AMOV's Fiber-Led Consolidation and Prepaid Resurgence Cut Through the Noise

Q2 2026: Deleveraging, a Peruvian fiber acquisition, and accelerating Mexican prepaid offset Brazil's promotional pressure.

AMOV · Earnings Call · 2026-07-22

Quarter in Brief

America Movil's Q2 2026 results, reported on July 22, present a narrative that diverges from the market's current fixation on tariffs and data center AI. While the global keyword tape is dominated by the Net tariff refunds and data center AI, AMOV's growth is coming from more traditional telecom levers: a re-accelerating Mexican prepaid base, disciplined capital allocation, and a bolt-on fiber acquisition in Peru. The company added 3.5 million postpaid subscribers, led by Brazil, and saw service revenue grow 5.1% at constant exchange rates. EBITDA rose 5.3%, and net debt fell to 1.31x last-twelve-month EBITDA after leases.

Deleveraging and the Wow Acquisition

Management's focus on balance sheet health is evident. CFO Carlos Garcia Moreno reiterated the leverage band of 1.2x–1.5x net debt to EBITDA, and highlighted that the full-year capEx target of ~$7 billion remains unchanged despite the weak dollar. The capital allocation story is anchored by the announced acquisition of Wow in Peru, a fiber operator with over 3 million homes passed and 500k customers. CEO Daniel Hajj framed it as a natural fit:

I think makes a lot of sense for us in Peru. it is some more fiber, more than 3 million houses passes with fiber. 500 thousand customers. And creates a lot of synergies with us.
Daniel Hajj Aboumrad, CEO · 2026-07-22

This mirrors the prior quarter's commentary about balancing buybacks, deleveraging, and acquisitions:

“we want to have a good balance between buybacks, between deleverage and the opportunities that we have.” — Daniel Hajj Aboumrad, Chief Executive Officer (CEO) · 2026-04-22

Mexican Prepaid: A Tailwind

Mexico's prepaid revenue growth accelerated for the fifth consecutive quarter, defying broader consumer weakness. Management attributes this to an improving economy and higher 5G adoption, with customers recharging larger amounts:

“instead of charging 50 pesos, they are charging 80 or 100.” — Daniel Hajj Aboumrad, CEO · 2026-07-22

The trend is consistent with past optimism about the macro recovery: in the 2025 Q2 call, Hajj noted that prepaid would benefit as the economy improved. This quarter proves that thesis paying off.

Brazil's Promotional Pressure

Brazil, the largest contributor to postpaid adds, faces an escalating promotional war. TIM and Vivo have become more aggressive, and management is prepared to respond:

“So if the market is aggressive for this moment, then we are gonna be a little bit more aggressive.” — Daniel Hajj Aboumrad, CEO · 2026-07-22

Yet they see a recovery in the second half, driven by fixed-line resilience and Claro's 5G network. The competitive intensity in Brazil is a near-term drag, but management's long-term playbook—fiber coverage, convergence, and AI-driven cost control—remains unchanged.

Regulatory and Other Items

One-time items include a MXN 1.3 billion fine on Telmex affiliate Telnor, which Hajj called disproportionate. The company also clarified that the Nucell MVNO partnership is fully integrated into its subscriber base and revenue accounting. While these are isolated, they highlight the ongoing regulatory and operational complexity in Latin America.

In summary, AMOV is quietly executing on a fiber-led consolidation strategy while monetizing its 5G leadership. The market's obsession with World Cup spending and AI data centers may be overlooking a telecom company that is steadily improving its revenue mix and balance sheet. The prepaid resurgence in Mexico, buoyed by prepaid subscriber growth and higher ARPU, is a clear evidence of that.