America Movil Sets Capex Goal Following Rival's Acquisition of Telefonica Chile Unit

Deep News
Feb 12

America Movil's Chief Financial Officer, Carlos Garcia, stated on Wednesday, following the release of its fourth-quarter results, that the company has preliminarily set a capital expenditure target of 14% to 15% of revenue for 2026 and future years. Garcia noted during a conference call that this target is still pending finalization. He added that, following the successful $1.2 billion acquisition of Telefonica SA's Chilean subsidiary by French holding company NJJ and Luxembourg-based Millicom on Tuesday, America Movil will make the necessary investments to maintain its competitiveness in the Chilean market. America Movil, controlled by the family of Mexican billionaire Carlos Slim, had previously prepared to jointly acquire the subsidiary with Chilean company Entel. However, the alliance dissolved at the end of 2025, after which America Movil decided to pursue a potential transaction independently. Company executives stated that funds originally earmarked for the acquisition of the Telefonica SA Chile business will now be used to reduce group debt and prepare for other acquisition opportunities in the region. "I believe there will be market consolidation, and we want to be prepared for it," Chief Executive Officer Daniel Hajj told analysts. He mentioned small fiber optic providers in Latin America and Brazilian internet service provider Desktop, with which the company is currently negotiating. Just one day before this conference call, America Movil reported a nearly fivefold increase in net profit, primarily driven by a significant decrease in financing costs due to favorable exchange rates, alongside a slight revenue increase of over 3%. Analysts at JPMorgan described it as a "solid quarterly performance," with robust operations in Mexico and Colombia, though progress in Brazil was somewhat slower. The company's shares saw a modest increase during early trading.

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