LatAm Telecom: 2Q preview: Building blocks for a solid 2H26

Research evidence excerpt

LatAm Telecom: 2Q preview: Building blocks for a solid 2H26

13 July 2026

LatAm Telecom EquitiesTMT

2Q preview: Building blocks for a solid 2H26 LatAm

◆ Brazil mobile competition, potential M&A and its impact in Phani Kanumuri

Mexico, Brazil fixed segment and Colombia look to be key Analyst, TMT HSBC Securities (USA) Inc.

phani.kanumuri@us.hsbc.com

◆ Competitive dynamics remain favorable, and we expect +1 240 709 8135

strong 2H26 performance in general Madhvendra Singh*, CFA

Senior Analyst, TMT

HSBC Bank Middle East Limited, DIFC

◆ Buy on VIVT3, TIM, AMX and TIGO; update TIGO TP to madhvendra.singh@hsbc.com

USD105 (from USD95) and TIM TP to BRL28 (from BRL31) +971 450 93348

Ali Naqvi*

Senior Global TMT Analyst

Where we differ from the consensus for 2Q26: Our net income estimates for HSBC Bank Middle East Limited, DIFC ali.naqvi@hsbc.com

Millicom, Telefonica Brasil, and AMX are c3% to c7% higher than consensus as +44 20 7992 2176

we expect: 1) Millicom could benefit from its strong cost execution, especially in

Colombia, driving higher FCFE guidance; 2) Telefonica Brasil could benefit from * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

strong organic growth and asset sales leading to a net income beat; and 3) AMX is

likely to benefit from positive FX gains and solid organic growth. We expect below-

consensus 2Q26 net income for TIM and Televisa. TIM net income could be

impacted by I-Systems integration, while Televisa could be impacted by lower

TelevisaUnivision contribution. In terms of FY guidance, we expect TIM to reiterate

2026 guidance, while Millicom could increase its FCFE guidance from current

guidance of at least USD900m. However, consensus FCFE for Millicom is already at