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Form 6-K AMERICA MOVIL SAB DE For: Feb 11

February 11, 2022 2:24 PM EST

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF A FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2022

Commission File Number: 1-16269

 

 

AMÉRICA MÓVIL, S.A.B. DE C.V.

(Exact Name of the Registrant as Specified in the Charter)

 

 

America Mobile

(Translation of Registrant’s Name into English)

 

 

Lago Zurich 245

Plaza Carso / Edificio Telcel, Piso 16

Colonia Ampliación Granada, Miguel Hidalgo

11529 Mexico City, Mexico

(Address of Principal Executive Office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


Mexico City - América Móvil, S.A.B. de C.V. (“América Móvil”) [BMV: AMX] [NYSE: AMX, AMOV], announced today its financial and operating results for the fourth quarter of 2021.

 

 

T h e  c o n s o l i d a t e d  f i g  u r e s  e x c l u d e  T r a c F o n e  a s  i t  h a s  b e e n   d e e m e d  t o  b e  a  d i s c o n t i n u e d  o p e r a t i  o n .

4.8M wireless net adds and 72k new broadband clients

We added 4.8 million wireless subscribers in the fourth quarter, including 2.2 million postpaid subscribers, of which 1.1 million came from Brazil, 357 thousand from Colombia and 202 thousand from Austria. Our postpaid base increased 10.1% year-on-year.

In the prepaid segment, Mexico was the leader with 1.2 million net additions, followed by Colombia and Argentina with 349 thousand and 294 thousand, respectively.

On the fixed-line platform we had net disconnections of 139 thousand RGUs as disconnections of PayTV and voice accesses, 211 thousand, surpassed broadband additions of 72 thousand.

Service revenue +4.4% YoY at constant exchange rates

Fourth quarter revenue totaled 227.3 billion pesos, a 7.7% year-on-year increase in nominal peso terms, with service revenue increasing 5.4%. At constant exchange rates service revenue increased 4.4% year-on-year.

Mobile service revenue and fixed service revenue +6.9% and +0.5% YoY at constant exchange rates

At constant exchange rates, mobile and fixed-line service revenue were up 6.9% and 0.5%, respectively on an annual basis, with prepaid wireless revenue growth accelerating to 8.7% and that of corporate networks to 6.8%.

Adjusted EBITDA +7.7%YoY at constant exchange rates

EBITDA came in at 89.8 billion pesos, 16.6% more than a year before in nominal peso terms. Correcting for the sale of towers by Telmex in the quarter and an extraordinary positive impact a year before associated with the release of certain collection reserves, adjusted EBITDA totaled 82.9 billion pesos, up 8.9% relative to year-earlier quarter. At constant exchange rates, adjusted EBITDA was up 7.7% year-on-year.

Net profit of MxP 136Bn, including MxP 113Bn from discontinued operations

Our operating profit jumped 36.7% to 47.8 billion pesos. Adjusted for the aforementioned extraordinary items, our adjusted operating profit was up 20.1% in nominal peso terms to 40.9 billion pesos.

The net profit for the quarter totaled 135.6 billion pesos, it includes the operation of TracFone until its sale and the sale itself that totaled 112.7 billion pesos. Net profit for the full year was 196.0 billion pesos and 70.7 billion pesos when considering only continued operations, 136.8% more than a year before.

Shareholder distributions of MxP 65Bn and CapEx of 170Bn in the year

Our cash flow enabled us to cover capital expenditures of 170 billion pesos, shareholder distributions of 65 billion pesos and to reduce our net debt by 128 billion pesos in flow terms throughout the year.

Net debt to EBITDA at 1.23x

At the end of December our net debt—excluding leases—stood at 400.7 billion pesos, equivalent to 1.23 times EBITDAaL.

We will host our conference call to discuss 4Q21 financial and operating results on February 9th at 9:00 am Mexico City time. To access the call please log on to www.americamovil.com/investors


   

América Móvil Fundamentals

                          
           4Q21                 4Q20  
   

Earnings per Share (Mex$) (1)

     2.09                 0.56  
   

Earning per ADR (US$) (2)

     2.01                 0.54  
   

EBITDA per Share (Mex$) (3)

     1.38                 1.15  
   

EBITDA per ADR (US$)

     1.33                 1.12  
   

Net Income (millions of Mex$)

     135,589                 37,312  
   

Average Shares Outstanding (billion)

     65.03                 66.73  
   

Shares Oustanding End of Period (billion)

     64.69                 66.86  

(1) Net Income / Average Shares outstanding

(2) 20 shares per ADR

(3) EBITDA / Average Shares Outstanding

 

    

América Móvil’s Subsidiaries as of December 2021

     Country    Brand    Business    Equity
    Mexico    Telcel    wireless    100.00%
         Telmex    wireline    98.80%
         Sección Amarilla    other    100.00%
         Telvista    other    90.00%
    Argentina    Claro    wireless    100.00%
         Telmex    wireline    100.00%
    Brazil    Claro    wireless/wireline    99.60%
    Chile    Claro    wireless    100.00%
         Telmex    wireline    100.00%
    Colombia    Claro    wireless/wireline    99.40%
    Costa Rica    Claro    wireless    100.00%
    Dominicana    Claro    wireless/wireline    100.00%
    Ecuador    Claro    wireless/wireline    100.00%
    El Salvador    Claro    wireless/wireline    95.80%
    Guatemala    Claro    wireless/wireline    99.30%
    Honduras    Claro    wireless/wireline    100.00%
    Nicaragua    Claro    wireless/wireline    99.60%
    Panama    Claro    wireless/wireline    100.00%
    Paraguay    Claro    wireless/wireline    100.00%
    Peru    Claro    wireless/wireline    100.00%
    Puerto Rico    Claro    wireless/wireline    100.00%
    Uruguay    Claro    wireless/wireline    100.00%
    Netherlands    KPN    wireless/wireline    21.30%
    Austria    Telekom Austria    wireless/wireline    51.00%


Note

On November 23rd we completed the sale of TracFone Wireless. The financial statements presented in this report account for TracFone as a discontinued operation and include the net profit generated by that subsidiary up to the date of the divestment and the net gain generated by its sale, under “net income from discontinued operations”.

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

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

Relevant Events

América Móvil increased its buyback fund by MxP 26Bn

On November 22nd we held an Extraordinary Shareholders’ meeting where we received approval to increase our buyback fund by an additional amount of MXP$26 billion pesos for the period April 2021-April 2022. We also appointed Claudia Jañez Sanchez and Gisselle Morán Jiménez as independent members of América Móvil’s Board of Directors.

América Móvil completed the sale of TracFone to Verizon

On November 23rd we completed the sale of TracFone Wireless to Verizon Communications. América Móvil received US$3,625.7 million in cash and 57,596,544 shares of Verizon stock which had a closing price on that date of 51.54 dollars per share. Subject to TracFone continuing to achieve certain operating metrics (earn-out), Verizon shall pay an additional US$650 million within two years from that date.

América Móvil prepays bonds

Also in November, we called bonds with maturities in June and July of 2022 in the amount of 750 million euros and 1.6 billion dollars, respectively. The bonds were paid down in December with part of the proceeds received from the sale of TracFone.


Access Lines

2.2M postpaid and 2.5M prepaid net adds

We ended December with 287 million wireless subscribers, after net additions of 4.8 million in the fourth quarter. The latter figure comprises 2.2 million postpaid and 2.5 million prepaid net gains. Our postpaid base was up 10.1%. Brazil led the way in terms of postpaid net adds with 1.1 million subscribers followed by Colombia with 357 thousand and Austria with 202 thousand, whereas Mexico contributed with nearly half of the new prepaid subscribers, with 349 thousand coming from Colombia and 294 thousand from Argentina.

72k new broadband clients

On the fixed-line segment we gained 72 thousand new broadband clients. However, in PayTV we registered disconnections of 50 thousand in the quarter and in fixed-line voice, the number of lines came down by 161 thousand.

We ended December with a total of 367 million access lines, which includes 287 million wireless subscribers and 80.5 million fixed-line RGUs.

 

Wireless subscribers as of December 2021

 

        

Total(1) (Thousands)

 

Country

     Dec ’21        Sep ’21        Var.%        Dec ’20        Var.%  

Argentina, Paraguay and Uruguay

     26,348      25,949      1.5%        24,234      8.7%  

Austria

     7,844      7,638      2.7%        7,127      10.1%  

Brazil

     70,541      69,213      1.9%        63,140      11.7%  

Central America

     16,508      16,165      2.1%        15,044      9.7%  

Caribbean

     7,020      6,876      2.1%        6,422      9.3%  

Chile

     6,974      6,818      2.3%        6,435      8.4%  

Colombia

     35,062      34,356      2.1%        33,009      6.2%  

Eastern Europe

     14,922      15,094      -1.1%        14,737      1.3%  

Ecuador

     8,666      8,547      1.4%        7,929      9.3%  

Mexico

     80,539      79,315      1.5%        77,789      3.5%  

Peru

     12,108      11,810      2.5%        10,948      10.6%  

Total Wireless Lines

     286,531        281,779        1.7%        266,815        7.4%  

(1) Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated.

 

 

Fixed-Line and Other Accesses (RGUs) as of December 2021

 

        

Total(1) (Thousands)

 

Country 

    
Dec
’21
 
 
    
Sep
’21
 
 
     Var.%       
Dec
’20
 
 
     Var.%  

Argentina, Paraguay and Uruguay

     2,020      1,860      8.6%        1,459      38.5%  

Austria

     3,039      3,063      -0.8%        3,117      -2.5%  

Brazil

     31,287      31,600      -1.0%        32,648      -4.2%  

Central America

     4,412      4,380      0.7%        4,247      3.9%  

Caribbean

     2,608      2,630      -0.8%        2,558      1.9%  

Chile

     1,329      1,345      -1.2%        1,377      -3.5%  

Colombia

     8,876      8,789      1.0%        8,318      6.7%  

Eastern Europe

     3,043      2,992      1.7%        2,933      3.7%  

Ecuador

     535      512      4.5%        420      27.5%  

Mexico

     21,408      21,546      -0.6%        21,925      -2.4%  

Peru

     1,909      1,886      1.2%        1,739      9.8%  

Total RGUs 

     80,465        80,604        -0.2%        80,740        -0.3%  

(1) Fixed Line, Broadband and Television (Cable & DTH).

 


América Móvil Consolidated Results

Throughout the fourth quarter, concerns about the rise in inflation rates across the board kept financial markets alert about the policy implications, with U.S. 10-year Treasury yields moving around in a relatively wide band—35 basis points—but ending the quarter very much where they had started, at 1.51%. Notwithstanding the volatility in interest rates, equity markets continued to advance, with the S&P 500 delivering a 10.7% increase in the quarter. In our region of operation the Mexican peso, the Colombian peso and the Chilean peso all experienced bouts of volatility in the second half of November, with the former recovering fully by the end of the year and the other ones depreciating further.

Fourth quarter revenue totaled 227.3 billion pesos, a 7.7% year-on-year increase, with service revenue expanding 5.4% to 180 billion pesos. The consolidated figures mentioned above—and those that will be referenced below—exclude TracFone as it has been deemed to be a discontinued operation; they also exclude Argentina, which is presented under inflationary accounting. At constant exchange rates service revenue growth came in at 4.4%, a similar rate to the one posted the prior quarter: 4.8%. In the quarter, the Mexican peso appreciated vs. most other currencies in our region of operation on an annual basis, and depreciated slightly, 1.1%, vs. the U.S. dollar.

The pace of growth of mobile service revenue stayed roughly constant in the quarter, at 6.9%, with postpaid revenue expanding 5.9%—practically at the same pace as in the previous quarter—and prepaid revenue growth accelerating to 8.7% from 8.1% in the precedent quarter. Several operations including Peru, Puerto Rico, Eastern Europe, Dominican Republic, Mexico and Brazil experienced brisk mobile service revenue growth—between 8% and 12.4%, with Austria posting a 7.0% increase.

On the fixed-line platform service revenue expanded 0.5%, with revenue growth from corporate networks accelerating to 6.8% and that from broadband services decelerating to 4.0%. Both continued the trends followed throughout the year. Fixed-line voice revenue growth continued to decline, although at a slower pace than seen previously, whereas PayTV revenue kept on declining roughly at the same rhythm as it had in prior quarters.

Our Eastern European operations and Peru observed the fastest revenue growth in fixed-line services, with 13.1% and 11.8%, respectively. They were followed by Colombia and the Dominican Republic, with 7.1% and 6.2%.

Most of our operations—and four of the top five by revenue—presented service revenue increases in both the mobile and the fixed-line platforms, helping us leverage fixed costs.

EBITDA came in at 89.8 billion pesos in the fourth quarter. This figure reflects one-off items including the impact of the sale of towers by Telmex in the quarter and the release of certain collection reserves a year before that also took place in Mexico. Our adjusted EBITDA, correcting for these factors, totaled 82.9 billion pesos, representing an 8.9% increase from the year-earlier quarter. At constant exchange rates, adjusted EBITDA was up 7.7% year-on-year, slightly more than the 7.2% increase observed in the third quarter. The adjusted EBITDA margin rose to 37.6% from 36.0% in the year-earlier quarter.

The Dominican Republic, Central America and our European operations exhibited the fastest pace of EBITDA growth, at 12.4%, 11.1% and 9.7%, respectively.

Our operating profit jumped 36.7% to 47.8 billion pesos. Adjusted for the aforementioned extraordinary items, our adjusted operating profit reached 40.9 billion pesos and was up 20.1% in Mexican peso terms and 15.6% at constant exchange rates. It helped generate—after accounting for 19.7 billion pesos in comprehensive financing costs—a net profit from continuing operations of 22.9 billion pesos.

The net profit obtained through both the operation of TracFone until its sale on November 23rd and the sale itself is booked under the line item of Net Income from Discontinued Operations. It totaled 112.7 billion pesos. Together with the net income of our continuing operations it resulted in a net profit of 135.6 billion pesos in the fourth quarter, which was equivalent to 2.1 peso cents per share and 2.0 dollar cents per ADR. For the full year 2021 our net income stood at 196.0 billion pesos, more than four times larger than the one observed the prior year.

In 2021 our operating cash flow allowed us to fund 170 billion pesos of capital expenditures, 65 billion pesos in shareholder distributions and to reduce our net debt by 128 billion pesos in flow terms. Excluding leases, our net debt ended the year at 400.7 billion pesos, a 137.2 billion pesos reduction from the level outstanding at the end of 2020. Net debt excluding leases was equivalent to 1.23x EBITDAaL at the close of 2021.


In our net debt calculation we are considering as cash equivalent—under securities available for sale—stock received from Verizon as part of the payment for TracFone. At the end of the year the value of the Verizon stock was 61.6 billion pesos; also booked under the same line item is the KPN stock we own, valued at 56.1 billion pesos.

 

América Móvil’s Income Statement Millions of Mexican pesos

 

       4Q21        4Q20        Var.%        Jan-Dec 21        Jan-Dec 20        Var.%  

Service Revenue

     179,682        170,406        5.4%        699,418        702,458        -0.4%  

Equipment Revenue

     38,485        38,664        -0.5%        141,290        131,223        7.7%  

Total Revenue(1)

     227,318        211,145        7.7%        855,535        839,707        1.9%  

Cost of Service

     55,019        53,525        2.8%        218,839        220,170        -0.6%  

Cost of Equipment

     34,173        34,164        0.0%        122,220        114,712        6.5%  

Selling, General & Administrative Expenses

     47,295        44,977        5.2%        180,838        191,902        -5.8%  

Others

     1,020        1,441        -29.2%        4,877        4,738        2.9%  

Total Costs and Expenses 

     137,508        134,107        2.5%        526,775        531,521        -0.9%  
                                                       

EBITDA 

     89,810        77,038        16.6%        328,760        308,186        6.7%  

% of Total Revenue

     39.5%        36.5%                 38.4%        36.7%           

Adjusted EBITDA(2)

     82,867        76,096        8.9%        321,817        307,244        4.7%  

% of Total Revenue

     37.6%        36.0%                 37.9%        36.6%           

Depreciation & Amortization

     42,000        42,063        -0.2%        162,627        162,682        0.0%  

EBIT 

     47,811        34,975        36.7%        166,133        145,503        14.2%  

% of Total Revenue

     21.0%        16.6%                 19.4%        17.3%           

Net Interest Expense

     7,795        6,950        12.2%        32,190        33,599        -4.2%  

Other Financial Expenses

     1,793        13,888        -87.1%        14,250        -1,293        n.m.  

Foreign Exchange Loss

     10,155        -36,244        128.0%        17,046        65,366        -73.9%  

Comprehensive Financing Cost (Income) 

     19,743        -15,406        228.2%        63,486        97,673        -35.0%  

Income & Deferred Taxes

     5,263        17,192        -69.4%        28,145        13,509        108.3%  

Net Income before Minority Interest and Equity Participation in Results of Affiliates

     22,804        33,188        -31.3%        74,501        34,321        117.1%  

Equity Participation in Results of Affiliates

     -5        -4        -30.7%        114        -287        139.7%  

Minority Interest

     102        -456        122.5%        -3,903        -4,174        6.5%  

Net Income from Continued Operations

     22,902        32,729        -30.0%        70,712        29,860        136.8%  

Net Income from Discontinued Operations (TracFone) 

     112,687        4,583        n.m.        125,313        16,993        n.m.  

Net Income

     135,589        37,312        263.4%        196,025        46,853        318.4%  

(1)Total revenue include Other Revenue.

(2) Does not include the sale of towers in 4Q21 and the release of a collection provision in 2020 in Telmex.

n.m. Not meaningful.

 

 

 


    Balance Sheet - América Móvil Consolidated Millions of Mexican Pesos

 

       Dec ’21        Dec ’20        Var.                   Dec ’21        Dec ’20        Var.

    Current Assets

                                     

Current

Liabilities

                          

    Cash, Marketable Securities & Other Short Term Investments

     156,383        86,014      81.80            Short Term Debt(1)      145,142        148,083        -2.00

    Accounts Receivable

     212,339        228,906        -7.20            Lease-Related Debt      27,632        25,068        10.20

    Other Current Assets

     10,611        10,385        2.20            Accounts Payable      255,733        237,287        7.80

    Inventories

     24,185        30,377        -20.40            Other Current Liabilities      99,640        96,872        2.90
       403,518        355,683        13.40 %                    528,148        507,311        4.10 % 
                                                                    

    Non Current

    Assets

                                     

Non Current

Liabilities

                          

    Plant & Equipment, gross

     1,408,998        1,355,801      3.90            Long Term Debt      418,807        480,300        -12.80

      -Depreciation

     677,801        632,871        7.10            Lease-Related Debt      71,022        84,259        -15.70

    Plant & Equipment, net

     731,197        722,930        1.10            Other Liabilities      211,766        238,061        -11.00

    Rights of Use

     90,372        101,977        -11.40                   701,595        802,620        12.60 % 

    Investments in Affiliates and Other Investments

     9,947        6,370        56.20                                        
                                                                    

    Deferred Assets

                                                                  

    Goodwill (Net)

     136,578        143,053        -4.50                                        

    Intangible Assets

     143,226        133,457        7.30            Shareholder’s Equity      457,644        315,118        45.20

    Deferred Assets

     172,549        161,579        6.80                                        
                                                                    

    Total Assets

     1,687,387        1,625,048         3.80 %            

Total Liabilities

and Equity

     1,687,387        1,625,048        3.80 % 

(1)Includes current portion of Long Term Debt.

 

    Summary Cash Flow Millions of Mexican pesos  
         2021          2020  

    Funds from Operations

       285,661          232,335  

    Capital Expenditures

       170,336          129,555  

    Free Cash Flow

       115,324          104,780  

    Dividends and Share Buybacks

       61,947          12,619  

    Sale of Ownership Interest

       -120,161          -  

    Net Debt Amortizations

       128,133          64,877  

    Pension Liabilities

       26,632          18,246  

    Other

       16,508          9,038  

*There is approximately two billion pesos directed to the provisioning to the early retirement plans in Austria that should be substracted from the Free Cash Flow in 2021 and should be added back to the funds from operations in 2020.


Mexico

Telcel added 1.2M wireless subscribers

Telcel finished the year with 80.5 million wireless subscribers, 3.5% more than a year before, after 1.2 million net additions in the quarter, nearly all of them prepaid subscribers. Our postpaid base remained practically unchanged from a year before but prepaid growth continued on its strong growth trend that began in the third quarter of 2020. The coverage and quality of our network and our focus on customer experinece allowed us to maintained a positive balance from mobile number portability. Telmex had just over ten million broadband accesses and 11.4 million land-lines at the close of the year.

Service revenue was up 6.4% YoY

Our revenue totaled 82.7 billion pesos in the fourth quarter, 11.0% more than a year before. This figure reflects solid service revenue growth of 6.4%, equipment revenue that declined 13.9% annually given the shortage of handsets during the Holiday season and extraordinary revenue in the amount of 6.9 billion pesos, mostly to do with the sale of tower by Telmex.

Wireless service +9.1% YoY/Fixed-line services +1.3% YoY

Wireless service revenue were 9.1% higher than a year before as prepaid revenue finished the quarter on a strong note, rising 12.5%, with postpaid revenue increasing 4.8% on the back of a 6.2% increase in ARPU. Fixed-line service revenue came in 1.3% above the year-earlier quarter supported by corporate networks revenue that rose 5.5% and broadband revenue that were up 3.0%. We have seen a good take-up of the content bundled in our broadband plans, which include popular OTTs and streaming options.

Adjusted EBITDA up 8.0% YoY

EBITDA came in at 36.8 billion pesos in the fourth quarter. Correcting for extraordinary items—the sale of towers in this quarter and the release of a collection provision a year earlier—EBITDA was up 8.0% year-on-year on solid revenue growth and strict cost discipline. The adjusted margin, 39.4% (44.5% reported), was up 2.3 percentage points from a year before.

 

    INCOME STATEMENT - Mexico Millions of MxP  
         4Q21          4Q20          Var.%  

Total Revenue(1)

       82,741          74,573          11.0%  

Total Service Revenue

       57,781          54,307          6.4%  

Total Equipment Revenue

       17,063          19,814          -13.9%  

Wireless Revenue

       55,491          55,084          0.7%  

Service Revenue

       38,618          35,395          9.1%  

Equipment Revenue

       16,873          19,689          -14.3%  

Fixed Line Revenue

       19,354          19,037          1.7%  

Service Revenue

       19,163          18,912          1.3%  

Equipment Revenue

       191          125          53.0%  

EBITDA 

       36,787          28,575          28.7%  

% total revenue

       44.5%          38.3%             

Adjusted EBITDA(2)

       29,844          27,633          8.0%  

% total revenue

       39.4%          37.1%             

EBIT 

       28,766          21,343          34.8%  

% total revenue

       34.8%          28.6%             

(1) Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

(2) Does not include the sale of towers in 4Q21 and the release of a collection provision in 2020 in Telmex.


    Mexico Operating Data  
         4Q21          4Q20          Var.%  

    Wireless Subscribers (thousands)

       80,539          77,789          3.5%  

Postpaid

       14,553          14,537          0.1%  

Prepaid

       65,986          63,253          4.3%  

ARPU (MxP)

       163          154          6.2%  

Churn (%)

       3.4%          3.6%          (0.2)  

Revenue Generating Units (RGUs)(1)

       21,408          21,925          -2.4%  

Fixed Lines

       11,371        11,914        -4.6%  

Broadband

       10,037        10,011        0.3%  

(1)Fixed Line and Broadband.

Brazil

1.1M postpaid net adds

We continued to lead the growth of the postpaid market in the fourth quarter, adding 1.1 million clients, and also gained 196 thousand prepaid subscribers, taking our wireless subscriber base to 70.5 million, 11.7% higher than a year before. Throughout the quarter, we had a positive balance from mobile number portability as clients value the speed and quality of our network, as well as the pricing of our plans.

Claro is the market leader in the PayTV and broadband segments

Fixed-line RGUs reached 31.3 million by year-end including 12.3 million PayTV units and 9.8 million broadband accesses. Claro is the market leader in both segments. In the former, we have followed our strategy to continue to expand our content offer and our interface allows for easy access OTT and VOD. As regards broadband services, our network is capable of providing 1Gbps speeds in over 300 cities.

Mobile service revenue +8.0% YoY, prepaid revenue rising +9.4%

Fourth quarter revenue increased 0.9% year-on-year to 10.2 billion Reais with service revenue up 1.7%; its pace of growth has accelerated quarter after quarter since the beginning of the year. Mobile service revenue increased 8.0% with prepaid revenue rising 9.4% and that from postpaid expanding 7.6%. Fixed-line service revenue were down 3.4%, a smaller pace of decline than was observed throughout the year. The revenue decline in the PayTV segment and in fixed-line voice, 12.9% and 9.6%, respectively, was for the most part offset by 4.1% growth in broadband revenue and 9.6% in that steming from corporate networks.

EBITDA +3.6% YoY with EBITDA margin at 41.5%

EBITDA for the period, 4.2 billion Reais, was 3.6% higher than a year before, with the margin reaching 41.5% helped along by some non-recurring items that amounted to slightly more than 100 million Reais.

We were granted additional spectrum for full 5G capabilities

During the quarter an auction was held by which we were granted the use of additional spectrum. We acquired four national blocks of 80MHz and four national blocks of 20MHz in the 3.5GHz band; five regional blocks of 50MHz in the 2.3GHz frequency and ten national blocks of 200MHz in the 26GHz band. This spectrum is meant to be used for full 5G capabilities that will strengthen our competitive position and our strategy to remain the strongest integrated network in Brazil.


    INCOME STATEMENT - Brazil Millions of BrL                                 
         4Q21          4Q20          Var.%  

Total Revenue(1)

       10,169          10,075          0.9%  

Total Service Revenue

       9,737          9,573          1.7%  

Wireless Revenue

       5,037          4,788          5.2%  

Service Revenue

       4,644          4,300          8.0%  

Equipment Revenue

       393          488          -19.4%  

Fixed Line Revenue

       5,094          5,273          -3.4%  

EBITDA

       4,220          4,073          3.6%  

% total revenue

       41.5%          40.4%             

EBIT

       1,644          961          71.0%  

    % total revenue

       16.2%          9.5%             

(1)Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

 

    Brazil Operating Data   
         4Q21          4Q20          Var.%  

Wireless Subscribers (thousands)

       70,541          63,140          11.7%  

Postpaid

       41,400          35,642          16.2%  

Prepaid

       29,141          27,498          6.0%  

ARPU (BrL)

       22          24          -7.4%  

Churn (%)

       3.10%          3.40%          (0.4)  

Revenue Generating Units (RGUs)(1)

       31,287          32,648          -4.2%  

(1)Fixed Line, Broadband and Television.

Colombia

We had 357k postpaid and 349k prepaid net adds

Our wireless subscriber base topped 35 million at the end of the year after net additions of 706 thousand subscribers in the fourth quarter. Postpaid net additions reached a new record, 357 thousand, while prepaid gains of 349 thousand, although lower than a year before, were 75% higher sequentially. On the fixed-line segment, RGUs were up 6.7% from a year before, to 8.9 million, having added 31 thousand PayTV units, 53 thousand land-lines and two thousand new broadband connections in the quarter.

In a competitive landscape, wireless service revenue +1.3% YoY

Fourth quarter revenue increased 7.9% from a year before to 3.9 trillion Colombian pesos, with service revenue rising 3.5% and equipment revenue jumping 23.9%. In the midst of changes in the competitive landscape that have brought about aggressive promotions in the mobile segment, we registered wireless service revenue growth of 1.3% with prepaid revenue increasing 1.8% and postpaid revenue up 1.0%. As can be inferred by the positive results from mobile number portability of the fourth quarter, our clients greatly value Claro’s superior coverage, customer care and competitive pricing.

Fixed-line service revenue +7.1% YoY

Fixed-line service revenue were 7.1% higher than in the year-earlier quarter. Corporate networks led the way with their revenue expanding 11.7% followed by PayTV services—whose revenue rose 5.7%—, by voice revenue, up 4.1% and by broadband revenue that increased 3.8%.


EBITDA +8.2% YoY and EBITDA margin at 43.7% of revenue

Notwithstanding important competitive pressures in both the mobile and fixed-line segments, we increased our EBITDA by 8.2% over the prior year—slightly more than the 7.8% rate that we had posted the prior quarter—to 1.7 trillion Colombian pesos. The margin for the period stood at 43.7% of revenue.

 

    INCOME STATEMENT - Colombia Billions of COP                                 
         4Q21          4Q20          Var.%  

Total Revenue(1)

       3,857          3,574          7.9%  

Total Service Revenue

       2,858          2,760          3.5%  

Wireless Revenue

       2,639          2,439          8.2%  

Service Revenue

       1,700          1,679          1.3%  

Equipment Revenue

       939          760          23.5%  

Fixed Line Revenue

       1,186          1,102          7.7%  

EBITDA

       1,686          1,558          8.2%  

% total revenue

       43.7%          43.6%             

EBIT

       1,042          898          16.0%  

% total revenue

       27.0%          25.1%             

(1)Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

 

    Colombia Operating Data                                 
         4Q21          4Q20          Var.%  

Wireless Subscribers (thousands)(1)

       35,062          33,009          6.2%  

Postpaid

       8,749          7,765          12.7%  

Prepaid

       26,313          25,244          4.2%  

ARPU (COP)

       16,432          17,407          -5.6%  

Churn (%)

       4.40%          4.40%          (0.0)  

Revenue Generating Units (RGUs)(2)

       8,876          8,318          6.7%  

(1)Due to differences in the policy for accounting active subscribers, the figures in this report are different from those published by the Ministry of Communications of Colombia (MinTIC).

(2)Fixed Line, Broadband and Television.

Peru

Wireless subscribers +10.6% and fixed-line RGUs +9.8%

After net additions of 298 thousand in the fourth quarter, we ended 2021 with 12.1 million wireless subscribers, 10.6% more than a year before. Fixed-line RGUs, 1.9 million, were up 9.8% on the back of broadband and IPTV access growth.

Wireless service revenue +12.4%/Fixed service revenue +11.8%

Our fourth quarter revenue totaled 1.7 billion Soles, 13.1% more than a year before, with service revenue expanding 12.2%; 12.4% in the mobile segment—with postpaid revenue jumping 17.0%—and 11.8% on the fixed-line platform. Broadband services and corporate networks drove revenue growth at 17.0% and 9.4%, respectively.

EBITDA was down 2.5% YoY due to intense commercial activity

EBITDA came in at 534 million Soles in the quarter. It was 2.5% below that of the prior year on account of more intense commercial activity. The EBITDA margin was equivalent to 32.0% of revenue.


    INCOME STATEMENT - Perú Millones de Soles                                 
        4Q21        4Q20        Var.%  

Total Revenue(1)

       1,669          1,476          13.1%  

Total Service Revenue

       1,154          1,028          12.2%  

Wireless Revenue

       1,358          1,183          14.8%  

Service Revenue

       861          767          12.4%  

Equipment Revenue

       496          416          19.3%  

Fixed Line Revenue

       292          261          11.8%  

EBITDA

       534          547          -2.5%  

% total revenue

       32.0%          37.1%             

EBIT

       216          249          -13.3%  

% total revenue

       12.9%          16.9%             

(1)Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

 

    Peru Operating Data                                  
        4Q21        4Q20        Var.%  

Wireless Subscribers (thousands)

       12,108          10,948          10.6%  

Postpaid

       5,108          4,215          21.2%  

Prepaid

       7,001          6,733          4.0%  

ARPU (Sol)

       24          24          0.8%  

Churn (%)

       4.10%          3.60%          0.5  

Revenue Generating Units (RGUs)(1)

       1,909          1,739          9.8%  

(1)Fixed Line, Broadband and Television.

Ecuador

Fixed line RGUs were up 27.5% YoY

At the end of the year our wireless subscriber base reached 8.7 million clients after net gains of 119 thousand in the last quarter. Fixed-line RGUs, 535 thousand accesses, exceeded by 27.5% those of a year before.

Service revenue declined 5.4% YoY

At 259 million dollars, fourth quarter revenue came in 1.1% below the year-earlier quarter. Equipment revenue were 50.6% higher than a year before while service revenue declined 5.4%—which compares to a decline of 8.1% for the full year. Postpaid service revenue slowed substantially their pace of decline: although down 7.2%, they improved from the -18.1% pace observed the prior quarter. The decline of prepaid service revenue, off -5.4%, is reflective of the economic downturn in the country. In the fixed-line segment, service revenue growth accelerated from 1.4% in the third quarter to 3.0% in the current period as a result of faster broadband revenue growth.

On cost reduction control, our EBITDA was up 7.2% YoY

In light of the difficult economic situation, we have consistently worked on cost reductions and control, which contributed to our EBITDA for the quarter rising 7.2% relative to the prior year. The EBITDA margin, 46.6%, was 3.6 percentage points higher than a year before.


    INCOME STATEMENT - Ecuador Millions of Dollars                                 
        4Q21        4Q20        Var.%  

Total Revenue(1)

       259          261          -1.1%  

Total Service Revenue

       225          238          -5.4%  

Wireless Revenue

       231          234          -1.7%  

Service Revenue

       199          213          -6.4%  

Equipment Revenue

       31          22          45.4%  

Fixed Line Revenue

       28          26          8.4%  

EBITDA

       120          112          7.2%  

% total revenue

       46.6%          43.0%             

EBIT

       71          57          23.8%  

% total revenue

       27.4%          21.9%             

(1)Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

 

    Ecuador Operating Data                                  
        4Q21        4Q20        Var.%  

Wireless Subscribers (thousands)

       8,666          7,929          9.3%  

Postpaid

       2,089          2,005          4.2%  

Prepaid

       6,576          5,925          11.0%  

ARPU (US$)

       8          9          -14.4%  

Churn (%)

       3.30%          4.20%          (0.8)  

Revenue Generating Units (RGUs)(1)

       535          420          27.5%  

(1)Fixed Line, Broadband and Television.

Chile

103k postpaid net adds

Our wireless subscriber base ended 2021 just shy of seven million clients after incorporating net gains of 156 thousand subs in the fourth quarter, of which 103 thousand were postpaid subscribers. On the fixed-line platform we had 1.3 million RGUs which comprise 515 thousand broadband accesses and 502 thousand PayTV units.

Service revenue were down 2.6% YoY

Fourth quarter revenue rose 2.7% year-on-year to 208.7 billion Chilean pesos on the back of equipment revenue that rose 22.3% and service revenue that declined 2.6%. Wireless service revenue were down 2.9% partly as a result of the termination of a roaming agreement with one of our competitors, in absence of which they would have increased 1.2%. We continue to see migration from prepaid to postpaid as the latter has become much more attractive in recent quarters; postpaid revenue now represent 92% of our mobile service revenue. Fixed-line service revenue were down 2.3% following the disconnection of nearly 17 thousand RGUs and pricing pressures in what has become a very competitive market for broadband services.

EBITDA was down 14.8% YoY

EBITDA of 38 billion Chilean pesos in the quarter was 14.8% below than the one registered a year before. The EBITDA margin for the period stood at 18.2% of revenue.    


    INCOME STATEMENT - Chile Millions of ChP                               
      4Q21        4Q20        Var.%  

Total Revenue(1)

     208,718          203,138          2.7%  

Total Service Revenue

     157,743          161,990          -2.6%  

Wireless Revenue

     133,992          127,580          5.0%  

Service Revenue

     84,882          87,441          -2.9%  

Equipment Revenue

     49,110          40,139          22.3%  

Fixed Line Revenue

     72,861          74,549          -2.3%  

EBITDA

     38,082          44,690          -14.8%  

% total revenue

     18.2%          22.0%             

EBIT

     -162        -10,924        98.5%  

% total revenue

     -0.1%          -5.4%             

(1)Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

 

    Chile Operating Data                               
      4Q21        4Q20        Var.%  

Wireless Subscribers (thousands)

       6,974              6,435          8.4%  

Postpaid

     2,861          2,381          20.1%  

Prepaid

     4,113          4,054          1.5%  

ARPU (ChP)

     4,325          4,906          -11.8%  

Churn (%)

     4.30%          7.20%          (3.0)  

Revenue Generating Units (RGUs)(1)

     1,329        1,377        -3.5%  

(1)Fixed Line, Broadband and Television.

Argentina

For comparison purposes all comments in this section related to annual variations of the presented period for Argentina refer to figures in constant peso terms, that is, adjusted for inflation in accordance to NIC 29. Information for Uruguay and Paraguay is not presented in the table.

358k wireless net adds, almost 80% more than a year before

We ended the year with 23.4 million wireless subscribers in Argentina, 8.9% more than a year before. We added 358 thousand subscribers in the quarter—almost 80% more than a year before—including 64 thousand postpaid subscribers. In addition, we had 1.7 million fixed-line RGUs, up 47.4% relative to 2020, after net additions of 64 thousand broadband connections and 32 thousand PayTV units. We have been focused on subscriber retention and on leveraging the strengths of our network, and have greatly benefited from mobile number portability.

Access growth and pricing strategy supported service revenue growth of 1.1% YoY

Solid subscriber and RGU growth, coupled with a good pricing strategy allowed for service revenue growth of 1.1% in real—after inflation—terms. Mobile service revenue were slightly higher than a year before with postpaid revenue rising 1.0% and prepaid revenue contracting 3.2% in real terms. Fixed-line service revenue—which already represent 14% of our total service revenue—increased 7.9% in real terms buoyed by PayTV revenue that were 2.5 times greater than those of obtained in the precedent year and by broadband services, whose revenue rose 13.6% in real terms.

EBITDA margin rose slightly to 38.9%

The quarter’s EBITDA came in at 17.4 billion Argentinean pesos; it was 1.0% lower in real terms from a year before, although the EBITDA margin rose slightly, 40 basis points, to 38.9%.


    INCOME STATEMENT - Argentina Millions of constant ARS of December 2021

 

      4Q21        4Q20        Var.%  

Total Revenue(1)

     44,677          45,561          -1.9%  

Total Service Revenue

     35,323          34,933          1.1%  

Wireless Revenue

     39,502          40,441          -2.3%  

Service Revenue

     30,276          30,257          0.1%  

Equipment Revenue

     9,226          10,183          -9.4%  

Fixed Line Revenue

     5,047          4,676          7.9%  

EBITDA

     17,382          17,556          -1.0%  

% total revenue

     38.9%          38.5%             

EBIT

     13,964          13,337          4.7%  

% total revenue

     31.3%          29.3%             

(1)Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

 

    Argentina Operating Data                               
      4Q21        4Q20        Var.%  

Wireless Subscribers (thousands)

     23,406          21,494          8.9%  

Postpaid

     8,788          8,430          4.2%  

Prepaid

     14,619          13,065          11.9%  

ARPU (ARS)

     432          306          40.9%  

Churn (%)

     1.30%          1.30%          (0.0)  

Revenue Generating Units (RGUs)(1)

     1,694        1,150        47.4%  

(1)Fixed Line, Broadband and Television.

Central America

343k wireless net adds

In the fourth quarter our operations in Central America added 343 thousand subscribers, bringing our wireless subscriber base to 16.5 million at the end of 2021, 9.7% more than a year before. Most of the growth stems from prepaid net additions. On the fixed-line segment, we ended December with 4.4 million RGUs, a 3.9% year-on-year increase.

Service revenue expanded 3.4% YoY

Total revenue of 613 million dollars in the quarter were up 6.3% from a year before with service revenue that expanded 3.4%; in line with the figure for the full year. Wireless service revenue rose 3.9% with prepaid revenue up 8.7%. Fixed-line service revenue increased 2.4%, in line with the rate posted the prior quarter, as broadband revenue climbed 6.2%—and PayTV revenue accelerated to a 2.8% pace.

EBITDA was up 11.1% YoY

EBITDA jumped 11.1% from the year-earlier quarter to 267 million dollars as a result of a sharp decline in bad-debt provisions given a good collection record and, to a lesser extent, a reduction in service costs. The margin for the period was equivalent to 43.6% of revenue, 1.9 percentage points higher than a year before.    


    INCOME STATEMENT - Central America Millions of Dollars

 

      4Q21        4Q20        Var.%  

Total Revenue(1)

     613          577          6.3%  

Total Service Revenue

     529          512          3.4%  

Wireless Revenue

     417          386          8.1%  

Service Revenue

     346          333          3.9%  

Equipment Revenue

     71          52          35.2%  

Fixed Line Revenue

     190          184          3.1%  

EBITDA

     267          240          11.1%  

% total revenue

     43.6%          41.7%             

EBIT

     123        32            288.9%  

% total revenue

     20.1%          5.5%             

(1)Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

 

    Central America Operating Data                               
      4Q21        4Q20        Var.%  

Wireless Subscribers (thousands)

     16,508          15,044          9.7%  

Postpaid

     2,384          2,283          4.4%  

Prepaid

     14,124          12,761          10.7%  

ARPU (US$)

     7          8          -5.8%  

Churn (%)

     5.90%          5.40%          0.5

Revenue Generating Units (RGUs)(1)

     4,412        4,247        3.9%  

(1)Fixed Line, Broadband and Television.

Caribbean

155k wireless net adds in Dominicana

We continued to experience solid growth in Dominicana gaining 155 thousand clients in the fourth quarter, with its subscriber base reaching 6.0 million clients, 9.9% more than at the end of 2020. Fixed-line RGUs increased 4.1% over the year and were just shy of two million; growth stems mostly from broadband accesses as we added 13 thousand accesses in the quarter.

Service revenue +8.0% and EBITDA +12.4% in Dominicana

Revenue in Dominicana, 14.3 billion Dominican pesos in the fourth quarter, were 8.1% higher than a year before, with service revenue rising 8.0%. Service revenue on the mobile platform expanded somewhat faster than those on the fixed-line, 9.3% vs. 6.2%, but it is of note that broadband service revenue growth was fastest in Dominicana than in any other of our operations. On the back of greater operating leverage, fourth quarter EBITDA rose 12.4% to 7.4 billion Dominican pesos with the margin climbing two percentage points to 52% of revenue from the year-earlier quarter.

We disconnected 12k wireless subscribers

In Puerto Rico, we ended December with just over one million wireless subscribers—after net disconnections of 12 thousand subscribers—and 616 thousand fixed-line RGUs. We had disconnections of 39 thousand fixed-line RGUs in the quarter including 23 thousand clients that were added in prior quarters as part of government aid programs.


Adjusted service revenue +13.8% YoY in Puerto Rico

In Puerto Rico, fourth quarter revenue were 0.8% higher than a year before with service revenue almost flat. The annual comparison is affected by revenue booked in the fourth quarter of 2020 that were linked to federal funds granted to the population which have been discontinued; adjusting for that effect service revenue would have grown 13.8%. In particular fixed-line service revenue would have grown 18.7% instead of the reported decline of 13.9%. EBITDA was down 3.2% year-on-year on account of the revenue decline and higher handset subsidies.

 

    INCOME STATEMENT - Caribbean Millions of Dollars                               
      4Q21        4Q20        Var.%  

Total Revenue(1)

     484          458          5.8%  

Total Service Revenue

     412          389          6.0%  

Wireless Revenue

     311          282          10.2%  

Service Revenue

     248          222          11.8%  

Equipment Revenue

     63          60          4.2%  

Fixed Line Revenue

     168          170          -1.4%  

EBITDA

     180          164          9.6%  

% total revenue

     37.1%          35.8%             

EBIT

     95        81        17.4%  

% total revenue

     19.7%          17.7%             

(1)Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

 

    Caribbean Operating Data                               
      4Q21        4Q20        Var.%  

Wireless Subscribers (thousands)

     7,020          6,422          9.3%  

Postpaid

     2,134          2,066          3.3%  

Prepaid

     4,886          4,357          12.1%  

ARPU (US$)

     12          12          1.7%  

Churn (%)

     3.20%          3.30%          (0.1)  

Revenue Generating Units (RGUs)(1)

     2,608        2,558        1.9%  

(1)Fixed Line, Broadband and Television.

Austria

Postpaid base up 13.1% YoY

We finished December with 7.8 million wireless subscribers, 10.1% more than a year before after 206 thousand net subscriber additions, practically all of them postpaid. We continued to experience migration from prepaid to postpaid and strong demand for mobile WiFi routers. Our postpaid subscriber base increased 13.1% while the prepaid base declined 6.6%. Fixed-line RGUs topped three million after net disconnections of 25 thousand, of which 13 thousand were voice lines, 8.5 thousand were low-bandwidth accesses and three thousand PayTV units.

Mobile service revenue +7.0% on strong demand for 5G services

Total revenue of 682 million Euros were flat year-on-year but service revenue increased 1.4%. On the mobile division service revenue grew 7.0% on the back of strong demand for 5G services including mobile WiFi, the recovery of roaming revenue as traveling resumed, and price adjustments. However, fixed-line service revenue declined 2.2% due to the disconnection of fixed-line RGUs as the additional revenue on bandwidth upgrades and price adjustments failed to compensate the revenue loss from land-line disconnections and lower fixed-line voice traffic.


EBITDA before restructuring charges 7.3% YoY

EBITDA before restructuring charges grew 7.3% (+8.7% reported) on the back of cost reductions, especially bad-debt provisions and those associated with network maintenance and corporate networks. The margin for the period was 34.3%, 2.8 percentage points higher than a year before.

 

    INCOME STATEMENT - Austria Millions of Euros                               
      4Q21        4Q20        Var.%  

Total Revenue(1)

     682          682          0.0%  

Total Service Revenue

     596          588          1.4%  

Wireless Revenue

     310          301          2.7%  

Service Revenue

     251          234          7.0%  

Equipment Revenue

     59          67          -12.1%  

Fixed Line Revenue

     358          367          -2.4%  

EBITDA

     234          215          8.7%  

% total revenue

     34.3%          31.6%             

Adjusted EBITDA(1)

     255          238          7.3%  

% total revenue

     37.4%          34.9%             

EBIT

     95        83        14.1%  

% total revenue

     13.9%          12.2%             

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

(1)Total revenue include other income.

(2)Does not include restructuring charges in Austria.

 

    Austria Operating Data                               
      4Q21        4Q20        Var.%  

Wireless Subscribers (thousands)(1)

     7,844          7,127          10.1%  

Postpaid

     6,818          6,029              13.1%  

Prepaid

     1,026          1,098          -6.6%  

ARPU (euros)

     17          15          6.5%  

Churn (%)

     1.00%            0.90%          0.1

Revenue Generating Units (RGUs)(2)

     3,039        3,117        -2.5%  

(1)Includes A1 Digital subscribers.

(2)Fixed Line, Broadband and Television.

Other European

24k new PayTV units and 27k new broadband acccesses

Altogether, our operations in Eastern Europe had a total of 14.9 million wireless subscribers after net disconnections of 172 thousand. Only Slovenia and Serbia obtained subscriber gains. On the fixed-line segment, we ended December with just over three million fixed-line RGUs including 1.4 million PayTV units and 1.2 million broadband connections. In the last quarter we added 24 thousand PayTV units and 27 thousand broadband accesses.

Fixed-line service +13.1% YoY/Mobile service +9.5% YoY

Revenue jumped 11.0% to reach 566 million Euros with service revenues rising 10.4% and equipment revenue that were up 18.4%. Growth was higher in the fixed-line segment where service revenue expanded 13.1%—the most rapid pace within America Movil—with great dynamism by corporate networks and IT solutions (up 37.9%) and solid growth of PayTV and broadband, up 7.5% and 7.0%, respectively. On the mobile platform, service revenue were 9.5% higher than a year before—second fastest in our group—with postpaid revenue rising 10.2% on solid demand for mobile WiFi and overall demand for 5G plans in Bulgaria.


EBITDA +10.1% YoY at constant exchange rates

EBITDA was up 8.8% to 178 million Euros, yet at constant currency terms EBITDA growth was 10.1%. The margin was equivalent to 31.4% of revenue. All the operations posted EBITDA growth on the back of strong operational trends, especially Bulgaria.

 

    INCOME STATEMENT - Other European Millions of Euros

 

      4Q21        4Q20        Var.%  

Total Revenue(1)

     566          510          11.0%  

Total Service Revenue

     420          380          10.4%  

Wireless Revenue

     429          391          9.7%  

Service Revenue

     311          284          9.5%  

Equipment Revenue

     118          107          10.3%  

Fixed Line Revenue

     127          104          21.9%  

EBITDA

     178          164          8.8%  

% total revenue

     31.4%          32.1%             

EBIT

     78        62              25.0%  

% total revenue

     13.7%          12.2%             

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

(1)Revenue reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenue include other income.

 

    Other European Operating Data

      4Q21        4Q20        Var.%  

Wireless Subscribers (thousands)

     14,922          14,737          1.3%  

Postpaid

     12,073          11,794          2.4%  

Prepaid

     2,849          2,944          -3.2%  

ARPU (euros)

     7          6          7.2%  

Churn (%)

     2.10%          1.60%          0.5

Revenue Generating Units (RGUs)(1)

     3,043        2,933        3.7%  

(1)Fixed Line, Broadband and Television.


Exchange Rates Local Currency Units per Mexican Peso                               
      4Q21        4Q20        Var.%  

Euro

                              

End of Period

     0.0427        0.0410        4.0%  

Average

     0.0421        0.0406        3.7%  

U.S.

                              

End of Period

     0.0486        0.0501        -3.1%  

Average

     0.0482        0.0484        -0.5%  

Brazilean Real

                              

End of Period

     0.2711        0.2605        4.1%  

Average

     0.2689        0.2618        2.7%  

Argentinean Peso

                              

End of Period

     4.9904        4.2183        18.3%  

Average

     4.8418        3.8772        24.9%  

Chilean Peso

                              

End of Period

     41.0372        35.6389        15.1%  

Average

     39.7658        36.8739        7.8%  

Colombian Peso

                              

End of Period

     193.4151        172.0664        12.4%  

Average

     186.9188        177.4269        5.3%  

Guatemalan Quetzal

                              

End of Period

     0.3750        0.3907        -4.0%  

Average

     0.3725        0.3774        -1.3%  

Peruvian Sol

                              

End of Period

     0.1942        0.1817        6.9%  

Average

     0.1943        0.1746        11.3%  

Dominican Republic Peso

                              

End of Period

     2.8008        2.9275        -4.3%  

Average

     2.7422        2.8308        -3.1%  


Exchange Rates Local Currency Units per USD                               
      4Q21        4Q20        Var.%  

Euro

                              

End of Period

     0.8788        0.8186        7.4%  

Average

     0.8744        0.8384        4.3%  

Mexican Peso

                              

End of Period

     20.5835        19.9487        3.2%  

Average

     20.7511        20.6420        0.5%  

Brazilean Real

                              

End of Period

     5.5805        5.1967        7.4%  

Average

     5.5794        5.4031        3.3%  

Argentinean Peso

                              

End of Period

     102.7200        84.1500        22.1%  

Average

     100.4730        80.0335        25.5%  

Chilean Peso

                              

End of Period

     844.6900        710.9500        18.8%  

Average

     825.1852        761.1529        8.4%  

Colombian Peso

                              

End of Period

     3,981.1600        3,432.5000        16.0%  

Average

     3,878.7751        3,662.4531        5.9%  

Guatemalan Quetzal

                              

End of Period

     7.7191        7.7938        -1.0%  

Average

     7.7294        7.7905        -0.8%  

Peruvian Sol

                              

End of Period

     3.9980        3.6240        10.3%  

Average

     4.0314        3.6046        11.8%  

Dominican Republic Peso

                              

End of Period

     57.6500        58.4000        -1.3%  

Average

     56.9039        58.4342        -2.6%  


Appendix

 

Financial Debt of América Móvil(1) Millions                    
      Dec-21        Dec-20  

Peso - denominated debt (MxP)

     85,737          78,383  

Bonds(2)

     51,657          51,283  

Banks and others

     34,080          27,100  

U.S. Dollar - denominated debt (USD)

     8,466          9,351  

Bonds

     7,751          9,351  

Banks and others

     715          0  

Euro - denominated Debt (EUR)

     8,497          9,780  

Bonds

     7,697          8,100  

Commercial Paper

     0          1,680  

Banks and others

     800          0  

Sterling - denominated Debt (GBP)

     2,200          2,200  

Bonds

     2,200          2,200  

Reais - denominated Debt (BRL)

     5,500          8,475  

Bonds

     5,500          8,475  

Banks and others

     0          0  

Debt denominated in other currencies(3) (MxP)

     23,384          32,610  

Bonds

     6,102          6,590  

Banks and others

     17,282          26,020  

Total Debt (MxP)

     563,950          628,383  

Cash, Marketable Securities and Short Term Financial Investments (MxP)(4)

     163,278          90,554  

Net Debt (MxP)

     400,672          537,829  

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

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

(3)Includes Peruvian soles and Chilean pesos.

(4)Includes fixed income securities with nominal tenor of more than one year.


Discontinued Operation

 

Discontinued Operation: TracFone Millions of Mexican Pesos                    
      Jan-Nov 21(1)        Jan-Dec 20  

Total Revenue

     152,252        177,179

Total Costs and Expenses

     133,935        155,767

EBITDA

     18        21

Depreciation

     560        1,561

EBIT

     -1        -2

Other

     2        2

Net Income before Taxes

     17,755        19,850

Income Taxes

     2,572        2,857

Net Income (Loss)

     15,183        16,993

Income from TracFone’s sale

     137,968        -

Income Taxes from TracFone’s sale

     27,838        -

Net Income

     110,129        -

Discontinued Net Income

     125,313        16,993

(1)As of November 23rd, 2021.

Glossary of Terms

 

ARPU  

Average Revenue per User. The ratio of service revenue in a given period to the average number of wireless subscribers in the same period. It is presented on a monthly basis.

 
 
Capex  

Capital Expenditure. Accrued capital expenditures related to the expansion of the telecommunications infrastructure.

 
 
Churn  

Disconnection Rate. The ratio of wireless subscribers disconnected during a given period to the number of wireless subscribers at the beginning of that period.

 
 
EBIT  

Earnings Before Interest and Taxes, also known as Operating Profit.

 
 
EBIT margin  

The ratio of EBIT to total operating revenue.

 
 

EBITDA

 

EBITDAaL

 

Earnings Before Interest, Taxes, Depreciation, and Amortization.

 

Earnings Before Interest, Taxes, Depreciation, and Amortization. Adjusted after leases.

 


 
EBITDA margin  

The ratio of EBITDA to total operating revenue.

 
 
EPS (Mexican pesos)  

Earnings per share. Total earnings in Mexican pesos divided by total shares.

 
 
Earnings per ADR (US$)  

Total earnings in U.S. dollars divided by total ADRs equivalent.

 
 
Gross additions  

Total number of subscribers acquired during the period.

 
 
Licensed pops  

Licensed population. Population covered by the licenses that each of the commpanies manage.

 
 
LTE  

Long-term evolution is a 4th generation standard for wireless communication of high-speed data for mobile phones and data terminals.

 
 
Market share  

A company’s subscribers base divided by the total number of subscribers in that country.

 
 
MBOU  

Megabytes of Use per subscriber. The ratio of wireless data in a given period to the average number of wireless subscribers in that same period. It is presented on a monthly basis.

 
 

Net

subscriber additions

 

The difference in the subscriber base from one period to another. It is the different between gross additions and disconnections

 
 
Net debt  

Total short and long term debt minus cash and marketable securities.

 
 

Net

debt/EBITDA

 

The ratio of total short and long term debt minus cash and securities to trailing 12-month income before interest, taxes, depreciation and amortization.

 


 
Prepaid  

Subscriber that may purchase airtime to recharge a cellualr phone. Te client does not hold a contract with the company for voice and data services.

 
 
Postpaid  

Subscriber that has a contract for the use of airtime. The client has no need of activating airtime, it is done so immediately.

 
 

SMS

 

SAC

 

Short Message Service.

 

Subscriber Acquisition Cost. The sum of handset subsidies, marketing expenses and commissions to distributors for handset activation. Handset subsidy is calculated as the difference between equipment cost and equipment revenue.

 
 
Wireless penetration  

The ratio of total wireless subscribers in any given country divided by the total population in that country.

 


SIGNATURE

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

 

Date: February 11, 2022     AMÉRICA MÓVIL, S.A.B. DE C.V.
    By:  

/s/ Carlos José García Moreno Elizondo

    Name:  

Carlos José García Moreno Elizondo

    Title:  

Chief Financial Officer

 



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