AMERICA MOVIL REPORTS Ps. 12.9B CLAROVTR IMPAIRMENTS, PANAMA DISPOSAL

TL;DR

**AMX took a huge Ps. 12.9 billion hit on ClaroVTR and exited Panama, signaling trouble in those markets.**

AI Summary

America Movil SAB de CV (AMX) filed a 6-K on January 16, 2024, reporting significant impairments related to its ClaroVTR joint venture in Chile and the disposal of its Panama operations. As of September 30, 2023, the company recorded Ps. 8,238,393 in impairment to accounts receivable and Ps. 4,677,782 in impairment to its investment in ClaroVTR. This matters to investors because these substantial write-offs indicate challenges in these operations, potentially impacting future profitability and the company's overall financial health.

Why It Matters

These impairments and discontinued operations signal financial difficulties in key markets, which could reduce America Movil's earnings and asset value, directly affecting shareholder returns.

Risk Assessment

Risk Level: medium — The significant impairments and discontinued operations indicate operational challenges and asset value reductions, posing a medium risk to future financial performance.

Analyst Insight

Investors should carefully review America Movil's upcoming earnings reports for further details on the impact of these impairments and discontinued operations, and consider if these write-offs are isolated incidents or indicative of broader operational issues in their international ventures.

Key Numbers

• Ps. 8,238,393 — Impairment to accounts receivable (related to ClaroVTR as of September 30, 2023)
• Ps. 4,677,782 — Impairment to investment (related to ClaroVTR as of September 30, 2023)
• Ps. 13,762,695 — JV’s principal investment, net of cash applied (as of September 30, 2023)

Key Players & Entities

• America Movil SAB de CV (company) — the filing company
• ClaroVTR (company) — joint venture experiencing impairments
• Panama (company) — location of discontinued operations
• Ps. 8,238,393 (dollar_amount) — impairment to accounts receivable – ClaroVTR
• Ps. 4,677,782 (dollar_amount) — impairment to investment – ClaroVTR
• September 30, 2023 (date) — as of date for impairments
• January 16, 2024 (date) — filing date of the 6-K

Forward-Looking Statements

• America Movil may face continued pressure on profitability due to challenges in its joint ventures and divested operations. (America Movil SAB de CV) — medium confidence, target: 2024-12-31
• The company might explore further strategic adjustments or divestitures in underperforming markets. (America Movil SAB de CV) — low confidence, target: 2025-01-01

FAQ

Key Financial Figures

• $1 — the exchange rate of Ps.17.7287 to U.S.$1.00, which was the rate reported by Banc
• $200 million — arks. The agreed purchase price was U.S.$200 million on a cash/debt free basis. The Company
• $116.7 million — n adjusted closing consideration of U.S.$116.7 million in cash. As a result, in accordance wit

Filing Documents

• d626338d6k.htm (6-K) — 2210KB
• 0001193125-24-008663.txt ( ) — 10519KB
• amx-20230930.xsd (EX-101.SCH) — 102KB
• amx-20230930_cal.xml (EX-101.CAL) — 86KB
• amx-20230930_def.xml (EX-101.DEF) — 358KB
• amx-20230930_lab.xml (EX-101.LAB) — 598KB
• amx-20230930_pre.xml (EX-101.PRE) — 484KB
• d626338d6k_htm.xml (XML) — 2485KB

Forward-Looking Statements

Forward-Looking Statements 1 Amrica Mvil 2 Recent Developments 3 Operating and Financial Review as of September 30, 2023 and for the Nine Months Ended September 30, 2022 and 2023 4 We have prepared this report to provide our investors with disclosure and financial information regarding recent developments in our business and results of operations as of and for the nine months ended September 30, 2023. Our unaudited interim condensed consolidated financial statements as of September 30, 2023 and for the nine months ended September 30, 2022 and 2023 are attached to this report. The information in this report supplements information contained in our annual report on Form 20-F for the year ended December 31, 2022 (File No. 001-16269), filed with the U.S. Securities and Exchange Commission (the "SEC") on May 1, 2023 (our "2022 Form 20-F").

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Some of the information contained or incorporated by reference in this report may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Although we have based these forward-looking statements on our expectations and projections about future events, it is possible that actual events may differ materially from our expectations. In many cases we include, together with the forward-looking statements themselves, a discussion of factors that may cause actual events to differ from our forward-looking statements. Examples of forward-looking statements include the following: information about our expected commercial, operating or financial performance, our financing, our capital structure or our other financial items or ratios; competitive developments in the telecommunications sector; other factors and trends affecting the telecommunications industry generally and our financial condition in particular; and We use words such as "believe," "anticipate," "plan," "expect," "intend," "target," "estimate," "project," "predict," "forecast," "guideline," "should" and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-lookin

View Full Filing

View this 6-K filing on SEC EDGAR