AMX · América Móvil, S.A.B. de C.V.

América Móvil's FY25 results reflect ongoing strategic shifts in its telecommunications operations across Latin America, as detailed in Item 1 and management discussion sections. Customers increasingly favor data services over traditional voice minutes, driving a fundamental change in usage patterns that supports higher-value plan adoption despite overall voice decline.

Segment operating margins showed varied performance in 2025. Certain segments benefited from the company's cost savings initiatives and reduced uncollectible accounts, enhancing profitability. These gains, however, were tempered by elevated expenses in specific markets: customer service centers and advertising costs rose in Ecuador, while content acquisition and electric energy expenses increased in Peru. In other areas, segment margins contracted primarily due to expansions in customer service center operations, though partially mitigated by ongoing cost discipline efforts.

Operational risks remain pertinent, particularly for prepaid subscribers who could experience higher churn amid softening economic conditions. This vulnerability underscores the importance of customer retention strategies in a competitive landscape. Additionally, the cost of acquiring new customers continues to pressure profitability, even as the company pursues growth.

The company adheres to fair value determinations for purchase price allocations of identifiable assets and liabilities. Notably, no pension, retirement, or similar benefits are extended to directors in their capacity as directors, aligning with governance standards. Longer-term projections, starting from the fifth year, draw from strategic plans with applied constant or declining perpetual growth rates, providing a disciplined framework for valuation and planning.

These dynamics illustrate América Móvil's resilience in navigating regional challenges through cost management and adaptation to data-centric demand, positioning the business to address economic headwinds and sustain network investments essential for competitiveness.