América Móvil, S.A.B. de C.V. (AMX): history, ownership, mission, how it works & makes money

A Brief History of América Móvil, S.A.B. de C.V. (AMX)

Foundation and Early Years

América Móvil was founded in 2000 by Carlos Slim Helú, a prominent Mexican businessman. The company was initially a spin-off from Telmex, the largest telecommunications company in Mexico, which was also acquired by Slim. By 2003, América Móvil had already established itself as a significant player in the telecommunications sector across Latin America.

Expansion into Latin America

By 2005, América Móvil operated in 15 countries, and its subscriber base had exceeded 100 million. The company began offering a range of wireless services, including voice and data, alongside fixed-line telephony. In 2006, América Móvil acquired the majority of the telecommunications company Embratel, further expanding its reach in Brazil.

Acquisitions and Growth

In 2011, América Móvil announced its acquisition of Claro in Brazil, solidifying its position in the Brazilian market. The company continued to grow through various acquisitions across Central and South America. By 2013, América Móvil reached over 270 million subscribers.

IPO and Listing

In April 2004, América Móvil went public on the Mexican Stock Exchange and the NYSE, raising significant capital to fund its expansion strategies. The initial public offering (IPO) priced at $25 per share generated approximately $1.5 billion, allowing the company to invest in technology and infrastructure enhancements.

Financial Performance

As of the second quarter of 2023, América Móvil reported revenues of approximately $12.4 billion, with a net income of $2.1 billion. The company continues to demonstrate robust growth in its mobile telecommunications segment, driven by increasing data consumption.

Technological Advancements

América Móvil has heavily invested in network infrastructure, including the rollout of 4G and 5G technologies across its markets. By 2023, approximately 80% of its total subscribers were on 4G networks, highlighting its focus on enhancing service quality and capacity.

Corporate Social Responsibility

América Móvil is committed to social responsibility initiatives, particularly in education and healthcare. In 2022, the company allocated over $100 million to various community programs aimed at improving digital literacy and access to technology for underserved populations.

Global Presence

América Móvil operates in over 17 countries throughout Latin America and offers services in the United States and Europe through its subsidiary TracFone. It remains one of the largest telecommunications companies in the world by revenue and subscriber count.

Market Position and Competitors

As of 2023, América Móvil holds a market share of approximately 28% in Mexico’s mobile market. Key competitors include Telefónica, AT&T, and Movistar, each vying for a larger portion of the customer base.

A Who Owns América Móvil, S.A.B. de C.V. (AMX)

Ownership Structure

América Móvil, S.A.B. de C.V. (AMX) is a Mexican telecommunications company that was founded by Carlos Slim Helú. As of October 2023, ownership is structured primarily around the following major stakeholders:

Individual and Institutional Investors

The shareholder composition includes a mix of individual investors and institutional entities. Key institutional investors in América Móvil include:

• BlackRock, Inc. - Ownership percentage around 5.1%.
• The Vanguard Group, Inc. - Ownership percentage approximately 3.2%.
• Fidelity Management & Research Company - Holding around 1.8%.

Recent Financial Performance

As of Q2 2023, América Móvil reported the following financials:

Market Capitalization

As of October 2023, América Móvil's market capitalization stands at approximately $59 billion.

Geographical Distribution of Ownership

The ownership of América Móvil is primarily concentrated in Mexico, but it also has a significant presence in various other countries in Latin America, resulting in diverse shareholder interests.

Future Outlook

América Móvil has indicated its commitment to expanding its services and presence, with an expected capital expenditure of around $10 billion for network upgrades and expansion in 2024.

América Móvil, S.A.B. de C.V. (AMX) Mission Statement

Corporate Overview

América Móvil, S.A.B. de C.V. is a Mexican multinational telecommunications corporation headquartered in Mexico City, Mexico. As of Q3 2023, the company has a market capitalization of approximately $60 billion.

Mission Statement

The mission statement of América Móvil encompasses the provision of high-quality telecommunications services and innovation in technology to enhance connectivity and improve the lives of its customers across Latin America and beyond.

Core Values

• Integrity: Commitment to ethical standards and practices.
• Customer Centricity: Focus on providing exceptional service and customer satisfaction.
• Innovation: Emphasis on continual improvement and technological advancement.
• Social Responsibility: Dedication to contributing positively to communities.

Service Portfolio

América Móvil offers a wide range of services including voice, data, and broadband services across its various subsidiaries. The company operates in 17 countries and serves over 287 million wireless subscribers and approximately 60 million fixed-line subscribers as of 2023.

Financial Performance

In Q3 2023, América Móvil reported revenues of $14.5 billion with an operating income of $5.2 billion, resulting in an EBITDA margin of approximately 36%. The net income for the same quarter amounted to $2.8 billion.

Investment in Technology

América Móvil has invested over $8 billion in network expansion and innovation projects in 2023, focusing on 5G deployment and enhancing digital services to meet consumer demands.

Sustainability Initiatives

In 2023, the company reported a reduction of carbon emissions by 15% compared to the previous year, aligning with its commitment to environmental sustainability and responsible operation practices.

Global Presence

AMX operates in 17 countries, primarily in Latin America and the Caribbean. In 2023, the company maintained a strong presence in the following countries:

How América Móvil, S.A.B. de C.V. (AMX) Works

Company Overview

América Móvil, S.A.B. de C.V. (AMX) is a Mexican multinational telecommunications corporation headquartered in Mexico City. As of September 2023, the company operates in 17 countries across Latin America and 8 countries in Europe.

Financial Performance

As of Q2 2023, América Móvil reported the following financial highlights:

Operational Segments

América Móvil operates through various segments:

• Wireless Services
• Fixed-Line Services
• Pay Television
• Broadband
• Corporate Services

Market Presence

The following table shows the subscriber base as of Q2 2023:

Investment and Growth

As of 2023, América Móvil plans capital expenditures amounting to:

Technological Innovations

América Móvil has made significant advancements in technology, including:

• 5G Network Deployment
• Smart City Solutions
• IoT Platforms
• Cybersecurity Services

Employee and Workforce

As of 2023, América Móvil employs approximately:

Corporate Social Responsibility

The company invested around:

USD 150 million in social programs in 2022, focusing on digital education and environmental sustainability.

How América Móvil, S.A.B. de C.V. (AMX) Makes Money

Revenue Streams

América Móvil generates revenue through various segments, primarily telecommunications services, including mobile and fixed-line services, as well as value-added services.

Mobile Services

The mobile services segment accounts for the majority of the company's revenues. In 2022, América Móvil reported mobile service revenues of approximately $37.4 billion.

Fixed-Line Services

Fixed-line services contribute significantly to overall revenues. In 2022, the revenue from fixed-line services was around $7.7 billion.

Value-Added Services

América Móvil also provides value-added services, which include mobile data services, digital content, and other ancillary services. In 2022, these services generated revenues of approximately $3.2 billion.

Geographic Revenue Distribution

The company operates across multiple countries in Latin America and the U.S., leading to diverse revenue distribution. The following table outlines the revenue generated in various regions for the fiscal year 2022:

Cost Structure

América Móvil incurs significant costs, primarily in network infrastructure and operational expenses. In 2022, the total operating expenses were approximately $32.8 billion.

Profit Margins

Despite high operational costs, América Móvil maintains healthy profit margins. For the fiscal year 2022, the operating income was reported at $12.6 billion, resulting in an operating margin of about 27.7%.

Investment in Technology

Investment in technology and network upgrades is a key strategy for growth. In 2022, América Móvil invested approximately $8.1 billion in capital expenditures, focusing on enhancing its mobile and fixed-line networks.

Market Position and Competition

América Móvil is one of the largest telecommunications companies in the region. It holds significant market shares in various countries. For instance, in Mexico, it controls more than 60% of the mobile market share.

Debt and Financing

The company has a considerable debt load, which it manages through strategic financing. As of the end of 2022, total debt was approximately $30.5 billion, with a debt-to-equity ratio of 0.93.

Recent Financial Performance

In the most recent quarter (Q2 2023), América Móvil reported a revenue increase of 5.8% year-over-year, amounting to $11.5 billion for that quarter.

Outlook and Future Growth

América Móvil focuses on expanding its service offerings, particularly in mobile data and broadband. Analyst projections suggest a potential revenue growth of 4% to 6% annually through 2025.

Conclusion of Financial Data

In summary, América Móvil's revenue generation is multifaceted, with robust growth trajectories in mobile and fixed-line services, underpinned by continuous technological investments and strategic market positioning.