América Móvil, S.A.B. de C.V. (NYSE:AMX) Q2 2023 Earnings Call Transcript

Operator: Thank you. The next question goes to Phani Kanumuri of HSBC. Phani, please go ahead. Your line is open.

Phani Kanumuri: Thanks, everyone for taking my question. So my question is related to monetization of assets. Are there any assets that you are trying to monetize whether it’s Verizon stake that you have or the new tower company that is being formed in Austria? Are there any plans to monetize them in the next couple of years? That’s my first question. I’ll follow-up — I have a follow-up question later.

Daniel Hajj: Can you repeat a little bit slowly? We don’t understand the question, please.

Phani Kanumuri: I’m trying to understand if you have any monetization plans for the Verizon stake or the new tower company that is being formed in Austria. So you have some stake in that tower company, are you planning to monetize that in the next couple of years?

Oscar Von Hauske: Okay. The tower company in Austria as you point out is still in the process of being spun off. We expect this will happen sometime in the third quarter before the end of the third quarter. And in fact this tower company has already raised the financing that it needs to be fully funded from day one. In this particular case, as opposed to Sitios, and as opposed to TeleSites before them. We, America Movil, will continue to control and consolidate the company. And we have, in fact, a commitment to maintain our stake at least for a period of five years in the tower company, okay? So at least for this period of time, the Austrian tower company is going to be called the EuroTeleSites will be controlled and consolidated by America Movil. So we will be seeing as —

Phani Kanumuri: And regarding Verizon stake? Sorry, please continue.

Oscar Von Hauske: Regarding the?

Phani Kanumuri: Verizon stake? Any change this time? Verizon stake that you have?

Daniel Hajj: Verizon stake.

Oscar Von Hauske: Yes, what I would say is that the stake we have in the company, 51%, we have our commitment not to sell for a period of at least five years.

Phani Kanumuri: Okay. Sure. So the second question I have is regarding the enterprise segment revenues in Mexico. They have been growing significantly in the last few years. Do you think that they can maintain the double-digit growth rates going forward, the corporate segment revenues?

Daniel Hajj: I think we’re doing very good on the corporate segment in Mexico. Oscar can talk a little bit about our propositions and what we’re doing there. But we have a very good distribution, people, propositions, and — but, Oscar, please.

Oscar Von Hauske: Yeah, as we start to work three or four years ago about in — focus in the enterprise market. And we’ve been very successful on next generation network which is called SD-WAN. So we will move into that. And we are adding to the connectivity value-added. One is security, second is cloud and third is vertical solutions for different vertical business as finance, retail. So we need some alliance with the experts on the field and we jointly want to market to offer the whole package to enterprise. It has been working pretty nicely. So we developed our core business that is connectivity, but with aggregate value to the connectivity to security, cloud and vertical solutions. It has been working very well not only in Mexico, if you look at Colombia, if you look at other countries we are doing the same in Brazil as well. So we believe that we need to convert not just connectivity, so bring value to the connectivity with these new propositions.

Phani Kanumuri: Yeah. Thank you, everyone.

Daniel Hajj: Thank you.

Operator: Thank you. [Operator Instructions]