América Móvil is set to invest US$250 million in Chile this year as part of a three-year investment plan starting in 2023. The company aims to enhance its network infrastructure, focusing on increased coverage and fiber expansion. Clear progress has been made in subscriber growth in recent months, although capex is expected to reduce next year as overall revenue improves.
América Móvil, the Mexican telecommunications provider, plans to invest US$250 million in Chile this year, marking the continuation of a three-year investment period initiated in 2023. CEO Daniel Hajj emphasized the modernization of networks, including enhanced coverage and fiber installation as part of their strategy. Following the consolidation of ClaroVTR operations due to a reduced stake from partner Liberty Latin America, VTR accounts for 25.5% of broadband connections in Chile, excelling with 78% of HFC connections.
Claro holds a 17.4% share in the mobile sector, ranked fourth after Entel, WOM, and Movistar. Hajj expressed satisfaction with Claro’s recent subscriber growth, attributing success to effective network operations and appealing service plans. However, he noted reduced investment expectations for Chile in 2024.
América Móvil maintains a three-year capital expenditure (capex) target of US$22 billion across its operations, with a more conservative budget proposed for 2024. Hajj detailed a forecasted capex decline due to anticipated improved revenues and cash flow. As of last year, capex reached 131 billion pesos (approximately US$6.36 billion).
The CEO further indicated that spectrum-related expenditures would be lower in the coming years, suggesting a completion of significant investments for this year. On a different note, Hajj dismissed rumors regarding a potential acquisition of Telefónica’s operations in Argentina, stating there have been no discussions as of now.
In their recent fourth-quarter financial results, América Móvil reported an operating profit of 46.4 billion pesos, an increase of 11% year-on-year, despite a 47.5% drop in net income due to increased lending costs. Revenue increased by 18% to 237 billion pesos, with the company ending 2024 at a net debt of 485 billion pesos.
América Móvil’s planned US$250 million investment in Chile highlights its commitment to network modernization as part of a larger US$22 billion capex strategy. While subscriber growth signals operational strength, the company anticipates reduced spending in 2024 following a successful 2023. Despite financial fluctuations, the overall revenue trajectory appears positive, ensuring continued focus on critical investments amid evolving market conditions.
Original Source: www.bnamericas.com
