America Movil Positive FCF outlook, but M&A optionality remains top priority; Post-Q2 Update; Maintain Buy

研报英文原文证据摘录

America Movil Positive FCF outlook, but M&A optionality remains top priority; Post-Q2 Update; Maintain Buy

a favorable mix dynamic, with further room for operating leverage.

Colombia is a key growth market. Mobile momentum continues to improve,

supported by postpaid growth and customer migration toward higher-value

plans, while ongoing fiber investments should further strengthen AMX's

positioning. We continue to view Colombia as a margin expansion story,

supported by market repair.

Peru gains strategic relevance following the announced WOW acquisition.

Beyond the immediate scale contribution, the transaction once completed

should expand AMX's fiber footprint outside Lima, add a meaningful broadband

customer base and strengthens its position in both residential and corporate

segments. The deal also brings network complementarity, reinforcing AMX's

ability to accelerate its convergence strategy in the country.

Brazil becomes the main watch point. We see a tougher setup for Mobile

growth, as management acknowledged a more promotional environment, and

stated that AMX should keep matching peers' increasingly aggressive

commercial activity. While part of the deceleration reflects challenging YoY

comps, we believe the discussion on the call reinforced a more cautious view

on mobile service revenue growth and margin trends in the country through

the remainder of the year.

Argentina should continue benefiting from improving industry

fundamentals. We expect market repair to support further margin expansion

over time, as operators increasingly focus on pricing discipline. That said,

uncertainty remains around the timing and ultimate destination of the assets

involved in the regulatory remedies tied to the TEO-TMA transaction, which