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América Móvil plans to invest US$250mn in Chile this year

Bnamericas
América Móvil plans to invest US$250mn in Chile this year

Mexican operator América Móvil is planning to invest US$250mn in Chile this year, as part of a three-year investment cycle that started in 2023. 

“We're finalizing the last set [of] the three-year plan... to modernize all the networks we have,” CEO Daniel Hajj said in the latest results call. “We're going to put more coverage. We're going to do fiber, more redundancies. We're doing a lot of things in Chile. We're on track there.”

In November, América Móvil consolidated the ClaroVTR operation, after JV partner Liberty Latin America decided to minimize its exposure in Chile.

VTR operates 25.5% of broadband connections, including HFC, fiber and satellite in Chile, but 78% of all HFC connections.

Claro is the fourth mobile operator in the market with a 17.4% share, after Entel (35.1%), WOM (25.4%) and Movistar (19.6%).

“We’re happy about the way Chile is evolving right now,” Hajj said. 

“We have been gaining subscribers in number portability for the last six or seven months and that means that the network is working, that we have good plans and that we're doing okay,” he added. 

Next year, the company plans to invest less in Chile. 

Capex guidance

The three-year capex guidance of US$22bn for the entire América Móvil operation will be maintained. 

“In 2024 we have less capex of what we budget. We have a very good revenue increase, and we have a better cash flow,” Hajj said. 

Overall, América Móvil planned to invest US$7bn last year and reached 131bn pesos (US$6.36bn). 

“I think that's the trend that we had in 2024 and that's what we're looking to have in 2025. So we're being careful on Capex, but we're investing where we think we need to invest to get more revenue,” he added. 

In Chile, “I think this year we’re finishing almost everything [involving spectrum], so also for next year, spectrum and renovations [spending] will also be lower,” Hajj said. 

Argentina

Hajj denied rumors about being involved in a possible sale of Telefónica’s Argentine business.

“We are open always... to see if there are synergies [that] make sense for us, so we are open to review that, but we haven’t talked with them and we haven’t had anything at this moment,” he said. 

Financial results

América Móvil reported operating profit of 46.4bn pesos in the fourth quarter, up 11% year-on-year. 

Net income fell 47.5% to 9.5bn pesos due to higher comprehensive financing costs. But revenue was up 18% to 237bn pesos.

América Móvil ended 2024 with net debt of 485bn pesos. 

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