Daily Call: Mexico update; Anatel data for April

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Daily Call: Mexico update; Anatel data for April

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Daily Call

Mexico update; Anatel data for April

Industry Overview

MX broadband still challenging; AMX/Mega gaining share 08 June 2026

The Mexican broadband market remains challenging, with AMX continuing to refrain Equity

from price increases, while operators continue to expand their fiber networks, increasing Latin America

overlap. For market share, AMX, Mega, and Totalplay continue to gain share, and we Daily Call

expect this trend to persist. We saw limited changes to market's mid-term outlook in 1Q. Rogerio Araujo >>

Maintain a preference for Mega given its higher growth and solid/resilient FCF. We Research Analyst

reiterate our Neutral rating for AMX, reflecting a balanced valuation at 4.5x EV/EBITDA Merrill+55 11Lynch2188 (Brazil)4255

2027e. We previously raised our PO from MXN24/US26 to MXN26/US30 on lower rogerio.araujo@bofa.com

expected capex after 2026-28 guidance. As for MEGA, we reiterate our Buy rating and Lucca R Brendim >>

Research Analyst

raise our PO from MXN75 to MXN78. We see a strong 10% FCFE yield 26e. (See our Merrill Lynch (Brazil)

report: Mexican broadband pressure persists; Mega remains top pick in LatAm Telecom). +55 11 2188 4100

lucca.brendim@bofa.com

Anatel data – April: Softer across the board

Regulator Anatel's monthly data showed softer dynamics in April (See: Anatel data –

April: Softer across the board). In mobile, Claro (AMX) postpaid net adds decelerated

sharply to 178k net vs ~350k average following the strategic shift implemented by the

MVNO in October 2025. Despite this deceleration, Claro posted positive consolidated

figures in mobile. Vivo was the main highlight, posting positive net adds both in postpaid

and prepaid, with particularly strong momentum in prepaid.