America Movil S.a.b. De C.v. ((AMX)) has held its Q2 earnings call. Read on for the main highlights of the call.

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America Movil’s latest earnings call struck an optimistic tone, with management highlighting strong subscriber growth, healthy revenue and EBITDA expansion, and clear progress on deleveraging. While regulatory and competitive headwinds, especially in Brazil and parts of the prepaid base, weighed on near‑term metrics, executives insisted that core operations remain solid and well positioned for future growth.

Surge in Postpaid Subscribers Fuels Growth

America Movil added 3.5 million postpaid subscribers in Q2, led by Brazil with 1.5 million and solid gains in Colombia, Peru, Argentina, and Mexico. This broad‑based expansion is driving postpaid revenue and deepening customer relationships, reinforcing the company’s focus on higher‑value contracts as a key engine of growth.

Broadband Net Adds and Pay TV Show Renewed Momentum

Fixed broadband continued to gain traction, with 531,000 new accesses connected in Q2, including 170,000 in Mexico and notable additions in Brazil and Colombia. Pay TV also showed signs of recovery, adding 10,000 units as specific markets stabilized, pointing to improving demand for convergent home services.

Revenue and EBITDA Rise Despite FX Noise

Quarterly revenue climbed 3.1% year on year to MXN 241 billion, with service revenue up 3.4% and EBITDA rising 6.8% in reported terms. At constant exchange rates service revenue grew 5.1% and EBITDA 5.3%, and management stressed that EBITDA would have increased 6.7% absent a one‑off charge in Mexico.

Mobile and Fixed Service Lines Deliver Solid Gains

Mobile service revenue increased 6.5% year on year, supported by a 7.2% rise in postpaid revenue and a faster 5.3% growth in prepaid. On the fixed side, residential broadband revenue advanced 4.2% and pay‑TV revenue 5.4%, underscoring the benefits of a diversified portfolio across mobile and home connectivity.

Profitability and Net Income Strengthen

Operating profit reached MXN 51.8 billion, up 9.5% versus the prior year, reflecting better margins and scale benefits. Net income came in at MXN 24 billion, which management described as a significant improvement compared with last year, translating into higher earnings per share for investors.

Deleveraging Underpins Financial Discipline

In the first half, America Movil spent MXN 48 billion on CapEx and around MXN 44.6 billion on share buybacks while servicing MXN 8.4 billion in labor obligations. Strong cash flow and MXN 1.31 billion in net dividend income enabled a MXN 30 billion reduction in net debt, bringing leverage to roughly 1.31x EBITDA, comfortably within the 1.2–1.5x target range.

Fiber M&A Strategy Targets Future Growth

Management highlighted the acquisition of Wow in Peru, which adds more than 3 million homes passed with fiber and roughly 500,000 customers. This deal fits the stated strategy of buying fiber and fixed assets to boost cross‑selling and corporate services, signaling continued consolidation in key markets to support long‑term growth.

Regional Execution Highlights Colombia and Peru

The company pointed to Colombia as a standout, noting its early move into 5G and strong mobile revenue expansion. Peru also showed notable acceleration, with fixed broadband growing around 12% and improving portability metrics, demonstrating effective execution and competitive gains in select markets.

Prepaid Subscriber Base Under Pressure

Not all trends were positive, as the prepaid segment recorded net losses of 3.9 million subscribers in Q2. Management attributed much of this decline to base clean‑ups in Colombia and Argentina and cautioned that some markets still depend on prepaid recovery dynamics, leaving this segment more volatile.

Competitive Heat Rises in Brazil

Brazil remained a point of concern, with executives highlighting a sharp uptick in promotions from rivals TIM and Vivo. This more aggressive competitive environment is pressuring short‑term mobile revenue growth and may require America Movil to respond with its own offers, with a clearer recovery expected later rather than immediately.

Regulatory Fine and Higher Financial Costs Hit Results

A long‑running regulatory case resulted in a MXN 1.3 billion fine on Telmex becoming final in June, adding to non‑operational headwinds. Financial expenses climbed to about MXN 6.9 billion, pushing comprehensive financing cost to MXN 10.4 billion, as lower FX gains and fine‑related items weighed on reported profitability.

FX Volatility and Mexican One‑Off Distort Headline Numbers

Management emphasized that foreign‑exchange swings in the Mexican peso, euro, and dollar added noise to the quarter’s figures and financing costs. A one‑off charge in Mexico further damped reported EBITDA growth, prompting executives to focus investors on underlying trends, which they argued are stronger than the headline numbers suggest.

Mixed Prepaid Picture Beyond Mexico’s Strength

While Mexico’s prepaid business performed well, with 146,000 net adds in Q2 versus 83,000 a year earlier, the broader prepaid base showed churn and uncertainty. New registration requirements starting in mid‑August could temporarily disrupt customer behavior, leaving short‑term prepaid metrics more unpredictable even as the company works to stabilize them.

Macro Slowdown Risk Clouds Some Markets

The call also acknowledged signs of a moderate economic slowdown in certain countries, notably Brazil, that may weigh on consumption. If this trend persists it could affect mobile revenue momentum, prompting management to balance growth initiatives with tighter cost and capital discipline.

Guidance Points to Recovery and Continued Discipline

Looking ahead, management expects Brazil to recover in the second half with gradual improvement in Q3 and more pronounced progress in Q4. They plan to keep full‑year CapEx around the stated level, maintain net‑debt‑to‑EBITDA within the 1.2–1.5x band, and continue targeting fiber M&A while using free cash flow for dividends, buybacks, and debt reduction in line with their leverage framework.

America Movil’s earnings call painted a picture of a telecom giant balancing strong operational momentum with manageable headwinds from regulation, FX, and competition. For investors, the key takeaways are solid subscriber and revenue growth, improving profitability, a clear deleveraging path, and a focused fiber strategy, even as Brazil’s promotions and prepaid volatility remain important watchpoints.