Good morning. My name is Lauren, and I'll be your conference operator today. At this time, I would like to welcome everyone to the América Móvil Third Quarter 2021 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press Star followed by one on your telephone keypad. If you would like to withdraw your question, press Star followed by two. Thank you. Now I will turn the call over to Ms. Daniela Lecuona, Head of Investor Relations. Thank you. Good morning, everyone. We're very pleased to join you this morning to discuss our third quarter results. We have on the line Mr. Daniel Hajj, Chief Executive Officer, Mr. Carlos García Moreno, Chief Financial Officer, and Mr. Óscar Von Hauske, Chief Operating Officer. Thank you, Daniela. Thank you, everyone for being on the call. Carlos is going to make a summary of the third quarter results. Thank you, Daniela. Good morning, everyone. Well, during the third quarter, supply shortages were prevalent in several industries at a global level. Inflation data continued to surpass estimates in the U.S. and other countries. The market consensus appeared to shift in favor of the Fed and other monetary authorities moving more rapidly than anticipated to ease the expansion of the monetary base and set the base for interest rates to begin to rise. In this context, 10-year interest yields from U.S. government notes experienced a marked correction just prior to the end of the quarter, helping strengthen the dollar versus most currencies, including the euro and several Latin American ones, closing the quarter higher because of all of them. As regards the operations in the third quarter, we added 4.2 million wireless subscribers, of which 2.2 million were post-paid clients, ending September with 302 million subscribers, 7% more than a year before. Roughly half the new, post-paid clients came from Brazil, with Colombia contributing 313,000 subs, and Peru 252,000. Chile and Austria each contributed 100,000 post-paid subscribers. Mexico led the way in prepaid with 577,000 net adds, followed by Brazil with 307,000 and Argentina 270,000. Colombia, Ecuador, the Central American block, and our European operations each obtained around 200,000 new prepaid clients. On the fixed line platform, we had Pay-TV net disconnections in Brazil that more than offset the net gains we had in the other countries. At the end of the quarter, Brazil's Pay-TV accesses were down 5% from a year before, whereas Colombia's were up 6%, and in the rest of our subsidiaries, they were up 3%. For América Móvil, there was a 2% reduction overall in Pay-TV subs. As for broadband accesses, Argentina was up almost 50% year-on-year, followed by Peru and Colombia with approximately 10% each. In the aggregate, América Móvil's broadband accesses increased 3% from a year ago. Our revenue totaled MXN 253 billion in the quarter. That's a 2.6% decline in nominal peso terms on account of the appreciation of the Mexican peso versus other currencies in our region relative to the year before. At constant exchange rates, service revenue increased 4.5% year-on-year, twice as fast as our costs and expenses, leading to a 7.5% increase in EBITDA that totals MXN 87 billion. Peru, Eastern Europe, the Dominican Republic, and Mexico were the countries where service revenue growth was fastest, from 16.6% in Peru to 6.4% in Mexico. Central America, Colombia, Puerto Rico, and Austria all delivered growth in the 4%-5% range. Mobile service revenue expanded 5.9%, with fixed mobile devices and 5G services playing an increasingly important role in some countries. While fixed line service revenues increased 1.6%. In both cases, in mobile and in fixed, it was their best showing in several quarters if we correct for the low second quarter trending days that affected the yearly comparison in mobile. In the third quarter, both prepaid and postpaid mobile revenue increased around 6%. The hump that you see in the chart on the prepaid curve has to do with the distortion in the annual comparison mentioned before, as prepaid hit its lowest point in the second quarter of 2020. Mexico and Brazil both increased their mobile service revenue 9%, Peru posting 15.8%. In the Caribbean, Puerto Rico and Dominicana saw revenue increases of 14.5% and 7.7% respectively. Our European operations, for their part, recorded nearly 11% growth, with Bulgaria, Croatia, Macedonia, and Serbia all registering better than 10% revenue increases. At nearly 7%, Austria's revenue growth was buoyed by 5G services and fixed mobile devices. On the fixed line platform, Broadband and corporate revenue expanded 5.6% and 4.6% respectively, and Pay-TV revenue fell 5.2%. With clients in Brazil continuing to revise down the cost of their pay-TV plans, reflecting a greater share of content coming from streaming services as opposed to the traditional multi-channel offering. On the fixed line platform, revenue growth was noteworthy in Peru, close to 20%, Colombia 9.8%, and Eastern Europe 9.2%, with Bulgaria posting 15% growth and Belarus and Serbia strongly, 20%. Not including the challenges Argentina, even its high inflation, its fixed service revenue has risen almost 9% in real terms after inflation. Our EBITDA margin jumped to 34.6% from 31% the prior year. This was our highest EBITDA margin in nine years. Mexico, Central America, the Dominican Republic, Peru, they were all behind this margin expansion, having the first three of them register a three percentage point improvement, beginning with Mexico, and Peru's 2.5. We obtained an operating profit of MXN 47 billion in the third quarter. It rose 4.7% in peso terms and 10.4% at constant exchange rates in relation to the prior year. Depreciation and amortization charges declined 2.5% in peso terms. Our comprehensive financing cost amounted to MXN 35 billion, which was 12% more a year before, mostly driven by an MXN 11 billion foreign exchange loss, which resulted from the appreciation of the dollar in the quarter, as we mentioned at the beginning. Our net interest expense was down 12%, at MXN 15 billion, MXN 15.3 billion. Our net profit was down 16% from the year earlier quarter. It was equivalent to MXN 0.24 per share and $0.04 per ADR. In the nine months to September, our cash flow helped us cover capital expenditures of MXN 91 billion, distribute MXN 37 billion to our shareholders by way of dividends and share buybacks. The latter, by the way, amounted to MXN 22 billion. Just to give you a reference, last year by this time of the year, the share buybacks had been at MXN 1.5 billion. This year we are having MXN 22 billion. Our cash flow also helped us pay down MXN 14.5 billion in debt obligations and reduce our net debt by MXN 38 billion in cash flow terms. At the end of the quarter, our net debt stood at MXN 588 billion, or MXN 488 billion if we exclude leases. The latter amount was equivalent to 1.55x the EBITDA of the last 12 months. This is the EBITDA after leases that I'm talking about. 1.55x net debt excluding leases to EBITDA after leases. Relative to December, the debt in the balance sheet was down MXN 59 billion. Okay. With that, I would like to pass the floor back to Daniel and open for Q&A. Thank you, Carlos. Thank you, Carlos. We can start with the Q&A. At this time, I would like to remind everyone, in order to ask a question, please press star then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from Marcelo Santos from JP Morgan. Marcelo, your line is now open. Hi. Good morning. Thanks for taking my questions. I have actually two questions on broadband. The first is in Mexican broadband, where you put a good number of adds. Could you speak a little bit more on how are these adds comprised, if these are fiber adds? Second, and skewing that question, if you can comment on the Mexican broadband competitive environment. The second question is on broadband in Brazil, where for the third consecutive quarter, you have been losing subscribers. We saw what you discussed in the Investor Day regarding your network being upgraded and being prepared to offer higher speeds. What do you expect to happen with the subscriber trends in Brazil? Do you think you'll revert these losses, start growing more with the market or not losing? Could you please make some comments regarding Brazil broadband? Thank you very much. I'm gonna start with Brazil, and then I'm gonna let Óscar give his comments. On Brazil, what I just want to tell you is that we have been improving and upgrading our network, our fixed network, and our mobile network. Not only in fiber, we have been growing fiber this year. We're gonna do around 2.5 million-3 million home passes in fiber. Maybe we're going to end with 5 million home passes with fiber. In our cable network, we upgrade all our cable network and almost every place in Brazil, we can give 1 GB of capacity. What I can tell you is that our network, our cable network, is as competitive as fiber in terms of speed and that's all. I want to ask Óscar if he can give his comments on our networks in Brazil and what we're doing with the broadband. Óscar, please. Sure. Well, in Brazil, as you mentioned, we've been investing to getting fiber closer to the customer. We believe that we have a network that is fully resilient for the market speed needs. It's a very competitive market and has been changed. I mean, the traditional telco has been upgrade its networks. As you know, the ISPs start coming outside our network, but now they are getting some cities in our network. It has become a very competitive market in speed and in prices. What we've been doing is that we have the network ready to deliver the speed that the markets need. We launch, as Daniel mentioned, 1 Gb speed across all the network. We believe the speed, of course, is a fact, but not only speed. Our new proposal has Wi-Fi mesh included in the product with two hotspots that the customers could do the right architecture to distribute the speed across the houses. We have the best NPS in years that we've been implementing a lot of processes to improve the quality of services in the network and in the services. It's a very competitive market. We believe that with these new products, we will get the gain in the next quarters. I think we are ready with the quality, with the network. We reshape the organization in order to be in a more competitive market. We believe that we could get new apps in the next quarters. To add a little bit more on Brazil, just we're growing in the broadband revenues in Brazil around 5%, so we're still growing, and I think we're doing good. We're going to talk a little bit more on the Pay-TV business, where we have in Brazil, a lot of piracy. In the broadband business, the competition in Brazil is changing. It's getting more competitive, all this environment. We seen that we have a very good network. We can compete, we can do bundles, and we have a very good network to compete there, no? Yeah. Totally. Mexico, we reshape our offering in the market. Even we launched recently 1 Gb speed as well in Mexico. We mentioned that the bundles with the streaming providers has been working pretty good. I think we reshape as well the commercial organization. We are doing a strong migration for customer from copper to fiber. We will continue to do that, and we will adapt to the market conditions, our market, our products. I think it was a good quarter, and we believe that we could continue do the effort in the next quarters. We are also improving our network distribution, our own stores, and focusing- On digital. Our digital platforms, and we're focusing more on the sales of all these fiber that we have. That's more or less what is happening in Mexico. Perfect. Very comprehensive answers. Thank you very much. Our next question comes from Leonardo Olmos from UBS. Leonardo, your line is now open. Your line is now open, Leonardo Olmos. We're not hearing. Yeah, we will take the next question. Our next question comes from Fred Mendes from Bank of America. Fred, your line is now open. Hello. Good morning, everyone, and thanks for the call. I had two questions as well. Just a follow-up from the answers you guys just mentioned. You mentioned that broadband revenues grew 5%. I was just wondering if there is a big difference between the FTTH and the cable growth. Our understanding is that on the new projects, you guys are going with FTTH, so I just wonder if there's a big difference there. That'd be the first question. The second question also in Brazil, when you look at the mobile segment, ARPU was flat for the quarter. If you see room for further ARPU increase, or are we starting to see a little bit more of a competition, so it's more about market share instead of ARPU? Thank you. I think the mobile market is a little bit different than the broadband market. In Brazil, the mobile market is where the four competitors that we have today, and in the broadband market, there's a lot of people putting fiber. It's a little different market. I think in mobile, we're doing very well. We have been gaining. We're growing 8%- 10% revenue per year in mobile, increasing postpaid, doing bundles, and I think in mobile, we're doing good. We have been doing good for the last two years and are still doing good for this quarter, and I hope that the next ones and the next year, we can do better. In the broadband, as Óscar said, there's a lot more competition. As Óscar mentioned, we're launching today 1 G b of speed in all the work. If it's fiber or if it's cable, we don't have any difference. We have been improving our network in Brazil. We have been putting a lot of technology to give 1 Gb to any of the customers. Of course, we're growing a little bit more in the new areas where we're putting fiber. We're growing in fiber because we're putting new areas, new places, new. Cities. New cities. Where we have cable, we're also growing with new customers. We're losing some, growing in the other ones. Well, that's. Competition that we have today in Brazil. I don't know, Óscar, if you want to add. No. Okay. Very clear, Daniel. Thank you. Thank you. Our next question comes from Chelsea Konsko from Aegon. Chelsea, your line is now open. Chelsea Konsko, your line is now open for your question. Okay, we will go on to the next question. Our next question comes from Carlos Legarreta from GBM. Carlos, your line is now open. Hi. Thank you. Good morning. My question is regarding handset sales, particularly in Mexico and Brazil. We saw double-digit decline year-over-year. I'm just wondering if this is due to an easy comparison base, or perhaps this is affected by the semiconductor shortage. Thank you. If we compare third quarte last year, and third quarter of this year, I think in third quarter of last year, we started to sell a lot. What we don't do in the second quarter, I think third one, people as pandemic and COVID lockdowns start to open, then people start to buy. It's a difficult comparison. All overall, I think in all the world, in all Latin America, and includes Mexico and Brazil, there is lack of handsets. Maybe it's for chips, but also for other components, logistics. There's no doubt that we are suffering a little bit of lack of handsets right now. Okay. Thank you. For the follow-up, Daniel, if you could talk about the wireless environment in Mexico. Obviously you have very good results with the ARPU at that level and that growth, it seems encouraging. If you could give us more details, that'll be great. Thank you. Well, I think the network that we have in Mexico is superior to all the other networks that we have here, and people is moving to the best network. We're putting a lot big effort in quality, in coverage, in 4.5G speed, and that's what people is choosing. That's really what is happening in Mexico. We have competition. We have two competitors. We do everything to be ready for 5G. We still don't know exactly when we're going to launch 5G, but we're ready to launch also 5G in Mexico. We have a good network, plus also very important is we have a very good customer experience. We have the NPS in Mexico, good, high, good distribution networks. We have 400, more or less, owned stores plus the retails, plus distributors. We are really focused on all of those things. Mexico, we feel that we are strong also in the distribution of all our products. Thank you, Daniel. Our next question comes from Gilberto García from Barclays. Gilberto, your line is now open. Hello. Good morning, and thank you for the call. I had a follow-up question on the Mexican result, very strong margins. Can you comment if there were any particular drivers for the improvement? Related to that, just to confirm, with the bundles from OTT providers, do you recognize as revenue only your commission from this sale? On wireless, another follow-up, the performance in postpaid was a contrast to the strong performance in prepaid. Was this related to the lack of handsets? Thank you. I don't know if that in wireless will be totally to the lack of handsets. Could be some, the lack of handsets. What we're seeing is that people in Mexico does not want to get a compromise in postpaid, but they are moving some of them to prepaid. We feel also comfortable they are recharging often, and the ARPU is doing well. I still think that in Mexico, people is a little bit worried about the pandemic and maybe they don't want to have a contract for 18 months with a rent or something like that. They are moving to the prepaid, and we're doing good. That's what we're seeing. What I understand is that, the. The commission. The commission that we're putting on bundles with the OTTs. We're only putting the commission. We're not putting all the revenue. Yeah, that's right. Okay. Thank you very much. Thank you. We now have a question from Chelsea Konsko from Aegon. Chelsea, your line is now open. Hi, and thanks for taking the questions. I was wondering if you could just put a little more context around your recent M&A announcements in both Panama and Chile. I'm just wondering, from a strategic perspective, what your thoughts were behind, on one hand, selling the Panamanian business, but then entering into a JV and keeping your involvement in Chile. What makes Chile a more attractive environment to you than Panama in the longer term, is really where I'm coming from. In Panama, I think we were the third competitor. In the last years, our competition, Millicom, the Tigo consolidate the cable company, Liberty also buy, they are strong in mobile and in fixed. We feel the country, it's a very important country, there is the population are 3 million, 4 million POPs. It's not a very big country. There's not a big space for us to grow. That's really the reason why we decide to sell the company in Panama. That is going to take us a lot of years and a lot of money to improve and gain market share and put a fixed. Network. Network. That's really the rationale and the reason why we decide there. In the other side, Chile is a much bigger country. We're very interested to be in Chile, and we are strong in mobile, we're strong in corporate. Liberty is strong in TV and broadband. I think the merge make a lot of sense. They put us in a good position in the market as the size as the other two. That's the rationale we are interested in Chile. Make a lot of sense. The synergies are gonna be very good, and that's the rationale why we do the 50/50 joint venture in Chile. Do you have any concern over regulatory approvals in Chile? No. As I said, we're gonna be as the size as the other two. We're not gonna be bigger than the other ones. No, I think we need to give all the information to the authorities there. We already submit that information. I think there's not gonna be any problem. Great. Thank you. Thank you. As a reminder, to ask any further questions, please press star followed by one on your telephone keypad. Our next question comes from Leonardo Olmos from UBS. Leonardo, your line is now open. Hello, can you hear me now? Yes. Right. Yes. Hello? Yes. Oh, good. Yes. Yeah. Okay. A quick one, everyone. I want to discuss about broad financial position that you have. If you could discuss the logic behind the breakdown of buybacks and cash dividends, what has been the logic from this first nine months, and what's gonna be the logic in the future? Thank you. Hello, Leonardo. As you know, we've been providing an ordinary dividend that grows every year, sometimes somewhere between 5% and 10% per year. What we have done consistently over the years is that we have distributed whatever excess cash we have by way of share buybacks, so as to remain at the desired leverage target that we want. In the last five years, we were higher than our leverage target, and that meant that we didn't really have any excess cash. We had to reduce our debt. Now we are in a position, as you have seen in the report, where our net debt has come down to 1.5 x. That means that we have now the capacities already, not even the end of the year, we have still not completed the transaction of the sale of TracFone. You know that we have also the spin-off of tower ahead of us. These two transactions alone would represent a further deleveraging of about $8 billion between the two. We are in a comfortable position to assume share buybacks. I think that we would commit going forward that we would remain in the leverage target that we mentioned in our Investor Day two weeks ago, which is to remain in a band of between 1.2 and 1.35 net debt to EBITDA. Basically, whatever excess cash we have, if it's not required for M&A, whatever, then it should be available for distributions. Okay. That is clear. Thank you very much. Sorry for my connection problems earlier. Thank you. Have a good day. Thank you, Leonardo. Thank you. We now have a question from Walter Piecyk from LightShed Partners. Walter, please go ahead. Okay, our next question. We now have a follow-up question from Marcelo Santos from JP Morgan. Hi. Thanks for the follow-up. I just wonder if you could comment a bit on the Pay-TV behavior that you mentioned in the release that is taking place in Brazil, I believe, people downgrading their plans as they migrate more to streaming. Is this something that you see more on Net Serviços or in DTH? Are you seeing this behavior in other countries besides Brazil? Well, as Daniel mentioned, the trend of the, let's say, traditional Pay -TV has been moving to streaming, that's why we launch in Brazil Claro Box. We believe that is a trend that includes the traditional TV and the on-demand TV in a simple set-top box, has been very well accepted in the market, of course, not enough to set off the decline of the legacy. This is affecting satellite and cable, it was your question. Another one is what Daniel mentioned around the piracy in Brazil. We've been seeing that since the operators start to launch IPTV, it's opened up the possibility to increase the piracy in a level that we've been seeing that three or four times that we had two years ago. Big part of the market is using this kind of services in Brazil, and this is very sophisticated operation that they hack all the content through internet or different sources, and they deliver to the customer through a set-top box or through a Smart TV, and they have the way to collection with PayPal and other sources. That's what we've been seeing in the Pay-TV market. If you see the decline in the Pay-TV market in total, year-over-year has declined around 8% in subscribers, and we are declining as well, 8% in subscribers. That's what I could tell you. Just a follow-up on this question. Is this piracy issue only is restricted to Brazil, or is something you're seeing across other countries? Well, mainly in Brazil. We've been seeing something in Central America, but I think it's all over the place, but in Brazil it's very important. Got it. Thank you very much. What we have said in the report is that we are indeed seeing that in some plans where we are providing certain bundles with our streaming services. Those are probably not including the same number of multi-channels that we have in the previous offers. Okay, there's some movement in that regard with some people basically reducing the content that they are having from the established channels that we have and moving more towards the type of bundles that we have sometimes in broadband with streaming. Understood. Thank you very much. Your next question comes from Walter Piecyk from LightShed Partners. Walter, please go ahead. Thanks. Sorry about that earlier. Is the TracFone transaction still expected to close by year-end or are there some additional FCC items there? No. We think we can close the TracFone transaction before year-end because we're in target. I hope we can do it before year-end. Yes, we're okay with that. Thanks. Daniel, what's going on in that business? I think a lot of times when companies are bought or sold, maybe there's some distractions at the company. At the same time in the U.S., I think it sounds like MVNO rates from the operators are more aggressive, meaning that AT&T is offering better rates to get Dish or maybe Verizon's offering aggressive rates. I'm just curious if there's been changes in the market, because I also noticed that Straight Talk lost subs this quarter. That's not typical. I can't recall the last time, if ever, that Straight Talk lost subs. I wonder if you could give us any, I know you're selling this asset, so I apologize that it's not something that you're going to deal with. If you can give us any color on what you see happening in that business, in the prepaid market in the U.S., I'd appreciate it. I think the only color that I can give you is that in TracFone, as in a lot of the other countries, we're seeing a little bit a problem of handsets. We don't have enough handsets to sell. There's handsets, remember that the handsets that we're selling in the prepaid business are lower-end handsets. Really the problem in the handset business is more on the low end or mid end segment of prices on those handsets than in the high-end prices. That's what we're facing a little bit in TracFone and not only in TracFone, in all the other countries also. In the low and mid end, we're facing some challenge to have enough handsets to sell. Okay, great. Can I ask a question for Carlos. The Investor Day was helpful and these new targets for the debt leverage, 1.2- 1.35. Your business is very diversified. It's recurring revenue. You're generating very good free cash flow. I don't think there's CapEx cycle. You've given very good commentary on kind of M&A opportunities or lack thereof. Why with this low interest rate environment would you take leverage that low? Why not set your leverage targets at 1.5 or two or even 2.5, which investment grade companies can sustain, and you can still borrow at a very low rate and then use that excess cash to buy stock back? Well, Walter, we have always had more of a conservative financial policy, as you are well aware of. I think that why not one and a half? Well, today we have a part of our what we would consider to be cash is basically marketable securities in the form of KPN stock, and we would eventually have Verizon stock. Okay. I think since that is not exactly cash, although it does provide a nice return, I think it is more prudent for us at this stage, at least until such stakes are not monetized, to remain below the 1.5 That we had set for ourselves before. On the other hand, most of our operation, as you know it's in Latin America, and we know that in certain cycles, particularly when there's increases in interest rates globally, that can lead to some kind of financial volatility. We think it's always to navigate with lighter loads of debt whenever we are expecting that there will be some might be financial turbulence. We believe that there's a clear period ahead of us where there will be increases in interest rates, and I think that the way we have defined it for ourselves, we are going to be able to sail through this turmoil in a very comfortable fashion and in a very secure fashion. Thank you, Carlos. Appreciate that color. Thank you, Walter. Thanks. As a reminder to ask any further questions, please press star followed by one on your telephone keypad. Our next question comes from Alejandro Gallostra from BBVA. Alejandro, your line is now open. Hi, good morning, Daniela and Carlos and Óscar. I have a question regarding margins. You have been posting a great performance here for several quarters in most of the operations. I would like to know how far you think you can go from here, and what will be the main drivers. I'd also like to know if the telecom industry overall, internationally speaking, do you think the telecom industry is poised to reach new heights in terms of profitability due to the digitalization of the operations? Thank you. As you said, we have been doing that for some years, but the last year with this lockdown, we decided to increase very hard all the digitalization of the company, that is helping us to cost control. We are really focusing on being very efficient and focusing on cost control. As we said in our Investor Day, we still see a lot of growth in the region. We think that we can grow with more broadband, more house connected, more 5G, increasing our point 5G, increase fixed wireless, broadband fixed wireless, and I think it's important in the region still we have room to grow. We cannot talk on overall, because I think in different countries, we're going to face different things, no? By an example, a little bit in Brazil, we're facing some inflation right now, and we don't know exactly how we're going to increase, and when we can increase prices because of the competition. Still, some growth in Brazil with more broadband that we're putting. In Colombia, we're facing a new competition also there. All overall in different countries, we're facing different challenges. What I can tell you is that in América Móvil, we have been doing all the investments the last years to be ahead of our competition and to have the best network, good distribution channels, good digital platforms, very strong in corporate, and good alliances in the corporate to sell more IT products. That will give us more market, that will give us more revenue, and I hope that will be more profit. That's what I can tell you. One thing that is interesting there, if I may add to what Daniel has said, is that we are now having practically all of the operations, certainly with only one exception. They are all delivering growth in both the mobile and the fixed line platform. They are all delivering separately growth on both platforms. This was not the case in the past. In the past, it was either we were growing, or we were growing on mobile, but not on both platforms. Today, we are practically everywhere growing on both platforms, and that is tremendously helpful from the point of view of EBITDA margin expansion. Great. Thank you very much. Thank you. We currently have no further questions, so I'll now hand you back over to Mr. Daniel Hajj for any final remarks. I just want to thank everybody for being in the call, and also Carlos, Óscar, and Daniela. Thank you very much. This concludes today's call. Thank you for joining, and I hope you have a lovely rest of your day. You may now disconnect your lines.