|
|
|||||||
Income Tax attributable to a discontinued operation |
||||||||||||
Income tax discontinued operations in Mexico |
||||||||||||
Income tax discontinued operations abroad (1) |
(1) | Includes effects related to the sale of Panama and the ClaroVTR joint venture. See Note 2Ac. |
For the years ended December 31, |
||||||||||||
2021 | 2022 | 2023 |
||||||||||
Remeasurement of defined benefit plans |
Ps. | ( |
) | Ps. | Ps. |
( |
) | |||||
Equity investments at fair value |
||||||||||||
Other |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Deferred tax benefit recognized in OCI |
Ps. | ( |
) | Ps |
Ps. |
|||||||
|
|
|
|
|
|
Year ended December 31, |
||||||||||||
2021 |
2022 |
2023 |
||||||||||
Statutory income tax rate in Mexico |
% |
% |
% | |||||||||
Impact of non-deductible and non-taxable items: |
||||||||||||
Tax inflation effects |
% |
% |
% | |||||||||
Derivatives |
( |
%) |
( |
)% |
% | |||||||
Employee benefits |
% |
% |
% | |||||||||
Other |
( |
%) |
% |
% | ||||||||
|
|
|
|
|
|
|||||||
Effective tax rate on Mexican operations |
% |
% |
% | |||||||||
Tax recoveries and NOL’s in Brazil |
( |
%) |
( |
)% |
( |
)% | ||||||
Dividends received from associates equity |
( |
)% |
( |
)% |
||||||||
Foreign subsidiarie s and other non-deductible items, net |
% (1) |
( |
)% |
( |
)% | |||||||
Tax rates differences |
( |
)% |
( |
)% |
( |
)% | ||||||
|
|
|
|
|
|
|||||||
Effective tax rate from continuing operations |
% |
% |
% | |||||||||
|
|
|
|
|
|
|||||||
Effective tax rate from discontinued operations |
( |
)% |
( |
)% |
||||||||
|
|
|
|
|
|
(1) |
Includes discontinued operations effects of TracFone and Claro Chile |
Consolidated statements of financial position |
Consolidated statements of net income |
|||||||||||||||||||
2022 | 2023 |
2021 | 2022 | 2023 |
||||||||||||||||
Provisions |
Ps. | Ps. |
Ps. | Ps. | Ps. |
|||||||||||||||
Deferred revenues |
( |
) | ||||||||||||||||||
Tax losses carry forward |
||||||||||||||||||||
Property, plant and equipment (1) |
( |
) | ( |
) |
||||||||||||||||
Inventories |
||||||||||||||||||||
Licenses and rights of use (1) |
( |
) | ( |
) |
||||||||||||||||
Employee benefits |
( |
) | ( |
) | ( |
) | ||||||||||||||
Other |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net deferred tax assets |
Ps. | Ps. |
||||||||||||||||||
|
|
|
|
|||||||||||||||||
Deferred tax benefit in net profit for the year |
|
Ps. | Ps. | Ps. |
||||||||||||||||
Deferred tax from discontinued operations |
|
|||||||||||||||||||
|
|
|
|
|
|
(1) | As of December 31, 2022 and 2023, the balance included the effects of hyperinflation and revaluation of telecommunications towers. |
2022 | 2023 |
|||||||
Opening balance as of January 1, |
Ps. | Ps. |
||||||
Deferred tax benefit |
||||||||
Translation effect |
( |
) | ||||||
Deferred tax benefit recognized in OCI |
||||||||
Deferred taxes acquired in business combinations |
( |
) | ( |
) | ||||
Hyperinflationary effect in Argentina |
( |
) | ( |
) | ||||
Disposals (Note 2Ac) |
( |
) | ||||||
Spin-off |
||||||||
Related discontinued operation |
||||||||
|
|
|
|
|||||
Closing balance as of December 31, |
Ps. | Ps. |
||||||
|
|
|
|
|||||
Presented in the consolidated statements of financial position as follows: |
||||||||
Deferred income tax assets |
Ps. | Ps. |
||||||
Deferred income tax liabilities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Ps. | Ps. |
|||||||
|
|
|
|
• | The Central Bank has made access to the free exchange market for goods and services imports more flexible, eliminating bureaucratic and administrative obstacles which obstructed access to foreign currency. This is the reason for the establishment of differentiated payment terms, according to the nature of the imported goods and services. |
• | The implementation of a new tax amnesty is under analysis, which will include both business subjects and individuals, and a regularization for the payment of tax, customs, and social security debts accrued as of December 31, 2023, releasing interest and penalties. |
Country |
Gross balance of available tax loss carryforwards at December 31, 2023 |
Tax-effected loss carryforward benefit |
||||||
Brazil |
Ps. |
Ps. |
||||||
Mexico |
||||||||
Argentina |
||||||||
Others |
||||||||
|
|
|
|
|||||
Total |
Ps. |
Ps. |
||||||
|
|
|
|
As of December 31, 2022 |
(Thousands of Mexican pesos) |
|||||||||||||
Currency |
Loan |
Interest rate |
Maturity |
Total |
||||||||||
Senior Notes |
||||||||||||||
U.S. dollars |
||||||||||||||
Fixed-rate Senior notes (i) | Ps. | |||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
|
|
|||||||||||||
Subtotal U.S. dollars |
Ps. |
|||||||||||||
|
|
|||||||||||||
Mexican pesos |
||||||||||||||
Domestic Senior notes (i) | Ps. | |||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Domestic Senior notes (i) | ||||||||||||||
Domestic Senior notes (i) | ||||||||||||||
Domestic Senior notes (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Domestic Senior notes (i) | ||||||||||||||
Domestic Senior notes (i) | ||||||||||||||
|
|
|||||||||||||
Subtotal Mexican pesos |
Ps. |
|||||||||||||
|
|
|||||||||||||
Euros |
||||||||||||||
Commercial Paper (ii) | Ps. | |||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Exchangeable Bond (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
|
|
|||||||||||||
Subtotal euros |
Ps. |
|||||||||||||
|
|
|||||||||||||
Pound Sterling |
||||||||||||||
Fixed-rate Senior notes (i) | Ps. | |||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
Fixed-rate Senior notes (i) | ||||||||||||||
|
|
|||||||||||||
Subtotal Pound Sterling |
Ps. |
|||||||||||||
|
|
|||||||||||||
Brazilian reais |
||||||||||||||
Debentures (i) | Ps. | |||||||||||||
Promissory Notes (i) | ||||||||||||||
Debentures (i) | ||||||||||||||
Debentures (i) | ||||||||||||||
|
|
|||||||||||||
Subtotal Brazilian reais |
Ps. |
|||||||||||||
|
|
|||||||||||||
Other currencies |
||||||||||||||
Japanese yen |
||||||||||||||
Fixed-rate Senior notes (i) |
Ps. | |||||||||||||
|
|
|||||||||||||
Subtotal Japanese yen |
Ps. |
|||||||||||||
|
|
|||||||||||||
Chilean pesos |
||||||||||||||
Fixed-rate Senior notes (i) |
Ps. | |||||||||||||
|
|
|||||||||||||
Subtotal Chilean pesos |
Ps. |
|||||||||||||
|
|
|||||||||||||
Subtotal other currencies |
Ps. |
|||||||||||||
|
|
As of December 31, 2022 |
(Thousands of Mexican pesos) |
|||||||||
Currency |
Loan |
Interest rate |
Maturity |
Total |
||||||
Lines of Credit and others |
||||||||||
U.S. dollars |
||||||||||
Lines of credit (iii) |
Ps. | |||||||||
Euros |
||||||||||
Lines of credit (iii) |
||||||||||
Mexican pesos |
||||||||||
Lines of credit (iii) |
||||||||||
Peruvian Soles |
||||||||||
Lines of credit (iii) |
||||||||||
Colombian pesos |
||||||||||
Lines of credit (iii) |
||||||||||
Brazilian reais |
||||||||||
Lines of credit (iii) |
||||||||||
Others |
||||||||||
Lines of credit (iii) |
||||||||||
|
|
|||||||||
Subtotal Lines of Credit and others |
Ps. |
|||||||||
|
|
|||||||||
Total debt |
Ps. |
|||||||||
|
|
|||||||||
Less: Short-term debt and current portion of long-term debt |
Ps. |
|||||||||
|
|
|||||||||
Long-term debt |
Ps. |
|||||||||
|
|
As of December 31, 2023 |
(Thousands of Mexican pesos) |
|||||||||
Currency |
Loan |
Interest rate |
Maturity |
Total |
||||||
Senior Notes |
||||||||||
U.S. dollars |
||||||||||
Fixed-rate Senior notes (i) |
Ps. | |||||||||
Fixed-rate Senior notes (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
|
|
|||||||||
Subtotal U.S. dollars |
Ps. |
|||||||||
|
|
|||||||||
Mexican pesos |
||||||||||
Commercial Paper (ii) |
Ps. | |||||||||
Domestic Senior notes (i) |
||||||||||
Domestic Senior notes (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
Domestic Senior notes (i) |
||||||||||
Domestic Senior notes (i) |
||||||||||
Domestic Senior notes (i) |
||||||||||
Domestic Senior notes (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
Domestic Senior notes (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
Domestic Senior notes (i) |
||||||||||
Domestic Senior notes (i) |
||||||||||
|
|
|||||||||
Subtotal Mexican pesos |
Ps. |
|||||||||
|
|
|||||||||
Euros |
||||||||||
Commercial Paper (ii) |
Ps. | |||||||||
Exchangeable Bond (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
Fixed-rate Senior notes (i) |
||||||||||
|
|
|||||||||
Subtotal euros |
Ps. |
|||||||||
|
|
As of December 31, 2023 |
(Thousands of Mexican pesos) |
|||||||||||||
Currency |
Loan |
Interest rate |
Maturity |
Total |
||||||||||
Pound Sterling |
||||||||||||||
Fixed-rate Senior notes (i) |
Ps. | |||||||||||||
Fixed-rate Senior notes (i) |
||||||||||||||
Fixed-rate Senior notes (i) |
||||||||||||||
Fixed-rate Senior notes (i) |
||||||||||||||
|
|
|||||||||||||
Subtotal Pound Sterling |
Ps. |
|||||||||||||
|
|
|||||||||||||
Brazilian reais |
||||||||||||||
Debentures (i) |
Ps. | |||||||||||||
Debentures (i) |
||||||||||||||
Debentures (i) |
||||||||||||||
Debentures (i) |
||||||||||||||
|
|
|||||||||||||
Subtotal Brazilian reais |
Ps. |
|||||||||||||
|
|
|||||||||||||
Other currencies |
||||||||||||||
Japanese yen |
||||||||||||||
Fixed-rate Senior notes (i) | Ps. | |||||||||||||
|
|
|||||||||||||
Subtotal Japanese yen |
Ps. |
|||||||||||||
|
|
|||||||||||||
Chilean pesos |
||||||||||||||
Fixed-rate Senior notes (i) |
Ps. | |||||||||||||
|
|
|||||||||||||
Subtotal Chilean pesos |
Ps. |
|||||||||||||
|
|
|||||||||||||
Subtotal other currencies |
Ps. |
|||||||||||||
|
|
|||||||||||||
Lines of Credit and others |
||||||||||||||
Euros |
||||||||||||||
Lines of credit (iii) |
1 M + |
|
Ps. | |||||||||||
Mexican pesos |
||||||||||||||
Lines of credit (iii) |
- |
|
||||||||||||
Peruvian Soles |
||||||||||||||
Lines of credit (iii) |
||||||||||||||
|
|
|||||||||||||
Subtotal Lines of Credit and others |
Ps. |
|||||||||||||
|
|
|||||||||||||
Total debt |
Ps. |
|||||||||||||
|
|
|||||||||||||
Less: Short-term debt and current portion of long-term debt |
Ps. |
|||||||||||||
|
|
|||||||||||||
Long-term debt |
Ps. |
|||||||||||||
|
|
2022 |
2023 |
|||||||
Obligations and Senior Notes |
Ps. | Ps. | ||||||
Lines of credit |
||||||||
|
|
|
|
|||||
Subtotal short term debt |
Ps. |
Ps. |
||||||
|
|
|
|
|||||
Weighted average interest rate |
% | % | ||||||
|
|
|
|
Years |
Amount | |||
2025 |
Ps. |
|||
2026 |
||||
2027 |
||||
2028 |
||||
2029 |
||||
2030 and thereafter |
||||
|
|
|||
Total |
Ps. |
|||
|
|
Currency* |
2022 | 2023 |
||||||
U.S. dollars |
Ps. | Ps. |
||||||
Mexican pesos |
||||||||
Euros |
||||||||
Pound sterling |
||||||||
Brazilian reais |
||||||||
Japanese yens |
||||||||
Chilean pesos |
* | Thousands of Mexican pesos |
* | Includes secured and unsecured senior notes. |
Right-of-use assets | Liability related to right-of-use of assets |
|||||||||||||||||||
Towers & Sites | Property | Other equipment |
Total | |||||||||||||||||
As of January 1, 2021 |
Ps. | Ps. | Ps. | Ps. | Ps. | |||||||||||||||
Additions and release (1) |
||||||||||||||||||||
Modifications |
||||||||||||||||||||
Depreciation (1) |
( |
) | ( |
) | ( |
) | ( |
) | — | |||||||||||
Interest expense |
— | — | — | — | ||||||||||||||||
Payments |
— | — | — | — | ( |
) | ||||||||||||||
Translation adjustment |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at December 31, 2021 |
Ps. | Ps. | Ps. | Ps. | Ps. | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Discontinued operations |
Right-of-use assets | Liability related to right-of-use of assets |
|||||||||||||||||||
Towers & Sites | Property | Other equipment |
Total | |||||||||||||||||
As of January 1, 2022 |
Ps. | Ps. | Ps. | Ps. | Ps. | |||||||||||||||
Additions and release (1) |
||||||||||||||||||||
Business combinations |
||||||||||||||||||||
Modifications |
||||||||||||||||||||
Depreciation |
( |
) | ( |
) | ( |
) | ( |
) | — | |||||||||||
Interest expense |
— | — | — | — | ||||||||||||||||
Payments |
— | — | — | — | ( |
) | ||||||||||||||
Disposals (2) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Transfers (3) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Translation adjustment |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at December 31, 2022 |
Ps. | Ps. | Ps. | Ps. | Ps. | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | The increase as compared to the previous year, was due to rights of use and their corresponding liability with Sitios Latam, resulting from the spin-off occurred in August 2022. |
(2) | Disposals includes the Panama disposal. See Note 2Ac. |
(3) | Transfers includes the ClaroVTR joint venture. See Note 12b. |
Right-of-use assets | Liability related to right-of-use of assets |
|||||||||||||||||||
Towers & Sites | Property | Other equipment |
Total | |||||||||||||||||
As of January 1, 2023 |
Ps. |
Ps. |
Ps. |
Ps. |
Ps. |
|||||||||||||||
Additions and release |
||||||||||||||||||||
Modifications |
( |
) |
||||||||||||||||||
Depreciation |
( |
) |
( |
) |
( |
) |
( |
) |
— |
|||||||||||
Interest expense |
— |
— |
— |
— |
||||||||||||||||
Payments |
— |
— |
— |
— |
( |
) | ||||||||||||||
Translation adjustment |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at December 31, 2023 |
Ps. |
Ps. |
Ps. |
Ps. |
Ps. |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
2022 | 2023 |
|||||||
Short term |
Ps. |
Ps. |
||||||
Long term |
||||||||
|
|
|
|
|||||
Total |
Ps. |
Ps. |
||||||
|
|
|
|
Year ended December 31, |
||||
2025 |
Ps. |
|||
2026 |
||||
2027 |
||||
2028 |
||||
2029 |
||||
2030 and thereafter |
||||
|
|
|||
Total |
Ps. |
|||
|
|
2021 | ||||||||||||
Others | Related parties | Total | ||||||||||
Depreciation expense of right-of-use assets (1) |
Ps. | Ps. | Ps. | |||||||||
Interest expense on lease liabilities (1) |
||||||||||||
Expense relating to short-term leases |
— | |||||||||||
Expense relating to leases of low-value assets |
— | |||||||||||
Variable lease payments |
— | |||||||||||
|
|
|
|
|
|
|||||||
Total |
Ps. | Ps. | Ps. | |||||||||
|
|
|
|
|
|
(1) | Discontinued operations |
2022 | ||||||||||||
Others | Related parties | Total | ||||||||||
Depreciation expense of right-of-use assets |
Ps. | Ps. | Ps. | |||||||||
Interest expense on lease liabilities |
||||||||||||
Expense relating to short-term leases |
— | |||||||||||
Expense relating to leases of low-value assets |
— | |||||||||||
Variable lease payments |
— | |||||||||||
|
|
|
|
|
|
|||||||
Total |
Ps. | Ps. | Ps. | |||||||||
|
|
|
|
|
|
2023 |
||||||||||||
Others |
Related parties |
Total |
||||||||||
Depreciation expense of right-of-use assets |
Ps. |
Ps. |
Ps. |
|||||||||
Interest expense on lease liabilities |
||||||||||||
Expense relating to short-term leases |
— |
|||||||||||
Expense relating to leases of low-value assets |
— |
|||||||||||
Variable lease payments |
— |
|||||||||||
|
|
|
|
|
|
|||||||
Total |
Ps. |
Ps. |
Ps. |
|||||||||
|
|
|
|
|
|
At December 31, |
||||||||
2022 | 2023 |
|||||||
Suppliers |
Ps. | Ps. |
||||||
Sundry creditors |
||||||||
Interest payable |
||||||||
Guarantee deposits from customers |
||||||||
Dividends payable |
||||||||
|
|
|
|
|||||
Total |
Ps. | Ps. |
||||||
|
|
|
|
At December 31, |
||||||||
2022 | 2023 |
|||||||
Current liabilities |
||||||||
Direct employee benefits payable |
Ps. | Ps. |
||||||
Provisions |
||||||||
|
|
|
|
|||||
Total |
Ps. | Ps. |
||||||
|
|
|
|
Balance at December 31, 2021 |
Effect of translation |
Increase of the year |
Applications | Balance at December 31, 2022 |
||||||||||||||||||||
Payments | Reversals | |||||||||||||||||||||||
Contingencies |
Ps. | Ps. | Ps. | Ps.( |
Ps.( |
Ps. | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2022 |
Effect of translation |
Increase of the year |
Applications |
Balance at December 31, 2023 |
||||||||||||||||||||
Payments |
Reversals |
|||||||||||||||||||||||
Contingencies |
Ps. |
Ps. |
( |
) |
Ps. |
Ps.( |
Ps.( |
Ps. |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2021 |
Business combination |
Spin-off effect (2) |
Effect of translation |
Increase of the year |
Applications | Balance at December 31, 2022 |
||||||||||||||||||||||||||
Payments | Reversals (1) |
|||||||||||||||||||||||||||||||
Asset retirement obligations |
Ps. | Ps. | Ps.( |
Ps.( |
Ps. |
Ps.( |
Ps.( |
Ps. |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Reversals includes the sale of Claro Panama and Claro Chile disposal. See Note 12b. |
(2) | See Note 12d. |
Balance at December 31, 2022 |
Effect of translation |
Increase of the year |
Applications |
Balance at December 31, 2023 |
||||||||||||||||||||
Payments |
Reversals |
|||||||||||||||||||||||
Asset retirement obligations |
Ps. |
Ps. |
( |
) |
Ps. |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
||||
2024 |
Ps. |
|||
2025 |
||||
2026 |
||||
2027 |
||||
2028 and 2029 |
||||
2030 and thereafter |
||||
|
|
|||
Total |
Ps. |
|||
|
|
• | Ps. |
• | Ps. |
• | Ps. |
• | Ps. |
• | Ps. |
• | Ps. |
• | Ps. |
• | Ps. |
• | Ps. |
At December 31, |
||||||||
2022 | 2023 |
|||||||
Mexico |
Ps. | Ps. |
||||||
Puerto Rico |
||||||||
Brazil |
||||||||
Europe |
||||||||
Ecuador |
||||||||
El Salvador |
||||||||
Nicaragua |
||||||||
Honduras |
||||||||
|
|
|
|
|||||
Total |
Ps. | Ps. |
||||||
|
|
|
|
For the year ended December 31, |
||||||||||||
2021 | 2022 | 2023 |
||||||||||
Mexico |
Ps. | Ps. | Ps. |
|||||||||
Puerto Rico |
||||||||||||
Brazil |
||||||||||||
Europe |
||||||||||||
Ecuador |
( |
) | ||||||||||
El Salvador |
||||||||||||
Nicaragua |
||||||||||||
Honduras |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
Ps. | Ps. | Ps. |
|||||||||
|
|
|
|
|
|
At December 31 |
||||||||||||||||||||||||||||||||
2022 | 2023 |
|||||||||||||||||||||||||||||||
DBO | Plan Assets | Effect of asset ceiling |
Net employee benefit liability |
DBO |
Plan Assets |
Effect of asset ceiling |
Net employee benefit liability |
|||||||||||||||||||||||||
Mexico |
Ps. | Ps.( |
) | Ps. | — | Ps. | Ps. |
Ps.( |
) |
Ps. |
— |
Ps. |
||||||||||||||||||||
Puerto Rico |
( |
) | — | ( |
) |
— |
||||||||||||||||||||||||||
Brazil |
( |
) | ( |
) |
||||||||||||||||||||||||||||
Europe |
— | — | — |
— |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
Ps. | Ps.( |
) | Ps. | Ps. | Ps. |
Ps.( |
) |
Ps. |
Ps. |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2021 | ||||||||||||||||
DBO | Plan Assets | Effect of asset ceiling |
Net employee benefit liability |
|||||||||||||
Balance at the beginning of the year |
Ps. | Ps. | ( |
) | Ps. | Ps. | ||||||||||
Current service cost |
||||||||||||||||
Interest cost on projected benefit obligation |
||||||||||||||||
Expected return on plan assets |
( |
) | ( |
) | ||||||||||||
Changes in the asset ceiling during the period and others |
||||||||||||||||
Past service costs and other |
||||||||||||||||
Actuarial gain for changes in experience |
( |
) | ( |
) | ||||||||||||
Actuarial gain from changes in demographic assumptions |
( |
) | ( |
) | ||||||||||||
Actuarial gain from changes in financial assumptions |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net period cost |
Ps. | Ps. | ( |
) | Ps. | Ps. | ||||||||||
Actuarial loss for changes in experience |
||||||||||||||||
Actuarial gain from changes in demographic assumptions |
( |
) | ( |
) | ||||||||||||
Actuarial gain from changes in financial assumptions |
( |
) | ( |
) | ||||||||||||
Changes in the asset ceiling during the period and others |
||||||||||||||||
Return on plan assets greater than discount rate (shortfall) |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Recognized in other comprehensive income |
Ps. | Ps. | ( |
) | Ps. | Ps. | ( |
) | ||||||||
Contributions made by plan participants |
( |
) | — | |||||||||||||
Contributions to the pension plan made by the Company |
||||||||||||||||
Benefits paid |
( |
) | ( |
) | ||||||||||||
Payments to employees |
( |
) | ( |
) | ||||||||||||
Effect of translation |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Others |
Ps. | ( |
) | Ps. | Ps. | ( |
) | Ps. | ( |
) | ||||||
Balance at the end of the year |
( |
) | ||||||||||||||
Less short-term portion |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-current obligation |
Ps. | Ps. | ( |
) | Ps. | Ps. | ||||||||||
|
|
|
|
|
|
|
|
At December 31, 2022 | ||||||||||||||||
DBO | Plan Assets | Effect of asset ceiling |
Net employee benefit liability |
|||||||||||||
Balance at the beginning of the year |
Ps. | Ps. | ( |
) | Ps. | Ps. | ||||||||||
Current service cost |
— | — | ||||||||||||||
Interest cost on projected benefit obligation |
— | — | ||||||||||||||
Expected return on plan assets |
— | ( |
) | — | ( |
) | ||||||||||
Changes in the asset ceiling during the period and others |
— | — | ||||||||||||||
Past service costs and other |
— | — | ||||||||||||||
Actuarial gain for changes in experience |
( |
) | — | — | ( |
) | ||||||||||
Actuarial gain from changes in demographic assumptions |
( |
) | — | — | ( |
) | ||||||||||
Actuarial gain from changes in financial assumptions |
( |
) | — | — | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net period cost |
Ps. | Ps. | ( |
) | Ps. | Ps. | ||||||||||
Actuarial loss for changes in experience |
— | — | ||||||||||||||
Actuarial loss from changes in demographic assumptions |
— | — | ||||||||||||||
Actuarial gain from changes in financial assumptions |
( |
) | — | — | ( |
) | ||||||||||
Changes in the asset ceiling during the period and others |
— | — | ||||||||||||||
Return on plan assets greater than discount rate (shortfall) |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Recognized in other comprehensive income |
Ps. | ( |
) | Ps. | Ps. | Ps. | ||||||||||
Contributions made by plan participants |
( |
) | — | — | ||||||||||||
Contributions to the pension plan made by the Company |
— | — | ||||||||||||||
Benefits paid |
( |
) | — | ( |
) | |||||||||||
Payments to employees |
( |
) | — | — | ( |
) | ||||||||||
Plan changes |
— | — | ||||||||||||||
Effect of translation |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Others |
Ps. | ( |
) | Ps. | Ps. | ( |
) | Ps. | ( |
) | ||||||
Balance at the end of the year |
( |
) | ||||||||||||||
Less short-term portion |
( |
) | — | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-current obligation |
Ps. | Ps. | ( |
) | Ps. | Ps. | ||||||||||
|
|
|
|
|
|
|
|
At December 31, 2023 |
||||||||||||||||
DBO |
Plan Assets |
Effect of asset ceiling |
Net employee benefit liability |
|||||||||||||
Balance at the beginning of the year |
Ps. |
Ps. |
( |
) |
Ps. |
Ps. |
||||||||||
Current service cost |
— |
— |
||||||||||||||
Interest cost on projected benefit obligation |
— |
— |
||||||||||||||
Expected return on plan assets |
— |
( |
) |
— |
( |
) | ||||||||||
Changes in the asset ceiling during the period and others |
— |
— |
||||||||||||||
Past service costs and other |
( |
) |
— |
( |
) | |||||||||||
Actuarial gain for changes in experience |
( |
) |
— |
— |
( |
) | ||||||||||
Actuarial loss from changes in demographic assumptions |
— |
— |
||||||||||||||
Actuarial loss from changes in financial assumptions |
— |
— |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net period cost |
Ps. |
Ps. |
( |
) |
Ps. |
Ps. |
||||||||||
Actuarial loss for changes in experience |
— |
— |
||||||||||||||
Actuarial gain from changes in demographic assumptions |
( |
) |
— |
— |
( |
) | ||||||||||
Actuarial loss from changes in financial assumptions |
— |
— |
||||||||||||||
Changes in the asset ceiling during the period and others |
— |
— |
( |
) |
( |
) | ||||||||||
Return on plan assets greater than discount rate (shortfall) |
— |
( |
) |
— |
( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Recognized in other comprehensive income |
Ps. |
Ps. |
( |
) |
Ps. |
( |
) |
Ps. |
||||||||
Contributions made by plan participants |
( |
) |
— |
— |
||||||||||||
Contributions to the pension plan made by the Company |
— |
( |
) |
— |
( |
) | ||||||||||
Benefits paid |
( |
) |
— |
( |
) | |||||||||||
Payments to employees |
( |
) |
— |
— |
( |
) | ||||||||||
Plan changes |
( |
) |
— |
( |
) | |||||||||||
Effect of translation |
( |
) |
( |
) |
( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Others |
Ps. |
( |
) |
Ps. |
Ps. |
( |
) |
Ps. |
( |
) | ||||||
Balance at the end of the year |
( |
) |
||||||||||||||
Less short-term portion |
( |
) |
— |
— |
( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-current obligation |
Ps. |
Ps. |
( |
) |
Ps. |
Ps. |
||||||||||
|
|
|
|
|
|
|
|
2022 | 2023 |
|||||||||||||||||||||||
Puerto Rico | Brazil | Mexico | Puerto Rico |
Brazil |
Mexico |
|||||||||||||||||||
Equity instruments |
% | — | % | % |
— |
% | ||||||||||||||||||
Debt instruments |
% | % | % | % |
% |
% | ||||||||||||||||||
Others |
% | % | — | % |
% |
— |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
% | % | % | % |
% |
% | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2021 | 2022 | 2023 | ||||||||||||||||||||||||||||||||||||
Puerto Rico |
Brazil | Mexico | Europe | Puerto Rico |
Brazil | Mexico | Europe | Puerto Rico |
Brazil |
Mexico |
Europe | |||||||||||||||||||||||||||
Discount rate and long- term rate return |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||||
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
|
|
% |
| |||||||||||||
Rate of future salary increases |
||||||||||||||||||||||||||||||||||||||
& |
& | |||||||||||||||||||||||||||||||||||||
Percentage of increase in health care costs for the coming year |
||||||||||||||||||||||||||||||||||||||
Year to which this level will be maintained |
N/A | NA | NA |
|||||||||||||||||||||||||||||||||||
Rate of increase of pensions |
||||||||||||||||||||||||||||||||||||||
Employee turnover rate* |
* | Depending on years of service |
Puerto Rico: | ||
Mortality: | RPI 2012, MSS 2022 Tables. | |
Brazil: | ||
Mortality: | 2000 Basic AT Table for gender | |
Disability for assets: | UP 84 modified table for gender | |
Disability retirement: | 80 CSO Code Table | |
Rotation: | Probability of leaving the Company other than death, Disability and retirement is zero |
Telmex | ||
Mortality: | Mexican 2000 (CNSF) adjusted | |
Disability: | Mexican Social Security adjusted by Telmex experience | |
Turnover: | Telmex experience | |
Retirement: | Telmex experience |
-100 points |
+100 points |
|||||||
Discount rate |
Ps. | Ps. | ( |
) | ||||
Health care cost trend rat |
Ps. | ( |
) | Ps. |
Balance at December 31, 2021 |
Effect of translation |
Increase of the year |
Payments | Balance at December 31, 2022 |
||||||||||||||||
Long-term direct employee benefits |
Ps. |
Ps.( |
Ps. |
Ps.( |
Ps. |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at December 31, 2022 |
Effect of translation |
Increase of the year |
Payments |
Balance at December 31, 2023 |
||||||||||||||||
Long-term direct employee benefits |
Ps. |
Ps.( |
Ps. |
Ps.( |
Ps. |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2022 | ||||||||||||
Loans and Receivables |
Fair value through profit or loss |
Fair value through OCI |
||||||||||
Financial Assets: |
||||||||||||
Equity investments at fair value through OCI and other short-term investments (Note 4) |
Ps. | — | Ps. | — | Ps. | |||||||
Accounts receivable from subscribers, distributors, contractual assets and other (Note 5) |
— | — | ||||||||||
Related parties (Note 6) |
— | — | ||||||||||
Derivative financial instruments (Note 7) |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total current assets |
||||||||||||
|
|
|
|
|
|
|||||||
Non-current assets |
||||||||||||
Debt instruments at fair value through OCI |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total |
Ps. | Ps. | Ps. | |||||||||
|
|
|
|
|
|
|||||||
Financial Liabilities: |
||||||||||||
Debt (Note 14) |
Ps. | Ps. | — | Ps. | — | |||||||
Liability related to right-of-use of assets (Note 15) |
— | — | ||||||||||
Accounts payable (Note 16) |
— | — | ||||||||||
Related parties (Note 6) |
— | — | ||||||||||
Derivative financial instruments (Note 7) |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total |
Ps. | Ps. | Ps. | — | ||||||||
|
|
|
|
|
|
December 31, 2023 |
||||||||||||
Loans and Receivables |
Fair value through profit or loss |
Fair value through OCI |
||||||||||
Financial Assets: |
||||||||||||
Equity investments at fair value through OCI and other short-term investments (Note 4) |
Ps. |
Ps. |
— |
Ps. |
||||||||
Accounts receivable from subscribers, distributors, contractual assets and other (Note 5) |
— |
— |
||||||||||
Related parties (Note 6) |
— |
— |
||||||||||
Derivative financial instruments (Note 7) |
— |
— |
||||||||||
|
|
|
|
|
|
|||||||
Total current assets |
||||||||||||
|
|
|
|
|
|
|||||||
Non-current assets |
||||||||||||
Debt instruments at fair value through OCI |
— |
— |
||||||||||
|
|
|
|
|
|
|||||||
Total |
Ps. |
Ps. |
Ps. |
|||||||||
|
|
|
|
|
|
|||||||
Financial Liabilities: |
||||||||||||
Debt (Note 14) |
Ps. |
Ps. |
— |
Ps. |
— |
|||||||
Liability related to right-of-use of assets (Note 15) |
— |
— |
||||||||||
Accounts payable (Note 16) |
— |
— |
||||||||||
Related parties (Note 6) |
— |
— |
||||||||||
Derivative financial instruments (Note 7) |
— |
— |
||||||||||
|
|
|
|
|
|
|||||||
Total |
Ps. |
Ps. |
Ps. |
— |
||||||||
|
|
|
|
|
|
Measurement of fair value at December 31, 2022 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: |
||||||||||||||||
Equity investments at fair value through OCI and other short-term investments (Note 4) |
Ps. | Ps. | — | Ps. | — | Ps. | ||||||||||
Derivative financial instruments (Note 7) |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total current assets |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Revalued of assets (Note 10) |
— | — | ||||||||||||||
Pension plan assets (Note 18) |
||||||||||||||||
Debt instruments at fair value through OCI |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non current assets |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
Ps. | Ps. | Ps. | Ps. | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Debt |
Ps. | Ps. | Ps. | — | Ps. | |||||||||||
Liability related to right-of-use of assets |
— | — | ||||||||||||||
Derivative financial instruments |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
Ps. | Ps. | Ps. | — | Ps. | |||||||||||
|
|
|
|
|
|
|
|
Measurement of fair value at December 31, 2023 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Assets: |
||||||||||||||||
Equity investments at fair value through OCI and other short-term investments (Note 4) |
Ps. |
Ps. |
— |
Ps. |
Ps. |
|||||||||||
Derivative financial instruments (Note 7) |
— |
— |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total current assets |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Revalued of assets (Note 10) |
— |
— |
||||||||||||||
Pension plan assets (Note 18) |
||||||||||||||||
Debt instruments at fair value through OCI |
— |
|||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non current assets |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
Ps. |
Ps. |
Ps. |
Ps. |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Debt |
Ps. |
Ps. |
Ps. |
— |
Ps. |
|||||||||||
Liability related to right-of-use of assets |
— |
— |
||||||||||||||
Derivative financial instruments |
— |
— |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
Ps. |
Ps. |
Ps. |
— |
Ps. |
|||||||||||
|
|
|
|
|
|
|
|
At December 31, 2021 |
Cash flow | Foreign currency exchange and other |
At December 31, 2022 |
|||||||||||||
Debt |
Ps. |
Ps. |
Ps.( |
) | Ps. |
|||||||||||
Liability related to right-of-use of assets |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities from financing activities |
Ps. |
Ps. |
Ps.( |
) | Ps. |
|||||||||||
|
|
|
|
|
|
|
|
At December 31, 2022 |
Cash flow |
Foreign currency exchange and other |
At December 31, 2023 |
|||||||||||||
Debt |
Ps. |
Ps. |
Ps.( |
) |
Ps. |
|||||||||||
Liability related to right-of-use of assets |
( |
) |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities from financing activities |
Ps. |
Ps.( |
) |
Ps.( |
) |
Ps. |
||||||||||
|
|
|
|
|
|
|
|
For the years ended December 31, |
||||||||||||
(1) 2021 |
(1) 2022 |
2023 |
||||||||||
Net profit for the period attributable to equity holders of the parent from continuing operations |
Ps. | Ps. | Ps. |
|||||||||
Net profit for the period attributable to equity holders of the parent from discontinued operations |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Net profit for the period attributable to equity holders of the parent |
||||||||||||
Weighted average shares (in millions) |
||||||||||||
|
|
|
|
|
|
|||||||
Earnings per share attributable to equity holders of the parent continuing operations |
Ps. | Ps. | Ps. |
|||||||||
|
|
|
|
|
|
|||||||
Earnings per share attributable to equity holders of the parent discontinued operations |
Ps. | Ps. | ( |
) | Ps. |
|||||||
|
|
|
|
|
|
(1) | Discontinued operations |
For the years ended December 31, |
||||||||||||
2021 | 2022 | 2023 |
||||||||||
Controlling interest: |
||||||||||||
Unrealized gain (loss) on equity investments at fair value, net of deferred taxes |
Ps. | Ps. | ( |
) | Ps. |
( |
) | |||||
Translation effect of foreign entities |
( |
) | ( |
) | ( |
) | ||||||
Translation effect by discontinued operations |
( |
) | ||||||||||
Remeasurement of defined benefit plan, net of deferred taxes |
( |
) | ( |
) | ||||||||
Asset’s revaluation surplus net of deferred taxes |
— | — | ||||||||||
Non-controlling interest of the items above |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Other comprehensive income (loss) |
Ps. | Ps. | ( |
) | Ps. |
( |
) | |||||
|
|
|
|
|
|
For the years ended December 31, |
||||||||||||
2021 | 2022 | 2023 |
||||||||||
Loss in valuation of derivatives, net (Note 7) |
Ps. | ( |
) | Ps. | ( |
) | Ps. |
( |
) | |||
Capitalized interest expense (Note 10 b) |
||||||||||||
Commissions |
( |
) | ( |
) | ( |
) | ||||||
Interest cost of labor obligations (Note 18) |
( |
) | ( |
) | ( |
) | ||||||
Contractual earn-out from business combination (Note 4) |
— | |||||||||||
Interest expense on taxes |
( |
) | ( |
) | ( |
) | ||||||
Recognized dividend income (3) (Note 4) |
||||||||||||
Contractual compensation from business combination |
— | — | ( |
) | ||||||||
Impairment to notes receivable from joint venture |
— | — | ( |
) | ||||||||
Impairment of joint venture |
— | — | ( |
) | ||||||||
Allowance of doubtful accounts (1) |
— | — | ( |
) | ||||||||
Gain on net monetary positions |
||||||||||||
Other financial cost (2) |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total |
Ps. | ( |
) | Ps. | ( |
) | Ps. |
( |
) | |||
|
|
|
|
|
|
(1) | This figure is related to certain uncollectible balances. |
(2) | Excludes discontinued operations of TracFone, Chile and Panama for the years ended 2021 and 2022. (See note 2ac) |
(3) | Dividend received during 2021, 2022 and 2023 by Ps. |
Mexico |
Telmex |
Brazil |
(2) Southern Cone |
Colombia |
Andean |
(1) Central America |
Caribbean |
Europe |
Eliminations |
Consolidated total |
||||||||||||||||||||||||||||||||||||||
Argentina | Uruguay and Paraguay |
|||||||||||||||||||||||||||||||||||||||||||||||
As of and for the year ended December 31, 2021 (in Ps.): |
||||||||||||||||||||||||||||||||||||||||||||||||
External revenues |
— | |||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenues |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total revenues |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Operating income |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Income tax |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Equity interest in net result of associated companies |
( |
) | — | — | — | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent continues operations |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent discontinued operations |
— | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Assets by segment |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Plant, property and equipment, net |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Revalued of assets |
— | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Goodwill |
— | |||||||||||||||||||||||||||||||||||||||||||||||
Trademarks, net |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Licenses and rights, net |
— | |||||||||||||||||||||||||||||||||||||||||||||||
Investment in associated companies |
( |
) | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||||||||||||||
Liabilities by segments |
( |
) |
(1) | Discontinued operations (Panama disposal) |
(2) | Discontinued operations (ClaroVTR joint venture) |
Mexico |
Telmex |
Brazil |
(2) Southern Cone |
Colombia |
Andean |
(1) Central America |
Caribbean |
Europe |
Eliminations |
Consolidated total |
||||||||||||||||||||||||||||||||||||||
Argentina | Uruguay and Paraguay |
|||||||||||||||||||||||||||||||||||||||||||||||
As of and for the year ended December 31, 2022 (in Ps.): |
||||||||||||||||||||||||||||||||||||||||||||||||
External revenues |
— | |||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenues |
— | ( |
) | — | ||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total revenues |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Operating income |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Income tax |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Equity interest in net result of associated companies |
( |
) | ( |
) | — | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent continues operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent discontinued operations |
— | — | — | — | — | — | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
Assets by segment |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Plant, property and equipment, net |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Revalued of assets |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Goodwill |
— | — | ||||||||||||||||||||||||||||||||||||||||||||||
Trademarks, net |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Licenses and rights, net |
— | |||||||||||||||||||||||||||||||||||||||||||||||
Investment in associated companies |
( |
) | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||||||||||||||
Liabilities by segments |
( |
) |
(1) | Discontinued operations (Panama disposal) |
(2) | Discontinued operations (ClaroVTR joint venture) |
Southern Cone |
||||||||||||||||||||||||||||||||||||||||||||||||
Mexico |
Telmex |
Brazil |
Argentina |
Uruguay and Paraguay |
Colombia |
Andean |
Central America |
Caribbean |
Europe |
Eliminations |
Consolidated total |
|||||||||||||||||||||||||||||||||||||
As of and for the year ended December 31, 2023 (in Ps.): |
||||||||||||||||||||||||||||||||||||||||||||||||
External revenues |
— |
|||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenues |
— |
( |
) |
— |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total revenues |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Operating income |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
Interest income |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Interest expense |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Income tax |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||
Equity interest in net result of associated companies |
( |
) |
( |
) |
— |
— |
— |
( |
) |
— |
— |
( |
) | |||||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
Assets by segment |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Plant, property and equipment, net |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Revalued of assets |
— |
— |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||
Goodwill |
— |
— |
||||||||||||||||||||||||||||||||||||||||||||||
Trademarks, net |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
Licenses and rights, net |
— |
|||||||||||||||||||||||||||||||||||||||||||||||
Investment in associated companies |
— |
— |
— |
— |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
Liabilities by segments |
( |
) |
• | What is meant by a right to defer settlement; |
• | That a right to defer must exist at the end of the reporting period; |
• | That classification is unaffected by the likelihood that an entity will exercise its deferral right; and |
• | That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification. |