America Movil Sab de CV (BMV:AMX/B) Q2 2026 Earnings Call

0:00 Good morning. My name is Caleb, and I will be your conference operator today. At this time, I would like to welcome everyone to the America Movil Second Quarter twenty twenty six Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the star one again. Thank you. I will now turn the call over to Ms. Daniela Laquana, Head of Investor Relations. Hi. Good morning, everyone. Thank you for joining us today to discuss our second quarter twenty twenty six financial and operating results.

0:52 We have on the line Mr. Daniel Haas, CEO Mr. Carlos Garcia Moreno, CFO and also Mr. Ricardo Mujalke, COO. Thank you, Daniela. Welcome everyone to America Movil's second quarter of twenty twenty six financial and operating report and Carlos is going to give us a summary of the results. Thank you, Daniel. Good morning everyone. Well, we can see that throughout the second quarter with the Iran world raging, oil prices remained elevated, peaking mid May at a price roughly 70% higher than prior to the war. This brought about greater concerns regarding inflation worldwide and the expectation and in some cases the reality of higher interest rates including those at the long end of the yield curve.

1:44 The thirty year U. Treasury notes reached their highest yield in nearly twenty years. However, in spite of the supporting dollar rates, the U. S. Dollar did not grow stronger against most currencies in our region of operations this year in the quarter and in fact actually depreciated 6% versus the Colombian peso. In the second quarter, we added 3,500,000 postpaid subscribers with Brazil leading the way with 1,500,000 subscribers. Colombia followed with 250,000, Peru with 173,000, Argentina with 154,000, and Mexico with 101,000 postpaid subscribers. In the prepaid segment, we raised $3,900,000 net losses as Colombia and Argentina came up the best.

2:35 In the fixed line segment, we connected 531,000 new growth and accesses. Mexico was the main contributor with 170,000 accesses followed by Brazil with 83,000 and Colombia with 74,000. As regards to Pay TV, we added 110,000 units with most of them coming to Argentina, Eastern Europe, and Central America. Mobile postpaid and fixed broadband accesses remain the main drivers of growth of our customer base, increasing at an even faster pace 9.16.1% respectively compared with the year earlier quarter. Second quarter revenue was up 3.1% year on year in Mexican peso terms with MXN $241,000,000,000. Service revenue increased 3.4% and EBITDA 2.8%.

3:25 Compared to a year earlier quarter, the Mexican peso appreciated significantly versus the dollar and the euro at 129% respectively while remaining flat versus the Brazilian per annum and depreciating 3% versus the Colombian peso. At constant exchange rates, service revenue was up 5.1% while EBITDA increased 5.3%. It would have increased 6.7% after a one off charge in Mexico. Mobile service revenue maintained the pace it has observed over several quarters, 6.5%, while fixed line service revenue accelerated to 2.7% from 1.7% in the prior quarter with the downward trend in fixed line growth coming to an end.

4:14 On the mobile platform, postpaid revenue expanded 7.2% as in the preceding quarter with prepaid revenue growth continuing to accelerate to 5.3% up from 3.1% a year ago. Mexico, Colombia, Central American and Western European blocks were the best performers in terms of improved mobile service revenue growth. Regarding fixed line service revenue in the residential segment, both broadband and pay TV revenue growth somewhat more rapidly than in the preceding quarter, 4.2% to 5.4%, up from 3.1% to 4.6% respectively. B2B revenue growth remained stable at 4.0%.

5:03 Mobile, Peru, and Central America all contributed to the improvement in broadband revenue growth. As for the recovery in the Pay TV segment, that's impacted top performer moving up from 4.7% pace to 7.5%. Operating profit totaled MXN51.8 billion and was up 9.5% in Mexican peso terms. Our comprehensive financing cost rose to 10,400,000,000 reflecting lower foreign exchange gains that more than offset lower net interest costs. Our net income totaled MXN 24,000,000,000, a 9.2 increase from the year earlier quarter. It was equivalent to MXN0.40 per share and MXN0.47 per ADR.

5:50 So at the first half of the year, our capital expenditures amounted to MXN48 billion, our share buyback to MXN1.6 billion and the service of our labor obligations to MXN8.4 billion. These were all covered by our cash flow, which together with net dividend income of MXN1.1 billion allowed us to reduce our net debt and cash flow terms by MXN 30,900,000,000, as you can see in this slide. Excluding capital large lease obligations, net debt totaled $4.00 2,000,000,000 at the end of June, which represented MXN 1.31 times last twelve months EBITDA after leases. So with that, I will conclude this presentation and we'll pass the floor back to Gabriel.

6:38 Thank you, Carlos. And we can start with the Q and A. At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q and A roster. Your first question comes from the line of Leonardo Olmos, UBS. Your line is open. Go ahead. Hi everyone. Good morning. Thank you for taking the question and congrats on the numbers with all the leveraging we saw. My question would be regarding competition in Brazil. You mentioned a more competitive and promotional environment in Brazil. Which segments are most concerned?

7:30 And how does this entry level hybrid plans such as ClutterFlex fit in these scenarios? So I'm asking specifically about the new around BRL30 per month low end hybrid plans that all the three mobile carriers launched. Thank you. Thank you, Leonardo. We're talking a little bit about Brazil. I think in Brazil we have a lot of things. So the first is, well, if you see one year ago, second quarter, the growth was very high. So, the comparative between second quarter last year and second quarter this year is a little bit difficult because second quarter of last year the growth was higher than it used to be in the other quarter. So, it's a difficult comparison between quarters, okay? That's one of the things.

8:28 The second, no doubt that the market has been more promotional where we have seen where we are seeing more promotions are in prepaid and in postpaid. What you see what you told about the ClaroFlex, I don't think there's any change on the trends on ClaroFlex postpaid prepaid. I think everybody is more or less seeing the same trends. So we are not selling more cheap postpaid or more cheap prepaid. So we are seeing the same trend. The only thing is that promotions are becoming a little bit more strong.

9:13 I still think that we're going to have a recovery in second but better in third but more in the fourth quarter. We're going to see again a little bit more growth in mobile. But well, if promotions and our competitors are more aggressive, then we need to be a little bit more aggressive. So I'm not sure what is going to happen in the next months. Maybe the promotions are not so aggressive, but we don't know. So, it depends a lot. We're following them. Since May, team Ambiibo has becoming more aggressive.

9:59 So, we have to follow and we're going to follow that. So, that is what is happening. In the other side, in the big side, we are being and growing revenues. We are growing revenues from let's say, we have in Brazil, I can tell you, we start with one year ago 1.5% growth, then 1.8%, then 2.6% and today 4.1%. So in fixed, things are going better and things are looking stronger. So we at the end of the day, we have a very strong network. We are doing very good in five gs. We are investing in customer care.

10:48 We have a very good NPS. We are doing convergence. So if the market is aggressive for this moment, then we're going to be a little bit more aggressive. And in the future, if things are going the other way and less promotions, then we're going to see better revenue. So we are still gaining in mobile portability. We are the gainers in postpaid in mobile portability. So all overall, we are looking Brazil good. And the other thing important that you can see is that we think and we're feeling a little bit a slowdown in the economy. That's also one of the things that we're looking how why revenues are decreasing a little bit because the economy we see a little bit of a slowdown.

11:40 But it's too early to see. Let's see what's happening in the next month and then we can find if the economy the trend is going slow or it's going to stay the way it is. So that's more or less what we have in Brazil. A lot of sense. Thank you very much, Daniel. Thank you. Your next call comes from the line of Marcelo Santos, JP Morgan. Your line is open. Go ahead. Hi, good morning. Thank you for the opportunity to ask questions. I wanted to ask about Mexican prepaid performance. The revenue growth we're seeing there has been accelerating every quarter for many quarters already.

12:30 Usually, you discuss this in light of improving Mexican economy, but what we hear from consumer companies, it's kind of not such a great story in the consumption side, yet your performance is good. What kind of initiatives have you been putting forward? What is happening in the competitive environment from inside or outside of America Movil that's helping you to deliver these results? Thank you. Well, you said, we think that the economy at the beginning when we were almost flat in prepaid and we're growing maybe 1% in prepaid was maybe two years ago when we think that the economy was in a slowdown period.

13:18 But right now, I think the economy is going back. And our prepaid customers are consuming, are recharging more and are charging higher cards, higher prepaid cards, okay? So instead of charging MXN 50, they are charging 80 or 100. So people is starting to use more and more. Five gs in Mexico. Really, we're the only ones that have a very good five gs network and that's also helping us a lot. And the other side, we have a little bit more coverage. So we're gaining some good subscribers that we don't have. We're starting to do a little bit more coverage in some places.

14:08 But all overall, we have a very good base on prepaid. Difficult to say, but we have a lot of our prepaid customers are consuming. So we don't have a base that all some of them are consuming or they are maybe one month consuming and two months not. So all these customers are every month are charging and using more data. So those are the things that are helping a lot on the prepaid side. So our base of people who is recharging is growing and that's very good for us.

15:00 Perfect. Thank you very much. Just a small detail on the economy. As Daniel points out, I think that economies of that recovery passed, it is coming back. I think at this stage it's very uneven, it's so not affecting all the sectors the same way. But I'll give you the two reference points. As of June, we have registered the highest ever volume of sales of automobiles, highest ever. And the growth of the automobile sales are almost identical to our prepaid revenues, the growth of the prepaid revenues. Just put it in perspective. Another reference point is if you look at other services like restaurants, they are booming, all sorts of restaurants, high end, low end, all of them are booming.

15:57 It's a little bit uneven. You have some sectors that are doing particularly well, some other sectors that are still not recovering. Okay, so pretty interesting. Thank you. Thank you. Your next question comes from the line of Fani Kanemuri, HSBC. Your line is open. Go ahead. Hi, everyone. Thanks for taking my questions. My first question is on Mexico mobile revenue growth. It has registered a very strong growth, but I'm wondering if it had any positive impact from the World Cup that is happening in Mexico. Are you seeing higher roaming revenues? Have you seen higher growth in June compared to other months?

16:48 The second question is also on Mexico. How is the progress happening on the mobile registration? And how many what percentage of customers have already been registered on this front? Thank you. The first one, I think the World Cup impact a little bit. So I don't think it's too much. There's not the World Cup was not only Mexico, so we have only like seven games, something like that. So there's people coming. We see more roaming here in Mexico, more people using. It's not only the roaming, it's people is using more, It's looking we have a very good five gs network so they are looking the games in the iPad, in the phone.

17:35 So that will have a little bit more consume. But that will be only two weeks in June. So it's not too much. So what we are seeing is that a lot of our customers who are coming back to our store and wants to renovate, they are renovating. Maybe I can tell you that maybe half of our subscribers are upgrading their plans. So that's very, very important. So they want to use they want to have a better plan. They want to use more. They want they're using more of the concept. So that is what is giving us on postpaid a very good growth. So a lot of our customers are moving to a higher plan. So that's what you could see. The market is very competitive.

18:26 We have a lot of competition in the market. But as I said, we are the only really five gs network, very good network all around Latin America. We're working a lot on quality. We're working a lot on speed, customer care. So we're trying to give our customers the best service and that is making us to grow that. So in the registration, well, for now on, there's the what we said in our is that there's going to be new dates for the registration. The dates are going to be depending on the end of your number is where you need to be registered.

19:15 It's going to be only the prepaid subscribers. The postpaid are already in. So they don't need to register the postpaid subscribers. And I don't know exactly the number on the industry, but there's still a lot to do on that. So every month, every fifteen days, every month there's going to be a new number. And then you have to register your prepaid number. So that's what it is starting August 15 and ends on I think end of November or beginning of December. And well, that's what the authorities are saying and that's what the people needs to do. In prepaid, they need to register.

20:00 Since January, all the people, all the new customers that all of the companies have has to be registered. So, since that all of them have to be registered and this is only for the actual customers that need to register their numbers. So, that's where we are. And we hope that all of them will register. Yes, thanks for the responses. Thank you. Your next question comes from the line of Rogerio Arujo, Bank of America. Your line is open. Go ahead. Hi, everyone. Thanks for the opportunity. I have a couple of questions.

20:48 The first one on the line, other financial expenses, it rose to roughly 6,900,000,000 in the quarter. This was a 40% increase year over year. Could you please break down what drove that increase? But specifically, how much of this relates to cash outflows tied to your labor obligations and special funds? We saw this was nearly MXN6.9 billion in the quarter as well. Also looking forward, what level of annual pension related cash outflow should we model given the maturity of the TELMAX plan? This is the first one. And the second on Nucell, could you gently walk us through how it's reflected in your accounting and KPIs?

21:42 Specifically, are NuSell's users counted within your reported subscriber base and net adds? We think so. But if you could confirm. But also, how is the economics recognized? Full revenue or only Clado's revenue share? So we can have an idea on how this impacts ARPU. And finally, how should we think about the associated network commercial costs and margin profile of Nucell in our results? Thank you so much. Thank you, Brokelio. On the first question, on other financial expenses, basically what we are reflecting is partly a little bit of the elements of design that was mentioned a while ago because as the face cooling was some years ago part of the design ended up being financially expensive.

22:50 Financial It penalties that were accrued since the initial ruling, okay? The other part that is important in other expenses generally and this is we will see it all the time is that that's where we have the the currency hedging transactions among other things. So, typically when you are gaining on the FX to the extent that those gains had already been hedged, are giving back part on the expenses. It was on opposite directions both cases, okay? So that's part of it.

23:35 So it's part of time and part of your expenses. Nothing to do with the pensions. The pensions are accrued and accounting basis. We are showing here is an accrual basis. It's not on a cash flow basis, okay? And the accrual basis has no change. And on new cell, there's two types of MDNOs in Brazil. One we call them accreditados and the other ones authorized MDNOs. NUSL is the ones that are like accreditados that they work like an agent, commercial agent. And those customers count at our base. We count them as in our base in Claro. So that's the way we count. So all the new cell subscribers are inside Claro customers.

24:31 Okay, perfect. And the revenue is the full revenue charged by Nussel that enters at your No, revenue is the part that is including in us that our revenue and the rest is new cell revenue, you know? So we divide that. So that's where we have. But new cells have been working maybe for one year or more. More. Fair enough. Very clear. Thank you so much. Thank you. Your next question comes from the line of Emilio Fuentes, GBM. Your line is open. Go ahead. Hi, thank you for taking my question. My question is regarding capital allocation. I was wondering, given the current weakness we've seen in the U. S. Dollar and how it could benefit your investment needs, Do you see any downside risk to your full year CapEx guidance?

25:27 And if so, and given you're currently standing in the lower end of your leverage ratio, do you see incremental free cash flow as being destined for share buybacks? Thank you. The weak dollar, it's difficult for us in CapEx because then for the same things that you do, then it's going to be more dollars. So, need on dollars, it's more dollars for the same budget that we have. So, it's in terms of the CapEx, it's not helping while in terms of revenues, it's helping. So that's where we are and we're deciding what to do. But in cost in CapEx, it's a little bit more. So but we are in the target that we have $7,000,000,000 and it was $7,000,000,000 a little bit more, a little bit less. But we are in that target and we're not going to move on that. And then the second question, can you repeat it, please?

26:26 The leverage you say Do you see any increase? I think what Are you seeing incremental free cash flow? Yes. If you see any incremental cash flow going forward buybacks? No. I think what we have said consistently is we first determine what our leverage ratio is meant to be, okay? So we need to look at our leverage ratio considering the expenses that we are already committed to take which will include the purchase of desktop which likely is going to be up this year.

27:11 That's our expectation in any case. Okay? So we basically managed to stay within the range that we have set. So it's not more than 1.5 times net debt to EBITDA, not less than 1.2 times net debt to EBITDA. So that you can see that we have some limits in terms of how much we can reduce our valuation at this point. And what we and also adding another thing that we just announced yesterday, the Wow acquisition that we have I think makes a lot of sense for us in Peru. It's some more fiber like more than 3,000,000 houses packaged with fiber, half a million customers and make a lot of synergy with us. So and we're open to see more of those acquisitions.

28:09 So they are good for us. We're going to they are broadband customers that we can sell prepaid, postpaid or TV also. This network is outside of Lima and it's a good complement for us, help us also the fiber to do corporate customers that we're growing and doing very good there. So small businesses as Oscar is saying. So we are also looking for other good acquisitions that we can have, no? Yes? Next question. Just a reminder to everyone, if you would like to ask a question, press star then the number one on your telephone keypad.

29:04 Our next question comes from the line of Ernesto Gonzalez, Morgan Stanley. Oh, excuse me. Our next question comes from the line of Carlos Zacchiera, BTG Pactual. Go ahead. Hi. How are you? Hope all is well. So I have one question, please, and it's related to M and A strategy in Europe. If you can, you know, let us know what you are looking at or what makes sense for AMX at this point. Let me look to Europe, please. Thank you. Well, we are open to see everything. But what we're really looking is this type of companies like desktop, like that add fiber customers that have the fiber complement to our fiber network that we can sell more things to those customers like prepaid, postpaid.

30:04 And as I said also, the fiber will be in the small and medium companies have a lot of synergies. I think we can have a lot of synergies with this company. So those are the companies that we're looking. So we are not looking to go outside right now to other countries, but we are looking things inside our country that will make us grow a little bit faster and consolidate the market. Consolidation of the market will be important. Perfect. Thank you. Thank you. Your next question comes from the line of Ernesto Gonzalez, Morgan Stanley. Your line is open. You may go ahead.

30:52 Hi, thank you for taking our question and congratulations on the results. So it's two questions. The first one is on Colombia. You delivered pretty strong results consistent with past quarters. Could you talk about how you see this market evolving, especially now that sometimes has passed since the acquisition of Telefonica closed? And the second question is on Argentina. Given the recent competition authorities resolution on potential consolidation in the market, And does it change how you view the long term outlook for Argentina? Or any comments you can give are greatly appreciated. Thank you. Well, good that you're talking about other countries. So Colombia, I think we're doing very good. In Colombia, growing very fast in mobile.

31:39 We were the first one in let me tell you, we're growing from seven to 7.6 then to 10 the growth in mobile revenue. So we do we were the first ones that do five gs there. We have a very good network and portability is going well with us. So that's the reason why we're growing. Also a lot of customers are moving to higher plans. We work a lot on also service, quality, speed. So all of that is making that our customers will use more the service and that new customers are coming to our network. In the other side, in the peak side, we're moving also to do more fiber. It's more a challenging mobile is more challenging.

32:44 But I think we can grow. We are doing fiber. We have a good network, good sales and distribution. So I think we're going to do much better in the peak. As well in Colombia, as I was saying, I think on the segment, on the corporate segment, we are growing pretty nicely in Colombia as well. So good in mobile, good in corporate and moving to be better in broadband and fixed in TV, mobile broadband and fixed TV. That's where we are. And in Argentina, well, in Argentina, we're going to compete against a big competitor there.

33:36 But nothing else to do. So we have fiber. We have good broadband, we have five gs, and we're growing. So that's what we want to do and that's the same strategy that we have not do fiber to see more customers in broadband, in TV. And we are competitive in price. So we have a good prices there. So that's where we are. And we're growing also very good. We don't say about Peru. But in Peru, we're growing very good in broadband, very good in corporate segment.

34:23 The growth in Peru I think on the fixed side was around 12%. So it was incredible the growth in Peru. And that's what we are doing and looking to still grow more there. So, there's a lot of opportunities in the corporate segment also in Perinta. Really clear. Thank you. Your next question comes from the line of Rojirijo Arujo, Bank of America. Your line is open. Go ahead. Hi. Thanks for the follow-up question. If you could provide more details on the regulatory fine of 1,300,000,000 on Telmex, what are the reasons behind it?

35:10 And also the potential recurrences of regulatory fine is going forward? Thank you. Well, is something that dates back to 2017. And in 2020, this fine was imposed on a knowledge violation of asymmetric measures. So we contested the fine and now in June it became final. So we believe it's disproposal, it doesn't make any sense, it's fine. It's 6% of the revenue, which is the minimum accordance to the law. And we think it's completely absorbed what they do. So unfortunately, at this stage, we cannot do anything. So that's what we have. So it's not on Telmex, it's on Telmex, an affiliate of Telmex and that's what gave us 6%.

36:09 So we don't think we think those funds are absorbed. So we hope and we don't think there's going to be any more of those. Let's see. Okay. Thank you. Your next question comes from the line of Marcelo Santos, JP Morgan. Your line is open. Go ahead. Hi, thank you very much for the follow-up. I just wanted to go back to the first question regarding Brazilian mobile. So based on what you said, like you expect the growth to improve in the third and fourth quarter, do you see room to increase the control prices, the mobile control price, hybrid prices this year or not?

36:58 Could you make some comments on that, please? Thank you. I think we can do increase of prices, but while there's a lot of competition in Brazil, so we are not going to do anything on that until we see the portfolio. We want at the end of the day, we are going to be competitive. We have the network. We have the coverage to be competitive. And if there's one, two or three months or quarters that the promotions are more aggressive, then we're going to be there. If there's that happens in May with Vivo. So in May with Vivo, we need to put more promotions and we think we need to put more promotions and to be more aggressive. So that's what we do in May and June. We don't know what is going to happen. As I said, we don't control the competition. Now we control what is internally in the company, not the competition. So I don't know exactly what they are going to do. But in Brazil and in all the countries we are prepared to compete and they do more promotions, then we're going to do more promotions. And if the promotions are a little bit more relaxed, then we can relax the promotions. But we are a long term player and it's for some quarters or one year that they are too aggressive. Well, that's happened in Colombia like three or four years ago now with an

38:30 entrance of the new competition there, very aggressive, Well, and today we're growing and we do what we need to do in the market, in our network, in training our people. And other things that we're doing is we're using and starting to use a lot more AI agents, a lot more AI and it's going to help us to reduce costs. It's going to help us to understand more our customers and to see what opportunities we have. It's not a short term. I think that's something that we're going to do a long term. And it's going to help us in the we're seeing that we are growing more our EBITDA than our revenues and that's because we are controlling our costs and expenses. So that's where we are.

39:28 That's really the strategy of the company all around Latin America and in Europe. And well, in some countries, maybe we have some competition one quarter or for six months, another one is another one. And well, we are prepared to do that. So, that's where we are and what that's our strategy, you know. All right. Thanks a lot. Thank you. Your next question comes from the line of Walter Piecyk from LightShed. Your line is open. You may now go ahead. Thanks. So in Mexico, you've had very good margins for quite some time. I think they stepped up a couple of years ago. But you are you do show revenue growth there.

40:20 Just curious if there's a way to further leverage that to take margins higher specifically in Mexico? Well, what I said, so we are really working as hard to control costs, to control expenses, to find ways that will be good for our customers to increase their plan because we don't want that we sell a better plan and the people and our customers don't use that plan. We want that what we sell, they use, they will be happy. We want customers for a long term. So we don't want customers for short term. So of course, if we can find a way to increase more revenue and to object and to control cost in all the companies, of course, the margin will increase.

41:17 I think all of it all this quarter against last quarter of last year, the second quarter of last year, the margins of all the companies increased a little bit. So almost not all, but in almost all the companies, our margin of EBITDA increased this quarter. Okay. And then sorry, this was touched on before, but the fiber acquisition and maybe potential other acquisitions, I assume, is not going to negatively impact the what has been a good trajectory in terms of capital return with dividends as well as share repurchase.

42:04 But related to that, I mean, you have you still have a stake in Verizon. Is there any thought of monetizing that stake in order to provide additional cash for acquisitions or capital return? Obviously, the leverage ratio of the company is within your target range. So just kind of curious how all those things fit together in terms of maybe selling Verizon, how much fiber more to build and whether we're going see a big step up more in capital return in 'twenty seven? Well, the cash flow, first six months was really good. I think we increased a lot our cash flow. But still, need to give the dividends for the second half are there. So and with the dollar appreciated, it's a lot of dollars what we need to give. So it's good.

43:00 And no, I think what Carlos is saying, so we have a target. And then at the end of the day, we can use It doesn't have to be immediately in the short term. I can tell you that in the long term, there's going to be acquisitions, if we have acquisitions and return to capital to the shareholders and reduce the debt. Those are the three things that we have. We want to be as financial help as possible because then maybe we can have other opportunities in the future. So that's what we are. It's still what Carlos is saying. We need to pay the acquisition of desktop at the end of the year. So all of it all, we are going to be looking for those three things. Acquisitions, returning capital to shareholders and reducing debt. So that's where we are.

44:06 You. But is there any reason But we are not seeing the things in a short term, okay? So today, what is today and then tomorrow, we need to see a little bit more on medium and long term to do all these things, okay? So that's where we are. We see I still personally think that there will be more opportunities like desktop, like, woah in the future. And let's see, that's why we want to be healthy and to be prepared to do those things. And why continue to own Verizon? Well, Verizon, when the share was at some price, we sold some of that. Are we take the decision to sell half of that. We haven't taken the decision of the other half of that. So we are looking for that.

45:00 Nothing that there's not we are sure that in the future we are going to divest maybe. We don't know exactly when we're going to divest. Nothing we're not going to carry. So there has to be a good price, and we are not going to carry to divest. That's a pretty good price. It's a pretty good price right now. Well, yes. We saw this at the Yes. Other side than this I know. I know. You. Thanks. Thank you. Your next question comes from the line of Jesus Romo, Global Data. Your line is open. You may go ahead.

45:47 Hello, good morning, and thank you for taking my call. Just a quick follow-up on the next phone numbers, specifically the prepaid subscriber numbers. I noticed that you had positive net adds in Q2 twenty twenty six versus Q1 twenty twenty six. And since we're in the middle of the we're still on the ongoing registration process, I wonder if you could share a little bit of color or the factors that guided us to have positive net addendum numbers in this quarter, plus promotions, the World Cup, mobile or a combination of factors? Thank you. So look, it's very difficult to explain what is happening since the registration in January is with the new customers.

46:35 It's very difficult because some customers decide not to renew because if they renew, they have to register. So people are not registered. So but we have less disconnections. So a little bit less self or less disconnection, but it's very difficult. The way we feel we're seeing and trying to understand what people is thinking, both changed a little bit because people used to buy very cheap and then use and then buy another handset and then use the behavior of the prepaid subscribers are changing a little bit.

47:24 And we need to see what at the end of the day, the most important thing in prepaid is the amount of revenue that you are getting per month. And I think that's what is doing good and we're doing fine on that. And just to give you a reference point, net adds prepaid net adds second quarter were $146,000 in Mexico. A year ago, second quarter of last year, they were $83,000 and three years ago they were 106,000 So, if you look at the last three years, the second quarter has even better net adds in prepaid.

48:10 And the other thing that is happening in all the countries is that there's a lot of people moving from prepaid to postpaid. So in some countries, are moving more from prepaid to postpaid, in other ones a little bit less. People is understanding that, well, the concept is part of the life of the person. They are moving when they can, they move to a postpaid and in postpaid they hire more data and more applications and do more things. So that's going to be the trend for the next five years. There's going to be more people moving from prepaid to postpaid. Just a quick follow-up, if I may. Do you perceive there is an effect of customers coming in from Movistar now that there's an announcement of a deal, not an approval yet, but there's an announcement of Movistar changing? How do you think that these customers I think it's difficult that the customers all the customers will know that the company is going to be for sale or not for sale. Some of them know, other ones know. But I think what we have is a number of portability.

49:35 We have been gainers in number of portability and we still are gainers in we're gaining number portability. So I don't know exactly if it's because the company was for sale and then it's still not for sale or they are not selling because they are not don't have the authority. I don't know exactly what those regulatory is happening. But while we're gaining customer from all the companies. Thank you. Thank you. We have reached the end of the Q and A session. I will now turn the call over to Mr. Daniel Hash for final remarks.

50:22 Just thank everyone for being in the call. Thank you very much. Bye bye. This concludes today's conference call. You may now disconnect.