0001129137 amx:MembersOfTheAuditAndCorporatePracticesCommitteeMember 2023-01-01 2023-12-31
As filed with the Securities and Exchange Commission on
April 2
9
, 2022[
] 2024
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
20-F
 REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES
EXCHANGE
ACT OF 1934
or
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year
ended December 31, 2021
2023 or
or
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
or
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report______________report
For the transition period from _______________
to ________________
Commission file number:
1-16269
AMÉRICA MÓVIL, S.A.B. DE C.V.
(exact name of registrant as specified in its charter)
America Mobile
(translation of registrant’s name into English)
United Mexican States
(jurisdiction of incorporation)
Lago Zurich 245, Plaza Carso / Edificio Telcel, Colonia Ampliación Granada, Miguel Hidalgo, 11529, Mexico City, Mexico
(address of principal executive offices)
Daniela Lecuona Torras
Lago Zurich 245,
,
Plaza Carso
/ Edificio Telcel, Piso 16, Colonia Ampliación Granada, Miguel Hidalgo 11529 Mexico City, Telephone:
Telephone: (5255) 2581-3700 / Facsimile: (5255) 2581-4422
E-mail:
daniela.lecuona@americamovil.com
(name, telephone,
e-mail
and/or facsimile number and address of company contact person)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:
TITLE OF EACH CLASS:
  
Trading symbol
     TRADING SYMBOL     
  
Name of each exchange on which registered
NAME OF EACH EXCHANGE ON WHICH REGISTERED
A American Depositary Shares, each representing 20 B
Shares, without par value
  
AMOV
AMX
  
New York Stock Exchange
L Shares, without par value
AMX
New York Stock Exchange
3.625% Senior Notes Due 2029
  
AMX29
  
New York Stock Exchange
2.875% Senior Notes DueDute 2030
  
AMX30
  
New York Stock Exchanget
4.700% Senior Notes Due 2032AMX32New York Stock Exchange
6.375% Senior Notes Due 2035
  
AMX35
  
New York Stock Exchange
6.125% Senior Notes Due 2037
  
AMX37
  
New York Stock Exchange
6.125% Senior Notes Due 2040
  
AMX40
  
New York Stock Exchange
4.375% Senior Notes Due 2042
  
AMX42
  
New York Stock Exchange
4.375% Senior Notes Due 2049
  
AMX49
  
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
The number of outstanding shares of each of the registrant’s classes of capital or common stock as of December 31, 2021:2023:
20,55562,450 million
  
AAB Shares
502 million
A Shares
45,582 million
L Shares
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
 Yes 
 
Yes
 
  No  
X
 
No 
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934.
 Yes 
 Yes 
No
 
✓     X
    
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject
to such filing requirements for the past 90 days.
 
Yes
 
     ✓X
 
No
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
 Yes 
 
    ✓Yes
 
No
X
 
No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act
 
X
  
Large accelerated filer
  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule
12b-2
of the Exchange Act
 ✓    Large accelerated filerAccelerated filer  
Non-accelerated
filer
  
  Non-accelerated
Emerging
filer
  Emerging growth company
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal
control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that
prepared or issued its audit report.
 
Yes
 
X
No
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.
Yes 
No
 
X
 
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to
§ 240.10D-1(b).
 Yes 
No
 
X
    
 
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements
included
in this filing
U.S. GAAP  
 
X 
  
  U.S. GAAP             ✓    
International Financial Reporting Standards as issued by the International Accounting Standards Board
  Other    
If “other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
Item 17             Item 18
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).
 Yes 
  
  
 
  No  
Other
 
 ✓
If “other” has been checked in response to the previous question, indicate by check mark which financial statement item
 Item  Item 
the registrant has elected to follow.
 17  18 
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the
 Yes  
No
 
X
Exchange Act).
    



 

 


 
We prepared our audited consolidated financial statements included in this annual report in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The selected financial information should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements.
We present our audited consolidated financial statements in Mexican pesos (“Ps.”). This annual report contains translations of various Mexican peso amounts into U.S. dollars at specified rates solely for your convenience. You should not construe these translations as representations that the Mexican peso amounts actually represent the U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated. Unless otherwise indicated, we have translated U.S. dollar amounts from Mexican pesos at the exchange rate of Ps.16.8935 to U.S.$1.00, which was the rate reported by Banco de México on December 29, 2023, as published in the Official Gazette of the Federation (
Diario Oficial de la Federación
, or “Official Gazette”).
SELECTED FINANCIAL DATA
On August 8, 2022, we completed the
spin-off
of our telecommunications towers and other related passive infrastructure in Latin America outside of Mexico, other than Colombia and our telecommunications towers existing in Peru and in the Dominican Republic prior to the
spin-off,
as previously disclosed in our press release furnished on a report on Form
6-K
on August 8, 2022. As part of the
spin-off
and the associated corporate restructuring, we contributed to Sitios Latinoamérica, S.A.B. de C.V. (“Sitios Latam”) capital stock, assets and liabilities, mainly consisting of the shares of our subsidiaries holding telecommunications towers and other associated infrastructure in Latin America outside of Mexico, other than Colombia and our telecommunications towers existing in Peru and in the Dominican Republic prior to the
spin-off.
On February 3, 2023, we completed the sale of all of our telecommunication towers owned by our subsidiary in the Dominican Republic to Sitios Latam for an amount of Ps.2.4 billion. Between March and July, 2023, we completed the sale of all of our telecommunication towers owned by our subsidiary in Peru to Sitios Latam for an amount of Ps.4.0 billion. As a result of the
spin-off,
as of our annual report for the fiscal year ended December 31, 2022, the assets and liabilities of Sitios Latam no longer
appear in the consolidated financial information included in our annual reports. We maintain commercial relationships with Sitios Latam through our subsidiaries, which are parties to master service agreements for passive infrastructure sharing with Sitios Latam for the use of tower space, property and other equipment. The terms of those agreements for tower space are between five (5) and twelve (12) years, while terms for property and other equipment are usually between five (5) and twenty five (25) years, each with an option to renew.
On October 6, 2022, we combined our Chilean operation, Claro Chile, S.A. (“Claro Chile”), with the Chilean operation of Liberty Latin America, Ltd. (“LLA”), VTR, in order to create Claro Chile, SpA, a 50:50 joint venture (“ClaroVTR”); as a result, Claro Chile ceased to be our wholly owned subsidiary, as previously disclosed in our press release furnished on a report on Form
6-K
on October 6, 2022. In accordance with IFRS 11 Joint Arrangements (“IFRS 11”), ClaroVTR was
classified
as a joint venture, since we exercise joint control over ClaroVTR with LLA, and all relevant decisions require the consent of both parties. As a result, in accordance with IFRS 5
Non-current
Assets Held for Sale and Discontinued Operations (“IFRS 5”), the operations of Claro Chile are classified as discontinued operations for all reporting periods prior to 2023 presented in the consolidated financial information included in this report and are recognized through the equity method from October 6, 2022 onwards. Accordingly, where applicable, results are presented in the profit (loss) after tax from discontinued operations in the consolidated financial information included in this annual report. Operating and financial information presented herein therefore excludes Claro Chile, including for periods prior to the creation of the joint venture. In September 2023, we identified impairment indicators and assessed that there is objective evidence that ClaroVTR is impaired. As a result, an amount of Ps.4.7 billion was recorded as the difference between the recoverable amount of ClaroVTR and its carrying value. Additionally, as of December 31, 2023, we recorded an impairment relating to purchased convertible notes from ClaroVTR totaling Ps.12.2 billion. Both amounts are recorded under “valuation of derivatives, interest cost from labor obligations and other financial items” in our consolidated statements of comprehensive income. See Note 22 to our audited consolidated financial statements.
We prepared our audited consolidated financial statements included in this annual report in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The selected financial information should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements.
We present our consolidated financial statements in Mexican pesos. This annual report contains translations of various peso amounts into U.S. dollars at specified rates solely for your convenience. You should not construe these translations as representations that the peso amounts actually represent the U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated. Unless otherwise indicated, we have translated U.S. dollar amounts from pesos at the exchange rate of Ps.20.5835 to U.S.$1.00, which was the rate reported by Banco de México on December 30, 2021, as published in the Official Gazette of the Federation (
Diario Oficial de la Federación
, or “Official Gazette”).
On November 23, 2021, we completed the sale of our U.S. operations to Verizon Communications Inc. (“Verizon”), as previously disclosed in our press release furnished on a report on Form
6-K
on November 23, 2021. As a result, in accordance with IFRS 5, TracFone Wireless Inc.’s (“TracFone”) operations are classified as discontinued operations for all years presented in the consolidated financial information included in this report. Accordingly, results are presented in a single amount as profit after tax from discontinued operations in the consolidated financial information included in this annual report. Operating and financial information presented herein therefore excludes TracFone, including for periods prior to the sale.
We have not included earnings or dividends on a per American Depositary Share (“ADS”) basis. Each L Share ADS represents 20 L Shares and each A Share ADS represents 20 A Shares.
 
6

                
   
FOR THE YEAR ENDED DECEMBER 31,
     
       
2019            
       
2020            
       
2021            
       
2021            
 
   (in millions of Mexican pesos, except share and per share amounts)    

 
(in millions of U.S. dollars, 
except share and per
share amounts)
 

 
 
 
 
    STATEMENT OF COMPREHENSIVE INCOME DATA:
 
Operating revenues
  
 
Ps.
 
  
 
851,483
 
  
 
Ps.
 
  
 
839,707
 
  
 
Ps.
 
  
 
855,535
 
  
 
        U.S.
 
  
 
        41,564
 
Operating costs and expenses
    
 
707,685
 
    
 
694,204
 
    
 
689,402
 
    
 
33,494
 
Depreciation and amortization
    
 
157,519
 
    
 
162,682
 
    
 
162,627
 
    
 
7,901
 
Operating income
    
 
143,798
 
    
 
145,503
 
    
 
166,133
 
    
 
8,070
 
Net profit for the year continued
  
 
Ps.
 
  
 
60,468
 
  
 
Ps.
 
  
 
34,034
 
  
 
Ps.
 
  
 
74,615
 
  
 
U.S.
 
  
 
3,625
 
Net profit for the year discontinued
    
 
9,845
 
    
 
16,993
 
    
 
121,711
 
    
 
5,913
 
Net profit for the year
  
 
Ps.
 
  
 
70,313
 
  
 
Ps.
 
  
 
51,027
 
  
 
Ps.
 
  
 
196,326
 
  
 
U.S.
 
  
 
9,538
 
Net profit attributable for the year to:
                
Equity holders of the parent continued
  
 
Ps.
 
  
 
57,886
 
  
 
Ps.
 
  
 
29,860
 
  
 
Ps.
 
  
 
70,712
 
  
 
U.S.
 
  
 
3,435
 
Equity holders of the parent discontinued
    
 
9,845
 
    
 
16,993
 
    
 
121,711
 
    
 
5,913
 
Equity holders of the parent
  
 
Ps.
 
  
 
67,731
 
  
 
Ps.
 
  
 
46,853
 
  
 
Ps.
 
  
 
192,423
 
  
 
U.S.
 
  
 
9,348
 
Non-controlling
interests
    
 
2,582
 
    
 
4,174
 
    
 
3,903
 
    
 
190
 
Net profit for the year
  
 
Ps.
 
  
 
70,313
 
  
 
Ps.
 
  
 
51,027
 
  
 
Ps.
 
  
 
196,326
 
  
 
U.S.
 
  
 
9,538
 
Earnings per share:
                
Basic diluted continued
  
 
Ps.
 
  
 
0.88
 
  
 
Ps.
 
  
 
0.45
 
  
 
Ps.
 
  
 
1.07
 
  
 
U.S.
 
  
 
0.05
 
Basic diluted discontinued
  
 
Ps.
 
  
 
0.15
 
  
 
Ps.
 
  
 
0.26
 
  
 
Ps.
 
  
 
1.85
 
  
 
U.S.
 
  
 
0.09
 
Dividends declared per share
(1)
  
 
Ps.
 
  
 
0.35
 
  
 
Ps.
 
  
 
0.38
 
  
 
Ps.
 
  
 
0.40
 
  
 
U.S.
 
  
 
0.02
 
Weighted average number of shares outstanding (millions):
 
        
Basic
    
 
66,016
 
    
 
66,265
 
    
 
65,967
 
  
 
-
 
  
Diluted
    
 
66,016
 
    
 
66,265
 
    
 
65,967
 
  
 
-
 
  
 
    BALANCE SHEET DATA:
 
Property, plant and equipment, net
  
 
Ps.
 
  
 
639,343
 
  
 
Ps.
 
  
 
722,930
 
  
 
Ps.
 
  
 
731,197
 
  
 
U.S.
 
  
 
35,523
 
Right of use assets
    
 
118,003
 
    
 
101,977
 
    
 
90,372
 
    
 
4,391
 
Total assets
    
 
1,531,934
 
    
 
1,625,048
 
    
 
1,689,650
 
    
 
82,086
 
Short-term debt and current portion of long-term
debt
    
 
129,172
 
    
 
148,083
 
    
 
145,223
 
    
 
7,055
 
Short-term lease debt
    
 
25,895
 
    
 
25,068
 
    
 
27,632
 
    
 
1,342
 
Long-term debt
    
 
495,082
 
    
 
480,300
 
    
 
418,807
 
    
 
20,347
 
Long-term lease debt
    
 
94,702
 
    
 
84,259
 
    
 
71,022
 
    
 
3,450
 
Capital stock
    
 
96,338
 
    
 
96,342
 
    
 
96,333
 
    
 
4,680
 
Total equity
  
 
Ps.
 
  
 
226,907
 
  
 
Ps.
 
  
 
315,118
 
  
 
Ps.
 
  
 
454,042
 
  
 
U.S.
 
  
 
22,057
 
 
    
NUMBER OF OUTSTANDING SHARES (MILLIONS):
 
AA Shares
    
 
20,607
 
    
 
20,578
 
    
 
20,555
 
    
 
-
 
A Shares
    
 
531
 
    
 
520
 
    
 
502
 
    
 
-
 
L Shares
    
 
44,872
 
    
 
45,764
 
    
 
43,633
 
    
 
-
 
                
   
FOR THE YEAR ENDED DECEMBER 31,
 
       
2021
(2)
         
2022
(3)(4)
         
2023
   
2023
 
   (in millions of Mexican pesos,
except share and per share amounts)
   
(in millions of U.S. dollars,
except share and per share
amounts)
 
STATEMENT OF COMPREHENSIVE INCOME DATA:
 
Operating revenues
   Ps.    830,687      Ps.    844,501      Ps.    816,013    U.S.    48,303 
Operating costs and expenses
     506,828        514,996        496,443      29,387 
Depreciation and amortization
     156,303        158,634        151,786      8,985 
Operating income
     167,556        170,871        167,784      9,931 
Net profit for the year from continuing operations
   Ps.    72,090      Ps.    88,225      Ps.    80,790    U.S.    4,782 
Net profit (loss) for the year from discontinued operations
     124,236      -    (6,719       -      - 
Net profit for the year
  
 
Ps.
 
  
 
196,326
 
    
 
Ps.
 
  
 
81,506
 
    
 
Ps.
 
  
 
80,790
 
  
 
U.S.
 
  
 
4,782
 
NET PROFIT (LOSS) ATTRIBUTABLE FOR THE YEAR TO:
 
Equity holders of the parent from continuing operations
   Ps.    68,187      Ps.    82,878      Ps.    76,111    U.S.    4,505 
Equity holders of the parent from discontinued operations
     124,236        (6,719       -      - 
Equity holders of the parent
   Ps.    192,423      Ps.    76,159      Ps.    76,111    U.S.    4,505 
Non-controlling
interests
     3,903        5,347        4,679      277 
Net profit for the year
  
 
Ps.
 
  
 
196,326
 
    
 
Ps.
 
  
 
81,506
 
    
 
Ps.
 
  
 
80,790
 
  
 
U.S.
 
  
 
4,782
 
EARNINGS PER SHARE:
 
Basic and diluted from continuing operations
   Ps.    1.03      Ps.    1.30      Ps.    1.21    U.S.    0.07 
Basic and diluted from discontinued operations
   Ps.    1.88      Ps.    (0.11     Ps.    -    U.S.    - 
Dividends declared per share
(1)
   Ps.    0.40      Ps.    0.44      Ps.    0.46    U.S.    0.03 
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING (MILLIONS):
 
Basic
     65,967        63,936        63,049      - 
Diluted
     65,967        63,936        63,049      - 
BALANCE SHEET DATA:
 
Property, plant and equipment, net
   Ps.    731,197      Ps.    657,226      Ps.    628,651    U.S.    37,213 
Right of use assets
     90,372        121,874        113,568      6,723 
Total assets
     1,689,650        1,618,099        1,564,186      92,591 
Short-term debt and current portion of long-term debt
     145,223        102,024        160,964      9,528 
Short-term liability related to
right-of-use
of assets
     27,632        32,902        24,375      1,443 
Long-term debt
     418,807        408,565        339,713      20,109 
Long-term liability related to
right-of-use
of assets
     71,022        101,247        100,794      5,967 
Capital stock
     96,333        95,365        95,362      5,645 
Total equity
  
 
Ps.
 
  
 
454,042
 
    
 
Ps.
 
  
 
437,829
 
    
 
Ps.
 
  
 
421,702
 
  
 
U.S.
 
  
 
24,962
 
NUMBER OF OUTSTANDING SHARES (MILLIONS)
(5)
:
 
AA Shares
     20,555        20,555        -      - 
A Shares
     502        488        -      - 
L Shares
     43,633        42,282        -      - 
B Shares
     -        -        62,450      - 
 
(1)
Figures for each year provided represent the annual dividend declared at the general shareholders’ meeting for that year. For information on dividends paid per share translated into U.S. dollars, see “Share Ownership and Trading—Dividends” under Part IV of this annual report.
(2)
For the years 2019 to 2020 the financial statements were modified forOn November 23, 2021, we completed the sale of TracFone.TracFone Wireless, Inc. (“TracFone”) to Verizon Communications Inc. (“Verizon”). As a result of the sale of TracFone, in accordance with IFRS 5, the operations of Tracfone are classified as discontinued operations for the reporting periods prior to 2022 presented in the consolidated financial information included in this annual report. See “Overview—Discontinued Operations” under Part II of this annual report and Note 2 Ac to our audited consolidated financial statements included in this annual report.
(3)
On July 1, 2022, we completed the sale of the operations of Claro Panama, S.A. (“Claro Panama”) to Cable & Wireless Panama, S.A., an affiliate of LLA. As a result of the sale of Claro Panama, in accordance with IFRS 5, the operations of Claro Panama are classified as discontinued operations for the reporting periods prior to 2023 presented in the consolidated financial information included in this annual report. See “Overview—Discontinued Operations” under Part II of this annual report and Note 2 Ac to our audited consolidated financial statements included in this annual report.
(4)
As a result of the incorporation of ClaroVTR as a joint venture in 2022, in accordance with IFRS 5, the operations of Claro Chile are classified as discontinued operations for the reporting periods prior to 2023 presented in the consolidated financial information included in this annual report and are recognized through the equity method from October 6, 2022 onwards. See “Overview—Discontinued Operations” under Part II of this annual report and Note 2 Ac to our audited consolidated financial statements included in this annual report.
(5)
We have not included earnings or dividends on a per American Deposit Share (“ADS”) basis. On December 20, 2022, our shareholders approved the conversion (such conversion, the “Reclassification”) of all of our AA Shares, A Shares and L Shares into a single series of B Shares on a
one-for-one
basis, and on March 16, 2023, our B Shares started trading. As of March 31, 2024, we have 62,144 million B shares outstanding. Each B Share ADS represents 20 B Shares.
 
7

 

Table of Contents
8

 
9
HISTORY AND CORPORATE INFORMATION

América Móvil, S.A.B. de C.V. (“América Móvil,” “we” or the “Company”) is a Sociedad Anónima Bursátil de Capital Variable organized under the laws of Mexico.
We were established in 2000 when Teléfonos de México, S.A.B. de C.V. (“Telmex”), a fixed-line Mexican telecommunications operator privatized in 1990, spun off to us its wireless operations in Mexico and other countries. We have made significant acquisitions throughout Latin America, the United States, the Caribbean and Europe, and we have also expanded our businesses organically.
Our principal executive offices are located at Lago Zurich 245, Plaza Carso / Edificio Telcel, Colonia Ampliación Granada, Miguel Hidalgo, 11529, Mexico City, Mexico. Our telephone number at this location is (5255) 2581-3700.
BUSINESS OVERVIEW
We provide telecommunications services in 2422 countries. We are a leading telecommunications services provider in Latin America, ranking first in wireless, fixed-line, broadband and Pay TV services based on the number of revenue generating units (“RGUs”RGUs (as defined under “Key Performance Indicators”).
Our largest operations are in Mexico and Brazil, which together account for over half of our total RGUs and where we have the largest market share based on RGUs. We also have operations in 15 other countries in the Americas and seven countries in Central and Eastern Europe as of December 31, 2021.2023. For a list of our principal subsidiaries, see Note 2 a(ii) to our audited consolidated financial statements and “Additional Information—Exhibit 8.1” under Part VII of this annual report.
We intendaim to build on our position as a leader in integrated telecommunicationstelecommunication services in Latin America and the Caribbean, and to grow in other parts of the world by continuing to expand our subscriber base through the development of our existing businesses and strategic acquisitions when opportunities arise. We have developed world-class integrated telecommunications platforms to offer our customers new services and enhanced communications solutions with higher data speed transmissions at lower prices. We continue investing in our networks to increase coverage and implement new technologies to optimize our network capabilities. See “Operating and Financial Review and Prospects—Overview” under Part II of this annual report for a discussion on the seasonality of our business.
On November 23, 2021, we completed the sale of our U.S. operations to Verizon, as previously disclosed in our press release furnished on a report on Form 6-K on November 23, 2021. As a result, in accordance with IFRS 5, TracFone’s operations are classified as discontinued operations for all years presented in the consolidated financial information included in this report. Accordingly, results are presented in a single amount as profit after tax from discontinued operations in the consolidated financial information included in this annual report. Operating and financial information presented herein therefore excludes Tracfone, including for periods prior to the sale.
The following map illustrates the geographic diversity of our operations and certain key performance indicators (“KPIs”) as of December 31, 2021.
HISTORY AND CORPORATE INFORMATION
América Móvil, S.A.B. de C.V. (“América Móvil,” “we” or the “Company”) is a
Sociedad Anónima Bursátil de Capital Variable
organized under the laws of Mexico.
We were established in 2000 when Teléfonos de México, S.A.B. de C.V. (“Telmex”), a fixed-line Mexican telecommunications operator privatized in 1990, spun off to us its wireless operations in Mexico and other countries. We have made significant acquisitions throughout Latin America, the United States, the Caribbean and Europe, and we have also expanded our businesses organically.
Our principal executive offices are located at Lago Zurich 245, Plaza Carso / Edificio Telcel, Colonia Ampliación Granada, Miguel Hidalgo, 11529, Mexico City, Mexico. Our telephone number at this location is (5255) 2581-3700.
 
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KEY PERFORMANCE INDICATORS
Our customers generate revenue for us by purchasing one or more of our services. We haverefer to each service that a customer purchases as a revenue generating unit (“RGU”). Our management has identified RGUs as a KPI that helps measure the performance of our operations. The table belowoperations because it allows the Company to assess its performance on a
perservice
basis. Each wireless subscription, which includes the number of our wireless subscribers and our fixed RGUs, which together make up the total RGUs, in the countries where we operate. Wireless subscribers consist of the number of prepaid and postpaid subscribers to our wireless services.subscriptions, is counted as a single RGU, while a single fixed service customer can have multiple RGUs, depending on the services we provide in its respective country. Fixed RGUs consist of fixed voice, fixed data and Pay TV units (which include customers of our Pay TV services and, separately, of certain other digital services). The figures below reflect total wireless subscriberssubscriptions and fixed RGUs of all our consolidated subsidiaries without adjustments to reflect our equity interest, in the following reportable segments:
Mexico Wireless;
Mexico Fixed;
Brazil;
Colombia;
Southern Cone (Argentina)
Southern Cone (Argentina, Chile, Paraguay(Paraguay and Uruguay);
Andean Region (Ecuador and Peru);
Central America (Costa Rica, El Salvador, Guatemala, Honduras Nicaragua and Panama)Nicaragua);
the Caribbean (the Dominican Republic and Puerto Rico); and
Europe (Austria, Belarus, Bulgaria, Croatia, North Macedonia, Serbia and Slovenia).
   
AS OF DECEMBER 31,
 
   
2019
   
2020
   
2021
 
       
(in thousands)
     
WIRELESS SUBSCRIBERS
 
    
Mexico
  
 
76,918
 
  
 
77,789
 
  
 
80,539
 
Brazil
  
 
54,488
 
  
 
63,140
 
  
 
70,541
 
Colombia
  
 
31,104
 
  
 
33,009
 
  
 
35,062
 
Southern Cone
  
 
31,507
 
  
 
30,669
 
  
 
33,322
 
Andean Region
  
 
20,104
 
  
 
18,877
 
  
 
20,774
 
Central America
  
 
15,488
 
  
 
15,044
 
  
 
16,508
 
Caribbean
  
 
6,244
 
  
 
6,422
 
  
 
7,020
 
Europe
  
 
21,296
 
  
 
21,864
 
  
 
22,766
 
Total Wireless Subscribers
  
 
257,149
 
  
 
266,814
 
  
 
286,532
 
FIXED RGUS:
      
Mexico
  
 
21,992
 
  
 
21,925
 
  
 
21,408
 
Brazil
  
 
34,048
 
  
 
32,648
 
  
 
31,287
 
Colombia
  
 
7,613
 
  
 
8,318
 
  
 
8,876
 
Southern Cone
  
 
2,514
 
  
 
2,836
 
  
 
3,349
 
Andean Region
  
 
2,049
 
  
 
2,158
 
  
 
2,444
 
Central America
  
 
4,409
 
  
 
4,247
 
  
 
4,412
 
Caribbean
  
 
2,528
 
  
 
2,558
 
  
 
2,608
 
Europe
  
 
6,143
 
  
 
6,050
 
  
 
6,082
 
Total Fixed RGUs
  
 
81,296
 
  
 
80,740
 
  
 
80,466
 
Total RGUs
  
 
338,445
 
  
 
347,554
 
  
 
366,998
 
   
AS OF DECEMBER 31,
 
   
2021
   
2022
   
2023
 
   (in thousands) 
WIRELESS RGUs
      
Mexico
   80,539    82,851   
 
83,834
 
Brazil
   70,541    83,260   
 
86,951
 
Colombia
   35,062    37,550   
 
39,240
 
Southern Cone (Argentina)
   23,407    23,875   
 
24,928
 
Southern Cone (Paraguay and Uruguay)
   2,941    3,040   
 
3,115
 
Andean Region
   20,774    21,365   
 
21,936
 
Central America
   15,753    16,673   
 
17,266
 
Caribbean
   7,020    7,345   
 
7,592
 
Europe
   22,766    23,897   
 
25,245
 
Total Wireless RGUs
  
 
278,803
 
  
 
299,856
 
  
 
310,106
 
FIXED RGUs:
      
Mexico
   21,408    20,824   
 
21,171
 
Brazil
   25,291    24,136   
 
23,089
 
Colombia
   8,876    9,248   
 
9,440
 
Southern Cone (Argentina)
   1,694    2,546   
 
3,212
 
Southern Cone (Paraguay and Uruguay)
   326    319   
 
337
 
Andean Region
   2,444    2,608   
 
2,473
 
Central America
   4,376    4,624   
 
4,923
 
Caribbean
   2,608    2,774   
 
2,787
 
Europe
   6,077    6,204   
 
6,270
 
Total Fixed RGUs
  
 
73,100
 
  
 
73,283
 
  
 
73,702
 
Total RGUs
  
 
351,903
 
  
 
373,139
 
  
 
383,808
 
PRINCIPAL BRANDS
We operate in all of our geographic segments under the Claro brand name, except in Mexico and Europe, where we principally do business under the brand names listed below.
  COUNTRY
  
PRINCIPAL BRANDS
    
SERVICES AND PRODUCTS
Mexico
  Telcel    Wireless voice
      Wireless data
Equipment and accessories
  Telmex Infinitum    Fixed voice
      Fixed data
Equipment and accessories
Europe
  A1    Wireless voice
      Wireless data
      Fixed voice
      Fixed data
      Pay TV
Equipment and accessories
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SERVICES AND PRODUCTS
We offer, and derive revenues from, a wide range of services and products that vary by market, including wireless voice, wireless data and value-added services, fixed voice, fixed data, broadband and ITinformation technology (“IT”) services, Pay TV, and
over-the-top
(“OTT”) services.services and sales of equipment and accessories.
Wireless Operations
In 2021,2023, our wireless voice and data operations generated revenues of Ps.549.7Ps.418.1 billion, representing 54.5%51.2% of our consolidated revenues. As of December 31, 2021,2023, our wireless operations represented approximately 78.1%80.8% of our total RGUs, the samean increase from 80.4%, as of December 31, 2020.2022.
Revenues from wireless voice services primarily include charges from monthly subscriptions, usage charges billed to customers and usage charges billed to other service providers for calls completed on our network. The primary drivers of revenues from monthly subscription charges are the number of total RGU’s and the price of our service packages. The primary drivers of revenues from usage charges are airtime, international and long-distance calls and interconnection fees.
Revenues from wireless data services primarily include charges for data, cloud, internet,
machine-to-machine,
OTT services and data center services. Revenues from value-added services, including revenues from VPN services to our corporate clients, also contribute to our results for wireless data services.
VOICE AND DATA.
Our wireless subsidiaries provide voice communication services across the countries in which they operate. We offer international roaming services to our wireless subscribers through a network of cellular service providers with which our wireless subsidiaries have entered into international roaming agreements around the world, and who provide GSM, 3G, and
4G-LTE
and 5G roaming services.
The voice and data plans are either “postpaid,” where the customer is billed monthly for the previous month, or “prepaid,” where the customer pays in advance for a specified volume of use over a specified period. Postpaid plans increased as a percentage of the wireless base from 34.0%38.0% in December 20202022 to 37.6%39.3% as of December 31, 2021,2023, while prepaid plans represented 62.4%60.7% as of December 31, 2021.2023.
Our wireless voice services are offered under a variety of plans to meet the needs of different market segments. In addition, we often bundle wireless data communications services together with wireless voice services. Our
wireless subsidiaries had approximately 286.5310 million wireless voice and data subscriberssubscriptions as of December 31, 2021.
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2023.
Prepaid customers typically generate lower levels of usage and are often unwilling or financially ineligible to purchase postpaid plans. Our prepaid plans have been instrumental to increase wireless penetration in Latin America and Eastern Europe to levels similar to those of developed markets. Additionally, prepaid plans entail little to no risk of
non-payment,
as well as lower customer acquisition costs and billing expenses, compared to the average postpaid plan.
In general, our average rates per minute of wireless voice (“ARPM”) are very competitive for both prepaid and postpaid plans. OnARPM is a measure used widely among companies in the telecommunications industry to compare the rates of voice calls of both prepaid and postpaid plans. Our average rates per minute of wireless voice used in 2021 decreased2023 increased by approximately 1.1%9.8% at constant exchange rates relative to 2020.2022. This increase is mainly driven by a decrease in number of voice minutes due to increased data usage.
In addition, the plans we offer our retail customers include selective discounts and promotions that reduce the rates our customers pay.
VALUE-ADDED SERVICES.
As part of our wireless data business, our subsidiaries offer value-added services that include Internet access, messaging and other wireless entertainment and corporate services through GSM/EDGE, 3G, and 4G LTE and 5G networks.
Internet services include roaming capability and wireless Internet connectivity for feature phones, smartphones, tablets and laptops, including data transmission,
e-mail
services, instant messaging, content streaming and interactive applications. For example, in Mexico, our website for our wireless services (www.telcel.com) through Radiomóvil Dipsa, S.A. de C.V (”Telcel“C.V. (“Telcel”), offers access to a wide range of services and content such as video, music, games and other applications, which our subscribers can access from mobile devices. In addition, we offer other wireless services, including wireless security services, mobile payment solutions,
machine-to-machine
services, mobile banking, virtual private network (”VPN“(“VPN”) services, video calls and personal communications services (”PCS“(“PCS”).
Fixed Operations
In 2021,2023, our fixed voice, data, broadband and IT solutions had revenues of Ps.272.3Ps.244.5 billion, representing 27.0%30.0% of our consolidated revenues. As of December 31, 2021,2023, our
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fixed operations represented approximately 21.9%19.2% of our total RGUs, the samea decrease from 19.6% as of December 31, 2020.2022.
Revenues from fixed voice services primarily include charges from monthly subscriptions, usage charges billed to customers and usage charges billed to other service providers for calls completed on our network. The primary drivers of revenues from monthly subscription charges are the number of total RGU’s and the price of our service packages. The primary drivers of revenues from usage charges are airtime, international and long-distance calls and interconnection fees.
Revenues from fixed data services primarily include charges for data, cloud, broadband,
machine-to-machine
and data center services. Revenues from IT solutions, including revenues from dedicated links to our corporate clients, also contribute to our results for fixed data services.
VOICE.
Our fixed voice services include local, domestic and international long-distance, under a variety of plans to meet the needs of different market segments, specifically tailored to our residential and corporate clients.
DATA.
We offer data services, including data centers, data administration and hosting services to our residential and corporate clients under a variety of plans.
BROADBAND.
We provide residential broadband access through hybrid
fiber-coaxial
(”HFC“ (“HFC”) or
fiber-optic
cable. These services are typically bundled with voice services and are competitively priced as a function of the desired or available speed. As a complement to these services, we offer a number of products such as home networking and smart home services.
IT SOLUTIONS.
Our subsidiaries provide a number of different IT solutions for small businesses and large corporations. We also providecorporations; including specific solutions to the industrial, financial, government and tourism sectors, among others.
Pay TV
We offer Pay TV through cable and satellite TV subscriptions to both retail and corporate customers under a variety of plans. As of December 31, 2021,2023, we had approximately 19.813 million Pay TV RGUs, a decrease of approximately 309242 thousand Pay TV RGUs from the prior year.
Pay TV revenues consist primarily of charges from subscription services, additional programming, including
Equipment, accessorieson-demand
programming and computer salesadvertising.
Equipment, accessories and computer sales primarily include the sale of handsets, accessories and other equipment.
Other Services
Other services include other businesses such as telephone directories, call center services, wireless security services, advertising, media and software development services.
OTT Services
We sell video, audio and other media content that is delivered through the internet directly from the content provider to the viewer or end user. Our most important service is ClaroVideo, an
on-demand
internet streaming video provider with more than 20,90032,000 content titles sold across all the Latin American and Caribbean markets in which we operate. We offer bundled packages of ClaroVideo, which may include:
 
Subscription video on demand, providing unlimited access to aour entire catalogue of over 20,900content titles for a fixed monthly subscription fee;
Transactional video on demand and electronic sell-through, offering the option to rent or buy new content releases; and
Add-on
services such as subscription and other OTT services through a platform payment system, including access to FOX, HBO, Noggin and Paramount+, among others.
We also offer an advertised and unlimited music streaming and downloading service in 1615 countries in Latin America and Europe through ClaroMúsica, with access to approximately 50100 million titlessongs across all music genres.
Sales of Equipment and Accessories
Sales of equipment and accessories, and associated revenues, include the sale of handsets, accessories, IoT devices, and other equipment such as smart devices.
Other Services
14
Other services, and revenues from such services, include other businesses such as software development, call center services, entertainment content and news, telephone directories, advertising, cybersecurity services, mobile banking and corporate IT solutions.
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Services and Products by Country
The following table is a summary of our principal services rendered and products produced as of December 31, 20212023, in the countries in which we operate.
 
   
WIRELESS VOICE, DATA AND
VALUE ADDED SERVICES
(1)
  
FIXED VOICE, BROADBAND,DATA, BROAD-
DATABAND, AND IT SERVICES
(2)
  
PAY TV
  
OTT SERVICES
(3)
Argentina
  
🌑
  
🌑
  
🌑
  
🌑
Austria
  
🌑
  
🌑
  
🌑
  
🌑
Belarus
  
🌑
  
🌑
  
🌑
  
🌑
Brazil
  
🌑
  
🌑
  
🌑
  
🌑
Bulgaria
  
🌑
  
🌑
  
🌑
  
🌑
Chile
🌑
🌑
🌑
🌑
Colombia
  
🌑
  
🌑
  
🌑
  
🌑
Costa Rica
  
🌑
  
🌑
  
🌑
  
🌑
Croatia
  
🌑
  
🌑
  
🌑
  
🌑
Dominican Republic
  
🌑
  
🌑
  
🌑
  
🌑
Ecuador
  
🌑
  
🌑
  
🌑
  
🌑
El Salvador
  
🌑
  
🌑
  
🌑
  
🌑
Guatemala
  
🌑
  
🌑
  
🌑
  
🌑
Honduras
  
🌑
  
🌑
  
🌑
  
🌑
North Macedonia
  
🌑
  
🌑
  
🌑
  
🌑
Mexico
  
🌑
  
🌑
    
🌑
(4)
 
Nicaragua
  
🌑
  
🌑
  
🌑
  
🌑
Panama
🌑
🌑
🌑
🌑
Paraguay
  
🌑
  
🌑
  
🌑
  
🌑
Peru
  
🌑
  
🌑
  
🌑
  
🌑
Puerto Rico
  
🌑
  
🌑
  
🌑
  
🌑
Serbia
  
🌑
      
🌑
Slovenia
  
🌑
  
🌑
  
🌑
  
🌑
Uruguay
  
🌑
      
🌑
(1)
Includes voice communication and international roaming services, interconnection and termination services, SMS, MMS,
e-mail,
mobile browsing, entertainment and gaming applications.
(2)(2
  Includes
)
Fixed voice includes local calls, national and international long distance.long-distance.
(3)
Includes ClaroVideo and ClaroMúsica.
(4)
Services provided by
non-concessionaire
subsidiaries.
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Our networks are one of our main competitive advantages. Today, we own and operate one of the largest integrated platforms based on our covered population across 1715 countries in Latin America, and we are expanding our network in Europe.
INFRASTRUCTURE
For the year ended December 31, 2021,2023, our capital expenditures totaled Ps.158.1Ps.156.3 billion, which allowed us to increase our network, to expand our capacity and to upgrade our systems to operate with the latest technologies. With fully convergent platforms, we are able to deliver high-quality voice, video and data products.
As of December 31, 2021,2023, the main components of our infrastructure were comprised of:
 
Cell sites:
102,818
110,824 sites with 2G, 3G, and 4G and/or 5G technologies across Latin America and Europe. Tower space for our cell sites is a combination of towers we own and tower spaces leased from third parties. Additionally, weWe have been expanding our coverage and improving quality and speed with a number of street cells and indoor solutions. Our Board of Directors and Stockholders’ Meeting have approved aOn August 8, 2022, we completed the
spin-off
to Sitios Latam of our telecommunications towers and other related passive infrastructure in Latin America outside of Mexico.Mexico, Colombia and our telecommunications towers existing in the Dominican Republic and Peru prior to the
spin-off.
Between February and July 2023, we completed the sale of all of our telecommunications towers in the Dominican Republic and Peru. See “Acquisitions, Other Investments and Divestitures.”
 
Fiber-optic network:
More than 1,0351.3 million km. Our network passedreached approximately 88102 million homes.
 
Submarine cable systems:
Capacity in more than 197 thousand km of submarine cables, including the
AMX-1
submarine cable that extends 18,30018.3 thousand km and connects the United States to Central and South America with 13 landing points and also the South Pacific Submarine Cable that extends 7,3007.3 thousand km along the Latin American Pacific coast, connecting Guatemala, Ecuador, Peru and Chile with 5five landing points. Both systems provide international connectivity to all of our subsidiaries in these geographic areas.
 
Satellites:
Five. Star One S.A. (“Star One”) has the most extensive satellite system in Latin America, with a fleet that covers the United States, Mexico, Central America and South America. We use these satellites to supply capacity for DTH services for Claro TV throughout Brazil and in other DTH Operations, as well as cellular backhaul, video broadcast and corporate data networks.
Data centers:
32.
43. We use our data centers to manage a number of cloud solutions, such as Infrastructure as a
Service (“IAAS”), Software as a Service (“SAAS”), security solutions and unified communications.
TECHNOLOGY
Our primary wireless networks use GSM/EDGE, 3G, and 4G LTE and 5G technologies, which we offer in most of the countries where we operate. We aim to increase the speed of transmission of our data services and have been expanding our 3G and 4G LTE5G coverage. We have begunIn 2022, we began our 5G rollout in some countries.countries in the Latin America region. In February 2022, we launched 5G in Mexico through Telcel, which iswas the largest data infrastructure deployment in Latin America. At launch,As of December 31, 2023 we cover 18 cities in the country and by endcovered close to 50% of the year we will cover 120 cities.population in Mexico and Brazil with 5G services.
We transmit wireless calls and data through radio frequencies that we use under spectrum licenses. Spectrum is a limited resource, and, as a result, we may face spectrum and capacity constraints on our wireless network. We continue to invest significant capital in expanding our network capacity and reach and to address spectrum and capacity constraints on a
market-by-market
basis.
The table below presents a summary of the population covered by our network, by country, as of December 31, 2021.2023.
 
GENERATION TECHNOLOGY
 
   
GSM
  
UMTS
  
LTE
  
5G
   
(% of covered population)
   
Argentina
   99   98   97   - 
Austria
   100   96   99   62
Belarus
   100   100   0   - 
Brazil
   94   95   87   17
Bulgaria
   100   100   99   52
Chile
   97   97   98   - 
Colombia
   91   80   73   - 
Costa Rica
   85   86   96   - 
Croatia
   99   99   99   13
Dominican Republic
   100   99   97   6
Ecuador
   96   80   78   - 
El Salvador
   91   88   87   - 
Guatemala
   89   89   88   - 
Honduras
   81   82   72   - 
Macedonia
   100   100   99   - 
Mexico
   94   95   93   - 
Nicaragua
   72   72   50   - 
Panama
   82   90   86   - 
Paraguay
   77   80   83   - 
Peru
   88   83   83   18
Puerto Rico
   82   94   99   49
Serbia
   99   98   98   - 
Slovenia
   100   100   99   19
Uruguay
   100   99   98   - 
GENERATION TECHNOLOGY
                
   
GSM
   
UMTS
   
LTE
   
5G
 
   (% of covered population) 
Argentina
   99.29    98.30    97.74    - 
Austria
   99.99    95.20    98.67    90.50 
Belarus
   99.90    99.90    -    - 
Brazil
   95.38    96.74    96.60    45.82 
Bulgaria
   99.83    99.92    99.44    82.64 
Colombia
   90.23    90.11    87.20    - 
Costa Rica
   90.74    96.74    97.01    - 
Croatia
   99.00    99.00    98.90    92.30 
Dominican Republic
   99.12    98.75    89.63    53.36 
Ecuador
   96.03    81.80    80.83    - 
El Salvador
   82.19    96.31    89.95    - 
Guatemala
   88.44    90.50    88.46    28.51 
Honduras
   73.93    81.87    75.08    - 
North Macedonia
   99.80    99.90    99.20    99.50 
Mexico
   95.44    96.56    93.96    49.46 
Nicaragua
   71.75    79.36    78.49    - 
Paraguay
   76.89    80.76    83.63    - 
Peru
   88.03    85.15    85.52    25.70 
Puerto Rico
   -    96.95    99.26    90.65 
Serbia
   99.80    98.00    99.50    - 
Slovenia
   99.90    -    99.30    80.00 
Uruguay
   99.52    99.23    98.65    - 
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LOGO
We operate in an intensely competitive industry. Competitive factors within our industry include pricing, brand recognition, service and product offerings, customer experience, network coverage and quality, development and deployment of technologies, availability of additional spectrum licenses and regulatory developments.
Our principal competitors differ, depending on the geographical market and the types of service we offer. We compete against other providers of wireless, broadband and Pay TV that operate on a multi-national level, such as AT&T Inc., Teléfonica and Millicom, as well as various providers that operate on a nationwide level, such as Telecom Argentina in Argentina and Telecom Italia in Brazil.
Competition remains intense as a result of saturation in the fixed and wireless market, increased network investment by our competitors, the development and deployment of new technologies, the introduction of new products and services, new market entrants, the availability of additional spectrum, both licensed and unlicensed, and regulatory changes.
The effects of competition on our subsidiaries depend, in part, on the size, service offerings, financial strength and business strategies of their competitors, regulatory developments and the general economic and business climate in the countries in which they operate, including demand growth, interest rates, inflation and exchange rates. The effects could include loss of market share and pressure to reduce rates. See “Regulation” under Part VI and “Risk Factors” under Part III of this annual report.
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LOGO
Geographic diversification has been a key to our financial success, as it has provided for greater stability in our cash flow and profitability and has contributed to our strong credit ratings. In recent years, we have been evaluating the expansion of our operations to regions outside of Latin America. We believe that Europe and other areas beyond Latin America present opportunities for investment in the telecommunications sector that could benefit us and our shareholders over the long term.
We continue to seek ways to optimize our portfolio, including by finding investment opportunities in telecommunications and related companies worldwide, including in markets where we are already present, and we often have several possible acquisitions under consideration. We may pursue opportunities in Latin America or in other areas in the world. Some of the assets that we acquire may require significant funding for capital expenditures. We can give no assurance as to the extent, timing or cost of such investments. We also periodically evaluate opportunities for dispositions, in particular for businesses and in geographies that we no longer consider strategic. The following are recentRecent developments relatingrelated to acquisitions, other investments and divestitures:divestitures include:
On September 13, 2020, we entered into an agreement to sell our wholly-owned subsidiary TracFone to Verizon. On November 23, 2021, we completed the sale of TracFone to Verizon. We received the closing consideration of U.S.$3,625.7 million in cash, which included U.S.$500.7 million of customary adjustment for TracFone’s cash and working capital and 57,596,544 shares of Verizon’s common stock, par value U.S.$0.10 per share. Verizon has asserted post-closing claims under the adjustments and other provisions of this agreement, which may result in payments by us. Subject to TracFone continuing to achieve certain operating metrics
(earn-out),
Verizon will be required pay up to an additional U.S.$650 million of cash consideration within two years from November 23, 2021.
In December 2020, our Brazilian subsidiary, Claro S.A. (“Claro Brasil”), together with two other offerors,purchasers, won a competitive bid to acquire the mobile business owned by Oi Group in Brazil. Pursuant to the transaction, Claro Brasil will pay R$3.6 billion for 32% of Oi Group’s mobile business and approximately 4.7 thousand mobile access sites (representing 32% of Oi Group’s mobile business access sites). Claro Brasil also committed to enter into long term
 
a competitive bid to acquire the mobile business owned by Oi Group in Brazil. Pursuant to the transaction, Claro Brasil paid R$3.6 billion for 32.0% of Oi Group’s mobile business. Claro Brasil also committed to enter into long term agreements with Oi Group for the supply of data transmission capacity. This transaction closed on April 20, 2022. The final purchase price for the acquisition was Ps.14.2 billion, net of cash acquired, of which an amount of Ps.1.3 billion was withheld for price adjustment purposes and other conditions, in accordance with the purchase agreement. Additionally, Claro Brasil received Ps.781 million during the twelve months following April 20, 2022, for transition services. On October 4, 2023, Claro Brasil and the two other purchasers reached an agreement on the value of a post-purchase price adjustment, pursuant to which Ps.658 million was paid to Oi Group. The post-purchase price adjustment corresponds to 50% of the Ps.1.3 billion withheld at closing for price adjustment purposes plus interest and monetary correction of Ps.155.7 million. All issues and disputes between the Oi Group, Claro Brasil and the two other purchasers relating to the determination of the acquisition price are now concluded.
On August 8, 2022, we completed the
spin-off
In February 2021, our Board of Directors approved a plan to spin off our telecommunications towers and other related passive infrastructure in Latin America outside of Mexico. The
spin-off
was approved by our shareholders in an extraordinary shareholders’ meeting on September 29, 2021. In the
spin-off
and the associated corporate restructuring, we will contribute to Sitios a portion of our capital stock, assets and liabilities, mainly consisting of the shares of our subsidiaries holding telecommunications towers and other associated infrastructure in Latin America outside of Mexico, other than Colombia and our telecommunications towers existing in Peru prior to the
spin-off.
This operation is intended to maximize the infrastructure’s value, as the resulting entity, to be named Sitios Latinoamérica, S.A.B. de C.V. (“Sitios”), will be separate from América Móvil and will have its own management and personnel, who will be exclusively focused on developing, building and leasing telecommunications towers for wireless services. We will have master services agreements with subsidiaries of Sitios under which we will have access to and use of the tower space to provide wireless services. Completion of the
spin-off
is subject to the fulfillment of conditions that are typical in these type of transactions, as well as the implementation of several previous steps in several of the countries involved in the transaction, including receipt of confirmation from the Mexican Tax Administration Service (
Servicio de Administración TributariaDominican Republic prior to
) that the
spin-off
and the transactions contemplated thereby, among other things, comply with all requirements under Mexican tax law and regulations so that the
spin-off
and the corporate reorganization arising from it are considered neutral for Mexican tax purposes, and the receipt of all necessary approvals in the applicable countries and the expiration of all legal or statutory waiting periods for its effectiveness in all applicable countries, all of which are outside of our control.
On September 15, 2021, we announced that we entered into an agreement with Cable & Wireless Panama, S.A., an affiliate of Liberty Latin America LTD., to sell 100% of our interest in our subsidiary Claro Panama, S.A. The transaction excludes (i) all telecommunication towers owned indirectly by América Móvil in Panama and (ii) the Claro trademarks. The agreed purchase price is U.S.$200 million on a cash/ debt free basis. The closing of the transaction is subject to customary conditions for this type of transactions, including obtaining required governmental approvals, and we expect closing to occur during the first half of 2022.
1819


 
the spin off. As part of the
spin-off
and the associated corporate restructuring, we contributed to Sitios Latam a portion of our capital stock, assets and liabilities, mainly consisting of the shares of our subsidiaries holding telecommunications towers and other associated infrastructure in Latin America outside of Mexico, other than Colombia and our telecommunications towers existing in Peru and in the Dominican Republic prior to the
spin-off.
The shares of Sitios Latam began trading on the Mexican Stock Exchange on September 29, 2022. On February 3, 2023, we completed the sale of all of our telecommunications towers owned by our subsidiary in the Dominican Republic to Sitios Latam for an amount of Ps.2.4 billion. Between March and July 2023, we completed the sale of all of our telecommunication towers owned by our subsidiary in Peru to Sitios Latam for an amount of Ps.4.0 billion. In total, 4,592 telecommunications towers were transferred pursuant to these two transactions in 2023.
On September 29, 2021,October 6, 2022, we announcedentered into an agreement with Liberty Latin America LTD. to combine our respectiveChilean operation, Claro Chile, with the Chilean operations of LLA, VTR, Communicaciones SpA (“VTR”to form a 50:50 joint venture, ClaroVTR, which we previously announced on September 29, 2021. On December 26, 2023, we announced our entry into a transaction agreement (the “Claro Chile Transaction Agreement”) with LLA, ClaroVTR and certain of our and LLA’s affiliates and an amended shareholders agreement to amend ClaroVTR’s governance structure. Pursuant to the Claro Chile Transaction Agreement, we agreed with LLA to, formcollectively in proportion to our respective shareholding interests or individually, provide additional capital to ClaroVTR, during the calendar year 2023 and through June 30, 2024 in an aggregate amount not to exceed CLP$972.4 billion (Ps.18.7 billion) (the “Commitment”). This Commitment seeks to support the execution of the business plan of ClaroVTR, and CLP$289.3 billion (Ps.5.6 billion) of the Commitment aims to permit the refinancing of certain bank debt guaranteed by the Company and existing at the formation of ClaroVTR. The Claro Chile Transaction Agreement provides us and LLA with an exercisable
catch-up
right on or before August 1, 2024 to cure any failure to fund our or LLA’s respective portions of the Commitment in order to maintain ClaroVTR as a
50-
50:50 joint venture. As of December 31, 2023, we have purchased notes from ClaroVTR with an aggregate principal amount of CLP$742.1 billion (Ps.14.3 billion) (including the amounts used for the refinancing of bank debt) that are convertible into shares of ClaroVTR. In September 2023, we identified impairment indicators and assessed that there is objective evidence that ClaroVTR is impaired. As a result, an amount of Ps.4.7 billion was recorded as the difference between the recoverable amount of ClaroVTR and its carrying value. Additionally, as of December 31,
2023, we recorded an impairment relating to purchased convertible notes from ClaroVTR totaling Ps.12.2 billion. Both amounts are recorded in the “valuation of derivatives, interest cost from labor obligations and other financial items” caption of the consolidated statements of comprehensive income in our audited consolidated financial statements. See Note 22 to our audited consolidated financial statements.
On February 6, 2023, we entered into a definitive agreement with Österreichische Beteiligungs AG (“OBAG”) with respect to OBAG’s and América Móvil’s participations in Telekom Austria AG (“Telekom Austria” or “TKA”) (the “TKA Shareholders Agreement”), which became effective on February 6, 2023. The proposed transaction combinesTKA Shareholders Agreement provides a new
10-year
term from February 2, 2023 and ensures América Móvil’s leadership and control over Telekom Austria Group by providing América Móvil with the complementary operationsright to nominate the majority of VTR, a leading providerTelekom Austria Group’s supervisory board members and to nominate the chairman and chief executive officer of high-speed consumer fixed products, such as broadband and Pay TV services, where it connects close to 3 million subscribers nationwide, and Claro Chile, one of Chile’s leading telecommunications service providersTelekom Austria Group’s management board with the decision-making vote over 6.5 million mobile customers. Completionall management decisions. As part of the transaction is subjectrenewal of the TKA Shareholders Agreement, América Móvil and OBAG agreed to certain customary closing conditions,firmly support the
spin-off
of the mobile towers in most of the countries in which TKA operates, including obtaining required regulatory approvals,Austria. In furtherance of the foregoing, we procured a
500 million, five-year bullet loan on behalf of EuroTeleSites AG (“EuroTeleSites”), the company designated to own TKA’s towers after the
spin-off.
On July 6, 2023, EuroTeleSites launched a
500 million 5.25% five-year bond. The five-year bullet loan and we expect closingfive-year bond were designed to occur duringensure EuroTeleSite’s full funding at the second halftime of 2022.the tower spin-off. The
spin-off
of TKA’s tower business, in all countries in which TKA operates, other than Belarus, was approved by the shareholders of TKA in an extraordinary shareholders’ meeting on August 1, 2023. On September 22, 2023, TKA completed the
spin-off
of its telecommunications towers and other related passive infrastructure in all countries in which TKA operates, other than Belarus, and listed the shares of EuroTeleSites on the Vienna Stock Exchange. As part of the
spin-off,
TKA contributed to EuroTeleSites net total assets of
290 million in the form of capital stock, assets and liabilities, mainly consisting of the shares of TKA’s subsidiary. Both of TKA and EuroTeleSites are indirect subsidiaries of América Móvil over which América Móvil retains a controlling interest.
For additional information on our acquisitions and investments, see Note 12 to our audited consolidated financial statements included in this annual report.
19
20

LOGO
MARKETING
We advertise our services and products through different channels with consistent and distinct branding and targeted marketing. We advertise via print, radio, television, digital media, sports event sponsorships and other outdoor advertising campaigns. In 2021,2023, our efforts were mainly focused on promoting our 4.5G LTE5G services, our fiber optic rollout, leveraging the speed and quality of our networks and our fixed bundled offers, which compete on broadband speed and premium content.
We build on the strength of our well-recognized brand names to increase consumer awareness and customer loyalty. Building brand recognition is crucial for our business, and we have managed to position our brands as those of a premium carrier in most countries where we operate. According to the 20212023 Brand Finance Telecom 150 report, Claro and Telcel rankranked among the top thirty and top fifty strongest brands, respectively, in the telecom sector worldwide. Also, in the Brand Finance Latin America report Claro was named the most valuable telecom brand and ranked as the third most valuable brand in the Latin America region andregion. Kantar BrandZ named Telcel one ofas the top ten strongest brands.most valuable brand in Mexico. In addition, a
year-end
20212023 study by Austrian Brand Monitor found that A1, the brand name behind Telekom Austria, AG (“Telekom Austria” or “TKA”), ranked number one in the Austrian telecommunications market for brand preference.
SALES AND DISTRIBUTION
Our extensive sales and distribution channels help us attract new customers and develop new business opportunities. We primarily sell our services and products through a network of retailers and service centers for retail customers and a dedicated sales force for corporate customers, with more than 402,000380,000 points of sale and more than 3,3003,350 customer service centers. Our subsidiaries also sell their services and products online.
CUSTOMER SERVICE
We give priority to providing our customers with quality customer care and support. We focus our efforts on constantly improving our customers’ experience by leveraging our commercial offerings and our sales and distribution networks. Customers may make inquiries by calling a toll-free telephone number, accessing our subsidiaries’ web sites and social media accounts or visiting one of the customer sales and service centers located throughout the countries we serve.
20

21

22
LOGO

LOGO


Discontinued Operations
On November 23, 2021, we completed the sale of our U.S. operations to Verizon, as previously disclosed in our press release furnished on a report on Form
6-K
on November 23, 2021. As a result of the sale of TracFone, in accordance with IFRS 5, the operations of TracFone are classified as discontinued operations for the reporting periods prior to 2022 presented in the consolidated financial information included in this annual report. Accordingly, results are presented in the “profit (loss) after tax for the year from discontinued operations” in the consolidated financial information included in this annual report. Operating and financial information presented herein therefore excludes TracFone, including for periods prior to the sale.
On July 1, 2022, we completed the sale of our Panamanian operations to Cable & Wireless Panama, S.A., an affiliate of LLA, as previously disclosed in our press release furnished on a report on Form
6-K
on July 1, 2022. As a result of the sale of Claro Panama, in accordance with IFRS 5, the operations of Claro Panama are classified as discontinued operations for the reporting periods prior to 2023 presented in the consolidated financial information included in this annual report. Accordingly, where applicable, results are presented in the “profit (loss) after tax for the year from discontinued operations” in the consolidated financial information included in this annual report. Operating and financial information presented herein therefore excludes Claro Panama, including for periods prior to the sale.
On October 6, 2022, we entered into an agreement to combine our Chilean operations with LLA in order to create ClaroVTR, a 50:50 joint venture, as a result of which Claro Chile ceased to be our wholly owned subsidiary, as previously disclosed in our press release furnished on a report on Form
INTRODUCTION6-K
on October 6, 2022. In accordance with IFRS 11, this transaction was classified as a joint venture, since we exercise joint control over ClaroVTR with LLA, and all relevant decisions require the consent of both parties. As a result of the incorporation of the ClaroVTR as a joint venture, in accordance with IFRS 5, the operations of Claro Chile are classified as discontinued operations for the reporting periods prior to 2023 presented in the consolidated financial information included in this annual report and are recognized through the equity method from October 6, 2022. Accordingly, where applicable, results are presented in the “profit (loss) after tax for the year from discontinued operations” in the consolidated financial information included in this annual report. Operating and financial information presented herein therefore excludes Claro Chile, including for periods prior to the joint venture agreement.
Effects of the
COVID-19
Pandemic
The unprecedented health crisis arising from the
COVID-19
pandemic has resulted in a severe global economic downturn and has caused significant volatility, uncertainty, and disruption. We continue to monitor the evolution of the
COVID-19
pandemic in the countries where we operate to take preventive measures to ensure the continuity of operations and safeguard the health and safety of our personnel and customers.
During 2021, there were lockdowns and other measures implemented to control the spread of
COVID-19
in our region of operations, resulting in the closure of shops and customer-care centers, the imposition of constraints on the mobility of our clients and the disruption of our supply chain for handsets and other equipment. In order to mitigate the effects of supply-chain disruption and handset scarcity, we began ordering excess quantities of handsets in each country in which we operate in October, November and December of 2021. Most major smartphone manufacturers were able to respond to our increased handset orders.
Our investments in capital expenditures are expected to return to
pre-pandemic
levels in 2022.
Segments
We have operations in 2422 countries, which are aggregated for financial reporting purposes into ten reportable segments. Our operations in Mexico are presented in two segments—Mexico Wireless and Mexico Fixed, which consist principallymainly of Telcel and Telmex, respectively. Our headquartersheadquarters’ operations are allocated to the Mexico Wireless segment. Our operations in the Southern Cone are presented in two segments, Argentina, and Uruguay and Paraguay. Financial information about our segments is presented in Note 23 to our audited consolidated financial statements included in this annual report.
The factors that drive our financial performance differ in the various countries where we operate, including subscriber acquisition costs, the competitive landscape, the regulatory environment and economic factors, and interconnection rates, among others. Accordingly, our results of operations in each period reflect a combination of these effects on our different segments.
Constant Currency Presentation
Our financial statements are presented in Mexican pesos, but our operations outside Mexico account for a significant portion of our operating revenues. Currency variations between the Mexican peso and the currencies of our
non-Mexican
subsidiaries, especially the Euro, U.S. dollar, Brazilian real, Colombian peso and Argentine peso, affect our results of operations as reported in Mexican pesos. In the following discussion regarding our operating results, we include a
discussion of the change in the different components of our revenues between periods at constant exchange rates, i.e., using the same exchange rate from the year end of the prior fiscal year to translate the local-currency results of our
non-Mexican
operations for both periods. We believe that this additional information helps investors better understand the performance of our
non-Mexican
operations and their contribution to our consolidated results.
All comparisons at constant exchange rates in our consolidated figures exclude Argentina.
Our Argentine subsidiary is subject to the accounting guidelines applicable to hyperinflationary economies, with all the accounting variables expressed in real terms at constant Argentine pesos. Pursuant to IFRS rules, for consolidation purposes in our consolidated financial statements—with no other economy considered hyperinflationary—Argentine peso figures expressed in constant Argentine peso terms at the prevailing prices at the end of a reporting period must be converted into Mexican pesos at the exchange rate observed at the end of such reporting period. Due to hyperinflationary conditions in Argentina and the magnitude of the Argentine peso’s depreciation, the application of the above-referenced norm generates unusual effects. Therefore, we exclude Argentina from all consolidated figures cited at constant exchange rates.
24

LOGO
Effects of Exchange Rates
Our results of operations are affected by changes in currency exchange rates. In 20212023 compared to 2020,2022, the Mexican peso was stronger against someseveral of our operating currencies, including the U.S. Dollar, the Euro, the Brazilian real and the Euro.Colombian peso.
Since most of our debt is issued by América Móvil out of Mexico, to the extent that our functional currency, the Mexican peso, appreciates or depreciates against the currencies in which our indebtedness is denominated, we may incur foreign exchange gains or losses that are recorded as other comprehensive incomeforeign currency exchange (loss) gain, net in our consolidated statements of financial position.comprehensive income.
Changes in exchange rates also affect the fair value of derivative financial instruments that we use to manage our currency-risk exposure, which are generally not accounted for as hedging instruments. In 2021,2023, the Mexican peso strengthened against the currencies in which most of our indebtedness is denominated, and we recorded net foreign exchange lossesgains of Ps.17.0Ps.14.7 billion and net fair value losses on derivatives of Ps.6.8.Ps.10.3 billion. In 2020,2022, the Mexican peso weakenedstrengthened against the currencies in which most of our indebtedness is denominated, and we recorded net foreign exchange lossesgains of Ps.65.4Ps.20.8 billion and net fair value gainslosses on derivatives of Ps.12.4Ps.28.6 billion. See Note 7 to our audited consolidated financial statements included in this annual report.
Effects of Regulation
We operate in a regulated industry. Our results of operations and financial condition have been, and will continue to be, affected by regulatory actions and changes. Significant regulatory developments are presented in more detail in “Regulation” under Part VI and “Risk Factors” under Part III of this annual report.
Comparison of Results of Operations Between 20202022 and 20192021
Discussions of year-over-year comparisons between 20202022 and 20192021 that are not included in this report can be found in under Part II, Operating“Operating and Financial Review and ProspectsProspects” of our Form
20-F
for the fiscal year ended December 31, 20202022, as filed on April 29, 2021.May 1, 2023 (File
No. 001-16269).
Due to classifying Claro Panama’s and Claro Chile’s operations as discontinued operations for all years prior to 2023 presented in the consolidated financial information included in this report, the year-over-year comparisons presented in our Form
20-F
for the fiscal year ended December 31, 2022, as filed on May 1, 2023, may not align with the figures presented herein for the same periods.
23

Composition of Operating Revenues
In 2021,2023, our total operating revenues were Ps.855.5.
RevenuesPs.816.0 billion. Our operating revenues are derived from the sale of wireless and fixed voice services, primarily include charges from monthly subscriptions, usage charges billed to customers and usage charges billed to other service providers for calls completed on our network. The primary drivers of revenues from monthly subscription charges are the number of total RGUs and the prices of our service packages. The primary driver of revenues from usage charges (airtime, international and long- distance calls and interconnection costs) is traffic, which is represented by the number of total RGUs and their average usage.
Revenues from wireless and fixed data services, primarily include charges for data, cloud, internet,
machine-to-machine,
including OTT services, and data center services. In addition, revenues from value-added services and IT solutions, including revenues from dedicated links and VPN services to our corporate clients, also contribute to our results for wireless and fixed data services.
Pay TV, revenues consist primarily of charges from subscription services, additional programming, including
on-demand
programming and advertising.
Equipment, accessories and computer sales revenues primarily include revenues from the sale of handsets,equipment, accessories and other equipment such as smart devices. Mostservices. For more information, see “Operating and Financial Review and Prospects—Results of our sales in handsets are driven by the numberOperations” under Part II of new customers and contract renewals.
Other services primarily include revenues from software and system development, call center services, entertainment content and news, telephone directories, advertising, cybersecurity services, mobile banking and corporate IT solutions.this annual report.
Seasonality of our Business
Our business is subject to a certain degree of seasonality, characterized by a higher number of new customers during the fourth quarter of each year. We believe this seasonality is mainly driven by the Christmas shopping season. Revenue also tends to decrease during the months of August and September, when family expenses shift towards school supplies in many of the countries in which we operate, mainly Mexico.
General Trends Affecting Operating Results
Our results of operations in 20212023 reflected several continuing long-term trends, including:
intense competition, with growing costs for marketing and subscriber acquisition and retention, as well as declining customerincreasing service prices;
developments in the telecommunications regulatory environment;
growing demand for data services over fixed and wireless networks, as well as for smartphones and devices with stronger data service capabilities;
declining demand for voice services;
declining demand for traditional Pay TV services;
increasing capital expenditures in line with our historical capital expenditure levels after a decrease in capital expenditures in 2020 duelinked to pressures from the
COVID-19higher demand for connectivity;
pandemic;
our continued strategic focus on controlling operating costsour cost savings programs in view of pressures from costs of customer care, the growing size and complexity of our infrastructure and general price inflation; and
instability in economic conditions caused by political uncertainty, inflation and volatility in financial markets and exchange rates.
These trends are broadly characteristic of our businesses in all regions in recent years, and they have affected comparable telecommunications providers as well.
2425


CONSOLIDATED RESULTS OF OPERATIONS FOR 20212023 AND 20202022
As described above under “Constant Currency Presentation,” due to hyperinflationary conditions in Argentina, for comparative purposes, our consolidated results of operations at constant exchange rates exclude Argentina.
Operating Revenues
Total operating revenues for 2021 increased2023 decreased by 1.9%3.4%, or Ps.15.8Ps.28.5 billion, over 2020.2022. At constant exchange rates, total operating revenues for 20212023 increased by 7.8%5.1% over 2020.2022. This increase at constant exchange rates principally reflects an increase in
one-off
items including the impact of the sale of towers by our subsidiary Telmex mobile service revenues and an increasea favorable trend in equipment sales and handset financing revenues,fixed services, partially offset by a decrease in fixed voice and Pay TV service revenues.
SERVICE REVENUES.
Service revenues for 2021 increased2023 decreased by 0.8%3.3%, or Ps.5.8Ps.23.8 billion, over 2020.2022. At constant exchange rates, service revenues for 20212023 increased by 6.8%5.2% over 2020.2022. This increase at constant exchange rates principally reflects increases in revenues from our prepaid and postpaid mobile services, fixed broadband and corporate services networks, which were partially offset by a decrease in revenues from our fixed voice and Pay TV services.
SALES OF EQUIPMENT.
Sales of equipment revenues for 2021 increased2023 decreased by 7.7%3.5%, or Ps.10.1Ps.4.7 billion, over 2020.2022. At constant exchange rates, sales of equipment revenues for 20212023 increased by 12.8%4.6% over 2020.2022. This increase at constant exchange rates principally reflects higher sales of smartphones, data-enabled devices and accessories.accessories in Brazil, Mexico, Austria, Colombia and Ecuador, which were partially offset by lower sales in Central America and Peru.
Operating Costs and Expenses
TOTAL OPERATING COSTS AND EXPENSES.
Total operating costs and expenses for 20212023 decreased by 0.9%3.6%, or Ps.4.8Ps.18.6 billion, over 2020.2022. At constant exchange rates, total operating costs and expenses for 20212023 increased by 4.9%4.8% over 2020.2022. This increase in operating costs and expenses at constant exchange rates principally reflects increased costs associated with electric energy, network maintenance, infrastructure, lease space, IT and electric energy costs and certain
one-off
items, including a
write-off
of certain uncollectible accounts.logistics.
COST OF SALES AND SERVICES.
Cost of sales and services increaseddecreased by 1.8%4.3%, or Ps.6.2Ps.14.1 billion, over 2020.2022. At constant exchange rates, cost of sales and services for 20212023 increased by 7.3%3.9% over 2020.2022. This increase in costs of sales and services at constant exchange rates principally reflects an increase in sales of
higher-end
smartphones and handset financing plans as well as, increased electric energy costs,
corporate network, IT services and network maintenance infrastructure, lease space and electricity costs. This increase which was also due to inflationary pressures, was partially offset by the success of our continued cost savings program.
COMMERCIAL, ADMINISTRATIVE AND GENERAL EXPENSES.
Commercial, administrative and general expenses for 20212023 decreased by 5.8%3.6%, or Ps.11.1Ps.6.5 billion, over 2020.2022. As a percentage of operating revenues, commercial, administrative and general expenses were 21.1%21.2% for 2021,2023, the same as compared to
22.9% for 2020.2022. At constant exchange rates, commercial, administrative and general expenses for 20212023 increased by 0.7%5.1% over 2020.2022. This increase in commercial, administrative and general expenses at constant exchange rates principally reflects one-off items, including a
write-off
the recognition of certain uncollectible accounts, which decreased our balance of expenditures.increased expenses for frequency
rights-of-use
(i.e.,
concessions), improvements to customer service centers and advertising.
OTHER EXPENSES.
Other expenses for 20212023 increased by Ps.0.1Ps.2.0 billion over 2020.2022, principally due to the cost of sales of towers in Peru and the Dominican Republic.
DEPRECIATION AND AMORTIZATION.
Depreciation and amortization for 20212023 decreased by 0.03%4.3%, or Ps.0.1Ps.6.8 billion, over 2020.2022. As a percentage of operating revenues, depreciation and amortization were 19.0%18.6% for 2021, as compared to 19.4% for 2020.2023, a decrease of 0.2% over 2022. At constant exchange rates, depreciation and amortization for 20212023 increased by 8.5%8.3% over 2020.2022. This increase principally reflectsin depreciation and amortization expenses resulting from the revaluationat constant exchange rates principally reflects higher amortization of the passive infrastructure
rights-of-use
for towers owned by Sitios Latam, higher capital expenditures in Brazil, our acquisition of the telecommunications towers, which became effective as32.0% of December 31, 2020.Oi Group’s mobile business in Brazil in April 2022 and amortization of 5G license payments.
Operating Income
Operating income for 2021 increased2023 decreased by 14.2%1.8%, or Ps.20.6Ps.3.1 billion, over 2020.2022. Operating margin (operating income as a percentage of operating revenues) was 19.4%20.6% for 2021, as compared to 17.3% for 2020.2023, which represented an increase of 0.3% over 2022.
Non-Operating
Items
NET INTEREST EXPENSE.
Net interest expense (interest expense less interest income) for 20212023 decreased by 4.2%, or Ps.1.4Ps.1.5 billion, over 2020.2022. This decrease principally reflects a decrease in interest expense on lease liabilities and a decreasedebt due to changes in interest on debt.rates in Brazil.
FOREIGN CURRENCY EXCHANGE LOSSES,GAIN, NET.
NET. We recorded a net foreign currency exchange lossgain of Ps.17.0Ps.14.7 billion for 2021,2023, compared to our net foreign currency exchange lossgain of Ps.65.4Ps.20.8 billion for 2020. The loss2022. This decrease principally reflects the appreciationdepreciation of somecertain
26


currencies against the currenciesMexican Peso, in which our indebtedness is denominated, particularly, the U.S. dollar, the euro and the U.S. dollar.British pound sterling.
VALUATION OF DERIVATIVES, INTEREST COST FROM LABOR OBLIGATIONS AND OTHER FINANCIAL ITEMS, NET.
We recorded a net loss of Ps.14.3Ps.26.8 billion for 20212023 on the valuation of derivatives, interest cost from labor obligations and other financial items, net, compared to a net gainloss of Ps.1.3Ps.19.1 billion for 2020.2022. The change in 20212023 principally reflects a loss on hedgingderivative instruments as a result of the depreciation of some of the currencies in which our indebtedness is denominated. In September 2023, we identified impairment indicators and assessed that there is objective evidence that ClaroVTR is impaired. As a result, an amount of Ps.4.7 billion was recorded as the difference between the recoverable amount of ClaroVTR and its carrying value. Additionally, as of December 31, 2023, we recorded an impairment relating to purchased convertible notes from ClaroVTR totaling Ps.12.2 billion. Both amounts are recorded under “valuation of derivatives, interest cost from labor obligations and other financial items” in our consolidated statements of comprehensive income. The other reasons for the change in 2023 stem from immaterial transactions. See Note 22 to our audited consolidated financial statements.
INCOME TAX.
Our income tax expense related to continuing operations for 2021 increasedin 2023 decreased by 108.3%25.0%, or Ps.14.6Ps.11.5 billion, over 2020.2022 (excluding income tax for discontinued operations in Panama and Chile). This increase principallydecrease mainly reflects higherless profit before income tax due to a decrease in our net foreign currency exchange lossgains and other effects, including a Ps.12.2 billion impairment of Ps.48.3 billion compared to 2020.
25

Our income tax expense related to discontinued operations for 2021 resulted from the sale of 100% of our ownershipClaroVTR’s purchased convertible notes, in TracFone as described above.2023.
Our effective corporate income tax rate as a percentage of profit before income tax was 22.5%29.9% for 2021,2023, compared to 24.3%34.3% for 2020.2022. This rate differed from the Mexican statutoryapplicable rate of 30.0% under Mexican law and changed year over year principallymainly due to the tax effects of higher inflation on several of our discontinued operations, localsubsidiaries, other tax inflation effects and registry of benefits related to tax losses credits in Brazil and Chilenet operating losses in Brazil and impairment related to subsidiaries in Europe, which lowered our income tax expense and our effective corporate income tax for 2021.Mexican fixed line business.
Net Profit
We recorded a net profit of our continuing operations of Ps.74.6Ps.80.8 billion for 2021, an increase2023, a decrease of 119.2%8.4%, or Ps.40.6Ps.7.4 billion, over 2020.
The net profit obtained through both the operation of TracFone until its sale on November 23, 2021 and the sale itself is classified as net profit for the period discontinued, which totaled Ps.121.7 billion in 2021. Together with the net income of our continuing operations, in 2021, we recorded a net profit of Ps.196.3 billion, compared to Ps.51.0 billion in 2020.2022.
SEGMENT RESULTS OF OPERATIONS
We discuss below the operating results of each reportable segment. Notes 2. z) and 23 to our audited consolidated
financial statements describe how we translate the financial statements of our
non-Mexican
subsidiaries. Exchange rate changes between the Mexican peso and the currencies in which our subsidiaries operate affect our reported results in Mexican pesos and the comparability of reported results between periods.
The following table sets forth the exchange rates used to translate the results of our most significant non Mexican operations, as expressed in Mexican pesos per foreign currency unit, and the change from the rate used in the prior period indicated.period. The U.S. dollar is ourthe functional currency in several of the countries or territories in which we or our subsidiaries operate, including Ecuador, Puerto Rico Panama and El Salvador.
 
MEXICAN PESOS PER FOREIGN CURRENCY UNIT (AVERAGE FOR THE
PERIOD) FOR THE YEARS ENDED DECEMBER 31,
MEXICAN PESOS PER FOREIGN CURRENCY UNIT (AVERAGE FOR THE
PERIOD) FOR THE YEARS ENDED DECEMBER 31,
 
MEXICAN PESOS PER FOREIGN CURRENCY UNIT (AVERAGE FOR THE PERIOD)
FOR
THE YEARS ENDED DECEMBER 31,
MEXICAN PESOS PER FOREIGN CURRENCY UNIT (AVERAGE FOR THE PERIOD)
FOR
THE YEARS ENDED DECEMBER 31,
MEXICAN PESOS PER FOREIGN CURRENCY UNIT (AVERAGE FOR THE PERIOD)
FOR
THE YEARS ENDED DECEMBER 31,
MEXICAN PESOS PER FOREIGN CURRENCY UNIT (AVERAGE FOR THE PERIOD)
FOR
THE YEARS ENDED DECEMBER 31,
MEXICAN PESOS PER FOREIGN CURRENCY UNIT (AVERAGE FOR THE PERIOD)
FOR
THE YEARS ENDED DECEMBER 31,
MEXICAN PESOS PER FOREIGN CURRENCY UNIT (AVERAGE FOR THE PERIOD)
FOR
THE YEARS ENDED DECEMBER 31,
  
2020
   
2021
   
% CHANGE
   
2022
  
2023
  
% CHANGE
Brazilian real
   4.1850    3.7625    (10.1  3.9045  3.5545  (9.0)
Colombian peso
   0.0058    0.0054    (7.1
Colombian peso
  0.0048  0.0041  (14.6)
Argentine peso
   0.3070    0.2137    (30.4
Argentine peso
  0.1586  0.0681  
(57.1)
(1)
U.S. dollar
   21.4859    20.2768    (5.6
U.S. dollar
  20.1283  17.7617  (11.8)
Euro
   24.5080    23.9834    (2.1
Euro
  21.2285  19.2047  (9.5)
(1)
As of December 31, 2023, the devaluation of the Argentine peso against the Mexican peso is due pri- marily to economic policies established by the new Argentine presidential administration. The stated goals of the policies involve, among other things, the devaluation of the Argentine peso by more than 50 percent against the U.S. dollar.
(1)
As of December 31, 2023, the devaluation of the Argentine peso against the Mexican peso is due pri- marily to economic policies established by the new Argentine presidential administration. The stated goals of the policies involve, among other things, the devaluation of the Argentine peso by more than 50 percent against the U.S. dollar.
(1)
As of December 31, 2023, the devaluation of the Argentine peso against the Mexican peso is due pri- marily to economic policies established by the new Argentine presidential administration. The stated goals of the policies involve, among other things, the devaluation of the Argentine peso by more than 50 percent against the U.S. dollar.
(1)
As of December 31, 2023, the devaluation of the Argentine peso against the Mexican peso is due pri- marily to economic policies established by the new Argentine presidential administration. The stated goals of the policies involve, among other things, the devaluation of the Argentine peso by more than 50 percent against the U.S. dollar.
(1)
As of December 31, 2023, the devaluation of the Argentine peso against the Mexican peso is due pri- marily to economic policies established by the new Argentine presidential administration. The stated goals of the policies involve, among other things, the devaluation of the Argentine peso by more than 50 percent against the U.S. dollar.
(1)
As of December 31, 2023, the devaluation of the Argentine peso against the Mexican peso is due pri- marily to economic policies established by the new Argentine presidential administration. The stated goals of the policies involve, among other things, the devaluation of the Argentine peso by more than 50 percent against the U.S. dollar.
(1)
As of December 31, 2023, the devaluation of the Argentine peso against the Mexican peso is due pri- marily to economic policies established by the new Argentine presidential administration. The stated goals of the policies involve, among other things, the devaluation of the Argentine peso by more than 50 percent against the U.S. dollar.
The tables below set forth operating revenues and operating income for each of our segments for the years indicated.
 
 
 
 
YEAR ENDED DECEMBER 31, 2021               
 
 
 
 
OPERATING REVENUES
  
OPERATING INCOME  
 
  (in millions of
Mexican pesos)
  
(as a% of to-
tal operating
revenues)
  (in millions of
Mexican pesos)  
  (as a% of
total operat-
ing income)
 
Mexico Wireless
 Ps.243,261   28.4%  Ps.77,784     46.8% 
Mexico Fixed
  102,427   12.0   21,100     12.7 
Brazil
  152,774   17.9   21,867     13.2 
Colombia
  79,673   9.3   15,165     9.1 
Southern Cone
  62,359   7.3   2,145     1.3 
Andean Region
  52,962   6.2   7,458     4.5 
Central America
  48,567   5.7   8,217     4.9 
Caribbean
  39,929   4.7   8,661     5.2 
Europe
  113,838   13.3   13,421     8.1 
Eliminations
  (40,255)   (4.7)   (9,685)     (5.8) 
Total
 
Ps.
   855,535
 
 
 
100.0%
 
 
Ps.
    166,133  
 
 
 
100.0%
 
 
YEAR ENDED DECEMBER 31, 2023
 
 
YEAR ENDED DECEMBER 31, 2020               
  
OPERATING REVENUES
 
OPERATING INCOME
 
 
OPERATING REVENUES
 
OPERATING INCOME  
 
 (in millions of
Mexican pesos)
 
(as a% of to-
tal operating
revenues)
 (in millions of
Mexican pesos)
 (as a% of
total operat-
ing income)
 
 
(in millions of
Mexican pesos)
 
(as a % of
total operating
revenues)
 
(in millions of
Mexican pesos)
 
(as a % of
total operat-
ing income)
 
Mexico Wireless
 Ps.    232,242   27.7%  Ps.  70,852     48.7%   Ps. 258,788   31.7   Ps. 84,817   50.6 
Mexico Fixed
  91,589   10.9   11,204     7.7 
Mexico Fixed
Mexico Fixed
Mexico Fixed
  101,832   12.5   12,064   7.2 
Brazil
Brazil
Brazil
Brazil
  168,073   20.0   25,204     17.3   166,710   20.4   25,618   15.3 
Colombia
  77,635   9.2   15,112     10.4 
Colombia
Colombia
Colombia
  62,718   7.7   9,959   5.9 
Southern Cone
  56,705   6.8   1,877     1.3 
Southern Cone (Argentina)
Southern Cone (Argentina)
Southern Cone (Argentina)
Southern Cone (Argentina)  18,923   2.3   515   0.3 
Southern Cone (Paraguay and Uruguay)
Southern Cone (Paraguay and Uruguay)
Southern Cone (Paraguay and Uruguay)
Southern Cone (Paraguay and Uruguay)  4,006   0.5   (444  (0.3
Andean Region
  53,935   6.4   8,699     6.0 
Andean Region
Andean Region
Andean Region
  52,992   6.5   10,639   6.3 
Central America
  48,195   5.7   4,005     2.8 
Central America
(1)
Central America
(1)
Central America
(1)
Central America
(1)
  44,064   5.4   6,956   4.1 
Caribbean
Caribbean
Caribbean
Caribbean
  38,624   4.6   6,701     4.6   38,268   4.7   7,723   4.6 
Europe
  111,472   13.3   13,160     9.0 
Europe
Europe
Europe
  100,836   12.4   15,752   9.4 
Eliminations
  (38,763)   (4.6)   (11,311)     (7.8) 
Eliminations
Eliminations
Eliminations
  (33,124  (4.1  (5,815  (3.4
Total
 
Ps.
    839,707
 
 
 
100%
 
 
Ps.
  145,503  
 
 
 
100%
 
 
 
Ps. 816,013
 
 
 
100.0
 
 
 
Ps. 167,784
 
 
 
100.0
 
 
26
27

 
  
YEAR ENDED DECEMBER 31, 2022
 
  
OPERATING REVENUES
  
OPERATING INCOME
 
  (in millions of
Mexican pesos)
  (as a% of
total operating
revenues)
  (in millions of
Mexican pesos)
  (as a% of
total operat-
ing income)
 
Mexico Wireless
  Ps. 245,899   29.1   Ps. 76,709   44.9 
Mexico Fixed
  99,985   11.8   16,172   9.5 
Brazil
  170,880   20.2   26,666   15.6 
Colombia
  71,300   8.4   14,171   8.3 
Southern Cone (Argentina)  34,517   4.1   2,571   1.5 
Southern Cone (Paraguay and Uruguay)  4,521   0.5   (778  (0.5
Andean Region
  55,498   6.6   8,262   4.8 
Central America
(1)
  47,215   5.6   7,540   4.4 
Caribbean
  42,714   5.1   10,285   6.0 
Europe
  105,956   12.5   16,156   9.5 
Eliminations
  (33,984  (3.9  (6,883  (4.0
Total
 
 
Ps. 844,501
 
 
 
100.0
 
 
 
Ps. 170,871
 
 
 
100.0
 
(1)
  Excludes Claro Panama.
   
Interperiod Segment ComparaionsINTERPERIOD SEGMENT COMPARISONS
The following discussion addresses the financial performance of each of our reportable segments by comparing results for 20212023 and 2020.2022. In the
year-to-year
year-over-year comparisons for each segment, we include percentage changes in operating revenues, percentage changes in operating income and operating margin (operating income as a percentage of operating revenues), in each case calculated based on the segment financial information presented in Note 23 to our audited consolidated financial statements, which is prepared in accordance with IFRS.statements.
Each reportable segment includes all income, cost and expense eliminations that occurred between subsidiaries within the reportable segment. The Mexico Wireless segment also includes corporate income, costs and expenses.
Comparisons in the following discussion are calculated using figures in Mexican pesos. WeFor all segments, we also include percentage changes in adjusted segment operating revenues, adjusted segment operating income and adjusted operating margin (adjusted operating income as a percentage of adjusted operating revenues). The adjustments eliminate, which consist of segment operating
revenues, segment operating income and segment operating margin, respectively, minus (i) certain intersegment transactions, (ii) for our non Mexican
non-Mexican
segments, the effects of exchange rate changesforeign currency translation and (iii) for the Mexican Wireless segment only, revenues and costs of group corporate activities and other businesses that are allocated to the Mexico Wireless segment. The following discussions provide a quantification of these
non-IFRS
financial measures, presented herein to the most directly comparable financial measures calculated and presented in accordance with IFRS. We have provided the
non-IFRS
financial measures herein, which are not calculated or presented in accordance with IFRS, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with IFRS.
These supplemental
non-IFRS
financial measures are presented because management has evaluated our financial results both including and excluding the adjusted items and believes that the supplemental
non-IFRS
financial measures presented provide additional perspective and insights when analyzing our core operating performance from period to period and trends in our historical operating results. These supplemental
non-IFRS
financial measures should not be considered superior to, as a substitute for or as an alternative to, and should be considered in conjunction with, the IFRS financial measures presented herein.
Except for the Southern Cone – Argentina segment, comparisons in the following discussion are calculated using figures in Mexican pesos. For the Southern Cone – Argentina segment only, due to hyperinflationary conditions in Argentina, comparisons in the following discussion are calculated using figures in constant Argentine peso terms, i.e., adjusted for inflation in accordance with International Accounting Standard (“IAS”) 29 Financial Reporting in Hyperinflationary Economies (“IAS 29”), and must be converted into Mexican pesos at the exchange rate observed at the end of the period per IFRS rules, as described above under “Constant Currency Presentation.”
Discussions of year-over-year comparisons between 20202022 and 20192021 that are not included in this report can be found under Part II, Operating and Financial Review and Prospects of our Form
20-F
for the fiscal year ended December 31, 20202022, as filed on April 29, 2021.May 1, 2023.
2021 Compared to 202028

2023 COMPARED TO 2022
Mexico Wireless
The number of prepaid wireless subscriberssubscriptions for 20212023 increased by 4.3%0.9% over 2020,2022, and the number of postpaid wireless subscriberssubscriptions increased by 0.1%2.4%, resulting in an increase in the total number of wireless subscriberssubscriptions in Mexico of 3.5%1.2%, or 2.7 million,983 thousand, to approximately 80.583.8 million as of December 31, 2021.2023.
Segment operating revenues for 20212023 increased by 4.7%5.2% over 2020.2022. Adjusted segment operating revenues were Ps.239.6 billion in 2023 and Ps.226.2 in 2022, after giving effect to adjustments of Ps.(19.2) billion and Ps.(19.7) billion, respectively, for 2021 increased by 5.0% over 2020.intersegment transactions and revenues of group corporate activities and other businesses that are allocated to the Mexico Wireless segment. This represents an increase of 5.9% in adjusted segment operating revenues in 2023 as compared to 2022, which principally reflects an increase in mobile services in prepaid postpaid and equipment sales and handset financingpostpaid plans.
Segment operating income for 20212023 increased by 9.8%10.6% over 2020.2022. Adjusted segment operating income was Ps.98.1 billion in 2023 and Ps.91.1 billion in 2022, after giving effect to adjustments of Ps.13.3 billion and Ps.14.4 billion, respectively, for 2020 increased by 11.9% over 2020.intersegment transactions and revenues and costs of group corporate activities and other businesses that are allocated to the Mexico Wireless segment. This represents an increase in adjusted segment operating income of 7.7% in 2023 as compared to 2022.
Segment operating margin was 32.0%32.8% in 2021,2023, as compared to 30.5%31.2% in 2020.2022. Adjusted segment operating margin for this segment was 39.1%40.9% in 2021,2023, as compared to 36.7%40.3% in 2020.2022. This slight increase in segment operating margin for 20212023 principally reflects the successeffects of our corporate cost savings program, partially offset by increases in operations, optimizationcosts associated with maintenance, customer care and adjustments in networkswages and maintenance costs, which we successfully continue to implement without affecting the quality of our services and coverage.salaries.
Mexico Fixed
The number of fixed voice RGUs in Mexico for 20212023 decreased by 4.6%1.1% over 2020,2022, and the number of broadband RGUs in Mexico increased by 0.3%4.6%, resulting in a decreasean increase in total fixed RGUs in Mexico of 2.4%1.7% over 2020,2022, or 517347 thousand, to approximately 21.421.2 million as of December 31, 2021.2023.
Segment operating revenues for 20212023 increased by 11.8%1.8% over 2020.2022. Adjusted segment operating revenues were Ps.84.8 billion in 2023 and Ps.83.0 billion in 2022, after giving effect to adjustments of Ps.(17.0) billion and Ps.(16.9) billion for 2021 increased by 11.9% over 2020.intersegment transactions. This represents an increase of 2.1% in adjusted segment operating revenues in 2023 as compared to 2022, which
principally reflects ana stable increase in broadband by 7.2% and corporate networksnetwork services by 2.8% and broadband by 3.2%11.3%, which was partially offset by a continued decrease in fixed voice revenues of 2.6%by 1.9% and long distance services by 13.8%.
Segment operating income for 2021 increased2023 decreased by 88.3%25.4% over 2020.2022. Adjusted segment operating (loss) income was Ps.(0.1) billion in 2023 and Ps.4.5 billion in 2022, after giving effect to adjustments of Ps.(12.2) billion and Ps.(11.7) billion, respectively, for 2021 increased by 298.2% over 2020.intersegment transactions. This increaserepresents a decrease of 102.6% in adjusted segment operating income in 2023 as compared to 2022, which principally reflects an increaseincreases in services providednetwork maintenance costs, technical expenses and
one-off
revenue due to the sale of towers, partially set off by increases in the contractual salary of our employees and higher information technology and customer service costs.employees.
Segment operating margin was 20.6%11.8% in 2021,2023, as compared to 12.2%16.2% in 2020.2022. Adjusted segment operating margin was 10.6%(0.1)% in 2021,2023, as compared to 3.0%5.4% in 2020.2022. The increasedecrease in segment operating margin for 20212023 principally reflects an increasea decrease in revenues from voice services partially offset by a decreaseand an increase in segment depreciationnetwork maintenance costs and technical expenses.
Brazil
The number of prepaid wireless subscriberssubscriptions for 2021 increased2023 decreased by 6.0%2.3% over 2020,2022, and the number of postpaid wireless subscriberssubscriptions increased by 16.2%9.7%, resulting in an increase in the total number of wireless subscriberssubscriptions in Brazil of 11.7%4.4%, or 7.43.7 million, to approximately 70.587.0 million as of December 31, 2021.2023. The increase in the number of postpaid wireless subscriberssubscriptions is due primarily to commercial efforts aimed at converting prepaid subscriberssubscriptions to postpaid subscribers.subscriptions. The number of fixed voice RGUs for 20212023 decreased by 5.7%8.3% over 2020,2022, the number of broadband RGUs decreasedincreased by 1.2%2.2%, and the number of Pay TV RGUs decreased by 5.3%9.5%, resulting in a decrease in total fixed RGUs in Brazil of 4.2%4.3%, or 1.41.0 million, to approximately 31.323.1 million as of December 31, 2021.2023. The number of Pay TV RGUs for 2023 and 2022 has been adjusted to the criteria by which we report to the local regulator.
Segment operating revenues for 2023 decreased by 2.4% over 2022. Adjusted segment operating revenues were Ps.178.2 billion in 2023 and Ps.166.0 billion in 2022, after giving effect to adjustments of Ps.11.5 billion and Ps.(4.9) billion, respectively, for intersegment transactions and the effects of foreign currency translation. This represents an increase of 7.4% in adjusted segment operating revenues in 2023 as compared to 2022, which principally reflects stronger performance in prepaid, postpaid, and broadband services, partially offset by fixed voice and Pay TV.
 
27
29

 
Segment operating revenuesincome for 20212023 decreased by 9.1%3.9% over 2020.2022. Adjusted segment operating revenuesincome was Ps.26.1 billion in 2023 and Ps.24.1 billion in 2022, after giving effect to adjustments of Ps.0.5 billion and Ps.(2.5) billion, respectively, for 2021 increased by 0.9% over 2020.intersegment transactions and the effects of foreign currency translation. This represents an increase of 8.1% in adjusted segment operating revenues principally reflects higher mobile data and fixed data revenuesincome in 2021 over 2020. The increase in mobile data revenues in 2021 principally reflects the increased usage of social networking platforms, cloud services and other content, and fixed data revenues increased principally due2023 as compared to an increase in broadband revenues, which were, in each case, partially offset by a decrease in Pay TV revenues.
Segment operating income for 2021 decreased by 13.2% over 2020. Adjusted segment operating income for 2021 increased by 4.5% over 2020.2022.
Segment operating margin was 14.3%15.4% in 2021,2023, as compared to 15.0%15.6% in 2020.2022. Adjusted segment operating margin was 14.6% in 2021,2023, as compared to 14.1%14.5% in 2020.2022. This slight increase in adjusted segment operating margin for 20212023 principally reflects an increase in doubtful accounts allowances and optimization of call centers, mainly as a resultthe effects of our cost savings program.program, partially offset by an increase in wages and salaries, maintenance and leases.
Colombia
The number of prepaid wireless subscriberssubscriptions for 20212023 increased by 4.2% over 2020,2022, and the number of postpaid wireless subscriberssubscriptions increased by 12.7%5.4%, resulting in an increase in the total number of wireless subscriberssubscriptions in Colombia of 6.2%4.5%, or 2.01.7 million, to approximately 35.139.2 million as of December 31, 2021.2023. The number of fixed voice RGUs for 20212023 increased by 8.5%4.5% over 2020,2022, the number of broadband RGUs increased by 6.4%1.4% and the number of Pay TV RGUs increased by 5.5%0.5%, resulting in an increase in total fixed RGUs in Colombia of 6.7%2.1%, or 558192 thousand, to approximately 8.99.4 million as of December 31, 2021.2023.
Segment operating revenues for 2021 increased2023 decreased by 2.6%12.0% over 2020.2022. Adjusted segment operating revenues Ps.72.7 billion in 2023 and Ps.71.3 billion in 2022, after giving effect to adjustments of Ps.10.0 billion and Ps.13.8 million, respectively, for 2021 increased by 10.0% over 2020.intersegment transactions and the effects of foreign currency translation. This represents an increase of 2.0% in adjusted segment operating revenues in 2023 as compared to 2022, which principally reflects increasesan increase in fixed data revenues, mobile data revenues, both in prepaidservice and postpaid mobile data, and Pay TVequipment revenues.
Segment operating income for 2021 increased2023 decreased by 0.4%29.7% over 2020.2022. Adjusted segment operating income was Ps.15.2 billion in 2023 and Ps.17.6 billion in 2022, after giving effect to adjustments of Ps.5.2 billion and Ps.3.4 billion, respectively, for 2021 increased by 16.2% over 2020.intersegment transactions and the effects of foreign currency translation. This represents a decrease of 13.8% in adjusted segment operating income in 2023 as compared to 2022.
Segment operating margin was 19.0%15.9% in 2021,2023, as compared to 19.5%19.9% in 2020.2022. Adjusted segment operating margin was 26.1%20.8% in 2021,2023, as compared to 24.7%24.6% in 2020.2022. This increasedecrease is due to the impact of exchange rate
fluctuations on U.S. dollar-denominated costs such as content and network maintenance, and expenses linked to inflation, such as electric energy costs.
Southern Cone – Argentina
As described above under “Interperiod Segment Comparisons,” due to hyperinflationary conditions in Argentina, comparisons in the following discussion are calculated using figures in constant Argentine peso terms, i.e., adjusted for inflation in accordance with IAS 29.
The number of prepaid wireless subscriptions for 2023 increased by 5.2% over 2022, and the number of postpaid wireless subscriptions increased by 3.2%, resulting in an amortization expenses causedincrease in the total number of wireless subscriptions in Argentina of 4.4%, or 1.1 million, to approximately 25.0 million as of December 31, 2023. The number of fixed voice RGUs for 2023 increased by investments23.3% over 2022, the number of broadband RGUs increased by 25.4%, and the number of Pay TV RGUs increased by 36.8%, resulting in spectruman increase of total fixed RGUs of 26.1%, or 665 thousand, to approximately 3.2 million as of December 31, 2023.
Segment operating revenues for 2023 decreased by 8.2% over 2022. Adjusted segment operating revenues were Ps.18.9 billion in 2023 and submarine cables.Ps.20.6 billion in 2022, after giving effect to adjustments of Ps.(38.4) million and Ps.(13.9) billion, respectively, for intersegment transactions and the effects of foreign currency translation. This represents a decrease of 8.2% in adjusted segment operating revenues in 2023 as compared to 2022, which is attributable to decreases in mobile service revenue, offset by increases in fixed line platform (broadband and PayTV).
Segment operating income for 2023 decreased by 38.6% over 2022. Adjusted segment operating income was Ps.6.2 billion in 2023 and Ps.6.6 billion in 2022, after giving effect to adjustments of Ps.5.7 billion and Ps.4.0 billion, respectively, for intersegment transactions and the effects of foreign currency translation. This represents a decrease of 5.9% in adjusted segment operating income in 2023 as compared to 2022.
Segment operating margin was 8.5% as compared to 12.7% in 2022. Adjusted
segment
operating margin was 32.9% in 2023, as compared to 32.1% in 2022. This increase in adjusted operating margin principally reflects an increase in fixed line platform (broadband and PayTV), which was offset by decreases in equipment revenue and mobile services.
30

Southern Cone - Argentina, Chile, Paraguay and Uruguay
The number of prepaid wireless subscriberssubscriptions for 2021 increased2023 decreased by 9.0%5.3% over 2020,2022, and the number of postpaid wireless subscriberssubscriptions increased by 8.1%18.1%, resulting in an increase in the total number of wireless subscriberssubscriptions in our Southern Cone segmentParaguay and Uruguay of 8.7%2.5%, or 2.7 million,76 thousand, to approximately 33.33.1 million as of December 31, 2021. The number of fixed voice RGUs for 2021 increased by 22.7% over 2020,2023. In Paraguay and Uruguay, the number of broadband RGUs increased by 23.4%39.9%, and the number of Pay TV RGUs increaseddecreased by 6.6%8.3%, resulting in an increase in total fixed RGUs in our Southern Cone segmentParaguay and Uruguay of 18.1%5.8%, or 51318 thousand, to approximately 3.3 million337 thousand as of December 31, 2021.2023.
Segment operating revenues for 2021 increased2023 decreased by 10.0%11.4% over 2020.2022. Adjusted segment operating revenues were Ps.4.5 billion in 2023, the same as in 2022, after giving effect to adjustments of Ps.0.5 billion and Ps.(55.2) million, respectively, for 2021 decreased by 1.6% over 2020.intersegment transactions and the effects of foreign currency translation. This decreaserepresents an increase of 1.8% in adjusted segment operating revenues for 2023 as compared to 2022, which principally reflects a decreaseincreases in adjusted operatingpostpaid and broadband revenues, in Argentina and Paraguay. In Argentina, we experienced a decrease in revenues from prepaid and postpaid wireless voice and corporate networks, which were attributable to adverse economic conditions and which were partially offset by an increasedecreases in broadband, fixed voice and Pay TV. In Chile, we experienced an increase in postpaid and Pay TV revenues. For this segment, we analyze resultsrevenues in Argentina, Paraguay and Uruguayprepaid mobile revenues in terms of the Argentine peso, because Argentina accounts for the major portion of the operations in these three countries.Uruguay.
Segment operating incomeloss for 2021 increased2023 decreased by 14.3%42.9% over 2020.2022. Adjusted segment operating incomeloss was Ps.(54) million in 2023 and Ps.(0.1) billion in 2022, after giving effect to adjustments of Ps.0.4 billion and Ps.0.7 billion, respectively, for 2021 increased by 1.3% over 2020.intersegment transactions and the effects of foreign currency translation. This represents a decrease of 47.3% in adjusted segment operating loss in 2023 as compared to 2022.
Segment operating margin was 3.4%(11.1)% in 2021,2023, as compared to 3.3%(17.2)% in 2020.2022. Adjusted segment operating margin was 17.4%(1.2)% in 2021,2023, as compared to 15.7%(2.3)% in 2020.2022. This increaseimprovement in the segment operating margin for 20212023 principally reflects a decreaseincreases in postpaid and broadband revenues, as described above, coupled with a decreasepartially offset by decreases in costsprepaid and expenses, including as a result of inflation or exchange rates.Pay TV revenues in Paraguay and decreases in prepaid revenues in Uruguay.
28

Andean Region - Ecuador and Peru
The number of prepaid wireless subscriberssubscriptions for 20212023 increased by 7.3%1.1% over 2020,2022, and the number of postpaid wireless subscriberssubscriptions increased by 15.7%5.4%, resulting in an increase in the total number of wireless subscriberssubscriptions in our Andean Region segment of 10.0%2.7%, or 1.9 million,570 thousand, to approximately 21.021.9 million as of December 31, 2021.2023. The number of fixed voice RGUs for 2021 increased2023 decreased by 13.6%13.7% over 2020,2022, the number of broadband RGUs increased by 15.6%1.3% and the number of Pay TV RGUs increaseddecreased by 4.0%6.3%, resulting in an increasea decrease in total fixed RGUs in our Andean
Region segment of 13.2%5.2%, or 286136 thousand, to approximately 2.5 million as of December 31, 2021.2023.
Segment operating revenues for 20212023 decreased by 1.8%4.5% over 2020.2022. Adjusted segment operating revenues were Ps.59.1 billion in 2023 and Ps.55.5 billion in 2022, after giving effect to adjustments of Ps.6.2 billion and Ps.37.2 million, respectively, for 2021 increased by 11.0% over 2020.intersegment transactions and the effects of foreign currency translation. This represents an increase of 6.5% in adjusted segment operating revenues in 2023 as compared to 2022, which principally reflects anincreases in revenues in both Peru and Ecuador. In Peru, the increase in revenues in Peru,reflects higher revenues from postpaid wireless, broadband, corporate networks and Pay TV services, partially offset by a decrease in Ecuador. Thefixed voice revenues. In Ecuador, the increase in revenues in Peru reflects an increase inhigher revenues from prepaidpostpaid, broadband and postpaid wireless, broadband, corporate networks, fixed voice and Pay TV services. The decrease in revenues in Ecuador reflectsservices, partially offset by a decrease in revenues from postpaid mobile.prepaid and fixed voice revenues.
Segment operating income for 2021 decreased2023 increased by 14.3%28.8% over 2020.2022. Adjusted segment operating income was Ps.14.9 billion in 2023 and Ps.10.9 billion in 2022, after giving effect to adjustments of Ps.4.3 billion and Ps.2.6 billion, respectively, for 2021 increased by 17.1% over 2020.intersegment transactions and the effects of foreign currency translation. This represents an increase of 36.8% in segment operating income in 2023 as compared to 2022, which principally reflects an increase in adjusted operating income of 12.1% in Ecuador and an increase in adjusted operating income of 55.9%62.2% in Peru partially offset by a decrease of 10.2% in Ecuador.Peru.
Segment operating margin was 14.1%20.1% in 2021,2023, as compared to 16.1%14.9% in 2020.2022. Adjusted segment operating margin was 19.6%25.2% in 2021,2023, as compared to 18.4%19.6% in 2020.2022. This increase in the segment operating margin for 20212023 principally reflects a recovery in Peru,the effects of our cost savings program, partially offset by a decreaseincreases in operating income in Ecuador.electric energy, maintenance and administration costs.
Central America - Guatemala, El Salvador, Honduras, Nicaragua Panama and Costa Rica
The number of prepaid wireless subscriberssubscriptions for 2021 increase2023 increased by 10.7%2.6% over 2020,2022, and the number of postpaid wireless subscriberssubscriptions increased by 4.4%9.0%, resulting in an increase in the total number of wireless subscriberssubscriptions in our Central America segment of 9.7%3.6%, or 1.5 million,600 thousand, to approximately 16.517.3 million as of December 31, 2021.2023. The number of fixed voice RGUs for 2021 decreased2023 increased by 2.1%3.6% over 2020,2022, the number of broadband RGUs increased by 7.1%8.4%, and the number of Pay TV RGUs increased by 10.6%8.6%, resulting in an increase in total fixed RGUs in our Central America segment of 3.9%6.5%, or 165300 thousand, to approximately 4.44.9 million as of December 31, 2021.2023.
31

Segment operating revenues for 2021 increased2023 decreased by 0.8%6.7% over 2020.2022. Adjusted segment operating revenues were Ps.49.9 billion in 2023 and Ps.47.1 billion in 2022, after giving effect to adjustments of Ps.5.8 billion and Ps.(94.8) million, respectively, for 2021 increased by 6.5% over 2020.intersegment transactions and the effects of foreign currency translation. This represents an increase of 5.8% in adjusted segment operating revenues in 2023 as compared to 2022.
Segment operating income for 2021 increased2023 decreased by 105.2%7.7% over 2020.2022. Adjusted segment operating income was Ps.9.9 billion in 2023 and Ps.9.4 billion in 2022, after giving effect to adjustments of Ps.2.9 billion and Ps.1.8 billion, respectively, for 2021 increased by 102.2% over 2020.intersegment transactions and the effects of foreign currency translation.. This represents an increase of 5.8% in adjusted segment operating income for 2021in 2023 as compared to 2022, which principally reflects a decreaseincreases in depreciation expenses as a result of the exhaustion of the useful life of certain assets in Guatemala in 2021 and the recognition of asset impairment in Panama and Honduras in the prior year, which was not recognized in 2021.all service revenues other than fixed voice.
Segment operating margin was 16.9%15.8% in 2021,2023, as compared to 8.3%16.0% in 2020.2022. Adjusted segment operating margin was 19.1%19.9% in 2021,2023, the same as compared to 10.1% in 2020. This increase2022. The variation in our segment operating margin for 20212023 principally reflects an increaseslight increases in income, particularly in El Salvador, Honduras, Guatemala, Nicaraguainfrastructure leasing, maintenance and Costa Rica.commercial expenses.
Caribbean - The Dominican
Republic &and Puerto Rico
The number of prepaid wireless subscriberssubscriptions for 20212023 increased by 12.1%3.5% over 2020,2022, and the number of postpaid wireless subscriberssubscriptions increased by 3.3%3.0%, resulting in an increase in the total number of wireless subscriberssubscriptions in our Caribbean segment of 9.3%3.4%, or 600247 thousand, to approximately 7.07.6 million as of December 31, 2021.2023. The number of fixed voice RGUs for 20212023 decreased by 1.2%0.6% over 2020,2022, the number of broadband RGUs increased by 4.6%2.8% and the number of Pay TV RGUs increaseddecreased by 5.3%1.8%, resulting in ana slight increase in total fixed RGUs in our Caribbean segment of 1.9%0.5%, or 5013 thousand, to approximately 2.62.8 million as of December 31, 2021.2023.
Segment operating revenues for 2021 increased2023 decreased by 3.4%10.4% over 2020.2022. Adjusted segment operating revenues were Ps.42.0 billion in 2023 and Ps.40.9 billion in 2022, after giving effect to adjustments of Ps.3.7 billion and Ps.(1.8) billion, respectively, for 2021 increased by 7.5% over 2020.intersegment transactions and the effects of foreign currency translation. This represents an increase of 2.6% in adjusted segment operating revenues in 2023 as compared to 2022, which principally reflects an increase in operating revenuespostpaid, broadband and corporate networks in Puerto Rico and the Dominican Republic.Republic, which was partially offset by decreases in prepaid revenues in the Dominican Republic and in fixed voice and Pay TV revenues in the Dominican Republic and
Puerto Rico. We analyze segment results in U.S. dollars because it is the functional currency of our operations in Puerto Rico.
Segment operating income and segment operating margin for 2021 increased2023 decreased by 29.2%24.9% over 2020.2022. Adjusted segment operating income was Ps.8.7 billion in 2023 and Ps.9.7 billion in 2022, after giving effect to adjustments of Ps.0.9 billion and Ps.(0.5) billion, respectively, for 2021 increased by 32.4% over 2020.intersegment transactions and the effects of foreign currency translation. This increaserepresents a decrease of 11.1% in adjusted segment operating income in 2023 as compared to 2022, which principally reflects an increaseoperating loss of 34.3%169.5% in Puerto Rico due to an extraordinary adjustment in employee health benefit plans in 2022 and 22.4%an increase in depreciation and amortization in 2023, partially offset by an operating income increase of 17.3% in the Dominican Republic.Republic due to the effects of our cost savings program. 
Segment operating margin was 21.7% in 2021, as compared to 17.3% in 2020.decreased by 3.9% over 2022. Adjusted segment operating margin was 18.4%decreased by 3.2% over 2022. This decrease in 2021, as compared to 14.9% in 2020. This increase inadjusted segment operating margin for 2021 principally reflects an increase in service revenues in Puerto Rico in postpaid and Pay TV and in2023 is mainly due to the Dominican Republic, in broadband and fixed data services, and the effects of the cost savings program, partially offset by the depreciation of the Dominican Peso.reasons described above.
29

Europe
The number of prepaid wireless subscriberssubscriptions for 20212023 decreased by 4.1%2.3% over 2020,2022, and the number of postpaid wireless subscriberssubscriptions increased by 6.0%7.1%, resulting in an increase in the total number of wireless subscriberssubscriptions in our Europe segment of 4.1%5.6%, or 901 thousand,1.3 million, to approximately 22.825.2 million as of December 31, 2021.2023. The number of fixed voice RGUs for 20212023 decreased by 1.7%4.4% over 2020,2022, the number of broadband RGUs increased by 1.8%2.1% and the number of Pay TV RGUs increased by 1.1%4.8%, resulting in an increase in total fixed RGUs in our Europe segment of 0.5%1.1%, or 3167 thousand, to approximately 6.16.3 million as of December 31, 2021.2023.
Segment operating revenues for 2021 increased2023 decreased by 2.1%4.8% over 2020.2022. Adjusted segment operating revenues were Ps.111.6 billion in 2023 and Ps.106.2 billion in 2022, after giving effect to adjustments of Ps.10.7 billion and Ps.0.3 billion, respectively, for 2021 increased by 4.4% over 2020.intersegment transactions and the effects of foreign currency translation. This represents an increase of 5.0% in adjusted segment operating revenues in 2023 as compared to 2022, which principally reflects an increaseincreases in mobile services.all service revenues other than fixed voice.
Segment operating income for 2021 increased2023 decreased by 2.0%2.5% over 2020.2022. Adjusted segment operating income for 2021 increased by 21.5% over 2020. Segment operating margin was 11.8%Ps.17.5 billion in 2021, the same as2023 and Ps.16.2 billion in 2020. Adjusted segment operating margin was 13.6% in 2021, as compared2022, after giving effect to 11.7% in 2020. This increase in adjusted segment operating margin for 2021 principally reflects our corporate cost savings programadjustments of Ps.1.7 billion and improved performance in all the countries in our Europe segment.
 
3032

Ps.79.6 million, respectively, for intersegment transactions and the effects of foreign currency translation. This represents an increase of 7.7% in adjusted segment operating income in 2023 as compared to 2022.
Segment operating margin was 15.6% in 2023 as compared to 15.2% in 2022. Adjusted segment operating margin was 15.7% in 2023, as compared to 15.3% in 2022. This increase in adjusted segment operating margin principally reflects the effects of our cost savings program and improved performance in all countries in our Europe segment, partially offset by increases in network maintenance and electric energy costs.
33

 
FUNDING REQUIREMENTS
We generate substantial cash flows from our operations. On a consolidated basis, our cash flows from operating activities were Ps.258.2Ps.248.1 billion in 2021,2023, compared to Ps.280.8Ps.225.3 billion in 2020.2022. Our cash and cash equivalents amounted to Ps.38.7Ps.26.6 billion at December 31, 2021,2023, compared to Ps.35.9Ps.33.7 billion at December 31, 2020.2022. We believe our working capital is sufficient for our present requirements, and we anticipate generating sufficient cash to satisfy our long-term liquidity needs.
We use the cash that we generate from our operations and from borrowings principally for the following purposes:
 
Capital expenditures -
We make substantial capital expenditures to continue expanding and improving our networks in each country in which we operate. Our capital expenditures on plant, property and equipment and acquisition or renewal of licenses were Ps.158.1Ps.156.3 billion in 2021, Ps.129.62023, Ps.159.8 billion in 20202022, and Ps.151.8Ps.158.7 billion in 2019.2021. The amount of capital expenditures can vary significantly from year to year, depending on acquisition opportunities, concession renewal schedules and the need for more spectrum. We have budgeted capital expenditures for 20222024 of approximately U.S.$8.77.0 billion (Ps.180.8(Ps.124.4 billion), which will be primarily funded by our operating activities. We reduced our capital expenditures in 2020 principally due to difficulties in obtaining certain supplies, services and equipment during the
COVID-19
outbreak. Our capital expenditures for 2021 and our budgeted capital expenditures for 2022 are in line with our historical capital expenditure levels.
 
Acquisitions -
InOn July 24, 2023, we acquired, through our subsidiary América Móvil, B.V., shares corresponding to 5.55% of the voting rights in TKA from a private investor. Subsequently, through a series of open market transactions, América Móvil, B.V. acquired an additional 1.83% of the voting rights. As of December 2021, we entered into an agreement31, 2023,
our overall ownership in TKA is equal to acquire approximately 32%58.4% of Oi Group’s Brazilian mobile subscribers for R$3.6 billion. This transaction closed on April 20, 2022.its total outstanding shares.
 
Short-term debt and contractual obligations -
We must pay interest on our indebtedness and repay principal when due. As of December 31, 2021,2023, we had approximately Ps.180.6Ps.186.5 billion in debt and contractual obligations due in 2022,2024, including approximately Ps.145.2Ps.161.0 billion of principal and amortization, Ps.27.6Ps.24.4 billion in short-term lease debt, and Ps.7.8Ps.1.1 billion in purchase obligations.
 
Long-term debt and contractual obligations -
As of December 31, 2021,2023, we had approximately Ps.165.3Ps.118.1 billion in debt and contractual obligations due between 2023 and 2025, including approximately Ps.109.9 billion of principal and amortization, Ps.46.4 billion in long-term lease debt,
 
between 2025 and Ps.9.02027, including approximately Ps.58.6 billion of principal and amortization, Ps.39.8 billion in
long-term
lease debt, and Ps.19.7 billion in purchase obligations. On the same date, we had approximately Ps.73.5Ps.102.6 billion in debt and contractual obligations due between 20262028 and 2027,2029, including approximately Ps.54.9Ps.57.7 billion of principal and amortization, Ps.13.0Ps.28.6 billion in long-term lease debt, and Ps.5.5Ps.16.3 billion in purchase obligations. On the same date, we had approximately Ps.277.2Ps.283.5 billion in debt and contractual obligations due after 2027,2029, including approximately Ps.254Ps.223.4 billion of principal and amortization, Ps.11.6Ps.32.4 billion in long-term lease debt, and Ps.11.7Ps.27.7 billion in purchase obligations.
 
Dividends -
We pay regular dividends. We paid Ps.27.8Ps.30.5 billion in dividends in 20212023 and Ps.9.6Ps.29.5 billion in 2020. Our2022. On April 29, 2024, our shareholders approved on April 20, 2022 the payment of a Ps. 0.44Ps.0.48 ordinary dividend per share in one installment in 2022.two equal installments. See “Share Ownership and Major Shareholders Trading—Dividends” under Part IV in this annual report.
 
Share repurchases -
We regularly repurchase our own shares. We spent Ps.36.8Ps.14.3 billion repurchasing our own shares in the open market in 20212023 and Ps.5.2Ps.26.2 billion in 2020. Our shareholders have authorized additional amounts to repurchase, and as2022. As of March 31, 2022,2024, we have spent Ps.9.2Ps.4.8 billion repurchasing our shares in the open market in 2022,2024, but whether we will continue to do so will depend on our operating cash flow and on various other considerations, including market prices and our other capital requirements. On April 29, 2024, our shareholders authorized the allocation of an amount up to Ps.15 billion for our buyback program for the April 2024 to April 2025 period, adding to such amount the buyback program balance, if any, as of such date. See “Share Ownership and Major Shareholders Trading—Purchases of Equity Securities by the Issuer and Affiliate Purchasers” under Part IV of this annual report.
BORROWINGS
In addition to cash flows generated from operations, we rely on a combination of borrowings from a range of different sources, including the international capital markets, the local capital markets in Mexico and other countries where we operate, international and local banks, equipment suppliers and export credit agencies. We seek to maintain access to diverse sources of funding. In managing our funding, we generally seek to keep our leverage, as measured by the ratio of net debt to EBITDA, at a level that is consistent with maintaining the ratings given to our debt by the principal credit rating agencies. Net
debt
is
defined
as total debt (determined as short-and long-term debt; as shown in the below table) minus (i) cash and cash equivalents, (ii) equity investments at fair value through other comprehensive income (“OCI”)
34


and other short-term investments and (iii) debt instruments at fair value through OCI. EBITDA is defined as operating income plus depreciation (which includes both depreciation of right-of-use assets and other depreciation). The following discussions provide a quantification of net debt, presented herein to the most directly comparable financial measures calculated and presented in accordance with IFRS. We do not utilize EBITDA to report financial figures in the body of this annual report.
Our total consolidated indebtedness as of December 31, 20212023, was Ps.564.0Ps.500.7 billion, of which Ps.145.2Ps.161.0 billion was short-term debt (including the current portion of long-term debt), compared to Ps.628.4Ps.510.6 billion as of December 31, 2020.2022.
Management defines net debt as total debt minus cash and cash equivalents, minus marketable securities (including Koninklijke KPN N.V. (“KPN”) shares and Verizon shares), other short term investments and fixed-income securities with a tenor of more than one year. Verizon shares are factored into calculations of net debt for information as of December 31, 2021, but are not factored into calculations of net debt for information as of December 31, 2020. As of December 31, 2021,2023, we had net debt of Ps.400.8Ps.385.4 billion, compared to Ps.537.8net debt of Ps.381.5 billion as of December 31, 2020.
2022. At December 31,

Ps.26.6 billion, equity investments at fair value through OCI and other short-term investments of Ps.73.8 billion and Ps.14.9 billion in debt instruments at fair value through OCI.
Without taking into account the effects of derivative financial instruments that we use to manage our interest rate and currency risk, approximately 84.8%71.5% of our indebtedness at December 31, 20212023 was denominated in currencies other than
Mexican
pesos (approximately 36.4%40.1% of such
non-Mexican
peso debt was in U.S. dollars and 63.6%59.9% in other currencies), and approximately 13.5%19.5% of our consolidated debt obligations bore interest at floating rates. After the effects of derivative transactions and excluding the debt of Telekom Austria, approximately 46.3%58.1% of our net debt as of December 31, 20212023, was denominated in Mexican pesos.
The weighted average cost of all our third-party debt at December 31, 20212023 (excluding commissions and reimbursement of certain lenders for Mexican taxes withheld) was approximately 3.78%5.94% per annum.
Our major categories of indebtedness at December 31, 20212023 are summarized in the table below. See also Note 14 to our audited consolidated financial statements included in this annual report.
 
TOTAL DEBT
 (1)
 
  (millions(millions of Mexican pesos)
SENIOR NOTES    
  SENIOR NOTES
DENOMINATED IN U.S. DOLLARS
  
América Móvil 3.625% Senior Notes due 2029
   
20,584
16,894 
América Móvil 2.875% Senior Notes due 2030
   16,894
América Móvil 4.700% Senior Notes Due 2032
12,670
20,584
TOTAL DEBT
 (1)
 
(millions of Mexican pesos)
América Móvil 6.375% Senior Notes due 2035
   
20,199
16,578 
América Móvil 6.125% Senior Notes due 2037
   
7,600
6,238 
América Móvil 6.125% Senior Notes due 2040
   
41,167
33,711 
América Móvil 4.375% Senior Notes due 2042
   
23,671
19,428 
América Móvil 4.375% Senior Notes due 2049
   21,117
25,729
Total
  
Ps.
143,528
DENOMINATED IN MEXICAN PESOS
Commercial Paper 11.439% due 2024
200 
América Móvil TIIE + 0.020% Domestic Senior Notes due 2024
Total
 (2)
   
159,534
1,357 
  DENOMINATED IN MEXICAN PESOS
América Móvil TIIE + 0.050% Domestic Senior Notes due 2024
   
1,920 
  América Móvil 6.450% Senior Notes due 2022
22,500
América Móvil 7.125% Senior Notes due 2024
   
11,000
 
América Móvil 0.000% Domestic Senior Notes due 2025
   
5,285
5,930 
América Móvil TIIE + 0.050% Domestic Senior Notes due 2025
3,000
América Móvil TIIE + 0.300% Domestic Senior Notes due 2025
410
América Móvil 9.350% Senior Notes due 2028
11,016
América Móvil 9.500% Senior Notes due 2031
17,000
América Móvil 9.520% Domestic Senior Notes due 2032
14,679
América Móvil 8.460% Senior Notes due 2036
   
7,872
 
Telmex 8.360% Domestic Senior Notes due 2037
   
5,000
4,964 
Total
América Móvil 4.840% Domestic Senior Notes due 2037
   10,579
51,657
Total
  
Ps.
89,927
DENOMINATED IN EURO
Commercial Paper 4.110% - 4.210% due 2024
   
9,511 
  TKA 4.000% Senior NotesExchangeable Bond 0.00% due 20222024
   
17,566
37,663 
  TKA 3.500% Senior Notes due 2023
7,027
  América Móvil 3.259% Senior Notes due 2023
17,566
América Móvil 1.500% Senior Notes due 2024
   
19,909
15,851 
  Exchangeable Bond 0.00% due 2024
49,116
TKA 1.500% Senior Notes due 2026
   
17,566
13,987 
América Móvil 0.750% Senior Notes due 2027
   
23,422
14,095 
América Móvil 2.125% Senior Notes due 2028
   
15,224
11,122 
Total
TKA 5.250% Senior Notes due 2028
   
167,396
9,324
 
  DEBT
Total
  
 
Ps.
111,554
DENOMINATED IN BRAZILIAN REAIS
  
  (millions of Mexican pesos)Claro Brasil CDI + 1.400% Domestic Senior Notes due 2024
   
14,830 
Claro Brasil CDI + 1.100% Domestic Senior Notes due 2024
3,489
Claro Brasil CDI + 1.370% Domestic Senior Notes due 2025
5,234
Claro Brasil CDI + 1.350% Domestic Senior Notes due 2026
5,234
Total
 
Ps.
28,788
DENOMINATED IN POUND STERLING
  
América Móvil 5.000% Senior Notes due 2026
   
13,925
10,754 
América Móvil 5.750% Senior Notes due 2030
   
18,102
13,980 
América Móvil 4.948% Senior Notes due 2033
   
8,355
6,452 
América Móvil 4.375% Senior Notes due 2041
   16,130
20,887
Total
Ps.
47,316
35


TOTAL DEBT
 (1)
 
(millions of Mexican pesos)
 
Total
61,269
DENOMINATED IN JAPANESE YEN
  
América Móvil 2.950% Senior Notes due 2039
   
2,326
1,557
 
Total
  
2,326
Ps.
1,557
DENOMINATED IN CHILEAN PESOS
  
América Móvil 3.961%4.000% Senior Notes due 2035
   
3,776
3,541
 
Total
  
3,776
Ps.
3,541
  DENOMINATED IN BRAZILIAN REAIS
  Claro Brasil CDI + 0.960% Domestic Senior Notes due 2022
9,221
  Claro Brasil 106.000% of CDI Domestic Senior Notes due 2022
7,377
  Claro Brasil 106.500% of CDI Domestic Senior Notes due 2022
3,688
Total
20,286
  HYBRID NOTES
  DENOMINATED IN EURO
  América Móvil NC10 (Series B) Capital Securities due 2073
12,882
Total
12,882
BANK DEBT AND OTHER
   
 
  DENOMINATED IN US DOLLARS
14,724
DENOMINATED IN EUROS
   18,738
10,443 
DENOMINATED IN MEXICAN PESOS
   34,080
52,680 
  DENOMINATED IN CHILEAN PESOS
7,467
DENOMINATED IN PERUVIAN SOLES
   9,81511,343 
  DENOMINATED IN OTHER CURRENCIES
80
Total
  
84,904
Ps.
74,466
Total Debt
  
564,030
Ps.
500,677
Less short-term debt and current portion of long-term debt
   145,223160,964 
Total Long-term Debt
  
418,807
Ps.
339,713
  EQUITY(1)
Totals may not sum due to rounding.
(2)
The notes matured on April 22, 2024, and were paid in full.
  
  Capital stock
96,333
Total retained earnings
447,690
  Other comprehensive income (loss) items
(154,389)
  Non-controlling
interest
64,407
Total Equity
454,041
Total Capitalization (total long-term debt plus equity)
872,848
32

Additional information about certain categories of our indebtedness is provided below:below. These categories are not mutually exclusive, and a borrowing may belong to more than one category of indebtedness.
Mexican peso-denominated international notes.notes and global peso notes program.
Our 8.46% senior notes due 2036 are denominated in Mexican pesos, but all amounts in respect of the notes are payable in U.S. dollars, unless a holder of notes elects to receive payment in Mexican pesos in accordance with specified procedures. In contrast, notes issued under our global peso notes program (as described below) are denominated and payable in Mexican pesos only.
Under our global peso notes program, we have historically issued Mexican peso-denominated notes that can be distributed and traded in Mexico and internationally. The notes are registered with the SEC in the United States and with the CNBV in Mexico. On July 6, 2023, we issued a Ps.17 billion (approximately U.S.$ 1 billion) 9.500% sustainable bond maturing in January 2031. On February 1, 2024, we issued a Ps.20 billion (approximately U.S.$1.1 billion)
10.300% sustainable bond maturing in 2034. Proceeds obtained from these two series of notes may be used, in whole or in part, to finance or refinance expenditures and investments in new or existing environmental and high impact social projects under our sustainable finance framework.
Mexican peso-denominated domestic notes.
Our domestic senior notes (
certificados bursátiles
) sold in the Mexican capital markets have varying maturities, ranging from 20252024 through 2037, and bear interest at fixed, floating and inflation-linked rates. Pursuant to our current
Global peso notes program.
The global pesodomestic senior notes program, was establishedwe may issue long-term debt in Mexican pesos or Investment Units (
unidades de inversion
, or UDIs) and short-term debt (
papel comercial
). On November 2012. Since its establishment,29, 2022, we have issued peso-denominated notes that can be distributed and traded onraised Ps.24 billion pursuant to a seamless basis in Mexico and internationally.four-tranche bond issuance. The notes are registered with the SECissuance included a
10-year
note in the United Statesamount of Ps.14.7 billion with a 9.520% coupon and an inflation-protected bond with the CNBVa 15 year maturity and a 4.840% coupon for a total amount of Ps.7.1 billion. Proceeds obtained from these two series of notes may be used, in Mexico.whole or in part, to finance or refinance expenditures and investments in new or existing environmental and high impact social projects under our sustainable finance framework. On December 21, 2023, we issued Ps.200 million in short-term debt (
papel comercial
) under this program.
International notes.
We have outstanding debt securities in the international markets denominated in U.S. dollars, pounds sterling and euros. We have also issued debt securities in the local market in Japan.
In April 2022, we issued a total of U.S.$1 billion aggregate principal amount of 5.375% senior notes. On the date on which Sitios is duly incorporated in accordance with Mexican law and the resolutions approved by our shareholders in the extraordinary shareholders’ meeting dated as of September 29, 2021 (the
“Spin-off
Effective Date”), Sitios will assume all of our obligations under the aforementioned notes and the associated indenture, and we will be released from all of our obligations under such notes and indenture.
Hybrid notes.
We have outstanding one series of Capital Securities maturing in 2073, denominated in euros totaling
550 million. The Capital Securities are subject to redemption at our option at varying dates beginning in 2023. Our hybrid notes are deeply subordinated, and when they were issued, the principal rating agencies stated that they would treat half of the principal amount as indebtedness for purposes of evaluating our leverage (an analysis referred to as 50% equity credit). Standard & Poor’s now treats 100% of the principal amount under the hybrid notes as indebtedness.
Bank loans.
At December 31, 2021,2023, we had approximately Ps.84.9Ps.74.5 billion outstanding under a number of bank facilities bearing interest at fixed and variable rates. We also have two revolving syndicated credit facilities—one for U.S.$2.5 billion expiring in August 2024February 2029 and one for the Euro equivalent of U.S.$1.5 billion expiring in May 2026, which contains a
sustainability-linked framework. As long as the facilities are committed, a commitment fee is paid. As of December 31, 2021,2023, these credit facilities were not drawn. Both facilities include covenants that limit our ability to incur secured debt, to effect a merger in which the surviving entity would not be América Móvil or to sell substantially all of our assets. In addition, both facilities require us to maintain a consolidated ratio of debt to EBITDA not greater than 4.0 to 1.0 and a consolidated ratio of EBITDA to interest expense not less than 2.5 to 1.0. As of the date of this annual report, we are in compliance with these covenants.
Telekom Austria has an undrawn revolving syndicated credit facility for
1.0 billion (the “TKA Facility”) expiring in July 2026. The TKA Facility includes covenants that limit Telekom Austria’s ability to incur secured debt, effect certain mergers or sell substantially all of its assets and our ability to transfer control over, or reduce our share ownership in, Telekom Austria. For more information, see Note 14 to our audited consolidated financial statements included in this annual report. In addition to the bank loans summarized in the table above, in March 2022, we entered into a credit agreement providing for borrowings in an amount up to Ps.20,558,500,000 (the “Sitios Credit Facility”) with a group of lenders that includes affiliates and BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México, as administrative agent for the lenders. The full principal amount available under this facility was disbursed on March 23, 2022. On the
Spin-off
Effective Date, we will be released from our obligations under the Sitios Credit Facility and all liabilities with respect thereto will be transferred to Sitios, and Sitios will assume all of our obligations thereunder. Additionally, on April 14, 2022, Claro Brasil entered into an uncommitted term loan facility agreement for borrowings in an amount up to R$1.7 billion with BNP Paribas S.A. as lender. This facility will maturematured in 2023.
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Options involving TKA shares.
The Company has entered into the sale of a cash-settled put option related to TKA shares that will expire in August 2023. See Note 7 to our audited consolidated financial statements included in this annual report.
Bonds exchangeable for KPN shares.
On March 2, 2021, our wholly-owned Dutch subsidiary, América Móvil B.V., issued approximately EUR 2.1 billion principal amount of senior unsecured bonds. The bonds will maturematured in 3 years, will2024, did not bear interest and were issued at an issue price of 104.75% of their principal amount. The Bonds will beAt maturity, the bonds were exchangeable into ordinary shares of Koninklijke KPN N.V. (“KPN”), and the initial exchange price iswas EUR 3.1185. In February 2024, the Company reduced completely its stake in KPN. The reduction is a consequence of the decision of investors to exercise their respective rights to exchange our exchangeable bond into KPN shares. See Note 7 and Note 25 to our audited consolidated financial statements included in this annual report.
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Euro-denominated commercial paper program.
From time to time, we have issued commercial paper under our euro-denominated commercial paper program. At December 31, 2021, there were no amounts2023, the outstanding amount was Ps.9.5 billion under such program.
As of December 31, 2021,2023, we had, on an unconsolidated basis, unsecured and unsubordinated indebtedness of approximately Ps.391.3Ps.362.5 billion (U.S.$19.021.5 billion), excluding guarantees of subsidiaries’ indebtedness. As of December 31, 2021,2023, our subsidiaries had indebtedness (excluding guarantees of indebtedness of us and our other subsidiaries) of approximately Ps.172.7Ps.138.2 billion (U.S.$8.38.2 billion), and a substantial portion of our subsidiaries’ indebtedness is owed by Telekom Austria..
GUARANTOR FINANCIAL INFORMATION
Some of the public securities issued by América Móvil in international and Mexican capital markets are guaranteed by Telcel, a wholly-owned subsidiary. As of December 31, 2021,2023, the aggregate principal amount of debt guaranteed by Telcel was Ps.106,327 million.Ps.89.4 billion. The guarantees provide that, in case of the failure of the Company to punctually make payment of any principal, premium, interest, additional amounts or any other amounts that may become payable by the Company in respect of the notes, Telcel agrees to immediately pay the amount that is due and required to be paid.
The following tables present summarized unconsolidated financial information for the Company and Telcel after eliminating transactions and balances between them.
 
  
AS OF DECEMBER 31, 2021
 
 
  
PARENT
   
GUARANTOR
   
AS OF DECEMBER 31, 2023
(in millions of Mexican pesos)
 
      
PARENT
 
GUARANTOR
 
Current assets
  Ps.          25,288   Ps.          48,552    Ps.       35,268   Ps.        44,826  
    
Total assets
  
 
  56,794   
 
  221,510    832,409   200,905  
    
Current liabilities
  
 
  80,566   
 
  177,133    122,738   143,858  
    
Total liabilities
  
 
  420,630   
 
  190,518    465,697   149,306  
      
YEAR ENDED DECEMBER 31, 2022
(in millions of Mexican pesos)
 
  
 
 
 
  
 
 
 
  
PARENT
 
GUARANTOR
 
    
Total revenues
  Ps.          -   Ps.          169,203    Ps.      -  Ps.    237,291  
    
Operating Income
  
 
  (27,424)   
 
  99,246    (6,170  89,258  
    
Net profit for the year
  
 
  (66,596)   
 
  100,072    (9,409  87,653  
RISK MANAGEMENT
We regularly assess our interest rate and currency exchange exposures in order to determine how to manage the risk associated with these exposures. We have indebtedness denominated in currencies other than the currency of our operating environments, and we have expenses for operations and for capital expenditures in a variety of currencies. We use derivatives to manage the resulting exchange rate and interest rate exposures. We do not use derivatives to hedge the exchange rate exposures that arise from having operations in different countries. For additional information on market risk, see Note 2 v(ii) to our audited consolidated financial statements included in this annual report.
Our practices vary from time to time depending on our judgment of the level of risk, expectations as to exchange rate or interest rate movements and the costs of using derivative financial instruments. We may stop using derivative financial instruments or modify our practices at any time.
As of December 31, 2021,2023, the net fair value of our derivatives and other financial items was a net assetliability of Ps.0.1Ps.16.5 billion, which are described in Note 7 to our audited consolidated financial statements. For additional information, see Note 2 v to our audited consolidated financial statements included in this annual report.
 
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RISKS RELATING TO OUR OPERATIONS
Competition in the telecommunications industry is intense and could adversely affect the revenues and profitability of our operations
Our businesses face substantial competition. We expect that competition will intensify in the future as a result of the entry of new competitors, the development of new technologies, products and services and convergence. We also expect consolidation in the telecommunications industry, as companies respond to the need for cost reduction and additional spectrum. This trend may result in larger competitors with greater financial, technical, promotional and other resources to compete with our businesses.
Among other things, our competitors could:
provide higher handset subsidies;
offer higher commissions to retailers;
provide free airtime or other services (such as internet access);
offer services at lower costs through double, triple and quadruple play packages or other pricing strategies;
expand their networks faster; or
develop and deploy improved technologies faster, such as 5G LTE technology.
Competition can lead us to increase advertising and promotional spending and to reduce prices for services and handsets. These developments may lead to lower operating margins, greater choices for customers and increasing movement of customers among competitors, which may make it difficult for us to retain or add new customers. The cost of adding new customers may also continue to increase, reducing profitability even if customer growth continues.
Our ability to compete successfully will depend on our coverage, the quality of our network and service, our rates, customer service, effective marketing, our success in selling double, triple and quadruple play packages and our ability to anticipate and respond to various
competitive
factors affecting the telecommunications industry, including new services and technologies, changes in consumer preferences, demographic trends, economic conditions and discount pricing strategies by competitors.
If we are unable to respond to competition and compensate for declining prices by adding new customers, increasing usage and offering new services, our revenues and profitability could decline.
Governmental or regulatory actions could adversely affect our operations
Our operations are subject to extensive government regulation and can be adversely affected by changes in
law, regulation or regulatory policy. The licensing, construction,
operation, sale, resale and interconnection arrangements of telecommunications systems in Latin America and elsewhere are regulated to varying degrees by government or regulatory authorities. Any of these authorities having jurisdiction over our businesses could adopt or change regulations or take other actions that could adversely affect our operations. In particular, the regulation of prices that operators may charge for their services and environmental matters, including renewable energy and climate change regulation, could have a material adverse effect by reducing our profit margins. See “Regulation” under Part VI for a discussion on the functional separation of Telmex and Telnor wholesale services, “Legal Proceedings” under Part VII and Note 17 to our audited consolidated financial statements included in this annual report.
In addition, changes in political administrations could lead to new regulation and the adoption of policies that could adversely affect our operations, including those concerning competition and taxation of communications services. For example, since 2013, Mexico has implemented reforms to the telecommunications sector that aim to promote more competition and investment by imposing asymmetric regulation upon economic agents deemed “preponderant or dominant.” The asymmetric regulations that are applicable to us, which have adversely affected the results of our Mexican operations, may be reviewed every two years. We are unable to anticipate the effect of an amendment on existing asymmetric regulations, or the imposition of new ones, on our results or operations in Mexico. In other countries, we could also face policies such as preferences for local over foreign ownership of communications licenses and assets or for government over private ownership, which could make it more cumbersome or impossible for us to continue to develop our businesses. Restrictions such as those described above could result in lower revenues andor require capital investments, all of which could materially adversely affect our businesses and results of operations.
Our failure to meet or maintain quality of service goals and standards could result in fines and other adverse consequences
The terms of the concessions under which our subsidiaries operate require them to meet certain service quality goals, including, for example, minimum call completion rates, maximum busy circuits rates, operator availability and responsiveness to repair requests. Failure to meet service quality obligations in the past has resulted in the imposition of material fines by regulatory entities. We are also subject to and may be subject to additional claims by customers, including class actions, seeking remedies for
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service problems. Our ability to comply with these obligations in the future may be affected by factors beyond our control and,
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accordingly, we cannot assure that we will be able to comply with them.
Dominant carrier related regulations could adversely affect our business by limiting our ability to pursue competitive and profitable strategies
Our regulators are authorized to impose specific requirements as to rates (including termination rates), quality of service, access to active or passive infrastructure and information, among other matters, on operators that are determined to have substantial market power in a specific market. We cannot predict what steps regulatory authorities might take in response to determinations regarding substantial market power in the countries in which we operate. However, adverse determinations against our subsidiaries could result in material restrictions on our operations. We may also face additional regulatory restrictions and scrutiny as a result of our provision of combined services.
If dominant carrier regulations are imposed on our business in the future, they could likely reduce our flexibility to adopt competitive market policies and impose specific tariff requirements or other special regulations on us, such as additional requirements regarding disclosure of information or quality of service. Any such new regulation could have a material adverse effect on our operations.
We must continue to acquire additional radio spectrum capacity and upgrade our networks in order to expand our customer base and maintain the quality of our wireless services
Licensed radio spectrum is essential to our growth and the quality of our wireless services and for the operation and deployment of our networks, including new generation networks such as 5G LTE technology, to offer improved data and value-added services. We obtain most of our radio spectrum through auctions conducted by governments of the countries in which we operate. Participation in spectrum auctions in most of these countries requires prior government authorization, and we may be subject to caps on our ability to acquire additional spectrum. Our inability to acquire additional radio spectrum capacity could affect our ability to compete successfully because it could result in, among other things, a decrease in the quality of our network and service and in our ability to meet the demands of our customers.
In the event we are unable to acquire additional radio spectrum capacity, we can increase the density of our network by building more cell and switch sites, but such
measures are costly and may be subject to local restrictions and regulatory approvals, and they would not meet our needs as effectively.
We have concessions and licenses for fixed terms, and the government may revoke or terminate them as well as reacquire the assets under our concession under various circumstances, some of which are beyond our control
Our concessions and licenses have specified terms, ranging typically from five to 20 years, and are generally subject to renewal upon payment of a fee, but renewal is not assured. The loss of, or failure to renew, any one concession could have a material adverse effect on our business and results of operations. Our ability to renew concessions and the terms of renewal are subject to a number of factors beyond our control, including the prevalent regulatory and political environment at the time of renewal. Fees are typically established at the time of renewal. As a condition for renewal, we may be required to agree to new and stricter terms and service requirements. In some of the jurisdictions where we operate and under certain circumstances, mainly in connection with fixed services, we may be required to transfer certain assets covered by some of our concessions to the government pursuant to valuation methodologies that vary in each jurisdiction. It is uncertain whether reversion would ever be applied in many of the jurisdictions where we operate and how reversion provisions would be interpreted in practice. For further information, see “Regulation” under Part VI of this annual report and Note 17 to our audited consolidated financial statements included in this annual report.
In addition, the regulatory authorities in the jurisdictions in which we operate can revoke our concessions under certain circumstances. In Mexico, for example, the Federal Law on Telecommunications and Broadcasting gives the government the right to temporarily seize our concessions or to take over the management of our networks, facilities and personnel in cases of failures to meet obligations under our concession agreements, imminent danger to national security, internal peace or the national economy, natural disasters and public unrest. See “Regulation” under Part VI of this annual report.
We continue to look for acquisition opportunities, and any future acquisitions and related financing could have a material effect on our business, results of operations and financial condition
We continue to look for investment opportunities in telecommunications and related companies worldwide, including in markets where we are already present, and we often have several possible acquisitions under
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consideration. Any future acquisitions, and related financing and acquired indebtedness, could have a material effect on our business, results of operations and financial condition, but we cannot provide assurances that we will complete any of them. In addition, we may incur significant costs and expenses as we
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integrate these companies in our systems, controls and networks.
We are subject to significant litigation
Some of our subsidiaries are subject to significant litigation that, if determined adversely to our interests, may have a material adverse effect on our business, results of operations, financial condition or prospects. Our significant litigation is described in “Regulation” under Part VI and in Note 17 to our audited consolidated financial statements included in this annual report.
We are contesting significant tax assessments
We and some of our subsidiaries have been notified of tax assessments for significant amounts by the tax authorities of the countries in which we operate, especially in Brazil, Mexico and Colombia. The tax assessments relate to, among other things, alleged improper deductions and underpayments. We are contesting these tax assessments in several administrative and legal proceedings, and our challenges are at various stages. The amounts claimed by the tax authorities in these matters are significant. In many cases, we have not established a provision in our audited financial statements for these matters, or the amount claimed may be significantly in excess of any reserve established. We evaluate income tax contingencies applying IAS 12 Income Taxes and IFRIC 23.23 Uncertainty Over Income Tax Treatments. For other tax contingencies we consider the applicable IFRS guidance. Our significant tax assessments are described in Note 17 to our audited consolidated financial statements included in this annual report. If determined adversely to us, these proceedings may have a material adverse effect on our business, results of operations, financial condition or prospects. In addition, in some jurisdictions, challenges to tax assessments require the posting of a bond or security for the contested amount, which may reduce our flexibility in operating our business.
Failure to comply with anti-corruption, anti- briberyanti-bribery and anti-money laundering laws and economic and trade sanctions could harm our reputation, subject us to substantial fines and adversely affect our business
We operate in multiple jurisdictions and are subject to complex regulatory frameworks with increased enforcement activities worldwide. Our governance and compliance processes may not prevent future breaches of legal, accounting or governance standards and regulations. We may be subject to breaches of our code
of ethics, anti-corruption policies and business conduct protocols and to instances of fraudulent behavior, corrupt practices and dishonesty by our employees, contractors or other agents. Our or our contractors’ failure to comply with applicable laws and other regulatory requirements, including those relating to anti-corruption, anti-bribery and anti-money laundering laws and economic and trade sanctions, could harm our reputation, subject us to substantial fines, sanctions or penalties and adversely affect our business and ability to access financial markets.
A system failure could cause delays or interruptions of service, which could have an adverse effect on our operations
We need to continue to provide our subscribers with a reliable service over our network. Some of the risks to our network and infrastructure include the following:
physical damage to access lines and fixed networks;
power surges or outages;
natural disasters;
climate change;
malicious actions, such as theft or misuse of customer data;
limitations on the use of our radio bases;
software defects;
human error; and
other disruptions beyond our control, including as a result of civil unrest in the regions where we operate.
In Brazil, for example, our satellite operations may be affected if we experience a delay in launching new satellites to replace those currently in use when they reach the end of their operational lives.
Such delay may occur because of, among other reasons, construction delays, unavailability of launch vehicles and/ or launch failures. In addition, our operations have been disrupted by natural disturbances such as hurricanes and earthquakes.
We have instituted measures to reduce these risks. However, there is no assurance that any measures we implement will be effective in preventing system failures under all circumstances. System failures may cause interruptions in services or reduced capacity for our customers, either of which may have an adverse effect on our operations due to, for example, increased expenses, potential legal liability, loss of existing and potential subscribers, reduced user traffic, decreased revenues and reputational harm.
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Our financial condition and results of operations may be adversely affected by the occurrence of severe weather, natural or
man-made
disasters and other catastrophic events, including war, terrorism and other acts of violence, and disease
Our operations can be disrupted by unforeseen events, including war, terrorism, and other international, regional, or local instability or conflicts (including labor issues), embargos, public health issues (including tainted food, food-borne illnesses, food tampering, tampering with or failure of water supply or widespread or pandemic illness such as coronavirus
(“COVID-19”),
Ebola, the avian or H1N1 flu, MERS), and natural disasters such as earthquakes, tsunamis, hurricanes, or other adverse weather and climate conditions in the countries in which we operate. These events could
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disrupt or prevent our ability to perform functions and otherwise impede our ability to continue business operations in a continuous manner, which in turn may materially and adversely impact our business and operating results.
Effects of climate change may impose risk of damage to our infrastructure and our ability to provide services, all of which may result in potential adversecould adversely impact to our financial results
Extreme weather events precipitated by long-term climate change have the potential to directly damage network facilities or disrupt our ability to build and maintain portions of our network and could potentially disrupt suppliers’ ability to provide products and services required to provide reliable network coverage. Any such disruption could delay network deployment plans, interrupt service for our customers, increase our costs and have a negative effect on our operating results. The potential physical effects of climate change, such as increased frequency and severity of storms, floods, fires, freezing conditions,
sea-level
rise, and other climate-related events, could adversely affect our operations, infrastructure, and financial results. Operational impacts resulting from the potential physical effects of climate change, such as damage to our network infrastructure, could result in increased costs and loss of revenue. We could incur significant costs to improve the climate resiliency of our infrastructure and otherwise prepare for, respond to, and mitigate such physical effects of climate change. We are not able to accurately predict the materiality of any potential losses or costs associated with the physical effects of climate change.
Public health crises including the
COVID-19
pandemic, could materially adversely affect our business, financial condition and results of operations
We are subject to risks related to public health crises, such as was the case with the
COVID-19
pandemic, which had an adverse effect on our operating results in 2020.pandemic. Our business
is based on our ability to provide products and services to customers throughout Mexico and around the world and the ability of those customers to use and pay for those products and services for their businesses and in their daily lives. As a result, our business, financial condition and results of operations could be materially adversely affected by a crisis, like the
COVID-19
pandemic, that significantly impacts the way customers use and are able to pay for our products and services, the way our employees are able to provide services to our customers, and the ways that our partners and suppliers are able to provide products and services to us. For example, public and private sector policies and initiatives to reduce the transmission of
COVID-19,
including the initiatives we took in response to the health crisis to promote the health and safety
of our employees and provide critical infrastructure and connectivity to our customers, along with the related global slowdown in economic activity, contributed to decreased net profit for the year and lower earnings per share during 2020.
In addition, suchSuch a crisis could significantly increase the probability or consequences of the risks our business faces in ordinary circumstances, such as risks associated with our supplier and vendor relationships, risks associated with employee health and productivity, risks of an economic slowdown, regulatory risks, and the costs and availability of financing. Because the severity, magnitude and duration of the
COVID-19
pandemic and its economic consequences are uncertain and rapidly changing, the impact on our business, financial condition and results of operations in 2022 and beyond remains uncertain and difficult to predict. In addition, the ultimate impact of the
COVID-19
pandemic on our business, financial condition and results of operations depends on many factors, including those discussed above, that are not within our control.
Many of our employees are unionized and increases in labor and employee benefit costs may reduce our profitability, increase our funding requirements and could have an adverse impact on our operations
Many of our employees are members of labor unions with which we conduct collective negotiations on wages, benefits and working conditions. We use actuarial methodologies and assumptions such as discount rate, salary increase and mortality, among others, for the determination and valuation of our employee benefits, including retirement benefits. We evaluate from time to time, with the support of specialists, our actuarial methodologies and assumptions, as well as the valuation of the assets related to these benefits.
Our labor costs and the costs of maintaining employee benefits are substantial, and could be affected by several factors, including legislative and regulatory changes, work stoppages, subsequent negotiations, increases in healthcare costs or in minimum wages, decreases in investment returns on the assets held in funds to support the payment of certain employee benefits and changes in the discount rate and mortality assumptions. An increase in labor and employee benefit costs could reduce our profitability, increase our funding requirements and have an adverse impact on our operations.
Inflationary pressures on costs may impact our network construction, financial condition and results of operations
As a provider of telecommunications and technology services, we sell handsets, wireless data cards, wireless computing devices and customer premises equipment manufactured by various suppliers. We depend on suppliers to provide us,
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directly or through other suppliers, with items such as network equipment, customer premises equipment, and wireless-related
43

equipment such as mobile hotspots, handsets, wirelessly enabled computers, wireless data cards and other connected devices for our customers. In 20212023 and 20222024 year to date, the costs of these inputs and the costs of labor necessary to develop and maintain our networks and our products and customer care services have rapidly increased. In addition, many of these inputs are subject to price fluctuations from a number of factors, including, but not limited to, market conditions, demand and volatility in the prices for raw materials used in the production of these devices and network components, weather, climate change, energy costs (including as a result of the ongoing conflict in Ukraine, which has resulted in historically high energy market prices), currency fluctuations, supplier capacities, governmental actions, import and export requirements (including tariffs), and other factors beyond our control.
Although we are unable to predict the impact on our ability to source materials in the future, we expect these supply pressures to continue into 2022.2024. We also expect the pressures of input cost inflation to continue into 2022.2024.
Our attempts to offset these cost pressures, such as through increases in the selling prices of some of our products and services, may not be successful. Higher product prices may result in reductions in sales volume. Consumers may be less willing to pay a price differential for our products and may increasingly purchase lower-priced offerings, or may forego some purchases altogether, during an economic downturn. To the extent that price increases are not sufficient to offset these increased costs adequately or in a timely manner, and/or if they result in significant decreases in sales volume, our business, financial condition or operating results may be adversely affected. Furthermore, we may not be able to offset any cost increases through productivity and cost-saving initiatives. In addition, widespread inflation may reduce the purchasing power of consumers for our products and services.
We rely on highly skilled personnel throughout all levels of our business. Our business could be harmed if we are unable to retain or motivate key personnel, hire qualified personnel or maintain our corporate culture
The market for highly skilled workers and leaders in our industry is extremely competitive. We believe that our future success depends in substantial part on our ability to recruit, hire, motivate, develop, and retain talented personnel for all areas of our organization, including our CEO and the other members of our senior leadership team. Our inability to retain these employees or to replace them with qualified and capable successors could
hinder our strategic planning and execution. If key employees depart, our business could be negatively impacted. We may incur significant costs in identifying, hiring and replacing departing employees and
may lose significant expertise and talent. As a result, we may not be able to meet our business plan and our revenue growth and profitability may be materially adversely affected.
Cybersecurity incidents and other breaches of network or information technology security could have an adverse effect on our business and our reputation
Cybersecurity incidents, and other tactics designed to gain access to and exploit sensitive information by breaching critical systems of large companies, are evolving and have been increasing in both sophistication and occurrence in recent years. While we employ a number of measures to prevent, detect and mitigate such incidents, there is no guarantee that we will be able to adequately anticipate or prevent one. Cybercrime, including attempts to overload our servers with
denial-of-service
attacks, theft, social engineering, phishing, ransomware or similar disruptions from unauthorized access or attempted unauthorized access to our systems could result in the destruction, misuse or release of personal information or other sensitive data. However, it is difficult to detect or prevent evolving forms of cybersecurity incidents, and our systems, and those of our third-party service providers and of our customers, are vulnerable to cybersecurity incidents.
In the event that our systems are breached or damaged for any reason, we may suffer loss or unavailability of data and interruptions to our business operations. If such an event occurs, the unauthorized disclosure, loss or unavailability of data and the disruption to our fixed-line or wireless networks may have a material adverse effect on our business and results of operations. The costs associated with a cybersecurity incident could include increased expenditures on information and cybersecurity measures, damage to our reputation, loss of existing customers and business partners and lead to financial losses from remedial actions and potential liability, including possible litigation and sanctions. Any of these occurrences may result in a material adverse effect on our results of operations and financial condition.
Failure to achieve proper data governance could lead to data mismanagement
We process large amounts of personally identifiable information of customers and employees and are subject to various compliance, security, privacy, data quality and regulatory requirements. Failure to achieve proper data
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governance could lead to data mismanagement which in turn could result in data loss, regulatory investigations or sanctions, and cybersecurity risk. We are subject to data privacy regulations in the countries where we operate. Complying with such regulations may expose us to increased costs and limit our ability to transfer data between certain jurisdictions, which may adversely affect our operations.
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If our churn rate increases, our business could be negatively affected
The cost of acquiring a new subscriber is much higher than the cost of maintaining an existing subscriber. Accordingly, subscriber deactivations, or “churn,” could have a material negative impact on our operating income, even if we are able to obtain one new subscriber for each lost subscriber. A substantial majority of our subscribers are prepaid, and we do not have long-term contracts with them. Our average churn rate on a consolidated basis was 3.3%2.9% for the year ended December 31, 20212023, and 3.8%3.2% for the year ended December 31, 2020.2022. If we experience an increase in our churn rate, our ability to achieve revenue growth could be materially impacted. In addition, a decline in general economic conditions could lead to an increase in churn, particularly among our prepaid subscribers.
We rely on key suppliers to provide equipment that we need to operate our business
We rely upon various key suppliers to provide us with handsets, network equipment or services, which we need to expand and operate our business. Our key suppliers include Huawei, Ericsson and Alcatel.Nokia. If these suppliers fail to provide equipment or service to us on a timely basis, we could experience disruptions, which could have an adverse effect on our revenues and results of operations. In addition, we might be unable to satisfy requirements under our concessions.
Government or regulatory actions with respect to certain suppliers may impact us. For example, the U.S. Federal Communications Commission adopted rules blocking the importation or sale of certain technology products that it said pose security risks to U.S. critical infrastructure, including products of Chinese technology suppliers. The government of the United States and Canada, among others, are currently conducting a regulatory reviewis likewise urging other countries to avoid the operations of certain internationalChinese suppliers of network equipment and technologies to evaluate potential risks. We are currently unablein their territory. The escalation of U.S. restrictions on certain foreign technologies and the impact of such restrictions on our operations, which can be difficult to predict, the outcome of such reviews, including any possible restrictions placed onmay adversely affect our key suppliers,business, reputation and as a result we cannot determine their potential impact on our business.financial condition.
Our ability to pay dividends and repay debt depends on our subsidiaries’ ability to pay dividends and make other transfers to us
We are a holding company with no significant assets, other than the shares of our subsidiaries and our holdings of cash and cash equivalents. Our ability to pay dividends and repay debt depends on the continued transfer to us of dividends and other income from our subsidiaries. The ability of our subsidiaries to pay dividends and make other transfers to us may be limited by various regulatory, contractual and legal constraints that affect them.
We may fail to realize the benefits anticipated from acquisitions, divestments and significant investments we make from time to time
The business growth opportunities, revenue benefits, cost savings and other benefits we anticipated to result from our acquisitions, divestments and significant investments may not be achieved as expected or may be delayed. Our divestments may also adversely affect our prospects. For example, we may be unable to fully implement our business plans and strategies for the combined businesses due to regulatory limitations, and we may face regulatory restrictions in our provision of combined services in some of the countries in which we operate. To the extent that we incur higher integration costs or achieve lower revenue benefits or fewer cost savings than expected, or if we are required to recognize impairments of acquired assets, investments or goodwill, our results of operations and financial condition may suffer.
A downgrade of Mexico’s credit rating could affect us
Credit rating agencies regularly evaluate Mexico and its sovereign rating based on various factors including macroeconomic trends, tax and budgetary conditions and indebtedness metrics. If Mexico’s sovereign credit rating is downgraded by credit rating agencies, the rating of our securities may also be downgraded, which could negatively affect our financing costs and the market price of our securities.
Changing expectations from stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks
InfluentialCustomers, regulators, influential investors and other stakeholders are increasingly focused on the environmental, social and governance (“ESG”) practices of companies across all industries. If we do not adapt to or comply with evolving expectations, or if we are perceived to have not responded appropriately to the growing concern for ESG issues, regardless of whether there is a legal requirement to do so, we may suffer from reputational damage, and our business, financial
45

condition or stock price could be materially and adversely affected.
Views about ESG are diverse and rapidly changing, and there is currently no market consensus on what precise attributes are required for a particular project to be defined as “green,” “social” or “sustainable.” Therefore, no assurance can be provided that any projects considered by us as “green,” “social” or “sustainable” will meet all stakeholder expectations regarding social, environmental or sustainability performance. There can be no guarantee that our projects will deliver environmental, social and/ or sustainability benefits as anticipated, or that adverse environmental, social and/or sustainability impacts will not occur during the operation of such projects. If we do not meet our stakeholders’ expectations or we are not effective in addressing ESG matters or achieve relevant sustainability goals, trust in our brand may suffer and our business or our ability to access capital could be harmed.
Negative or inaccurate information on social media or elsewhere could adversely affect our reputation
Negative or inaccurate information concerning or affecting us or our trademarks may be posted at any time on social media and similar platforms, including weblogs (blogs), social media websites, and other forms of Internet-based communications which allow individual access to a broad audience of consumers and other interested persons. This information may harm our reputation without affording us an opportunity for redress or correction, which could in turn have a material adverse effect on our business, financial condition and results of operations.
42
Our management identified a material weakness in our internal control over financial reporting

our consolidated financial statements as of and for the year ended December 31, 2023. In light of a material weakness in our Colombian subsidiary related to certain ineffective information technology general controls (“ITGCs”) that are relevant for the preparation of financial statements, our management concluded that our internal control over financial reporting was not effective at December 31, 2023. For more information, see “Governance––Controls and Procedures––Management’s Annual Report on Internal Control over Financial Reporting” under Part V of this annual report. We also identified a material weakness related to ITGCs in Colombia as of December 31, 2022 (the “2022 Material Weakness”). We disclosed the circumstances given rise to the 2022 Material Weakness in our annual report on Form 20-F for the year ended December 31, 2022.
We cannot be certain that additional material weaknesses will not develop or be discovered in the future. There is also a risk that there could be accounting errors in our financial reporting. If our efforts to remediate any material weakness are unsuccessful, we may be unable to report our results of operations for future periods accurately and in a timely manner and make our required filings with government authorities, including the SEC. Any of these occurrences could adversely affect our results of operation and financial condition.
RISKS RELATING TO THE TELECOMMUNICATIONS INDUSTRY GENERALLY
Changes in the telecommunications industry could affect our future financial performance
The telecommunications industry continues to experience significant changes as new technologies are developed that offer subscribers an array of choices for their communications needs. These changes include, among others, regulatory changes, evolving industry standards, ongoing improvements in the capacity and quality of digital technology, shorter development cycles for new products, evolving renewable energy and clean technologies, the development and adoption of artificial intelligence technology and changes in
end-user
needs and preferences. There is uncertainty as to the pace and extent of growth in subscriber demand, and as to the extent to which prices for airtime, broadband access, Pay TV and fixed-line rental may continue to decline. Our ability to compete in the delivery of high-quality internet and broadband services is particularly important, given the increasing contribution of revenues from data services to our overall growth. If we are unable to meet future advances in competing technologies on a timely basis or at an acceptable cost, we could lose subscribers to our competitors. In general, the development of new services in our industry requires us to anticipate and respond to the varied and continually changing demands of our subscribers. It also requires significant capital expenditure, including investment in the continual maintenance and upgrading of our networks, in order to expand coverage, increase our capacity to absorb higher bandwidth usage and adapt to new technologies. We may not be able to accurately predict technological trends or the success of new services in the market. In addition, there could be legal or regulatory restraints to our introduction of new services. If these services fail to gain acceptance in the marketplace, or if costs associated with implementation and completion of the introduction of these services materially increase, our ability to retain and attract subscribers could be adversely affected. This is true across many of the services we provide, including wireless and cable technology.
46

The intellectual property used by us, our suppliers or service providers may infringe on intellectual property rights owned by others
Some of our products and services use intellectual property that we own or license from others. We also provide content we receive from content producers and distributors, such as ringtones, text games, video games, video, including TV programs and movies, wallpapers or screensavers, and we outsource services to service providers, including billing and customer care functions, thatwhich incorporate or utilize intellectual property. We and some of our suppliers, content
distributors and service providers have received, and may receive in the future, assertions and claims from third parties that the content, products or software utilized by us or our suppliers, content producers and distributors and service providers infringe on the patents or other intellectual property rights of these third parties. These claims could require us or an infringing supplier, content distributor or service provider to cease engaging in certain activities, including selling, offering and providing the relevant products and services. Such claims and assertions also could subject us to costly litigation and significant liabilities for damages or royalty payments or require us to cease certain activities or prevent us from selling certain products or services.
Concerns about health risks relating to the use of wireless handsets and base stations may adversely affect our business
Portable communications devices have been alleged to pose health risks, including cancer, due to radio frequency emissions. Lawsuits have been filed in the United States against certain participants in the wireless industry alleging various adverse health consequences as a result of wireless phone usage, and our subsidiaries may be subject to similar litigation in the future.
Government authorities could increase regulation on electromagnetic emissions of mobile handsets and base stations, which could have an adverse effect on our business, financial condition and results of operations. Research and studies are ongoing, and there can be no assurance that further research and studies will not demonstrate a link between radio frequency emissions and health concerns. Any negative findings in these studies could adversely affect the use of wireless technology and, as a result, our future financial performance.
Developments in the telecommunications sector have resulted, and may result, in substantial write-downswritedowns of the carrying value of certain of our assets
Where the circumstances require, we review the carrying value of each of our assets, subsidiaries and investments
in associates to assess whether those carrying values can be supported by the future discounted cash flows expected to be derived from such assets.
Whenever we consider that due to changes in the economic, regulatory, business or political environment, our goodwill, investments in associates, intangible assets or fixed assets may be impaired, we consider the necessity of performing certain valuation tests, which may result in impairment charges. The recognition of impairments of tangible, intangible and financial assets could adversely affect our results of operations.
43

RISKS RELATING TO OUR CONTROLLING SHAREHOLDERS, CAPITAL STRUCTURE AND TRANSACTIONS WITH AFFILIATES
Members of one family may be deemed to control us and may exercise their control in a manner that may differ from the interest of other shareholders
Based on reports of beneficial ownership of our shares filed with the SEC, Carlos Slim Helú, together with his sons, daughters and grandchildren (together, the “Slim Family”) may be deemed to control us. The Slim Family may be able to elect a majority of the members of our Board of Directors and to determine the outcome of other actions requiring a vote of our shareholders. The interests of the Slim Family may diverge from the interests of our other investors.
We have significant transactions with affiliates
We engage in various transactions with Telesites, S.A.B. de C.V. (“Telesites”), Sitios Latam and certain subsidiaries of Grupo Carso, S.A.B. de C.V. (“Grupo Carso”) and Grupo Financiero Inbursa, S.A.B. de C.V. (“Grupo Financiero Inbursa”), all which may be deemed for certain purposes to be under common control with América Móvil.
These transactions occur in the ordinary course of business. Transactions with affiliates may create the potential for conflicts of interest.
We also make investments together with related parties, sell investments to related parties and buy investments from related parties. For more information about our transactions with affiliates, see “Related Party Transactions” under Part IV of this annual report.
Our bylaws restrict transfers of shares in some circumstances
Our bylaws provide that any acquisition or transfer of 10.0% or more of our capital stock by any person or group of persons acting together requires the approval of our Board of Directors. You may not acquire or transfer
47

10.0% or more than 10.0% of our capital stock without the approval of our Board of Directors.
The protections afforded to minority shareholders in Mexico are different from those in the United States
Under Mexican law, the protections afforded to minority shareholders are different from those in the United States. In particular, the law concerning fiduciary duties of directors is not as fully developed as in other jurisdictions, the procedure for class actions is different, and there are different procedural requirements for bringing shareholder lawsuits. As a result, in practice it may be more difficult for minority shareholders of América Móvil to seek remedies against us
or our directors or controlling shareholders than it would be for shareholders of a company incorporated in another jurisdiction, such as Delaware.
Holders of L Shares and L Share ADSs have limited voting rights
Our bylaws provide that holders of L Shares are not permitted to vote, except on such limited matters as, among others, the transformation or merger of América Móvil or the cancellation of registration of the L Shares with the Mexican Securities Registry (
Registro Nacional de Valores
, or “RNV”) maintained by the CNBV or any stock exchange on which they are listed. If you hold L Shares or L Share ADSs, you will not be able to vote on most matters, including the declaration of dividends, which are subject to a shareholder vote in accordance with our bylaws.
Holders of ADSs are not entitled to attend shareholders’ meetings, and they may only vote through the depositary
Under our bylaws, a shareholder is required to deposit its shares with a custodian in order to attend a shareholders’ meeting. A holder of ADSs will not be able to meet this requirement and, accordingly, is not entitled to attend shareholders’ meetings. A holder of ADSs is entitled to instruct the depositary as to how to vote the shares represented by ADSs, in accordance with procedures provided for in the deposit agreements,agreement, but a holder of ADSs will not be able to vote its shares directly at a shareholders’ meeting or to appoint a proxy to do so.
Our bylaws may only be enforced in Mexico
Our bylaws provide that legal actions relating to the execution, interpretation or performance of the bylaws may be brought only in Mexican courts. As a result, it may be difficult for
non-Mexican
shareholders to enforce their shareholder rights pursuant to the bylaws.
It may be difficult to enforce civil liabilities against us or our directors, officers and controlling persons
América Móvil is organized under the laws of Mexico, with its principal place of business in Mexico City, and most of our directors, officers and controlling persons reside outside the United States. In addition, all or a substantial portion of our assets and their assets are located outside of the United States. As a result, it may be difficult for investors to effect service of process within the United States on such persons or to enforce judgments against them, including in any action based on civil liabilities under U.S. federal securities laws.
There is doubt as to the enforceability against such persons in Mexico, whether in original actions or in
actions to judgments of U.S. courts, of liabilities based solely on U.S. federal securities laws.
44

You may not be entitled to participate in future preemptive rights offerings
Under Mexican law, if we issue new shares for cash as part of certain capital increases, we must grant our shareholders the right to purchase a sufficient number of shares to maintain their existing ownership percentage in América Móvil. Rights to purchase shares in these circumstances are known as preemptive rights. Pursuant to Mexican Securities Market Law our shareholders may delegate to our Board of Directors the right to approve certain capital increases as well as the exclusion of preemptive rights over these capital increases. Our shareholders do not have preemptive rights in certain circumstances such as mergers, convertible debentures, public offers and placement of repurchased shares. We may not be legally permitted to allow holders of ADSs or holders of L Shares or AB Shares in the United States to exercise any preemptive rights in any future capital increase unless we file a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) with respect to that future issuance of shares. At the time of any future capital increase, we will evaluate the costs and potential liabilities associated with filing a registration statement with the SEC and any other factors that we consider important to determine whether we will file such a registration statement.
We cannot assure you that we will file a registration statement with the SEC to allow holders of ADSs or U.S. holders of L Shares or A SharesB shares to participate in a preemptive rights offering. As a result, the equity interest of such holders in América Móvil may be diluted proportionately. In addition, under current Mexican law, it is not practicable for the depositary to sell preemptive rights and distribute the proceeds from such sales to ADS holders.
RISKS RELATING TO DEVELOPMENTS IN MEXICO AND OTHER COUNTRIES
Economic, political and social conditions in Latin America, the Caribbean and Europe may adversely affect our business
Our financial performance may be significantly affected by general economic, political and social conditions in the markets where we operate. Many countries in Latin America and the Caribbean, including Mexico, Brazil and Argentina, have undergone significant economic, political and social crises in the past, and these events may occur again in the future. We cannot predict whether changes in political administrations will result in changes in governmental policy and whether such changes will affect
48

our business. Factors related to economic, political and social conditions that could affect our performance include:
significant governmental influence over local economies;
substantial fluctuations in economic growth;
high levels of inflation, including hyperinflation;
changes in currency values;
exchange controls or restrictions on expatriation of earnings;
high domestic interest rates;
price controls;
changes in governmental economic, tax, labor or other policies;
imposition of trade barriers;
changes in law or regulation;
imposition of local requirements or orders, including potential censorship or requirements to provide user information; and
overall political, social and economic instability and civil unrest.
Adverse economic, political and social conditions in Latin America, the Caribbean or in Europe may inhibit demand for telecommunication services and create uncertainty regarding our operating environment or may affect our ability to renew our licenses and concessions, to maintain or increase our market share or profitability and may have an adverse impact on future acquisitions, which could have a material adverse effect on our company. In addition, the perception of risk in the countries in which we operate may have a negative effect on the trading price of our shares and ADSs and may restrict our access to international financial markets.
Our business may also be especially affected by conditions in Mexico and Brazil, two of our largest markets.
For example, Mexicanthe next presidential and congressional elections in July 2018 and July 2021 resultedMexico are scheduled to occur in a new president and in a Congress in which the political party with more members in both houses is a different political party from the parties that have been in power in the past.June 2024. We cannot predict the outcome of these elections or what changes in policy thethis or future Mexican administrationadministrations may adopt, or their impact on our operations. With respect to Brazil, changes in elected representatives and the perceptions of risks in connection with volatility related to elections in Brazil, ongoing corruption and other investigations and policies and potential changes to address these matters or otherwise, including economic and fiscal reforms, may impact our Brazilian operations.
Additionally, in Mexico, economic conditions are strongly impacted by those of the United States. ThereIn the context of the 2024 United States presidential election, there is continuing uncertainty regarding U.S. policies with respect to matters of importance to Mexico and its economy, particularly with respect to trade and migration.
The phase out of the London Interbank Offered Rate (LIBOR), or the replacement of LIBOR with a different reference rate, may adversely affect interest rates
In March 2021, the ICE Benchmark Administration (the Financial Conduct Authority-regulated and authorized administrator of LIBOR) announced that it would cease the publication of the
one-week
and
two-month
U.S. dollar LIBOR after December 31, 2021, and the publication of all remaining U.S. dollar LIBOR tenors after June 30, 2023.
The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee (the “ARRC”), a steering committee comprised of large U.S. financial institutions, has proposed a new index calculated by short term repurchase agreements, backed by U.S. Treasury securities, called the Secured Overnight Financing Rate (“SOFR”) as an alternative
45

Adverse changes in global financial markets could limit our ability and our larger customers’ ability to access capital or increase the cost of capital needed to fund business operations
to LIBOR for useWe fund our capital needs in contracts that are currently indexed to U.S. dollar LIBORpart through borrowings in the public and has proposed a paced market transition plan to SOFR. On July 29, 2021,private credit markets. Adverse changes in the ARRC formally recommended SOFR as its preferred alternative replacement rate for U.S. dollar LIBOR.
Although many of our LIBOR-based obligations provide for alternative methods of calculating the interest rate payable if LIBOR is not reported, the extent and manner of any future changes with respect to methods of calculating LIBOR or replacing LIBOR with another benchmark are unknown and impossible to predict at this time and, as such, may resultcredit markets, including continued increases in interest rates thatdue to governmental monetary policies and domestic and international economic conditions or changes in foreign exchange rates, could increase our cost of borrowing to obtain financing for our operations or refinance our existing indebtedness. We may also incur indebtedness with interest determined on a floating rate basis, which may expose us to future rate increases. We may not hedge or may not be successful in hedging our exposure to floating interest rates or foreign exchange rates. If we are materially higher than currentunable to effectively manage our interest rates. Thisrate exposure, increases in market interest rates could increase such exposure and our debt service obligations, which could materially and adversely affect our results of operations, cash flows and liquidity.
In the context of an international transition to market-based reference rates, in Mexico, the Central Bank (
Banco de México
) has lead an effort to migrate to a new reference rate, “Funding TIIE” (
TIIE de Fondeo
). Since January 1, 2024, use of the existing TIIE rate has been restricted for new agreements and, for existing agreements, the TIIE’s calculation methodology was adjusted in accordance with the new Funding TIIE.
Changes in exchange rates could adversely affect our financial condition and results of operations
We are affected by fluctuations in the value of the currencies in which we conduct operations compared to the currencies in which our indebtedness is denominated. Such changes result in exchange losses or gains on our net indebtedness and accounts payable. In 2021,2023, we reported net foreign exchange lossesgains of Ps.17.0Ps.14.7 billion.
In addition, currency fluctuations between the Mexican peso and the currencies of our
non-Mexican
subsidiaries affect our results as reported in Mexican pesos. Currency fluctuations are expected to continue to affect our financial income and expense.
Major depreciation of the currencies in which we conduct operations could cause governments to impose exchange controls that would limit our ability to transfer funds between us and our subsidiariessubsidiaries. Major depreciation of the currencies in which we conduct operations may result in disruption of the international foreign exchange markets and may limit our ability to transfer or to convert such currencies into U.S. dollars and other currencies for the purpose of making timely payments of interest and
49

principal on our indebtedness. The government of Argentina has adopted exchange controls and restrictions on the movement of capital and has taken other measures in response to capital flight and the significant depreciation of the Argentine peso. In addition, although the Mexican government does not currently restrict, and for many years has not restricted, the right or ability of Mexican or foreign persons or entities to convert Mexican pesos into U.S. dollars or to transfer other currencies out of Mexico, it could institute restrictive exchange rate policies in the future. Similarly, the Brazilian government may impose temporary restrictions on the conversion of Brazilian reais into foreign currencies and on the remittance to foreign investors of proceeds from investments in Brazil whenever there is a
serious imbalance in Brazil’s balance of payments or a reason to foresee a serious imbalance.
Developments in other countries may affect the market price of our securities and adversely affect our ability to raise additional financing
The market value of securities of Mexican companies is, to varying degrees, affected by economic and market conditions in other countries, including the United States, the European Union (the “EU”) and emerging market countries. Although economic conditions in such countries
may differ significantly from economic conditions in Mexico, investors’ reactions to developments in any of these other countries may have an adverse effect on the market value of securities of Mexican issuers. Crises in the United States, the EU and emerging market countries may diminish investor interest in securities of Mexican issuers. For example, in response to the ongoing military conflict involving Russia and Ukraine, the United States, other North Atlantic Treaty Organization member states, as well as
non-member
states, have announced targeted economic sanctions on Russia, certain Russian citizens and enterprises. The continuation of the conflict may trigger a series of additional economic and other sanctions enacted by the United States, other North Atlantic Treaty Organization member states, and other countries. This could materially and adversely affect economic conditions, the market price of our securities and our operations in Belarus, and could also make it more difficult for us to access the capital markets and finance our operations in the future on acceptable terms or at all. The ongoing military conflict in the Middle East is also a source of uncertainty. The conflict could bring about disruption, instability and volatility in global markets and supply chains, which could in turn adversely affect our business operations and financial performance.
 
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The following table sets forth our capital structure as of March 31, 2022.
2024.
 
  SERIES
  
NUMBER OF
SHARES
(MILLIONS)
   
PERCENT OF
COMBINED
CAPITAL
  
A SHARES AND
AA SHARES
(1)
 
    
  L Shares
   43,164    67.2  —   
  (no par value)
    
  AA Shares
   20,555    32.0  97.6
  (no par value)
    
  A Shares
   498    0.8  2.4
  (no par value)
    
  Total
(2)
  
 
64,217
 
  
 
100
 
 
100
 
(1)
  The AA Shares and A Shares of América Móvil, together, are entitled to elect a majority of our directors. Holders of L Shares are entitled to limited voting rights under our bylaws. See “Bylaws—Voting Rights” under this Part IV.
(2)
  Figures in the table may not recalculate exactly due to rounding.
   
   
 SERIES
(1)
 
NUMBER OF SHARES
(MILLIONS)
     
PERCENT OF 
CAPITAL
 
 Outstanding B
 Shares
 (no par value)
  62,144      100%
 Total
 
 
62,144
 
    
 
100
%
(1)
  On December 20, 2022, our shareholders approved the Reclassification of all of our AA Shares, A Shares and L Shares into a single series of B Shares on a one for one basis, and on March 16, 2023, our B Shares started trading.
According to reports of beneficial ownership of our shares filed with the SEC, as of March 31, 2024, the Slim Family may be deemed to control us through their interests in a Mexican trust that holds AA Shares and LB Shares for their benefit (the “Family Trust”), their interest in Control Empresarial de Capitales, S.A. de C.V. (“Control Empresarial de Capitales”) (formerly known as Inversora Carso, S.A. de C.V.), and their direct ownership of our shares. See “Management—Directors” and “Management—Executive Committee” under Part V and “Related Party Transactions” under this Part IV of this annual report.
The following table identifies owners of more than 5.0% of any series of our shares as of March 31, 2022.2024. Except as described in the table below and the accompanying notes, we are not aware of any holder of more than 5.0% of any series of our shares. Figures below do not include L Shares that would be held by each shareholder upon conversion of AA Shares or A Shares, as provided for under our bylaws. See “Management—Share Ownership of Directors and Senior Management” under Part V of this annual report.
 SHAREHOLDER
 
SHARES OWNED
(MILLIONS)
     
PERCENT OF CLASS
(1)
 
 B SHARES:
     
 Family Trust
(2)
  17,743      28.6%
 Control Empresarial de
 Capitales
(3)
  10,700      17.2%
 Carlos Slim Helú
  5,200      8.4%
 
SHAREHOLDER
   
SHARES
OWNED
(MILLIONS)
   
PERCENT
OF
CLASS
(1)
 
    
AA SHARES:
  
 
 
 
  
 
 
 
  
 
 
 
    
Family Trust
(2)
                                   10,894    53.0% 
    
Control Empresarial de
  
 
 
 
  
 
 
 
  
 
 
 
    
Capitales
(3)
  
 
 
 
   4,381    21.3% 
    
Carlos Slim Helú
  
 
 
 
   1,879    9.1% 
    
L SHARES:
  
 
 
 
  
 
 
 
  
 
 
 
    
Control Empresarial de Capitales
(3)
  
 
 
 
   6,318    14.6% 
    
Family Trust
(2)
  
 
 
 
   6,849    15.9% 
    
Carlos Slim Helú
  
 
 
 
   3,322    7.7% 
    
Blackrock
(4)
  
 
 
 
   2,164    5.0% 
 
(1)
  Percentage figures are based on the number of shares outstanding as of March 31, 2022.
(2)
  The Family Trust is a Mexican trust that holds AA Shares and L Shares for the benefit of members of the Slim Family. In addition to shares held by the Family Trust, members of the Slim Family, including Carlos Slim Helú, directly own an aggregate of 3,558 million AA Shares and 10,227 million L Shares representing 17.3% and 23.7%, respectively, of each series. According to beneficial reports filed with the SEC, none of these members of the Slim Family, other than Carlos Slim Helú, individually directly own more than 5.0% of any class of our shares.
(3)
  Includes shares owned by subsidiaries of Control Empresarial de Capitales, formerly known as Inversora Carso. Based on beneficial ownership reports filed with the SEC, Control Empresarial de Capitales is a Mexican sociedad anónima de capital variable and may be deemed to be controlled by the Slim Family.
(4)
  Based on beneficial ownership reports filed with the SEC.
   
   
   
   
(1)
  Percentage figures are based on the number of shares outstanding as of March 31, 2024.
(2)
  The Family Trust is a Mexican trust that holds B Shares for the benefit of members of the Slim Family. In addition to shares held by the Family Trust, members of the Slim Family, including Carlos Slim Helú, directly own an aggregate of 13,783 million B Shares representing 22.2% of all outstanding B Shares. According to beneficial reports filed with the SEC, none of these members of the Slim Family, other than Carlos Slim Helú, individually directly own more than 5% of our shares.
(3)
  Includes shares owned by subsidiaries of Control Empresarial de Capitales, formerly known as Inversora Carso. Based on beneficial ownership reports filed with the SEC, Control Empresarial de Capitales is a Mexican
sociedad anónima de capital variable
and may be deemed to be controlled by the Slim Family.
(4)
  Based on beneficial ownership reports filed with the SEC.
As of March 31, 2022, 12.2%2024, 8.1% of the outstanding LB Shares were represented by LB Share ADSs, each representing the right to receive 20 LB Shares, and 99.9% of the LB Share ADSs were held by 6,2466,570 registered holders with addresses in the United States. As of such date, 23.8% of the A Shares were held in the form of A Share ADSs, each representing the right to receive 20 A Shares, and 99.84% of the A Share ADSs were held by 3,113 registered holders with addresses in the United States. Each A Share may be exchanged at the option of the holder for one L Share.
We have no information concerning the number of holders with registered addresses in the United States that hold:
AA Shares;
A Shares not represented by ADSs; or
Lhold B Shares not represented by ADSs.
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Our subsidiaries purchase materials or services from a variety of companies that may be deemed for certain purposes to be under common control with us, including Telesites, Sitios Latam, Grupo Carso, Grupo Financiero Inbursa and their respective subsidiaries.
These services include insurance and banking services provided by Grupo Financiero Inbursa and its subsidiaries. In addition, we sell products in Mexico through the Sanborns and Sears Operadora México, S.A. de C.V. store chains. Some of our subsidiaries also purchase network construction services and materials from subsidiaries of Grupo Carso. Our subsidiaries purchase these materials and services on terms no less favorable than they could obtain from unaffiliated parties, and would have access to other sources if our related parties ceased to provide them on competitive terms.
We and Telesites have entered into an agreement providing for site usage fees, annual price escalations and fixed annual charges that permit us to install a
pre-determined
amount of equipment at the TelesiteTelesites towers and provide for incremental
fee payments if capacity use is exceeded. The principal economic terms of the agreement conform to the reference terms published by Telesites and approved by the Federal Telecommunications Institute (
Instituto Federal de Telecomunicaciones
, or “IFT”).
Our subsidiaries have entered into master service agreements and site agreements with Sitios Latam in each of the countries where Sitios Latam operates pursuant to which Sitios Latam will build, install, maintain and provide access to its towers and other support structures, as well as physical space for the location of towers and other
non-electronic
components. Most of the master service agreements are for a mandatory initial term of five (5) to ten (10) years and will renew automatically for an additional term of the same number of years unless the carrier notifies Sitios Latam of its intent not to renew.
We enter into a number of transactions with related parties in the ordinary course of our business. We believe that these transactions are on terms comparable to those that could be obtained in arm’s length negotiations with unaffiliated third parties. Note 6 and Note 15 to our audited consolidated financial statements included in this annual report set forth information on related party transactions for the three year period set forth therein. We do not regard any of these transactions as material to us.
In accordance with Mexican law, an independent audit committee must provide an opinion to the Boardboard of Directorsdirectors regarding any transaction with a related party that requires approval by the Boardboard of Directors.directors. Pursuant to Mexican law, related party transactions that are
non-material,
are within the ordinary course of business, or are on an
arm’s-length
basis, do not require specific board approval, if consistent with the guidelines approved by the Board of Directors.
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We regularly pay cash dividends on our shares. The table below sets forth the nominal amount of dividends paid per share on each date indicated, in Mexican pesos and translated into U.S. dollars at the exchange rate reported by Banco de México, as published in the Official Gazette, for each of the respective payment dates.
PAYMENT DATE
  
PESOS PER SHARE
     
DOLLARS PER SHARE
 
 November 13, 2023
  Ps. 0.23U.S.$ 0.0131
 July 17, 2023
Ps. 0.23U.S.$ 0.0136
 August 29, 2022
Ps. 0.44U.S.$ 0.0221 
 November 8, 2021
   Ps.0.20Ps. 0.20     U.S.$ 0.0097 
0.0097 
 July 19, 2021
   Ps.0.20Ps. 0.20     U.S.$ 0.0100 
0.0100 
 November 9, 2020
   Ps.0.19Ps. 0.19     U.S.$ 0.0092 
0.0092 
 July 20, 2020
   Ps.0.19Ps. 0.19     U.S.$ 0.0085 
0.0085 
 November 11, 2019
   Ps.0.17Ps. 0.17     U.S.$ 0.0090 
0.0090 
 July 15, 2019
   Ps.0.18Ps. 0.18     U.S.$ 0.0095 
  November 12, 2018
Ps.0.16U.S.$ 0.0080
  July 16, 2018
Ps.0.16U.S.$ 0.0085
  November 13, 2017
Ps.0.15U.S.$ 0.0079
  July 17, 2017
Ps.0.15U.S.$ 0.0085
On April 20, 202229, 2024 our shareholders approved a cash dividend of Ps.0.44Ps.0.48 per share, payable in one installmenttwo installments of Ps.0.24 each on August 29, 2022.July 15, 2024 and November 11, 2024.
The declaration, amount and payment of dividends by América Móvil is determined by majority vote of the holders of AAB Shares and A Shares,(
i.e.,
all of our shareholders), generally on the recommendation of the Board of Directors, and depends on ourthe results of operations, financial condition, cash requirements, future prospects and other factors considered relevant by majority vote of the holders of AA Shares and AB Shares.
Our bylaws provide that holders of AAB Shares A Shares and L Shares(
i.e.,
all of our shareholders) participate equally on a
per-share
basis in dividend payments and other distributions, subject to certain
non-material
preferential dividend rights of holders of L Shares.
50
distributions.

 

Our shares and ADSs are listed on the following markets:
 SECURITY
  
STOCK EXCHANGE
  
TICKER SYMBOL
LB Shares
  Mexican Stock Exchange—Mexico City  AMXLAMX
LB Share ADSs
  New York Stock Exchange—New York  AMX

 A Shares
Mexican Stock Exchange—Mexico CityAMXA
  A Share ADSs
New York Stock Exchange—New YorkAMOV
We are a
Sociedad Anónima Bursátil de Capital Variable
organized under Mexican law. For a description of our AA Shares, A Shares and L Shares,shares, and a brief summary of certain significant provisions in our current bylaws and Mexican law, see “Description of Securities Registered Under Section 12 of the Exchange Act,” filed as Exhibit 2.1 with this annual report. For a description of our Board of Directors, Executive and Audit and Corporate Practices Committees and External Auditor, see “Management” under Part V of this annual report.
 
5155

LOGO
In our 2022 annual ordinary shareholders’ meeting, our shareholders authorized an increase to the buyback program by an amount equal to Ps.26 billion, which after the increase amounted to Ps.36,539 billion to repurchase shares from April 2022 to April 2023.
In our 2023 annual shareholders’ meeting, our shareholders authorized the allocation of an amount equal to Ps.20 billion for the buyback program for the April 2023 to April 2024 period. In our 2024 annual shareholders’ meeting, our shareholders authorized the allocation of an amount equal to Ps.15 billion for the buyback program for the April 2024 to April 2025 period, adding to such amount the buyback program balance, if any, as of the date of the shareholders’ meeting. We expect to continue to periodically repurchase at our discretion our L Shares and A Sharesshares on the open market pursuant to guidelines approved by our Board of Directors, using funds up to an amount authorized by our shareholders specifically for the repurchase of L Shares and A Shares. Our shareholders authorized the allocation of up to Ps.6 billion in February 2021, Ps.25 billion in April 2021 and Ps.26 billion in November 2021, in each case to repurchase L Shares and A Shares. In our 2022 annual ordinary shareholders’ meeting, our shareholders authorized increase to the buyback program fund by an amount equal to Ps.26 billion, which after the increase amounts to Ps.36.539 billion to repurchase L Shares and A Shares from April 2022 to April 2023.shareholders.
The following table sets out information concerning purchases of our L Sharesshares by us and our affiliated purchasers in 2021. We did not repurchase our L Shares other than through the share repurchase program, and we did not repurchase any A Shares.2023.
 PERIOD
  
TOTAL NUMBER OF SHARES
PURCHASED
(1)
  
AVERAGE PRICE
PER SHARE
  
TOTAL NUMBER OF SHARES PUR-
CHASED AS PART OF PUBLICLY AN-
NOUNCED PLANS OR PROGRAMS
  
APPROXIMATE MEXICAN PESO VALUE OF
SHARES THAT MAY YET BE PURCHASED
UNDER THE PLANS OR PROGRAMS
(2)
 
 January 2023
   41,000,000    Ps.  19.29    41,000,000    Ps.  19,624,826,102.31  
 February 2023
   38,000,000   18.93   38,000,000   18,909,717,139.46 
 March 2023
   22,500,000   19.38   22,500,000   18,476,148,690.44 
 April 2023
   13,725,000   19.32   13,725,000   19,798,706,951.27 
 May 2023
   19,775,000   19.40   19,775,000   19,417,290,615.94 
 June 2023
   24,750,000   19.12   24,750,000   18,946,772,568.15 
 July 2023
   42,750,000   18.02   42,750,000   18,180,887,206.71 
 August 2023
   135,040,000   16.31   135,040,000   15,990,885,465.78 
 September 2023
   108,460,000   15.53   108,460,000   14,316,726,519.56 
 October 2023
   139,000,000   15.16   139,000,000   12,221,125,972.78 
 November 2023
   110,000,000   15.34   110,000,000   10,543,142,289.67 
 December 2023
   180,000,000   16.03   180,000,000   7,674,539,433.33 
 Total Shares
(3)
  
 
875,000,000
 
  
 
875,000,000
 
 
(1)
  This includes purchases by us and our affiliated purchasers in 2023.
(2)
  This is the approximate Mexican peso amount available at the end of the period for purchases of our shares pursuant to our share repurchase program.
(3)
  Prior to March 16, 2023, we periodically repurchased at our discretion our L Shares and A Shares on the open market.
 
PERIOD
  
TOTAL NUMBER OF
SHARES PURCHASED
(1)
     
AVERAGE PRICE
PER SHARE
     
TOTAL NUMBER OF SHARES
PURCHASED AS PART OF
PUBLICLY ANNOUNCED PLANS
OR PROGRAMS
     
APPROXIMATE MEXICAN PESO
VALUE OF SHARES THAT MAY YET
BE PURCHASED UNDER THE PLANS
OR PROGRAMS
(2)
 
     
January 2021
   58,300,000     Ps.    14.70      58,300,000     Ps.137,547,600.71 
     
February 2021
   83,000,000      13.76      83,000,000      5,002,342,621.26 
     
March 2021
   180,000,000      14.11      180,000,000      2,476,906,037.20 
     
April 2021
   169,345,689      14.42      169,345,689      24,433,023,601.16 
     
May 2021
   132,896,900      14.86      132,896,900      22,469,536,093.00 
     
June 2021
   141,528,312      15.63      141,528,312      20,270,462,806.00 
     
July 2021
   184,489,748      15.81      184,489,748      17,370,881,547.05 
     
August 2021
 �� 214,000,000      17.87      214,000,000      13,568,848,403.30 
     
September 2021
   249,000,000      18.64      249,000,000      8,954,740,926.13 
     
October 2021
   273,600,000      18.14      273,600,000      4,020,009,413.98 
     
November 2021
   285,400,000      18.70      285,400,000      24,714,680,611.87 
     
December 2021
   201,259,367      20.50      201,259,367      20,612,674,146.83 
     
Total L Shares
  
 
2,172,820,016
 
    
 
 
 
    
 
2,172,820,016
 
    
 
 
 
 
(1)
  This includes purchases by us and our affiliated purchasers in 2021.
(2)
  This is the approximate peso amount available at the end of the period for purchases of both L Shares and A Shares pursuant to our share repurchase program.
   
   
5256

LOGO
The following summary contains a description of certain Mexican federal and U.S. federal income tax consequences of the acquisition, ownership and disposition of LB Shares A Shares, L Share ADSs or AB Share ADSs but it does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a decision to purchase, hold or sell sharesB Shares or B Share ADSs.
This discussion does not constitute, and should not be considered as, legal or tax advice to holders. The discussion is for general information purposes only and is based upon the federal tax laws of Mexico, (includingincluding the Mexican Income Tax Law (
Ley del Impuesto sobre la Renta
), and the United States in effect on the date of this annual report, including the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion and the protocols thereto between the United States and Mexico currently in force (together, the "Tax Treaty"“Tax Treaty”) and the agreement between the United States and Mexico concerning the exchange of information with respect to tax matters. The Tax Treaty is subject to change, and such changes may have retroactive effects. Holders of sharesB Shares or B Share ADSs should consult their own tax advisors as to the Mexican, U.S. or other tax consequences of the purchase, ownership and disposition of sharesB Shares or B Share ADSs, including, in particular, the effect of any foreign, state or local tax laws.
MEXICAN TAX CONSIDERATIONS
The following is a general summary of the principal consequences under the Mexican Income Tax Law and the rules and regulations thereunder, as currently in effect, of an investment in sharesSeries B Shares or B Share ADSs by a holder that is not a resident of Mexico and that will not hold sharesSeries B Shares or B Share ADSs or a beneficial interest therein in connection with the conduct of a trade or business through a permanent establishment in Mexico (a "nonresident holder"“nonresident holder”).
For purposes of Mexican taxation, the definition of residence is highly technical and residence arises in several situations. Generally, an individual is a resident of Mexico if he or she has established his or her home or center of vital interests in Mexico, and a corporation is considered a resident if it has its place of effective management in Mexico. However, any determination of residence should take into account the particular situation of each person or legal entity.
If a legal entity or an individual is deemed to have a permanent establishment in Mexico for Mexican tax purposes, all income attributable to that permanent
establishment will be subject to Mexican income taxes, in accordance with applicable tax laws.
This summary does not purport to be a comprehensive description of all the Mexican tax considerations that may be relevant to a decision to purchase, own or dispose of the shares. In particular, this summary (i) does not describe any tax consequences arising under the laws of any state, locality, municipality or taxing jurisdiction other than certain federal laws of Mexico and (ii) does not address all of the Mexican tax consequences that may be applicable to specific holders of the shares, including a holder:
whose shares were not acquired through the Mexican Stock Exchange or other markets authorized by the Ministry of Finance and Public Credit (
Secretarí(Secretaría de Hacienda y Crédito Público
)blico) or the Mexican Federal Tax Code;
of sharesSeries B Shares or B Share ADSs that control us;
that holds 10.0% or more of our shares;
that is part of a group of persons for purposes of Mexican law that controls us (or holds 10.0% or more of our shares); or
that is a resident of Mexico or is a corporation resident in a tax haven (as defined by the Mexican Income Tax Law).
Tax Treaties
Provisions of the Tax Treaty that may affect the taxation of certain U.S. holders (as defined below) are summarized below.
The Mexican Income Tax Law has established procedural requirements for a nonresident holder to be entitled to benefits under any of the tax treaties to which Mexico is a party, including on dispositions and dividends. These procedural requirements include, among others, the obligation to (i) prove tax treaty residence, (ii) file tax calculations made by an authorized certified public accountant or an informational tax statement, as the case may be, and (iii) appoint representatives in Mexico for taxation purposes. Parties related to the issuer may be subject to additional procedural requirements.
Payment of Dividends
Dividends, either in cash or in kind, paid with respect to LSeries B Shares A Shares, L Share ADSs or AB Share ADSs will generally be subject to a 10.0% Mexican withholding tax (provided that no Mexican withholding tax will apply to distributions of net taxable profits generated before 2014). Nonresident holders could be subject to a lower tax rate, to the extent that they are eligible for benefits under an income tax treaty to which Mexico is a party.
53

Taxation of Dispositions
The tax rate on income realized by a nonresident holder from a disposition of shares through the Mexican Stock
57

LOGO
Exchange is generally 10.0%, which is applied to the net gain realized on the disposition. This tax is payable through withholding made by intermediaries. However, such withholding does not apply to a nonresident holder who certifies that the holder is resident in a country with which Mexico has entered into an income tax treaty.
The sale or other transfer or disposition of shares not carried out through the Mexican Stock Exchange and not held in the form of B Share ADSs will be subject to a 25% tax rate in Mexico, which is applicable to the gross proceeds realized from the sale.
Alternatively, a nonresident holder may, subject to certain requirements, elect to pay taxes on the net gain realized from the sale of shares at a rate of 35%.
The sale or disposition of B Share ADSs through securities exchanges or markets recognized under the Mexican federal tax code (which includes the NYSE) by nonresidents who are residents of a country with which Mexico has entered into an income tax treaty is not subject to income tax in Mexico under the current tax rules. The tax treatment of such transfer of B Share ADSs by nonresidents who are also not residents of a country with which Mexico has entered into an income tax treaty is not clear under the current Mexican tax rules.
Pursuant to the Tax Treaty, gains realized by a U.S. resident that is eligible to receive benefits pursuant to the Tax Treaty from the sale or other disposition of sharesSeries B Shares or B Share ADSs, even if the sale or disposition is not carried out under the circumstances described in the preceding paragraphs, will not be subject to Mexican income tax, provided that the gains are not attributable to a permanent establishment or a fixed base in Mexico, and further provided that such U.S. holder owned less than 25% of the shares representing our capital stock (including B Share ADSs), directly or indirectly, during the
12-month
period preceding such disposition. U.S. residents should consult their own tax advisors as to their possible eligibility under the Tax Treaty.
Gains and gross proceeds realized by other nonresident holders that are eligible to receive benefits pursuant to other income tax treaties to which Mexico is a party may be exempt from Mexican income tax, in whole or in part.
Non-U.S.
holders should consult their own tax advisors as to their possible eligibility under such treaties.
Other Mexican Taxes
A nonresident holder generally will not be liable for estate, inheritance or similar taxes with respect to its holdings of sharesSeries B Shares or B Share ADSs; provided, however, that gratuitous transfers of sharesSeries B Shares or B Share ADSs may, in certain circumstances, result in the imposition of a Mexican tax upon the recipient.
There are no Mexican stamp, issue registration or similar taxes payable by a nonresident holder with respect to sharesSeries B Shares or B Share ADSs.
U.S. FEDERAL INCOME TAX CONSIDERATIONS
The following is a summary of certain U.S. federal income tax consequences to U.S. holders (as defined below) of the acquisition, ownership and disposition of shares or ADSs. The summary does not purport to be a comprehensive description of all of the tax consequences of the acquisition, ownership or disposition of shares or ADSs. The summary applies only to U.S. holders that will hold their shares or ADSs as capital assets and does not apply to special classes of U.S. holders, such as regulated investment companies, real estate investment trusts, brokers or dealers in securities or currencies, U.S. holders (defined below) with a functional currency other than the U.S. dollar, holders of 10.0% or more of our shares measured by vote or value (whether held directly or through ADSs or both),
tax-exempt
organizations, banks, insurance companies or other financial institutions, holders liable for theany alternative minimum tax, securities traders electing to account for their investment in their shares or ADSs on a
mark-to-market
basis, entities that are treated for U.S. federal income tax purposes as partnerships or other pass-through entities or equity holders therein and persons holding their shares or ADSs in a hedging transaction or as part of a straddle“straddle” or conversion transaction.transaction or as part of a “synthetic security” or other integrated financial transaction, certain U.S. expatriates and taxpayers using a taxable year other than the calendar year or U.S. holders that are engaged in a trade or business or have a permanent establishment in Mexico.
For purposes of this discussion, a "U.S. holder"“U.S. holder” is a holder of shares or ADSs that is:
a citizen or resident of the United States of America,
a corporation (or other entity taxable as a corporation) organized under the laws of the United States of America or any state thereof or
otherwise subject to U.S. federal income taxation on a net income basis with respect to the shares or ADSs.
Each U.S. holder should consult such holder’s own tax advisor concerning the overall tax consequences to it of the ownership or disposition of shares or ADSs that may arise under foreign, state and local laws.
54

Treatment of ADSs
In general, a U.S. holder of ADSs will be treated as the owner of the shares represented by those ADSs for U.S. federal income tax purposes. Deposits or withdrawals of shares by U.S. holders in exchange for ADSs will not result in the realization of gain or loss for U.S. federal income tax
58


purposes. U.S. holders that withdraw any shares should consult their own tax advisors regarding the treatment of any foreign currency gain or loss on any Mexican pesos received in respect of such shares.
Taxation of DistributionsU.S. Tax consequences for U.S. holders
TAXATION OF DISTRIBUTIONS.
In general, a U.S. holder will treat the gross amount of distributions we pay, without reduction for Mexican withholding tax, as dividend income for U.S. federal income tax purposes to the extent of our current and accumulated earnings and profits. Because we do not expect to maintain calculations of our earnings and profits under U.S. federal income tax principles, it is expected that distributions paid to U.S. holders generally will be reported as dividends. In general, the gross amount of any dividends will be includible in the gross income of a U.S. holder as ordinary income on the day on which the dividends are received by the U.S. holder, in the case of shares, or by the depositary, in the case of ADSs.
Dividends will be paid in Mexican pesos and will be includible in the income of a U.S. holder in a U.S. dollar amount calculated by reference to the exchange rate in effect on the date that they are received by the U.S. holder, in the case of shares, or by the depositary, in the case of ADSs (regardless of whether such Mexican pesos are in fact converted into U.S. dollars on such date). If such dividends are converted into U.S. dollars on the date of such receipt, a U.S. holder generally should not be required to recognize foreign currency gain or loss in respect of the dividends. U.S. holders should consult their own tax advisors regarding the treatment of foreign currency gain or loss, if any, on any Mexican pesos received by a U.S. holder or depositary that are converted into U.S. dollars on a date subsequent to receipt. Dividends paid by us will not be eligible for the dividends-received deduction allowed to corporations under the U.S. Internal Revenue Code of 1986, as amended (the "Code"“Code”).
The amount of Mexican tax withheld generally will give rise to a foreign tax credit or deduction for U.S. federal income tax purposes. Dividends generally will constitute "passive category income" for purposes of the foreign tax credit. The foreign tax credit rules are complex. U.S. holders should consult their own tax advisors with respect to the implications of those rules for their investments in our shares or ADSs.
Subject to certain exceptions for short-term and hedged positions, the U.S. dollar amount of dividends received by an individual with respect to the shares orand ADSs will be subject
to taxation at reduced rates if the dividends are "qualified“qualified dividends." Dividends paid on the shares orand ADSs will be treated as qualified dividends if (i) (A) the shares orand ADSs are readily tradable on an established securities market in the United States or (B) we are eligible for the benefits of a comprehensive tax treaty with the United States which the U.S. Treasury determines is satisfactory for purposes of this provision and which includes an exchange of information program, and (ii) we were not, in the year prior to the year in which the dividend was paid, and are not, in the year in which the
dividend is paid, a passive foreign investment company ("PFIC"(“PFIC”). The B Share ADSs are listed on the NYSE, and will qualify as readily tradable on an established securities market in the United States so long as they are so listed. In addition, the U.S. Treasury has determined that the Tax Treaty meets the requirements for reduced rates of taxation, and we believe we are eligible for the benefits of the Tax Treaty. Based on our audited consolidated financial statements and relevant market data, we believe that we were not treated as a PFIC for U.S. federal income tax purposes with respect to the 20202022 and 20212023 taxable years. In addition, based on our audited consolidated financial statements and our current expectations regarding the value and nature of our assets, the sources and nature of our income and relevant market data, we do not anticipate becoming a PFIC for the 20222024 taxable year. Holders of shares or ADSs should consult their own tax advisors regarding the availability of the reduced dividend tax rate in the light of their own particular circumstances.
Subject to generally applicable limitations and conditions (including a minimum holding period requirement), Mexican dividend withholding tax paid at the appropriate rate applicable to the U.S. holder may be eligible for a credit against such U.S. holder’s U.S. federal income tax liability. These generally applicable limitations and conditions include new requirements recently adopted by the U.S. Internal Revenue Service (“IRS”) in regulations promulgated in December 2021 and any Mexican tax will need to satisfy these requirements in order to be eligible to be a creditable tax for a U.S. holder. In the case of a U.S. holder that either (i) is eligible for, and properly elects, the benefits of the Tax Treaty, or (ii) consistently elects to apply a modified version of these rules under recently issued temporary guidance and complies with specific requirements set forth in such guidance, the Mexican tax on dividends will be treated as meeting the new requirements and therefore as a creditable tax. In the case of all other U.S. holders, the application of these requirements to the Mexican tax on dividends is uncertain and we have not determined whether these requirements have been met. If the Mexican dividend tax is not a creditable tax for a U.S. holder or the U.S. holder does not elect to claim a foreign tax credit for any foreign income taxes paid or accrued in the same taxable year, the U.S. holder may be able to deduct the Mexican tax in computing such U.S. holder’s taxable income for U.S. federal income tax purposes. Dividend distributions will constitute income from sources without the United States and, for U.S. holders that elect to claim foreign tax credits, generally will constitute “passive category income” for foreign tax credit purposes.
59


The availability and calculation of foreign tax credits and deductions for foreign taxes depend on a U.S. holder’s particular circumstances and involve the application of complex rules to those circumstances. The temporary guidance discussed above also indicates that the Treasury and the IRS are considering proposing amendments to the December 2021 regulations and that the temporary guidance can be relied upon until additional guidance is issued that withdraws or modifies the temporary guidance. U.S. holders should consult their own tax advisors regarding the application of these rules to their particular situations. Distributions of additional shares or ADSs to U.S. holders with respect to their shares or ADSs that are made as part of a pro rata distribution to all of our shareholders generally will not be subject to U.S. federal income tax.
Taxation of Dispositions
TAXATION OF DISPOSITIONS.
A U.S. holder generally will recognize capital gain or loss on the sale or other taxable disposition of the shares or ADSs in an amount equal to the difference between the U.S. holder’s basis in such shares or ADSs (in U.S. dollars) and the amount realized on the disposition (in U.S. dollars, determined at the spot rate on the date of disposition if the amount realized is denominated in a foreign currency). Gain or loss recognized by a U.S. holder on such sale or other taxable disposition generally will be long-term capital gain or loss if, at the time of disposition, the shares or ADSs have been held for more than one year. Long-term capital gain recognized by a U.S. holder that is an individual is taxable at reduced rates. The deductibility of a capital loss is subject to limitations.
Gain, ifA U.S. holder generally will not be entitled to credit any realizedMexican tax imposed on the sale or other taxable disposition of the shares or ADSs against such U.S. holder’s U.S. federal income tax liability, except in the case of a U.S. holder that consistently elects to apply a modified version of the U.S. foreign tax credit rules that is permitted under recently issued temporary guidance and complies with the specific requirements set forth in such guidance. Additionally, capital gain or loss recognized by a U.S. holder on the sale or other taxable disposition of the shares or ADSs generally will be treated as U.S. source incomegain or loss for U.S. foreign tax credit purposes. Consequently, even if a Mexicanthe withholding tax is imposed on the sale or disposition of the shares,qualifies as a creditable tax for U.S. foreign tax credit purposes, a U.S. holder that does not
55

receive significant foreign source income from other sources may not be able to derive effectivecredit the tax against its U.S. federal income tax liability unless such credit can be applied (subject to generally applicable conditions and limitations) against tax due on other income treated as derived from foreign tax credit benefits in respect of such Mexican taxes. In addition, as a result of recent changes tosources. If the foreign tax credit rules, for taxable years beginning after December 28, 2021, any Mexican tax imposedis not a creditable tax, the tax would reduce the amount realized on the sale or other taxable disposition of the shares or ADSs is unlikely to be treated as creditable, unlesseven if the U.S. Holderholder has elected to claim a foreign tax credit for other taxes in the same year. The temporary guidance discussed
above also indicates that the Treasury and the IRS are considering proposing amendments to the December 2021 regulations and that the temporary guidance can be relied upon until additional guidance is eligible for and electsissued that withdraws or modifies the benefits of the Tax Treaty.temporary guidance. U.S. holders should consult their own tax advisors regarding the application of the foreign tax credit rules to their investment in, anda sale or other taxable disposition of, the shares or ADSs.ADSs and any Mexican tax imposed on such sale or disposition.
Information Reporting and Backup Withholding
INFORMATION REPORTING AND BACKUP WITHHOLDING.
Dividends on, and proceeds from the sale or other disposition of, the shares or ADSs paid to a U.S. holder generally may be subject to the information reporting requirements of the Code and may be subject to backup withholding unless the holder:
establishes that it is an exempt recipient, if required, or
provides an accurate taxpayer identification number on a properly completed Internal Revenue ServiceIRS Form
W-9
and certifies that no loss of exemption from backup withholding has occurred.
The amount of any backup withholding from a payment to a holder will be allowed as a credit against the U.S. holder’s U.S. federal income tax liability and may entitle such holder to a refund, provided that certain required information is timely furnished to the Internal Revenue Service.IRS.
U.S. Tax Consequences for
Non-U.S.
holdersHolders
DISTRIBUTIONS.
A holder of shares or ADSs that is, with respect to the United States, a foreign corporation or a nonresident alien individual (a
“non-U.S.
holder”) will generally not be subject to U.S. federal income or withholding tax on dividends received on shares or ADSs, unless such income is effectively connected with the conduct by the holder of a U.S. trade or business.
DISPOSITIONS.
A
non-U.S.
holder of shares or ADSs will not be subject to U.S. federal income or withholding tax on gain realized on the sale of shares or ADSs, unless:
gain is effectively connected with the conduct by the holder of a U.S. trade or business or
in the case of gain realized by an individual holder, the holder is present in the United States for 183 days or more in the taxable year of the sale and certain other conditions are met.
INFORMATION REPORTING AND BACKUP WITHHOLDING.
Although
non-U.S.
holders generally are exempt from backup withholding, a
non-U.S.
holder may be required to comply with certification and identification procedures in order to establish its exemption from information reporting and backup withholding.
60

56

 
57

58

 
DIRECTORS
Our Board of Directors has broad authority to manage our company. Our bylaws provide for the Board of Directors to consist of between 5 and 21 directors and allow for the election of an equal number of alternate directors. Directors need not be shareholders. A majority of our directors and a majority of the alternate directors must be Mexican citizenscitizens.
B Shares represent our only class of shares, and elected by Mexican shareholders.
Aa majority of the holders of the AAB Shares and A Shares voting together elect a majority of theour directors, and alternate directors, provided that any holder or group of holders of at least 10.0% of the total AA Shares and AB Shares is entitled to name one director and one alternate director. Two directors and two alternate directors, if any, are elected by a majority vote of the holders of L Shares. Each alternate director may attend meetings of the Board of Directors and vote in the absence of the corresponding director. Directors and alternate directors are elected or reelected at each annual general meeting of shareholders and each annual ordinary special meeting of holders of L Shares.
In accordance with the Mexican Securities Market Law (
Ley(Ley del Mercado de Valores
)Valores), the determination as to the independence of our directors is made by our shareholders, though the CNBV may challenge this determination. Pursuant to our bylaws and the Mexican Securities Market Law, at least 25.0% of our directors must be independent. In order to have a quorum for a meeting of the Board of Directors, a majority of those present must be Mexican nationals.
At a shareholders’ meeting held on November 22, 2021, Claudia Jañez Sanchez and Gisselle Morán Jiménez were designated as independent members of our Board of Directors. At the annual ordinary shareholders’ meeting held on April 20, 2022, except for Mr. Elías Ayub,29, 2024, the current members of the Board of Directors and the Executive Committee and the Audit and Corporate Practices Committee were reelected, and the Corporate Secretary and the Corporate Pro Secretary were reappointed, and Claudia Jañez Sánchez was designated as a member of the Audit and Corporate Practices Committee together with 12the former members of the Audit and Corporate Practices Committee who were reelected. All directors were elected at the annual shareholders’ meeting by the AA Shares and A Shares voting together and 2 directors elected by the L Shares.holders of our shares. 9 (approximately 64%) of the members of the Board of Directors are independent, and 3 (approximately 21%) are women.
Our bylaws provide that the members of the Board of Directors are elected for a term of one year. Pursuant to Mexican law, members of the Board continue in their positions after the expiration of their terms for up to an additional
30-day
period if new members are not elected. Furthermore, in certain circumstances provided under the Mexican Securities Market Law, the Board of Directors may elect temporary directors who then may be elected or replaced at the shareholders’ meetings.
The names and positions of the members of the Board reelected or elected for the first time at the 20222024 annual general shareholders’ meeting, meeting—their term expiring in 2025—their year of birth, and information
concerning their
committee
membership and principal business activities outside América Móvil are set forth below:
Directors elected by holders of Series AA and Series A Shares:
 
CARLOS SLIM DOMIT
Chairman of the Board and the Executive Committee
Born:
 
1967
First elected:
 
2011
Term expires:
2023
Principal occupation:
 
Chairman of the Board of América Móvil
Other directorships:
 
Chairman of the Board of Grupo Carso and its affiliates
Business experience:
 Business administration;
Chief Executive Officer of Sanborn Hermanos
 
PATRICK SLIM DOMIT
Vice Chairman Cochairman of the Board and Member of the Executive Committee
Born:
 
1969
First elected:
 
2004
Term expires:
2023
Principal occupation:
 Vice Chairman
Cochairman of ourthe Board of DirectorsAmérica Móvil
Other directorships:
 
Director of Grupo Carso and its affiliates
Business experience:
 Business administration;
Chief Executive Officer of Grupo Carso and Vice PresidentChairman of Commercial Markets of Telmex
 
DANIEL HAJJ ABOUMRAD
Director and Member of the Executive Committee
Born:
 
1966
First elected:
 
2000
Term expires:
2023
Principal occupation:
 
Chief Executive Officer of América Móvil
Other directorships:
 
Director of Grupo Carso and Telmex
Business experience:
 Business administration;
Chief Executive Officer of Compañía Hulera Euzkadi
 
LUIS ALEJANDRO SOBERÓN KURI
Director
Born:
 
1960
First elected:
 
2000
Term expires:
2023
Principal occupation:
 
Chief Executive Officer and Chairman of the Board of Serinem México (a subsidiary of Corporación Interamericana de Entretenimiento)Entretenimiento (“CIE”)
Other directorships:
 
Director of CIE; Director of Grupo Financiero CitibanamexBanco Nacional de México
Business experience:
 Business administration;
Various positions at CIE and its affiliates
 
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FRANCISCO JOSÉ MEDINA CHÁVEZ
Director
Born:
 
1956
First elected:
 
2018
Term expires:
2023
Principal occupation:
 Chief Executive Officer and
Chairman of Grupo Fame and Chairman of Grupo Altozano
Other directorships:
 
Director of Banco Nacional de México and Grupo Chedraui
Business experience:
 Real estate; Director of
Various positions at Aeroméxico and Mitsui Mexico
 
ERNESTO VEGA VELASCO
Director and Chairman of the Audit and Corporate Practices Committee
Born:
 
1937
First elected:
 
2007
Term expires:
2023
Principal occupation:
 Retired. Member
Independent member of the Board of Directors and audit and corporate practices, planning and finance and evaluation and compensation committees of certain companies.
Other directorships:
 
Director of Kuo and its affiliates, Inmuebles Carso and its affiliates,Impulsora de Desarrollo y el Empleo en América Latina and Industrias Peñoles
Business experience:
 Accounting and business administration;
Various positions in Desc Group, including Corporate Vice-Vice President
 
RAFAEL MOISÉS KALACH MIZRAHI
Director and Member of the Audit and Corporate Practices Committee
Born:
 
1946
First elected:
 
2012
Term expires:
2023
Principal occupation:
 
Chairman and Chief Executive Officer of Grupo Kaltex
Other directorships:
 
Director of Grupo Carso and its affiliates
Business experience:
 Accounting and business administration; various
Various positions in Grupo Kaltex
 
ANTONIO COSÍO PANDO
Director
Born:
 
1968
First elected:
 
2015
Term expires:
2023
Principal occupation:
 
Vice President of Grupo Hotelero las Brisas, Compañía Industrial Tepeji del Río, and Bodegas de Santo Tomás
Other directorships:
 
Director of Grupo Carso and its affiliates, Corporación Actinver, and Grupo AeromexicoAeroméxico
Business experience:
 Engineer; various
Various positions in Grupo Brisas and Compañía Industrial Tepeji del Río
OSCAR ÓSCAR VON HAUSKE SOLÍS
Director
Born:
 
1957
First elected:
 
2011
Term expires:
2023
Principal occupation:
 
Chief Fixed-line Operations Officer of América Móvil
Other directorships:
 
Member of Telekom Austria’sthe Supervisory Board of Telekom Austria and EuroTeleSites
Business experience:
 Accounting and business administration;
Chief Executive Officer of Telmex Internacional, ChiefDirector of Systems and Telecommunications Operators Officer of Telmex and Board member of KPN’sKPN
 
VANESSA HAJJ SLIM
Director
Born:
 
1997
First elected:
 
2018
Term expires: Principal occupation:
 2023
Director of América Móvil and Head of Business Development at Inmuebles Carso
 Other directorships:
Director of Grupo Carso
 
DAVID IBARRA MUÑOZ
Director
Born:
 
1930
First elected:
 
2000
Term expires:
2023
Principal occupation:
 
Retired
Other directorships:
 
Director of Grupo Carso and its affiliates, and Grupo Mexicano de Desarrollo
Business experience:
 Economist;
Chief Executive Officer of Nacional Financiera and Secretary of Finance and Public Credit of Mexico
 
GISSELLE MORÁN JIMÉNEZ
Director
Born:
 
1974
First elected:
 
2021
Term expires:
2023
Principal occupation:
 
Chief Executive Officer of Real Estate, Market and Lifestyle
Life-style
Other directorships:
 
Director ofin Alignmex Real Estate Capital
Business experience:
 
Corporate Commercial ManagerDirector of Grupo Mundo Ejecutivo
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Directors elected by holders of Series L Shares:
 
PABLO ROBERTO GONZÁLEZ GUAJARDO
Director and Member of the Audit and Corporate Practices Committee
Born:
 
1967
First elected:
 
2007
Term expires:
2023
Principal occupation:
 
Chief Executive Officer of Kimberly Clark de México
Other directorships:
 
Director of Kimberly Clark de México, Grupo Sanborns and Grupo Lala
Business experience:
 
Various positions in the Kimberly Clark Corporation and Kimberly Clark de México
 
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CLAUDIA JAÑEZ SÁNCHEZ
Director
Born:
 
1971
First elected:
 
2021
Term expires:
2023
Principal occupation:
 Independent Director
Chairwoman of Consejo Mexicano de la Industria de Productos de Consumo, A.C.
Other directorships:
 
Director of Bolsa Mexicana de Valores, and Board Member ofThe Mexico Fund Inc., Grupo Industrial Saltillo, HSBC Mexico and Impulsora de DesarolloImpul-sora del Desarrollo y deel Empleo en América Latina
Business experience:
 Chairman
Chairwoman of DuPont Latin America and ChairmanChairwoman of the Executive Council of Global Companies
Our 20222024 annual ordinary general shareholders’ meeting determined that the following directors are independent: Claudia Jañez Sanchez,Sánchez, Gisselle Morán Jiménez, Ernesto Vega Velasco, Pablo Roberto González Guajardo, David Ibarra Muñoz, Antonio Cosío Pando, Rafael Moisés Kalach Mizrahi, Luis Alejandro Soberón Kuri and Francisco José Medina Chávez.
Alejandro Cantú Jiménez, our General Counsel, serves as Corporate Secretary and Rafael Robles Miaja as Corporate
Pro-Secretary.
Patrick Slim Domit and Carlos Slim Domit are brothers. Daniel Hajj Aboumrad is
brother-in-law
of Patrick Slim Domit and Carlos Slim Domit. Vanessa Hajj Slim is the daughter of Daniel Hajj Aboumrad.
EXECUTIVE COMMITTEE
Our bylaws provide that the Executive Committee may generally exercise the powers of the Board of Directors, with certain exceptions. In addition, theThe Board of Directors is required to consult the Executive Committee before deciding on certain matters set forth in the bylaws, and the Executive Committee must provide its views following a request from
the Board of Directors, the Chief Executive Officer or the Chairman of the Board of Directors. If the Executive Committee is unable to make a recommendation within ten calendar days, or if a majority of the Board of Directors or any other corporate body duly acting within its mandate determines in good faith that action cannot be deferred until the Executive Committee makes a recommendation, the Board of Directors is authorized to act without such recommendation. The Executive Committee may also act on matters delegated to it by the Board of Directors. The Executive Committee may not delegate all of its powers to special delegates or
attorneys-in-fact.
The Executive Committee is elected from among the directors and alternate directors by a majority vote of the holders of common shares (AA Shares and A Shares).shares. The majority of its members must be Mexican citizens and elected by Mexican shareholders.citizens. The current members of the
Executive Committee are Carlos Slim Domit, Patrick Slim Domit and Daniel Hajj Aboumrad. See “Major Shareholders” under Part IV of this annual report.
AUDIT AND CORPORATE PRACTICES COMMITTEE
Our Audit and Corporate Practices Committee is comprised of independent members of the Board of Directors, as determined by our shareholders pursuant to the Mexican Securities Market Law and as defined under Rule
10A-3
under the Exchange. The Audit and Corporate Practices Committee consists of Ernesto Vega Velasco (Chairman), Pablo Roberto González Guajardo, Claudia Jañez Sánchez and Rafael Moisés Kalach Mizrahi and Pablo Roberto González Guajardo.Mizrahi. The mandate of the Audit and Corporate Practices Committee is to assist our Board of Directors in overseeing our operations and establish and monitor procedures and controls in order to ensure that the financial information we distribute is useful, appropriate and reliable and accurately reflects our financial position. In particular, the Audit and Corporate Practices Committee is required to, among other things, (i) call shareholders’ meetings and recommend items to be included on the agenda, (ii) advise the Board of Directors on internal control procedures, related party transactions that are outside the ordinary course of our business, succession plans and compensation structures of our key executives, (iii) selectpresent the auditor selection proposal to the Board of Directors and monitor our auditors, (iv) discuss with our auditors the procedures for the preparation of the annual financial statements and the accounting principles to the annual and the interim financial statements and (v) obtain from our auditors a report that includes a discussion of the critical accounting policies used by us, any alternative accounting treatments for material items that have been discussed by management with our auditors and any other written communications between our auditors and management.
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The Company is required to make public disclosure of any Board action that is inconsistent with the opinion of the Audit and Corporate Practices Committee.
In addition, pursuant to our bylaws, the Audit and Corporate Practices Committee is in charge of our corporate governance functions under the Mexican securities lawsSecurities Market Law and regulations and is required to submit an annual report to the Board of Directors with respect to our corporate and audit practices. The Audit and Corporate Practices Committee must request the opinions of our executive officers for purposes of preparing this annual report.
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SENIOR MANAGEMENT
The names, responsibilities and prior business experience of our executivesenior officers are as follows:
 
DANIEL HAJJ ABOUMRAD
Chief Executive Officer
Appointed:
 2000
Business experience:
 Director of Telmex;Telmex and Chief Executive Officer of Compañía Hulera Euzkadi
 
CARLOS JOSÉ GARCÍA MORENO ELIZONDO
Chief Financial Officer
Appointed:
 2001
Business experience:
 
General Director of Public Credit at the Ministry of Finance and Public Credit; Managing Director of UBS Warburg; Associate Director of Financing at Petróleos Mexicanos (Pemex); Member of Telekom Austria’s Supervisory Board; Member of KPN Supervisory Board
 
ALEJANDRO CANTÚ JIMÉNEZ
General Counsel
Appointed:
 2001
Business experience:
 Member of Telekom Austria’s Supervisory Board
 
OSCAR VON HAUSKE SOLÍS
Chief Fixed-line Operations Officer and Chief Information Security Officer (“CISO”)
Appointed:
 2010
Business experience:
 
Chief Executive Officer of Telmex Internacional; Chief SystemsSys- tems and Telecommunications Officer of Telmex; Head of Finance at Grupo Condumex; Director of Telmex, Telmex Internacional, Empresa Brasileira de Telecomunicaçőões S.A. (“Embratel”), and Net Serviços de Comunicaçăão S.A. (“Net Serviços”); Member of Telekom Austria’s Supervisory Board
RAFAEL COUTTOLENC URREA
Chief Wireless Operations Officer
Appointed:
 2021
Business experience:
 Various positions in América Móvil
AUDIT COMMITTEE FINANCIAL EXPERT
Our Board of Directors has determined that Ernesto Vega Velasco qualifies as an “audit committee financial expert,” and Mr. Vega Velasco is independent under the definition of independence applicable to us under the rules of the NYSE.
COMPENSATION OF DIRECTORS AND SENIOR MANAGEMENT
The aggregate compensation paid to our directors (including compensation paid to members of our Audit and Corporate Practices Committee) and senior management in 20212023 was approximately Ps.5.8Ps.6.2 million and Ps.85Ps.98.2 million, respectively. None of our directors is a party to any contract with us or any of our subsidiaries that provides for benefits upon termination of employment. We do not provide pension, retirement or similar benefits to our directors in their capacity as directors. Our executive officers are eligible for retirement and severance benefits required by Mexican law on the same terms as all other employees, and we do not separately set aside, accrue or determine the amount of our costs that is attributable to executive officers because they are included in the overall accrual for all employees subject to such benefits.
SHARE OWNERSHIP OF DIRECTORS AND SENIOR MANAGEMENT
As of March 31, 2024, Carlos Slim Domit, Chairman of our Board of Directors, holds 6472,326 million (or as of March 31, 2022, 3.1%3.7%) of our AA Shares and 1,679 million (or as of March 31, 2022, 3.9%) of our L Sharesshares directly. Patrick Slim Domit, Vice ChairmanCochairman of our Board of Directors, holds 3231,243 million (or as of March 31, 2022, 1.6%2.0%) of our AA Shares and 919 million (or as of March 31, 2022, 2.1%) of our L Sharesshares directly.
In addition, according to beneficial ownership reports filed with the SEC, Patrick Slim Domit and Carlos Slim Domit are beneficiaries of a trust that owns shares of the Company. See “Major Shareholders” under Part IV of this annual report. Except as described above, according to the information provided to us by our directors and members of senior management, none of our directors or executive officers is the beneficial owner of more than 1.0% of any class of our capital stock.
 
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Our corporate governance practices are governed by our bylaws, the Mexican Securities Market Law and the regulations issued by the CNBV. We also comply with the Mexican Code of Best Corporate Practices (
Código de Mejores Prácticas Corporativas
). On an annual basis, we file a report with the Mexican Stock Exchange regarding our compliance with the Mexican Code of Best Corporate Practices.
The table below discloses the significant differences between our corporate governance practices and those required for U.S. companies under the NYSE listing standards.
 
NYSE STANDARDS
 
OUR CORPORATE GOVERNANCE PRACTICES
DIRECTOR INDEPENDENCE
Majority of Boardboard of Directorsdirectors must be independent. §303A.01. “Controlled companies” are exempt from this requirement. A controlled company is one in which more than 50.0% of the voting power is held by an individual, group or another company, rather than the public. §303A.00. As a controlled company, we would be exempt from this requirement if we were a U.S. issuer.
 
Pursuant to the Mexican Securities Market Law, our shareholders are required to elect a Boardboard of Directorsdirectors of no more than 21 members, 25% of whom must be independent. Certain persons are per se
non-independent,
including insiders, control persons, major suppliers and any relatives of such persons. Under the Mexican Securities Market Law, our shareholders’ meeting is required to make a determination as to the independence of our directors, though such determination may be challenged by the CNBV. There is no exemption from the independence requirement for controlled companies.
 
Currently, a majority of our Board of Directors is independent.
 
EXECUTIVE SESSIONS
Non-management
directors must meet at regularly scheduled executive sessions without management. Independent directors should meet alone in an executive session at least once a year. §303A.03.
 
Our
non-management
directors have not held executive sessions without management in the past, and they are not required to do so.
NOMINATING/CORPORATE GOVERNANCE COMMITTEE
Nominating/corporate governance committee composed entirely of independent directors is required. The committee must have a charter specifying the purpose, duties and evaluation procedures of the committee. §303A.04.
“Controlled companies” are exempt from these requirements. §303A.00. As a controlled company, we would be exempt from this requirement if we were a U.S. issuer.
 
Mexican law requires us to have one or more committees that oversee certain corporate practices, including the appointment of directors and executives. Under the Mexican Securities Market Law, committees overseeing certain corporate practices must be composed of independent directors. However, in the case of controlled companies, such as ours, only a majority of the committee members must be independent.
“Controlled companies” are exempt from these requirements. §303A.00. As a controlled company, we would be exempt from this requirement if we were a U.S. issuer.
Currently, we do not have a nominating committee, and we are not required to have one. Our Audit and Corporate Practices Committee, which is composed of independent directors, oversees our corporate practices, including the compensation and appointment of directors and executives.
COMPENSATION COMMITTEE
Compensation committee composed entirely of independent directors is required, which must evaluate and approve executive officer compensation. The committee must have a charter specifying the purpose, duties and evaluation procedures of the committee. §303A.02(a)(ii) and §303A.05. “Controlled companies” are exempt from this requirement. §303A.00.
 
We currently do not have a compensation committee,an Audit and we are not required to have one.Corporate Practices Committee of four members. Each member of the Audit and Corporate Practices Committee is independent, as independence is defined under the Mexican Securities Market Law, and also meets the independence requirements of Rule
10A-3
under the U.S. Securities Exchange Act of 1934, as amended. Our Audit and Corporate Practices Committee operates primarily pursuant to (1) a written charter adopted by our Board of Directors, which is comprised solelyassigns to the Committee responsibility over those matters required by Rule
10A-3,
(2) our bylaws and (3) Mexican law. For a more detailed description of independent directors, evaluatesthe duties of our Audit and approves the compensationCorporate Practices Committee, see “Management” under Part V of management (including our CEO) and directors.this annual report.
AUDIT COMMITTEE
Audit committee satisfying the independence and other requirements of Rule
10A-3
under the Exchange Act and the additional requirements under the NYSE standards is required. §§303A.06 and 303A.07.
 
We have an Audit and Corporate Practices Committee of three members. Each member of the Audit and Corporate Practices Committee is independent, as independence is defined under the Mexican Securities Market Law, and also meets the independence requirements of Rule
10A-3
under the U.S. Securities Exchange Act of 1934, as amended. Our Audit and Corporate Practices Committee operates primarily pursuant to (1) a written charter adopted by our Board of Directors, which assigns to the Committee responsibility over those matters required by Rule
10A-3(2)10A-3,
(2) our bylaws and (3) Mexican law. For a more detailed description of the duties of our Audit and Corporate Practices Committee, see “Management” under Part V of this annual report.
 
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NYSE STANDARDS
 
OUR CORPORATE GOVERNANCE PRACTICES
EQUITY COMPENSATION PLANS
Equity compensation plans and all material revisions thereto require shareholder approval, subject to limited exemptions. §§303A.08 and 312.03.
 
Shareholder approval is required under Mexican law for the adoption or amendment of an equity compensation plan. Such plans must provide for similar treatment of executives in comparable positions.
SHAREHOLDER APPROVAL FOR ISSUANCE OF SECURITIES
Issuances of securities (1) that will result in a change of control of the issuer, (2) that are to a related party or someone closely related to a related party, (3) that have voting power equal to at least 20.0% of the outstanding common stock voting power before such issuance or (4) that will increase the number of shares of common stock by at least 20.0% of the number of outstanding shares before such issuance requires shareholder approval. §§312.03(b)-(d).
 
Mexican law requires us to obtain shareholder approval for any issuance of equity securities.securities, although this approval may be delegated by the shareholders meeting to our Board of Directors. Under certain circumstances, however, we may also sell treasury stock subject to the approval of our Board of Directors.
CODE OF BUSINESS CONDUCT AND ETHICS
Corporate governance guidelines and a code of business conduct and ethics are required, with disclosure of any waiver for directors or executive officers. The code must contain compliance standards and procedures that will facilitate the effective operation of the code. §303A.10.
 
We have adopted a code of ethics, which applies to all of our directors and executive officers and other personnel. For more information, see “Corporate Governance—Governance–Code of Ethics” under Part V of this annual report.
CONFLICTS OF INTEREST
A company’s audit committee or another independent body of the board of directors shall conduct a reasonable prior review and oversight of related party transactions required by Item 7.B of Form
20-F
for potential conflicts of interest and will prohibit such transaction if it determines it to be inconsistent with the interests of the company and its shareholders. §314.00. Certain issuances of common stock to a related party require shareholder approval. §312.03(b).
 
In accordance with Mexican law, an independent audit committee must provide an opinion to the board of directors regarding any transaction with a related party, which must be approved by the board of directors. Pursuant to Mexican Law,
non-material
related party transactions, or transactions with certain related parties within the ordinary course of business or on arms-length basis, do not require specific board approval, if consistent with guidelines approved by the Board of Directors.
SOLICITATION OF PROXIES
Solicitation of proxies and provision of proxy materials is required for all meetings of shareholders. Copies of such proxy solicitations are to be provided to NYSE. §§402.01 and 402.04.
 
We are not required to solicit proxies from our shareholders. In accordance with Mexican law and our bylaws, we inform shareholders of all meetings by public notice, which states the requirements for admission to the meeting and we make materials available to be discussed at each shareholders’ meeting. Under the deposit agreement relating to our ADSs, holders of our ADSs receive notices of shareholders’ meetings and, where applicable, instructions on how to instruct the depositary to vote at the meeting. Under the deposit agreement relating to our ADS, we may direct the voting of any ADS as to which no voting instructions are received by the depositary, except with respect to any matter where substantial opposition exists or that materially and adversely affects the rights of holders.
 
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A) DISCLOSURE CONTROLS AND PROCEDURES
We carried out an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of December 31, 2021. Based upon our evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure2023. Disclosure controls and procedures were effectiveare controls and other procedures that are designed to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periodsperiod specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisionsprovide reasonable assurance regarding required disclosure.
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the International Accounting Standards Board (“IASB”). Based upon that evaluation, our management has concluded that, because of the material weakness identified below related to certain ineffective ITGCs at our Colombian subsidiary, our disclosure controls and procedures were not effective as of December 31, 2023.
In light of the material weakness discussed below, we performed additional analysis and other post-closing procedures to ensure our consolidated financial statements are prepared in accordance with generally accepted accounting principles. Accordingly, our management, including our Chief Executive Officer and Chief Financial Officer, have concluded that the consolidated financial statements included in this Form
20-F
present fairly, in all material respects, our financial position, results of operations and cash flows for the periods presented in conformity with IFRS as issued by the IASB, and no adjustments are required to our financial statements as a result of such weakness.
B) MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules
13a-15(f)
and
15d-15(f)
under the Exchange Act. Under the supervision and with the participation of our management, including our Chief Executive Officer, Chief Financial Officer and other personnel, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.Commission (the “COSO criteria”).
Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.IFRS as issued by the IASB. Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets, (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS as issued by the IASB and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.
Because of the inherent limitations in all control systems, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
Based on our evaluation under the framework in Internal Control—Integrated Framework,COSO criteria, our management concluded that our internal control over financial reporting was not effective as of December 31, 2021.2023. Management has identified a material weakness with respect to ineffective ITGCs in our Colombian subsidiary related to (i) user access controls over granting access to, and terminations, modifications and certification of, users; and (ii) program change management controls related to inadequate restrictions on developers making changes to certain applications in the production environment.
As a result, business process controls, application controls, management review controls and manual controls dependent on information derived from such systems and applications were determined to be ineffective. This material weakness did not result in a material misstatement in our consolidated financial statements as of and for the year ended December 31, 2023, and, accordingly, no adjustments are required to our financial statements as a result of such weakness.
Mancera, S.C. (“Mancera”), a member practice of Ernst & Young Global Limited, an independent registered public accounting firm, our independent auditor, issued an attestation report on our internal control over financial reporting on
April 29,
, 2022. 2024.
 
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C) ATTESTATION REPORT OF THEINDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Shareholders of América Móvil, S.A.B. de C.V.
Opinion on Internal Control overOver Financial Reporting
We have audited América Móvil, S.A.B. de C.V. and subsidiaries’ internal control over financial reporting as of December 31, 2021,2023, based on criteria established in Internal Control—Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, because of the effect of the material weakness described below on the achievement of the objectives of the control criteria, América Móvil, S.A.B. de C.V. and subsidiaries (the Company) has not maintained in all material respects, effective internal control over financial reporting as of December 31, 2021,2023, based on the COSO criteria.
A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company´s annual or interim financial statements will not be prevented or detected on a timely basis. The following material weakness has been identified and included in management’s assessment. Management has identified a material weakness in controls related to ineffective information technology general controls related to user access and program change management in one of the Company’s foreign subsidiaries that are relevant to the preparation of the financial statements. As a result, business process controls, application controls and manual controls dependent on information derived from such systems, including management review controls, were also determined to be ineffective. 
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial position of the Company as of December 31, 20212023 and 2020,2022, the related consolidated statements of comprehensive income, changes in shareholders’ equity and cash flows for each of three years in the period ended December 31, 2021,2023, and the related notes,notes. This material weakness was considered in determining the nature, timing, and extent of audit tests applied in our audit of the 2023 consolidated financial statements, and this report does not affect our report dated April 29, 20222024, which expressed an unqualified opinion thereon.
Basis for Opinion
The Company´sCompany’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company´sCompany’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a
material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definitions and Inherent Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ MANCERA, S.C.
A member of Ernst & Young Global 
Limited
Mexico City, Mexico
April 29, 2022
2024
D) REMEDIATION PLAN FOR MATERIAL WEAKNESS AND CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
ThereManagement is committed to the continued improvement of the Company’s internal control over financial reporting. Management is implementing measures designed to ensure that any control deficiencies are remediated, such that our controls are designed, implemented, and operating effectively.
As of the date of this annual report, management has made, and continues to make changes to remediate the control deficiencies giving rise to the material weakness disclosed in this annual report through remediation actions that include, but are not limited to: (i) maintaining sufficient user access controls over granting access to, and terminations, modifications and certification of, users, including determining user access to information systems and applications at an individual user level; and (ii) implementing restrictions on developers making changes to certain applications in the production
environment. Management made during 2023 and continues to make changes to remediate the control deficiencies giving rise to the 2022 Material Weakness through remediation actions that include, but are not limited to: (i) causing user access revocations to occur in a timely manner to prevent unauthorized access; and (ii) maintaining records and logs of activities by all users and conducting periodic reviews of records and logs of activities by any users following the date on which they no longer require access.
We believe that these actions will remediate the material weakness in internal control over financial reporting described above.
While some of these ongoing remediation actions have been completed as of the date of this annual report, management has not completed and tested all of the planned corrective processes, enhancements, procedures and related evaluations necessary to determine whether the material weakness disclosed in this annual report have been fully remediated. Moreover, the corrective actions and controls need to be in operation for a sufficient period of time for management to conclude that the control environment is operating effectively and has been adequately tested by management. As the Company continues its evaluation and remediation efforts, management may modify the actions described above or identify and take additional measures to address the control deficiencies.
Other than the remediation actions described above to address the material weakness disclosed in this annual report, there has been no change in our internal control over financial reporting during 20212023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
 
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Chaired by our CEO, the Corporate Sustainability Executive Committee defines and oversees the implementation of our overall strategy to improve our performance on sustainability matters.
By incorporating sustainability in our daily decision-making,decision- making, we seek to foster greater efficiencies and operate with the highest sense of social responsibility and environmental care, strengthening our market leadership while contributing to economic, social, and cultural development in the communities where we operate.
Our corporate sustainability reports are available on our website at www.americamovil.com. This URL is intended to be an inactive textual reference only. It is not intended to be an active hyperlink to our website. The information on our website, which might be accessible through a hyperlink resulting from this URL (including our sustainability report), is not incorporated into this annual report.
 
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RISK MANAGEMENT AND STRATEGY
As part of our overall risk management system, we have developed processes for assessing, identifying and managing material risks from cybersecurity threats. Our cybersecurity risk management processes include development, implementation and improvement of policies and procedures that seek to safeguard information and ensure availability of critical data and systems. Our internal cybersecurity risk professionals consult with company subject matter experts to gather information necessary to identify cybersecurity risks, and evaluate their nature and severity, as well as identify potential mitigants and assess the impact of those mitigations on residual risk. We seek to adopt a continuous improvement model in our cyber security risk management in order incorporate result of testing or any incidents in our processes. We also use external cybersecurity risk professionals for specific projects.
We understand the importance of preserving trust and protecting personal information. To assist us, we have cybersecurity governance and data privacy frameworks in place, which are designed to protect information and information systems from unauthorized access, use, disclosure, disruption, modification or destruction.
Our cybersecurity risk management processes include the following:
Cybersecurity governance and data privacy frameworks that include risk assessment and mitigation through a threat intelligence-driven approach, application controls and enhanced security with ransomware defense. Our frameworks leverage International Organization for Standardizations (ISO) 27001/27002 standards for general information technology controls and International Society of Automation (ISA) / International Electrotechnical Commission (IEC) standards for industrial automation. We also consider the National Institute of Standards and Technology (NIST) Cyber Security Framework in measuring overall readiness to respond to cyber threats.
Policies, software, training programs and hardware solutions are utilized to protect and monitor our environment, including multifactor authentication, firewalls, intrusion detection and prevention systems, vulnerability and penetration testing and identity management systems. We also seek to continually improve our cybersecurity practices through annual reviews.
Mandatory security awareness education and training for all employees and additional specialist training for IT employees, internal “phishing” testing and training for “clickers,” mandatory security training for all new hires and the publication of periodic cybersecurity newsletters and employee awareness campaigns to highlight security threats.
We are in the process of updating our cybersecurity incident response plan and processes to respond to and recover from cybersecurity incidents in accordance with international standards.
Participation with telecom industry associations in Latin America to share threat intelligence and collaboration with organizations across different industries to share best practices.
Additionally, in connection with our cybersecurity risk management processes, we engage:
Independent third-parties to assess and report on our internal incident response preparedness and help identify areas for continued focus and improvement, test for cyber vulnerabilities, perform penetration tests at least once a year and execute regular information technology reviews based on the NIST Cybersecurity Framework.
Outside counsel to advise about best practices for cybersecurity oversight, and the evolution of that oversight over time.
Our cybersecurity risk management processes include the oversight and identification of threats associated with our use of third-party service providers. We review the cybersecurity practices of vendors that may receive data privacy information and we seek to contractually obligate such vendors to operate their environments in accordance with cybersecurity standards.
Our business strategy, results of operations and financial condition have not been materially affected by cybersecurity threats or cybersecurity incidents, but we cannot provide assurance that they will not be materially affected in the future by any future material incidents. As of the date of this annual report, we have not experienced any material information security breach incidences. See “Risk Factors” in Part III of this annual report for more information on our cybersecurity related risks.
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GOVERNANCE
Management
The cybersecurity risk management processes described above are managed by our CISO. Our CISO joined Telmex in 1996. Previously, our CISO was a member of the board of directors of SCITUM Group and HITSS Group, both of which are dedicated to the development and integration of software solutions and IT services. Our Corporate Information Security Committee supervises the implementation of América Móvil’s Information Security Strategy. Additionally, each subsidiary has its own local Information Security Committee. The committees’ functions include identifying main operational risks for the business, developing and managing security strategies by creating and monitoring “Strategic Information Security Plans,” which are updated annually or semi-annually, managing and allocating corporate and local budgets for information security and determining priority actions in the face of current or future threats.
Our CISO reports to our board of directors’ Audit and Corporate Practices Committee, and holds extraordinary meetings as needed.
Board of Directors
Our Board of Directors, through its Audit and Corporate Practices Committee oversees data privacy and cybersecurity risks. Our CISO provides periodic updates to our at Audit and Corporate Practices Committee on our cybersecurity risks and actions taken to mitigate that risk, which information is then reported to our full Board to the extent deemed to be material. The CISO reports on compliance and regulatory issues, evolving threats and mitigating actions. In overseeing cybersecurity risks, the Audit and Corporate Practices Committee focuses on thematic issues within an aggregated strategic lens and uses a risk-based approach.
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We have developed an Integrity and Compliance Program (ICP), which has as its foundation our Code of Ethics. The ICP codifies the ethical principles that govern our business and promotes, among other things:
 
honest and ethical conduct;
 
full, fair, accurate, timely and understandable disclosure in reports and documents that we file with, or submit to, the SEC and other authorities;
 
compliance with applicable governmental laws, rules and regulations; the prompt internal reporting of violations of the Code of Ethics and the ICP; and
 
accountability for
adherence to the Code of Ethics.
Both the ICP and our Code of Ethics apply to all of our officers, senior management, directors, employees, the Company’s supply chain and/or other business relationships.
In 2021,2023 we updated our Code of Ethics to include references to various ICP policies as well as toclarify the whistleblower portal, which permits reportingscope of any conduct that infringes our Code of Ethics, any applicable law or regulation or anyits applicability, elaborate on the role of our policies or procedures.Audit and Corporate Practices Committee in compliance and make explicit certain implicitly prohibited activities. The full text of our Code of Ethics and associated ICP policies may be found on our website at América Móvil—Corporate Governance (americamovil.com)(americamovil. com). This URL is intended to be an inactive textual reference only. It is not intended to be an active hyperlink to our website. The information on our website, which might be accessible through a hyperlink resulting from this URL, is not incorporated into this annual report.
 
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MEXICO
Legal Framework
The legal framework for the regulation of telecommunications and broadcasting services is based on constitutional amendments passed in June 2013, the Federal Law on Telecommunications and Broadcasting (
(Ley Federal de Telecomunicaciones y Radiodifusiónn)
) as amended and the Federal Law on Economic Competition (
(Ley Federal de Competencia Económicamica)
) as amended.
Under the framework, the IFT may determine whether there is a “preponderant economic agent” in the telecommunications sector, based on number of customers, traffic or network capacity. In 2014, the IFT determined that an “economic interest group” consisting of us and our Mexican operating subsidiaries (Telcel, Telmex and Telnor) as well as Grupo Carso and Grupo Financiero Inbursa, constitutes the “preponderant economic agent” in the telecommunications sector, based on a finding that we serve more than half of the customers in Mexico, as measured by the IFT on a national basis.
The IFT has authority to impose on any preponderant economic agent a special regulatory regime. The special regime is referred to as “asymmetric” regulation because it applies to one sector participant and not to the others. Pursuant to the IFT’s determination that we are part of a group constituting a preponderant economic agent, we are subject to extensive asymmetric regulations in the telecom sector, which impacts our Mexican
fixed-line
and wireless businesses. See “ — “—Asymmetric Regulation of the Preponderant Economic Agent” and “ —“— Creation of Red Nacional Última Milla and Red Última Milla Del Noroeste”Nacional” under this Part VI. This legal framework has had a substantial impact on our business and operations in Mexico.
Principal Regulatory Authorities
The IFT is an autonomous authority that regulates telecommunications and broadcasting. It is headed by seven commissioners appointed by the President, and ratified by the Senate, from among candidates nominated by an evaluation committee. The IFT has authority over the application of legislation specific to the telecommunications and broadcasting sectors, and also over competitionantitrust legislation as it applies to those sectors. The Mexican Ministry of Infrastructure, Communications and Transportation (
(Secretaría de Infraestructura, Comunicaciones y TransportesTransportes)
) retains regulatory authority over a few specific public policy matters.
The Mexican government has certain powers in its relations with concessionaires, including the right to take over the management of an operator’s networks, facilities and
personnel in cases of imminent danger to national security, public order or the national economy, natural disasters and public unrest, as well as to ensure continuity of public services.
Telecommunications operators are also subject to regulation by the Federal Consumer Bureau (
(Procuraduría Federal del Consumidor)
Consumido
r) under the Federal Consumer Protection Law (
(Ley Federal de Protección al ConsumidorConsumidor)
), which regulates publicity, quality of services and information required to be provided to consumers.
Asymmetric Regulation of the Preponderant Economic Agent
We are currently subject to extensive specific asymmetric measures based on the IFT’s determination that we and certain affiliates constitute the preponderant economic agent in the telecommunications sector. Below is a summary of the most important measures applicable to us.
Interconnection Rates.
The Federal Law on Telecommunications and Broadcasting provides that we are not permitted to charge other carriers for the termination services we provide in our networks. These provisions were declared unconstitutional by the Mexican Supreme Court (
(Suprema Corte de Justicia de la Naciónn)
) in August 2017 with respect to wireless services and in April 2018 with respect to fixed services. As a result, the IFT ruled that, as of January 1, 2018, in the case of Telcel, and as of January 1, 2019, in the case of Telmex, we are able to charge other carriers for terminating calls to our networks at asymmetric rates established by the IFT. We continue to pay such carriers for their interconnection services in accordance with the fixed and mobile rates set by the IFT.
Sharing Of Wireless Infrastructure and Services.
We must (i) provide other carriers access to (i) passive infrastructure, including towers, sites, ducts and rights of way, (ii) elements of our network that allow other carriers and mobile virtual network operators (“MVNOs”) to use our network or resell those services we provide to our customers and (iii) provide other carriers domestic roaming services; in each case, pursuant to IFT
pre-approved
reference terms (
(ofertas públicas de referenciareferencia)
). If we cannot reach an agreement with other carriers or MVNOs, our rates may be determined by the IFT using a
long-run
average incremental costs methodology or, in the case of MVNOs, a “retail-minus” methodology.
For mobile services,
the IFT has the right to verify, through a replicability test, that carriers using our regulated wholesale services can match our end user rates.
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Sharing of Fixed Infrastructure and Services.
We must provide other carriers access to (i) passive infrastructure, including towers, sites, telephone poles, ducts, manholes and rights of way, (ii) elements of our network that allow other carriers to use our network or resell those services
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we provide to our customers and (iii) our dedicated links (either local or long distance). Rates for this access are determined by the IFT using a
long-run
average incremental cost methodology.
For fixed services, the IFT has the right to verify, through a replicability test, that carriers using our regulated wholesale services can match our end user rates.
Local Loop Unbundling.
We must offer other carriers access to elements of our local loop network separately on terms and conditions (including rates)
pre-approved
by the IFT. The IFT has also ordered the legal and functional separation of the provision of wholesale regulated fixed services related to local loop unbundling, local dedicated links and shared access/use of passive infrastructure related with the local loop network. See “ —“— Creation of Red Nacional Última Milla and Red Última Milla Del Noroeste”Nacional” under this Part VI.
Certain Obligations Relating to Retail Services.
Rates for the provision of telecommunications services to our customers are subject to the IFT’s prior authorization.
We are also subject to certain obligations and restrictions relating to the sale of our services and products; one such obligation includes unlocking mobile devices for our customers and regulations on the sale endand financing atof mobile devices.
Content.
We are subject to specific limitations on acquisitions of exclusive transmission rights to “relevant” content (
contenidos audiovisuales relevantes
), as determined from time to time by the IFT, including the Mexican national team soccer matches, the opening and closing ceremonies and certain matches of the FIFA World Cup, the semifinal and final matches of the Liga MX soccer tournament and the Super Bowl.
Reference Terms.
Every year we must submit, for IFT’s approval, a proposal of the reference terms for all wholesale services that are subject to asymmetric regulation for the following year. Once approved, we must publish and offer the regulated wholesale services, in the terms approved by IFT.
IFT’s Biannual Review of Asymmetric Regulation
The next IFTIFT’s biannual review began in December 2022 and is scheduledexpected to beginconclude in 2022.2024. The current measures are transitory and may be amended by the IFT, or terminated if the IFT determines effective competition conditions exist in the telecommunications sector or if we cease to be considered a preponderant economic agent. The IFT reviews the impact of the asymmetrical measures every
two years and may modify or eliminate measures or set forth new measures. The IFT reviewed the measures in 2020 and determined, among other things, to modify and
add new asymmetrical regulations for mobile and fixed services. See “ — Creationservices, including the separation of Red Nacional Última Milla and Red Última Milla Del Noroeste” under this Part VI.the provision of wholesale regulated fixed services.
Creation of Red Nacional Última Milla and Red Última Milla Del Noroeste
In 2018, in response to an IFT resolution, we began to separate out the provision of wholesale regulated fixed services by Telmex and Telnor (the “Separation Plan”). Pursuant to the Separation Plan, Telmex and Telnor established new subsidiaries, Red Nacional Última Milla, S.A.P.I. de C.V. and Red Última Milla Deldel Noroeste, S.A.P.I. de C.V. (the “New Companies”(jointly, “Red Nacional”), to provide local wholesale services related to the elements of the access network, including local access dedicated links, as well as those services related to passive infrastructure associated with the access network, such as ducts, poles and rights of way.
The prices and terms of the services provided by the New CompaniesRed Nacional are subject to IFT regulation, which could affect the viability and financial requirements of the New Companies. The practices of the New Companies may be subject to regulatory challenges by other market participants.Red Nacional. In August 2021, the New Companies receivedDecember 2023, IFT issued a resolution issued by IFT lifting price regulationregulations on access to certain local loop access services (
(servicios de desagregación indirecta del bucle locallocal)
) in 5290 municipalities.
The implementation of the Separation Plan has been complex, and some features remain uncertain and may require further development. As a result, we are not yet able to identify all the possible consequences, but some of the consequences could have a material adverse impact on us.
We have challenged the resolution in the Mexican courts. However, legal challenges will not suspend the implementation of the Separation Plan and final determinations are pending.
Substantial Market Power Investigations
When IFT was established, it succeeded to several major proceedings begun by predecessor agencies. These legacy proceedings have never been finally resolved, but the substance of the investigations and the potential relief have been largely superseded by the asymmetric regulation and other subsequent actions of IFT.
Our competitors have submitted multiple requests to IFT alleging anti-competitive practices or
non-compliance
with regulations on the part of the separate subsidiaries we established to provide wholesale services under the
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Separation Plan.asymmetric regulations. We expect IFT to investigate these allegations, and it is possible that some of them could lead IFT to make findings adverse to us or to impose fines or other penalties.
Concessions
Under the current legal framework, a carrier of public telecommunications networks, such as Telcel or Telmex, must operate under a concession. The IFT is an autonomous federal agency that grants new or
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extends existing concessions, which may only be granted to a Mexican citizen or corporation that has agreed to the concession terms and may not be transferred or assigned without the approval of the IFT. There are three types of concessions:
Network Concessions.
NETWORK CONCESSIONS.
Telcel, Telmex and its subsidiary Telnor hold network concessions, granted under the previous regulatory framework, to provide specified types of services. Their ability to migrate to the new regime of unified concessions and, consequently, to provide any and all telecommunications and broadcasting services, is subject to conditions, as described under “Migration of Concessions and Additional Services” below.
Spectrum Concessions.
SPECTRUM CONCESSIONS.
Telcel holds multiple concessions, granted under both the previous and current regulatory frameworks, to provide wireless services that utilize frequencies of radio-electric spectrum. These concessions, according to the Federal Telecommunications and Broadcasting Law (
Ley Federal de Telecomunicaciones y Radiodifusión
), have terms of 15 to 20 years and may be extended for an additional term of equal length.
Unified Concession.
UNIFIED CONCESSIONS.
Each of the New CompaniesRed Nacional holds a unified concessionconcessions granted to provide only wholesale telecommunications services. These concessions were issued in March 2020 and have a term of 30 years and may be extended for an additional term of equal length.
Termination of Concessions
Mexican legislation provides that under certain circumstances, some assets of a concessionaire may be acquired by the federal government upon termination of these concessions.
There is no specific guidance or precedent for applying these provisions, so the scope of assets covered, the compensation to the concessionaire and the procedures to be followed would depend on the type of concession, the type of assets and the interpretation of applicable legislation by the competent authorities at the time.
Migration of Concessions and Additional Services
The new legislative framework established the unified concession (
concesión única
), which allows the holder to provide all types of telecommunications and broadcasting services, and a regime under which an existing concession can be migrated to
the new unified concession at the end of its term or upon request by the concession holder. A unified concession has a term of up to 30 years, extendable for up to an equal term. Also, under this new framework a current concession may be modified to add services not previously contemplated therein.
However, as a
result
of our preponderant economic agent status, Telcel, Telmex and Telnor are subjectrequire IFT’s approval to additional conditions for the migrationmigrate to a unified concession or the addition of a service,add services, such as Pay TV, to a current concession, subject to several conditions, including in certain cases (i) payment of any new applicable concession fee to be determined by the IFT, (ii) compliance with current requirements under the network concession, the 2013 constitutional amendments, the 2014 legislation and any additional measures imposed by the IFT on the preponderant economic agent and (iii) such other requirements, terms and conditions as the IFT may establish in the concession itself. We expect the process of migration or additional services to be lengthy and complex. Consequently, Telcel, Telmex and Telnor may not be able to provide certain additional services, such as Pay TV and broadcasting, in the near term.
Telcel’s Concessions
Telcel operates under several different network and spectrum concessions covering particular frequencies and regions, holding an average of 289.26 MHz of capacity in Mexico’s nine regions in the 850 MHz, 1900 MHz,1.7/2.1 GHz, 2.5 GHz and 3.5 GHz bands. The following table summarizes Telcel’s concessions.
 
FREQUENCY
 
COVERAGE
AREA
  
INITIAL
DATE
  
TERMINATION

DATE
Band A (1900 MHz)
 Nationwide  Sep. 1999  Oct. 2039
Band D (1900 MHz)
 Nationwide  Oct. 1998  Oct. 2038
Band B (850 MHz)
 Regions 1, 2, 3  Aug. 2011  
Aug. 2026
(1)
Band B (850 MHz)
 Regions 4, 5  Aug. 2010  Aug. 2025
(1)
2037
Band B (850 MHz)
 Regions 6, 7, 8  Oct. 2011  
Oct. 2026
(1)
Band B (850 MHz)
 Region 9  Oct. 2015  Oct. 2030
Band F (1900 MHz)NationwideApr. 2005Apr. 2025
(1)
Bands A and B (1.7/
(1.7/2.1 GHz)
 Nationwide  Oct. 2010  Oct. 2030
Bands H, I and J (1.7/
(1.7/2.1 GHz)
 Nationwide  May 2016  Oct. 2030
Band 7 (2.5 GHz)
 
98.94% of the
population
(2)
  Jul. 2017  Sep. 2020
(1)
Nov. 2028 – Oct.
2040 – May
2041, Nov. 2041
Band 3.5 GHz
(3)
 Nationwide  
Oct. 2020(4)2020
(4)
  Oct. 2038 and
2040
Band F (1900 MHz)
NationwideApr. 2025Apr. 2045
(1)
  A request for extension has already beenwas filed with the IFT.IFT on April 24, 2023.
(2)
  Except 7 municipalities in the state of Jalisco and 34 municipalities in the state of Zacatecas.
(3)
  On December 18, 2020,February 15, 2022, Telcel filed a formal request with the IFT to includereceived mobile service inauthorization for these concessions.
(4)
  The term of this concession is currently in force and was extended by IFT in favor of Telmex until 2040 and afterwards it was assigned by Telmex to Telcel as of March 11, 2020. Concessions acquired from Axtel were extended by the IFT until 2038.
 
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Concession Fees
All of Telcel’s concessions granted or renewed on or after January 1, 2003 are required to pay annual fees for the use and exploitation of radio spectrum bands. The amounts payable are set forth by the annual Federal Fees Law (
Ley Federal de Derechos
) and vary depending on the relevant region and radio spectrum band.
Telmex’s Concessions
Telmex’s concession was granted in 1976 and is currently set to expire in 2026. In December 2016, the IFT granted Telmex a
30-year
extension of this concession, which will become effective in 2026 and will be valid until 2056. New terms for this concession were issued in 2023. The new terms of this concession will be issued in early 2023.are substantially similar to the prior terms but, notwithstanding Telmex’s request to the IFT, the new terms exclude the authorization to provide television services.
Telmex’s subsidiary, Telnor, holds a separate concession, which covers one state and two municipalities in northwestern Mexico and will expire in 2026. The IFT also granted Telnor a
30-year
extension of its concession, which will be effective in 2026 and will be valid until 2056. The material terms of Telnor’s concession are similar to those of Telmex’s concession.
In addition, Telmex currently holds concessions for the use of frequencies to provide
point-to-point
Telmex’s Fines
and
point-to-multipoint
transmission in 10.5, 15 and 23 GHz bands.
In 2018, Telmex was notified of a resolution issued by the IFT, through which the IFT imposed a fine of Ps.2.5 billion derived from an alleged breach in 2013 and 2014 of certain minimum quality of service goals for dedicated link services. Telmex has exercised all legal remedies challenging such resolution. As of the date of this annual report, a final resolution is pending.
In January 2020, Telnor was notified of a resolution issued by the IFT imposing a fine of Ps.1.3 billion for Telnor’s alleged noncompliance with information availability rules regarding certain passive infrastructure (poles, ducts) in the electronic management system used for wholesale services. Telnor has exercised all legal remedies challenging the resolution. As of the date of this annual report, a final resolution is pending.
In November 2023, Telmex and Telnor were notified of a resolution issued by the IFT imposing fines of Ps.262.2 million and Ps.9.3 million, respectively, for alleged relative monopolistic practices. Telmex and Telnor have exercised all legal remedies challenging the resolution. As of the date of this annual report, a final resolution is pending.
Rates for Wireless Service
Wireless services concessionaires are generally free to establish the prices they charge customers for telecommunications services. Wireless rates are not
subject to a price cap or any other form of price regulation. The interconnection rates concessionaires charge other operators are also generally established by agreement between the parties and, if the parties cannot agree, may be imposed by the IFT, subject to certain guidelines, cost models and criteria. The IFT publishes at the end of the year the rates they would impose in the event of a dispute, eliminating all incentives for a negotiation among the parties. The establishment of interconnection rates has resulted, and may in the future result, in disputes between carriers and with the IFT.
As a result of the preponderance determination, Telcel’s retail prices are subject to
pre-approval
by the IFT before they can take effect.
The IFT is also authorized to impose specific rate requirements on any carrier that is determined by the IFT to have substantial market power under the Federal Antitrust
Law (
Ley Federal de Competencia Económica
) and the 2014 legislation. For more information on litigation related to the Federal Antitrust Law and the 2014 legislation, see “–“—Substantial Market Power Investigations” under this Part VI.
Rates for Fixed Service
Telmex’s concessions subject its rates for basic retail telephone services in any period, including installation, monthly rent, measured local-service and long-distance service, to a ceiling on the price of a “basket” of such services, weighted to reflect the volume of each service provided by Telmex during the preceding period. Telmex is required to file a survey with the IFT every four years with its projections of units of operation for basic services, costs and prices. Telmex is free to determine the structure of its own rates, with the exception of domestic long-distance rates, which were eliminated in 2015, and of the residential
fixed-line
rates, which have a cap based on the
long-run
average incremental cost. As a result of the preponderance determination, Telmex’s retail prices are subject to
pre-approval
by the IFT before they can take effect.
The price ceiling varies directly with the Mexican National Consumer Price Index (
Indice Nacional de Precios al Consumidor
), allowing Telmex to raise nominal rates to keep pace with inflation (minus a productivity factor set for the telecommunications industry), subject to consultation with the IFT. Telmex has not raised its nominal rates for many years. Under Telmex’s concession, the price ceiling is also adjusted downward periodically to pass on the benefits of Telmex’s increased productivity to its customers. The IFT sets a periodic adjustment for every four-year period to permit Telmex to maintain an internal rate of return equal to its weighted average cost of capital.
In addition, basic retail telephone services, as well as broadband services and “calling party pays” charges, are subject to a separate price ceiling structure based on productivity indicators. In each case, Telmex is required to submit a survey on productivity indicators to the IFT every two years, including a total factor productivity. The IFT establishes the productivity factor that will apply over the next two years, and, based on this, the IFT will approve the customer prices before they can take effect.
Prices for Telmex’s wholesale services are established by the IFT based on the
long-run
average incremental cost model methodology.
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Legal Framework and Principal Regulatory Authorities
The Brazilian Telecommunications Law (
Lei Geral
das Telecomunicações Brasileiras
) provides the framework for
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telecommunications regulation. The primary telecommunications regulator in Brazil is the Telecommunications Agency (
Agência Nacional de Telecomunicações
, or “Anatel”), which has the authority to grant concessions and licenses in connection with telecommunications services and the use of orbits, except broadcasting, and to adopt regulations that are legally binding on telecommunications services providers.
The
In 2019, the Brazilian Congress has approved an updated legislation to modernize the currentBrazil’s concession-based telecommunications model to an authorization- basedauthorization-based model. The updated law brings the possibility of allowing
legislation allows fixed-line
concessionaires, such as Claro Brasil, to provide services under an authorization rather than a concession, as long as certain investment-related obligations are met. Under the new legislation, it is possible to extend the current concessions, as well as radio frequency licenses and orbital positions, for more than one period. The legislation also permits the possibility of a secondary market for trading cellphone frequencies. The legislation will beis implemented bythrough regulations promulgated by Anatel. As of the date of this annual report, Anatel has promulgated the regulation that allows concessions to be transformed into authorizations. Anatel has yet to promulgate other enacting regulations, such as the regulation creating a secondary market for trading cellphone frequencies, which remain under discussion. We are currently evaluating the potential impact of this legislation on our operations.
Licenses
In 2014, we simplified our corporate structure, and our subsidiaries Embratel, Embratel Participações S.A. (“Embrapar”) and Net Serviços were merged into Claro Brasil, with all licenses previously granted to our subsidiaries transferred to Claro Brasil.
In 2018, subsidiary Star One merged into Claro Brasil. As a result, all Brazilian satellite operation rights previously granted to Star One were transferred under the same terms and conditions to Claro Brasil. The satellite operation rights
(AMC-12)
covering regions outside of Brazil were relinquished by Star One before the merger. In 2020, the satellite operation rights were transferred to Embratel TysatTVsat Telecomunicações S.A. (“Claro TV”), after approval by Anatel.
On December 18, 2019, we announced the acquisition of 100% of the shares of Nextel Brazil (currently known as Claro NXT Telecomunicações S.A.) and Sunbird
Telecomunicações Ltda. (“Sundbird”), as well as its correspondent subsidiaries and parent companies in Brazil. Nextel Brazil had authorizations to provide personal mobile services, specialized mobile services, multimedia communication services, paid fixed telephony services (national and international long-distance) and radiofrequency services in Brazil that were granted by Anatel. Sunbird had authorizations to provide specialized mobile services and radiofrequencyradio frequency services. Derived from our acquisition of Nextel Brazil and Sunbird, Anatel provided us with: (i) a term of 18 months to consolidate and cancel the overlapped
authorizations granted in favor of Nextel Brazil and Sunbird; and (ii) a term of 2 months to adjust the radiofrequency thresholds. In 2020, the authorizations and radiofrequencies granted in favor of Nextel Brazil and Sunbird for specialized mobile services were waived. Also in 2020, Nextel’s PS licenses were transferred to Claro Brasil. Moreover, to comply with the obligation mentioned on item “(i)” above, on February 5, 2021, all of Nextel Brazil’s mobile services assets and licenses were transferred to Claro Brasil by means of a corporate restructuring.
In 2019, the subsidiary Primesys was merged into Claro Brasil. As a result, service authorizations granted to Primesys were transferred under the same terms and conditions to Claro Brasil.
Our Brazilian subsidiaries hold licenses for the telecommunications services listed below and expect to continue acquiring spectrum if Anatel conducts additional public auctions, although Claro Brasil, like all of its peer competitors, is subject to a cap on the additional spectrum it may acquire per frequency band.
 
SUBSIDIARY
  
LICENSE
  
TERMINATION
DATE
Claro Brasil
  Fixed Local Voice Services  Indefinite
  
Domestic and International
Long-Distance
  2025
  Voice Services  Indefinite
  Personal Communication Services  Indefinite
  Data Services  Indefinite
  Mobile Maritime Services  Indefinite
  Global Mobile Satellite Services  Indefinite
Claro TV
  DTH TV Services  Indefinite
  Data Services  Indefinite
Data ServicesIndefinite
Americel S.A.
  Data Services  Indefinite
Telmex do Brasil
  Data Services  Indefinite
Nextel BrazilClaro NXT
Cable TV ServicesIndefinite
Domestic and International
Long-Distance
Indefinite
  Data Services  Indefinite
Cable TV ServicesIndefinite
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In addition, Claro TV has various orbital position authorizations for our satellite operations, which are set to expire between 20222025 and 2033. Requests for extensions for 15 more years have been requested from Anatel. Claro TV also has radio frequency licenses to provide PCS, which are set to expire between 2022 and 2032. These grants were transferred from Claro Brasil to Claro TV in 2020, subsequent to Anatel’s approval. Requests for extensions for 15 more years have been requested from Anatel. Claro Brasil also has radio frequency licenses to provide PCS, which are set to expire between 2036 and 2041.
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Nextel Brazil hashad radio frequency licenses to provide PCS, which were transferred to Claro Brasil on February 2021 and will expire between 2026 and 2031.
On June 30, 2021, all of Claro Brasil’s cable TV (SeAC) assets and its license were transferred to Nextel Brazil by means of a corporate restructuring.
On November 4 and 5 of 2021, during a 5G auction, Claro Brasil won 100 MHz of the 3.5 GHz frequency band. This band has national reach and is committed to taking 5G to municipalities with more than 30,000 inhabitants. In the same auction, the company also won the 2.3 GHz frequencies in the North, South, Midwest, São Paulo and Triângulo Mineiro regions and two blocks of 200 MHz National frequencies of 26 GHz. These licenses are valid until 2041 and are renewable.
Brasilia became the first city in Brazil to offer 5G connectivity in the 3.5 GHz band in July 2022. In 2022, Brazil’s 26 state capitals were approved for standalone 5G connectivity in 3.5 GHz.
Concessions
Claro Brasil holds two
fixed-line
concessions to provide domestic and international long-distance telephone services. The remaining telecommunications services provided by Claro Brasil are governed by a system of licenses instead of concession arrangements.
Concession Fees
Claro Brasil is required to pay a biennial fee after the first 15 year term of its PCS authorizations equal to 2.0% of net revenues from wireless services, except for the final year of the 15 year term of its PCS authorizations, in which the fee equals 1.0% of net revenues from wireless services.
Claro Brasil is also required to pay a biennial fee during the term of its domestic and international long-distance concessions equal to 2.0% of the revenues from long- distancelong-distance telephone services, net of taxes and social contributions, for the year preceding the payment.
Termination of Concessions
Our domestic and international long-distance
fixed-line
concessions provide that certain of our assets deemed “indispensable” for the provision of these services will revert to the Brazilian state upon termination of these concessions.
Compensation for those assets would be their depreciated cost. See Note 17 to our audited consolidated financial statements included in this annual report.
Regulation of Rates
Anatel regulates rates (tariffs and prices) for all telecommunications services, except for
fixed-line
broadband services, Pay TV and satellite capacity rates, which are not regulated. In general, PCS license holders and fixed local voice services license-holders are authorized to increase basic plan rates annually. Claro Brasil may set domestic long-distance and international long-distance and mobile rates freely, provided that it gives Anatel and the public advance notice.
Regulation of Wholesale Market Competition
In November 2012, Anatel approved the General Competition Plan (
Plano Geral de Metas da Competição
, or “PGMC”), a comprehensive regulatory framework aimed at increasing competition in the telecommunications sector. The PGMC imposes asymmetric measures upon economic groups determined by Anatel to have significant market power in any of the five (5) wholesale markets in the telecommunications sector, on the basis of several criteria, including having over 20.0% of market share in the applicable market.
In 2012, Claro Brasil and three of its primary competitors were determined to have significant market power in the mobile wireless termination and national roaming markets. As a result, Claro Brasil was required to reduce mobile termination rates to 75.0% of the 2013 rates by February 2014, and to 50.0% of the 2013 rates by February 2015. In July 2014, Anatel established termination rates for mobile services applicable to operators with significant market power through 2019, based on a cost model, and in December 2018, Anatel established termination rates for mobile services applicable to operators with significant market power from 2020 to 2023. These termination rates were revised by Anatel in February 2020. In March 2023, Anatel established the termination reference rates for mobile services applicable to operators with significant market power from 2024 to 2027. Claro Brasil is also required to publish its reference roaming prices for voice, data and SMS on an annual basis, among other measures. These prices must be related to the Anatel reference values and need to be approved by Anatel before they can take effect. The approval of new prices by Anatel took place in January 2021.November 2023.
In 2018, Anatel approved Claro Brasil’s most recent wholesale reference offers with respect to national roaming, telecommunications duct infrastructure, long-distance leased lines, high capacity transport above 34 Mbps, wireless networks interconnection, fixed network
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interconnection, internet network interconnection and internet links, which are reviewed and approved by Anatel on an annual basis. Anatel also reviews its determination of which operators have significant market power on a quadrennial basis. Anatel began its first review of all telecom operators in 2014 and published the most recent list of operators with significant market power for each of the relevant markets in 2018. In addition to the review, in 2018 Anatel changed some of the asymmetric measures applicable under the PGMC and added two new wholesale markets covering high capacity transport and fixed network interconnection. Anatel has determined that Claro Brasil has significant market power in eight wholesale markets.
Network Usage Fees and Fixed-Line Interconnection Rates
In July 2014, Anatel approved a resolution establishing the reference terms for fees charged by operators in connection with the use of their mobile network and leased lines and set
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a price cap on fees charged for fixed network usage by operators deemed to have significant market power. Such fees, based on costs of allocation services (
coubicación
), have been applicable since February 2016.
In December 2018,March 2023, Anatel published reference values for fees network that are applicable from 20202024 to 2023.2027.
Fixed-line operators determined by Anatel to have significant market power in the local
fixed-line
market may freely negotiate interconnection rates, subject to a price cap established by Anatel.
Other Obligations
Under applicable law and our concessions, Claro Brasil has an obligation to (i) comply with certain coverage obligations to ensure universal access to its
fixed-line
voice services, (ii) contribute to the funding of the country’s transition from analogue to digital TV (due to the acquisition of the 700 MHz frequency), (iii) meet
quality-of-service
targets and (iv) comply with applicable telecommunications services consumer rights.
In addition to the associated coverage obligations for the 3.5 GHz band, the winners will have to createcreated an entity (EAF) to clear the spectrum (migration of the parabolic TV signal), build a private communication network for the federal government of Brazil and install an optic fiber network in the North of Brazil. There are no coverage obligations for the 26 GHz band, but the winners will have to createcreated an entity (EACE) which will be responsible for meeting public schools’ connection needs as defined by Anatel, the Ministry of Communications and the Ministry of Education.
CADE Anti-Competition Proceeding
On March 9 2021, the General Superintendence atSeptember 13, 2023, the Administrative Council for Economic Defense (“CADE”)’s Tribunal issued a
non-binding
opinion recommendingits final ruling convicting and imposing the following fines against Claro Brasil (R$30.9 million), Oi Móvel S.A. (“Oi”) (R$53.6 million) and Telefônica Brasil S.A. (“Telefônica”, together with Claro Brasil and Oi, the “Defendants”) (R$28.3 million). The potential fines relate to a complaint filed by British Telecom do Brasil (“BT”) against the Defendants alleging, among other things, that, in connection with the formation of a consortia among them to participate in a public bid (
Rede Correios Consortium
), the Defendants (i) colluded to prevent competition between the leading players in the broadband internet services market in Brazil, which caused anti-competitive effects in the telecommunications sector and (ii) made it difficult for BT to participate in the bid through price discrimination tactics and by refusing to supply communication circuits (specifically, MPLS links) that were required for BT to participate in the bid. The case will be reviewed by CADE’s tribunal for aClaro Brasil is currently disputing the conviction and the final ruling and CADE’s final decision may be challengedfine applied in judicial courts. We intend to challenge the final decision if it is not in our favor. The amount of monetary penalty recommended by
the General Superintendence at CADE could be substantial, but we cannot reasonably estimate the range of possible loss related to the proceeding.court.
COLOMBIA
Legal Framework and Principal Regulatory Authorities
The Information and Communications Ministry (
Ministerio de Tecnologías de la Información y las Comunicaciones
, or “ICT Ministry”) and the Communications Regulatory Commission (
Comisión de Regulación de Comunicaciones
, or “CRC”) are responsible for overseeing and regulating the telecommunications sector. The main audiovisual regulatory authorities in Colombia with respect to Pay TV services are the CRC, the ICT Ministry and the Superintendency of Industry and Commerce Superintendence (Superintendencia(
Superintendencia de Industria y Comercio
, or “SIC”). ClaroOur Colombian subsidiary, Comunicación Celular S.A. (“Comcel”), is also subject to supervision by other government entities responsible for enforcing other regulations, such as antitrust rules or those protecting consumer rights.
Concessions
Comunicación Celular S.A. (“Comcel”)Comcel is qualified to provide fixed and mobile services and was included in the registry of networks and services administered by the ICT Ministry. Such general authorization superseded all of Comcel’s former concession contracts, and, consequently, such former concessions were terminated.
As a result of the termination of Comcel’s former concessions, the ICT Ministry and Comcel began discussions with respect to the liquidation of the agreements governing those concessions. In light of the decision of the Colombian Constitutional Court (
Corte Constitucional de Colombia
) holding that certain laws limiting the reversion of assets of telecommunications providers did not apply to concessions granted prior to 1998 and, consequently, that reversion of assets under those earlier concessions would be governed by their contractual terms, the ICT Ministry obtained a domestic award ordering Comcel to revert assets under its earlier concessions to the Colombian government. Comcel challenged such award and the Company filed an international arbitration claim against Colombia arising from Colombia’s measures. The international arbitration court overseeing this claim upheld the decision to grant the aforementioned domestic award.
 
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Licenses and Permits
Comcel holds licenses to provide mobile services in the spectrum frequency bands shown in the table below.
 
FREQUENCY
  
BANDWIDTH
  
TERMINATION DATE
850 MHz
  25 MHz  
Mar. 2024
(1)
1900 MHz
  10 MHz  Dec. 2039
  5 MHz  Oct. 2041
  15 MHz  Mar. 2024
2.5 GHz
  30 MHz  Aug. 2023
  10 MHz  Mar. 2040
  10 MHz  Mar. 2040
  10 MHz  Mar. 2040
700 MHz
  20 MHz  May 2040
(1)
  Comcel has initiated procedures that seek a
20-year
renewal of this license. The termination date of this license will be deemed extended until such time as the Colombian government renders a final decision on the renewal.
In 2013, Telmex Colombia S.A. obtained permission to provide Pay TV services under any available technology, pursuant to the ICT Ministry’s unified licensing system. On May 31, 2019, Telmex Colombia, S.A. merged into Comcel. The permission to provide Pay TV services granted in favor of Telmex Colombia, S.A. was simultaneously transferred to Comcel without modifications in connection with the merger. On July 30, 2019, Comcel’s permission to provide Pay TV was incorporated under Comcel’s general power to provide Pay TV granted to it under Law 1978 of 2019.
In 2017, the ICT Ministry issued a decree approving a higher cap on spectrum acquisitions by operators in low and high frequency bands. This new cap allows Comcel to participate in future spectrum auctions. TheIn June 2023, the ICT Ministry has released itsa plan to conduct spectrum auctions in the 700 MHz, 1900 MHz, and 2.5 GHz bands.and 3.5 GHz bands (the “2023 Auctions”). The final resolution containing the auctions’2023 Auctions’ terms and conditions was published by the ICT Ministry during the fourth quarterin October of 2019.2023. The auction2023 Auctions took place on December 20, 2019. A2023, with the following results: Comcel acquired 80 MHz in the 3.5 GHz frequency and 10 MHz in the 2500 MHz frequency; a subsidiary of Novator Partners LLP, a London-based private equity firm (the “Novator Subsidiary”)Telecall Colombia S.A.S., participated in the auctionparticipating as a new competitor in the market. The Novator Subsidiarymobile market, was granted a 20MHz80 MHz license to operate in the 700MHz frequency band3.5 GHz frequency; and three blocks of 10MHz for the 2,500MHz frequency band. Colombia Telecomunicaciones (Movistar) and Colombia Movil (Tigo) also participated in the auction. TigoTemporary Union (as defined below) was granted a 40MHz80 MHz license to operate in the 700MHz3.5 GHz frequency band. In October 2023, Comcel obtained a concession of 30 MHz and 2.500 MHz spectrum in Colombia Telecomunicaciones was not granted any licenses in the auction.
Subsequently, the Novator Subsidiary resigned and refusedfor a 20-year period for an amount of Ps.1,949,048. Additionally, during 2023, Comcel acquired indefeasible rights of use to exercise its rights under the license to operate one blockuse fiber optics for an amount of 10MHz for the 2,500MHz frequency band. As a consequence, on February 11, 2020, the ICT Ministry initiated an administrative proceeding to evaluate and decide on the effects caused by such resignation. Comcel was notified by the ICT Ministry and was considered an interested third partyPs.214,792.
In October 2023, the SIC approved the integration of Movistar’s and Tigo’s mobile networks and spectrum licenses, subject to certain conditions, including the reversion of spectrum exceeding the regulatory spectrum cap. The approved integration resulted in the administrative proceeding. The ICT Ministry imposedcreation of a sanctionnew entity, called NetCo, that will manage the integrated mobile network and spectrum, and the creation of 42 billion Colombian Pesos, approximately U.S. $12.3 million against Partners as a result of the aforementioned administrative proceeding.temporary union (
Unión Temporal
or “Temporary Union”) to which Movistar and Tigo will transfer their assigned spectrum licenses.
Asymmetric Charges
In January 2017, the Colombian government approved symmetrical access charges among established operators like Comcel, Movistar and Tigo. However, under current regulation, new market entrants continue to receive a higher interconnection rate than incumbent operators and pay lower national roaming fees, in both cases, for a limited period.
In 2017, the CRC issued a resolution updating the list of relevant telecommunication markets by adding the mobile services market (including bundled mobile voice and data services) and by also including the mobile service market in the list of relevant markets subject to
ex-ante
regulation. In connection with the mobile services market, on January 28, 2021, the CRC determined that COMCELComcel has a dominant position in the relevant mobile services market, but did not impose particular measures. COMCELComcel considers that the CRC did not take into account important elements in its determination, which COMCELComcel has challenged before the administrative courts of competent jurisdiction. The proceedingThis lawsuit was admitted by the administrative court, and we are waiting for the initial hearing and the probatory stage.
On September 8, 2023 the CRC initiated a process to evaluate the adoption of certain regulatory measures in order to promote competition in the mobile services market. On January 23, 2024 the CRC issued Resolution 7285, adopting several measures to promote competition in the mobile services market, including the following two measures applicable exclusively to providers holding a dominant position: (i) asymmetric charges in national roaming services; and (ii) the obligation to publish a reference offer for passive infrastructure sharing. Comcel is currently atevaluating legal alternatives to challenge the adoption of specific measures applicable solely to Comcel. Comcel considers that such measures were adopted pursuant to a mandatory conciliation stage.general regulation instead of a specific administrative procedure and thus prevent Comcel from exercising the rights of defense and due process that would have been afforded had the relevant measures been adopted pursuant to a specific administrative procedure.
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SOUTHERN CONE
ARGENTINA
The National Communications Agency (
Ente Nacional de Comunicaciones
, or “Enacom”“ENACOM”) is the main telecommunications regulatory authority in Argentina and became operational in 2016.
Fixed and mobile services providers are prohibited from providing DTH technology, which is currently the fastest way to provide Pay TV services. In 2017, the Argentine government issued a decree allowing telecommunications providers, including AMX Argentina S.A. (“AMX Argentina”), has a license with national scope to provide Pay TVinformation and communications technology (ICT) services. The license includes fixed and mobile telephone services, viainternet access, data transmission, pay cable within a limited numbertelevision, and value-added services, among other services. At the end of territories as of January 20182023, ENACOM authorized fixed and to the rest of the country as of January 2019. AMX Argentina has obtained the permissions necessarymobile service providers to provide Pay TVDTH technology for pay television services, via cable in accordance with the decree.which was previously prohibited.
AMX Argentina holds licenses to operate in the 700 MHz, 900 MHz, 1700/2100 MHz (AWS), 1900 MHz and 2600 MHz frequency bands, somebands. In October 2023, AMX Argentina participated in a 5G spectrum auction and was awarded a 100 MHz license to operate in the 3,300 to 3,400 MHz band (3.5 GHz band), for the provision of whichcommunications services, both fixed and mobile, and the deployment of 5G systems. Some of these authorizations expire in 15 or 20 years and some of whichothers have no expiration date. Each license also contains certain coverage parameters, reporting and service requirements and provides Enacomgrants ENACOM a right of revocation right upon ain the event of material breach of
non-compliance
with the license terms.
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All telecommunications providers in Argentina mustare required to contribute approximately 1.0% of their monthly revenues to finance the provision of telecommunications services into underserved areas and to underserved persons. All providers must also meet certain
quality-of-service quality of service requirements.
requirements.
In 2020, the government of Argentina issued decreeDecree 690/20 by which it declared information and communications technology (“ICT”)(ICT) services and access to telecommunications networks, for and between licensees of ICT services, as essential and strategic public services in competition. It also established that EnacomENACOM is the competent authority to approveestablish regulations on prices for ICT services and to establish regulations to that effect.
Inservices. To this end, in 2021, in accordance with the provisions of decree 690/20, EnacomENACOM established the conditions of a “compulsory“mandatory universal basic benefit” (“PBU”)(PBU), which must be provided under conditions of equality. This PBU covers pay TV,television, internet, fixed and mobile telephony services, and consists of basic plans for each of these services at affordable prices. It is aimed at a special segment of beneficiaries.
CHILE
The General Telecommunications Law (
Ley General de Telecomunicaciones
) establishes the legal framework for telecommunications services in Chile, including the regulation of concessions, permits, rates AMX Argentina has challenged Decree 690/20 and interconnection. The main regulatory agencyas of the telecommunications sector is the Chilean Transportation and Communications Ministry (
Ministerio de Transportes y Telecomunicaciones
), which acts primarily through the Undersecretarydate of Telecommunications (
Subsecretaría de Telecomunicaciones
, or “SUBTEL”).
Claro Chile S.A. (“Claro Chile”) holds concessions to provide mobile and
fixed-line
servicesthis annual report, Decree 690/20 has been suspended in the 700MHz, 850 MHz, 1900 MHz, 2.6 GHz, 3.4 GHz and 5.8 GHz frequency bands. Except for the concession to provide services in the 850 MHz frequency, which has an indefinite termination date, the concessions to provide services in the 700 MHz, 1900 MHz, 2.6 GHz, 3.4 GHz and 5.8 GHz frequencies have termination dates that vary from 2027 to 2045. In 2020, Claro Chile received a 10 MHz license from Movistar to operate in the 1900 MHz frequency band. In February 2021, as part of a public tender, Claro Chile S.A. was granted a concession of 400 MHz block, in the 26 GHz Band. Later, in May 2021, Claro Chile acquired a concession of 30 MHz spectrum block in the 3.5 GHz Band
(3.425-3.440MHz
y
3.525-3-525-3.540
MHz) from ENTEL.
Claro Chile also holds a license to provide DTH technology services until 2024 and a license with an indefinite term to provide Pay TV services. Some of Claro Chile’s concessions impose additional requirements, such as coverage, reportingits
effects and service quality requirements. The Chilean Transportation and Communications Ministry is authorizedapplication due to terminate any concession in the event of specified breaches under the terms of such concessions. Additionally, Claro Chile’s concession in the 700 MHz band imposes certain obligations to expand mobile and data services in rural areas. In 2017, the Undersecretary of Telecommunication approved Claro Chile’s expansion project in connection with its obligations under its concession in the 700 MHz band.several judicial precautionary measures issued by different courts.
In September 2021, Claro Chile S.A. and VTR,On January 29, 2024, pursuant to executive decree 89/2024, the executive branch of the Argentine government ordered a subsidiary
180-day
intervention of Liberty Latin America Ltd., announcedENACOM to investigate its performance as Argentina’s telecommunications regulatory authority, subject to extensions. To date, no measures resulting from the beginninginvestigation have been reported. We cannot predict whether any measures taken pursuant to the investigation of a process to form an independent and permanent economic agent (Joint Venture) with the purpose of merging their telecommunications industryENACOM would affect our operations in Chile. In November 2021, the parties notified The National Economic Prosecutor’s Office (“FNE”) about this merger, which requires prior authorization of the FNE. The merger is currently in the first phase of investigation and analysis by the FNE.Argentina.
PARAGUAY
The National Telecommunications Commission of Paraguay (
Comisión Nacional de Telecomunicaciones de Paraguay
, or “CONATEL”) is in charge of supervisingresponsible for overseeing and regulating the telecommunications industry in Paraguay. It is authorized to cancel licenses in the event of specified breaches of the terms of a license.
AMX Paraguay, S.A. (“AMX Paraguay”) holds licenses to operate in the 1900 MHz and the 1700/2100 MHz bands.
The CONATEL is in the process of reviewing the renewal of the 1900 MHz band and the license for the 1700/2100 MHz band was renewed in August 2021. AMX Paraguay also holds a nationwide internet access and data transmission license. The license was renewed in November 2022 for another 5 years (until 2027). In addition, AMX Paraguay holds licenses to provide DTH services and cable TV services. The DTH License was renewed in March 2021 for another 5 years (until 2025). Additionally,The cable TV services license was renewed in January 2018, AMX Paraguay participated in a spectrum auction and was awarded a license to provide telecommunications services in the 700 MHz band. In November 2018, the Telecommunications Commission of Paraguay granted the renewal of spectrum license in the 1900 MHz band.July 2021 for another 10 years (until 2031). These licenses are renewable, subject to regulatory approval, and contain coverage, reporting and service requirements. CONATEL is vested with the authority to revoke licenses in the event of a material breach of the license terms.
In November 2019, the Telecommunications Commission of ParaguayCONATEL granted AMX Paraguay a license to provide internet access and data transmission services in the 3,500 MHz frequency band, effective untilwhich expired on January 12, 2024.
According to the National Frequency Allocation Plan, this license cannot be renewed and the National Frequency Allocation Plan stipulates that the spectral margin between the 3400 MHz and 3700 MHz frequency bands must be allocated to 5G technology services. The Paraguayan government plans to initiate an auction for the 3500 MHz band in the latter half of 2024.
In addition, AMX Paraguay has a license to provide cellular mobile telephone services, internet access and data transmission in the 700 MHz band, which was renewed in February 2024 for an additional period of five years.
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URUGUAY
The Regulatory Unit of Communications Services (
Unidad Reguladora de Servicios de Comunicaciones
, or “URSEC”) is in charge of the regulation of the telecommunications industry in Uruguay.
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AM Wireless Uruguay, S.A. (“AM Wireless Uruguay”) holds licenses to operate in the 1900 MHz, 1700/2100 MHz and 700 MHz, and 3300/3400 MHz frequency bands that expirebands. The 1900 MHz band expires in 2024 for its 30 MHz
sub-band
and in 2033 for its 20 MHz
sub-band.
The 1700/2100 MHz band expires in 2033 for the 20 MHz
sub-band
acquired in 2013, 2037 2039for the 20 MHz
sub-band
acquired in 2017 and 2045. Additionally, AM Wireless Uruguay holds an authorization to do a trial2045 for 5Gthe 25 MHz
sub-band.
The 3300/3400 MHz band expires in 2048 and the 26, 50 GHz – 26, 85 GHz frequency700 MHz band that expires on July 2021.in 2037. In 2021, AM Wireless Uruguay obtained a “Class C” license, which enables it to provide internet services using fixed or wireless connections to authorized telecommunications companies. Telstar S.A. holds licenses to provide international long-distance communications and international and national data services that have no expiration date.
On August 31, 2020, Multicanal S.A. (“Multicanal”), initiated a judicial procedure against the executive branch of the Uruguayan government for alleged interference in the 2019 public auction for Multicanal’s assigned frequencies and sought to annul the assignment of the 1700/2100MHz, 1800 MHz and 2600 MHz frequency bands. Multicanal obtained a declaration of nullity of actions of the executive branch of the Uruguayan government that assigned the frequencies (including AM Wireless Uruguay’s 1765/1775 MHz and 2165/2175 MHz frequency bands). As of the date of this annual report, the frequencies assigned to the operators have not been returned or
re-auctioned.
In the event a
re-auction
takes place, AM Wireless Uruguay may challenge the declaration of nullity and seek compensatory and other damages.
Regarding the license granted in 1900 MHz, on November 29, 2022, the executive branch issued Decree 377/022, which provided for the renewal of spectrum in the 1900 MHz band (specifically,
sub-blocks
1895 to 1910 MHz and 1975 to 1990 MHz), which is set to expire in July 2024, for the same term and price. The renewal will expire in 2044 and is expected to cost U.S.$18,120 million.
The license initially granted to Flimay S.A. (“Flimay”) to provide DTH technology services in Uruguay has been contested by the government since 2012. In 2017, the executive branch of Uruguay held under a new ruling that Flimay does not have a valid license to provide DTH services in the country. In February 2022, the administrative court issued a ruling (36/2022) stating that the administrative act that revoked Flimay’s license should
be annulled, and the license should be restored. On December 2022, we presented a note to URSEC requesting that they adopt the necessary operations to issue the D license to Flimay. On July 20, 2023, Flimay requested this ruling be voided, but in February 2018,technical approval from URSEC for the executive branch of Uruguay, with support from the Administrative Court (“TCA”), requested the process be closed. Asuse of the date of this annual report, a decision on Flimay’s appealD license in connection with DTH technology service. The approval is pending.still in process.
In July 2020, the Consideration Law (
Ley de Urgente Consideración
) No. 19,889 was enacted, and pursuant to articles 471 through 476, established a number portability regime for mobile services. In January 2021 Decree No. 26 approved the regulation of the portability system.
In November 2021, the Accountability Law (
Ley de Rendición de Cuentas
) was enacted, whereby URSEC´s antitrust practices competencies were transferred to the Antitrust Commission (
Comisión de Promoción y Defensa de la Competencia
).
Notwithstanding the foregoing, URSEC remains competent to hold hearings on and authorize mergers and acquisitions of telecommunications licenses.
In November 2023, Decree 324/023 was enacted. The decree requires operators to block online sporting events that are being illegally transmitted in violation of intellectual property rights. As of December 31, 2023, this decree has not gone into effect. The Uruguayan government is coordinating a working group to facilitate the implementation of the decree.
ANDEAN REGION
ECUADOR
The primary regulatory authorities for our mobile and
fixed-line
operations are the National Telecommunications, Regulation and Control Agency (
Agencia de Regulación y Control de las Telecomunicaciones
, or “Arcotel”) and the Telecommunications and Information Society Ministry (
Ministerio de Telecomunicaciones y Sociedad de la Información
, or “Mintel”). Arcotel is responsible for the licensing and oversight of radio-electric spectrum use and telecommunications services provisions. Mintel is responsible for the promotion of equal access to telecommunications services.
The Telecommunications Law (
Ley Orgánica de Telecomunicaciones
), adopted in 2015, serves as the legal framework for telecommunications services. It established regulations for operators with significant market power based on their gross
incomes
as well as additional fees also based on an operator’s gross income, but that can vary depending on the size of their market share.
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Consorcio Ecuatoriano de Telecomunicaciones, S.A. (“Conecel”) has a significant percentage of users in the advanced wireless services market, and therefore iswas obliged to make fee payments on its income pursuant to the Telecommunications Law.
Conecel paid to the Ecuadorian government U.S. $17.6$23 million, which corresponds to 3.0% of its wireless service revenues generated in the 2021.2022. An arbitration proceeding to partially void the payment by Conecel of such fees was conducted and a decision in favor of the government was reached. Conecel has appealed this decision and, as of the date of this annual report, a decision of the Constitutional Court is pending. However, the Law for Economic Development and Sustainability after the
COVID-19
Pandemic (
Ley Orgánica para el Desarrollo Económico y Sostenibilidad Fiscal tras la Pandemia
COVID-19
) issued on November 29, 2021 eliminates the regulation (Article 34) of the Telecommunications Law that required Conecel to make quarterly payments on its income. This elimination will becomebecame effective as ofon January 1, 2023.
Conecel holds concessions to operate in the 850MHz, 1900 MHz and AWS bands, which include concessions for PCS that were supposed to expire in August 2023. Negotiations for the renewal of the PCS concession remain ongoing, and the Ecuadorian government granted an extension of Conecel’s spectrum concessions that remains valid while the negotiations continue. The PCS concession contains
quality-of-service
requirements for successful call completions, SMS delivery times, customer service, geographic coverage and other service conditions. The renewal of the PCS concession is in the process of negotiation with the Ecuadorian government.
Conecel also holds licenses to provide Pay TV Services (through DTH technology), bearer services, and internet services, expiring in 2023,2038, 2032 and 2036, respectively.
Conecel also holds a concession to offer
fixed-line
voice as well as a license to provide Pay TV (through HFC technology) that expires in 2032 and 2031, respectively.
On March 15, 2021, the Superintendence of Companies (
Superintendencia de Compañías
), approved the division of CONECEL, which was duly registered on April 8, 2021. This division resulted in the creation of a new company named Sites Ecuador
(Ecu-Sites)
S.A.S. The new company is now the owner of most of the towers which used to belong to CONECEL, and its core business is to provide tower services to other companies. Most of these towers services are provided to CONECEL.
80

On May 18, 2021 the Telecommunications Authority dictatedissued a resolution that grants CONECELConecel a concession to provide submarine cable services for a period of 20 years.
Recalculation of Concession Fees
Arcotel initiated several proceedings to recalculate the variable portion of the concession fees payable under Conecel’s concessions, which, as of the date of this annual report, is equivalent to 2.93% of Conecel’s annual subscriber base revenues, in addition to its contribution for Universal Service (
Servicio Universal 1%
), both for the periods from 2017 to 2019. TheseThe recalculation proceedings with Arcotel remainproceeding for 2.93% of Conecel’s annual subscriber base revenues remains ongoing.
In 2018, in addition to the variable portion of the concession, Conecel paid to Arcotel U.S.$11.9 million based on its annual revenues for the 2015 period and was required to pay U.S.$13 million based on its annual revenues for the 2016 period.
The recalculation proceedings mentioned in this section were disputed with Arcotel in arbitration. On April 17, 2020, thean arbitration court from the International Arbitration and Mediation Center (
Centro Internacional de Arbitraje y Mediación
, or “CIAM”) issued its resolution which was favorable for Conecel. Arcotel was ordered to pay Conecel U.S.$32.4 million plus interest for the periods between 2009 and 2015.
OnNotwithstanding the foregoing, on January 15, 2021, the Provincial Court of Justice accepted Arcotel´s request to nullify the resolution issued by the arbitration court, thereby declaring it null. However, theThe annulment of the resolution has not ended the dispute with Arcotel. A new arbitration court must issuefrom CIAM reviewed the resolution, and on March 8, 2023, issued a new resolution. Atarbitration award in favor of Conecel. Arcotel is again requesting to nullify the same timesecond award in the Provincial Court of Justice. As of December 31, 2023, this dispute is ongoing. Conecel enforced its rights in this matter by presenting an Extraordinary Action for Protection before the Constitutional Court for the violation of its rights.rights, which is still pending resolution.
Decrease in Monthly Fees For its Universal Service contribution, Conecel was requiredUse of Spectrum
In December 2022, Arcotel released a new regulation aimed at decreasing the monthly fees for use of spectrum. This decrease became effective as of January 2023. According to pay U.S.$5 million forthis regulation, the 2015 periodmonthly fees will start decreasing by up to 47% in 2023, 58% in 2024, 69% in 2025 and U.S.$6 million for the 2016 period. On December 17, 2021, Conocel obtained a final judicial order that suspended definitely the collection process for the 2015 and 2016 periods. This is a final and
non-appealable79% in 2026.
decision.
PERU
The Supervisory Agency for Private Investment in Telecommunication (
Organismo Supervisor de la Inversión Privada en Telecomunicaciones
, or “OSIPTEL”) is in charge of the regulation of the telecommunications industry in Peru. The Ministry of Transport and Communications (
Ministerio de Transportes y Comunicaciones
, or “MTC”) grants concessions, permits and licenses. The Telecommunications Law (
Decreto Supremo N
°
013-93-TCC
Ley de Telecomunicaciones
), adopted in 1993, serves as the legal framework for telecommunications services.
América Móvil Perú, S.A.C. (“Claro Perú”) holds nationwide concessions to provide wireless, PCS,
fixed-line,
local wholesale, domestic and international long-distance, Pay TV services (through DTH and HFC technologies), public telephone and value-added services (including internet access). The concessions allow Claro Perú to operate on the 450 MHz, 700 MHz, 850 MHz, 1900 MHz, 3.5 GHz and 10.5 GHz bands. As part of Claro Perú’s acquisition of Olo del Perú S.A.C., TVS Wireless
88


S.A.C. and their respective subsidiaries in 2016, Claro Perú hashad a resale agreement with such companies to operate in certain regions on the 2.5 GHz band.
Spectrum reframing is the process conducted by the MTC to properly order the assignment of a frequency band in order to have continuous coverage nationwide and adequate bandwidth. The MTC issued the final decision on the spectrum reframing for the 2.5 GhzGHz band, granting 80 MhzMHz to TVS Wireless, S.A.C. (Lima and Callao) and Olo del Peru, S.A.C. (rest of the country). In 2021 and 2022, our subsidiaries Olo del Peru and TVS Wireless were merged into Claro Perú with 2.5 GHz spectrum and all licenses previously granted to such subsidiaries transferred to Claro Perú.
Each of the concessions was awarded by the MTC and covers a
20-year
period. The concessions contain coverage, reporting, service requirement and spectral efficiency goals. The MTC is authorized to cancel any of the concessions in the case of specified breaches of its terms. Renewal of the 1900 MHz and 3.5 GHz concessions is ongoing and the MTC’s decision is pending.
EUROPE AND OTHER JURISDICTIONS
European Legal Framework and Principal Regulatory Authorities
The telecommunications regulatory framework in the EU is based on the European Electronic Communications Code (“EECC”)(EECC) that is currently in the process of being transposed into national laws for all EU member states. Austria, Bulgaria, Croatia and Slovenia are EU member states. North Macedonia and Serbia, candidates for accession to the EU, are expected to gradually harmonize their regulatory frameworks with the EU’s framework.
In each European country in which we operate, we are also subject to a domestic telecommunications regulatory framework and to oversight by one or more local regulators.
Licenses
 
COUNTRY
FREQUENCY
TERMINATION DATE
AUSTRIA
800 MHz2029
900 MHz2034
1500 MHz2044
1800 MHz2034
2100 MHz2044
2600 MHz2026
3500 MHz2039
 COUNTRY
  
FREQUENCY
  
TERMINATION DATE
AUSTRIA
  800 MHz  2029
  900 MHz  2034
  2034  2044
  1800 MHz  2034
  1800 MHz  2034
  2100 MHz  2044
  2600 MHz  2026
  3500 MHz  2039
BELARUS
  900 MHz  Not applicable
  1800 MHz  Not applicable
  2100 MHz  Not applicable
BULGARIA
  700 MHz  2038
  800 MHz  2038
  900 MHz  2024
  1800 MHz  2024
  2100 MHz  2025
  3500 MHz  2041
  26000 MHz  2042
CROATIA
  700 MHz  2036
  800 MHz  2024
  900 MHz  2024
  1800 MHz  2024
  2100 MHz  2024
  3500 MHz  2036
  26000 MHz  2036
NORTH MACEDONIA
  800 MHz  2033
  900 MHz  2028
  1800 MHz  2033
  2100 MHz  2028
SERBIA
  800 MHz  2026
  900 MHz  2026
  1800 MHz  2026
  2100 MHz  2026
SLOVENIA
  700 MHz  2036
  800 MHz  2029
  900 MHz  2031
  1500 MHz  2036
  1800 MHz  2031
  2100 MHz  2036
  2600 MHz  2029
  3500 MHz  2036
  26000 MHz  2029
 
8189

COUNTRY
FREQUENCY
TERMINATION DATE
BELARUS
900 MHzNot applicable
1800 MHzNot applicable
2100 MHzNot applicable
BULGARIA
900 MHz2024
1800 MHz2024
2100 MHz2025
3500 MHz2041
CROATIA
700 MHz2036
800 MHz2024
900 MHz2024
1800 MHz2024
2100 MHz2024
3500 MHz2036
26000 MHz2036
NORTH MACEDONIA
800 MHz2033
900 MHz2023
1800 MHz2033
2100 MHz2028
COUNTRY
FREQUENCY
TERMINATION DATE
SERBIA
800 MHz2026
900 MHz2026
1800 MHz2026
2100 MHz2026
SLOVENIA
700 MHz2036
800 MHz2029
900 MHz2031
1500 MHz2036
1800 MHz2031
2100 MHz2021
2600 MHz2029
3500 MHz2036
26000 MHz2029
 
OTHER JURISDICTIONS
 
COUNTRY
 
PRINCIPAL REGULATORY AUTHORITIES
 
CONCESSION AND LICENSES
COSTA RICA
 
Superintendency of TelecommunicationsTelecommunica- tions
(Superintendencia de Telecomunicaciones)Teleco-
municaciones)
Ministry of Science, Innovation, Technology and Telecommunications (
(Ministerio de Ciencia,
Innovación, Tecnología y TelecomunicacionesTelecomunicaciones)
)
 
•  Concessions of 70 MHz in the AWS and 18001800/2100 MHz bands that expire in 20322026
•  Concessions 30 MHz in the 1800/2100 MHz bandbands that expire in 20262033
•  License to operate Pay TV services using DTH technology that will expire in 2026
EL SALVADOR
 
Electricity and Telecommunications Superintendency (
(Superintendencia General de
Electricidad y TelecomunicacionesTelecomunicaciones)
)
 
•  Concession of 50 MHz in the 1900 MHz band of which 30 MHz that expire in 2038, 10 MHz that expire in 2041 and 10 MHz that expire in 2028
•  Concession to provide public telephone service that expires in 2027
•  Licenses to provide Pay TV Services through HFC and DTH technologies have an indefinite term
•  Concession of 40 MHz in 1700/2100 MHz bands (AWS) that will expire in 2040.
GUATEMALA
 
Guatemalan Telecommunications Agency (
(Superintendencia de TelecomunicacionesTelecomunicaciones)
)
 
•  Licenses (Frequencies Usufruct Rights) toRights of use of 12 MHz in the 900 MHz band, 120 MHz in the 1900 MHz band and 175 MHz in the 3.5 GHz band to provide all types of services that all expire in 2033 and were granted for2033.
•  Rights of use of 50 MHz in the provision700 MHz band to provide all types of any type of telecommunications service.services that expire in 2043.
•  License to provide Pay TV Services that expires in 2038.
NICARAGUA
 
Nicaraguan Telecommunications and Mailing Institute (
(Instituto Nicaragüense de
Telecomunicaciones y CorreosCorreos)
)
 
•  Concessions in the 700 MHz, 850 MHz, 1900 MHz and 1700/2100 MHz bands that all expire in 2042
•  Concession of 50 MHz in the 3.5 GHz band that will expire in 2042
•  Licenses to provide DTH technology that will expire in January 2028 and Pay TV services that has an indefinite term
HONDURAS
 
Honduran National Telecommunications Commission (
(Comisión Nacional de Telecomunicaciones)
Telecomunicaciones
)
 
•  Concessions to use 80 MHz in the 1900 MHz PCS band and 40 MHz in the
LTE-4G
1700/2100 MHz band that all expire in 2033
•  Licenses to operate Pay TV services through (i) HFC technology that will expire in 2027 and (ii) DTH technology that will expire in 2030
PANAMA
National Authority of Public Services (
Autoridad
Nacional de los Servicios Públicos
)
•  License to use 40 MHz in the 1900 MHz and 20 MHz in the 700 MHz bands that all expire in 2028
•  Licenses to provide fixed local and long-distance services that expire in 2030
82

COUNTRY
PRINCIPAL REGULATORY AUTHORITIES
CONCESSION AND LICENSES
•  License to provide internet service that expires in 2033
•  Licenses to provide international long-distance, value-added services, interactive television, and Pay TV service through DTH and IPTV technologies, which expire in 2028, 2030, 2037 and 2034, respectively
•  License to provide Pay TV service through optical fiber that expires in 2037.
•  License for data transportation, Service No. 200, which expires in 2023
DOMINICAN REPUBLIC
 
Dominican Institute of Telecommunications (
(Instituto Dominicano de las TelecomunicacionesTelecomunicaciones)
)
 
•  Concession to provide fixed and wireless services, internet and pay TV services through DTH and IPTV technologies that expire in 20302041
•  Licenses to use 25 MHz in the 800 MHz band, 30 MHz in the 1900 MHz band, 80 MHz in the 2.5/2.7 GHz band, 30100 MHz in the 3.5
3.3-3.4
GHz band and 40 MHz in the 1.7/2.1 GHz (AWS) band that expire in 20302041
PUERTO RICO
 Federal Communications Commission (FCC) and the Telecommunications Bureau of Puerto Rico 
•  Concessions to use the 700 MHz, 1900 MHz and the 28 GHz bandsband that expire in 2021 (currently pending renewal application extending to 2031), 2027 and 2029, respectively2029.
•  Concessions to use the 800700 MHz bandsband that expire in 2031.
•  Concessions to use the 850 MHz band that expire in 2026, 2028, 2030 and 2031.
•  Concessions to use the
AWS-1
and
AWS-3
bands (1.7/2.1 GHz)(1700/2100 MHz) band that expire in 2026 and 2028, respectively.2037.
•  Long-term transfer lease concessions to use the
AWS-1
(1700/2100 MHz) band that expire in 2027.
•  Concessions to use the
AWS-3
band (1700/2100 MHz) that expire in 2026 and 2028.
•  Concessions to use the 3.5 GHz band that expiresexpire in 2030.2031.
•  Long-term transfer lease concessions to use 35.6 MHz of the 2.5 GHz band that expire in 2022, 2023, 2025,in2025, 2026, 2030,2032 and 2030.2033.
•  Franchise to operate Pay TV services using IPTV technology that expireswill be terminated in 2030.2024.
 
8390

 

8491


 

85

 
Many of our employees are members of labor unions with which we conduct collective negotiations on wages, benefits and working conditions. We believe that we have good current relations with our workforce.
The following table sets forth the total number of employees and a breakdown of employees by main category of activity and geographic location, as of the dates indicated.
 
     
 
     
DECEMBER 31,
      
 
 
     
 
     
DECEMBER 31,
   ��  
 
 
 
    
2019
     
2020
     
2021
     
2021
     
2022
     
2023
 
 
NUMBER OF EMPLOYEES
     190,664      185,948      181,205 
NUMBER OF EMPLOYEES
NUMBER OF EMPLOYEES
NUMBER OF EMPLOYEES
    
 
177,713
 
    
 
176,014
 
    
 
176,083
 
 
CATEGORY OF ACTIVITY:
CATEGORY OF ACTIVITY:
CATEGORY OF ACTIVITY:
CATEGORY OF ACTIVITY:
    
 
    
 
    
 
    
 
    
 
    
 
 
Wireless
     82,232      72,501      72,098 
Wireless
Wireless
Wireless
     68,606      68,981      68,325 
 
Fixed
Fixed
Fixed
Fixed
     87,034      91,460      86,788      86,788      84,829      83,940 
 
Other businesses
     21,398      21,987      22,319 
Other businesses
Other businesses
Other businesses
     22,319      22,204      23,818 
 
GEOGRAPHIC LOCATION:
GEOGRAPHIC LOCATION:
GEOGRAPHIC LOCATION:
GEOGRAPHIC LOCATION:
    
 
    
 
    
 
    
 
    
 
    
 
 
Mexico
     89,539      88,172      87,233 
Mexico
Mexico
Mexico
     87,233      85,820      86,996 
 
South America
South America
South America
South America
     61,058      59,244      56,147      53,227      52,492      51,886 
 
Central America
     10,372      9,936      9,713 
Central America
Central America
Central America
     9,141      9,602      9,645 
 
Caribbean
Caribbean
Caribbean
Caribbean
     11,351      10,647      10,256      10,256      10,193      10,048 
 
Europe
     18,344      17,949      17,856 
Europe
Europe
Europe
     17,856      17,907      17,508 
 
 
 
In each of the countries in which we operate, we are party to various legal proceedings in the ordinary course of business.
These proceedings include tax, labor, antitrust, contractual matters and administrative and judicial proceedings concerning regulatory matters such as interconnection and tariffs. We are party to a number of proceedings regarding our compliance with administrative rules and regulations and concession standards.
Our material legal proceedings are described in Note 17 to our audited consolidated financial statements included in this annual report and in “Regulation” under Part VI of this annual report.
In each of the countries in which we operate, we are party to various legal proceedings in the ordinary course of business.
These proceedings include tax, labor, antitrust, contractual matters and administrative and judicial proceedings concerning regulatory matters such as interconnection and tariffs. We are party to a number of proceedings regarding our compliance with administrative rules and regulations and concession standards.
Our material legal proceedings are described in Note 17 to our audited consolidated financial statements included in this annual report and in “Regulation” under Part VI of this annual report.
 
8694

 
AUDIT AND
NON-AUDIT
FEES
The following table sets forth the fees billed to us and our subsidiaries by our independent registered public accounting firm, Mancera, during the fiscal years ended December 31, 20202022 and 2021:2023:
 
  
 
YEAR ENDED DECEMBER 31,
 
 
  
2022
     
2023
 
  
YEAR ENDED DECEMBER 31,
 
 
  
2020
   
2021
 
 
  (in millions of Mexican pesos)   (in millions of Mexican pesos)  
 
Audit fees
(1)
   Ps.     250    Ps.     267 
Audit fees
(1)
Audit fees
(1)
Audit fees
(1)
   Ps. 229      Ps. 202 
 
Audit-related fees
(2)
Audit-related fees
(2)
Audit-related fees
(2)
Audit-related fees
(2)
   10    23    9       13 
 
Tax fees
(3)
   19    13 
Tax fees
(3)
Tax fees
(3)
Tax fees
(3)
   14       11 
 
Total fees
  
 
Ps.     279
 
  
 
Ps.     303
 
(1)
Audit fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms in connection with the audit of our annual financial statements and statutory and regulatory audits.
(2)
Audit-related fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms for the review of reports on our operations submitted to IFT and attestation services that are not required by statute or regulation.
(3)
Tax fees represent fees billed by Mancera and its Ernst & Young Global affiliated firms for tax compliance services, tax planning services and tax advice services.
   
 
    
    
Total fees
Total fees
Total fees
  
 
Ps. 252
 
    
 
Ps. 226
 
(1)
Audit fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms in connection with the audit of our annual financial statements and statutory and regulatory audits.
(2)
Audit-related fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms for the review of reports on our operations submitted to IFT and attestation services that are not required by statute or regulation.
(3)
Tax fees represent fees billed by Mancera and its Ernst & Young Global affiliated firms for tax compliance services and tax advice services.
(1)
Audit fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms in connection with the audit of our annual financial statements and statutory and regulatory audits.
(2)
Audit-related fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms for the review of reports on our operations submitted to IFT and attestation services that are not required by statute or regulation.
(3)
Tax fees represent fees billed by Mancera and its Ernst & Young Global affiliated firms for tax compliance services and tax advice services.
    
    
    
AUDIT AND CORPORATE PRACTICES COMMITTEE APPROVAL POLICIES AND PROCEDURES
Our audit and corporate practices committee has established policies and procedures for the engagement of our independent auditors for services.
Our audit and corporate practices committee expressly approves any engagement of our independent auditors for audit or
non-audit
services provided to us or our subsidiaries. Prior to providing any service that requires specific
pre-approval,
our independent auditor and our Chief Financial Officer present to the audit committee a request for approval of services in which they confirm that the request complies with the applicable rules.
On March 19, 2024, the Board of Directors, with the favorable opinion of the Audit and Corporate Practices Committee, elected the firm “Deloitte” (Galaz, Yamakazi, Ruiz Urquiza, S.C.) as our independent registered public accounting firm for the fiscal years 2025, 2026 and 2027 and, therefore, Mancera, S.C., a member practice of Ernst & Young Global Limited (“EY”), will not continue acting as our independent registered public accounting firm upon completion of the 2024 audit. This decision considered various aspects, including the evaluation carried out by our management and Audit and Corporate Practices Committee of different independent registered public Accounting firms invited to a selection process initiated in 2023, including EY, as well as the corporate governance best practice consisting of independent registered public accounting firm periodic rotation.
The reports of EY in respect of the Company’s financial statements with accompanying notes for each of the years ended December 31, 2023 and 2022 did not contain an adverse opinion or a disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope or accounting principles.
During the years ended December 31, 2023 and 2022, and the subsequent interim periods, there were no disagreements (as that term is defined in Item 304(a)(1) (iv) of Regulation S-K promulgated by the Securities and Exchange Commission) with EY on any matters of accounting principles or practices, financial statement disclosure, or auditing scope and procedures, which disagreement(s), if not resolved to the satisfaction of EY would have caused EY to make reference to the matter in their reports on the Company’s financial statements for such years.
During the years ended December 31, 2023 and 2022, there were no “reportable events” within the meaning of Item 304(a)(1)(v) of Regulation S-K, except that EY issued an adverse opinion in their report on internal control over financial reporting as of December 31, 2023 and 2022 as a result of the material weakness in our Colombian subsidiary related to certain ineffective ITGCs.
 
95

 
We file reports, including annual reports on Form
20-F,
and other information with the SEC pursuant to the rules and regulations of the SEC that apply to foreign private issuers.
Any fillingsfilings we make electronically will be available to the public over the internet at the SEC’s web site at www.sec.gov and at our website at www.americamovil.com. This URL is intended to be an inactive textual reference only. It is not intended to be an active hyperlink to our website. The information on our website, which might be accessible through a hyperlink resulting from this URL, is not incorporated into this annual report.
8.1
4.2
 
8.1
  Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
12.1
 
  Certification pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
12.2
 
  Consent of independent registered public accounting firm.
13.1
 
  Inline XBRL Instance Document.
15.1
 
  Inline XBRL Taxonomy Extension Calculation Linkbase Document.
15.2
 
  Inline XBRL Taxonomy Extension Presentation Linkbase Document.
17.1
 
97.1
101.INS
 Inline XBRL Instance Document.
101.SCH
 Inline XBRL Taxonomy Extension Schema Document.
101.CAL
 Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB
 Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE
 Inline XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF
 Inline XBRL Taxonomy Extension Definition Document.
104
 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document).
Omitted from the exhibits filed with this annual report are certain instruments and agreements with respect to long-term debt of América Móvil, none of which, individually, authorizes securities in a total amount that exceeds 10% of the total assets of América Móvil. We hereby agree to furnish to the SEC copies of any such omitted instruments or agreements as the Commission requests.
 
8796

 
Some of the information contained or incorporated by reference in this annual report constitutes “forward-looking statements” within the meaning of the safe harbor provisions of the 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:
 
projections of our commercial, operating or financial performance, our financing, our capital structure or our other financial items or ratios;items;
 
statements of our plans, objectives or goals, including those relating to acquisitions, competition and rates;
 
statements concerning regulation or regulatory developments;
 
the impact of COVID-19;public health crises;
 
statements about our future economic performance or that of Mexico or other countries in which we operate;
 
competitive developments in the telecommunications sector;industry;
 
other factors and trends affecting the telecommunications industry generally and our financial condition in particular; and
statements of assumptions underlying the foregoing statements.
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- lookingforward-looking statements. These factors, some of which are discussed under “Risk Factors,” include the impact of the COVID-19 pandemic, economic and political conditions and government policies in Mexico, Brazil, Argentina, Colombia, Europe and elsewhere, inflation rates, exchange rates, regulatory developments, technological improvements, the impact of public health crises, customer demand and competition. We caution you that the foregoing list of factors is not exclusive and that other risks and uncertainties may cause actual results to differ materially from those in forward-looking statements. You should evaluate any statements made by us in light of these important factors.
Forward-looking statements speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.
 
8897


 
 ITEM 
  
FORM
20-F
CAPTION
  
LOCATION IN THIS REPORT
    
 PAGE 
1
  
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
  Not applicable    
2
  
OFFER STATISTICS AND EXPECTED TIMETABLE
  Not applicable    
3
  
KEY INFORMATION
      
  3A Selected financial data  Selected financial data    6
  3B Capitalization and indebtedness  Not applicable    
  3C Reasons for the offer and use of proceeds  Not applicable    
  3D Risk factors  Risk factors    39
4
  
INFORMATION ON THE COMPANY
      
  4A History and development of the Company  Information on the Company    9
    
Note 10–Property, Plant and
Equipment, net
    F-47
    Liquidity and capital resources    34
    Additional Information    93
  4B Business overview  Information on the Company    9
    Regulation    77
  4C Organizational structure  Exhibit 8.1    
  4D Property, plant and equipment  Information on the Company    9
    Note 10–Property Plant and Equipment, net    9
    Liquidity and capital resources    34
    Regulation    77
4A  Unresolved staff comments  None    
5
  
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
      
  5A Operating results  Services and Products    15
    Overview    24
    Results of operations    26
    Regulation    77
    Liquidity and capital resources    34
  5B Liquidity and capital resources  Note 14–Debt    F-63
  5C Research and development, patents and licenses, etc.  Not applicable    
  5D Trend information  Overview    24
    Results of operations    26
  5E Critical Accounting Estimates  Not applicable    
6
  
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
      
  6A Directors and senior management  Management    53
  6B Compensation  Management    66
  6C Board practices  Management    65
  6D Employees  Employees    94
  6E Share ownership  Major shareholders    53
    Management    63
  6F Disclosure of a registrant’s action to recover erroneously awarded compensation  Not applicable    
7
  
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
      
  7A Major shareholders  Major shareholders    53
  7B Related party transactions  Related party transactions    54
  7C Interests of experts and counsel  Not applicable    
8
  
FINANCIAL INFORMATION
      
  8A Consolidated statements and other financial information  Consolidated Financial Statements    103
    Dividends    55
    
Note 17–Commitments and
Contingencies
    F-71
  8B Significant changes  Not applicable    
 ITEM  
FORM
20-F
CAPTION
LOCATION IN THIS REPORT
    PAGE    
1
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not applicable
2
OFFER STATISTICS AND EXPECTED TIMETABLE
Not applicable
3
KEY INFORMATION
3A Selected financial dataSelected financial data6
3B Capitalization and indebtednessNot applicable
3C Reasons for the offer and use of proceedsNot applicable
3D Risk factorsRisk factors36
4
INFORMATION ON THE COMPANY
4A History and development of the CompanyInformation on the Company9
Note 10—Property, Plant and Equipment, netF-44
Liquidity and capital resources31
Additional Information85
4B Business overviewInformation on the Company9
Regulation70
4C Organizational structureExhibit 8.1
4D Property, plant and equipmentInformation on the Company9
Note 10—Property Plant and Equipment, netF-44
Liquidity and capital resources31
Regulation70
4A Unresolved staff commentsNone
5
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
5A Operating resultsOverview23
Results of operations25
Regulation70
Liquidity and capital resources31
5B Liquidity and capital resourcesNote 14—DebtF-56
5C Research and development, patents and licenses, etc.Not applicable
5D Trend informationOverview23
Results of operations25
5E Critical Accounting EstimatesNot applicable
6
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
6A Directors and senior managementManagement59
6B CompensationManagement59
6C Board practicesManagement59
Management59
6D EmployeesEmployees86
6E Share ownershipMajor shareholders49
Management59
7
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
7A Major shareholdersMajor shareholders49
7B Related party transactionsRelated party transactions50
7C Interests of experts and counselNot applicable
8
FINANCIAL INFORMATION
8A Consolidated statements and other financial informationConsolidated Financial Statements93
Dividends50
Note 17—Commitments and ContingenciesF-64
8B Significant changesNot applicable

8998


 ITEM 
  
FORM
20-F
CAPTION
  
LOCATION IN THIS REPORT
    
 PAGE 
9
  
THE OFFER AND LISTING
      
  9A Offer and listing details  Trading markets    55
  9B Plan of distribution  Not applicable    
  9C Markets  Trading markets    
55
  9D Selling shareholders  Not applicable    
  9E Dilution  Not applicable    
  9F Expenses of the issue  Not applicable    
10
  
ADDITIONAL INFORMATION
      
  10A Share Capital  Not applicable    
  10B Memorandum and articles of association  Bylaws    
55
  10C Material contracts  Information on the Company    
9
    Results of operations    
26
    Related party transactions    
54
    Regulation    77
  10D Exchange controls  Additional information    
93
  10E Taxation  Taxation of shares and ADSs    
57
  10F Dividends and paying agents  Not applicable    
  10G Statement by experts  Not applicable    
  10H Documents on display  Additional information    
93
  10I Subsidiary information  Not applicable    
  10J Annual report to security holders  Note applicable    
11
  
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  Risk management    
[  ]
    
Note 2 a)–Basis of Preparation of the
Consolidated Financial Statements and Summary of Significant Accounting Policies and Practices
    
F-11
12
  
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
      
  12A Debt securities  Not applicable    
  12B Warrants and rights  Not applicable    
  12C Other securities  Not applicable    
  12D American Depositary Shares  Bylaws    
55
13
  
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
  Not applicable    
14
  
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
  Not applicable    
15
  
CONTROLS AND PROCEDURES
  Controls and procedures    
69
16A
  
AUDIT COMMITTEE FINANCIAL EXPERT
  Management    
66
16B
  
CODE OF ETHICS
  Code of ethics    
75
16C
  
PRINCIPAL ACCOUNTANT FEES AND SERVICES
  Principal accountant fees and services    
95
16D
  
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
  Not applicable    
16E
  
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
  Purchases of equity securities by the issuer and affiliated purchasers    
56
16F
  
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT
  Not applicable    
16G
  
CORPORATE GOVERNANCE
  Corporate governance    
62
16H
  
MINE SAFETY DISCLOSURE
  Not applicable    
16I
  
DISCLOSURE REGARDING FOREIGN JURISDICATIONS THAT PREVENT INSPECTIONS
  Not applicable    
16J
  
INSIDER TRADING POLICIES
  Not applicable    
16K
  
CYBERSECURITY
  Cybersecurity    
73
17
  
FINANCIAL STATEMENTS
  Not applicable    
18
  
FINANCIAL STATEMENTS
  Consolidated Financial statements    
103
19
  
EXHIBITS
  Additional Information    
93
99


  ITEM  
  
FORM
20-F
CAPTION
  
LOCATION IN THIS REPORT
    
    PAGE    
9
  
THE OFFER AND LISTING
  
 
    
 
 
  
9A Offer and listing details
  Trading markets    51
 
  9B Plan of distribution  Not applicable    
 
  9C Markets  Trading markets    51
 
  9D Selling shareholders  Not applicable    
 
  9E Dilution  Not applicable    
 
  9F Expenses of the issue  Not applicable    
10
  
ADDITIONAL INFORMATION
  
 
    
 
 
  10A Share Capital  Not applicable    
 
  10B Memorandum and articles of association  Bylaws    51
 
  10C Material contracts  Information on the Company    9
 
  
 
  Results of operations    25
 
  
 
  Related party transactions    50
 
  
 
  Regulation    70
 
  10D Exchange controls  Additional information    85
 
  10E Taxation  Taxation of shares and ADSs    53
 
  10F Dividends and paying agents  Not applicable    
 
  10G Statement by experts  Not applicable    
 
  10H Documents on display  Additional information    85
 
  10I Subsidiary information  Not applicable    
11
  
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  Risk management    34
 
  
 
  Note 2 a)—Basis of Preparation of the Consolidated Financial Statements and Summary of Significant Accounting Policies and Practices    F-11
12
  
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
  
 
    
 
 
  12A Debt securities  Not applicable    
 
  12B Warrants and rights  Not applicable    
 
  12C Other securities  Not applicable    
 
  12D American Depositary Shares  Bylaws    51
13
  
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
  Not applicable    
14
  
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
  Not applicable    
15
  
CONTROLS AND PROCEDURES
  Controls and procedures    65
16A
  
AUDIT COMMITTEE FINANCIAL EXPERT
  Management    59
16B
  
CODE OF ETHICS
  Code of ethics    68
16C
  
PRINCIPAL ACCOUNTANT FEES AND SERVICES
  Principal accountant fees and services    87
16D
  
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
  Not applicable    
16E
  
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PUR- CHASERS
  Purchases of equity securities by the issuer and affiliated purchasers    52
16F
  
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT
  Not applicable    
16G
  
CORPORATE GOVERNANCE
  Corporate governance    63
16H
  
MINE SAFETY DISCLOSURE
  Not applicable    
16I
  
DISCLOSURE REGARDING FOREIGN JURISDICATIONS THAT PREVENT IN- SPECTIONS
  Not applicable    
17
  
FINANCIAL STATEMENTS
  Not applicable    
18
  
FINANCIAL STATEMENTS
  Consolidated Financial statements    93
19
  
EXHIBITS
  Additional Information    85
19
  
EXHIBITS
  Additional Information    

90

 
The registrant hereby certifies that it meets all of the requirements for filing on Form
20-F
and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.
Dated: April 29, 2022[29], 2024
AMÉRICA MÓVIL, S.A.B. DE C.V.
 
 By:
 
/s/ Carlos José García Moreno Elizondo
 Name:
 
Carlos José García Moreno Elizondo
 Title:
 
Chief Financial Officer
By:
 
/s/ Alejandro Cantú Jiménez
 Name:
 
Alejandro Cantú Jiménez
 Title:
 
General Counsel

 
91100

101


92



AMÉRICA MÓVIL, S.A.B. DE C.V.
AND
SUBSIDIARIES
Consolidated Financial Statements
Years Ended December 31, 2021, 2022 and 2023
with Report of Independent Registered Public Accounting Firm
F-1

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES
Consolidated Financial Statements
Years Ended December 
31 2019, 2020
, 2021, 2022 and 20212023
with Report of Independent Registered Public Accounting Firm

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES
Consolidated Financial Statements
Years Ended
December 
31,
2019
, 2020 and 2021
Contents:
 
   F-2 
Audited Consolidated Financial Statements:  
   F-6F-5 
   F-7F-6 
   F-8F-7 
   F-9F-8 
   F-10F-9 
Mancera, SC. (Member firm of Ernst & Young Global Limited)
Auditor firm ID: 01284
F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders
of
América Móvil, S.A.B. de C.V.
Opinion on the Financial Statements
We have audited the accompanying consolidated statements of financial position of América Móvil, S.A.B.S. A. B. de C.V.C. V. and its subsidiaries (the Company) as of December 31, 20212023 and 2020,2022, the related consolidated statements of comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2021,2023, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 20212023 and 2020,2022, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2021,2023, in conformity with International Financial Reporting Standards, as issued by the International Accounting Standards Board.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2021,2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated April
2
9
, 2022 29, 2024 expressed an unqualifiedadverse opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.U. S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our
F-2

opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
 
F-2

  
Deferred tax assets, realizability of Net Operating Loss Carryforwardsamounts related to net operating loss carryforwards and temporary differences related to employee benefits
Description of the Matter
  
As discussed in Note 13 to the consolidated financial statements, as of December 31, 2021,2023, the net balance of deferred tax assets was Ps.77,822,839Ps. 137,883,622 thousand. The Company has recognized deferred tax assets arising from net operating loss carryforwards (NOLs) of approximately Ps.24,449,622 thousand. The NOLs werePs. 36,970,123 thousand, of which Ps. 25,293,302 thousand was generated primarily by its subsidiary in Brazil.
In addition, the Company has recognized deferred tax assets of Ps. 34,663,794 thousand related to employee benefits, which are primarily related to one of its Mexican subsidiaries.
Auditing management’s assessment of the realizability of the deferred tax assets arising from Brazilian NOLs and the Mexican subsidiary’s employee benefits involved complex auditor judgement because management´smanagement’s estimate of realizability was based on assessing the probability,likelihood, timing and sufficiency of expected reversals of taxable temporary differences, future taxable profits and available tax planning opportunities. These projections are sensitive because they can be affected by future operating results and future market and economic conditions.
How We Addressed the Matter in Our Audit
  
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement related to the realizability of the deferred tax assets. We tested controls over management’s analyses of the future reversal of existing taxable temporary differences, their projections of future taxable income and related assumptions used in developing the projected financial information and their identification of available tax planning opportunities. Our audit also included the testing of controls that address the completeness and accuracy of the data utilizedused in the analysis.
To test the realizability of the deferred tax assets arising from NOLs our audit procedures included, among other things,others, the review of management´smanagement’s estimates of future taxable income, in Brazil, the methodology used, the significant assumptions and the underlying data used by the Company in developing the projected financial information, such as the weighted average cost of capital, customer attrition rates, growth rates, and other key assumptions by comparing them with historical, economic and industry trends and evaluating whether changes to the Company´sCompany’s business model and other factors would significantly affect the projected financial information. We also involved our valuation specialists to evaluate the analysis and assumptions used, and to test the calculations used by the Company.
In addition, with the assistance of our tax professionals, we assessed the application of relevant tax laws, including assessing the Company’s future tax planning opportunities, and tested the Company´s scheduling of the timing and amounts of expected reversals of taxable temporary differences.
We also assessed the adequacy of the related financial statement disclosures.
  
Impairment of goodwill
Description of the Matter
As discussed in Note 2 and Note 11 to the consolidated financial statements, as of December 31, 2021, the Company’s goodwill balance was Ps.136,578,194 thousand. The Company tests goodwill at least annually at the Cash Generating Unit (CGU) level. Impairment exists when the carrying value of a CGU exceeds its recoverable amount, which is the higher of its fair value less cost to sell and its
value-in-use.
The company has estimated the recoverable amount of the CGU by calculating the CGU value in use to test for impairment.
Auditing management´s annual assessment of impairment of goodwill involved complex auditor judgement because the estimations required to determine the
value-in-use
of the CGUs, including revenue growth rates, operating margins and weighted average cost of capital, are sensitive to, and affected by, expected economic factors, technological changes and market conditions, among other factors.
F-3

How We Addressed the Matter in Our Audit
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement related to the determination of the impairment of goodwill, including controls over management’s review of the significant assumptions described above, projected financial information and the valuation model used to develop such estimates.
To test the impairment of goodwill our audit procedures included, among others, evaluating the methodology used, testing the significant assumptions mentioned above and the underlying data used by the Company. We assessed the historical accuracy of management’s estimates and projections by comparing them to actual results and obtaining appropriate explanations for the variances; examined management’s support for the current estimates and projections by comparing them to industry and economic trends, including market participant data; evaluated management’s methodology on the estimation of the weighted average cost of capital reflecting the economic conditions for each CGU; tested the completeness and accuracy of the underlying data, and evaluated other factors that would significantly affect the projected financial information and thus the
value-in-use
of the CGUs.
In addition, we involved our valuation specialist to evaluate the methodologies and assumptions used and to test the calculations made by the Company.
We also assessed the adequacy of the related financial statement disclosures.
Discount rate used in determining defined benefit pension obligations in Mexico
Description of the Matter
  
As discussed in Note 2 item iii), q) and in Note 18 to the consolidated financial statements, as of December 31, 2021,2023, the defined benefit pension obligation balance was Ps.142,850,465Ps. 134,188,504 thousand. The Company assessed and updated its estimates and assumptions used to actuarially measure and value the defined benefit pension obligation as of December 31, 2021,2023, using the assistance of independent actuarial specialists.
F-3

Auditing the defined benefit pension obligation, for which the majority of itthe balance arises from one of itsthe Company’s subsidiaries in Mexico, and for which this matter is related, involved complex auditor judgement and required the involvement of our actuarial and valuation specialists because of the highly judgmental nature of the actuarial assumptions, primarily the discount rate used in the Company’s measurement process. This assumption was complex because it required a valuation of the credit quality of the corporate bonds used to develop the discount rate and the correlation of those bonds’ cash inflows to the timing and amount of future expected benefit payments.
How We Addressed the Matter in Our Audit
  
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement relating to the determination of the discount rate used in the defined benefit pension obligations calculations.calculation. We tested controls over management’s determination and review of the discount rate provided to the independent actuaries.
To test the determination of the discount rate of the defined benefit pension obligation we involved our valuation and actuarial specialists to assist us in evaluating the methodology used to select the yield curve applied on the calculation, assessing the credit quality of the corporate bonds that comprise the yield curve and the timing and amount of cash flows at maturity with the expected amounts and duration of the related benefit payments.
F-4

  
We also evaluated the objectivity and competence management´s qualified personsof management’s internal specialist responsible for overseeing the preparationdetermination of the discount rate and the independent actuarial specialists through the consideration of their professional qualifications, experience and their use of accepted methodology.
We also assessed the adequacy of the related financial statement disclosures.
/s/ Mancera, S.C.
A member of Ernst & Young Global
We have served as the Company’s auditor since 1993.
Mexico City, Mexico
April
2
9
,
2022 29, 2024
 
F-5F-4

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES
Consolidated Statements of Financial Position
(In thousands of Mexican pesos)
 
  Note 
At December 31,
 
 2020  
2021
  
2021
Millions

of U.S. dollars
 
Assets
              
Current assets:
              
Cash and cash equivalents
 3 Ps.35,917,907  
Ps.
38,679,891
 
 
US$
1,879
 
Equity investments at fair value through other comprehensive income (OCI) and other short-term investments
 4  50,096,051  
 
117,703,202
 
 
 
5,718
 
Accounts receivable:
              
Subscribers, distributors, recoverable taxes, contract assets and other, net
 5  207,977,954  
 
202,846,597
 
 
 
9,855
 
Related parties
 6  1,391,300  
 
1,158,611
 
 
 
56
 
Derivative financial instruments
 7  20,928,335  
 
10,130,806
 
 
 
492
 
Inventories, net
 8  30,377,439  
 
24,185,310
 
 
 
1,175
 
Other current assets, net
 9  8,993,907  
 
9,452,252
 
 
 
459
 
    
 
 
  
 
 
  
 
 
 
Total current assets
   Ps.355,682,893  
Ps.
404,156,669
 
 
US$
19,634
 
Non-current assets:
              
Property, plant and equipment, net
 10 Ps.722,929,631  
Ps.
731,196,679
 
 
US$
35,523
 
Intangibles, net
 11  133,456,967  
 
143,225,764
 
 
 
6,958
 
Goodwill
 11  143,052,859  
 
136,578,194
 
 
 
6,635
 
Investments in associated companies
    1,829,760  
 
3,052,481
 
 
 
148
 
Deferred income taxes
 13  115,370,240  
 
127,287,934
 
 
 
6,184
 
Accounts receivable, subscriber, distributors and contract assets, net
 5  7,792,863  
 
6,928,888
 
 
 
337
 
Other assets, net
 9  38,415,826  
 
39,956,090
 
 
 
1,941
 
Debt instruments
 at fair value through other comprehensive income (OCI)
 4  4,540,344  
 
6,894,757
 
 
 
335
 
Right-of-use assets
 15  101,976,844  
 
90,372,393
 
 
 
4,391
 
    
 
 
  
 
 
  
 
 
 
Total assets
   Ps.1,625,048,227  
Ps.
1,689,649,849
 
 
US$
82,086
 
    
 
 
  
 
 
  
 
 
 
Liabilities and equity
              
Current liabilities:
              
Short-term debt and current portion of long-term debt
 14 Ps.148,083,184  
Ps.
145,222,672
 
 
US$
7,055
 
Short-term liability related to right-of-use of assets
 15  25,067,905  
 
27,632,357
 
 
 
1,342
 
Accounts payable
 16a  186,995,472  
 
206,487,681
 
 
 
10,032
 
Accrued liabilities
 16b  50,291,851  
 
54,391,464
 
 
 
2,642
 
Income tax
 13  14,644,979  
 
33,247,318
 
 
 
1,615
 
Other taxes payable
    27,969,739  
 
26,278,007
 
 
 
1,277
 
Derivative financial instruments
 7  14,230,249  
 
10,034,508
 
 
 
488
 
Related parties
 6  3,999,916  
 
4,216,882
 
 
 
205
 
Deferred revenues
    36,027,383  
 
26,501,877
 
 
 
1,288
 
    
 
 
  
 
 
  
 
 
 
Total current liabilities
   Ps.507,310,678  
Ps.
534,012,766
 
 
US$
25,944
 
Non-current liabilities:
              
Long-term debt
 14 Ps.480,299,772  
Ps.
418,807,430
 
 
US$
20,347
 
Long-term liability related to right-of-use of assets
 15  84,259,336  
 
71,021,868
 
 
 
3,450
 
Deferred income taxes
 13  49,067,163  
 
49,465,095
 
 
 
2,403
 
Deferred revenues
    2,875,467  
 
2,698,276
 
 
 
131
 
Asset retirement obligations
 16c  17,887,991  
 
16,752,223
 
 
 
814
 
Employee benefits
 18  168,230,202  
 
142,850,465
 
 
 
6,940
 
    
 
 
  
 
 
  
 
 
 
Total non-current liabilities
   Ps.802,619,931  
Ps.
701,595,357
 
 
US$
34,085
 
    
 
 
  
 
 
  
 
 
 
Total liabilities
   Ps.1,309,930,609  
Ps.
1,235,608,123
 
 
US$
60,029
 
    
 
 
  
 
 
  
 
 
 
Equity:
              
Capital stock
 20 Ps.96,341,695  
Ps.
96,333,432
 
 
US$
4,680
 
Retained earnings:
              
Prior years
    267,865,420  
 
255,267,259
 
 
 
12,402
 
Profit for the year
    46,852,605  
 
192,423,167
 
 
 
9,348
 
    
 
 
  
 
 
  
 
 
 
Total retained earnings
    314,718,025  
 
447,690,426
 
 
 
21,750
 
Other comprehensive loss items
    (160,580,917 
 
(154,388,931
 
 
(7,502
    
 
 
  
 
 
  
 
 
 
Equity attributable to equity holders of the parent
    250,478,803  
 
389,634,927
 
 
 
18,928
 
Non-controlling interests
    64,638,815  
 
64,406,799
 
 
 
3,129
 
    
 
 
  
 
 
  
 
 
 
Total equity
    315,117,618  
 
454,041,726
 
 
 
22,057
 
    
 
 
  
 
 
  
 
 
 
Total liabilities and equity
   Ps.1,625,048,227  
Ps.
1,689,649,849
 
 
US$
82,086
 
    
 
 
  
 
 
  
 
 
 
  Note 
At December 31,
 
 2022  
2023
  
2023
Millions of
U.S. dollars
 
Assets
    
Current assets:    
Cash and cash equivalents 3 Ps.33,700,949  
Ps.
26,597,773
 
 
US$
1,574
 
Equity investments at fair value through other comprehensive income (OCI) and other short-term investments 4  88,428,111  
 
73,755,627
 
 
 
4,366
 
Accounts receivable:    
Subscribers, distributors, recoverable taxes, contract assets and other, net 5  199,424,202  
 
206,802,150
 
 
 
12,242
 
Related parties 6  2,287,213  
 
1,071,520
 
 
 
63
 
Derivative financial instruments 7  2,602,680  
 
1,446,034
 
 
 
86
 
Inventories, net 8  23,995,133  
 
19,271,625
 
 
 
1,141
 
Other current assets, net 9  10,565,422  
 
11,222,259
 
 
 
664
 
             
Total current assets  Ps.361,003,710  
Ps.
340,166,988
 
 
US$
20,136
 
Non-current
assets:
    
Property, plant and equipment, net 10 Ps.657,226,210  
Ps.
628,650,904
 
 
US$
37,213
 
Intangibles, net 11  128,893,422  
 
121,498,519
 
 
 
7,192
 
Goodwill 11  141,121,365  
 
146,078,897
 
 
 
8,647
 
Investments in associated companies 12b  23,975,462  
 
14,380,463
 
 
 
851
 
Deferred income taxes 13  128,717,811  
 
137,883,622
 
 
 
8,162
 
Accounts receivable, subscriber, distributors and contract assets, net 5  8,724,497  
 
9,400,123
 
 
 
556
 
Other assets, net 9  39,581,622  
 
37,643,712
 
 
 
2,228
 
Debt instruments at fair value through OCI 4  6,981,149  
 
14,914,412
 
 
 
883
 
Right-of-use
assets
 15  121,874,096  
 
113,568,320
 
 
 
6,723
 
             
Total assets  Ps.1,618,099,344  
Ps.
1,564,185,960
 
 
US$
92,591
 
             
Liabilities and equity
    
Current liabilities:    
Short-term debt and current portion of long-term debt 14 Ps.102,024,414  
Ps.
160,963,603
 
 
US$
9,528
 
Short-term liability related to
right-of-use
of assets
 15  32,902,237  
 
24,375,010
 
 
 
1,443
 
Accounts payable 16a  174,472,769  
 
162,097,416
 
 
 
9,595
 
Accrued liabilities 16b  56,815,331  
 
55,214,324
 
 
 
3,268
 
Income tax 13  29,174,066  
 
29,516,162
 
 
 
1,747
 
Other taxes payable   33,887,645  
 
40,082,150
 
 
 
2,373
 
Derivative financial instruments 7  25,331,346  
 
17,896,379
 
 
 
1,059
 
Related parties 6  7,224,218  
 
6,766,826
 
 
 
401
 
Deferred revenues   27,044,928  
 
27,494,667
 
 
 
1,628
 
             
Total current liabilities  Ps.488,876,954  
Ps.
524,406,537
 
 
US$
31,042
 
Non-current
liabilities:
    
Long-term debt 14 Ps.408,565,066  
Ps.
339,713,449
 
 
US$
20,109
 
Long-term liability related to
right-of-use
of assets
 15  101,246,574  
 
100,794,146
 
 
 
5,967
 
Deferred income taxes 13  30,302,060  
 
21,269,102
 
 
 
1,259
 
Deferred revenues   2,556,103  
 
2,666,273
 
 
 
158
 
Asset retirement obligations 16c  10,799,997  
 
10,117,928
 
 
 
599
 
Employee benefits 18  137,923,317  
 
143,516,143
 
 
 
8,495
 
             
Total
non-current
liabilities
  Ps.691,393,117  
Ps.
618,077,041
 
 
US$
36,587
 
             
Total liabilities  Ps.1,180,270,071  
Ps.
1,142,483,578
 
 
US$
67,629
 
             
Equity:    
Capital stock 20 Ps.95,365,329  
Ps.
95,362,024
 
 
US$
5,645
 
Retained earnings:    
Prior years   429,324,326  
 
469,543,111
 
 
 
27,794
 
Profit for the year   76,159,391  
 
76,110,617
 
 
 
4,505
 
             
Total retained earnings   505,483,717  
 
545,653,728
 
 
 
32,299
 
Other comprehensive loss items   (227,044,342 
 
(274,303,207
 
 
(16,237
             
Equity attributable to equity holders of the parent   373,804,704  
 
366,712,545
 
 
 
21,707
 
Non-controlling
interests
   64,024,569  
 
54,989,837
 
 
 
3,255
 
             
Total equity   437,829,273  
 
421,702,382
 
 
 
24,962
 
             
Total liabilities and equity  Ps.1,618,099,344  
Ps.
1,564,185,960
 
 
US$
92,591
 
             
The accompanying notes are an integral part of these consolidated financial statements.
 
F-
65
AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
(In thousands of Mexican pesos, except for earnings per share)
 
 Note 
For the years ended December 31
  Note 
For the years ended December 31
 
2019
(1)
 
2020
(1)
 
2021
 
2021
Millions of U.S.
dollars, except
for earnings
per share
  2021
(1)
 2022
(1)
 
2023
 
2023
Millions of U.S.
dollars, except
for earnings
per share
 
Operating revenues:
     
Service revenues
   
Ps
.
702,961,964  
Ps
.
708,483,701  
Ps
.
714,244,392
 
 
US$
34,700
 
  Ps.694,300,431  Ps.712,985,548  
Ps.
689,154,325
 
 
US$
40,794
 
Sales of equipment
    148,521,512   131,223,459  
 
141,290,479
 
 
 
6,864
 
   136,387,021   131,515,849  
 
126,858,519
 
 
 
7,509
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
   
Ps
.
851,483,476  Ps.839,707,160  
Ps
.
855,534,871
 
 
US$
41,564
 
 Ps.830,687,452  Ps.844,501,397  
Ps.
816,012,844
 
 
US$
48,303
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Operating costs and expenses:
          
Cost of sales and services
    348,776,249   334,881,859  
 
341,059,662
 
 
 
16,570
 
   328,510,002   330,532,450  
 
316,476,140
 
 
 
18,734
 
Commercial, administrative and general expenses
    195,507,880   191,901,898  
 
180,838,412
 
 
 
8,786
 
   173,579,745   179,454,030  
 
173,001,297
 
 
 
10,241
 
Other expenses
    5,882,276   4,737,626  
 
4,877,290
 
 
 
237
 
   4,738,463   5,010,379  
 
6,965,828
 
 
 
412
 
Depreciation and amortization
 9,10,11 and
15
  157,518,787   162,682,398  
 
162,626,866
 
 
 
7,901
 
 9,10,11 and
15
  156,302,992   158,633,786  
 
151,786,064
 
 
 
8,985
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
   
Ps
.
707,685,192  
Ps
.
694,203,781  
Ps
.
689,402,230
 
 
US$
33,494
 
 Ps.663,131,202  Ps.673,630,645  
Ps.
648,229,329
 
 
US$
38,372
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Operating income
   
Ps
.
143,798,284  
Ps
.
145,503,379  
Ps.
166,132,641
 
 
US$
8,070
 
  Ps.167,556,250  Ps.170,870,752  
Ps.
167,783,515
 
 
US$
9,931
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Interest income
    6,284,672   5,062,036  
 
3,834,827
 
 
 
186
 
   3,834,150   4,823,579  
 
9,628,340
 
 
 
570
 
Interest expense
    (37,910,954
  (38,661,485
 
 
(36,025,312
 
 
(1,750
   (35,738,305  (41,258,803 
 
(44,545,241
 
 
(2,637
Foreign currency exchange gain (loss), net
    5,226,071   (65,366,200
 
 
(17,045,843
 
 
(828
Foreign currency exchange (loss) gain, net
   (16,714,847  20,761,622  
 
14,653,523
 
 
 
867
 
Valuation of derivatives, interest cost from labor obligations and other financial items, net
 22  (6,997,844
  1,292,878  
 
(14,250,066
 
 
(692
 22  (14,243,517  (19,116,219 
 
(26,814,668
 
 
(1,586
Equity interest in net result of associated companies
    (17,609
  (287,006
 
 
113,918
 
 
 
6
 
   113,918   (1,811,432 
 
(5,371,824
 
 
(318
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Profit before income tax
    110,382,620   47,543,602  
 
102,760,165
 
 
 
4,992
 
   104,807,649   134,269,499  
 
115,333,645
 
 
 
6,827
 
Income tax
 13  49,914,055   13,509,270  
 
28,144,769
 
 
 
1,367
 
 13  32,717,477   46,044,089  
 
34,544,003
 
 
 
2,045
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Net profit for the year from continuing operations
   Ps.60,468,565  Ps.34,034,332  
Ps.
74,615,396
 
 
US$
3,625
 
  Ps.72,090,172  Ps.88,225,410  
Ps.
80,789,642
 
 
US$
4,782
 
Profit after tax for the year from discontinued operations
    9,844,889   16,992,625  
 
121,710,718
 
 
 
5,913
 
Profit (loss) after tax for the year from discontinued operations
 2, Ac  124,235,942   (6,719,015 
 
— 
 
 
 
— 
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Net profit for the year
   Ps.70,313,454  Ps.51,026,957  
Ps.
196,326,114
 
 
US$
9,538
 
  Ps.196,326,114  Ps.81,506,395  
Ps.
80,789,642
 
 
US$
4,782
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Net profit for the year attributable to:
          
Equity holders of the parent from continuing operations
   Ps.57,886,001  Ps.29,859,980  
Ps.
70,712,449
 
 
US$
3,435
 
 20 Ps.68,187,225  Ps.82,878,406  
Ps.
76,110,617
 
 
US$
4,505
 
Equity holders of the parent from discontinued operations
 2, Ac  9,844,889   16,992,625  
 
121,710,718
 
 
 
5,913
 
 2, Ac  124,235,942   (6,719,015 
 
— 
 
 
 
— 
 
Non-controlling interests
    2,582,564   4,174,352  
 
3,902,947
 
 
 
190
 
   3,902,947   5,347,004  
 
4,679,025
 
 
 
277
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
   Ps.70,313,454  Ps.51,026,957  
Ps.
196,326,114
 
 
US$
9,538
 
 Ps.196,326,114  Ps.81,506,395  
Ps.
80,789,642
 
 
US$
4,782
 
Basic and diluted earnings per share attributable to equity holders of the parent from continuing operations
 20 Ps.0.88  Ps.0.45  
Ps.
1.07
 
 
US$
0.05
 
 20 Ps.1.03  Ps.1.30  
Ps.
1.21
 
 
US$
0.07
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Basic and diluted earnings per share attributable to equity holders of the parent from discontinued operations
 20 Ps.0.15  Ps.0.26  
Ps.
1.85
 
 
US$
0.09
 
 20 Ps.1.88  Ps.(0.11 
Ps.
— 
  
US$
— 
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Other comprehensive income (loss) items:
          
Net other comprehensive loss that may be reclassified to profit or loss in subsequent years:
          
Other comprehensive income (loss):
Other comprehensive income (loss) that may be reclassified to profit or loss in subsequent years (net of tax):
Effect of translation of foreign entities from continuing operations
   Ps.(35,536,252
 Ps.(11,515,297 
Ps.
(7,134,153
 
US$
(347
  Ps.(7,134,153 Ps.(35,114,722 
Ps.
(41,548,455
 
US$
(2,459
Effect of translation of foreign entities from discontinued operations
    —     —    
 
(829,163
 
 
(40
   (829,163  5,193,281  
 
— 
 
 
 
— 
 
Items that will not be reclassified to (loss) or profit in subsequent years:
          
Items that will not be reclassified to profit (or loss) in subsequent years (net of tax):
Re-measurement of defined benefit plan, net of deferred taxes
    (29,535,672
  (10,299,558
 
 
11,261,896
 
 
 
547
 
   11,261,896   (4,305,716 
 
(3,769,565
 
 
(223
Unrealized (loss) gain on equity investments at fair value, net of deferred taxes
    883,409   (1,952,414
 
 
4,560,869
 
 
 
222
 
Unrealized gain (loss) on equity investments at fair value, net of deferred taxes
 4  4,560,869   (4,707,276 
 
(967,609
 
 
(57
Revaluation surplus, net of deferred taxes
    —     77,230,031  
 
0
  
 
 
 
0
  
 
   —    —   
 
868,456
 
 
 
51
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Total other comprehensive (loss) income items for the year, net of deferred taxes
 21  (64,188,515  53,462,762  
 
7,859,449
 
 
 
382
 
Total other comprehensive income (loss) items for the year, net of deferred taxes
 21  7,859,449   (38,934,433 
 
(45,417,173
 
 
(2,688
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Total comprehensive income for the year
   Ps.6,124,939  Ps.104,489,719  
Ps.
204,185,563
 
 
US$
9,920
 
  Ps.204,185,563  Ps.42,571,962  
Ps.
35,372,469
 
 
US$
2,094
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Comprehensive income for the year attributable to:
          
Equity holders of the parent from continuing operations
   Ps.5,450,679  Ps.86,150,118  
Ps.
202,418,502
 
 
US$
9,834
 
  Ps.202,418,502  Ps.40,959,024  
Ps.
34,578,854
 
 
US$
2,047
 
Non-controlling interests
    674,260   18,339,601  
 
1,767,061
 
 
 
86
 
   1,767,061   1,612,938  
 
793,615
 
 
 
47
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
   Ps.6,124,939  Ps.104,489,719  
Ps.
204,185,563
 
 
US$
9,920
 
 Ps.204,185,563  Ps.42,571,962  
Ps.
35,372,469
 
 
US$
2,094
 
Comprehensive income for the period:
          
Net comprehensive (loss) income from continuing operations
   Ps.(3,719,950
 Ps.87,497,094  
Ps.
82,474,845
 
 
US$
4,007
 
Net comprehensive income from discontinued operations
 2, Ac  9,844,889   16,992,625  
 
121,710,718
 
 
 
5,913
 
Net comprehensive income from continuing operations
  Ps.79,949,621  Ps.49,290,977  
Ps.
35,372,469
 
 
US$
2,094
 
Net comprehensive income (loss) from discontinued operations
 2, Ac  124,235,942   (6,719,015 
 
— 
 
 
 
— 
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
   Ps.6,124,939  Ps.104,489,719  
Ps.
204,185,563
 
 
US$
9,920
 
 Ps.204,185,563  Ps.42,571,962  
Ps.
35,372,469
 
 
US$
2,094
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
(1)
Restated for discontinuedDiscontinued operations.
The accompanying notes are an integral part of these consolidated financial statements.
 
F-
F-76

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES
Consolidated Statements of Changes in Shareholders’ Equity
For the years ended December 31, 2019, 20202021, 2022 and 20212023
(In thousands of Mexican pesos)
 
  
Capital
stock
  
Legal
reserve
  
Retained
earnings
  
Unrealized
(loss) gain on
equity
investment at
fair value
  
Re-measurement
of defined
benefit plans
  
Cumulative
translation
adjustment
  
Revaluation
surplus
  
Total equity
attributable to
equity holders
of the parent
  
Non-
controlling
interests
  
Total
equity
 
As of January 31, 2019
 Ps.96,338,378  Ps.358,440  Ps.236,897,045  Ps.(9,812,984 Ps.(74,427,934 Ps.(53,357,300 Ps.—    Ps.195,995,645  Ps.49,876,777  Ps.245,872,422 
Net profit for the year
  —     
—  
   67,730,890   —     —     —     —     67,730,890   2,582,564   70,313,454 
Unrealized gain on equity
investments at fair value, net of
deferred taxes
  —     
—  
   —     883,409   —     —     —     883,409   —     883,409 
Remeasurement of defined benefit
plan, net of deferred taxes
  —     
—  
   —     —     (29,153,554  —     —     (29,153,554  (382,118  (29,535,672
Effect of translation of foreign entities
  —     
—  
   —     —     —     (34,010,066  —     (34,010,066  (1,526,186  (35,536,252
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Comprehensive income (loss) for the
year
  —     
—  
   67,730,890   883,409   (29,153,554  (34,010,066  
—  
   5,450,679   674,260   6,124,939 
Dividends declared
  —     
—  
   (23,106,823  —     —     —     
—  
   (23,106,823  (1,473,290  (24,580,113
Repurchase of shares
  (116  
—  
   (427,212  —     —     —     
—  
   (427,328  —     (427,328
Other acquisitions of non-controlling
interests
  —     
—  
   (2,214  —     —     —     
—  
   (2,214  (80,841  (83,055
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Balance at December 31, 2019
 Ps.96,338,262  Ps.358,440  Ps.281,091,686  Ps.(8,929,575 Ps.(103,581,488 Ps.(87,367,366 Ps.—    Ps.177,909,959  Ps.48,996,906  Ps.226,906,865 
Net profit for the year
  —     
—  
   46,852,605   —     —     —     —     46,852,605   4,174,352   51,026,957 
Unrealized loss on equity investments
at fair value, net of deferred taxes
  —     
—  
   —     (1,952,414  —     —         (1,952,414  —     (1,952,414
Remeasurement of defined benefit plan, net of deferred taxes
  —     
—  
   —     —     (10,026,454  —     —     (10,026,454  (273,104  (10,299,558
Effect of translation of foreign entities
  —     —     —     —     —     (13,558,774  —     (13,558,774  2,043,477   (11,515,297
Revaluation surplus, net of deferred
taxes
  —     
—  
   —     —     —     —     64,835,155   64,835,155   12,394,876   77,230,031 
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Comprehensive income (loss) for the
year
  —     
—  
   46,852,605   (1,952,414  (10,026,454  (13,558,774  64,835,155   86,150,118   18,339,601   104,489,719 
Dividends declared
  —     
—  
   (25,161,564  —     —     —     —     (25,161,564  (1,860,300  (27,021,864
Stock dividend
  4,650   —     17,054,007   —     —     —     —     17,058,657   —     17,058,657 
Repurchase of shares
  (1,217  
—  
   (5,209,880  —     —     —     —     (5,211,097  —     (5,211,097
Other acquisitions of non-controlling interests
  —     
—  
   (267,270  —     —     —     —     (267,270  (837,392  (1,104,662
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Balance at December 31, 2020
 
Ps.
96,341,695
 
 
Ps.
358,440
 
 
Ps.
314,359,584
 
 
Ps.
(10,881,989
 
Ps.
(113,607,942
 
Ps.
(100,926,140
 
Ps.
64,835,155
  
Ps.
250,478,803
 
 
Ps.
64,638,815
 
 
Ps.
315,117,618
 
Net profit for the year
 
 
—  
 
 
 
—  
 
 
 
192,423,167
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
192,423,167
 
 
 
3,902,947
 
 
 
196,326,114
 
Unrealized gain on equity and debt investments at fair value, net of deferred taxes
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
4,560,869
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
4,560,869
 
 
 
—  
 
 
 
4,560,869
 
Remeasurement of defined benefit plan, net of deferred taxes
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
11,100,835
 
 
 
—  
 
 
 
—  
 
 
 
11,100,835
 
 
 
161,061
 
 
 
11,261,896
 
Effect of translation of foreign entities
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(2,514,992
 
 
(2,322,214
 
 
(4,837,206
 
 
(2,296,947
 
 
(7,134,153
Discontinued operations
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(829,163
 
 
—  
 
 
 
(829,163
 
 
—�� 
 
 
 
(829,163
Transfer of revaluation surplus
 
 
—  
 
 
 
—  
 
 
 
3,803,349
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(3,803,349
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Comprehensive income (loss) for the year
 
 
—  
 
 
 
—  
 
 
 
196,226,516
 
 
 
4,560,869
 
 
 
11,100,835
 
 
 
(3,344,155
 
 
(6,125,563
 
 
202,418,502
 
 
 
1,767,061
 
 
 
204,185,563
 
Dividends declared
 
 
—  
 
 
 
—  
 
 
 
(26,640,797
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(26,640,797
 
 
(1,919,674
 
 
(28,560,471
Repurchase of shares
 
 
(8,263
 
 
—  
 
 
 
(36,752,766
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(36,761,029
 
 
—  
 
 
 
(36,761,029
Other acquisitions of non-controlling interests
 
 
—  
 
 
 
—  
 
 
 
139,448
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
139,448
 
 
 
(79,403
 
 
60,045
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Balance at December 31, 2021
 
Ps.
96,333,432
 
 
Ps.
358,440
 
 
Ps.
447,331,985
 
 
Ps.
(6,321,120
 
Ps.
(102,507,107
 
Ps.
(104,270,295
 
Ps.
58,709,592
 
 
Ps.
389,634,927
 
 
Ps.
64,406,799
 
 
Ps.
454,041,726
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
  
Capital
stock
  
Legal
reserve

(Note 20)
  
Retained
earnings
  
Unrealized
loss on
equity
investment at
fair value
  
Re-measurement

of defined
benefit plans
  
Cumulative
translation
adjustment
  
Revaluation
surplus
  
Total equity
attributable to
equity holders
of the parent
  
Non-
controlling
interests
  
Total
equity
 
As of January 1, 2021
 Ps.96,341,695  Ps.358,440  Ps.314,359,584  Ps.(10,881,989 Ps.(113,607,942 Ps.(100,926,140 Ps.64,835,155 Ps.250,478,803  Ps.64,638,815  Ps.315,117,618 
Net profit for the year
  —    —    192,423,167   —    —    —    —    192,423,167   3,902,947   196,326,114 
Unrealized gain on equity investments at fair value, net of deferred taxes (Note 21)
  —    —    —    4,560,869   —    —    —    4,560,869   —    4,560,869 
Remeasurement of defined benefit plan, net of deferred taxes (Note 21)
  —    —    —    —    11,100,835   —    —    11,100,835   161,061   11,261,896 
Effect of translation of foreign entities (Note 21)
  —    —    —    —    —    (2,514,992  (2,322,214  (4,837,206  (2,296,947  (7,134,153
Discontinued operations (Note 21)
  —    —    —    —    —    (829,163  —    (829,163  —    (829,163
Transfer of assets’ revaluation surplus (Note 21)
  —    —    3,803,349   —    —    —    (3,803,349  —    —    —  
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Comprehensive income for the year
  —    —    196,226,516   4,560,869   11,100,835   (3,344,155  (6,125,563  202,418,502   1,767,061   204,185,563 
Dividends declared
  —    —    (26,640,797  —    —    —    —    (26,640,797  (1,919,674  (28,560,471
Repurchase of shares
  (8,263  —    (36,752,766  —    —    —    —    (36,761,029  —    (36,761,029
Other acquisitions of
non-controlling
interests
  —    —    139,448   —    —    —    —    139,448   (79,403  60,045 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Balance at December 31, 2021
 Ps.96,333,432  Ps.358,440  Ps.447,331,985  Ps.(6,321,120 Ps.(102,507,107 Ps.(104,270,295 Ps.58,709,592  Ps.389,634,927  Ps.64,406,799  Ps.454,041,726 
Net profit for the year
  —    —    76,159,391   —    —    —    —    76,159,391   5,347,004   81,506,395 
Unrealized loss on equity and debt investments at fair value, net of deferred taxes (Note 21)
  —    —    —    (4,707,276  —    —    —    (4,707,276  —    (4,707,276
Remeasurement of defined benefit plan, net of deferred taxes (Note 21)
  —    —    —    —    (4,599,407  —    —    (4,599,407  293,691   (4,305,716
Effect of translation of foreign entities (Note 21)
  —    —    —    —    —    (29,222,333  (1,864,632  (31,086,965  (4,027,757  (35,114,722
Discontinued operations (Note 21)
  —    —    —    —    —    5,193,281   —    5,193,281   —    5,193,281 
Transfer of assets’ revaluation surplus (Note 21)
  —    —    2,165,706   —    —    —    (2,165,706  —    —    —  
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Comprehensive income for the year
  —    —    78,325,097   (4,707,276  (4,599,407  (24,029,052  (4,030,338  40,959,024   1,612,938   42,571,962 
Dividends declared
  —    —    (28,000,073  —    —    —    —    (28,000,073  (1,880,736  (29,880,809
Repurchase of shares
  33,469   —    (26,234,786  —    —    —    —    (26,201,317  —    (26,201,317
Recycling of assets revaluation surplus by
spin-off,
net of deferred taxes
  —    —    35,289,339   —    —    —    (35,289,339  —    (79,806  (79,806
Spin-off
effects
  (1,001,572  —    (1,581,315  —    —    —    —    (2,582,887  —    (2,582,887
Other acquisitions of
non-controlling
interests
  —    —    (4,970  —    —    —    —    (4,970  (34,626  (39,596
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Balance at December 31, 2022
 
Ps.
95,365,329
 
 
Ps.
358,440
 
 
Ps.
505,125,277
 
 
Ps.
(11,028,396
 
Ps.
(107,106,514
 
Ps.
(128,299,347
 
Ps.
19,389,915
 
 
Ps.
373,804,704
 
 
Ps.
64,024,569
 
 
Ps.
437,829,273
 
Net profit for the year
 
 
— 
 
 
 
— 
 
 
 
76,110,617
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
76,110,617
 
 
 
4,679,025
 
 
 
80,789,642
 
Unrealized loss on equity and debt investments at fair value, net of deferred taxes (Note 21)
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
(967,609
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
(967,609
 
 
— 
 
 
 
(967,609
Remeasurement of defined benefit plan, net of deferred taxes (Note 21)
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
(3,662,102
 
 
— 
 
 
 
— 
 
 
 
(3,662,102
 
 
(107,463
 
 
(3,769,565
Effect of translation of foreign entities (Note 21)
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
(36,676,031
 
 
(723,649
 
 
(37,399,680
 
 
(4,148,775
 
 
(41,548,455
Revaluation surplus, net deferred taxes (Note 21)
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
497,628
 
 
 
497,628
 
 
 
370,828
 
 
 
868,456
 
Transfer of assets’ revaluation surplus (Note 21)
 
 
— 
 
 
 
— 
 
 
 
815,693
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
(815,693
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Comprehensive income for the year
 
 
— 
 
 
 
— 
 
 
 
76,926,310
 
 
 
(967,609
 
 
(3,662,102
 
 
(36,676,031
 
 
(1,041,714
 
 
34,578,854
 
 
 
793,615
 
 
 
35,372,469
 
Dividends declared
 
 
— 
 
 
 
— 
 
 
 
(28,946,819
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
(28,946,819
 
 
(1,965,529
 
 
(30,912,348
Repurchase of shares
 
 
(3,305
 
 
— 
 
 
 
(14,319,762
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
(14,323,067
 
 
— 
 
 
 
(14,323,067
Recycling of assets revaluation surplus related to Peru and the Dominican Republic’s sale of towers, net of deferred taxes
 
 
— 
 
 
 
— 
 
 
 
4,911,409
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
(4,911,409
 
 
— 
 
 
 
— 
 
 
 
— 
 
Other acquisitions of
non-controlling
interests
 
 
— 
 
 
 
— 
 
 
 
1,598,873
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
1,598,873
 
 
 
(7,862,818
 
 
(6,263,945
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Balance at December 31, 2023
 
Ps.
95,362,024
 
 
Ps.
358,440
 
 
Ps.
545,295,288
 
 
Ps.
(11,996,005
 
Ps.
(110,768,616
 
Ps.
(164,975,378
 
$
Ps.13,436,792
 
 
Ps.
366,712,545
 
 
Ps.
54,989,837
 
 
Ps.
421,702,382
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
The accompanying notes are an integral part of these consolidated financial statements.

 
F-
8
7

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands of Mexican pesos)
 
    
For the years ended December 31
 
  Note 
2019
(1)
  
2020
(1)
  
2021
  
2021
Millions of
U.S. dollars
 
Operating activities
     
Profit before income tax from continuing operations
   Ps.110,382,620  Ps.47,543,602  
Ps.
102,760,165
 
 
US$
4,992
 
Profit before income tax from discontinued operations
 2, Ac  10,964,368   19,849,507  
 
150,576,681
 
 
 
7,316
 
    
 
 
  
 
 
  
 
 
  
 
 
 
Profit before income tax
    121,346,988   67,393,109  
 
253,336,846
 
 
 
12,308
 
Items not requiring the use of cash:
      
Depreciation property, plant and equipment and right-of-use assets
 10 and 15  137,867,698   143,108,182  
 
139,211,403
 
 
 
6,763
 
Amortization of intangible and other assets
 9 and 11  19,651,089   19,574,216  
 
23,415,463
 
 
 
1,138
 
Equity interest in net (loss) income of associated companies
    17,609   287,006  
 
(113,918
 
 
(6
(Gain) Loss on sale of property, plant and equipment
    119,272   257,330  
 
(6,849,699
 
 
(333
Net period cost of labor obligations
 18  16,609,565   18,085,954  
 
18,688,374
 
 
 
908
 
Foreign currency exchange loss (income), net
    (7,250,635  59,923,928  
 
14,523,412
 
 
 
706
 
Interest income
    (6,284,672  (5,062,036 
 
(3,834,827
 
 
(186
Interest expense
    37,910,954   38,661,485  
 
36,025,312
 
 
 
1,750
 
Employee profit sharing
    1,618,695   2,066,066  
 
3,130,722
 
 
 
152
 
Gain
 
(Loss)
 
in
 
valuation
 
of
 
derivative
 
financial
 
instruments,
 
capitalized
 
interest
expense and other, net
    (9,202,167  (13,678,083 
 
5,246,476
 
 
 
255
 
Gain on net monetary positions
 22  (4,267,194  (3,262,512 
 
(4,876,842
 
 
(237
Gain on sale of subsidiary
 2, Ac  —     —    
 
(132,821,709
 
 
(6,453
Working capital changes:
      
Subscribers, distributors, recoverable taxes, contract assets and other, net
    7,422,351   3,189,136  
 
6,883,270
 
 
 
334
 
Prepaid expenses
    8,860,172   (160,082 
 
(890,729
 
 
(43
Related parties
    476,671   421,337  
 
449,655
 
 
 
22
 
Inventories
    (463,461  10,402,117  
 
5,756,325
 
 
 
280
 
Other assets
    (6,560,640  (2,650,867 
 
(9,802,727
 
 
(476
Employee benefits
    (20,224,276  (18,795,532 
 
(27,223,091
 
 
(1,323
Accounts payable and accrued liabilities
    (15,730,804  11,247,681  
 
9,946,257
 
 
 
483
 
Employee profit sharing paid
    (2,187,316  (2,436,223 
 
(1,922,029
 
 
(93
Financial instruments and other
    (1,774,932  2,606,938  
 
(1,664,465
 
 
(81
Deferred revenues
    1,237,894   1,958,553  
 
(9,257,456
 
 
(450
Interest received
    1,008,076   3,946,110  
 
2,665,854
 
 
 
130
 
In
come
 taxes paid
    (41,418,114  (61,366,231 
 
(60,535,903
 
 
(2,942
Cash flows from discontinued operating
    (4,504,355  5,109,961  
 
(1,304,336
 
 
(63
    
 
 
  
 
 
  
 
 
  
 
 
 
Net cash flows provided by continuing operating activities
   Ps.234,278,468  Ps.280,827,543  
Ps.
258,181,638
 
 
US$
12,543
 
    
 
 
  
 
 
  
 
 
  
 
 
 
Investing activities
      
Purchase of property, plant and equipment
    (132,834,246  (108,866,816 
 
(145,279,359
 
 
(7,058
Acquisition of intangibles
    (18,962,856  (20,647,571 
 
(12,791,580
 
 
(621
Dividends received
 22  1,773,336   2,122,826  
 
2,628,600
 
 
 
128
 
Proceeds from sale of plant, property and equipment
    344,924   162,060  
 
7,215,177
 
 
 
351
 
Acquisition of businesses, net of cash acquired
 12  (13,330,651  (152,896 
 
0  
  
 
0  
 
Partial sale of shares of associated company
    36,478   601,509  
 
199,158
 
 
 
10
 
Investments in associate companies
    (56,985  (64,341 
 
—  
  
 
—  
 
Sale of shares
    —     —    
 
75,518,886
 
 
 
3,669
 
Short-term investments
    —     (8,671,662 
 
(3,361,507
 
 
(163
Cash flows from discontinued investing
 2, Ac  (50,089  (40,602 
 
(650,319
 
 
(32
    
 
 
  
 
 
  
 
 
  
 
 
 
Net cash flows used in investing continuing activities
   Ps.(163,080,089 Ps.(135,557,493 
Ps.
(76,520,944
 
US$
(3,716
    
 
 
  
 
 
  
 
 
  
 
 
 
Financing activities
      
Loans obtained
    118,082,256   277,515,598  
 
93,675,127
 
 
 
4,551
 
Repayment of loans
    (109,808,816  (330,607,399 
 
(152,029,408
 
 
(7,388
Payment of liability related to right-of-use of assets
 15  (26,765,075  (29,623,565 
 
(30,544,750
 
 
(1,484
Interest paid
    (28,046,695  (28,421,734 
 
(23,884,410
 
 
(1,160
Repurchase of shares
    (435,713  (5,076,119 
 
(36,745,743
 
 
(1,785
Dividends paid
    (24,248,145  (9,592,253 
 
(27,829,345
 
 
(1,352
Acquisition of non-controlling interests
 12  (83,055  (1,104,662 
 
(7,720
 
 
—  
 
    
 
 
  
 
 
  
 
 
  
 
 
 
Net cash flows used in financing activities
   Ps.(71,305,243 Ps.(126,910,134 
Ps.
(177,366,249
 
US$
(8,618
    
 
 
  
 
 
  
 
 
  
 
 
 
Net (decrease) gain in cash and cash equivalents
   Ps.(106,864 Ps.18,359,916  
Ps.
4,294,445
 
 
US$
209
 
Adjustment to cash flows due to exchange rate fluctuations, net
    (1,807,442  (2,187,665 
 
(1,532,461
 
 
(74
Cash and cash equivalents at beginning of the year
    21,659,962   19,745,656  
 
35,917,907
 
 
 
1,744
 
    
 
 
  
 
 
  
 
 
  
 
 
 
Cash and cash equivalents at end of the year
   Ps.19,745,656  Ps.35,917,907  
Ps.
38,679,891
 
 
US$
1,879
 
    
 
 
  
 
 
  
 
 
  
 
 
 
Non-cash transactions related to:
      
Acquisitions of property, plant and equipment in accounts payable at end year
   Ps.19,673,706  Ps.3,063,081  
Ps.
18,385,498
 
 
US$
893
 
Revaluation surplus
    —     107,152,628  
 
—  
 
 
 
—  
 
    
 
 
  
 
 
  
 
 
  
 
 
 
Non-cash transactions
   Ps.19,673,706  Ps.110,215,709  
Ps.
18,385,498
 
 
US$
893
 
    
 
 
  
 
 
  
 
 
  
 
 
 
    
For the years ended December 31
 
  Note 2021
(1)
  2022
(1)
  
2023
  
2023
Millions of
U.S. dollars
 
Operating activities
     
Profit before income tax from continuing operations
  Ps.104,807,649  Ps.134,269,499  
Ps.
115,333,645
 
 
US$
6,827
 
Profit (loss) before income tax from discontinued operations
 2, Ac  148,529,197   (8,524,516 
 
— 
 
 
 
— 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Profit before income tax
   253,336,846   125,744,983  
 
115,333,645
 
 
 
6,827
 
Items not requiring the use of cash:
     
Depreciation property, plant and equipment and
right-of-use
assets
 10 and 15  136,987,034   140,353,169  
 
133,818,176
 
 
 
7,921
 
Amortization of intangible and other assets
 9 and 11  19,315,958   18,280,617  
 
17,967,888
 
 
 
1,064
 
Equity interest in net result of associated companies
   (113,918  1,811,432  
 
5,371,824
 
 
 
318
 
(Gain) loss on sale of property, plant and equipment
   (6,849,699  935,644  
 
(5,055,264
 
 
(299
Net period cost of labor obligations
 18  18,688,374   15,979,152  
 
16,971,936
 
 
 
1,005
 
Foreign currency exchange loss (income), net
   14,192,416   (20,008,610 
 
(16,175,776
 
 
(958
Interest income
   (3,834,150  (4,823,579 
 
(9,628,340
 
 
(570
Interest expense
   35,738,305   41,258,803  
 
44,545,241
 
 
 
2,637
 
Employee profit sharing
   3,130,722   3,637,813  
 
3,938,274
 
 
 
233
 
Loss in valuation of derivative financial instruments, capitalized interest expense and other, net
   5,239,927   17,072,520  
 
4,623,029
 
 
 
274
 
Gain on net monetary positions
 22  (4,876,842  (11,538,061 
 
(9,321,480
 
 
(552
Gain on sale of subsidiary
 2, Ac  (132,821,709  (3,405,014 
 
— 
 
 
 
— 
 
Loss on deconsolidation of subsidiary
 12b  —    9,390,641  
 
— 
 
 
 
— 
 
Impairment to notes receivable from joint venture
 22  —    —   
 
12,184,562
 
 
 
721
 
Impairment of joint venture
 22  —    —   
 
4,677,782
 
 
 
277
 
Working capital changes:
     
Subscribers, distributors, recoverable taxes, contract assets and other, net
   8,609,836   (6,803,202 
 
(19,201,698
 
 
(1,137
Prepaid expenses
   (872,738  (2,527,168 
 
(6,154,082
 
 
(364
Related parties
   449,655   1,884,945  
 
758,301
 
 
 
45
 
Inventories
   6,083,461   (1,183,883 
 
2,832,978
 
 
 
168
 
Other assets
   (9,521,953  (1,321,813 
 
(1,564,370
 
 
(93
Employee benefits
   (27,223,091  (25,723,517 
 
(13,090,945
 
 
(775
Accounts payable and accrued liabilities
   7,447,308   (10,291,588 
 
10,098,156
 
 
 
598
 
Employee profit sharing paid
   (1,922,029  (2,935,880 
 
(3,316,540
 
 
(196
Financial instruments and other
   (1,664,465  (2,353,920 
 
— 
 
 
 
— 
 
Deferred revenues
   (9,068,794  2,430,434  
 
3,062,445
 
 
 
181
 
Interest received
   2,665,854   2,652,195  
 
4,882,509
 
 
 
289
 
Income taxes paid
   (60,535,903  (62,015,057 
 
(49,466,056
 
 
(2,928
Cash flows from discontinued operating
   5,601,233   (1,214,025 
 
— 
 
 
 
— 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net cash flows provided by continuing operating activities
  Ps.258,181,638  Ps.225,287,031  
Ps.
248,092,195
 
 
US$
14,686
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Investing activities
     
Purchase of property, plant and equipment
   (140,789,643  (146,192,426 
 
(131,101,509
 
 
(7,760
Acquisition of intangibles
   (12,202,142  (11,661,530 
 
(25,237,297
 
 
(1,494
Dividends received
 22  2,628,600   5,426,370  
 
4,590,313
 
 
 
272
 
Proceeds from sale of property, plant and equipment
   7,215,177   3,795,740  
 
7,042,757
 
 
 
417
 
Acquisition of business, net of cash acquired
 12  —    (18,525,639 
 
— 
 
 
 
— 
 
Contractual
earn-out
from business combination
 2, Ac  —    2,298,532  
 
3,468,655
 
 
 
205
 
Financial instruments
   —    —   
 
(9,420,419
 
 
(558
Partial sale of shares of associated company
   199,158   6,329  
 
— 
 
 
 
— 
 
Investments in associate companies
   —    (1,043,954 
 
(459,750
 
 
(27
Proceeds from the sale of businesses
   75,518,886   5,791,488  
 
— 
 
 
 
— 
 
Acquisition of short-term investments
   (3,361,507  —   
 
(10,061,353
 
 
(596
Sale of short-term investments
   —    9,690,285  
 
10,482,150
 
 
 
620
 
Acquisition of notes from joint venture
   —    —   
 
(14,292,963
 
 
(846
Cash flows from discontinued investing
   (5,729,473  (1,944,235 
 
— 
 
 
 
— 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net cash flows used in investing activities
  Ps.(76,520,944 Ps.(152,359,040 
Ps.
(164,989,416
 
US$
(9,767
  
 
 
  
 
 
  
 
 
  
 
 
 
Financing activities
     
Loans obtained
   93,675,127   188,414,369  
 
249,380,436
 
 
 
14,762
 
Repayment of loans
   (152,029,408  (145,340,377 
 
(214,735,610
 
 
(12,711
Payment of liability related to
right-of-use
of assets
 15  (30,544,750  (33,823,287 
 
(39,498,197
 
 
(2,338
Interest paid
   (23,884,410  (26,882,181 
 
(29,031,855
 
 
(1,719
Repurchase of shares
   (36,745,743  (26,143,162 
 
(14,331,361
 
 
(848
Dividends paid
   (27,829,345  (29,534,053 
 
(30,466,636
 
 
(1,803
Acquisition of
non-controlling
interests
 12  (7,720  (39,596 
 
(6,263,945
 
 
(371
  
 
 
  
 
 
  
 
 
  
 
 
 
Net cash flows used in financing activities
  Ps.(177,366,249 Ps.(73,348,287 
Ps.
(84,947,168
 
US$
(5,028
  
 
 
  
 
 
  
 
 
  
 
 
 
Net increase (decrease) in cash and cash equivalents
  Ps.4,294,445  Ps.(420,296 
Ps.
(1,844,389
 
US$
(110
Adjustment to cash flows due to exchange rate fluctuations, net
   (1,532,461  (4,558,646 
 
(5,258,787
 
 
(311
Cash and cash equivalents at beginning of the year
   35,917,907   38,679,891  
 
33,700,949
 
 
 
1,995
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Cash and cash equivalents at end of the year
  Ps.38,679,891  Ps.33,700,949  
Ps.
26,597,773
 
 
US$
1,574
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Non-cash
transactions related to:
     
Acquisitions of property, plant and equipment in accounts payable at year end
  Ps.18,385,498  Ps.1,476,834  
Ps.
6,928,514
 
 
US$
410
 
Revaluation surplus
   —    —   
 
1,157,941
 
 
 
69
 
Spin-off
    (1,376,353 
 
— 
 
 
 
— 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Non-cash
transactions
  Ps.18,385,498  Ps.100,481  
Ps.
8,086,455
 
 
US$
479
 
  
 
 
  
 
 
  
 
 
  
 
 
 
(1)
Restated for discontinuedDiscontinued operations.
The accompanying notes are an integral part of these consolidated financial statements.
 
F-
9
8

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Notes to Consolidated Financial Statements
Years ended December 31, 2019, 20202021, 2022 and 20212023
(In thousands of Mexican pesos Ps. and thousands of
U.S. dollars US$, unless otherwise indicated)
Note 1. Description of the Business and Relevant Events
I. Corporate Information
América Móvil, S.A.B. de C.V. and subsidiaries (hereinafter, the “Company”, “América Móvil” or “AMX”) was incorporated under the laws of Mexico on September 25, 2000. The Company provides telecommunicationsits services in 2422 countries throughout Latin America, the United States, the Caribbean and Europe.or territories. These telecommunications services include mobile and fixed-line voice services, wireless and fixed data services, internet access, and Pay TV, over the top (OTT) and other related services. The Company also sells equipment, accessories and computers.
 
Voice services provided by the Company, both wireless and fixed, mainly include the following: airtime, local, domestic and international long-distance services, and network interconnection services.
 
Data services include value added, corporate networks, data and Internet services.
 
Pay TV represents basic services, as well as pay per view and additional programming and advertising services.
 
AMX provides other related services to advertising in telephone directories, publishing and call center services.
 
The Company also provides video, audio and other media content that is delivered through the internet directly from the content provider to the end user.
In order to provide these services, América Móvil has licenses, permits and concessions (collectively referred to herein as “licenses”) to build, install, operate and exploit public and/or private telecommunications networks and provide miscellaneous telecommunications services (mostly mobile and fixed voice and data services) and to operate frequency bands in the radio-electric spectrum for
point-to-point
and
point-to-multipoint
microwave links. The Company holds licenses in the 2422 countries where it has networks, and such licenses have different dates of expiration through 2056.
Certain licenses require the payment to the respective governments of a share in sales determined as a percentage of revenues from services under concession. The percentage is set as either a fixed rate or in some cases based on certain size of the infrastructure in operation.
The corporate offices of América Móvil are located in Mexico City, Mexico, at Lago Zurich 245, Colonia Ampliación Granada, DelegaciónAlcaldía Miguel Hidalgo, 11529, Mexico City, Mexico.
The accompanying consolidated financial statements were approved for their issuance by the Company’s Board of Directors and the Chief Financial Officer on
April 20, 2022,[29]
, 2024 and subsequent events have been considered through that date.

II. Relevant events in 20212023
a) In SeptemberOn January 16, 2023, the Company announced that, after extensive dialogue with the Telephone Operators Union of the Mexican Republic, a constructive agreement had been reached regarding retirement conditions (pensions) for new personnel hired by Teléfonos de México, S.A.B de C.V. (hereinafter “Telmex”) from January 2023.
F-
9

b) On February 3, 2023 and between the months of March and July 2023, as part of the Company’s reorganization plan approved in early 2021, the Company completed the sale of 1,388 and 3,204 of its telecommunications towers property of its subsidiaries in the Dominican Republic and Peru, respectively, to Sitios Latinoamerica, S.A.B. de C.V. (hereinafter “Sitios Latam”), for a total of 3,704 towers in Peru. The telecommunications towers owned by the Company’s Dominican and Peruvian subsidiaries were sold for an amount of Ps. 2,419,568 and Ps. 3,963,059, respectively.
c) On April 27, 2023, the Company’s shareholders approved a repurchase fund of Ps. 20 billion and the payment of a Ps. 0.46 (forty six peso cents) ordinary dividend per share to be paid in two installments. The Company’s shareholders also agreed to the cancellation of the treasury shares acquired as part of its repurchase program and to modify the sixth article of the Company’s bylaws to reduce share capital proportionally to the cancellation of the shares.
d) On February 6, 2023, the Company entered into ana definitive agreement with Cable & Wireless Panama, S.A.Österreichische Beteiligungs AG (“OBAG”), with respect to OBAG’s and the Company’s participations in Telekom Austria AG, which became effective on February 6, 2023. The definitive agreement provides a new
10-year
term from February 2, 2023, ensures the Company’s control over Telekom Austria Group and provides the Company with the right to continue to nominate the majority of the Supervisory Board members and to nominate the Chairman and Chief Executive Officer of the Management Board of the Company with decision making vote over all management decisions. As part of the renewal of the definitive agreement, the Company and OBAG agreed to formally execute the
spin-off
of the mobile towers in most of the countries in which Telekom Austria AG operates, including Austria. The tower
spin-off
was approved by the shareholders of Telekom Austria AG in an affiliate extraordinary shareholders’ meeting on August 1, 2023. On September 22, 2023, Telekom Austria AG completed the
spin-off
of its telecommunications towers and other related passive infrastructure in Austria, Bulgaria, Croatia, North Macedonia, Serbia and Slovenia and listed the shares of the
spun-off
tower company: EuroTeleSites AG, on the Vienna Stock Exchange. As part of the
spin-off,
Telekom Austria contributed to EuroTeleSites AG net total assets of €290 million in the form of capital stock, assets and liabilities, mainly consisting of the shares of Telekom Austria’s subsidiary holding telecommunications towers and other associated infrastructure in the countries in which Telekom Austria operates. The Telekom Austria AG shareholders received one EuroTeleSites AG share for every four Telekom Austria AG shares they owned.
e) On June 9, 2023, the Company closed a 500 million-euro, five-year bullet loan for EuroTeleSites AG. The loan was provided by a group of six international banks. On July 6, 2023, EuroTeleSites AG launched a 5.25%, 500 million-euro five-year bond. The five-year bullet loan and five-year bond ensured EuroTeleSites AG was fully funded at the time of the
spin-off.
f) On June 26, 2023, the Company launched the inaugural issue of its new global peso notes program, authorized for up to Ps. 130 billion over five years. In its inaugural offering, registered both with the SEC in the U.S.A. and with the National Banking and Securities Commission (for and hereinafter referred to its acronym in Spanish “CNBV”) in Mexico, the Company issued a seven-year, Ps. 17 billion, 9.5% sustainable bond—approximately US$ 1 billion equivalent—maturing in January 2031.
g) On July 24, 2023, the Company acquired, through its subsidiary América Móvil, B.V., shares corresponding to 5.55% of the voting rights in Telekom Austria AG from a private investor. Subsequently, through a series of open market transactions, América Móvil, B.V. acquired an additional 1.85% of the voting rights, as of December 31, 2023 overall ownership in Telekom Austria AG of 58.4% of its total outstanding shares.
h) On December 26, 2023, the Company entered into a transaction agreement with Liberty Latin America LTD.Ltd. (“LLA”), to sell our 100% interest inits joint venture, Claro Panama, S.A. The agreed purchase price is Us$200 million on a cash/debt free basis. The closingChile, SpA (hereinafter, “ClaroVTR”), and certain affiliates of the Company and LLA. Pursuant to the transaction is subjectagreement, the Company and LLA agreed to, customary conditions for this type of transactions, including obtainingcollectively in proportion to their respective shareholding percentage interest or individually, provide additional capital required governmental approvals.by ClaroVTR through June 30, 2024 in an aggregate amount not to exceed CLP$972.4 billion (Ps. 18,728,611).
 
F-
10

b) In September 2021, the Company announced that shareholders representing approximately 98% of our capital stock approved the spin-off of approximately 36,000
telecommunications towers and other associated passive infrastructure deployed in 14 countries in Latin America. The spin-off is subject to customary conditions and adjustments for corporate reorganizations and shall comply with applicable requirements under the laws of Mexico and the jurisdictions where the telecommunications towers are located.
c) In September 2021, Liberty Latin America and América Móvil announced an agreement to combine their respective Chilean operations, VTR and Claro Chile, to form a 50:50 joint venture. The proposed transaction combines the complementary operations of VTR, a leading provider of high-speed consumer fixed products, such as broadband and Pay TV services, where it connects close to 3 million subscribers nationwide, and Claro Chile, one of Chile’s leading telecommunications service providers with over 6.5 million mobile customers, to create a business with greater scale, product diversification, and a capital structure that will enable significant investment for fixed fiber footprint expansion and to be at the forefront of 5G mobile delivery. Completion of the transaction is subject to certain customary closing conditions, including regulatory approvals, and is expected to close in the second half of 2022.
d) On November 23, 2021, the Company completed the sale of TracFone Wireless to Verizon Communications. The Company received US$3,625.7 million in cash and 57,596,544 shares of Verizon stock which had a closing price on that date of 51.54 dollars per share.
Verizon has asserted post-closing claims under the adjustments and other provisions of this agreement, which may result in additional payments by us
.
Subject to TracFone continuing to achieve certain operating metrics (earn-out), Verizon shall pay
up to
an additional US$650
million in future cash consideration within two years from that date. See Note 2Ac.
Effects of the COVID-19 Pandemic
:
The unprecedented health crisis arising from the COVID-19 pandemic has resulted in a severe global economic downturn and has caused significant volatility, uncertainty, and disruption.
The Company continues to closely
monitor
the evolution of the COVID-19 pandemic in the countries where
it operates
to take preventive measures to ensure the continuity of operations and safeguard the health and safety of personnel and customers.
During 2021, there were lockdowns and other measures implemented to control the spread of COVID-19 in
the
region of operations, resulting in the closure of shops and customer-care centers, the imposition of constraints on the mobility of
the
clients and the disruption of
the
supply chain for handsets and other equipment. In order to mitigate the effects of supply-chain disruption and handset scarcity, 
the Company
began ordering excess quantities of handsets in each country in which operate in October, November and December of 2021. Most major smartphone
manufacturers
were able to respond to increased handset orders.
The
investments in capital expenditures are expected to increase
to pre-pandemic levels in 2022.
2. Basis of Preparation of the Consolidated Financial Statements and Summary of Significant Accounting Policies and Practices
a) Basis of preparation
The accompanying consolidated financial statements have been prepared in conformity with International Financial Reporting Standards, as issued by the International Accounting Standards Board (“IASB”) (hereafter referred to as IFRS).
The consolidated financial statements have been prepared on the historical cost basis, except for the derivative financial instruments (assets and liabilities), the passive infrastructure of mobile telecommunications towers, the trust assets of post-employment and other employee benefit plansplans; debt instruments and the investments in equity at fair value through other comprehensive income (OCI), which are presented at their market value.
F-
11

Effective July 1, 2018, the ArgentinianArgentine economy has been considered to be hyperinflationary in accordance with the criteria in IAS 29 “Financial Reporting in Hyperinflationary Economies” (“IAS 29”). Accordingly, for the ArgentinianArgentine subsidiaries, we have included adjustments for hyperinflation and reclassifications as is required by the standard for purposes of presentation of IFRS in the consolidated financial statements.
The preparation of these consolidated financial statements under IFRS requires the use of critical estimates and assumptions that affect the amounts reported for certain assets, liabilities, incomerevenue and expenses, including the main impact generated by the COVID-19 pandemic and the potential effect on the amounts disclosed in the consolidated financial statements.
expenses. It also requires that management exercise judgment in the application of the Company’s accounting policies. Actual results could differ from these estimates and assumptions.
The Mexican peso is the functional currency of the Company’s Mexican operations and the consolidated reporting currency of the Company.
i) Changes in Accounting Policies and Disclosures
AsThe accounting policies applied in the preparation of the consolidated financial statements for the year ended December 31, 2020,2023 are consistent with those used in the company changed itspreparation of the Company´s consolidated annual financial statements for the years ended December 31, 2022 and 2021, with the exception of the following new standards and amendments to existing standards issued by the IASB, which were mandatory for annual periods beginning on or after January 1, 2023:
Definition of Accounting Estimates—Amendments to IAS 8
The amendments to IAS 8 clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates.
The amendments had no impact on the Company’s consolidated financial statements.
Disclosure of Accounting Policies—Amendments to IAS 1 and IFRS Practice Statement 2
The amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to recordhelp entities provide accounting policy disclosures that are more useful by replacing the valuerequirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.
The amendments had no impact on the Company’s consolidated financial statements.
F-
11

Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12
The amendments to IAS 12
Income Tax
narrow the scope of the passive infrastructure (towers) of its subsidiaries. With the change, this passive infrastructure wasinitial recognition exception, so that it no longer recognized at historical costapplies to transactions that give rise to equal taxable and it begandeductible temporary differences such as leases and decommissioning liabilities.
The amendments had no impact on the Company’s consolidated financial statements.
International Tax Reform—Pillar Two Model Rules – Amendments to IAS 12
The amendments to IAS 12 have been introduced in response to the Organisation for Economic
Co-operation
and Development’s – OECD Base erosion and profit shifting’s – BEPS Pillar Two rules and include:
A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules; and
Disclosure requirements for affected entities to help users of the financial statements better understand an entity’s exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date.
The mandatory temporary exception – the use of which is required to be recognized underdisclosed – applies immediately. The remaining disclosure requirements apply for annual reporting periods beginning on or after 1 January 2023, but not for any interim periods ending on or before December 31, 2023.
Management applied th
e mand
atory temporary exception and will continue to analyze future impacts. The amendments had no impact on the revaluation model (market value). The company considers that the revaluation model represents the actual conditions of the industry of this class of assets and improves itsCompany’s consolidated financial position, this allows its shareholders and stakeholders to have the necessary financial information associated with market expectations about this class of assets.statements.
ii) Basis of consolidation
The consolidated financial statements include the accounts of América Móvil, S.A.B. de C.V. and those subsidiaries over which the Company exercises control. The consolidated financial statements for the subsidiaries were prepared for the same period as the Company´s and applying consistent accounting policies. All of the subsidiary companies operate in the telecommunications sector or related.
Subsidiaries are entities over which the Company has control. Control is achieved when the Company has power over the investee, when it is exposed to, or has rights to, variable returns from its involvement with the investee, and has the ability to use its power over the investee to affect the amount of the investor’s returns. Subsidiaries are consolidated on a
line-by-line
basis from the date which control is achieved by the Company. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the elements of control.
On March 6, 2020, in accordance with a resolution of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones or IFT), the subsidiaries Teléfonos de México, S.A.B. de C.V. and Teléfonos del Noroeste, S.A. de C.V. created separate companies related to the wholesale services named Red Nacional Última Milla S.A.P.I. de C.V., Servicios de Telecomunicaciones Ultima Milla, S.A. de C.V. and Red Última Milla del Noroeste S.A.P.I. de C.V. The restructuring of Telmex has no impact
o
n the consolidated financial information of the Company.
Changes in the Company’s ownership interests in a subsidiary that do not result in the Company losing control over the subsidiary are accounted for as equity transactions. The carrying amounts of the equity attributable to owners of the parent and
non-controlling
interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the carrying amount of the
non-controlling
interests and the fair value of the consideration paid or received in the transaction is recognized directly in the equity attributable to the owners.
F-
12

Subsidiaries are deconsolidated from the date which control ceases. When the Company ceases to have control over a subsidiary, it derecognizes the assets (including any goodwill) and liabilities of the subsidiary at their carrying amounts, derecognizes the carrying amount of
non-controlling
interests in the former subsidiary and recognizes the fair value of any consideration received from the transaction. Any retained interest in the former subsidiary is then remeasured to its fair value.
All intra-Company balances and transactions, and any unrealized gains and losses arising from intra-Company transactions, are eliminated in preparing the consolidated financial statements.
F-1
2

Non-controlling
interests represent the portion of profits or losses and net assets not held by the Company.
Non-controlling
interests are presented separately in the consolidated statements of comprehensive income and in equity in the consolidated statements of financial position separately from Company’s own equity.
Associates:
An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not have control or joint control over those decisions.
The Company’s investment in associates includes goodwill identified on acquisition, net of any accumulated impairment losses.
The investments in associated companies in which the Company exercises significant influence are accounted for using the equity method, whereby Company recognizes its share in the net profit (losses) and equity of the associate.
Joint venture:
A joint venture is an arrangement in which the Company has joint control, whereby the Company has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Interests in the joint venture are accounted for using the equity method. Pursuant to such method, the joint venture is initially recognized at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Company’s share of the profit or loss and OCI of equity-accounted investees, until the date on which significant influence or joint control ceases.
The results of operations of the subsidiaries and associates are included in the Company’s consolidated financial statements beginning as of the month following their acquisition and its share of other comprehensive income after acquisition is recognized directly in other comprehensive income.
The Company assesses at each reporting date whether there is objective evidence that investment in associates and joint venture is impaired. If so, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value.
 
F-F-1
133

The equity interest in the most significant subsidiaries at December 31, 2020 and 2021 is as follows:
 
Company name
  
Country
   
Equity
interest at
December 31
 
2020
 
2021
 
  
Country
   
Equity
interest at
December 31
 
2022 
2023
 
Subsidiaries:
        
América Móvil B.V.
a)
   Netherlands    100.0  100.0   Netherlands    100.0 
 
100.0
Compañía Dominicana de Teléfonos, S.A. (“Codetel”)
b)
   Dominican Republic    100.0  100.0   Dominican Republic    100.0 
 
100.0
Sercotel, S.A. de C.V.
a)
   Mexico    100.0  100.0   Mexico    100.0 
 
100.0
Radiomóvil Dipsa, S.A. de C.V. and subsidiaries (“Telcel”)
b)
   Mexico    100.0  100.0   Mexico    100.0 
 
100.0
Puerto Rico Telephone Company, Inc.
b)
   Puerto Rico    100.0  100.0   Puerto Rico    100.0 
 
100.0
Servicios de Comunicaciones de Honduras, S.A. de C.V. (“Sercom Honduras”)
b)
   Honduras    100.0  100.0   Honduras    100.0 
 
100.0
TracFone Wireless, Inc. (“TracFone”)
b) c)
   USA    100.0  0   
Claro S.A. (Claro Brasil)
b)
   Brazil    98.2  98.2
NII Brazil Holding S.A.R.L
a)
   Luxembourg    100.0  100.0
Nextel Telecomunicações Ltda
b)
   Brazil    100.0  100.0
Claro S.A.
b)
   Brazil    99.6 
 
99.6
NII Brazil Holding S.A.R.L
c)
   Luxembourg    100.0 
 
— 
 
AMX International Mobile S.A. de C.V.
c)
   Mexico    —   
 
100.0
Claro NXT Telecomunicações, S.A.
b)
   Brazil    100.0 
 
100.0
Telecomunicaciones de Guatemala, S.A. (“Telgua”)
b)
   Guatemala    99.3  99.3   Guatemala    99.3 
 
99.3
Claro Guatemala, S.A.
b)
   Guatemala    100.0  100.0   Guatemala    100.0 
 
100.0
Empresa Nicaragüense de Telecomunicaciones, S.A. (“Enitel”)
b)
   Nicaragua    99.6  99.6   Nicaragua    99.6 
 
99.6
Compañía de Telecomunicaciones de El Salvador, S.A. de C.V. (“CTE”)
b)
   El Salvador    95.8  95.8   El Salvador    95.8 
 
95.8
Comunicación Celular, S.A. (“Comcel”)
b)
   Colombia    99.4  99.4   Colombia    99.4 
 
99.4
Consorcio Ecuatoriano de Telecomunicaciones, S.A. (“Conecel”)
b)
   Ecuador    100.0  100.0   Ecuador    100.0 
 
100.0
AMX Argentina, S.A.
b)
   Argentina    100.0  100.0   Argentina    100.0 
 
100.0
AMX Paraguay, S.A.
b)
   Paraguay    100.0  100.0   Paraguay    100.0 
 
100.0
AM Wireless Uruguay, S.A.
b)
   Uruguay    100.0  100.0   Uruguay    100.0 
 
100.0
Claro Chile, S.A.
b)
   Chile    100.0  100.0
América Móvil Perú, S.A.C
b)
   Peru    100.0  100.0   Peru    100.0 
 
100.0
Claro Panamá, S.A.
b)
   Panamá    100.0  100.0
Teléfonos de México, S.A.B. de C.V.
b)
   Mexico    98.8  98.8   Mexico    98.8 
 
98.8
Telekom Austria AG
b)
   Austria    51.0  51.0   Austria    51.0 
 
58.4
EuroTeleSites AG and subsidiaries
d)
   Austria    —   
 
57.0
Joint venture:
Claro Chile, SpA
   Chile    50.0 
 
50.0
 
a)
Holding companiescompanies.
b)
Operating companies of mobile and fixed servicesservices.
c)
On November 23, 2021,January 2023, this entity was discontinued operations. See Note 2Ac. 
merged with AMX International Mobile, S.A. de C.V.
d)
Company
spun-off
from Telekom Austria AG on September 22, 2023.
iii) Basis of translation of financial statements of foreign subsidiaries and associated companies
The operating revenues of foreign subsidiaries jointly represent approximately 65%63%, 66%63% and 64%60% of consolidated operating revenues for the years ended December 31, 2019, 20202021, 2022 and 2021,2023, respectively, and their total assets jointly represent approximately 75%64% and 70%65% of consolidated total assets at December 31, 20202022 and 2021,2023, respectively.
The financial statements of foreign subsidiaries have been prepared under or converted to IFRS in the respective local currency (which is their functional currency) and then translated into the Company´s reporting currency as follows:
 
all monetary assets and liabilities were translated at the closing exchange rate of the period;
 
all non-monetary assets and liabilities at the closing exchange rate of the period;
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all
non-monetary
assets and liabilities at the closing exchange rate of the period;
equity accounts are translated at the exchange rate at the time the capital contributions were made and the profits were generated;
 
revenues, costs and expenses are translated at the average exchange rate of the period, except for the operations of the subsidiaries in Argentina, whose economy is considered hyperinflationary since 2018;
 
the consolidated statements of cash flows presented using the indirect method were translated using the weighted-average exchange rate for the applicable period (except for Argentina), and the resulting difference is shown in the consolidated statements of cash flows under the heading “Adjustment to cash flows due to exchange rate fluctuations, net”.
The difference resulting from the translation process is recognized in equity in the caption “Effect of translation of foreign entities”. At December 31, 2022 and 2023, the cumulative translation adjustment was Ps. (128,299,347) and Ps. (164,975,378), respectively.
The basis of translation for the operations of the subsidiaries in Argentina are described:described below:
In recent years, the Argentina economy has shown high rates of inflation. Although inflation data has not been consistent in recent years and several indexes have coexisted, inflation in Argentina indicates that the three-year cumulative inflation rate exceeded 100% in 2018, which is one of the quantitative references established by IAS 29. As a result, Argentina was considered a hyperinflationary economy in 2018 and the Company applies hyperinflation accounting to its subsidiary whose functional currency is the Argentine peso for financial information for periods ending on or after July 1, 2018, however the calculation of the cumulative impact was measured as of January 1, 2018.
In order to restate for hyperinflation its financial statements, the subsidiary used the series of indices defined by resolution JG No. 539/18 issued by the “Federación Argentina de Consejos Profesionales de Ciencias Económicas” (“FACPCE”), based on the National Consumer Price Index (IPC) published by the Instituto Nacional de Estadística y Censos (INDEC) of the Argentine Republic and the Wholesale Internal Price Index (IPIM) published by FACPCE. The cumulative index at December 31, 20212023 is 582.4575,3,576.400, while on an annual inflation for 20212023 is 50.9%211.41%.
The main implications are as follows:
 
Adjustment of the historical cost of
non-monetary
assets and liabilities and equity items from their date of acquisition, or the date of inclusion in the consolidated statements of financial position, to the end of the year, in order to reflect changes in the currency’s purchasing power caused by inflation.
 
The gain on the net monetary position caused by the impact of inflation in the year is included in the consolidated statements of comprehensive income as part of the caption “
Valuation of derivatives, interest cost from labor obligations and other financial items, netnet”
. Items in the statement of comprehensive income and in the statements of cash flows are adjusted by the inflation index since their origination, with a balancing entry, and a reconciling item in the statements of cash flows, respectively.
 
All items in the financial statements of the Argentine company are translated at the closing exchange rate, which at December 31, 20202022 and 20212023 were 0.23710.1096 and 0.2004,0.0209, respectively, per argentineArgentine peso per Mexican peso.
The difference resulting from the translation process is recognized in equity in the caption “Effect of translation of foreign entities”. At December 31, 2020 and 2021, the cumulative translation adjustment was Ps. (100,926,140) and Ps. (104,270,295), respectively.
b) Revenue recognition
The Company revenues are derived principally from providing the following telecommunications services and products: wireless voice, wireless data and value-added services, fixed voice, fixed data, broadband and IT services, Pay TV and
over-the-top
(“OTT”) services.
 
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The Company provides fixed and mobile services. These services are offered independently in contracts with customers or together with the sale of handsets (mobile) under the postpaid model. In accordance with IFRS 15
Revenues from contracts with customers”customers
, the transaction price should be assigned to the different performance obligations based on their relative standalone selling price.
The Company with respect to the provided services, it has market observable information, to determine the standalone selling price of the services. On the other hand, in the case of the sale of bundled mobile phones sold (including service and handset) by the Company, the allocation of the sales is done based on their relative standalone selling price of each individual component related to the total bundled price. The result is that more equipment revenue is recognized at the moment of a sale and, therefore, less service revenue from the monthly fee is being recognized under IFRS 15.
The services provided by the Company are satisfied over the time of the contract period, given that the customer simultaneously receives and consumes the benefits provided by the Company.
Such service bundles, voice and data, accomplish the criteria mentioned in IFRS 15 of being substantially similar and of having the same transfer pattern which is why the Company concluded that the revenue from these different services offered to its customers are considered as a single performance obligation with revenue being recognized over time, except for sales of equipment.
Under IFRS 15, for those contracts with customers in which generally the sale of equipment and other electronic equipment is a single performance obligation, the Company recognizes the revenue at the moment when it transfers control to the customer which generally occurs when such goods are delivered.
The commissions are considered incremental contract acquisition costs that are capitalized and are amortized over the expected period of benefit, during the average duration of customer contracts.
Some subsidiaries have loyalty programs where the Company awards credits customer credit awards referred as “points”. The customer can redeem accrued “points” for awards such as devices, accessories or airtime. The Company provides all awards. The consideration allocated to the award credits is identified as a separate performance obligation; the corresponding liability of the award credits is measured at its fair value. The consideration allocated to award credits amount is recognized as a contract liability until the points are redeemed. Revenue is recognized upon redemption of products by the customer.
c) Cost of sales
The cost of mobile equipment and computers is recognized at the time the client and distributor receive the device which is when the control is are transferred to the customer.
d) Cost of services
The cost of services represents the costs incurred to properly deliver the services to the customers, it includes the network operating costs and licenses related costs and is accounted at the moment in which such services are provided.
e) Commissions to distributors
The Company pays commissions to its network of distributors different than those thatprimarily to acquire customers.and retain customers for the Company. Such commissions are recognized in
“commercial, administrative and general expenses”
in the consolidated statements of comprehensive income at the time in which the distributor either reports an activation or reaches certain number of lines activated or obtained at a certain point of time.
 
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f) Cash and cash equivalents
Cash and cash equivalents represent bank deposits and liquid investments with maturities of less than three months. These amounts are stated at cost plus accrued interest, which is similar to their market value.
The Company also maintains restricted cash held as collateral to meet certain contractual obligations. RestrictedAs restricted cash isthe Company includes the judicial deposits that are presented as part of “Other assets”assets, net” within other
non-current financial assets
assets’ portion given that the restrictions are long-term in nature. See Note 9.
g) Equity investments at fair value through OCI and other short/long-term investments
Equity investments at fair value through OCI and other short-term investments are primarily composed of equity investments and other short-term financial investments. Amounts are initially recorded at their estimated fair value. Fair value adjustments for equity investments are recorded through other comprehensive income, and other short-term investment.
h) Inventories
Inventories are initially recognized at historical cost and are valued using the average cost method without exceeding their net realizable value.
The estimate of the realizable value of inventories
on-hand
is based on their age and turnover.
i) Business combinations and goodwill
Business combinations are accounted for using the acquisition method, which in accordance with IFRS 3, “
Business acquisitions
”, consists in general terms as follows:
 
(i)
Identify the acquireracquirer;
 
(ii)
Determine the acquisition datedate;
 
(iii)
Value the acquired identifiable assets and assumed liabilitiesliabilities; and
 
(iv)
Recognize the goodwill or a bargain purchase gaingain.
For acquired subsidiaries, goodwill represents the difference between the purchase price and the fair value of the net assets acquired at the acquisition date. The investment in acquired associates includes goodwill identified on acquisition, net of any impairment loss.
Goodwill is reviewed annually to determine its recoverability or more often if circumstances indicate that the carrying value of the goodwill might not be fully recoverable.
The possible loss of value in goodwill is determined by analyzing the recovery value of the cash generating unit (or the group thereof) to which the goodwill is associated at the time it was originated. If this recoverable amount is lower than the carrying value, an impairment loss is charged to the results of operations. The recoverable amount is determined based on the higher of fair value less cost of disposal or value in use.
For the years ended December 31, 2019, 20202021, 2022 and 2021, 02023, no impairment losses were recognized for goodwill.
j) Property, plant and equipment
i) Property, plant and equipment are recorded at acquisition cost, net of accumulated depreciation; except for the passive infrastructure of telecommunications towers, which are recognized under the revaluation model asmodel.
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Depreciation is computed on the cost of assets using the straight linestraight-line method, based on the estimated useful lives of the related assets, beginning the month after they become available for use.
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Borrowing costs that are incurred for general financing for construction in progress for periods exceeding six monthsa substantial period of time are capitalized as part of the cost of the asset. During the years ended December 31, 2019, 20202021, 2022 and 2021,2023, borrowing costs that were capitalized amounted to Ps. 2,233,358,1,527,259, Ps. 1,771,6131,514,654 and Ps.1,527,259Ps. 1,442,077, respectively.
In addition to the purchase price and costs directly attributable to preparing an asset in terms of its physical location and condition for operating as intended by management, when required, the cost also includes the estimated costs of dismantling and removal of the asset and for restoration of the site where it is located. See Note 16c.
The passive infrastructure of telecommunications towers will beis recorded at revalued value, which is its fair value at the time of revaluation less accumulated depreciation; if there is any loss or impairment, it must also be considered within its value. The revaluations will be calculated with sufficient regularity to ensure that the book value, every time, does not differ significantly from that which could be determined using the fair value at the end of the reporting period.
The increase resulting from a revaluation is recorded in other comprehensive income (OCI) and is accumulated in equity as a revaluation surplus. To the extent that there is a decrease in revaluation, it will be recognized in profit or loss, except to the extent that it compensates for an existing surplus on the same asset.
An annual transfer of the asset revaluation surplus and accumulated earnings is made to the extent that the asset is used, therefore, the surplus is equal to the difference between the depreciation calculated on the revalued value and the one calculated according to its original cost. These transfers do not record in the results for the period. A total transfer of the surplus may be made when the entity disposes of the asset.
ii) The net book value of property, plant and equipment is removed from the consolidated statements of financial position at the time the asset is sold or when no future economic benefits are expected from its use or sale. Any gains or losses on the sale of property, plant and equipment represent the difference between net proceeds of the sale and the net book value of the item at the time of sale. These gains or lossessale, that are recognized as either other operating income or other operating expenses upon sale.
iii) The Company periodically assesses the residual values, useful lives and depreciation methods associated with its property, plant and equipment. If necessary, the effects of any changes in accounting estimates is recognized prospectively, at the closing of each period, in accordance with IAS 8, “
Accounting Policies, Changes in Accounting Estimates and Errors
”.
For property, plant and equipment made up of several components with different useful lives, the major individual components are depreciated over their individual useful lives. Maintenance costs and repairs are expensed as incurred.
Annual depreciation rates are as follows:
 
Network infrastructure
   5%-33% 
Buildings and leasehold improvement
   2%-33% 
Other assets
   10%-50% 
iv) The carrying value of property, plant and equipment is reviewed annually if there are indicators of impairment in such assets. If an asset’s recovery value is less than the asset’s net carrying value, the difference is recognized as an impairment loss.
During the years ended December 31, 2019, 2020 and 2021, 0 impairment losses were recognized.
 
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During the years ended December 31, 2021, 2022 and 2023, no impairment losses were recognized.
v) Spare parts for network operation are recognized at cost.
The valuation of inventory for network considered obsolete, defective or slow-moving, is reduced to their estimated net realizable value. The estimate of the recovery value of inventories is based on their age and turnover.
k) Intangibles
i) Licenses
Licenses to operate wireless telecommunications networks granted by the governments of the countries in which the Company operates are recorded at acquisition cost or at fair value at their acquisition date, net of accumulated amortization. Certain licenses require payments to the governments, such payments are recognized in the cost of service and equipment.
The licenses that in accordance with government requirements are categorized as automatically renewable, for a nominal cost and with substantially consistent terms, are considered by the Company as intangible assets with an indefinite useful life. Accordingly, they are not amortized. Licenses are amortized when the Company does not have a basis to conclude that they are indefinite lived. LicensesOther licenses are amortized using the straight-line method over a period ranging from 3 to 30 years, which represents the usage period of the assets.
The Company has conducted an internal analysis on the applicability of the International Financial Reporting Interpretation Committee (“IFRIC”) No. 12 (Service Concession Agreements) and has concluded that its concessions are outside the scope of IFRIC 12. To determine the applicability of IFRIC 12, the Company analyzes each concession or group of similar concessions in a given jurisdiction. As a threshold matter, the Company identifies those government concessions that provide for the development, financing, operation or maintenance of infrastructure used to render a public service, and that set out performance standards, mechanisms for adjusting prices and arrangements for arbitrating disputes.
With respect to those services, the Company evaluates whether the grantor controls or regulates (i) what services the operator must provide, (ii) to whom it must provide them and (iii) the applicable price (the “Services Criterion”). In evaluating whether the applicable government, as grantor, controls the price at which the Company provides its services, the Company looks at the terms of the concession agreement according to all applicable regulations. If the Company determines that the concession under analysis meets the Services Criterion, then the Company evaluates whether the grantor would hold a significant residual interest in the concession’s infrastructure at the end of the term of the arrangement.
ii) Trademarks
Trademarks acquired are measured on initial recognition at cost. The cost of trademarks acquired in a business combination is their fair value at the date of acquisition. The useful lives of trademarks are assessed as either definite or indefinite. Trademarks with finite useful lives are amortized using the straight-line method over a period ranging from 1 to 10 years. Trademarks with indefinite useful lives are not amortized but are tested for impairment annually at the cash generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable, if not, the change in useful life from indefinite to definite is made on a prospective basis.
iii) Irrevocable rights of use
Irrevocable rights of use are recognized according to the amount paid for the right and are amortized over the period in which they are granted.
 
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The carrying values of the Company’s licenses and trademarks are reviewed annually and whenever there are indicators of impairment in the value of such assets. When an asset’s recoverable amount, which is the higher of the asset’s fair value, less disposal costs and its value in use (the present value of future cash flows), is less than the asset’s carrying value, the difference is recognized as an impairment loss.
iv) Customer relationships
The value of customer relations is determined and valued at the time that a new subsidiary is acquired, as determined by the Company with the assistance of independent appraisers and is amortized over a
5-year
period.
During the years ended December 31, 2019, 20202021, 2022 and 2021, 02023, no significant impairment losses were recognized for licenses, trademarks, irrevocable rights of use or customer relationships.
l) Impairment in the value of long-lived assets
The Company assesses the existence of indicators of impairment in the carrying value of long-lived assets, investments in associates, goodwill and intangible assets according to IAS 36 “
Impairment of assets
”. When there are such indicators, or in the case of assets whose nature requires an annual impairment analysis (goodwill and intangible assets with indefinite useful lives), the Company estimates the recoverable amount of the asset, which is the higher of its fair value, less disposal costs, and its value in use. Value in use is determined by discounting estimated future cash flows, applying a
pre-tax
discount rate that reflects the time value of money and taking into consideration the specific risks associated with the asset. When the recoverable amount of an asset is below its carrying value, impairment is considered to exist. In this case, the carrying value of the asset is reduced to the asset’s recoverable amount, recognizing the loss in results of operations for the respective period. Depreciation and/or amortization expense of future periods is adjusted based on the new carrying value determined for the asset over the asset’s remaining useful life. Impairment is computed individually for each asset. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets.
In the estimation of impairments, the Company uses the strategic plans established for the separate cash-generating units to which the assets are assigned. Such strategic plans generally cover a period from 3 to 5 years. For longer periods, beginning in the fifth year, projections are based on such strategic plans while applying a constant or declining expected perpetual growth rate.
Key assumptions used in value in use calculations
The forecasts are made in real terms (net of inflation) and in the functional currency of the subsidiary as of December 31, 2021.2023. Financial forecasts, premises and assumptions are similar to what any other market participant in similar conditions would considerconsider.
, including the impact of the COVID-19 pandemic.
Local synergies, that any other market participant would not have taken into consideration to prepare similar forecasted financial information, have not been included.
The assumptions used to develop the financial forecasts were validated for each of the cash generating units (“CGUs”), typically identified by country and by service (in the case of Mexico)Mexico fixed and mobile) taking into consideration the following:
 
Current subscribers and expected growth.growth;
 
Type of subscribers (prepaid, postpaid, fixed line, multiple services);
 
Market environment and penetration expectationsexpectations;
 
New products and servicesservices;
 
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20

Economic environment of each country
Economic environment of each country;
 
Expenses for maintaining the current assetsassets;
 
Investments in technology for expanding the current assetsassets; and
 
Market consolidation and synergiessynergies.
The foregoing forecasts could differ from the results obtained through time; however, the Company prepares its estimates based on the current situation of each of the CGUs.
The recoverable amounts are based on value in use. The value in use is determined based on the method of discounted cash flows. The key assumptions used in projecting cash flows are:
 
Margin on EBITDA is determined by dividing EBITDA (operating income plus depreciation and amortization) by total revenues.
 
Margin on CAPEX is determined by dividing capital expenditures (“CAPEX”) by total revenues.
 
Pre-tax Post-tax
weighted average cost of capital (“WACC”) is used to discount the projected cash flows.
As discount rate, the Company uses the WACC which was determined for each of the cash generating units and is described in the following paragraphs.
The estimated discount rates to perform the IAS 36 “
Impairment of assets
”, impairment test for each CGU consider market participants assumptions. Market participants were selected taking into consideration size, operations and characteristics of the business that were similar to those of Company.
These discount rates do not include inflation.
The discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Company and its operating segments. The WACC takes into account both debt and equity costs. The cost of equity is derived from the expected return on investment for each GCU. The cost of debt is based on the interest-bearing borrowings the Company is obliged to service. Segment-specific risk is incorporated by applying individual beta factors.
The beta factors are evaluated annually based on publicly available market data.
Market participant assumptions are important because, not only do they include industry data for growth rates, but also management assesses how the CGU’s position, relative to its competitors, might change over the forecasted period.
 
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21

The most significant forward-looking estimates used for the 20202022 and 20212023 impairment evaluations are shown below:
 
  
Average margin on
EBIDTA
 
Average margin on
CAPEX
 
Average pre-tax
discount rate
(WACC)
   
Average margin on
EBIDTA
 
Average margin on
CAPEX
 
Average pre-tax

discount rate
(WACC)
 
2020:
       
2022:
Europe (7 countries)
   32.20% - 40.76%   7.04% - 19.39%   3.88% - 12.02%    32.70% - 47.31%   7.7% - 21.1%   5.47% - 24.11% 
Brazil (fixed line, wireless and TV)
   40.67%   25.36%   9.50%    41.90%   19.62%   9.30% 
Puerto Rico
   23.06%   14.57%   3.53%    26.98%   8.91%   6.14% 
Dominican Republic
   47.57%   13.71%   8.27%    53.93%   13.82%   11.13% 
Mexico (fixed line and wireless)
   32.69%   11.01%   6.03%    36.19%   18.61%   8.60% 
Ecuador
   49.23%   11.14%   17.50%    47.14%   18.42%   20.13% 
Peru
   38.72%   15.43%   4.76%    36.53%   21.05%   10.39% 
El Salvador
   45.92%   21.19%   14.63%    45.18%   17.59%   22.37% 
Chile
   26.34%   13.18%   3.37% 
Colombia
   43.45%   18.19%   6.44%    42.25%   27.41%   13.70% 
Other countries
   10.07% - 47.23%   0.48% - 31.67%   3.42% - 21.85%    32.92% - 49.54%   9.63% - 25.97%   9.16% - 29.94% 
2021:
       
2023:
Europe (7 countries)
  
 
31.60% - 45.32%
 
 
 
7.48% - 24.37%
 
 
 
2.91% - 9.83%
 
  
 
26.81% - 43.90%
 
 
 
4.46% - 16.89%
 
 
 
6.08% - 29.15%
 
Brazil (fixed line, wireless and TV)
  
 
41.37%
 
 
 
22.98%
 
 
 
4.62%
 
  
 
43.07%
 
 
 
14.37%
 
 
 
10.45%
 
Puerto Rico
  
 
21.54%
 
 
 
14.36%
 
 
 
3.00%
 
  
 
23.92%
 
 
 
10.46%
 
 
 
6.31%
 
Dominican Republic
  
 
52.02%
 
 
 
13.86%
 
 
 
5.84%
 
  
 
52.34%
 
 
 
13.78%
 
 
 
11.95%
 
Mexico (fixed line and wireless)
  
 
36.21%
 
 
 
15.89%
 
 
 
6.24%
 
  
 
36.10%
 
 
 
10.66%
 
 
 
9.37%
 
Ecuador
  
 
44.76%
 
 
 
12.48%
 
 
 
14.48%
 
  
 
50.81%
 
 
 
18.49%
 
 
 
21.77%
 
Peru
  
 
36.63%
 
 
 
17.19%
 
 
 
3.99%
 
  
 
41.80%
 
 
 
7.11%
 
 
 
9.13%
 
El Salvador
  
 
44.82%
 
 
 
24.25%
 
 
 
10.78%
 
  
 
46.27%
 
 
 
9.26%
 
 
 
20.15%
 
Chile
  
 
27.36%
 
 
 
17.98%
 
 
 
2.81%
 
Colombia
  
 
43.36%
 
 
 
23.18%
 
 
 
7.18%
 
  
 
43.39%
 
 
 
20.78%
 
 
 
10.15%
 
Other countries
  
 
30.55% - 48.52%
 
 
 
4.91% - 30.03%
 
 
 
4.64% - 14.39%
 
  
 
28.06% - 51.46%
 
 
 
11.68% - 27.15%
 
 
 
10.29% - 22.79%
 
Sensitivity to changes in assumptions:
The implications of the key assumptions for the recoverable amount are discussed below:
Margin on CAPEX- The Company performed a sensitivity analysis by increasing its CAPEX by 5% and maintaining all other assumptions the same
,
 results without impairment.same. The sensitivity analysis would require the Company to adjust the amount of its long-lived assets in one of its CGUs with potential impairment of approximately Ps. 1,208,795.
WACC- Additionally, should the Company increase by 50 base points in WACC per CGU and maintain all other assumptions the same, results without impairment.same. The sensitivity analysis would require the Company to adjust the amount of its long-lived assets in one of its CGUs with potential impairment of approximately Ps. 1,235,848.
m
)
Right-of-use
assets
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of
low-value
assets. The Company recognizes lease liabilities to make lease payments and
right-of-use
assets representing the right to use the underlying assets.
 
i)
Right-of-use
assets
The Company recognizes
right-of-use
assets at the commencement date of the lease (i.e., the date the underlying asset is available for use).
Right-of-use
assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of
right-of-use
assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or
 
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222

before the commencement date less any lease incentives received.
Right-of-use
assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:
 
Assets
  
Useful life
Towers and sites
  52 to 1224 years
Property
  102 to 2524 years
Other equipment
  52 to 1520 years
The
right-of-use
assets are also subject to impairment test.
 
ii)
Lease liabilities.
At the commencement date of the lease, the Company recognizes the lease liabilities measured at the present value of the lease payments to be made over the lease term. Lease payments include fixed payments (including
in-substance
fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or rate, and amounts expected to be paid under residual value guarantees. The lease payments also include payments of penalties for early termination of the lease, if the term of the lease reflects that the Company exercises the option to terminate early. The variable lease payments that do not depend on an index or a rate are recognized as an expense in the period on which the event or condition that triggers the payment occurs.
In calculating the present value of the lease payments, the Company uses an incremental borrowing rate at the lease commencement date, if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of the lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the
in-substance
fixed payments or change in the assessment to purchase the underlying asset.
 
iii)
Short-term leases and leases of low value assets.
The Company applies the short-term lease recognition exemption for its leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the recognition exemption lease of
low-value
assets (that is, below US$ 5,000). Short-term lease payments and leases of
low-value
assets are recognized as expenses on straight-line basis over the lease term.
n) Financial assets and liabilities
Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them, with the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
 
Financial assets at amortized cost (debt instruments);
 
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Table of Contents
Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments);
 
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments); and
 
Financial assets at fair value through profit or lossloss.
Financial assets at amortized cost (debt instruments)
The Company measures financial assets at amortized cost if both of the following conditions are met:
 
The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows,flows; and
 
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstandingoutstanding.
Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired.
The Company’s financial assets at amortized cost includes cash equivalents loans and receivables.
Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
The Company measures debt instruments at fair value through OCI if both of the following conditions are met:
 
The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling,selling; and
 
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstandingoutstanding.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statements of profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss.
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)
Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32
Financial Instruments: Presentation
, and are not held for trading. The classification is determined on an instrument by instrument basis.
More details of these investments are disclosed in Note 4 to the accompanying consolidated financial statements.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other income in the consolidated statements of profit or losscomprehensive income when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.
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Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to
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be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.
Financial assets at fair value through profit or loss are carried in the statements of financial position at fair value with net changes in fair value recognized in the consolidated statements of comprehensive income within “Valuation of derivatives, interest cost from labor obligations and other financial items”.
Derecognition of financial assets
A financial asset is primarily derecognized when:
 
The rights to receive cash flows from the asset have expired, or
 
The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the assetasset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of its continued involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.
Impairment of financial assets
The Company recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next
12-months (a
(a
12-month
ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
For some trade receivables and contract assets
based on available information
, the Company applies the simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Company has established a
loss rate approach
that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment, including the impact by the COVID-19 pandemic.environment.
 
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Financial liabilities
Initial recognition
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognized in the statements of profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. The Company has not designated any financial liability as at fair value through profit or loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statements of profit or loss.
Derecognition of financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the consolidated statements of comprehensive income.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statements of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
 
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o) Transactions in foreign currency
Transactions in foreign currency are initially recorded at the prevailing exchange rate at the time of the related transactions. Foreign currency denominated assets and liabilities are subsequently translated at the prevailing exchange rate at the financial statements reporting date. Exchange differences determined from the transaction date to the time foreign currency denominated assets and liabilities are settled or translated at the financial statements reporting date are charged or credited to the results of operations.
In determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a
non-monetary
asset or
non-monetary
liability relating to advance consideration, the date of the transaction is the date on which the Company initially recognizes the
non-monetary
asset or
non-monetary
liability arising from the advance consideration. If there are multiple payments or receipts in advance, the Company determines the transaction date for each payment or receipt of advance consideration.
The exchange rates used for the translation of foreign currencies against the Mexican peso are as follows:
 
     
Average exchange rate
   
Closing exchange rate
at December 31,
      
Average exchange rate
   
Closing exchange rate
at December 31,
 
Country or Zone
  
Currency
  2019   2020   
2021
   2020   
2021
   
Currency
  2021   2022   
2023
   2022   
2023
 
Argentina
(1)
  Argentine Peso (AR$)   0.4110    0.3070   
 
0.2137
 
   0.2371   
 
0.2004
 
  Argentine Peso (AR$)   0.2137    0.1586   
 
0.0680
 
   0.1096   
 
0.0209
 
Brazil  Real (R$)   4.8907    4.1850   
 
3.7625
 
   3.8387   
 
3.6885
 
  Real (R$)   3.7625    3.9045   
 
3.5545
 
   3.7209   
 
3.4895
 
Colombia  Colombian Peso (COP$)   0.0059    0.0058   
 
0.0054
 
   0.0058   
 
0.0052
 
  Colombian Peso (COP$)   0.0054    0.0048   
 
0.0041
 
   0.0040   
 
0.0044
 
Guatemala  Quetzal   2.5023    2.7826   
 
2.6212
 
   2.5596   
 
2.6666
 
  Quetzal   2.6212    2.5981   
 
2.2675
 
   2.4725   
 
2.1584
 
U.S.A.
(2)
  US Dollar   19.2641    21.4860   
 
20.2769
 
   19.9487   
 
20.5835
 
  US Dollar   20.2769    20.1283   
 
17.7617
 
   19.4143   
 
16.8935
 
Uruguay  Uruguay Peso   0.5479    0.5110   
 
0.4655
 
   0.4712   
 
0.4605
 
  Uruguay Peso   0.4655    0.4893   
 
0.4574
 
   0.4845   
 
0.4329
 
Nicaragua  Cordoba   0.5817    0.6257   
 
0.5765
 
   0.5728   
 
0.5795
 
  Cordoba   0.5765    0.5611   
 
0.4875
 
   0.5359   
 
0.4613
 
Honduras  Lempira   0.7806    0.8678   
 
0.8384
 
   0.8215   
 
0.8396
 
  Lempira   0.8384    0.8171   
 
0.7184
 
   0.7853   
 
0.6819
 
Chile  Chilean Peso   0.0275    0.0271   
 
0.0268
 
   0.0281   
 
0.0244
 
  Chilean Peso (CLP$)   0.0268    0.0232   
 
0.0212
 
   0.0226   
 
0.0193
 
Paraguay  Guaraní   0.0031    0.0032   
 
0.0030
 
   0.0029   
 
0.0030
 
  Guaraní   0.0030    0.0029   
 
0.0024
 
   0.0026   
 
0.0023
 
Peru  Sol (PEN$)   5.7708    6.1483   
 
5.2297
 
   5.5046   
 
5.1484
 
  Sol (PEN$)   5.2297    5.2454   
 
4.7394
 
   5.0823   
 
4.5498
 
Dominican Republic  Dominican Peso   0.3737    0.3766   
 
0.3540
 
   0.3416   
 
0.3570
 
  Dominican Peso   0.3540    0.3647   
 
0.3163
 
   0.3436   
 
0.2893
 
Costa Rica  Colon   0.0326    0.0366   
 
0.0325
 
   0.0323   
 
0.0319
 
  Colon   0.0325    0.0310   
 
0.0324
 
   0.0323   
 
0.0321
 
European Union  Euro   21.5642    24.5080   
 
23.9835
 
   24.3693   
 
23.4220
 
  Euro   23.9835    21.2285   
 
19.2047
 
   20.7830   
 
18.6487
 
Bulgaria  Lev   11.0257    12.5284   
 
12.2617
 
   12.4594   
 
11.9762
 
  Lev   12.2617    10.8523   
 
9.8189
 
   10.6188   
 
9.5336
 
Belarus  New Belarusian Ruble   9.2159    8.8172   
 
7.9932
 
   7.5721   
 
8.0279
 
  New Belarusian Ruble   7.9932    7.3993   
 
6.4630
 
   7.0644   
 
6.1471
 
Croatia  Croatian Kuna   2.9069    3.2498   
 
3.1852
 
   3.2279   
 
3.1161
 
  Croatian Kuna   3.1852    2.8173   
 
2.5487
 
   2.7584   
 
2.4751
 
Macedonia  Macedonian Denar   0.3504    0.3975   
 
0.3893
 
   0.3950   
 
0.3800
 
  Macedonian Denar   0.3893    0.3445   
 
0.3119
 
   0.3378   
 
0.3038
 
Serbia  Serbian Denar   0.1830    0.2083   
 
0.2040
 
   0.2071   
 
0.1992
 
  Serbian Denar   0.2040    0.1807   
 
0.1638
 
   0.1772   
 
0.1593
 
 
(1)
Year-end
rates are used for the translation of revenues and expenses if IAS 29
“Financial Reporting in Hyperinflationary Economies”
is applied.
(2)
Includes Ecuador, El Salvador and Puerto Rico.
In December 2023, a new Argentine administration took office and called for new economic framework calling for liberalization of economic policy. This caused a major devaluation of the country’s currency, with the Argentine peso losing nearly 60% of its value
vis-á-vis
the U.S. dollar in December alone.
In addition, as of December 31, 2023, the Argentinean peso suffered a devaluation of its currency of 80.9%
year-to-date
against the Mexican peso, therefore, this matter is considered within the consolidated foreign currency exchange figure as of the date of the consolidated statement of comprehensive income.
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Financial reporting in hyperinflationary economies
Financial statements of Argentina subsidiaries are restated before translation to the reporting currency of the Company and before consolidation in order to reflect the same value of money for all items. Items recognized in the statements of financial position which are not measured at the applicable
year-end
measuring unit are restated based on the general price index. All
non-monetary
items measured at cost or amortized cost is restated for the changes in the general price index from the date of transaction or the last hyperinflationary calculation to the reporting date. Monetary items are not restated. All items of shareholders’ equity are restated for the changes in the general price index since their addition or the last hyperinflationary calculation until the end of the reporting period. All items of comprehensive income are restated for the change in a general price index from the date of initial recognition to the reporting date. Gains and losses resulting from the
net-position
of monetary items are reported in the consolidated
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statements of operations in financial result in exchange differences. In accordance with IFRS, prior year financial statements were not restated.
As of
A
p
ril
(2)
Includes U.S.A., Ecuador, El Salvador, Puerto Rico and Panama.
The [●], 2024, the exchange rate between the U.S. dollar and the Mexican peso was Ps. [●]. The appreciation of the Mexican peso against the US dollar and Mexican Peso for April 28, 2022 was 20.3560 per US dollar, which represents an appreciation of 1.11% as comparedrepresent [●]% with respect to December 31, 2021.the
year-end
value.
p) Accounts payable, accrued liabilities and provisions
Liabilities are recognized whenever (i) the Company has current obligations (legal or assumed) resulting from a past event, (ii) when it is probable the obligation will give rise to a future cash disbursement for its settlement, and (iii) the amount of the obligation can be reasonably estimated.
When the effect of the time value of money is significant, the amount of the liability is determined as the present value of the expected disbursements to settle the obligation. The discount rate is determined on a
pre-tax
basis and reflects current market conditions at the financial statements reporting date and, where appropriate, the risks specific to the liability. Where discounting is used, an increase in the liability is recognized as finance expense.
Contingent liabilities are recognized only when it is probable, they will give rise to a future cash disbursement for their settlement.
q) Employee benefits
The Company has defined benefit pension plans for its subsidiaries Puerto Rico Telephone Company, Teléfonos de Mexico,Telmex, Claro Brasil,S.A., and Telekom Austria. Claro BrasilS.A. also has medical plans and defined contribution plans and Telekom Austria provides retirement benefits to its employees under a defined contribution plan. The Company recognizes the costs of these plans based upon independent actuarial computations and are determined using the projected unit credit method. The latest actuarial computations were prepared as of December 31, 2021.2023.
Mexico
Mexican subsidiaries have the obligation to pay seniority premiums to personnel based on the Mexican Federal Labor Law which also establishes the obligation to make certain payments to personnel who cease to provide services under certain circumstances. Pensions (for Telmex) and seniority premiums are determined based on the salary of employees in their final year of service, the number of years worked at and their age at the moment of retirement.
The costs of pensions, seniority premiums and severance benefits, are recognized based on calculations by independent actuaries using the projected unit credit method using financial hypotheses, net of inflation.
Telmex has established an irrevocable trust fund and makes annual contributions to that fund.
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Puerto Rico
In Puerto Rico, the Company has noncontributing pension plans for full-time employees, which are tax qualified as they meet Employee Retirement Income Security Act of 1974 requirements.
The pension benefit is composed of two elements:
(i) An employee receives an annuity at retirement if they meet the rule of 85 (age at retirement plus accumulated years of service). The annuity is calculated by applying a percentage times year of services to the last three years of salary.

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(ii) The second element is a
lump-sum
benefit based on years of service ranging from 9 to 12 months of salary. Health care and life insurance benefits are also provided to retirees under a separate plan (post-retirement benefits).

Brazil
Claro BrasilS.A. provides a defined benefit plan and post-retirement medical assistance plan, and a defined contribution plan, through a pension fund that supplements the government retirement benefit for certain employees.
Under the defined benefit plan, the Company makes monthly contributions to the pension fund equal to 17.5%
of the employee’s aggregate salary. In addition, the Company contributes a percentage of the aggregate salary base for funding the post-retirement medical assistance plan for the employees who remain in the defined benefit plan. Each employee makes contributions to the pension fund based on age and salary. All newly hired employees automatically adhere to the defined contribution plan and no further admittance to the defined benefit plan is allowed. For the defined contribution plan. See Note 18.
Austria
Telekom Austria provides retirement benefits to its employees under defined contribution and defined benefit plans.
The Company pays contributions to publicly or privately administered pension or severance insurance plans on mandatory or contractual basis. Once the contributions have been paid, the Company has no further payment obligations. The regular contributions are recognized as employee expenses in the year in which they are due.
All other employee benefit obligations provided in Austria are unfunded defined benefit plans for which the Company records provisions which are calculated using the projected unit credit method. The future benefit obligations are measured using actuarial methods on the basis of an appropriate assessment of the discount rate, rate of employee turnover, rate of compensation increase and rate of increase in pensions.
For severance and pensions, the subsidiary recognizes actuarial gains and losses in other comprehensive income. The
re-measurement
of defined benefit plans relates to actuarial gains and losses only as Telekom Austria holds no plan assets. Interest expense related to employee benefit obligations is reported in “Valuation of derivatives, interests cost from labor obligation and other financial items, net” in the statements of comprehensive income.
Other subsidiaries
For the rest of the Company’s subsidiaries, there are no defined benefit plans or compulsory defined contribution structures. However, certain subsidiaries make contributions to national pension, social security and severance plans in accordance with the percentages and rates established by the applicable social security and labor laws of each country. Such contributions are made to the entities designated by the countries legislation and are recorded as direct labor expenses in the consolidated statements of comprehensive income as they are incurred.
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Remeasurements of defined benefit plans, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding net interest and the return on plan assets (excluding net interest), are recognized immediately in the consolidated statements of financial position with a corresponding debit or credit to retained earnings“Remeasurement of defined benefit plan” through OCI in the period in which they occur.
Re-measurements
are not reclassified to profit or loss in subsequent periods.
Past service costs are recognized in profit or loss on the earlier of:
 
(i)
The date of the plan amendment or curtailment,curtailment; and
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(ii)
The date that the Company recognizes restructuring-related costs
costs.
Net interest on liability for defined benefits is calculated by applying the discount rate to the net defined benefit liability or asset and it is recognized in the “valuation of derivatives, interest cost from labor obligations and other financial items” in the consolidated statements of comprehensive income. The Company recognizes the changes in the net defined benefit obligation under “Cost of sales and services” and “Commercial, administrative and general expenses” in the consolidated statements of comprehensive income.
Paid absences
The Company recognizes a provision for the cost of paid absences, such as vacation time, based on the accrual method.
r) Employee profit sharing (“EPS”)
Employee profit sharingEPS is paid by certain subsidiaries of the Company to its eligible employees. The Company has employee profit sharing in Mexico, Ecuador and Peru. In Mexico, employee profit sharing is computed at the rate of 10% on the individual subsidiaries taxable base adjusted for employee profit sharing purposes as provided by law.
Employee profit sharing is presented as an operating expense in the consolidated statements of comprehensive income.
The amendment to the Federal Labor Law in Mexico dated April 23, 2021 established a limit on the amount to be paid for profit sharing to employees, which indicates that the amount of EPS assigned to each employee may not exceed the equivalent of three months of the employee’s current salary, or the average EPS received by the employee in the previous three years, whichever is greater. If the EPS determined is less than or equal to this limit, the EPS will be determined by applying 10% of the individual company taxable income. If the EPS determined exceeds this limit, the limit would apply and this should be considered the EPS for the period.
s) Taxes
Income taxes
Current income tax payable is presented as a short-term liability, net of prepayments made during the year.
Deferred income tax is determined using the liability method based on the temporary differences between the tax values of the assets and liabilities and their book values at the consolidated financial statements reporting date.
Deferred tax assets and liabilities are measured using the tax rates that are expected to be in effect in the period when the asset will materialize or the liability will be settled, based on the enacted tax rates (and tax legislation) that have been enacted or substantially enacted at the financial statements reporting date. The value of deferred tax assets is reviewed by the Company at each financial statement reporting date and is reduced to the extent that it is more likely that the Company will not have sufficient future tax profits to allow for the realization of all or a
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part of its deferred tax assets. Unrecognized deferred tax assets are revalued at each financial statement reporting date and are recognized when it is more likely that there will be sufficient future tax profits to allow for the realization of these assets.
Deferred taxes relating to items recognized in Other Comprehensive Income are recognized together with the concept that generated such deferred taxes. Deferred taxes consequence on unremitted earnings from subsidiaries and associates are considered as temporary differences, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Taxes withheld on remitted foreign earnings are creditable against Mexican taxes, thus to the extent that a remittance is to be made, the deferred tax would be limited to the incremental difference between the Mexican tax rate and the rate of the remitting country. As of December 31, 20202022 and 2021,2023, the Company has not provided for any deferred taxes related to unremitted foreign earnings.
The Company offsets tax assets and liabilities if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
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Sales tax
Revenues, expenses and assets are recognized net of the amount of sales tax, except:
 
When the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the sales tax is recognized as part of the cost of acquisition of the asset or as part of the expense item, as applicable.
 
Receivables and payables that are stated with the amount of sales tax included.
The net amount of sales tax recoverable from, or payable to, the tax authorities is included as part of the current receivables or payables in the consolidated statements of financial position unless they are due in more than a year in which case they are classified as
non-current.
Uncertainty over Income Tax Treatments
The acceptability of a particular tax treatment under tax law may not be known until the tax authority or courts of justice reach a decision in the future. Consequently, a dispute or inspection of a specific tax treatment by the tax authority could affect the accounting of the asset or liability for current or deferred taxes by the Company.
In accordance with IFRIC 23
Uncertainty over Income Tax Treatments
, the Company determines each uncertain tax treatment based on the approach that best predicts the resolution of the uncertainty.
To determine the approach that best predicts the resolution of the uncertainty, the Company may consider, for example:
(a) How does the Company prepare their income tax return and support such tax treatments and how it sustains the tax treatments.
(b) How does the Company expect that the tax authority
carry-out
its inspection and resolve the issues that arise from the aforementioned inspection.
The Company must disclose in the notes to the consolidated financial statements what is mentioned below:
1) The Company must determine whether the uncertain tax treatments will be evaluated separately or as a whole;
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2) The Company will assume that the authority will examine the tax situation and will be aware of considering all information relevant to said treatment;
3) If it is concluded that it is unlikely that the authority will accept an uncertain fiscal position, the effect of the uncertainty will be reflected when determining its accounting fiscal position, estimating the effect based on the following methods:
a) Most probable quantity – is the only quantity in a range of possible outcomes that can be predicted by the resolution of the uncertainty; either,
b) Expected value – is the value resulting from the sum of the different amounts weighted by their probability of occurrence, in a range of possible results. The expected value is the one that can best predict the resolution of the uncertainty, if there is a range of possible outcomes.
4) If the uncertain tax treatment affects the tax base for tax (caused) and deferred tax, the Company must make consistent judgments and estimates in the determination of both taxes; and
5) The Company must reassess a judgment or estimate of an uncertain tax treatment and its effects, if the facts and circumstances on which they were initially based change, or if new information arises that affects the judgment or estimate. ´
The effects should be recognized as a change in an accounting estimate based on the provision of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
t) Advertising
Advertising expenses are recognized as incurred. For the years ended December 31, 2019, 20202021, 2022 and 2021,2023, advertising expenses were Ps. 13,100,877,11,118,723, Ps. 11,157,49512,676,350 and Ps. 12,018,53611,781,250 respectively, and are presented in the consolidated statements of comprehensive income in the caption “Commercial, administrative and general expenses”.
u) Earnings per share
Basic and diluted earnings per share are determined by dividing net profit of the year by the weighted-average number of shares outstanding during the year. In determining the weighted average number of outstanding shares, shares repurchased by the Company have been excluded.
v) Financial risks
The main risks associated with the Company’s financial instruments are: (i) liquidity risk, (ii) market risk (foreign currency exchange risk and interest rate risk) and (iii) credit risk and counterparty risk. The Board of Directors approves the policies submitted by management to mitigate these risks.
i) Liquidity risk
Liquidity risk is the risk that the Company may not meet its financial obligations associated with financial instruments when they are due. The Company’s financial obligations and commitments are included in Notes 14 and 17.
ii) Market risk
The Company is exposed to certain market risks derived from changes in interest rates and fluctuations in exchange rates of foreign currencies. The Company’s debt is denominated in foreign currencies, mainly in
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US dollars and euros, other than its functional currency. In order to reduce the risks related to fluctuations in the exchange rate of foreign currency, the Company uses derivative financial instruments such as cross-currency swaps and forwards to adjust exposures resulting from foreign exchange currency. The Company does not use derivatives to hedge the exchange risk arising from having operations in different countries.
Additionally, the Company occasionally uses interest rate swaps to adjust its exposure to the variability of the interest rates or to reduce their financing costs. The Company’s practices vary from time to time depending on judgments about the level of risk, expectations of change in the movements of interest rates and the costs of using derivatives. The Company may terminate or modify a derivative financial instrument at any time. See Note 7 for disclosure of the fair value of derivatives as of December 31, 20202022 and 2021.2023.
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iii) Credit risk
Credit risk represents the loss that could be recognized in case the counterparties fail to comply with their contractual obligations.
The financial instruments that potentially represent concentrations of credit risk are cash and short-term deposits, trade accounts receivable and financial instruments related to debt and derivatives. The Company’s policy is designed in order to limit its exposure to any one financial institution; therefore, the Company’s financial instruments are contracted with several different financial institutions located in different geographic regions.
The credit risk in accounts receivable is diversified because the Company has a broad customer base that is geographically dispersed. The Company continuously evaluates the credit conditions of its customers and generally does not require collateral to guarantee collection of its accounts receivable. The Company monitors on a monthly basis its collection cycle to avoid deterioration of its results of operations.
A portion of the Company’s cash surplus is invested in short- term deposits with financial institutions with high credit ratings.
iv) Sensitivity analysis for market risks
The Company uses sensitivity analysis to measure the potential losses based on a theoretical increase of 100 basis points in interest rates and a 5% fluctuation in exchange rates:
Interest rate
In the event that the Company’s agreed-upon interest rates at December 31, 2021 2023 and 2022 increase/decrease by 100
basis points and a 5.23%5.68% and 6.33%, respectively, fluctuation in exchange rates between the Mexican Peso and US Dollar, the net interest expense would increase by Ps.8,046,987 and Ps. 1,828,215, respectively; and (decrease) by Ps.
(1,188,821)(4,941,344) and Ps.
(14,606,005) (11,128,215), respectively.
Exchange rate fluctuations
ShouldIf the Company’s debt at December 31, 20212023 and 2022 of Ps.564,030,102, if sufferPs. 500,677,051 and Ps. 510,589,480, respectively, were to be impacted by a 5% increase/(decrease) in exchange rates, the debt would increase/(decrease) by Ps. 28,394,119525,710,904 and Ps. (28,019,972)536,118,954, respectively; or Ps. (475,643,199) and Ps. (485,060,006), respectively.
w) Derivative financial instruments
Derivative financial instruments are recognized in the consolidated statements of financial position at fair value. Valuations obtained by the Company are compared against those of the financial institutions with which the agreements are entered into, and it is the Company’s policy to compare such fair value to a valuation provided by
F-3
3

an independent pricing provider in case of discrepancies. Changes in the fair value of derivatives that do not qualify as hedging instruments are recognized immediately in the line “Valuation of derivatives, interest cost from labor obligations and other financial items, net”.
The Company is exposed to interest rate and foreign currency risks, which tries to mitigate through a controlled risk management program that includes the use of derivative financial instruments. The Company principally uses to attempt to offset the risk of exchange rate and interest rate fluctuations. Additionally, for the years ended December 31, 2019, 20202021, 2022 and 20212023 certain of the Company’s derivative financial instruments had been designated, and had qualified, as cash flow hedges. The effective portion of gains or losses on the cash flow derivatives is recognized in equity under the heading “Effect for“Unrealized (loss) gain on equity investment at fair value of derivatives”value”, and the ineffective portion is charged to results of operations of the period.
F-
32

x) Current versus
non-current
classification
The Company presents assets and liabilities in its consolidated statements of financial position based on
current/non-current
classification.
An asset is current when it is either:
 
(i)
Expected to be realized or intended to be sold or consumed in the normal operating cycle.
 
(ii)
Held primarily for the purpose of trading.
 
(iii)
Expected to be realized within twelve months after the reporting period.
 
(iv)
Cash and cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
A liability is current when:
 
It is expected to be settled in the normal operating cycle.
 
It is held primarily for the purpose of trading.
 
It is due to be settled within twelve months after the reporting period.
 
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Company classifies all other assets and liabilities, including deferred income tax assets and liabilities, as
non-current.
y) Presentation of consolidated statements of comprehensive income
The costs and expenses shown in the consolidated statements of comprehensive income are presented in combined manner (based on both their function and nature), which allows a better understanding of the components of the Company’s operating income. This classification allows a comparison to the telecommunications industry.
The Company presents operating income in its consolidated statements of comprehensive income since it is a key indicator of the Company’s performance. Operating income represents operating revenues less operating costs and expenses.
z) Operating segments
Segment information is presented based on information used by management in its decision-making processes. Segment information is presented based on the geographic areas in which the Company operates.
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4

The management of the Company is responsible for making decisions regarding the resources to be allocated to the Company’s different segments, as well as evaluating the performance of each segment. Intersegment revenues and costs, intercompany balances as well as investments in shares in consolidated entities are eliminated upon consolidation and reflected in the “eliminations” column in Note 23.
None of the segment’s records revenue from transactions with a single external customer amounting to 10% or more of the revenues.
Aa) Convenience translation
The consolidated financial statements are stated in thousands of Mexican pesos (“Ps.”); however, solely for the convenience of the readers, the consolidated statement of financial position as of December 31, 20212023 and the
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33

consolidated statement of comprehensive income and consolidated statement of cash flows for the year ended December 31, 20212023 were converted into U.S. dollars at the exchange rate of Ps.
20.5835 16.8935 per U.S. dollar, which was the exchange rate at that date. This arithmetic conversion should not be construed as representations that the amounts expressed in Mexican pesos may be converted into U.S. dollars at that or any other exchange rate.
Ab) Significant accounting judgments, estimates and assumptions
In preparing its consolidated financial statements, the Company makes estimates concerning a variety of matters. Some of these matters are highly uncertain, and its estimates involve judgments it makes based on the available information. In the discussion below, the Company has identified several of these matters for which its financial statements would be materially affected if either (1) the Company uses different estimates that it could have reasonably used or (2) in the future América Móvil changes its estimates in response to changes that are reasonably likely to occur.
The following discussion addresses only those estimates that the Company considers most important based on the degree of uncertainty and the likelihood of a material impact had it used a different estimate. There are many other areas in which the Company uses estimates about uncertain matters, but the reasonably likely effect of changed or different estimates is not material to the financial presentation for those other areas.
Estimated useful lives of property, plant property and equipment
The Company currently depreciates most of its network infrastructure based on an estimated useful life determined upon the expected particular conditions of operation and maintenance in each of the countries in which it operates. The estimates are based on AMX’s historical experience with similar assets, anticipated technological changes and other factors, taking into account the practices of other telecommunications companies. The Company reviews estimated useful lives each year to determine, for each particular class of assets, whether they should be changed. The Company may shorten/extend the estimated useful life of an asset class in response to technological changes, changes in the market or other developments. This results in increased/decreased depreciation expense. See Note 10.
Revaluation of passive infrastructure of telecommunications towers
The Company recognizes the passive infrastructure of the telecommunication towers at fair value, recognizing the changes in OCI. The discounted cash flow model was used. The Company hired a valuation specialist with industry experience to measure fair values as of December 31, 2021
2023.
Impairment of Long-Lived Assets
The Company has large amounts of long-lived assets, including property, plant and equipment, intangible assets, investments in affiliates and goodwill on its consolidated statements of financial position. The Company is required to test long-lived
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5

assets for impairment when circumstances indicate a potential impairment or, in some cases, at least on an annual basis. The impairment analysis for long-lived assets requires the Company to estimate the recoverable amount of the asset, which is the higher of its fair value (minus any disposal costs) and its value in use. To estimate the fair value of a long-lived asset, the Company typically takes into account recent market transactions or, if no such transactions can be identified, the Company uses a valuation model that requires making certain assumptions and estimates. Similarly, to estimate the value in use of long-lived assets, the Company typically makes various assumptions about the future prospects for the business to which the asset relates, considers market factors specific to that business and estimates future cash flows to be generated by that business. Based on this impairment analysis, including all assumptions and estimates related thereto, as well as guidance provided by IFRS relating to the impairment of long-lived assets different assumptions and estimates could materially impact the Company’s reported financial results. More conservative assumptions of the anticipated future benefits from these businesses could result in impairment charges, which would decrease net
F-3
4

income and result in lower asset values on the consolidated statements of financial position. Conversely, less conservative assumptions could result in smaller or no impairment charges, higher net income and higher asset values. The key assumptions used to determine the recoverable amount for the Company’s CGUs, are further explained in Notes 23, 10 and 11.
Deferred Income Taxes
The Company is required to estimate its income taxes in each of the jurisdictions in which it operates. This process involves the
jurisdiction-by-jurisdiction
estimation of actual current tax exposure and the assessment of temporary differences resulting from the differing treatment of certain items, such as accrualsprovisions and amortization, for tax and financial reporting purposes, as well as net operating loss carry-forwards and other tax credits. These items result in deferred tax assets and liabilities as discussed in Note 2 s). The analysis is based on estimates of taxable income in the jurisdictions in which the Company operates and the period on which the deferred tax assets and liabilities will be recovered or settled. If actual results differ from these estimates, or the Company adjusts these estimates in future periods, its financial position and results of operations may be materially affected.
In assessing the future realization of deferred tax assets, the Company considers future taxable income, ongoing planning strategies and future results in its operations. In the event that the estimates of projected future taxable income are lowered, or changes in current tax regulations are enacted that would impose restrictions on the timing or extent of the ability to utilize the tax benefits of net operating loss carry-forwards in the future, an adjustment to the recorded amount of deferred tax assets would be made, with a related charge to income. See Note 13.
AccrualsProvisions
AccrualsProvisions are recorded when, at the end of the period, the Company has a present obligation as a result of past events, whose settlement requires an outflow of resources that is considered probable and can be measured reliably. This obligation may be legal or constructive, arising from, but not limited to, regulation, contracts, common practice or public commitments, which have created a valid expectation for third parties that the Company will assume certain responsibilities. The amount recorded is the best estimation performed by the Company’s management in respect of the disbursement that will be required to settle the obligations, considering all the information available at the date of the consolidated financial statements, including the opinion of external experts, such as legal advisors or consultants. AccrualsProvisions are adjusted to account for changes in circumstances for ongoing matters and the establishment of additional accrualsprovisions for new matters.
If the Company is unable to reliably measure the obligation, no accrualprovision is recorded, and information is then presented in the notes to its consolidated financial statements. Because of the inherent uncertainties in these estimations, actual expenditures may be different from the originally estimated amount recognized. See Note 16.
The Company is subject to various claims and contingencies related to tax, labor and legal proceedings as described in Note 17b).
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6

Labor Obligations
The Company recognizes liabilities on its consolidated statements of financial position and expenses in its statements of comprehensive income to reflect its obligations related to its post-retirement seniority premiums, pension and retirement plans in the countries in which it operates and offer defined contribution and benefit
pension plans. The amounts the Company recognizes are determined on an actuarial basis that involves estimations and accounts for post-retirement and termination benefits.
The Company uses estimates in four specific areas that have a significant effect on these amounts: (i) the rate of return the Company assumes its pension plans will earn on its investments, (ii) the salaries increase rate that the
F-3
5

Company assumes it will observe in future years, (iii) the discount rates that the Company uses to calculate the present value of its future obligations and (iv) the expected inflation rate. The assumptions applied are further
disclosed in Note 18. These estimates are determined based on actuarial studies performed by independent experts using the projected unit-credit method.
Ac) Discontinued operations
a) Joint Venture
On October 6, 2022, LLA and the Company announced that they completed the transaction to combine their operations in Chile (VTR and Claro Chile, respectively) in order to create a 50:50 joint venture known as ClaroVTR.
In accordance with IFRS 11, this transaction was classified as a joint venture, since both LLA and the Company exercise joint control over ClaroVTR, and all relevant decisions require the consent of both parties. Consequently, in accordance with IFRS 5, Claro Chile’s operations are classified as discontinued operations for all the years that are presented in the consolidated financial information and from that date they are recognized by applying the equity method. See Note 12b.
The results of discontinued operations are as follows:
   For the years
ended as of
December 31,2021
  For the period
ended as of
October 6, 2022
 
Operating revenue:
   
Service revenues
  Ps.17,276,464  Ps.10,500,087 
Sales of equipment
   4,508,925   2,626,823 
  
 
 
  
 
 
 
   21,785,389   13,126,910 
Total costs and expenses
   22,892,415   14,954,526 
  
 
 
  
 
 
 
Operating loss
   (1,107,026  (1,827,616
Financial costs
   (533,899  (685,129
  
 
 
  
 
 
 
Loss before income taxes of discontinued operations
   (1,640,925  (2,512,745
Income taxes:
   (4,578,004  (1,805,500
  
 
 
  
 
 
 
Net profit (loss) of the period from discontinued operations
  Ps.2,937,079  Ps.(707,245
  
 
 
  
 
 
 
The effect of the deconsolidation of Claro Chile, S.A. as of October 6, 2022, resulted in the recognition of a loss after tax from discontinued operations of Ps. 707,245, including a recycling income of accumulated foreign currency translation effect for an amount of Ps. 6,943,753. Therefore, Claro Chile is deconsolidated from the aforementioned date and no impairment loss was identified.
b)
Claro Panama Disposal
On September 14, 2020,15, 2021, the Company announced that it hahad entered into an agreement with Cable & Wireless Panama, S.A., an affiliate of Liberty Latin America to sell its 100% interest in its subsidiary Claro Panama. The
d
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7

transaction excludes the telecommunications towers that are owned indirectly by the Company in Panama and the Claro trademarks. The agreed purchase price was US$200 million, adjusted for net debt (cash/debt free basis). The closing of the transaction would be subject to customary conditions for this type of transaction, including obtaining regulatory authorizations. On July 1, 2022, the Company announced that it had completed the sale to Liberty Latin America of its 100% interest in Claro Panama.
The Company received an adjusted closing consideration of US$ 116.7 million in cash, resulting in a net gain of Ps. 3,405,014, including a recycling loss of accumulated foreign currency translation effect for an amount of Ps. 1,750,451. This gain has been recognized in profit after tax for the period from discontinued operations in the consolidated statement of comprehensive income. Therefore, Claro Panama is deconsolidated from the aforementioned date and no impairment loss was identified.
In accordance with IFRS 5
Non-current
Assets Held For Sale and Discontinued Operations, Claro Panama was classified as discontinued operation for all the years presented in these consolidated financial statements; consequently, the results are presented in the loss after tax for the period from discontinued operations in the consolidated statements of comprehensive income. Therefore, the comparative figures in the consolidated statements of comprehensive income have been restated in consequence at that time.
The deconsolidated assets and liabilities of Claro Panama as of the date of disposal were the following:
As of July 1,
2022
Current assets:
Cash
Ps.24,202
Account receivable to subscribers, distributors and others Net
666,114
Inventories, net
169,851
Other assets, net
4,457
Total current assets
864,624
Non-current
assets:
Property, plant and equipment
1,102,062
Intangibles, net
1,810,964
Account receivables to subscribers, distributors and others, Net
42,368
Other assets, net
12,291
Right-of-use
975,019
Total assets
Ps.4,807,328
Short term liability related to
right-of-use
assets
Ps.198,289
Accounts payable
576,522
Payable taxes
24,981
Related parties
1,159
Deferred income
126,904
Long term liability related to
right-of-use
assets
Ps.855,969
Deferred income
129,062
Total liabilities
1,912,886
Net assets directly related to the Group’s disposal
Ps.2,894,442
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8

The results of discontinued operations for the year are shown below:
   For the year ended December 31,  July 1
st
.
 
    2021    2022  
Operating revenue:
   
Revenue services
   Ps.  2,667,497   Ps. 1,210,109 
Sales of equipment
   394,534   206,595 
  
 
 
  
 
 
 
   3,062,031   1,416,704 
Total costs and expenses
   3,378,614   1,403,311 
  
 
 
  
 
 
 
Operating (loss) profit
   (316,583  13,393 
Financial costs
   (89,974  (39,538
Gain on sale of discontinued operations
   —    3,405,014 
(Loss) profit before income taxes from discontinued operations
   (406,557  3,378,869 
Income taxes:
   5,297   —  
  
 
 
  
 
 
 
Net (loss) profit of the period of discontinued operations
   Ps.   (411,854  Ps. 3,378,869 
  
 
 
  
 
 
 
c)
TracFone Disposal
On September 14, 2021, the Company, announced that it had entered into an agreement with Verizon Communications Inc. (“Verizon”) to sell its 100% interest in its subsidiary TracFone Wireless, Inc. (“TracFone”), the largest mobile virtual prepaid service operator in the United States, serving 21 million subscribers. On November 23, 2021, the Company announced that it ha
d
had completed the sale of its 100% interest in TracFone to Verizon.
AMX received a closing consideration of US$3,625.7 million in cash, which includes US$500.7 million related to TracFone’s closing cash and working capital, customary adjustment and other adjustments, and 57,596,544 shares of Verizon stock valued at approximately US$2,968 million.
Verizon has asserted post-closing claims under the adjustments and other provisions of this agreement, which may result in payments by the Company. Following
the
transaction
closing, Verizon shall pay to AMX: (i) up to US$500 million as an
earn-out
if TracFone continues to achieve certain performance measures during the 24 months following the closing, calculated and paid in 4four consecutive
six-month
semesters
periods, and (ii) US$150 million deferred consideration payable within two years following the
transaction
closing. The
earn-out
was not recognized as gain by the Company, in accordance with
IFRS 9 and 13 and
IAS 37,
,
since
management does not believe the realization of income
and the inflow of economic benefits are virtually certain.
TracFone was deconsolidated from that date resulting in a
net
gain of Ps. 106,527,287
including the recycling of foreign currency exchange losses accumulated in equity. This gain has been recognized under profit after tax from discontinued operations in the consolidated statements of comprehensive income. Furthermore, no impairment loss was identified. Moreover, TracFone had identifiable operations and cash flows and represented a separate geographical area. Therefore, in accordance with IFRS 5, TracFone was classified as discontinued operations for all years presented in these consolidated financial statements; results wereare accordingly presented as a single amount asin the profit after tax from discontinued operations in the consolidated statements of comprehensive income. The consolidated statements of comprehensive income comparative figures have therefore been restated accordingly. accordingly, at that time.
All other notes to the consolidated financial statements include amounts for continuing operations, unless indicated otherwise.
 
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Additionally, TracFone represented the U.S.A. segment until November 23, 2021. With TracFone being classified as discontinued operations, the U.S.A. segment is no longer presented in the segment note. The results of TracFone for the year are presented below:
 
  
For the years ended December 31
 
 2019  2020  
2021
 
Operating revenues:
             
Service revenues
  Ps.131,403,268  Ps.149,376,532  Ps.130,091,540 
Sales of equipment
   24,461,125   27,802,837   22,160,481 
   
 
 
  
 
 
  
 
 
 
    155,864,393   177,179,369   152,252,021 
Total costs and expenses
   144,822,141   157,327,836   134,495,316 
   
 
 
  
 
 
  
 
 
 
Operating income
   11,042,252   19,851,533   17,756,705 
   
 
 
  
 
 
  
 
 
 
Financial cost
   (77,884  (2,026  (1,733
Gain on disposal of discontinued operations
   0     0     132,821,709 
   
 
 
  
 
 
  
 
 
 
Profit before income tax discontinued operations
   10,964,368   19,849,507   150,576,681 
   
 
 
  
 
 
  
 
 
 
Tax expense:
             
Related to pre-tax profit from the ordinary activities for the period
   1,119,479   2,856,882   2,571,541 
Related to gain on disposal from discontinued operations
   0     0   26,294,422 
   
 
 
  
 
 
  
 
 
 
Net profit for the year from discontinued operations
  Ps.9,844,889  
Ps.

16,992,625  Ps.121,710,718 
   
 
 
  
 
 
  
 
 
 
For the years ended
December 31
2021
Operating revenues:
Service revenues
Ps.130,091,540
Sales of equipment
22,160,481
152,252,021
Total costs and expenses
134,495,316
Operating income
17,756,705
Financial cost
(1,733
Gain on disposal of discontinued operations
132,821,709
Profit before income tax discontinued operations
150,576,681
Tax expense:
Related to
pre-tax
profit from the ordinary activities for the period
2,571,541
Related to gain on disposal from discontinued operations
26,294,422
Net profit for the year from discontinued operations
Ps.121,710,718
The assets and liabilities deconsolidated on the date of the disposal were as follows:
 
   
November 23,
 
   
2021
 
Current assets
  
Cash
  
Ps.
338,439
Subscribers, distributors, recoverable taxes, contract assets and other net
  
12,368,407
Inventories, net
  
9,604,658
Other current assets, net
  
389,052
  
 
 
 
Total current assets
  
22,700,556
Non-current
assets:
  
Property, plant and equipment
  
1,989,498
Intangibles, net
  
555,012
Goodwill
  
2,695,557
Deferred income taxes
  
1,094,756
Other assets, net
  
327,546
Rights of use
  
1,625
  
 
 
 
Total assets
  
Ps.
29,364,550
  
 
 
 
Short term liability related to rigthright of use of assets
  
Ps.
1,625
Accounts payable
  
17,446,513
Income tax
  
3,267,585
Deferred revenue
  
13,187,667
  
 
 
 
Total liabilities
  
33,903,390
  
 
 
 
Net
liability
directly associated with disposal group
  
Ps.
(4,538,840
  
 
 
 
 
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740

Furthermore, pursuant to the Stock Purchase Agreement, the Company agreed to indemnify Verizon against pre-closing tax matters. As of the closing, certain tax related matters had not been resolved, and Verizon has asserted post-closing claims under the adjustments and other provisions of this agreements, which may result in payments by us. 
Ad)
Reclassification
The Company reclassified Ps. 4,540,344
from current
equity investments at fair value through other comprehensive income (OCI) to non-current
debt instruments at fair value through other comprehensive income (OCI)
as of December 31, 2020.
Note 3. Cash and Cash Equivalents
Cash and cash equivalents are comprised of short-term deposits with different financial institutions. Cash equivalents only include instruments with purchased maturity of less than three months. The amount includes the amount deposited, plus any interest earned.
Note 4. Equity
and debt
investments at fair value through OCI and other short/long-term investments
As of December 31, 20202022 and 2021,2023, equity investments at fair value through OCI and other short-term investments includes an equity investment in Koninklijke KPN N.V (hereinafter, KPN) for Ps. 50,033,11144,371,166 and Ps. 56,087,598
,33,549,372, respectively, other short-term investments for Ps. 62,9403,523,883 in 2023, and Ps. 15,026, respectively,an equity investment in Verizon for
Ps. 61,600,578 in December 31,
2021.
44,056,945 and Ps. 36,682,372, respectively.
The investment
s
investments in KPN, Verizon and other
s
,others, are carried at fair value with changes in fair value being recognized through other comprehensive (loss) gain items (equity) in the Company’s consolidated statements of financial position.income. As of December 31, 20202022 and 2021,2023, the Company has recognized in equity changes in fair value of Ps. (1,952,414)(4,707,276) and Ps. 4,560,869(967,609) respectively, net of deferred taxes.
During the years endedAs of December 31, 2019, 20202022 and 2021,2023, the Company received dividends from KPN forhas recognized an amountincome related to the
earn-out
stipulated in the Verizon’s contract, of Ps. 1,742,2424,271,250 and Ps. 2,119,668 and Ps. 2,628,600,2,206,671, respectively, which are included within “Valuation of derivatives, interest cost from labor obligations, and other financial items, net” in the consolidated statements of comprehensive income.
During the years ended December 31, 2021, 2022 and 2023, the Company recognized dividend income from KPN for an amount of Ps. 2,628,600, Ps. 2,459,637 and Ps. 1,867,184, respectively, also for Verizon for an amount of Ps. 3,696,356 and Ps. 2,684,643 in 2022 and 2023, respectively, which are included within “Valuation of derivatives, interest cost from labor obligations, and other financial items, net” in the consolidated statements of comprehensive income.
As of December 31, 20202022 and 20212023 long-term debt instrumentinstruments at fair value through OCI for Ps. 4,540,3446,981,149 and Ps. 6,894,757,14,914,412, respectively.
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3
8

Note 5. Accounts receivable from subscribers, distributors, recoverable taxes contractual assets and other, net

a)
An analysis of accounts receivable by component at December 31, 20202022 and 20212023 is as follows:

   
At December 31,
 
   2020  
2021
 
Subscribers and distributors
  
 

Ps. 168,758,386   
Ps. 157,433,609
 
Telecommunications carriers for network interconnection and other services
   4,914,094  
 
3,968,675
 
Recoverable taxes
   44,557,402  
 
43,734,164
 
Sundry debtors
   12,504,566  
 
15,573,586
 
Contract assets
   29,588,104  
 
30,901,277
 
Impairment of trade receivables
   (44,551,735 
 
(41,835,826
   
 
 
  
 
 
 
Total net
   Ps. 215,770,817   
Ps. 209,775,485
 
Non-current subscribers, distributors and contractual assets
       7,792,863   
    6,928,888
 
   
 
 
  
 
 
 
Total current subscribers, distributors and contractual assets
   Ps. 207,977,954   
Ps. 202,846,597
 
   
 
 
  
 
 
 
   
At December 31,
 
   2022   
2023
 
Subscribers and distributors
   Ps.154,659,093   
 
Ps.156,569,986
 
Telecommunications carriers for network interconnection and
other services
   3,519,170   
 
2,960,653
 
Recoverable taxes
   46,947,187   
 
57,501,535
 
Sundry debtors
   16,528,588   
 
12,302,877
 
Contract assets
   28,573,717   
 
25,062,219
 
Allowance of expected credit losses
   (42,079,056  
 
(38,194,997
  
 
 
   
 
 
 
Total net
   Ps.208,148,699   
 
Ps.216,202,273
 
Non-current
subscribers, distributors and contractual assets
   8,724,497   
 
9,400,123
 
  
 
 
   
 
 
 
Total current subscribers, distributors and contractual assets
   Ps.199,424,202   
 
Ps.206,802,150
 
  
 
 
   
 
 
 
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41

b) Changes in the impairmentallowance of trade receivablesthe expected credit losses is as follows:
 
   
For the years ended December 31,
 
   2019   2020   
2021
 
Balance at beginning of year
   Ps.(40,798,025   Ps.(39,480,909  
 
Ps.(44,551,735
Increases recorded in expenses
   (16,346,395   (19,112,635  
 
(10,677,421
Write-offs
 
(i)
   17,839,957    11,953,227   
 
11,682,343
 
Business combination
   (3,265,490   (2,066  
 
—  
 
Translation effect
   3,089,044    2,090,648   
 
1,710,987
 
   
 
 
   
 
 
   
 
 
 
Balance at end of year
   Ps.(39,480,909   Ps.(44,551,735  
 
Ps.(41,835,826
   
 
 
   
 
 
   
 
 
 
   
For the years ended December 31,
 
   
(1)

2021
   2022   
2023
 
Balance at beginning of year
  Ps.(44,551,735  Ps.(41,835,826  
Ps.
(42,079,056
Increases recorded in expenses 
(i)
   (10,212,490   (12,197,447  
 
(12,021,598
Write-offs
   11,682,343    9,162,382   
 
11,392,722
 
Incorporation
(spin-off) 
(ii)
   —     —    
 
(3,002
Translation effect
   1,246,056    2,791,835   
 
4,515,937
 
  
 
 
   
 
 
   
 
 
 
Balance at year end
  Ps.(41,835,826  Ps.(42,079,056  
Ps.
(38,194,997
  
 
 
   
 
 
   
 
 
 
 
(i)(1)
Discontinued operations
i)
Includes discontinued operation of Tracfone.Panama and Chile in joint venture. See Notenote 2Ac. 
ii)
This figure is related to the
spin-off
of Telekom Austria AG.
c) The following table shows the aging of accounts receivable at December 31, 20202022 and 2021,2023, for subscribers and distributors:
 
  
Past due
 
  
Total
  
Unbilled services
provided
  
a-30 days
  
31-60 days
  
61-90 days
  
Greater than
90 days
 
December 31, 2020
 Ps.168,758,386  Ps.75,972,811  Ps.37,439,995  Ps.5,325,264  Ps.3,313,835  Ps.46,706,481 
December 31, 2021
 
Ps.
157,433,609
 
 
Ps.
69,082,837
 
 
Ps.
35,694,272
 
 
Ps.
4,533,604
 
 
Ps.
2,645,034
 
 
Ps.
45,477,862
 
Past due
Total
Unbilled services
provided
a-30
days
31-60
days
61-90
days
Greater than
90 days
December 31, 2022
Ps.154,659,093Ps.66,839,514Ps.31,726,606Ps.4,099,261Ps.2,574,082Ps.49,419,630
December 31, 2023
Ps.156,569,986
Ps.94,822,572
Ps.15,595,155
Ps.4,533,856
Ps.2,543,476
Ps.39,074,927
d) The following table shows the accounts receivable from subscribers and distributors included in the impairmentsallowance for expected credit losses of trade receivables, as of December 31, 20202022 and 2021:2023:
 
   
Total
   
1-90 days
   
Greater than
90 days
 
December 31, 2020
  Ps.44,551,735   Ps.4,455,174   Ps.40,096,561 
December 31, 2021
  
Ps.
41,835,826
 
  
Ps.
4,183,583
 
  
Ps.
37,652,243
 
F-
39

Table of Contents
Total
1-90
days
Greater than
90 days
December 31, 2022
Ps.42,079,056Ps.4,207,906Ps.37,871,150
December 31, 2023
Ps.38,194,997
Ps.2,989,388
Ps.35,205,609
e) An analysis of contract assets and liabilities at December 31, 20202022 and 20212023 is as follows:
 
  2020   
2021
   2022   
2023
 
Contract Assets:
      
Balance at the beginning of the year
  Ps.34,274,007   
Ps.
29,588,104
 
  Ps.30,901,277   
Ps.
28,573,717
 
Additions
   27,242,031   
 
31,758,626
 
   28,262,872   
 
24,666,211
 
Business combination
   404,489   
 
— 
 
Disposals
   (1,397,714  
 
(5,946,487
   (5,238,752  
 
(4,672,331
Amortization
   (29,002,995  
 
(25,354,712
   (22,926,487  
 
(19,998,178
Translation effect
   (1,527,225  
 
855,746
 
   (2,829,682  
 
(3,507,200
  
 
   
 
 
 
   
 
 
Balance at the end of the year
  Ps.29,588,104   
Ps.
30,901,277
 
  Ps.28,573,717   
Ps.
25,062,219
 
Non-current contract assets
  Ps.817,740   
Ps.
989,519
 
  Ps.880,860   
Ps.
1,149,202
 
  
 
   
 
 
 
   
 
 
Current portion contracts assets
  Ps.28,770,364   
Ps.
29,911,758
 
  Ps.27,692,857   
Ps.
23,913,017
 
  
 
   
 
 
 
   
 
 
F-4
2

Note 6. Related Parties
a) The following is an analysis of the balances with related parties as of December 31, 20202022 and 2021.2023. All of the companies were considered affiliates of América Móvil since the Company’s principal shareholders are either direct or indirect shareholders in the related parties.
 
   2020   
2021
 
Accounts receivable:
          
Sears Roebuck de México, S.A. de C.V. and Subsidiaries
  Ps.233,402   
Ps.
339,366
 
Sanborns Hermanos, S.A.
   160,116   
 
192,599
 
Patrimonial Inbursa, S.A.
   327,985   
 
145,676
 
Grupo Condumex, S.A. de C.V. and Subsidiaries
   10,038   
 
122,555
 
Hubard y Bourlon, S.A. de C.V.
   437,231   
 
52,026
 
Claroshop.com, S.A.P.I de C.V.
   100,075   
 
40,906
 
Other
   122,453   
 
265,483
 
   
 
 
   
 
 
 
Total
  Ps.1,391,300   
Ps.
1,158,611
 
   
 
 
   
 
 
 
  2022   
2023
 
Accounts receivable:
Sears Roebuck de México, S.A. de C.V. and Subsidiaries
  Ps.260,584   
Ps.
189,724
 
Sitios Latinoamérica, S.A.B. de C.V.
   1,460,897   
 
216,378
 
Sanborns Hermanos, S.A.
   124,157   
 
164,650
 
Patrimonial Inbursa, S.A.
   166,366   
 
206,127
 
Grupo Condumex, S.A. de C.V. and Subsidiaries
   31,857   
 
17,484
 
Telesites, S.A.B. de C.V. and Subsidiaries
   80,677  
 
63,128
 
Claroshop.com, S.A.P.I de C.V.
   31,559   
 
46,459
 
Other
   131,116   
 
167,570
 
 
   
 
 
Total
  Ps.2,287,213   
Ps.
1,071,520
 
 
   
 
 
  2020   
2021
 
Accounts payable:
    
Accounts payable:
Accounts payable:
Accounts payable:
Carso Infraestructura y Construcción, S.A. de C.V. and Subsidiaries
  Ps.2,192,405   
Ps.
1,273,085
 
  Ps.2,836,689   
Ps.
3,256,535
 
Grupo Condumex, S.A. de C.V. and Subsidiaries
   1,054,526   
 
1,709,487
 
   2,036,371   
 
548,076
 
Sitios Latinoamérica, S.A.B. de C.V.
   960,244   
 
1,031,925
 
Fianzas Guardiana Inbursa, S.A. de C.V.
   241,898   
 
385,287
 
   437,428   
 
439,437
 
Claroshop.com, S.A.P.I de C.V.
   4,300   
 
247,081
 
   216,774   
 
122,940
 
Grupo Financiero Inbursa, S.A.B. de C.V.
   234,954   
 
102,314
 
   102,127   
 
180,718
 
Seguros Inbursa, S.A. de C.V.
   92,173   
 
113,089
 
   107,389   
 
101,026
 
Sociedad Financiera Inbursa, S.A. de C.V.
   0     
 
80,382
 
PC Industrial, S.A. de C.V. and Subsidiaries
   44,198   
 
4,761
 
Enesa, S.A. de C.V. and Subsidiaries
   22,014   
 
9,384
 
Industrial Afiliada, S.A. de C.V..
   103,864   
 
469,591
 
Banco Inbursa, S.A.
   20,089   
 
22,438
 
Promotora Inbursa, S.A. de C.V.
   15,174   
 
35,292
 
Cicsa Perú, S.A.C.
   256,344   
 
166,484
 
Other
   113,448   
 
292,012
 
   131,725   
 
392,364
 
  
 
   
 
 
 
   
 
 
Total
  Ps.3,999,916   
Ps.
4,216,882
   Ps.7,224,218   
Ps.
6,766,826
 
  
 
   
 
 
 
   
 
 
For the years ended December 31, 2019, 20202021, 2022 and 2021,2023, the Company has not recorded any impairment of receivables in connection with amounts owed by related parties.
F-
40

b) For the years ended December 31, 2019, 20202021, 2022 and 2021,2023, the Company conducted the following transactions with related parties:
 
   2019   2020   
2021
 
Investments and expenses:
               
Construction services, purchases of materials, inventories and property, plant and equipment 
(i)
  Ps.8,573,894   Ps.7,130,769   
Ps.
13,544,289
 
Insurance premiums, fees paid for administrative and operating services, brokerage services and others
(ii)
   4,590,620    4,375,113   
 
4,336,133
 
Other services
   1,277,404    1,101,528   
 
1,617,102
 
   
 
 
   
 
 
   
 
 
 
   Ps.14,441,918   Ps.12,607,410   
Ps.
19,497,524
 
   
 
 
   
 
 
   
 
 
 
Revenues:
               
Service revenues
  Ps.538,110   Ps.608,248   
Ps.
714,148
 
Sales of equipment
 
(iii)
   944,697    656,801   
 
7,629,181
 
   
 
 
   
 
 
   
 
 
 
   Ps.1,482,807   Ps.1,265,049   
Ps.
8,343,329
 
   
 
 
   
 
 
   
 
 
 
   2021   2022   
2023
 
Capex and expenses:
      
Construction services, purchases of materials, inventories and property, plant and equipment 
(i)
  Ps.13,524,989  Ps.13,107,483  
Ps.
10,499,209
 
Insurance premiums, fees paid for administrative and operating services, brokerage services and others 
(ii)
   4,336,133    2,654,774   
 
4,911,513
 
Associated costs for towers sale
(iii)
   —     360,073   
 
1,751,405
 
Rent of towers
   —     475,749   
 
937,763
 
Other services   1,636,402    1,890,921   
 
1,903,476
 
  
 
 
   
 
 
   
 
 
 
  Ps.19,497,524  Ps.18,489,000  
Ps.
20,003,366
 
  
 
 
   
 
 
   
 
 
 
Revenues:
      
Service revenues
(iv)
  Ps.714,148   Ps.756,347   
Ps.
1,153,877
 
Sales of towers
(v)
   6,943,400    3,323,594   
 
8,546,615
 
Sales of equipment
   685,781    1,153,439   
 
2,225,521
 
  
 
 
   
 
 
   
 
 
 
  Ps.8,343,329   Ps.5,233,380   
Ps.
11,926,013
 
  
 
 
   
 
 
   
 
 
 
 
F-4
3

i)
In 2021,2023, this amount includes Ps.
11,447,164 7,720,624 (Ps.
5,312,845 11,018,630 in 20202022 and Ps.
6,809,244 11,447,164 in 2019)2021) for network construction services and construction materials purchased from subsidiaries of Grupo Carso, S.A.B. de C.V. (Grupo Carso).
ii)
In 2021,2023, this amount includes Ps.
121,728 69,248 (Ps.
203,013 117,321 in 20202022 and Ps.
956,132 121,728 in 2019)2021) for network maintenance services performed by Grupo Carso subsidiaries; Ps.
0 in 2023 (Ps. 16,556 in 2022 and Ps. 50,730 in 2021 (Ps.
13,490 in 2020, and Ps.
16,161 in 2019)2021) for software services provided by an associate; Ps.
3,460,518 in 2023 (Ps. 3,281,176 in 2022 and Ps. 3,814,995 in 2021 (Ps.
2,713,370 in 2020 and Ps.
2,623,795 in 2019)2021) for insurance premiums with Seguros Inbursa S.A. and Fianzas Guardiana Inbursa, S.A., which, in turn, places most of such insurance with reinsurers.
iii)
In November 2021, 2023, this amount includes Ps. 885,427 of the cost related to the sales of towers by Compañía subsidiaryDominicana de Teléfonos, S.A.; Ps. 880,542 of Telmex sold certain tower assetsthe cost related to Telesites, S.A.B. de C.V.
the sales of towers by América Móvil Perú, S.A.C.; and Ps. 15,435 of the cost related to the sales of towers by Telmex.
iv)
The amounts related to payments for tower lease are reflected in Note 15.
In 2023, this amount includes Ps. 995,831 of the total revenue, provided by Telmex.
v)
In 2023, this amount includes Ps. 2,695,790 for sales of towers by Compañía Dominicana de Teléfonos, S.A.; Ps. 4,840,325 for sales of towers by América Móvil Perú, S.A.C.; and Ps. 1,010,500 for sales of towers by Telmex.
c) The aggregate compensation paid to the Company’s, directors (including compensation paid to members of the Audit and Corporate Practices Committee), and senior management in 20212023 was approximately Ps.5,800Ps. 6,244 and Ps.85,000,Ps. 98,280, respectively. None of the Company’s directors is a party to any contract with the Company or any of its subsidiaries that provides for benefits upon termination of employment. The Company does not provide pension, retirement or similar benefits to its directors in their capacity as directors. The Company’s executive officers are eligible for retirement and severance benefits required by Mexican law on the same terms as all other employees.
d) Österreichische Bundes- undBundes-und Industriebeteiligungen GmbH (ÖBIB) is considered a related party due to it is a significant
non-controlling
shareholder in Telekom Austria. Through Telekom Austria, América Móvil is related to the Republic of Austria and its subsidiaries, which are mainly ÖBB Group, ASFINAG Group and Post Group as well as Rundfunk und Telekom Reguliegungs-GmbH, all of which these are related parties. In 2019, 20202021, 2022 and 2021, NaN2023, none of the individual transactions associated with government agencies or government-owned entities of Austria were considered significant to América Móvil.
Note 7. Derivative Financial Instruments
To mitigate the risks of future increases in interest rates and foreign exchange rates for the servicing of its debt, the Company has entered into derivative contracts in over-the-counter transactions carried out with financial institutions. In 20212023 the weighted-average interest rate of the total debt including the impact of interest rate derivatives held by the Company is 5.6% (5.0% and 3.1% (3.5%in 2022 and 3.8% in 2020 and 2019,2021, respectively). The Company adhered to the fallback provision from ISDA as a part of the transition from IBOR.
 
F-4
F-
41
4

An analysis of the derivative financial instruments contracted by the Company at December 31, 20202022 and 20212023 is as follows:
 
 
At December 31,
  
At December 31,
 
 
2020
 
2021
  
2022
 
2023
 
Instrument
 Notional amount in
millions
 Fair Value 
Notional amount in
millions
 
Fair Value
  Notional amount in
millions
 Fair Value 
Notional amount in
millions
 
Fair Value
 
Assets:
        
Swaps US Dollar – Mexican Peso
 US$3,490  Ps.16,806,937  
US$
1,890
 
 
Ps.

6,881,934
 
 US$140  Ps.91,469  
US$
150
 
 
Ps.
56,426
 
Swaps US Dollar – Euro
 US$150   117,726  
US$
150
 
 
 
307,646
 
 US$800   1,845,832  
US$
800
 
 
 
257,278
 
Swaps Yen – US Dollar
 ¥9,750   269,215  
¥
6,500
 
 
 
119,325
 
 ¥6,500   101,409  
¥
6,500
 
 
 
34,720
 
Swaps Pound Sterling – US Dollar
 £1,010   2,237,919  
£
100
 
 
 
99,463
 
Swaps Euro – US Dollar
  —    —   
152
 
 
 
104,070
 
Forwards US Dollar – Mexican Peso
 US$240   39,607  
US$
2,080
 
 
 
321,864
 
 US$100   6,636  
US$
228
 
 
 
12,009
 
Forwards Mexican Peso – US Dollar
  —     —    
MX$
35,419
 
 
 
1,635,087
 
Forwards Brazilian Real – US Dollar
 BRL$4,193   1,190,292  
BRL$
2,480
 
 
 
127,131
 
 R$2,899   225,933  
R$
5,201
 
 
 
407,878
 
Forwards Euro – US Dollar
 915   266,639  
 
0  
 
 
 
0  
 
 509   331,401  
1,390
 
 
 
573,653
 
Put Option
  —     —    
374
 
 
 
638,347
 
   
 
    
 
  
 
   
 
 
Total Assets
  —    
Ps.

20,928,335  
 
—  
 
 
Ps.
10,130,806
 
  Ps.2,602,680   
Ps.
1,446,034
 
   
 
    
 
  
 
   
 
 
 
 
At December 31,
 
 
2020
 
2021
 
 
At December 31,
 
 
2022
 
2023
 
Instrument
 Notional amount in
millions
 Fair Value 
Notional amount in
millions
 
Fair Value
  Notional amount in
millions
 Fair Value 
Notional amount in
millions
 
Fair Value
 
Liabilities:
        
Swaps US Dollar – Mexican Peso
 US$1,750  Ps.(731,565 
US$
3,140
 
 
Ps.
(5,147,566
Swaps US Dollar – Euro
 US$800  Ps.(4,811,031 
US$
800
 
 
 
Ps.
(1,270,005
 US$150   (215,240 
US$
150
 
 
 
(276,227
Swaps Yen – US Dollar
 ¥3,250   (14,802 
¥
6,500
 
 
 
(119,313
 ¥6,500   (230,843 
¥
6,500
 
 
 
(270,825
Swaps Pound Sterling – Euro
 £640   (3,122,492 
£
640
 
 
 
(1,924,941
 £640   (2,070,175 
£
640
 
 
 
(1,586,633
Swap Pound Sterling – US Dollar
 £550   (457,559 
£
1,460
 
 
 
(2,117,583
 £1,560   (11,507,501 
£
1,560
 
 
 
(8,069,567
Swaps Euro – US Dollar
  0     0    
495
 
 
 
(528,298
 1,145   (3,474,154 
825
 
 
 
(1,680,315
Swaps Euro – Mexican Peso
  —     —    
750
 
 
 
(680,720
 750   (2,880,279 
 
— 
 
 
 
— 
 
Forwards US Dollar – Mexican Peso
 US$3,494   (4,052,852 
US$
1,175
 
 
 
(286,937
 US$1,945   (783,334 
US$
742
 
 
 
(311,288
Forwards Brazilian Real – US Dollar
 BRL$1,762   (425,249 
BRL$
4,021
 
 
 
(234,822
 R$2,763   (122,201 
R$
123
 
 
 
(459
Forwards Euro – US Dollar
  —     —    
815
 
 
 
(1,122,641
 952   (915,854 
435
 
 
 
(160,448
Forwards US Dollar – Euro
  —     —    
US$
8
 
 
 
(1,570
Forwards Euro – Mexican Peso
 200   (272,274 
200
 
 
 
(22,182
  —    —   
50
 
 
 
(16,267
Put option
 374   (1,073,990 
 
0  
 
 
 
0  
 
 374   (368,364 
 
— 
 
 
 
— 
 
Call option
  0     0    
2,097
 
 
 
(1,725,495
 2,097   (2,031,836 
2,020
 
 
 
(376,784
   
 
    
 
  
 
   
 
 
Total Liabilities
  —    Ps.(14,230,249 
 
—  
 
 
 
Ps.
(10,034,508
  —   Ps.(25,331,346 
 
— 
 
 
Ps.
(17,896,379
   
 
    
 
  
 
   
 
 
 
*
Totals may not sum due to rounding.
The changes in the fair value of these derivative financial instruments for the years ended December 31, 2019, 20202021, 2022 and 20212023 amounted to a gain (loss)loss of Ps.
4,432,023, (6,755,214), Ps.
12,378,193 (28,639,687) and Ps.
(6,755,214) (10,268,520), respectively. Such amounts are included in the consolidated statements of comprehensive income as part of the caption “Valuation of derivatives interest cost from labor obligations and other financial items, net”.
 
F-4
F-
425

The maturities of the notional amount of the derivatives are as follows:
 
Instrument
  
Notional
amount in
millions
   
2022
   
2023
   
2024
   
2025
   
2026 Thereafter
 
Assets
                              
Swaps US Dollar-Mexican Peso
  
US$
 
 
   —      0      —      —      1,890 
Swaps Yen-US Dollar
  
¥
 
 
   —      —      —      —      6,500 
Swaps US Dollar – Euro
  
US$
 
 
   —      —      —      —      150 
Swaps Pound Sterling – US Dollar
  
£
 
 
   —      —      —      —      100 
Forwards US Dollar-Mexican Peso
  
US$
 
 
   2,080    —      —      —      —   
Forwards Mexican Peso – US Dollar
  
MX$
 
 
   35,419    —      —      —      —   
Forwards Brazilian Real-US Dollar
  
BRL
        
 
   2,480    —      —      —      —   
Put Option
  
 
 
   —      374    —      —      —   
Liabilities
                              
Swaps US Dollar-Euro
  
US$
 
 
   —      —      —      —      800 
Swaps Euro – US Dollar
  
 
 
   —      320    175    —      —   
Swaps Euro – Mexican Peso
  
US$
 
 
   —      750    —      —      —   
Swaps Yen-US Dollar
  
¥
 
 
   —      —      —      —      6,500 
Swaps Pound Sterling-Euro
  
£
 
 
   —      —      —      —      640 
Swap Pound Sterling-US Dollar
  
£
 
 
   —      —      —      —      1,460 
Forwards US Dollar – Mexican Peso
  
US$
 
 
   1,175    —      —      —      —   
Forwards Euro – US Dollar
  
 
 
   765    —      50    —      —   
Forwards US Dollar—Euro
  
US$
 
 
   8    —      —      —      —   
Forwards Brazilian Real-US Dollar
  
BRL
        
 
   4,021    —      —      —      —   
Forwards Euro – Mexican Peso
  
 
 
   200    —      —      —      —   
Call option
  
 
 
   —      —      2,097    —      —   
Instrument
  
Notional
amount in
millions
   
2024
   
2025
   
2026
   
2027
   
2028 Thereafter
 
Assets
            
Swaps US Dollar – Mexican Peso
  
US$
 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
150
 
Swaps Yen – US Dollar
  
¥
 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
6,500
 
Swaps US Dollar – Euro
  
US$
 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
800
 
Swaps Euro – US Dollar
  
 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
152
 
  
 
— 
 
Forwards US Dollar – Mexican Peso
  
US$
 
 
  
 
228
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
Forwards Brazilian Real – US Dollar
  
R$
 
 
  
 
5,201
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
Forwards Euro – US Dollar
  
 
 
  
 
1,390
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
Liabilities
            
Swaps US Dollar – Mexican Peso
  
US$
 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
3,140
 
Swaps US Dollar – Euro
  
US$
   
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
150
 
Swaps Euro – US Dollar
  
 
 
  
 
175
 
  
 
— 
 
  
 
— 
 
  
 
250
 
  
 
400
 
Swaps Yen – US Dollar
  
¥
 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
6,500
 
Swaps Sterling Pound – Euro
  
£
 
 
  
 
— 
 
  
 
— 
 
  
 
390
 
  
 
— 
 
  
 
250
 
Swap Sterling Pound – US Dollar
  
£
 
 
  
 
— 
 
  
 
— 
 
  
 
110
 
  
 
— 
 
  
 
1,450
 
Forwards US Dollar – Mexican Peso
  
US$
 
 
  
 
742
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
Forwards Euro – US Dollar
  
 
 
  
 
435
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
Forwards Brazilian Real – US Dollar
  
R$
 
 
  
 
123
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
Forwards Euro – Mexican Peso
  
 
 
  
 
50
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
Call Option
  
 
 
  
 
2,020
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
  
 
— 
 
Note 8. Inventories, net
An analysis of inventories at December 31, 20202022 and 20212023 is as follows:
 
  2020 
2021
   2022 
2023
 
Mobile phones, accessories, computers, TVs, cards and other materials
   Ps.33,763,086  
 
Ps.
 
26,131,521
 
   Ps. 26,311,415  
 
Ps. 21,858,519
 
Less: Reserve for obsolete and slow-moving inventories
   (3,385,647 
 
(1,946,211
   (2,316,282 
 
(2,586,894
  
 
  
 
 
 
  
 
 
Total
   Ps.30,377,439  
 
Ps.
 
24,185,310
 
   Ps. 23,995,133  
 
Ps. 19,271,625
 
  
 
  
 
 
 
  
 
 
For the years ended December 31, 2019, 20202021, 2022 and 2021,2023, the cost of inventories recognized in cost of sales was Ps.
128,559,826, 117,613,669, Ps.
114,711,857
115,022,007 and
Ps.
122,220,495
respectively
. 111,863,425 respectively.
 
F-4
F-
436

Note 9. Other assets, net
An analysis of other assets at December 31, 20202022 and 20212023 is as follows:
 
  
2020
   
2021
   2022   
2023
 
Current portion:
      
Advances to suppliers (different from PP&E and inventories)
  Ps.7,600,644   
Ps.
7,474,932
 
Advances to suppliers (different from CAPEX and inventories)
  Ps.8,247,735   
Ps.
8,788,638
 
Prepaid insurance
   1,300,019   
 
1,749,589
 
   1,988,713   
 
2,105,556
 
Other
   93,244   
 
227,731
 
   328,974   
 
328,065
 
  
 
   
 
 
 
   
 
 
  Ps.8,993,907   
Ps.
9,452,252
 
Ps.10,565,422   
Ps.
11,222,259
 
  
 
   
 
 
 
   
 
 
Non-current portion:
      
 
Recoverable taxes
  Ps.11,559,961   
Ps.
11,689,094
 
Recoverable taxes
Recoverable taxes
Recoverable taxes
  Ps.9,363,682   
Ps.
8,879,374
 
Prepayments for the use of fiber optics
   2,709,358   
 
3,783,496
 
   3,424,850   
 
2,734,008
 
Judicial Deposits
(1)
   15,402,840   
 
14,583,504
 
Judicial deposits
(1)
   16,309,977   
 
15,456,282
 
Prepaid expenses
   8,743,667   
 
9,899,996
 
   10,483,113   
 
10,574,048
 
  
 
   
 
 
 
   
 
 
Total
  Ps.38,415,826   
Ps.
39,956,090
 
  Ps.39,581,622   
Ps.
37,643,712
 
  
 
   
 
 
 
   
 
 
For the years ended December 31, 2019, 20202021, 2022 and 2021,2023, amortization expense for other assets was Ps. 318,824,442,098 Ps. 213,833215,529 and Ps. 442,098,848,569, respectively.
(1)
Judicial deposits represent cash and cash equivalents pledged in order to fulfill the collateral requirements for tax contingencies mainly in Brazil. As of December 31, 2020 and 2021, the amount for these deposits is Ps. 15,402,840 and Ps. 14,583,504, respectively for Brazil. Based on its evaluation of the underlying contingencies, the Company believes that such amounts are recoverable. See Note 17 b).
Note 10. Property, Plant and Equipment, net
a)
An analysis of activity in property, plant and equipment, net for the years, ended December 31, 2019, 20202021, 2022 and 20212023 is as follows:
 
 
At December 31,
2018
 
Additions
 
Retirements
 
Business
combinations
 
Effect of
translation of
foreign
subsidiaries and
hyperinflation
adjustment
 
Depreciation
for
the year
 
At December 31,
2019
  
At December 31,
2020
 
Additions
 
Retirements 
(2)
 
Transfers
 
Effect of
translation of
foreign
subsidiaries and
hyperinflation
adjustment
 
Depreciation
for
the year
(3)
 
At December 31,
2021
 
Cost
                             
Network in operation and equipment
 Ps.969,195,936  Ps.82,992,062  Ps.(13,417,360 Ps.9,572,805  Ps.(57,669,840 Ps.—    Ps.990,673,603  Ps.1,057,592,243 Ps.89,696,150 Ps.(45,044,049 Ps.53,531,590  Ps.(44,061,097 Ps.—   Ps.1,111,714,837 
Land and buildings
  57,130,326   1,530,677   (4,025,222  115,935   (3,950,463  —     50,801,253 
Other assets
  149,809,137   26,881,611   (7,594,735  1,021,051   (7,776,500  —     162,340,564 
Construction in process and advances plant suppliers
(1)
  81,092,529   82,640,305   (76,892,011  209,790   (5,511,439  —     81,539,174 
Spare parts for operation of the network
  28,444,529   44,776,904   (36,525,735  0     (2,462,605  —     34,233,093 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Total
  1,285,672,457   238,821,559   (138,455,063  10,919,581   (77,370,847  —     1,319,587,687 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Accumulated depreciation
              
Network in operation and equipment
  560,005,547   —     (24,954,514  —     (47,778,627  93,097,695   580,370,101 
Buildings
  8,810,949   —     (287,072  —     (1,386,974  2,330,405   9,467,308 
Other assets
  76,533,494   —     (695,425  —     (4,754,982  19,249,104   90,332,191 
Spare parts for operation of the network
  321,747   —     (283,986  —     (79,226  116,182   74,717 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Total
 Ps.645,671,737  Ps.—    Ps.(26,220,997 Ps.—    Ps.(53,999,809 Ps.114,793,386  Ps.680,244,317   Ps  632,871,206  Ps.—   Ps.(35,156,674 Ps.965,984  Ps.(32,341,634 Ps.111,461,729  Ps.677,800,611 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Net Cost
 Ps.640,000,720  Ps.238,821,559  Ps.(112,234,066 Ps.10,919,581  Ps.(23,371,038 Ps.(114,793,386 Ps.639,343,370  Ps.722,929,631  Ps.231,539,820  Ps.(92,643,640 Ps.(1,966,088 Ps.(17,201,315 Ps.(111,461,729 Ps.731,196,679 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
F-
44

  
At December 31,
2019
  
Additions
  
Retirements
  
Business
combinations
  
Revaluation
adjustments
  
Transfers
  
Effect of
translation of
foreign
subsidiaries and
hyperinflation
adjustment
  
Depreciation
for
the year
  
At December 31,
2020
 
Cost
                           
Network in operation and equipment
 Ps.990,673,603  Ps.90,387,449  Ps.
(19,574,391
 Ps.996,974  Ps.107,152,628  Ps.
(62,050,212
 Ps.(49,993,808 Ps.—    Ps.1,057,592,243 
Land and buildings
  50,801,253   570,062   (2,853,037  —     —     —     369,300   —     48,887,578 
Other assets
  162,340,564   17,474,218   (14,454,598  55,848   —     —     (8,393,187  —     157,022,845 
Construction in process and advances plant suppliers
(1)
  81,539,174   59,635,316   (68,661,847  1,099   —     —     (5,011,829  —     67,501,913 
Spare parts for operation of the network
  34,233,093   30,721,413   (37,829,818  —     —     —     (2,328,430  —     24,796,258 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
  1,319,587,687   198,788,458   (143,373,691  1,053,921   107,152,628   (62,050,212  (65,357,954  —     1,355,800,837 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Accumulated depreciation
                                    
Network in operation and equipment
  580,370,101   —     (25,726,856  —     —     (62,050,212
)
(
2
)
 
  (58,055,450  96,729,723   531,267,306 
Buildings
  9,467,308   —     (1,663,796  —     —     —     (622,253  1,906,140   9,087,399 
Other assets
  90,332,191   —     (9,317,821  —     —     —     (5,120,175  16,549,822   92,444,017 
Spare parts for operation of the network
  74,717   —     (176,131  —     —     —     38,898   135,000   72,484 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 Ps.680,244,317  Ps.—    Ps.(36,884,604 Ps.—    Ps.—    Ps.(62,050,212 Ps.(63,758,980 Ps.115,320,685  
P
 
s

  632,871,206

 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
 
Net Cost
 Ps.639,343,370  Ps.198,788,458  Ps.(106,489,087 Ps.1,053,921  Ps.107,152,628  .
—    Ps.(1,598,974 Ps.(115,320,685 Ps.722,929,631 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
  
At

December 31,
2020
  
Additions
  
Retirements 
(3)
  
Business
combinations
  
Transfers
  
Effect of
translation of
foreign
subsidiaries and
hyperinflation
adjustment
  
Depreciation
for
the year
  
At December 31,
2021
 
Cost
                                
Network in operation and equipment
 
Ps.
1,057,592,243
  
Ps.
89,696,150
 
 
Ps.
(45,044,049
 
Ps.
0  
 
 
Ps.
53,531,590
 
 
Ps.
(44,061,097
 
Ps.
—  
 
 
Ps
.
1,111,714,837
 
Land and buildings
 
 
48,887,578
 
 
 
784,460
 
 
 
(473,785
 
 
—  
  
 
38,250
  
 
(1,216,894
 
 
—  
 
 
 
48,019,609
 
Other assets
 
 
157,022,845
 
 
 
10,782,903
  
 
(11,994,756
)
 
 
0  
  
 
(1,800,756
)
 
 
(1,870,104
)
 
 
—  
 
 
 
152,140,132
 
Construction in process and advances plant suppliers
(1)
 
 
67,501,913
 
 
 
83,366,813
  
 
(47,178,796
)
 
 
0  
  
 
(38,944,421
)
 
 
(1,420,843
 
 
—  
 
 
 
63,324,666
 
Spare parts for operation of the network
 
 
24,796,258
 
 
 
46,909,494
  
 
(23,108,928
)
 
 
—  
  
 
(13,824,767
)
 
 
(974,011
 
 
—  
 
 
 
33,798,046
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 
 
1,355,800,837
 
 
 
231,539,820
  
 
(127,800,314
)
 
 
0  
  
 
(1,000,104
)
 
 
(49,542,949
)
 
 
—  
 
 
 
1,408,997,290
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Accumulated depreciation
                                
Network in operation and equipment
 
 
531,267,306
 
 
 
—  
  
 
(24,322,904
)
 
 
—  
  
 
638,066
  
 
(30,254,288
)
 
 
97,343,878
  
 
574,672,058
 
Buildings
 
 
9,087,399
 
 
 
—  
  
 
(219,030
)
 
 
—  
  
 
(221,937
)
 
 
(738,748
 
 
1,941,819
  
 
9,849,503
 
Other assets
 
 
92,444,017
 
 
 
—  
  
 
(10,522,319
)
 
 
—  
  
 
549,855
  
 
(2,522,458
)
 
 
13,310,584
 
 
 
93,259,679
 
Spare parts for operation of the network
 
 
72,484
 
 
 
—  
  
 
(92,421
)
 
 
—  
  
 
—  
  
 
(26,823
 
 
66,131
  
 
19,371
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 
Ps
632,871,206
 
 
Ps
.
—  
  
Ps.
(35,156,674
 
Ps.
—  
 
 
Ps.
(965,984
 
Ps
.
(33,542,317
 
Ps.
112,662,412
 
 
Ps
.
677,800,611
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net Cost
 
Ps
.
722,929,631
 
 
Ps
.
231,539,820
 
 
Ps
.
(92,643,640
 
Ps.
0  
 
 
Ps.
(1,966,088
 
Ps.
(16,000,632
)
 
 
Ps
.
(112,662,412
 
Ps
.
731,196,679
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
(1)
Construction in progress includes fixed and mobile network facilities as well as satellite developments and fiber optic which is in the process of being installed.
(2)
This transfer relates to the accumulated depreciation as at the revaluation date that was eliminated against the gross carrying amount of the revalued asset.
(3)
Includes disposals related to the sale of TracFone. See Note 2Ac.
(3)
Discontinued operations.
F-4
7

  
At December 31
2021
  
Additions
  
Retirements
(2)
  
Business

combinations 
(3)
  
Revaluation
adjustments
 (5)
  
Transfer
  
Incorporation
(merger, spin-

off, sale)
(4)
  
Effect of
translation of
foreign
subsidiaries and
hyperinflation
adjustment
  
Depreciation
for
the year
  
At
December 31,

2022
 
Cost
          
Network in operation and equipment
 Ps.1,111,714,837  Ps.56,307,013  Ps.(64,315,475 Ps.1,415,252  Ps.(55,639,215 Ps. 63,171,840  Ps.(18,399,253 Ps.(68,236,057 Ps.—   Ps.1,026,018,942
 
Land and buildings
  48,019,609   596,165   (2,021,550  —    —    737,667   —    (3,577,615  —    43,754,276
 
Other assets
  152,140,132   12,325,614   (13,642,510  23,723   —    559,935   (698,522  (5,468,249  —    145,240,123
 
Construction in process and advances plant suppliers
(1)
  63,324,666   96,511,498   (49,559,746  36,707   —    (48,393,706  (72,194  (2,027,587  —    59,819,638
 
Spare parts for operation of the network
  33,798,046   61,327,596   (30,957,726  —    —    (19,923,388  (6,995  (1,879,058  —    42,358,475
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
  1,408,997,290   227,067,886   (160,497,007  1,475,682   (55,639,215  (3,847,652  (19,176,964  (81,188,566  —    1,317,191,454
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Accumulated depreciation
          
Network in operation and equipment
 Ps.574,672,058  Ps.—   Ps.(52,703,338 Ps.—   Ps.(4,098,583 Ps.(71,627 Ps.4,827,813  Ps.(52,313,781 Ps.95,577,534  Ps.565,890,076
 
Buildings
  9,849,503   —    (622,956  —    —    47,578   (219,174  (2,356,617  1,701,274   8,399,608
 
Other assets
  93,259,679   —    (9,711,246  —    —    298,060   (8,940,398  (3,146,276  13,814,586   85,574,405
 
Spare parts for the operation of the network
  19,371   —    (115,552  —    —    —    6,717   (84,295  274,914   101,155
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 Ps.677,800,611  Ps.—   Ps.(63,153,092 Ps.—   Ps.(4,098,583 Ps.274,011  Ps.(4,325,042 Ps.(57,900,969 Ps.111,368,308  Ps.659,965,244
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net Cost
 Ps.731,196,679  Ps. 227,067,886  Ps.(97,343,915 Ps. 1,475,682  Ps.(51,540,632 Ps.(4,121,663 Ps.(14,851,922 Ps.(23,287,597 Ps.(111,368,308 Ps.657,226,210
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
(1)
Construction in progress includes fixed and mobile network facilities as well as satellite developments and fiber optic which is in the process of being installed.
(2)
Includes disposals of Chile’s separation process as a result of the ClaroVTR joint venture. See Note 12b. Also includes disposals related to the sale of Claro Panama. See Note 2Ac and disposals related to the partial sale Claro Peru’s towers to Sitios Latam as of December 31, 2022.
(3)
“Business Combination” includes the acquisition of Assets of Grupo Oi, Jonava and Ustore, in Brazil. See Note 12a.
(4)
“Incorporation (merger, spin-off, sale)” includes disposals associated as spin-off of assets to Sitios Latam described in Note 12d.
(5)
¨Revaluation adjustments” include the surplus associated with the 29,090 telecommunications towers, for an amount of Ps. 50,880,804 that was transferred as part of the spin-off of assets to Sitios Latam described in Note 12d.
  
At December 31
2022
  
Additions
  
Retirements 
(2)(3)
  
Revaluation
adjustments
 (4)
  
Transfer
  
Effect of
translation of
foreign
subsidiaries and
hyperinflation
adjustment
(5)
  
Depreciation
for
the year
  
At

December 31,

2023
 
Cost
                        
Network in operation and equipment
 Ps.1,026,018,942  Ps.50,024,889  Ps.(33,329,584 Ps.(6,302,540 Ps.70,929,358  Ps.(147,930,373 Ps.—   Ps.959,410,692
 
Land and buildings
  43,754,276   460,406   (623,086  —    912,321   (4,104,367  —    40,399,550
 
Other assets
  145,240,123   9,207,577   (4,659,627  —    91,200   (9,019,160  —    140,860,113
 
Construction in process and advances plant suppliers
(1)
  59,819,638   60,315,693   (3,541,460  —    (52,383,308  (3,391,855  —    60,818,708
 
Spare parts for operation of the network
  42,358,475   24,598,463   (4,512,380  —    (23,748,569  (6,821,235  —    31,874,754
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
  1,317,191,454   144,607,028   (46,666,137  (6,302,540  (4,198,998  (171,266,990  —    1,233,363,817
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Accumulated depreciation
        
Network in operation and equipment
 Ps.565,890,076  Ps.—   Ps.(32,420,796 Ps.(907,756 Ps.106,646  Ps.(109,318,572 Ps.89,594,858  Ps.512,944,456
 
Buildings
  8,399,608   —    (503,192  —    (63,923  (2,739,797  1,697,581   6,790,277
 
Other assets
  85,574,405   —    (3,094,804  —    139,191   (7,960,435  10,516,865   85,175,222
 
Spare parts for the operation of the network
  101,155   —    (55,866  —    (12,152  (400,001  169,822   (197,042
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 Ps.659,965,244  Ps.—   Ps.(36,074,658 Ps.(907,756 Ps.169,762  Ps.(120,418,805 Ps.101,979,126  Ps.604,712,913
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net Cost
 Ps.657,226,210  Ps.144,607,028  Ps.(10,591,479 Ps.(5,394,784 Ps.(4,368,760 Ps.(50,848,185 Ps.(101,979,126 Ps.628,650,904
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
(1)
The construction in progress includes fixed and mobile network installations, as well as satellite and fiber optic developments that are in the process of being installed
F-4
8

(2)
Includes disposals for the sale of 2,980 and 224 telecommunications towers on March 30 and July 31, 2023, respectively, owned by its subsidiary in Peru to Sitios Latam.
(3)
It includes disposals related to the sale of 1,388 telecommunications towers on February 3, 2023, owned by its subsidiary in the Dominican Republic to Sitios Latam.
(4)
Includes the surplus associated with the telecommunications towers that were transferred by the sale to Sitios Latam, described previously, for an amount of Ps. (6,957,275)
. In addition, includes the surplus associated with the valuation of the telecommunications towers of EuroTeleSites Group, for an amount of Ps. 1,562,491.
(5)
Includes a hyperinflation adjustment associated to Argentinean subsidiaries for an amount of Ps. (5,956,256).
The completion period of construction in progress is variable and depends upon the type of plant and equipment under construction.
b) Revaluation of t
e
lecommunicationstelecommunications towers
The Fairfair value of the passive infrastructure of telecommunications towers was determined using the “income approach” method through a discounted cash flow model (DFC)(DCF) where, among others, inputs such as average rents per tower were used, contract term and discount rates considering market information.
As of December 31, 2020 and 2021, date ofmentioned in Note 12, on October 1, 2023 the complement for revaluation the fair valuessurplus of the passive infrastructure of the telecommunicationstelecommunication towers were determinate by a valuation specialist with experience in the industry. The complement for the revaluation of the passive infrastructure of the telecommunications towers amounted to Ps.
107,152,628 and 98,172,675, respectively, andfrom its subsidiary EuroTeleSites AG was recognized in OCI the change in revaluation did not havefor an impactamount of Ps. 497,628 net of deferred taxes.
during 2020. For
the year 
ended
as of December 31, 2021 the impact amounted to Ps. 6,450,825.
F-4
5

Table of Contents
The information to be disclosed on the fair value measurement for the revalued telecommunications towers is provided in Note 19.
   2020   
2021
 
Book value as of December 31, (cost model)
  
Ps.

615,777,003   
Ps.
633,024,004
 
Supplement for change in accounting policy
   107,152,628   
 
98,172,675
 
   
 
 
   
 
 
 
Book value and fair value as of December 31, (revaluation model)
  Ps.722,929,631   
Ps.
731,196,679
 
   
 
 
   
 
 
 
c) Relevant information related to the computation of the capitalized borrowing costs is as follows:
 
  
Year ended December 31,
   
Year ended December 31,
 
  2019   2020   
2021
   2021   2022   
2023
 
Amount invested in the acquisition of qualifying assets
   Ps. 50,783,957    Ps. 46,528,232    
Ps. 38,573,605
 
   Ps. 38,573,605    Ps. 30,161,647   
 
Ps. 25,489,098
 
Capitalized interest
   2,233,358    1,771,613   
 
1,527,259
 
   1,527,259    1,514,654   
 
1,442,077
 
Capitalization rate
   4.4%   3.8%  
 
4.0
%   4.0%    5.0%   
 
5.7%
 
Capitalized interest is being amortized over a period of estimated useful life of the related assets.

F-4
9

Table of Contents
Note 11. Intangible assets, net and goodwill
a)
An analysis of intangible assets at December 31, 2019, 20202021, 2022 and 20212023 is as follows:
 
  For the year ended December 31, 2019 
  Balance at
beginning of
year
  Acquisitions  Acquisitions
in business
combinations
  Disposals and
other
  Amortization
of the year
  Effect of
translation of
foreign
subsidiaries
and
Hyperinflation
adjustment
  Balance at end
of year
 
Licenses and rights of use
 Ps.233,478,974  
Ps.
13,206,877  Ps.7,844,339  Ps.7,286,114  Ps.—    Ps.(15,715,442 Ps.246,100,862 
Accumulated amortization
  (130,180,579  —     —     (2,391,624  (11,577,160  9,481,480   (134,667,883
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net
  103,298,395   13,206,877   7,844,339   4,894,490   (11,577,160
)
 
  (6,233,962
)
 
  111,432,979 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Trademarks
  28,207,166   53,467   
— 
 
   (6,012
)
 
  
  
   (835,613
)
 
  27,419,008 
Accumulated amortization
  (23,539,961
)
 
  0
  
   
  
   0
  
   (1,008,483
)
 
  618,145   (23,930,299
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net
  4,667,205   53,467   
  
   (6,012
)
 
  (1,008,483
  (217,468
)
 
  3,488,709 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Customer relationships
  25,543,068   20,248   
—  
   5,507   
  
   (2,693,812
)
 
  22,875,011 
Accumulated amortization
  (18,761,537
)
 
  0
  
   
  
   0
  
   (3,371,924  2,357,831   (19,775,630
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net
  6,781,531   20,248   
— 
 
   5,507   (3,371,924  (335,981
)
 
  3,099,381 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Software licenses
  14,309,258   2,729,480   
  
   (949,858
  0
  
   (2,984,770
)
 
  13,104,110 
Accumulated amortization
  (7,704,803
)
 
  0
 
 
   
  
   (1
)
 
  (2,479,088
)
 
  2,183,149   (8,000,743
)
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net
  6,604,455   2,729,480   
  
   (949,859
)
 
  (2,479,088
)
 
  (801,621
)
 
  5,103,367 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Content rights
  7,549,709   1,427,694   
— 
 
   1,638,007   
  
   (455,228
)
 
  10,160,182 
Accumulated amortization
  (6,763,592
)
 
  
— 
 
   
  
   (8,720
)
 
  (1,772,779
)
 
  429,862   (8,115,229
)
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net
  786,117   1,427,694   
  
   1,629,287   (1,772,779
)
 
  (25,366
)
 
  2,044,953 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total of intangibles, net
 
Ps.
122,137,703  
Ps.
17,437,766  Ps.7,844,339  Ps.5,573,413  Ps.(20,209,434 Ps.(7,614,398 Ps.125,169,389 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Goodwill
 
Ps.
145,566,497  
Ps
.
—    Ps.10,869,571  Ps.(843,005  —    Ps.(2,693,262 Ps.152,899,801 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 

F-4
6

   For the year ended December 31, 2020 
   Balance at
beginning of
year
  Acquisitions   Acquisitions
in business
combinations
  Disposals and
other
  Amortization
of the year
  Effect of
translation of
foreign
subsidiaries
and
Hyperinflation
adjustment
  Balance at end
of year
 
Licenses and rights of use
 Ps.246,100,862  Ps.15,079,714  Ps.4,436,313  Ps.1,502,981  Ps.—    Ps.(14,029,709 Ps.253,090,161 
Accumulated amortization
  (134,667,883  —     —     105,892   (14,274,497  14,227,424   (134,609,064
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net
  111,432,979   15,079,714   4,436,313   1,608,873   (14,274,497  197,715   118,481,097 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Trademarks
  27,419,008   162,309   12,110   4,000   —     1,534,938   29,132,365 
Accumulated amortization
  (23,930,299  —     —     (4,276  (300,727  (1,119,645  (25,354,947
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net
  3,488,709   162,309   12,110   (276  (300,727  415,293   3,777,418 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Customer relationships
  22,875,011   1,935   2,689,718   (5,763  —     4,018,365   29,579,266 
Accumulated amortization
  (19,775,630  —     —     855   (1,654,237  (3,996,593  (25,425,605
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net
  3,099,381   1,935   2,689,718   (4,908  (1,654,237  21,772   4,153,661 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Software licenses
  13,104,110   2,445,784   36   (2,485,429  —     4,236,645   17,301,146 
Accumulated amortization
  (8,000,743  —     —     2,013,617   (2,667,870  (3,578,452  (12,233,448
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net
  5,103,367   2,445,784   36   (471,812  (2,667,870  658,193   5,067,698 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Content rights
  10,160,182   1,570,415   —     (313,942  —     619,657   12,036,312 
Accumulated amortization
  (8,115,229  —     —     —     (1,440,749  (503,241  (10,059,219
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net
  2,044,953   1,570,415   —     (313,942  (1,440,749  116,416   1,977,093 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total of intangibles, net
 Ps.125,169,389  Ps.19,260,157  Ps.7,138,177  Ps.817,935  Ps.(20,338,080 Ps.1,409,389  Ps.133,456,967 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Goodwill
 Ps.152,899,801  Ps.—    Ps.(7,014,120 Ps.(537,343 Ps.—    Ps.(2,295,479 Ps.143,052,859 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
 For the year ended December 31, 2021 
 Balance at
beginning of
year
 Acquisitions Disposals and
other
 Amortization
of the year
 Effect of
translation of
foreign
subsidiaries
and
Hyperinflation
adjustment
 Balance at end
of year
 
  For the year ended December 31, 2021 
  Balance at
beginning of
year
 Acquisitions Disposals and
other
(1)
 Amortization
of the year
 (2)
 Effect of
translation of
foreign
subsidiaries
and
Hyperinflation
adjustment
 Balance at end
of year
 
Licenses and rights of use
 
Ps.
 
253,090,161
 
 
Ps.
 
24,406,905
 
 
Ps.
 
(4,427,685
 
Ps.
 
—  
 
 
Ps.
 
(7,011,691
 
Ps.
 
266,057,690
 
  Ps.253,090,161  Ps.24,406,905  Ps.(4,427,685 Ps.—   Ps.(7,011,691 Ps.266,057,690 
Accumulated amortization
 
 
(134,609,064
 
 
—  
 
 
 
6,764,067
 
 
 
(14,682,451
 
 
6,737,503
 
 
 
(135,789,945
   (134,609,064  —    6,469,128   (14,387,511  6,737,502   (135,789,945
 
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
Net
 
 
118,481,097
 
 
 
24,406,905
 
 
 
2,336,382
 
 
 
(14,682,451
 
 
(274,188
 
 
130,267,745
 
   118,481,097   24,406,905   2,041,443   (14,387,511  (274,189  130,267,745 
 
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
Trademarks
(1)
 
 
29,132,365
 
 
 
75,100
 
 
 
(1,129,666
 
 
—  
 
 
 
(401,946
 
 
27,675,853
 
Trademarks
   29,132,365   75,100   (1,129,666  —    (401,946  27,675,853 
Accumulated amortization
 
 
(25,354,947
 
 
—  
 
 
 
802,717
 
 
 
(140,205
 
 
308,745
 
 
 
(24,383,690
   (25,354,947  —    802,717   (140,205  308,745   (24,383,690
 
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
Net
 
 
3,777,418
 
 
 
75,100
 
 
 
(326,949
 
 
(140,205
 
 
(93,201
 
 
3,292,163
 
   3,777,418   75,100   (326,949  (140,205  (93,201  3,292,163 
 
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
Customer relationships
(1)
 
 
29,579,266
 
 
 
229,936
 
 
 
(4,133,408
 
 
—  
 
 
 
(1,105,668
 
 
24,570,126
 
Customer relationships
   29,579,266   229,936   (4,133,408  —    (1,105,668  24,570,126 
Accumulated amortization
 
 
(25,425,605
 
 
—  
 
 
 
3,830,742
 
 
 
(707,500
 
 
1,093,401
 
 
 
(21,208,962
   (25,425,605  —    3,830,742   (707,500  1,093,401   (21,208,962
 
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
Net
 
 
4,153,661
 
 
 
229,936
 
 
 
(302,666
 
 
(707,500
 
 
(12,267
 
 
3,361,164
 
   4,153,661   229,936   (302,666  (707,500  (12,267  3,361,164 
 
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
Software licenses
 
 
17,301,146
 
 
 
2,660,330
 
 
 
(3,484,755
 
 
—  
 
 
 
(1,225,585
 
 
15,251,136
 
   17,301,146   2,660,330   (3,484,755  —    (1,225,585  15,251,136 
Accumulated amortization
 
 
(12,233,448
 
 
(626
 
 
3,482,440
 
 
 
(2,738,978
 
 
1,052,938
 
 
 
(10,437,674
   (12,233,448  (626  3,482,440   (2,738,978  1,052,938   (10,437,674
 
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
Net
 
 
5,067,698
 
 
 
2,659,704
 
 
 
(2,315
 
 
(2,738,978
 
 
(172,647
 
 
4,813,462
 
   5,067,698   2,659,704   (2,315  (2,738,978  (172,647  4,813,462 
 
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
Content rights
 
 
12,036,312
 
 
 
818,436
 
 
 
(281,747
 
 
—  
 
 
 
429,319
 
 
 
13,002,320
 
   12,036,312   818,436   (281,747  —    429,319   13,002,320 
Accumulated amortization
 
 
(10,059,219
 
 
—  
 
 
 
(147,668
 
 
(899,666
 
 
(404,537
 
 
(11,511,090
   (10,059,219  —    (147,668  (899,666  (404,537  (11,511,090
 
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
Net
 
 
1,977,093
 
 
 
818,436
 
 
 
(429,415
 
 
(899,666
 
 
24,782
 
 
 
1,491,230
 
   1,977,093   818,436   (429,415  (899,666  24,782   1,491,230 
 
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
Total of intangibles, net
 Ps.
133,456,967
 
 Ps.28,190,081
 
 Ps.1,275,037
 
 Ps.(19,168,800
 Ps.(527,521
 Ps.143,225,764
 
  Ps.133,456,967  Ps.28,190,081  Ps.980,098  Ps.(18,873,860 Ps.(527,522 Ps.143,225,764 
 
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
Goodwill
(1)
 Ps.143,052,859
 
 Ps.
—  
 
 Ps.(3,516,287) Ps.
—  
 
 Ps.(2,958,378) Ps.136,578,194
 
Goodwill
  Ps.143,052,859  Ps.—   Ps.(3,516,287 Ps.—   Ps.(2,958,378 Ps.136,578,194 
 
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
 
(1)
Includes disposals related to the sale of TracFone. See
Note
2Ac. 

(2)
Discontinued operations of Panama and the ClaroVTR joint venture. See Note 2. Ac.
   For the year ended December 31, 2022 
   Balance at
beginning of
year
  Acquisitions   Acquisitions
in business
combinations
   Disposals and
other
(1)
  Amortization
of the year
(2)
  Effect of
translation of
foreign
subsidiaries
and
Hyperinflation
adjustment
  Balance at end
of year
 
Licenses and rights of use
  Ps.266,057,690  Ps.2,656,914   Ps.95,147   Ps.(1,785,196 Ps.—   Ps.(11,475,085 Ps.255,549,470 
Accumulated amortization
   (135,789,945  —     —     1,436,078   (13,323,410  5,252,171   (142,425,106
  
 
 
  
 
 
   
 
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Net
   130,267,745   2,656,914    95,147    (349,118  (13,323,410  (6,222,914  113,124,364 
  
 
 
  
 
 
   
 
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Trademarks
   27,675,853   183,631    40,412    (66,000  —    (1,366,541  26,467,355 
Accumulated amortization
   (24,383,690  —     —     —    (110,974  1,041,866   (23,452,798
  
 
 
  
 
 
   
 
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Net
   3,292,163   183,631    40,412    (66,000  (110,974  (324,675  3,014,557 
  
 
 
  
 
 
   
 
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Customer relationships
   24,570,126   22,842    2,863,765    —    —    (3,267,041  24,189,692 
Accumulated amortization
   (21,208,962  —     —     (18  (954,256  2,831,217   (19,332,019
  
 
 
  
 
 
   
 
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Net
   3,361,164   22,842    2,863,765    (18  (954,256  (435,824  4,857,673 
  
 
 
  
 
 
   
 
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Software licenses
   15,251,136   5,108,485    14,205    (797,084  —    (3,358,767  16,217,975 
Accumulated amortization
   (10,437,674  —     —     976,417   (2,645,400  2,591,274   (9,515,383
  
 
 
  
 
 
   
 
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Net
   4,813,462   5,108,485    14,205    179,333   (2,645,400  (767,493  6,702,592 
  
 
 
  
 
 
   
 
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Content rights
   13,002,320   874,961    —     (263,798  —    (830,079  12,783,404 
Accumulated amortization
   (11,511,090  —     —     3,382   (881,352  799,892   (11,589,168
  
 
 
  
 
 
   
 
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Net
   1,491,230   874,961    —     (260,416  (881,352  (30,187  1,194,236 
  
 
 
  
 
 
   
 
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Total of intangibles, net
  Ps.143,225,764  Ps.8,846,833   Ps.3,013,529   Ps.(496,219 Ps.(17,915,392 Ps.(7,781,093 Ps.128,893,422 
  
 
 
  
 
 
   
 
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Goodwill
  Ps.136,578,194  Ps.14,447,186   Ps.280,192   Ps.(2,230,610 Ps.(149,696 Ps.(7,803,901 Ps.141,121,365 
  
 
 
  
 
 
   
 
 
   
 
 
  
 
 
  
 
 
  
 
 
 
F-4
7
(1)
Includes the transaction related to Panama and Chile disposal.
F-
50

Table of Contents
(2)
Includes the discontinued operations of Panama and the ClaroVTR joint venture. See Note 2, Ac.
   
For the year ended December 31, 2023
 
   
Balance at
beginning of
year
  
Acquisitions
   
Disposals and
other
  
Amortization
of the year
  
Incorporation
(Merge, Spin
off, Sale/other)
   
Effect of
translation of
foreign
subsidiaries
and
Hyperinflation
adjustment
  
Balance at end
of year
 
Licenses and rights of use
  
Ps.
255,549,470
 
 
Ps.
18,814,933
 
  
Ps.
1,201,681
 
 
Ps.
— 
 
 
Ps.
— 
 
  
Ps.
(28,239,255
 
Ps.
247,326,829
 
Accumulated amortization
  
 
(142,425,106
 
 
— 
 
  
 
(63,964
 
 
(11,643,803
 
 
— 
 
  
 
11,328,430
 
 
 
(142,804,443
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Net
  
 
113,124,364
 
 
 
18,814,933
 
  
 
1,137,717
 
 
 
(11,643,803
 
 
— 
 
  
 
(16,910,825
 
 
104,522,386
 
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Trademarks
  
 
26,467,355
 
 
 
198,532
 
  
 
(11,554
 
 
— 
 
 
 
555
 
  
 
(1,313,470
 
 
25,341,418
 
Accumulated amortization
  
 
(23,452,798
 
 
— 
 
  
 
571
 
 
 
(139,038
 
 
— 
 
  
 
1,017,013
 
 
 
(22,574,252
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Net
  
 
3,014,557
 
 
 
198,532
 
  
 
(10,983
 
 
(139,038
 
 
555
 
  
 
(296,457
 
 
2,767,166
 
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Customer relationships
  
 
24,189,692
 
 
 
5,550
 
  
 
— 
 
 
 
— 
 
 
 
— 
 
  
 
(3,505,503
 
 
20,689,739
 
Accumulated amortization
  
 
(19,332,019
 
 
— 
 
  
 
— 
 
 
 
(987,971
 
 
— 
 
  
 
3,091,265
 
 
 
(17,228,725
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Net
  
 
4,857,673
 
 
 
5,550
 
  
 
— 
 
 
 
(987,971
 
 
— 
 
  
 
(414,238
 
 
3,461,014
 
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Software licenses
  
 
16,217,975
 
 
 
5,846,212
 
  
 
313,446
 
 
 
— 
 
 
 
— 
 
  
 
(3,021,588
 
 
19,356,045
 
Accumulated amortization
  
 
(9,515,383
 
 
— 
 
  
 
1,102,658
 
 
 
(3,675,747
 
 
— 
 
  
 
2,330,312
 
 
 
(9,758,160
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Net
  
 
6,702,592
 
 
 
5,846,212
 
  
 
1,416,104
 
 
 
(3,675,747
 
 
— 
 
  
 
(691,276
 
 
9,597,885
 
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Content rights
  
 
12,783,404
 
 
 
737,465
 
  
 
(50,175
 
 
— 
 
 
 
— 
 
  
 
(1,854,001
 
 
11,616,693
 
Accumulated amortization
  
 
(11,589,168
 
 
— 
 
  
 
— 
 
 
 
(672,760
 
 
— 
 
  
 
1,795,303
 
 
 
(10,466,625
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Net
  
 
1,194,236
 
 
 
737,465
 
  
 
(50,175
 
 
(672,760
 
 
— 
 
  
 
(58,698
 
 
1,150,068
 
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Total of intangibles, net
  
Ps.
128,893,422
 
 
Ps.
25,602,692
 
  
Ps.
2,492,663
 
 
Ps.
(17,119,319
 
Ps.
555
 
  
Ps.
(18,371,494
 
Ps.
121,498,519
 
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Goodwill
  
Ps.
141,121,365
 
 
Ps.
— 
 
  
Ps.
— 
 
 
Ps.
— 
 
 
Ps.
— 
 
  
Ps.
4,957,532
 
 
Ps.
146,078,897
 
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
b) The aggregate carrying amount of goodwill is allocated by segment as follows:
 
  2020   
2021
   2022   
2023
 
Europe
   Ps
.
 
 
53,388,139
   
 
Ps
.
 
 
52,307,190
 
  Ps.49,465,916   
Ps.
55,414,076
 
Brazil
   18,730,686   
 
18,017,916
 
Brazil
(1)
   31,085,202   
 
29,437,800
 
Puerto Rico
   17,463,394   
 
17,463,394
 
   17,463,394   
 
17,463,394
 
Dominican Republic
   14,186,723   
 
14,186,723
 
   14,186,723   
 
14,186,723
 
Colombia
   12,253,743   
 
11,685,585
 
   8,495,090   
 
9,304,613
 
México
   10,148,380   
 
10,164,814
 
Mexico
   9,233,694   
 
9,186,415
 
Peru
   2,710,979   
 
2,532,770
 
   2,523,467   
 
2,448,614
 
Chile
   2,558,098   
 
2,311,239
 
El Salvador
   2,499,544   
 
2,510,595
 
   2,522,768   
 
2,522,768
 
United States (Tracfone)
(3)
   3,362,900   
 
0  
 
Ecuador
   2,155,384   
 
2,155,384
 
   2,155,384   
 
2,155,384
 
Guatemala
   2,301,533   
 
1,947,203
 
   2,245,161   
 
2,212,615
 
Other countries
   1,293,356   
 
1,295,381
 
   1,744,566   
 
1,746,495
 
  
 
   
 
 
 
   
 
 
   Ps.143,052,859   
 
Ps.136,578,194
 
Ps.141,121,365   
Ps.
146,078,897
 
  
 
   
 
 
 
   
 
 
 

(1)
Includes a goodwill as a result of the Jonava acquisition. See Note 12a.
c) The following is a description of the major changes in the “Licenses and rights of use” caption during the years ended December 31, 2019, 20202021, 2022 and 2021:
2019 Acquisitions
i) In 2019, Claro Brasil increased its licenses value by Ps.
3,457,251 by renewal licenses Anatel and reversion of IRU of Telxus referring to ICMS.
ii) In 2019,
AMX’s subsidiary in
Austria acquired licenses to operate certain frequencies for Ps.
3,023,732, (3.5 GHz; EUR 64.3 mn), Belarus (2.1 GHz; EUR 9.5 mn) and Croatia (2.1 GHz; EUR 7.2 mn).
iii) In 2019, Telmex increased its licenses value by Ps.
459,668 for rights to use IFETEL with a validity of 20 years, and a right to use submarine cable with a validity of 10 years.
iv) In January 2019, Telcel acquired licenses for an amount of Ps.1,649,525 for PC´s 98 concessions titles and September 30, 2019 for 400 MHZ concessions titles.
v) In December 2019, Comcel increased its licenses value by Ps.
2,753,768 or (468,511,573,375 Colombian pesos) in accordance with Res.3386 of December 23, granted Claro (Comcel) the 20 years renewal of 10 MHz of spectrum in the 1900 MHz band.
vi) Additionally, in 2019, the Company acquired other licenses in Puerto Rico, Argentina, Guatemala, Panamá and other countries in the amount of Ps.
1,862,934.
2020 Acquisitions
i) In February 2020, Comcel increased its licenses value by Ps.
9,246,825 for an auction of the 30 Mhz spectrum in the 2,500 band for a period of 20 years in accordance with resolution. 325,326 and 327 of February 20, 2020 issued by the Ministry of Information and Communication (MINTIC)
ii) In 2020, Telcel acquired licenses for an amount Ps.
1,806,875 for Axtel and Ultra Vision concession titles valid from 2020 to 2040.
iii) In January 2020, CTE acquired licenses by Ps.
620,052 for 12 pairs of frequencies, advance payment of Advanced Wireless Services (AWS) band and complementary payment of AWS band of block 4.
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4
8

Table of Contents
iv) In 2020, TAG acquired licenses for the right of us for Ps.
1,704,280, in Slovenia and VIP Movil 1940E.
v) Additionally, in 2020, the Company acquired other licenses in Puerto Rico, Argentina, Uruguay, Honduras, Paraguay, Brasil and other countries in the amount of 
Ps.
1,701,682.2023:
2021 Acquisitions
i) In December the subsidiary Claro BrasilS.A. acquired a 5G license for
Ps.
17,789,163
carried out by ANATEL in November 2021, for the sale of radio frequency bands. The total amount of this license was recorded in the intangibles lineas intangible assets caption on December 31, 2021.
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51

Table of Contents
ii) During the year, AMX’s subsidiary in Austria acquired licenses for
Ps.
1,752,128
. 1,752,128.
iii) In November, AMX’s subsidiary in the Dominican Republic acquired a 5G concession and right of operation until
2041 for an amount of Ps.
2,008,503
. 2,008,503.

iv) AMX’s subsidiary in Colombia renewed spectrum at 5 MHZ in the 1900 MHZ band for an amount of
Ps.
1,599,473
according to resolution 2802 of October 2021, and made acquisitions of terrestrial fiber optics and submarine cable valid for
2 and 3 years
.years.
v) In February 2021, AMX’s subsidiary in El Salvador acquired licenses for an amount of
Ps.139,363
.
Ps.139,363. The concession is for 10 MHZ in the 1,900 MHZ mobile network bandwidth coverage in the national territory, exploitable as of February 28, 2021 with validity of
20 years.
vi) In February 2021, AMX’s subsidiary in Chile acquired a concession for
Ps.
411,375 for
the Concession of Band 1900 MHZ with a term
of 10 years.
Additionally, in 2021, the Company acquired other licenses in Mexico, Guatemala, Brazil, Ecuador, Peru, Argentina and other countries for an amount of Ps. 706,900.
2022 Acquisitions
i) In August 2022, the Company obtained in Mexico, an extension of 9 spectrum frequency band concession titles, segment 1890-1895 MHz for mobile transmission and segment 1970-1975 MHz both for 20 years from April 2025, for an amount of Ps. 721,647.
ii) In March and September 2022, the Company made payments for a 2.5 MHz license in Argentina, which was obtained pursuant to resolution 3687 OC 4500114567 for Ps. 304,386 and resolution 1728/22-OC 4500137839 for an amount of Ps. 411,930 of ENACOM (the communications authority in Argentina), respectively.
iii) In May 2022, the Company’s subsidiary in Nicaragua renewed mobile frequency for 20 years (2022 to 2042) for an amount of Ps. 357,478.
iv) In August 2022, the Company added licenses in Austria as of the acquisition of the Bulgarian company, Stemo (an IT company that sells and integrates hardware solutions, produces and implements information systems and software solutions). Additionally, during the year 2022, Telekom Austria Group acquired licenses and rights of use in Macedonia, Belarus and Austria for an amount of Ps. 331,038, mainly Jetstream (a data-storing platform primarily for streaming data such as IoT device or streaming video or streaming data from any source).
v) During 2022, Claro S.A. acquired software development Claro Pay platform for an amount of Ps. 321,569.
Additionally, in 2022, the Company acquired other licenses in the Dominican Republic, Paraguay, Costa Rica and Colombia for an amount of Ps. 208,866.
2023 Acquisitions
i) In November 2023, the Company obtained in Argentina, pursuant to resolution 2023-1473 of ENACOM, a concession of spectrum in the 2.6 GHz 5G band for a 15 year-year period for an amount of Ps.8,731,237.
ii) In April 2023 the Company obtained in Croatia (via A1 Telekom Austria Group) a concession of secured spectrum in a public auction for a 15 year-period for an amount of Ps. 2,220,558. Additionally, in December 2023, the Company acquired in Bulgaria a spectrum license in the 700 MHz and 800 MHz segments for a 15 year-period for an amount of Ps. 422,502.
 
F-5
2

iii) In October 2023, the Company obtained a concession of 30 MHz and 2.500 MHz spectrum in Colombia for a 20-year period for an amount of Ps. 1,949,048. Additionally, during 2023, the Company acquires IRU´s for an amount of Ps. 214,792.
706,900
iv) In June of 2023, the Company obtained a 2.5 MHz spectrum license in Guatemala for an amount of Ps. 1,859,262.
v) In February and December 2023, the Company obtained in Mexico, an extension of spectrum frequency band concession titles for mobile transmission in the 835-845/880-890 MHz, 2514-2530/2634-2650 MHz and
2517-2530/2637-2650
MHz segments, respectively, for 20-year period for an amount of Ps. 1,239,373.
vi) In July 2023, the Company obtained in Uruguay frequency band concession titles for mobile transmission in the 3300-3400 MHz segment for a 25-year period for an amount of Ps. 464,828.
vii) During 2023, the Company acquired IRU´s in Puerto Rico for an amount of Ps. 296,247 and in the United States for an amount of Ps. 180,956.
viii) During 2023, the Company renewed in Brazil the 5G license carried out by ANATEL for an amount of Ps. 593,273.
ix) In March 2023, the Company obtained two concessions of spectrum band in Peru, which expires in January 2030 and December 2029, respectively, for an amount of Ps. 149,567. Additionally, during 2023, the Company acquired IRU for an amount of Ps. 132,387.
Additionally, in 2023, the Company acquired other licenses in Peru, Ecuador, El Salvador and Paraguay for an amount of Ps. 360,903.
Amortization of intangibles for the years ended December 31, 2019, 20202021, 2022 and 20212023 amounted to Ps.
20,209,434, 18,873,860, Ps.
20,338,080 18,065,088 and Ps.
19,168,800 17,119,319, respectively.
Some of the jurisdictions in which the Company operates can revoke their concessions under certain circumstances such as imminent danger to national security, national economy and natural disasters.
Note 12. Business combinations, acquisitions, and non-controlling interest and spin-off
a)
The following is a description of the major acquisitions of investments in associates and subsidiaries during the years ended December 31, 20202022 and 2021:2023:
Acquisitions 20202022
a)i) On April 20, 2022, after receiving the necessary approvals from local regulators, the Company reported that its Brazilian subsidiary Claro S.A. completed the previously announced acquisition of 32% of Grupo Oi’s mobile business in Brazil, through the acquisition of 100% of the shares of Jonava, it in accordance with the purchase agreement entered into between Grupo Oi as seller and Claro S.A. (as one of several buyers).
The final purchase price for the aforementioned acquisition was Ps. 14,232,166, net of cash acquired, of which an amount of Ps. 1,315,180 was withheld for price adjustment purposes and other conditions, in accordance with the purchase agreement. Additionally, Ps. 781,217 have been paid for transition services, which are provided by Grupo Oi to Claro S.A. during the following twelve months after the date of the transaction.
F-5
3

For Purchase Price Allocation, the Company determined the fair value of identifiable assets and liabilities based on fair values. Purchase accounting is substantially complete as of the date of consolidated financial statements and the value of assets acquired and liabilities assumed are as follows:
2022
Figures at
acquisition date
Current assets
Ps.2,815,999
Other non-current assets
3,323
Intangible assets (excluding goodwill)
2,836,537
Property, plant and equipment
1,356,916
Right-of-use
4,247,397
Total acquired assets
11,260,172
Accounts payable
(10,848,303
Other liabilities
(369,141
Total assumed liabilities
(11,217,444
Fair value of acquired assets and assumed liabilities – net of cash acquired
42,728
Acquisition price
14,232,166
Goodwill
Ps.14,189,438
On October 4, 2023, the Company reached an agreement on the value of the disputed purchase price, for which the amount of Ps. 658,048 was paid to the seller, corresponding to 50% of the originally retained amount of Ps. 1,315,180 (subject to procedural incidence), plus interest and monetary correction of Ps. 155,681. Due to the aforementioned, all pending issues and disputes between the seller and the Company, together with the other buyers, related to the determination of the acquisition price were concluded.
ii) During 2020,2022, the Company has acquired through its subsidiaries other entities for which it has paid Ps.
152,896, 670,051, net of acquired cash.cash acquired.
b)iii) The Company acquired an additional non-controlling interestinterests in its entities for an amount of Ps.
1,104,662. 39,596.
c) In December 2020,
Acquisitions 2023
i) On July 24, 2023, the offer submitted by our BrazilianCompany acquired, through its subsidiary Claro, jointly with Telefónica Brasil, S.A. and TIM, S.A. for the acquisitionAmérica Móvil, B.V., shares corresponding to 5.55% of the mobile business owned by Oi Group was accepted.voting rights in Telekom Austria AG from a private investor. Subsequently, on November 29, 2023, through a series of open market transactions, América Móvil, B.V. acquired an additional 1.85% of the voting rights, for an overall ownership in Telekom Austria AG of 58.4% of its total outstanding shares. The offer isdisbursements paid in theboth transactions amounts to Ps. 6,214,643.
ii) The Company acquired an additional non-controlling interests in its entities for an amount of R$16.5 billion, of which Claro will pay 22%. In consideration of such amount, Claro will receive 32% of Oi Group’s mobile business customer basePs. 49,302.
b) Joint Venture
A) Constitution–
On October 6, 2022, LLA and approximately 4.7 thousand mobile access sites. The closing ofthe Company announced that they completed the transaction is subject to customary conditions including regulatory approvals from Anatelcombine their operations in Chile (VTR and Conselho Administrativo de Defesa Econômica, CADE.Claro Chile, respectively) in order to create a 50:50 joint venture known as ClaroVTR.

F-5
F-4
94

Acquisitions 2021
On the date of the joint venture’s formation, the Company recognized a loss of Ps. 1,138,859, and recycled a loss of Ps. 8,252,250 from cumulative translation adjustment to net profit. The effect of the transaction was classified as discontinued operations in these consolidated financial statements on October 6, 2022. See Note 2Ac.
a) TheAs of to December 31, 2023 and 2022, the Company acquired an additional non-controlling interestrecognized a loss in the application of the equity method in the amount of Ps. 5,374,969 and Ps. 1,924,040, respectively.
In September 2023, the Company identified impairment indicators and assesses that there is objective evidence that its entities forjoint venture is impaired, hence, an amount of Ps.7,720Ps. 4,677,782 was recorded, as the difference between the recoverable amount of the JV and its carrying value, and it is recognized in the “valuation of derivatives, interest cost from labor obligations and other financial items”, in the consolidated statements of comprehensive income.

B) Transaction Agreement between the Company and LLA–
On December 26, 2023, the Company entered into a transaction agreement (the “Agreement”) with LLA, ClaroVTR, and certain affiliates of the Company and LLA. Pursuant to the transaction agreement, the Company and LLA agreed to, collectively in proportion to their respective shareholding percentage interest or individually, provide additional capital required by ClaroVTR during the calendar year 2023 and through June 30, 2024 in an aggregate amount not to exceed CLP$972.4 billion (Ps. 18,728,611). This commitment seeks to support the execution of the business plan of ClaroVTR, and CLP$289.3 billion of the commitment aims to permit the refinancing of certain bank debt guaranteed by the Company and existing at the formation of ClaroVTR. Furthermore, the Agreement provides the Company and LLA with an exercisable catch-up right on or before August 1, 2024 to cure any failure to fund the Company’s or LLA’s respective portions of the Commitment in order to maintain ClaroVTR as an 50:50 joint venture.
As of December 31, 2023, the Company has purchased convertible notes from ClaroVTR with an aggregate principal amount of CLP$742.1 billion (including the amounts used for the refinancing of bank debt) convertible into shares of ClaroVTR. Subject to the terms of the Agreement, upon the conversion of such convertible notes and any additional convertible notes the Company may purchase prior to August 1, 2024, ClaroVTR may cease to be a 50:50 joint venture if LLA does not exercise its catch-up right under the Agreement. As of the date of the consolidated financial statements, LLA has not performed any financing as per Agreement. Additionally, the Company recorded an impairment related to these operations totaling Ps. 12,184,562 on December 31, 2023. This amount is presented in Note 22 to the accompanying consolidated financial statements.
c) Consolidated subsidiaries with non-controlling interests
The Company has control over Telekom Austria, which has a material non-controlling interest. Set out below is summarized information as of December 31, 20202022 and 20212023 of TKA’sTelekom Austria’s consolidated financial statements.
The amounts disclosed for this subsidiary are before inter-company eliminations and using the same accounting policies of América Móvil.
F-5
5

Selected financial data from the consolidated statements of financial position
 
  December 31,   
December 31,
 
  2020   
2021
   2022   
2023
 
Assets:
      
Current assets
  Ps
.
32,775,046   
Ps.
39,781,192
   Ps.28,648,246  
Ps.
27,224,829
 
Non-current assets
   150,747,947   
 
142,407,870
 
   126,125,904   
 
132,242,415
 
  
 
   
 
 
 
   
 
 
Total assets
  Ps.183,522,993   
Ps.
182,189,062
 
  Ps.154,774,150   
Ps.
159,467,244
 
  
 
   
 
 
 
   
 
 
Liabilities and equity:
      
Current liabilities
  Ps.49,942,415   
Ps.
68,795,807
 
  Ps.50,106,617   
Ps.
34,406,225
 
Non-current liabilities
   82,293,652   
 
58,312,238
 
   47,420,775   
 
56,285,251
 
  
 
   
 
 
 
   
 
 
Total liabilities
   132,236,067   
 
127,108,045
 
   97,527,392   
 
90,691,476
 
Equity attributable to equity holders of the parent
   26,129,649   
 
28,066,198
 
   29,173,281   
 
40,127,194
 
Non-controlling interest
   25,157,277   
 
27,014,819
 
   28,073,477   
 
28,648,574
 
  
 
   
 
 
 
   
 
 
Total equity
  Ps.51,286,926   
Ps.
55,081,017
 
  Ps.57,246,758   
Ps.
68,775,768
 
  
 
   
 
 
 
   
 
 
Total liabilities and equity
  
Ps.

183,522,993   
Ps.
182,189,062
 
  Ps.154,774,150   
Ps.
159,467,244
 
  
 
   
 
 
 
   
 
 
Summarized consolidated statements of comprehensive income
 
  
For the year ended December 31,
   
For the year ended December 31,
 
  2019   2020   
2021
   2021   2022   
2023
 
Operating revenues
  Ps.98,420,289   Ps.111,472,191   
Ps.
113,838,487
 
  Ps.113,838,487   Ps.105,956,057   
Ps.
100,762,884
 
Operating costs and expenses
   89,732,428    98,312,325   
 
98,346,896
 
   98,346,896    89,800,536   
 
85,320,071
 
  
 
   
 
   
 
 
 
   
 
   
 
 
Operating income
  Ps.8,687,861   Ps.13,159,866   
Ps.
15,491,591
 
  Ps.15,491,591   Ps.16,155,521   
Ps.
15,442,813
 
  
 
   
 
   
 
 
 
   
 
   
 
 
Net income
  Ps.5,051,145   Ps.7,787,388   
Ps.
9,104,962
 
  Ps.9,104,962   Ps.11,795,662   
Ps.
10,929,263
 
  
 
   
 
   
 
 
 
   
 
   
 
 
Total comprehensive income
  Ps.1,466,783   Ps.12,103,406   
Ps.
7,790,499
 
  Ps.7,790,499   Ps.6,127,362   
Ps.
3,621,780
 
  
 
   
 
   
 
 
 
   
 
   
 
 
Net income attributable to:
         
Equity holders of the parent
  Ps.2,565,733   Ps.3,986,412   
Ps.
4,629,816
 
  Ps.4,629,816   Ps.6,000,942   
Ps.
6,380,385
 
Non-controlling interest
   2,485,412    3,800,976   
 
4,475,146
 
   4,475,146    5,794,720   
 
4,548,878
 
  
 
   
 
   
 
 
 
   
 
   
 
 
  Ps.5,051,145   Ps.7,787,388   
Ps.
9,104,962
 
Ps.9,104,962   Ps.11,795,662   
Ps.
10,929,263
 
  
 
   
 
   
 
 
 
   
 
   
 
 
Comprehensive income attributable to:
         
Equity holders of the parent
  Ps.748,059   Ps.6,172,737   
Ps.
3,973,154
 
  Ps.3,973,154   Ps.3,124,955   
Ps.
2,114,356
 
Non-controlling interest
   718,724    5,930,669   
 
3,817,345
 
   3,817,345    3,002,407   
 
1,507,424
 
  
 
   
 
   
 
 
 
   
 
   
 
 
  Ps.1,466,783   Ps.12,103,406   
Ps.
7,790,499
 
Ps.7,790,499   Ps.6,127,362   
Ps.
3,621,780
 
  
 
   
 
   
 
 
 
   
 
   
 
 
On September 2023 Telekom Austria was spun-off transferring all site operations to EuroTeleSites AG. The Company has control over EuroTeleSites AG, which has a material non-controlling interest. As of December 31, 2023, EuroTeleSites AG has a consolidated net total assets of Ps. 4,365,235, a consolidated net income for the year of Ps. 126,103, and a net income for non-controlling interest of Ps. 52,485.
d) Spin-off of telecommunication towers to Sitios Latam
On August 8, 2022, the Company announced that it met the conditions and completed the necessary steps to spin-off its telecommunications towers and other related passive infrastructure in Latin America outside of Mexico, other than Colombia and the Company’s telecommunications towers existing in Peru prior to the spin-off, and
 
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6

contribute to Sitios Latam a portion of the Company’s capital stock, assets and liabilities, mainly consisting of the shares of the Company’s subsidiaries holding telecommunications towers and other associated infrastructure in Latin America outside of Mexico, other than Colombia and the Company’s telecommunications towers existing in Peru prior to the spin-off. The CNBV authorized the registration of the shares of Sitios Latam, which allowed it to complete its listing process as a public company on September 29, 2022.
As of the spin-off effective date, the assets and liabilities of Sitios Latam no longer appear in the consolidated statement of financial position of the Company. The Company transferred assets of Ps. 102,609,435 mainly in property, plant and equipment, right of use and other assets and accounts receivable, Ps. 100,026,548 in debt, lease debt and other net liabilities, which resulted in net assets of Ps. 2,582,887.
The Company, through its subsidiaries, is party to lease agreements with Sitios Latam (its related party) for the use of the space on the towers. The typical term of our site agreements is either
five
or 10 years, which is a mandatory minimum, except when the underlying floor lease expires in less than the
five
- or 10-year term, as applicable, in which case the site agreement may expire simultaneously with the floor lease. In most cases, the site agreement is renewable at the customer’s request.
e) Spin-off of telecommunication towers to EuroTeleSites
On February 6, 2023, the Company entered into a definitive agreement with OBAG, pursuant to which, the Company and OBAG agreed to, among other things, formally execute the spin-off of the mobile towers in most of the countries in which Telekom Austria AG operates, including Austria.
On August 1, 2023, the tower spin-off was approved by the shareholders of Telekom Austria AG in an extraordinary shareholders’ meeting. On September 22, 2023, Telekom Austria completed the spin-off of its telecommunications towers and other related passive infrastructure in Austria, Bulgaria, Croatia, North Macedonia, Serbia and Slovenia, and revalued its telecommunication towers through an appraisal, hence, the spun-off tower company, EuroTeleSites AG, recognized a revaluation surplus for that assets as the aforementioned date.
As a consequence of the foregoing, the Company recognized the complement for revaluation surplus figure in the consolidated financial statements as disclosed in Note 10.
In addition, Telekom Austria AG listed the shares of EuroTeleSites AG, on the Vienna Stock Exchange. The Telekom Austria AG shareholders received
one EuroTeleSites AG share for every four
Telekom Austria AG shares they owned. Both of Telekom Austria and EuroTeleSites AG are indirect subsidiaries of the Company over which the Company retains a controlling interest.
As part of the spin-off, the Telekom Austria AG transferred to EuroTelesites AG assets of Ps. 36,599 million (1,953 million euros) mainly in property, plant and equipment, right of use and other assets and accounts receivable, Ps. 47,675 million (2,543 million euros) in debt, lease debt and other net liabilities, which resulted in net assets’ deficit of Ps. 11,076 million (591 million euros).
Note 13. Income Taxes
As explained previously in these consolidated financial statements, the Company is a Mexican corporation which has numerous consolidated subsidiaries operating in different countries. Presented below is a discussion of income tax matters that relates to the Company’s consolidated operations, its Mexican operations and significant foreign operations.
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i)  Consolidated income tax matters
The composition of income tax expense (benefit) for the years ended December 31, 2019, 20202021, 2022 and 20212023 is as follows:
 
  2019 2020 
2021
   2021 2022 
2023
 
Income Tax attributable to a continuing operation
In Mexico:
    
Current year income tax
  Ps.26,295,431  Ps.13,407,948  
Ps.
24,355,240
 
  Ps.24,355,240  Ps.29,865,043  
Ps.
32,327,958
 
Deferred income tax
   208,658   (9,334,246 
 
(5,079,397
   (5,079,397  3,454,279  
 
(6,706,412
Foreign:
       
Current year income tax
   19,830,227   12,319,690  
 
23,412,990
 
   23,397,577   17,634,494  
 
16,026,324
 
Deferred income tax
   3,579,739   (2,884,122 
 
(14,544,064
   (9,955,943  (4,909,727 
 
(7,103,867
  
 
  
 
  
 
 
 
  
 
  
 
 
Total Income tax
  Ps.49,914,055  Ps.13,509,270  
Ps.
28,144,769
 
Total income tax
  Ps.32,717,477  Ps.46,044,089  
Ps.
34,544,003
 
 
  
 
  
 
 
Income Tax attributable to a discontinued operation
       
Income tax discontinued operations in Mexico
(1)
   0     0     (26,294,422   26,294,422   —   
 
— 
 
Income tax discontinued operations Foreign
(1)
   (1,119,479  (2,856,882  (2,571,541
Income tax discontinued operations abroad
(1)
   7,144,249   1,805,500  
 
— 
 
 
(1)
Includes effects related to the sale of Tracfone.Panama and the ClaroVTR joint venture. See Note 2Ac.
Deferred tax benefit (expense) related tot
o items recognizedr
ecognized in OCI during the year:
 
  
For the years ended December 31,
   
For the years ended December 31,
 
  2019   2020   
2021
   2021   2022   
2023
 
Remeasurement of defined benefit plans
  Ps.9,217,320   Ps.4,151,600   
Ps.
(4,760,089
  Ps.(4,760,089  Ps.2,651,922   
Ps.
(975,061
Equity investments at fair value
   (378,606   (665,814  
 
583,892
 
   583,892    8,364,109   
 
2,836,366
 
Other
   0      (35,670  
 
0  
 
   —     (30,336  
 
— 
 
Revaluation assets
   —      (29,922,597  
 
0  
 
  
 
   
 
   
 
 
 
   
 
   
 
 
Deferred tax benefit recognized in OCI
  Ps.8,838,714   Ps.(26,472,481  
Ps.
(4,176,197
  Ps.(4,176,197   Ps10,985,695   
Ps.
1,861,305
 
  
 
   
 
   
 
 
 
   
 
   
 
 
In addition, deferred tax of Ps. 308,551 and Ps. 902,508 was transferred in 2023 and 2022, respectively, from revaluation surplus to retained earnings. This relates to the difference between the actual depreciation and equivalent depreciation based on cost.
 
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A reconciliation of the statutory income tax rate in Mexico to the consolidated effective income tax rate recognized by the Company is as follows:
 

  
Year ended December 31,
   
Year ended December 31,
 
  2019 2020 
2021
   2021 2022 
2023
 
Statutory income tax rate in Mexico
   30.0  30.0 
 
30.0
   30.0  30.0 
 
30.0
Impact of non-deductible and non-taxable items:
           
Tax inflation effects
   3.8  8.6 
 
7.9
   7.8  7.2 
 
2.1
Derivatives
   (0.1%)   (1.0%)  
 
(0.9
%) 
   (0.9%)   (0.2)%  
 
0.3
Employee benefits
   2.0  4.2 
 
2.6
   2.6  2.0 
 
1.5
Other
   2.0  (3.4%)  
 
(2.9
%) 
   (2.9%)   2.2 
 
4.8
  
 
  
 
  
 
   
 
  
 
  
 
 
Effective tax rate on Mexican operations
   37.7  38.4 
 
36.7
%
   36.6  41.2 
 
38.7
Tax recoveries in Brazil
   —     (13.2%)  
 
(10.8
%) 
Dividends received from associates Equity
   (0.5%)   (1.3%)  
 
(0.7
%)
Foreign subsidiaries and other non-deductible items, net
   8.0  4.5 
 
2.2
Tax recoveries and NOL’s in Brazil
   (10.6%)   (2.2)%  
 
(3.5
)% 
Dividends received from associates equity
   (0.7)%  (0.1)%  
 
— 
 
Foreign
subsidiarie
s and other non-deductible items, net
   8.7
%
(1)
 
  (2.6)%  
 
(2.2
)% 
Tax rates differences
   (2.8)%   (2.0)%  
 
(3.1
)% 
  
 
  
 
  
 
   
 
  
 
  
 
 
Effective tax rate from continuing operations

   45.2  28.4 
 
27.4
   31.2  34.3 
 
29.9
  
 
  
 
  
 
 
Effective tax rate from discontinued operations

   10.2  14.4 
 
19.2
   (16.4)%   (21.2)%  
 
— 
 
  
 
  
 
  
 
 
An analysis
(1)
Includes discontinued operations effects of TracFone and Claro Chile
The breakdown of temporary differences giving rise to the net deferred tax
assets
is as follows:
 
  
Consolidated statements
of financial position
 
Consolidated statements of net income
  
Consolidated statements
of financial position
 
Consolidated statements of net income
 
2020 
2021
 2019 2020 
2021
  2022 
2023
 2021 2022 
2023
 
Provisions
  
Ps.

19,312,081  
Ps.

18,038,607
 
 Ps.318,843  Ps.3,887,471  
Ps.
2,324,227
 
 Ps.18,813,454  
Ps.
29,562,781
 
 Ps.1,812,523  Ps.1,759,784  
Ps.
15,065,996
 
Deferred revenues
   6,748,101  
 
9,041,137
 
  (1,077,259  897,762  
 
2,202,413
 
  8,153,287  
 
8,691,188
 
  2,202,413   (688,767 
 
1,767
 
Tax losses carry forward
   25,121,933  
 
33,954,926
 
  (9,873  2,236,244  
 
10,352,978
 
  33,314,653  
 
36,970,123
 
  5,571,115   1,202,546  
 
8,575,209
 
Property, plant and equipment
(1)
   (39,459,549 
 
(33,445,815
  (1,067,307)  3,990,750  
 
9,246,429
 
  (18,840,025 
 
(8,699,418
  8,016,244   1,696,734  
 
2,157,776
 
Inventories
   (537,404 
 
135,658
 
  (55,380  (2,394,485 
 
814,626
 
  405,489  
 
1,054,611
 
  852,888   253,932  
 
669,382
 
Licenses and rights of
use
(1)
   (5,177,924 
 
(3,668,389
  432,403   344,729  
 
(151,013
  (2,630,583 
 
(2,621,672
  480,502   229,244  
 
141,060
 
Employee benefits
   45,467,827  
 
40,246,031
 
  (1,019,042  422,473  
 
(354,803
  36,662,123  
 
34,663,794
 
  (354,802  (6,148,504 
 
(3,224,333
Other
   14,828,012  
 
13,520,684
 
  (1,310,782  2,833,424  
 
(4,811,396
  22,537,353  
 
16,993,113
 
  (3,545,542  3,150,479  
 
(9,576,577
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
 
Net deferred tax assets
  
Ps.

66,303,077  
Ps.

77,822,839
 
      
  
 
  
 
       
Deferred tax expense in net profit for the year
 
 Ps.(3,788,397) Ps.12,218,368  
Ps.

19,623,461
 
Deferred tax discontinued operations
 
  (105,986)  73,646 
 
143,482
 
Deferred tax benefit in net profit for the year
Deferred tax benefit in net profit for the year
 
 Ps.15,035,341  Ps.1,455,448  
Ps.
13,810,280
 
Deferred tax from discontinued operations
Deferred tax from discontinued operations
 
  4,731,603   1,808,298  
 
— 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
(1)
As of December 31, 20202022 and 2021,2023, the balance included the effects of hyperinflation and revaluation of telecommunications towers.
 
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Reconciliation of deferred tax assets and liabilities, net:
 
  2019 2020 
2021
   2022 
2023
 
Opening balance as of January 1,
  Ps.86,613,327  Ps.88,074,856  
Ps.
66,303,077
 
  Ps.77,822,839  
Ps.
98,415,751
 
Deferred tax benefit
   (3,894,383  12,292,014  
 
19,623,461
 
   1,455,448  
 
13,810,280
 
Translation effect
   2,047,915   375,105  
 
(727,099
   (1,644,500 
 
3,202,557
 
Deferred tax benefit recognized in OCI
   8,838,714   (26,472,481 
 
(4,176,197
   10,985,695  
 
1,861,305
 
Deferred taxes acquired in business combinations
   (276,568  (2,580,552 
 
0  
    (11,571 
 
(529,191
Hyperinflationary effect in Argentina
   (5,254,149  (5,385,865 
 
(3,540,962
   (942,751 
 
(146,182
Disposals see to 2Ac
   —     —    
 
(1,203,203
Disposals (Note 2Ac)
   (3,856,459 
 
— 
 
Spin-off
   14,607,050  
 
— 
 
Related discontinued operation
   —     —    
 
1,543,762
 
   —   
 
— 
 
  
 
  
 
  
 
 
 
  
 
 
Closing balance as of December 31,
  Ps. 88,074,856  Ps. 66,303,077  
Ps.
 77,822,839
 
  Ps.98,415,751  
Ps.
116,614,520
 
  
 
  
 
  
 
 
 
  
 
 
Presented in the consolidated statements of financial position as follows:
       
Deferred income tax assets
  Ps.106,167,897  Ps.115,370,240  
Ps.
127,287,934
 
  Ps.128,717,811  
Ps.
137,883,622
 
Deferred income tax liabilities
   (18,093,041  (49,067,163 
 
(49,465,095
   (30,302,060 
 
(21,269,102
  
 
  
 
  
 
 
 
  
 
 
  Ps.88,074,856  Ps.66,303,077  
Ps.
77,822,839
 
Ps.98,415,751  
Ps.
116,614,520
 
  
 
  
 
  
 
 
 
  
 
 
The deferred tax assets are in tax jurisdictions in which the Company considers that based on financial projections of its cash flows, results of operations and synergies between subsidiaries, will generate sufficient taxable income in subsequent periods to utilize or realize such assets.
The Company does not recognize a deferred tax liability related to the undistributed earnings of its subsidiaries, because it currently does not expect these earnings to be taxable or to be repatriated in the near future. The Company’s policy has been to distribute the profits when it has paid the corresponding taxes in its home jurisdiction and the tax can be accredited in Mexico. The temporary differences associated with investments in the Group’s subsidiaries, associates and joint venture, for which a deferred tax liability has not been recognized in the periods presented, aggregate to Ps 187,830,823 and Ps. 167,222,681 as of December 31, 2022 and 2023, respectively.
At December 31, 20202022 and 2021,2023, the balance of the contributed capital account (“CUCA”) is Ps. 573,362,949654,631,901 and Ps. 612,351,412680,304,268 respectively. Effectively, on January 1, 2014, the
Cuenta de Utilidad Fiscal Neta
(“CUFIN”) is computed on an América Móvil’s stand-alone basis. The balance of the América Móvil’s stand-alone basis CUFIN amounted to Ps. 332,273,039533,076,863 and Ps. 431,249,107568,085,361 as of December 31, 20202022 and 2021,2023, respectively.
During 2021, America Móvil sold 100% of its participation in Tracfone Wireless, Inc (Tracfone), virtual operator of the most important mobile prepaid services in USA to Verizon Communications Inc. (“Verizon”), tax profit of this transaction was Ps. 93,968,555.

ii) Significant foreign income tax matters
a)
Results of operations
The foreign subsidiaries determine their taxes on profits based on their individual taxable income, in accordance with the specific tax regimes of each country.
The effective income tax rate for the Company’s foreign jurisdictions was 38%19.3% in 2019, 15%2021, 17.4% in 20202022 and 14.2%13.9% in 2021.2023. The statutory tax rates in these jurisdictions vary, although many approximate 10% to 34%35%. The primary difference between the statutory rates and the effective rates in 2019, 20202021, 2022 and 20212023 was attributable to
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dividends received from KPN, other non-deductible items, non-taxable income and tax recoveries in Brazil and registry of benefits related to tax losses credits in Brazil and Chile and Impairment related to subsidiaries in Europe.Brazil.
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a.1
) In 2021, The Brazilian Federal Supreme Court’s (STF) ruled in favor of a third party’ thesis related to the unconstitutionality of incidence of the IRPJ (Income Tax in Brazil) and CSLL (Social Contribution ovrover Net Profit in Brazil) on the amounts corresponding to the SELIC (Special settlement and custody system) rate received for repetition of the tax that should not be applicable, such thesis being similar to the thesis filed by subsidiaries of the Company in Brazil.
Given the more likely than not position of success of this lawsuit as consequence of the decision, with general repercussion, of the STF, Brazil updated its analysis, support documentation and forecast and recorded Ps. 2,647,919 (R$703,761) of which Ps. 2,076,594 (R$551,915) represent an excess on deferred IRPJ and CSLL and Ps. 571,325 (R$151,846) represent an excess on current IRPJ and CSLL. The subsidiaries are waiting for the necessary procedural steps to continue, to start the compensation of such amounts.
a.
2a.2)
) In 2020,
 ,
Claro BrasilS.A. began to use the tax benefit related to the ICMS Grant on TV based on Complementary Law 160/2017 and art. 30 of Law 12,973, as well as in recent interpretations on the subject, investment grants are not computed in determining actual profit in the amount of Ps. 1,721,453 (R$411,336). The Company kicked back the application of the benefit for the years 2018 and 2019, with a total impact of Ps. 2,748,084 (R$656,646)411,436). In 2021 the tax benefit was Ps. 1,431,164Ps.1,431,164 (R$380,373). In 2022 the tax benefit was Ps. Ps.1,163,081 (R$297,880) and 2023 Ps. 399,679 (R$114,539).
a.3)
With the change of government, Argentina initiates a process of tax revenues adjustment trying to achieve tax balance. In the medium term, a stage is expected where the entire tax system is restated to achieve a reduction in taxes that attracts investments and generates employment opportunities.
Among the measures adopted macroeconomically, are the following:
The Central Bank has made access to the free exchange market for goods and services imports more flexible, eliminating bureaucratic and administrative obstacles which obstructed access to foreign currency. This is the reason for the establishment of differentiated payment terms, according to the nature of the imported goods and services.
The implementation of a new tax amnesty is under analysis, which will include both business subjects and individuals, and a regularization for the payment of tax, customs, and social security debts accrued as of December 31, 2023, releasing interest and penalties.
iii)  Tax losses
a) At December 31, 2021,2023, the available tax loss carryforwards recorded in deferred tax assets are as follows on a country by country basis:
 
Country
  
Gross balance
of available tax loss
carryforwards at
December 31, 2021
   
Tax-effected
loss carryforward
benefit
   
Gross balance
of available tax loss
carryforwards at
December 31, 2023
   
Tax-effected
loss carryforward
benefit
 
Brazil
   
Ps.71,910,653
 
   
Ps.24,449,622
 
  
Ps.
74,392,065
 
  
Ps.
25,293,302
 
Mexico
  
 
14,768,325
 
  
 
4,430,497
 
  
 
25,515,213
 
  
 
7,654,564
 
Europe
  
 
2,031,465
 
  
 
507,866
 
United States
  
 
432,301
 
  
 
112,398
 
Peru
  
 
356,133
 
  
 
105,060
 
Chile
  
 
16,109,194
 
  
 
4,349,483
 
Argentina
  
 
10,750,889
 
  
 
3,762,811
 
Others
  
 
864,821
 
  
 
259,446
 
  
 
   
 
 
 
   
 
 
Total
   
Ps.105,608,071
 
   
Ps.33,954,926
 
  
Ps.
111,522,988
 
  
Ps.
36,970,123
 
  
 
   
 
 
 
   
 
 
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b)
The tax loss carryforwards in the different countries in which the Company operates have the following terms and characteristics:
bi)
The Company has accumulated Ps. 71,910,65374,392,065 in net operating loss carryforwards (NOL’s) in Brazil as of December 31, 2021.2023. In Brazil, there is no expiration of the NOL’s. The NOL´s amount used against taxable income in each year may not exceed 30% of the taxable income for such year.
The Company believes that it is more likely than not that the accumulated balances of its net deferred tax assets are recoverable, based on the positive evidence of the Company to generate future taxable income related to the same taxation authority which will result in taxable amounts against which the available tax losses can be utilized before they expire.
bii)
The Company has accumulated Ps. 14,768,32525,515,213 in tax losses in Mexico. The company estimates that there is positive evidence that allows it to use these losses, these losses should be reduced to the extent that it is considered likely that there will not be sufficient taxable profits to allow them to recover in full or in part, the losses will only be compensated when there is a right legally required and are approved by the tax authorities in Mexico.
biii)
The Company has accumulated Ps. 2,031,46510,750,889 in NOL’s in EuropeArgentina as of December 31, 2021.2023. In Europe,Argentina, the NOL´s have noa 5-year expiration, but itstheir annual usageuse is limited to 75%100% of the taxable income offor the year. The
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realization of deferred tax assets is dependent upon the expected generation of future taxable income during the periods in which these temporary differences become deductible.
biv) The Company has accumulated Ps. 16,109,194 in NOL’s in Chile as of December 31, 2021. In Chile, the NOL´s have no expiration. The Company company estimates that there is positive evidence that allowspermits it to useutilize these losses, thesethey should be reduced to the extent that it is considered likelyprobable that there will not be sufficient taxable profitsincome to allow them to recoverbe recovered in fullwhole or in part, the losses will only be compensated when there is a right legally required and are approved by the tax authorities in Chile.part.
iv)  Optional regime
The Mexican Tax Law establishes an optional regime for group companies called: Optional Regime for Groups of Companies. For these purposes, the integrating (controlling) company must own more than 80% of the shares with voting rights of the integrated (controlled) companies. In general terms, the Integration regime allowed deferral, for each of the companies that make up the group, and for up to three years, or sooner if certain assumptions are made, the whole of the income tax that results from considering the determination of the individual income tax to its charge is the effect derived from recognizing, indirectly, the tax losses incurred by the companies in the group for the year in question
.
question.
On December 19, 2019, the integrating company submitted to the Mexican tax authorities, the notice to end to belong under the Optional Regime for Groups of Companies, which implied a payment made in January 2020 related to the deferred income tax for the years 2016-2018. From the year 2020, the group is taxable under the General Regime for Legal Persons.
v) Limiting interest deductions
The Mexican Tax Law establishes since 2020 new rules related to the limit on interest deductions, in concordance with the action 4 of Base Erosion and Profit Shifting (BEPS)BEPS project issued by the Organization for Economic Co-operation and Development (OECD),OECD, from which Mexico is member.
In general terms, each Mexican companies should calculate an adjusted Tax EBITDA, whose amount times the corporate income tax, will be the interest limit allowed to be deducted in each tax year. It is important to mention that the amount that was not deductible could be carryforward in the following ten years.
vi) Revaluation of telecommunications towers
Deferred taxes related to the revaluation of the passive infrastructure of the telecommunications towers have been calculated at the tax rate of the jurisdiction in which the subsidiaries are located.
 
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Note 14.  Debt
a)
The Company’s short- and long-term debt consists of the following:
 
At December 31, 2020
 
(Thousands of
Mexican pesos)
 
As of December 31, 2022
As of December 31, 2022
   
(Thousands of
Mexican pesos)
 
Currency
 
Loan
 
Interest rate
   
Maturity
 
Total
   
Loan
 
Interest rate
   
Maturity
   
Total
 
Senior Notes
                    
U.S. dollars         
 Fixed-rate Senior notes (i)  3.125%    2022  Ps.31,917,920 Fixed-rate Senior notes (i)  3.625%    2029   Ps.19,414,300 
 Fixed-rate Senior notes (i)  3.625%    2029   19,948,700 Fixed-rate Senior notes (i)  2.875%    2030    19,414,300 
 Fixed-rate Senior notes (i)  2.875%    2030   19,948,700 Fixed-rate Senior notes (i)  4.700%    2032    14,560,725 
 Fixed-rate Senior notes (i)  6.375%    2035   19,576,258 Fixed-rate Senior notes (i)  6.375%    2035    19,051,835 
 Fixed-rate Senior notes (i)  6.125%    2037   7,365,559 Fixed-rate Senior notes (i)  6.125%    2037    7,168,245 
 Fixed-rate Senior notes (i)  6.125%    2040   39,897,400 Fixed-rate Senior notes (i)  6.125%    2040    38,741,430 
 Fixed-rate Senior notes (i)  4.375%    2042   22,941,005 Fixed-rate Senior notes (i)  4.375%    2042    22,326,445 
 Fixed-rate Senior notes (i)  4.375%    2049   24,935,875 Fixed-rate Senior notes (i)  4.375%    2049    24,267,875 
        
 
    
 
 
 
Subtotal U.S. dollars
      
Ps.
186,531,417
 
Subtotal U.S. dollars
   
Ps.
164,945,155
 
        
 
    
 
 
Mexican pesos
         
 Fixed-rate Senior notes (i)  6.450%    2022  Ps.22,500,000 Domestic Senior notes (i)  TIIE + 0.050%    2024   Ps.1,920,231 
 Fixed-rate Senior notes (i)  7.125%    2024   11,000,000 Fixed-rate Senior notes (i)  7.125%    2024    11,000,000 
 Domestic Senior notes (i)  0.000%    2025   4,911,181 Domestic Senior notes (i)  0.000%    2025    5,683,928 
 Fixed-rate Senior notes (i)  8.460%    2036   7,871,700 Domestic Senior notes (i)  TIIE + 0.300%    2025    335,731 
 Domestic Senior notes (i)  8.360%    2037   5,000,000 Domestic Senior notes (i)  9.520%    2032    14,679,166 
        
 
 Fixed-rate Senior notes (i)  8.460%    2036    7,871,700 
 
Subtotal Mexican pesos
      
Ps.
51,282,881
 
Domestic Senior notes (i)  8.360%    2037    4,964,352 
        
 
 Domestic Senior notes (i) 4.840%    2037    7,099,289 
   
 
 
Subtotal Mexican pesos
   
Ps.
53,554,397
 
   
 
 
Euros
         
 Fixed-rate Senior notes (i)  3.000%    2021  Ps.24,369,332 Commercial Paper (ii)  2.010% - 2.270%    2023   Ps.2,597,875 
 Fixed-rate Senior notes (i)  3.125%    2021   18,276,999 Fixed-rate Senior notes (i)  3.500%    2023    6,234,902 
 Fixed-rate Senior notes (i)  4.000%    2022   18,276,999 Fixed-rate Senior notes (i)  3.259%    2023    15,587,256 
 Fixed-rate Senior notes (i)  4.750%    2022   18,276,999 Exchangeable Bond (i)  0.000%    2024    43,581,968 
 Fixed-rate Senior notes (i)  3.500%    2023   7,310,800 Fixed-rate Senior notes (i)  1.500%    2024    17,665,557 
 Fixed-rate Senior notes (i)  3.259%    2023   18,276,999 Fixed-rate Senior notes (i)  1.500%    2026    15,587,256 
 Fixed-rate Senior notes (i)  1.500%    2024   20,713,932 Fixed-rate Senior notes (i)  0.750%    2027    15,708,525 
 Fixed-rate Senior notes (i)  1.500%    2026   18,276,999 Fixed-rate Senior notes (i) 2.125%    2028    12,395,194 
 Fixed-rate Senior notes (i)  0.750%    2027   24,369,332    
 
 
 Fixed-rate Senior notes (i)  2.125%    2028   15,840,066 
Subtotal euros
   
Ps.
129,358,533
 
 Commercial Paper (iv)  (0.230%) - (0.310%)    2021   40,940,477    
 
 
        
 
 
 
Subtotal Euros
      
Ps.
224,928,934
 
        
 
 
Pound sterling
         
Pound Sterling
 Fixed-rate Senior notes (i)  5.000%    2026  Ps.13,634,936 Fixed-rate Senior notes (i)  5.000%    2026   Ps.11,729,149 
 Fixed-rate Senior notes (i)  5.750%    2030   17,725,417 Fixed-rate Senior notes (i)  5.750%    2030    15,247,894 
 Fixed-rate Senior notes (i)  4.948%    2033   8,180,962 Fixed-rate Senior notes (i)  4.948%    2033    7,037,490 
 
Fixed-rate Senior notes (i)
  4.375%    2041   20,452,405 Fixed-rate Senior notes (i)  4.375%    2041    17,593,724 
        
 
    
 
 
 
Subtotal Pound sterling
      
Ps.
59,993,720
 
Subtotal Pound Sterling
   
Ps.
51,608,257
 
        
 
    
 
 
Brazilian reais
         
 
Debentures (i)
  104.000% of CDI    2021  Ps.4,222,597 
 
Debentures (i)
  104.250% of CDI    2021   5,815,668 Debentures (i)  CDI +
1.350
%
    2023   Ps.9,302,135 
 
Promissory notes (i)
  CDI + 0.600%    2021   1,381,941 Promissory Notes (i)  CDI +
1.000
%
    2023    2,976,683 
 
Debentures (i)
  CDI + 0.960%    2022   9,596,811 Debentures (i)  CDI +
1.400
%
    2024    15,813,630 
 
Promissory notes (i)
  106.000% of CDI    2022   7,677,449 Debentures (i) CDI +
1.370
%
    2025    5,581,281 
 
Debentures (i)
  106.500% of CDI    2022   3,838,725    
 
 
        
 
 
Subtotal Brazilian reais
   
Ps.
33,673,729
 
 
Subtotal Brazilian reais
      
Ps.
32,533,191
 
   
 
 
        
 
 
Other currencies
                    
Japanese yen
         
 
Fixed-rate Senior notes (i)
  2.950%    2039  Ps.2,511,701 
Fixed-rate Senior notes (i)
  2.950%    2039   Ps.1,924,847 
        
 
    
 
 
 
Subtotal Japanese yen
      
Ps.
2,511,701
 
Subtotal Japanese yen
   
Ps.
1,924,847
 
        
 
    
 
 
Chilean pesos
         
 
Fixed-rate Senior notes (i)
  3.961%    2035  Ps.4,078,453 
Fixed-rate Senior notes (i)
  4.000%    2035   Ps.3,964,099 
        
 
    
 
 
 
Subtotal Chilean pesos
      
Ps.
4,078,453
 
Subtotal Chilean pesos
   
Ps.
3,964,099
 
        
 
    
 
 
 
Subtotal other currencies
      
Ps.
6,590,154
 
Subtotal other currencies
   
Ps.
5,888,946
 
        
 
    
 
 
         
 
F-F-6
5
6
3

Table of Contents
At December 31, 2020
 
(Thousands of
Mexican pesos)
 
As of December 31, 2022
As of December 31, 2022
  
(Thousands of
Mexican pesos)
 
Currency
 
Loan
 
Interest rate
   
Maturity
 
Total
   
Loan
 
Interest rate
  
Maturity
  
Total
 
Hybrid Notes
         
Lines of Credit and others
           
U.S. dollars
Lines of credit (iii)
 5.050%  2023  Ps.491,750 
Euros
         
 
Euro NC10 Series B Capital
Securities (iii)
  6.375%    2073  Ps.13,403,133 
Lines of credit (iii)
 2.083% - 2.650%  2023 - 2024   17,052,458 
        
 
 
 
Subtotal Euros
      
Ps.
13,403,133
 
        
 
 
 
Subtotal Hybrid notes
      
Ps.
13,403,133
 
        
 
 
         
Lines of Credit and others
       
Mexican pesos         
 
Lines of credit (ii)
  
TIIE +
0.300
% -
TIIE +
1.000
%

 
   2021  Ps.27,100,000 
Lines
of credit (iii)
 
TIIE + 0.280% -
TIIE + 0.580%
  2023   43,580,000 
Peruvian soles         
Peruvian Soles
 
Lines of credit (ii)
  1.200% - 1.450%    2021  Ps.17,094,079 
Lines of credit (iii)
 6.00%  2023   4,142,056 
Chilean pesos         
Colombian pesos
Lines of credit (iii)
 IBR + 2.25%  2023   165,479 
Brazilian reais
Lines of credit (iii)
 13.32%  2023   6,105,177 
Others
 
Lines of credit (ii)
  

TAB +
0.350
%
 
and
TAB +
 
0.450
%
 
 
 
   2021  Ps.8,868,181 
Lines of credit (iii)
 11.00%  2023   23,543 
 
Financial Leases
  8.700% - 8.970%    2021 - 2027  
Ps. 

57,266    
 
 
        
 
 
Subtotal Lines of Credit and others
   
Ps.
 71,560,463
 
 
Subtotal Lines of Credit and others
      
Ps.
53,119,526
 
   
 
 
        
 
 
Total debt
   
 
Ps.510,589,480
 
 
Total debt
      
Ps.
628,382,956
 
   
 
 
        
 
 
Less: Short-term debt and current portion of long-term debt
   
 
Ps.102,024,414
 
 
Less: Short-term debt and current portion of long-term
debt
      
Ps.
148,083,184
 
   
 
 
        
 
 
Long-term debt
   
 
Ps.408,565,066
 
 
Long-term debt
      
Ps.
480,299,772
 
   
 
 
        
 
 
 
As of December 31, 2023
  
(Thousands of
Mexican pesos)
 
Currency
 
Loan
 
Interest rate
 
Maturity
  
Total
 
Senior Notes
           
U.S. dollars
     
 
Fixed-rate Senior notes (i)
 3.625% 2029  Ps.16,893,500 
 
Fixed-rate Senior notes (i)
 2.875% 2030   16,893,500 
 
Fixed-rate Senior notes (i)
 4.700% 2032   12,670,125 
 
Fixed-rate Senior notes (i)
 6.375% 2035   16,578,098 
 
Fixed-rate Senior notes (i)
 6.125% 2037   6,237,503 
 
Fixed-rate Senior notes (i)
 6.125% 2040   33,711,148 
 
Fixed-rate Senior notes (i)
 4.375% 2042   19,427,525 
 
Fixed-rate Senior notes (i)
 4.375% 2049   21,116,875 
     
 
 
 
 
Subtotal U.S. dollars
    
Ps.
143,528,274
 
     
 
 
 
Mexican pesos
     
 
Commercial Paper (ii)
 11.439% 2024  Ps.200,000 
 
Domestic Senior notes (i)
 TIIE + 0.020% 2024   1,356,693 
 
Domestic Senior notes (i)
 TIIE + 0.050% 2024   1,920,231 
 
Fixed-rate Senior notes (i)
 7.125% 2024   11,000,000 
 
Domestic Senior notes (i)
 0.000% 2025   5,930,385 
 
Domestic Senior notes (i)
 TIIE + 0.050% 2025   3,000,000 
 
Domestic Senior notes (i)
 TIIE + 0.300% 2025   409,419 
 
Domestic Senior notes (i)
 9.350% 2028   11,016,086 
 
Fixed-rate Senior notes (i)
 9.500% 2031   17,000,000 
 
Domestic Senior notes (i)
 9.520% 2032   14,679,166 
 
Fixed-rate Senior notes (i)
 8.460% 2036   7,871,700 
 
Domestic Senior notes (i)
 8.360% 2037   4,964,352 
 
Domestic Senior notes (i)
 4.840% 2037   10,578,733 
     
 
 
 
 
Subtotal Mexican pesos
    
Ps.
89,926,765
 
     
 
 
 
Euros
     
 
Commercial Paper (ii)
 4.110% - 4.210% 2024  Ps.9,510,854 
 
Exchangeable Bond (i)
 0.000% 2024   37,662,984 
 
Fixed-rate Senior notes (i)
 1.500% 2024   15,851,424 
 
Fixed-rate Senior notes (i)
 1.500% 2026   13,986,551 
 
Fixed-rate Senior notes (i)
 0.750% 2027   14,095,366 
 
Fixed-rate Senior notes (i)
 2.125% 2028   11,122,292 
 
Fixed-rate Senior notes (i)
 5.250% 2028   9,324,371 
     
 
 
 
 
Subtotal euros
    
Ps.
111,553,842
 
     
 
 
 
At December 31, 2021
 
(Thousands of
Mexican pesos)
 
Currency
 
Loan
 
Interest rate
 
Maturity
 
Total
 
Senior Notes
 
 
 
 
 
 
 
 
 
 
U.S. dollars
          
  
Fixed-rate Senior notes (i)
 3.625%  2029 Ps.20,583,500 
  
Fixed-rate Senior notes (i)
 2.875%  2030  20,583,500 
  
Fixed-rate Senior notes (i)
 6.375%  2035  20,199,206 
  
Fixed-rate Senior notes (i)
 6.125%  2037  7,599,943 
  
Fixed-rate Senior notes (i)
 6.125%  2040  41,167,000 
  
Fixed-rate Senior notes (i)
 4.375%  2042  23,671,025 
  
Fixed-rate Senior notes (i)
 4.375%  2049  25,729,375 
         
 
 
 
  
Subtotal U.S. dollars
      
Ps.
159,533,549
 
         
 
 
 
Mexican pesos
           
  
Fixed-rate Senior notes (i)
 6.450%  2022 Ps.22,500,000 
  
Fixed-rate Senior notes (i)
 7.125%  2024  11,000,000 
  
Domestic Senior notes (i)
 0.000%  2025  5,284,885 
  
Fixed-rate Senior notes (i)
 8.460%  2036  7,871,700 
  
Domestic Senior notes (i)
 8.360%  2037  5,000,000 
         
 
 
 
  
Subtotal Mexican pesos
      
Ps.
51,656,585
 
         
 
 
 
Euros
           
  
Fixed-rate Senior notes (i)
 4.000%  2022 Ps.17,566,473 
  
Fixed-rate Senior notes (i)
 3.500%  2023  7,026,589 
  
Fixed-rate Senior notes (i)
 3.259%  2023  17,566,474 
  
Fixed-rate Senior notes (i)
 1.500%  2024  19,908,670 
  
Exchangeable Bond (i)
 0.000%  2024  49,115,860 
  
Fixed-rate Senior notes (i)
 1.500%  2026  17,566,473 
  
Fixed-rate Senior notes (i)
 0.750%  2027  23,421,965 
  
Fixed-rate Senior notes (i)
 2.125%  2028  15,224,277 
         
 
 
 
  
Subtotal euros
      
Ps.
167,396,781
 
         
 
 
 
Pound sterling
           
  
Fixed-rate Senior notes (i)
 5.000%  2026 Ps.13,924,738 
  
Fixed-rate Senior notes (i)
 5.750%  2030  18,102,159 
  
Fixed-rate Senior notes (i)
 4.948%  2033  8,354,843 
  
Fixed-rate Senior notes (i)
 4.375%  2041  20,887,106 
         
 
 
 
  
Subtotal Pound sterling
      
Ps.
61,268,846
 
         
 
 
 
F-6

F-5
74

At December 31, 2021
 
(Thousands of
Mexican pesos)
 
As of December 31, 2023
As of December 31, 2023
   
(Thousands of
Mexican pesos)
 
Currency
 
Loan
 
Interest rate
 
Maturity
 
Total
  
Loan
 
Interest rate
 
Maturity
   
Total
 
Pound Sterling
Fixed-rate Senior notes (i)
  5.000%   2026   Ps.10,753,557 
Fixed-rate Senior notes (i)
  5.750%   2030    13,979,625 
Fixed-rate Senior notes (i)
  4.948%   2033    6,452,134 
Fixed-rate Senior notes (i)
  4.375%   2041    16,130,336 
    
 
 
Subtotal Pound Sterling
    
Ps.
47,315,652
 
    
 
 
Brazilian reais
        
Debentures (i)
  CDI + 1.400%   2024   Ps.14,830,185 
 
Debentures (i)
  CDI + 0.960%    2022  Ps.9,221,172 
Debentures (i)
  CDI + 1.100%   2024    3,489,455 
 
Promissory notes (i)
  106.000% of CDI    2022   7,376,937 
Debentures (i)
  CDI + 1.370%   2025    5,234,183 
 
Debentures (i)
  106.500% of CDI    2022   3,688,469 
Debentures (i)
  CDI + 1.350%   2026    5,234,183 
        
 
     
 
 
 
Subtotal Brazilian reais
      
Ps.
20,286,578
 
Subtotal Brazilian reais
    
Ps.
28,788,006
 
        
 
     
 
 
 
 
 
 
 
 
 
 
 
    
Other currencies
                  
Japanese yen
         
 
Fixed-rate Senior notes (i)
  2.950%    2039  Ps.2,325,617 Fixed-rate Senior notes (i)  2.950%   2039   Ps.1,557,115 
        
 
     
 
 
 
Subtotal Japanese yen
      
Ps.
2,325,617
 
Subtotal Japanese yen
    
Ps.
1,557,115
 
        
 
     
 
 
Chilean pesos
         
 
Fixed-rate Senior notes (i)
  3.961%    2035  Ps.3,776,051 
Fixed-rate Senior notes (i)
  4.000%   2035   Ps.3,541,257 
        
 
     
 
 
 
Subtotal Chilean pesos
      
Ps.
3,776,051
 
Subtotal Chilean pesos
    
Ps.
3,541,257
 
        
 
     
 
 
 
Subtotal other currencies
      
Ps.
6,101,668
 
Subtotal other currencies
    
Ps.
5,098,372
 
        
 
     
 
 
 
 
 
 
 
 
 
 
 
    
Hybrid Notes
         
Euros
         
 Euro NC10 Series B Capital Securities (iii)  6.375%    2073  Ps.12,882,081 
        
 
 
 
Subtotal Euros
      
Ps.
12,882,081
 
        
 
 
 
Subtotal Hybrid Notes
      
Ps.
12,882,081
 
        
 
 
        
Lines of Credit and others
 
 
 
 
 
 
 
 
         
U.S. dollars
        
 
Lines of credit (ii)
  0.350% - 0.700%   2022  Ps.14,723,980 
Euros
        
 
Lines of credit (ii)
  (0.400%)  -
(0.450%)
   2022  
Ps.
18,737,572 
Lines of credit (iii)
  Euribor
1
M +
1.3% & 4.320%
 
 
  2024 - 2028   Ps.10,443,291 
Mexican pesos
        
 
Lines of credit (ii)
  
TIIE + 0.280% -
TIIE + 0.400%

 
  2022  
Ps.
34,080,000 
Lines of credit (iii)
  TIIE +
0.300%
 - 
TIIE + 0.790%
 
 
  2024    52,680,000 
Peruvian soles
        
 
Lines of credit (ii)
  0.976% - 1.045%   2022  
Ps.
9,815,068 
Chilean pesos
        
 
Lines of credit (ii)
  TAB + 0.450%   2022  
Ps.
7,419,372 
 
Financial Leases
  
8.700% - 8.970%
   
2022 - 2027
  
Ps.
47,743 
Others 
Lines of credit (ii)
  15.790%   2022  
Ps.
80,279 
Peruvian Soles
       
 
 
Lines of credit (iii)
  7.830% - 8.010%   2024    11,342,850 
 
Subtotal Lines of Credit and others
     
Ps.
    84,904,014
 
    
 
 
       
 
 
Subtotal Lines of Credit and others
    
Ps.
74,466,141
 
 
Total debt
     
Ps.
    564,030,102
 
    
 
 
       
 
 
Total debt
    
Ps.
500,677,052
 
 
Less: Short-term debt and current portion of long-term debt
     
Ps.
    145,222,672
 
    
 
 
       
 
 
Less: Short-term debt and current portion of long-term debt
    
Ps.
160,963,603
 
 
Long-term debt
     
Ps.
    418,807,430
 
    
 
 
       
 
 
Long-term debt
    
Ps.
339,713,449
 
    
 
 
L = LIBOR (London Interbank Offered Rate)
TIIE = Mexican Interbank Rate
CDI = Brazil Interbank Deposit Rate
TAB = Chilean weighted average funding rate
IBR = Colombia Reference Bank Indicator
Interest rates on the Company’s debt are subject to fluctuations in international and local rates. The Company’s weighted average cost of borrowed funds as of December 31, 2020,2022, and December 31, 20212023 was approximately 3.72%5.38% and 3.78%5.94%, respectively.
Such rates do not include commissions or the reimbursements for Mexican tax withholdings (typically a tax rate of 4.9%) that the Company must pay to international lenders.
F-6
F-
585

An analysis of the Company’s short-term debt maturities as of December 31, 2020, a
n
d2022, and December 31, 2021,2023, is as follows:
 
   
2022
  
2023
 
Obligations and Senior Notes
  Ps.36,698,853  Ps.95,821,829 
Lines of credit
   65,325,561   65,141,774 
  
 
 
  
 
 
 
Subtotal short term debt
  
Ps.
102,024,414
 
 
Ps.
160,963,603
 
  
 
 
  
 
 
 
Weighted average interest rate
   8.50  7.01
  
 
 
  
 
 
 
   
2020
  
2021
 
Obligations and Senior Notes
  Ps.95,007,014  
Ps.
60,353,052
 
Lines of credit
   53,062,260  
 
84,856,270
 
Financial Leases
   13,910  
 
13,350
 
   
 
 
  
 
 
 
Subtotal short term debt
  Ps.  148,083,184  
Ps.
145,222,672
 
   
 
 
  
 
 
 
Weighted average interest rate
  
2.23
 
4.02
The Company’s long-term debt maturities are as follows:
 
Years
  
Amount
   Amount 
2023
  Ps.24,599,324 
2024
   80,031,350 
2025
   5,292,314   
Ps.
14,573,986
 
2026 and thereafter
   308,884,442 
2026
  
 
29,974,291
 
2027
  
 
14,095,366
 
2028
  
 
40,787,112
 
2029
  
 
16,893,500
 
2030 and thereafter
  
 
223,389,194
 
  
 
 
 
 
Total
  Ps.418,807,430   
Ps.
339,713,449
 
 
 
(i) Senior Notes
The outstanding Senior Notes as of December 31, 2020,2022, and December 31, 2021,2023, are as follows:
 
Currency*
  
2020
   
2021
   2022   
2023
 
U.S. dollars
  
 
Ps.186,531,417
 
  
 
Ps.159,533,549
 
  Ps.164,945,155   
Ps.
143,528,274
 
Mexican pesos
  
 
51,282,881
 
  
 
51,656,585
 
   53,554,397   
 
89,926,765
 
Euros
  
 
183,988,456
 
  
 
167,396,781
 
   129,358,533   
 
111,553,842
 
Pound sterling
  
 
59,993,720
 
  
 
61,268,846
 
   51,608,257   
 
47,315,652
 
Brazilian reais
  
 
32,533,191
 
  
 
20,286,578
 
   33,673,729   
 
28,788,006
 
Japanese yens
  
 
2,511,701
 
  
 
2,325,617
 
   1,924,847   
 
1,557,115
 
Chilean pesos
  
 
4,078,453
 
  
 
3,776,051
 
   3,964,099   
 
3,541,257
 
 
*
Thousands of Mexican pesos
*
Includes secured and unsecured senior notes.
In December 2021,July 2023, under a Mexican Global Note program, the Company redeemedissued Ps. 17,000 million, sustainable bond with a coupon of 9.50%—approximately
one billion U.S. dollars equivalent—maturing in advance 1,600January 2031. Such program was launched due to America Movil’s plan to increase Mexican pesos denominated liabilities on its consolidated statement of financial position. Global Notes are registered before SEC in U.S.A. and CNBV in Mexico.
In addition, under the Company Domestic Senior Notes program, AMX issued Ps. 15,446 million U.S. Dollars senior notes with andivided in four tranches. This Notes bear a fixed or floating interest rate established as a percentage of 3.125% and 750 million Euros senior notes withTIIE. In addition, the Company re-opened an interest rateinflation linked Domestic Senior Note of 4.75%. Both were set to mature in 2022.Ps.3,150 million.
(ii) Commercial Paper
In August 2020, we established a new Euro-Commercial Paper program for a total amount of €2,000 million. As of December 31, 2023, debt under this program aggregated to Ps. 9,511 million.
F-6
6

In December 2023, we updated our Mexican Domestic Senior Notes program mentioned above to include short-term issuances, and increased the program amount up to Ps. 100,000 million. As of December 31, 2023, short-term debt under this program aggregated to Ps. 200 million.
(iii) Lines of credit
As of December 31, 2020,2022, and December 31, 2021,2023, debt under lines of credit aggregated to Ps.
53,062 71,560 million and Ps.
84,856 74,466 million, respectively. Telekom Austria closed December 202131, 2023 with an aggregated debt of Ps.
18,818 10,443 under lines of credit.
F-
59

The Company has two revolving syndicated credit facilities, one for the Euro equivalent of U.S. $1,500 million and the other for U.S. $2,500 million maturing in 2026 and 2024, respectively. As long as the facilities are committed, a commitment fee is paid. As of December 31, 2021,2023, these credit facilities are undrawn. Telekom Austria has an undrawn revolving syndicated credit facility in Euros for €1,000 million that matures in 2026.
(iii) Hybrid Notes
We currently have a Capital Securities (hybrid notes) maturing in 2073: a series denominated in euros for a total amount of €550 million with a coupon of 6.375%. The Capital Securities are deeply subordinated, and when they were issued the principal rating agencies stated that they would treat only half of the principal amount as indebtedness for purposes of evaluating our leverage (an analysis referred to as 50.0% equity credit). Standard & Poor´s considers 100% of the total amount of this note as debt. The Capital Securities are subject to redemption at our option at varying dates beginning in 2023 for the euro-denominated series.
(iv) Commercial Paper
In August 2020, we established a new Euro-Commercial Paper program for a total amount of €2,000 million. As of December 31, 2021, there is no debt under this program.
Restrictions
A portion of the debt is subject to certain restrictions with respect to maintaining certain financial ratios, as well as restrictions on selling a significant portion of groups of assets, among others. As of December 31, 2021,2023, the Company was in compliance with all these requirements.
A portion of the debt is also subject to early maturity or repurchase at the option of the holders in the event of a change in control of the Company, as defined in each instrument. The definition of change in control varies from instrument to instrument; however, no change in control shall be considered to have occurred as long as its current shareholders continue to hold the majority of the Company’s voting shares.
Covenants
In conformity with the credit agreements, the Company is obliged to comply with certain financial and operating commitments. Such covenants limit in certain cases, the ability of the Company or the guarantor to: pledge assets, carry out certain types of mergers, sell all or substantially all of its assets, and sell control of Telcel.
Such covenants do not restrict the ability of AMX’s subsidiaries to pay dividends or other payment distributions to AMX. The more restrictive financial covenants require the Company to maintain a consolidated ratio of debt to EBITDA (defined as operating income plus depreciation and amortization) that does not exceed 4 to 1, and a consolidated ratio of EBITDA to interest paid that is not below 2.5 to 1 (in accordance with the clauses included in the credit agreements).
Several of the financing instruments of the Company may be accelerated, at the option of the debt holder in the case that a change in control occurs.
As of December 31, 2021,2023, the Company was in compliance with all the covenants.
Note 15. Right-of-use assets and lease debtliability related to right-of-use of assets
The Company has lease contracts for various items of towers & sites, property and other equipment used in its operations. Towers and sites, and property generally have lease terms between 52 and 1224 years, while property and other equipment generally havehas lease terms between 52 and 2520 years.
F-6
F-
67
0

At December 31, 2019, 20202021, 2022 and 20212023 the
right-of-use
assets and lease liabilities are as follows:
 
  
Right-of-use
assets
  
Liability related to
right-of-use
of
assets
 
  Towers & Sites  Property  Other
equipment
  Total 
As of January 1, 2019
 Ps.94,252,098  Ps.21,075,884  Ps.4,750,320  Ps.120,078,302  Ps.119,387,660 
Additions and release
  6,364,508   921,542   729,001   8,015,051   7,437,621 
Business Combinations
  9,668,507   —     —     9,668,507   10,810,111 
Modifications
  7,474,469   1,288,974   728,837   9,492,280   8,363,045 
Depreciation
  (17,286,497  (4,941,222  (1,365,847  (23,593,566  —   
Interest expense
  —     —     —     —     7,940,240 
Payments
  —     —     —     —     (26,765,075
Translation adjustment
  (4,370,636  (905,808  (380,907  (5,657,351  (6,576,869
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Balance at December 31, 2019
 Ps.96,102,449  Ps.17,439,370  Ps.4,461,404  Ps.118,003,223  Ps.120,596,733 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
  Right-of-use assets  Liability related to
right-of-use of
assets
 
  Towers & Sites  Property  Other
equipment
  Total 
As of January 1, 2021
 Ps.85,218,875  Ps.12,205,435  Ps.4,552,534  Ps.101,976,844  Ps.109,327,241 
Additions and release
(1)
  3,145,941   482,456   1,052,022   4,680,419   3,060,042 
Modifications
  10,945,985   1,024,573   998,161   12,968,719   12,535,394 
Depreciation
(1)
  (19,849,598  (3,086,201  (2,589,506  (25,525,305  — 
Interest expense
  —   —   —   —   7,129,251 
Payments
  —   —   —   —   (30,544,750
Translation adjustment
  (2,904,175  (689,558  (134,551  (3,728,284  (2,852,953
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Balance at December 31, 2021
 Ps.76,557,028  Ps.9,936,705  Ps.3,878,660  Ps.90,372,393  Ps.98,654,225 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
 
  
Right-of-use
assets
  
Liability related to
right-of-use
of
assets
 
  Towers & Sites  Property  Other
equipment
  Total 
Balance at the beginning of the year
 Ps.96,102,449  Ps.17,439,370  Ps.4,461,404  Ps.118,003,223  Ps.120,596,733 
Additions and release
  5,745,869   309,576   1,514,519   7,569,964   4,833,959 
Modifications
  8,559,335
  (3,035,831  1,048,858   6,572,362   7,769,326 
Depreciation
  (22,064,413  (3,440,428  (2,866,244  (28,371,085  —   
Interest expense
  —     —     —     —     9,134,288 
Payments
  —     —     —     —     (29,623,565
Translation adjustment
  (3,124,365  932,748   393,997   (1,797,620  (3,383,500
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Balance at December 31, 2020
 Ps.85,218,875  Ps.12,205,435  Ps.4,552,534  Ps.101,976,844  Ps.109,327,241 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
(1)
Discontinued operations
 
  Right-of-use assets  Liability related to
right-of-use of
assets
 
  Towers & Sites  Property  Other
equipment
  Total 
As of January 1, 2022
 Ps.76,557,028  Ps.9,936,705  Ps.3,878,660  Ps.90,372,393  Ps.98,654,225 
Additions and release
(1)
  42,958,221   574,801   5,463,706   48,996,728   44,134,101 
Business combinations
  4,247,042   318   5,413   4,252,773   9,129,255 
Modifications
  11,859,492   3,584,607   1,790,905   17,235,004   19,038,741 
Depreciation
  (22,858,868  (3,369,095  (2,756,898  (28,984,861  — 
Interest expense
  —   —   —   —   8,903,397 
Payments
  —   —   —   —   (33,823,287
Disposals
(2)
  (696,904  (88,303  (36,694  (821,901  (1,044,480
Transfers
(3)
  (165,779  (126,763  (112,301  (404,843  (438,571
Translation adjustment
  (5,680,583  (1,289,832  (1,800,782  (8,771,197  (10,404,570
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Balance at December 31, 2022
 Ps.106,219,649  Ps.9,222,438  Ps.6,432,009  Ps.121,874,096  Ps.134,148,811 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
  
Right-of-use
assets
  
Liability related to
right-of-use
of
assets
 
  Towers & Sites  Property  Other
equipment
  Total 
Balance at the beginning of the year
 
Ps.
85,218,875
 
 
Ps.
12,205,435
 
 
Ps.
4,552,534
 
 
Ps.
101,976,844
 
 
Ps.
109,327,241
 
Additions and release
 
 
3,145,941
 
 
 
482,456
 
 
 
1,052,022
 
 
 
4,680,419
 
 
 
3,060,042
 
Modifications
 
 
10,945,985
 
 
 
1,024,573
 
 
 
998,161
 
 
 
12,968,719
 
 
 
12,535,394
 
Depreciation
 
 
(20,699,207
 
 
(3,221,499
 
 
(2,630,526
 
 
(26,551,232
 
 
—  
 
Interest expense
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
7,301,216
 
Payments
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(30,544,750
Translation adjustment
 
 
(2,054,566
 
 
(554,260
 
 
(93,531
 
 
(2,702,357
 
 
(3,024,918
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Balance at December 31, 2021
 
Ps.
76,557,028
 
 
Ps.
9,936,705
 
 
Ps.
3,878,660
 
 
Ps.
90,372,393
 
 
Ps.
98,654,225
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
(1)
The increase as compared to the previous year, was due to rights of use and their corresponding liability with Sitios Latam, resulting from the spin-off occurred in August 2022.
(2)
Disposals includes the Panama disposal. See Note 2Ac.
(3)
Transfers includes the ClaroVTR joint venture. See Note 12b.
  Right-of-use assets  Liability related to
right-of-use of
assets
 
  Towers & Sites  Property  Other
equipment
  Total 
As of January 1, 2023
 
 
Ps.106,219,649
 
 
 
Ps.9,222,438
 
 
 
Ps.6,432,009
 
 
 
Ps.121,874,096
 
 
 
Ps.134,148,811
 
Additions and release
 
 
14,744,304
 
 
 
464,791
 
 
 
146,515
 
 
 
15,355,610
 
 
 
12,244,019
 
Modifications
 
 
25,773,865
 
 
 
1,430,795
 
 
 
(3,397,274
 
 
23,807,386
 
 
 
39,109,007
 
Depreciation
 
 
(26,763,563
 
 
(3,122,468
 
 
(1,953,019
 
 
(31,839,050
 
 
— 
 
Interest expense
 
 
— 
  
 
— 
  
 
— 
  
 
— 
  
 
10,648,584
 
Payments
 
 
— 
  
 
— 
  
 
— 
  
 
— 
  
 
(39,498,197
Translation adjustment
 
 
(13,391,742
 
 
(1,358,124
 
 
(879,856
 
 
(15,629,722
 
 
(31,483,068
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Balance at December 31, 2023
 
 
Ps.106,582,513
 
 
 
Ps.6,637,432
 
 
 
Ps.348,375
 
 
 
Ps.113,568,320
 
 
 
Ps.125,169,156
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
F-6
8

At December 31, 20202022 and 2021,2023, the total of the right-of-use assets include an amount of Ps.
18,499,851 64,582,841 and Ps. 14,785,012,59,820,924 corresponding to related parties, respectively and the total of lease liabilities include an amount of Ps.
20,016,478 65,686,036 and Ps.
16,212,629 61,881,679 corresponding to related parties, respectively. As of December 31, 2022 and 2023, net non-cash acquisitions of leases amounted to Ps. 4,862,627 and Ps. 3,111,591.
The implementation of IFRS 16 required a significant effort due to the fact of the need to make certain estimates, such as the lease term, based on the non-cancelable period and the periods covered by options to extend the lease. The Company considered the extension of the lease terms beyond the non-cancelable period only when it was reasonably certain to extend it. The reasonability of the extension was affected by several factors, such as regulation, business model, and geographical business strategies.
F-
61

The lease debt of the Company is integrated according to its maturities as follows:
 
2021
Short term
Ps.
27,632,357
Long term
71,021,868
Total
Ps.
98,654,225
   2022   
2023
 
Short term
   Ps.32,902,237   
Ps.
24,375,010
 
Long term
   101,246,574   
 
100,794,146
 
  
 
 
   
 
 
 
Total
   Ps.134,148,811   
Ps.
125,169,156
 
  
 
 
   
 
 
 
The Company’s long-term debtright of use liability maturities as of December 31, 20212023 are as follows:
 
Year ended December 31,
        
2023
  
Ps.
13,370,533
 
2024
  
 
22,664,124
 
2025
  
 
10,342,707
 
  
Ps.
7,511,403
 
2026 and thereafter
  
 
24,644,504
 
2026
  
 
12,110,866
 
2027
  
 
20,149,439
 
2028
  
 
14,118,209
 
2029
  
 
14,496,822
 
2030 and thereafter
  
 
32,407,407
 
  
 
 
 
 
Total
  
Ps.
71,021,868
 
  
Ps.
100,794,146
 
  
 
 
 
 
During the years ended December 31, 2019, 20202021, 2022 and 2021,2023, the Company recognized expenses as follows:
 
  2019   2021 
  Others   Related parties   Total   Others   Related parties   Total 
Depreciation expense of right-of-use assets
  Ps.18,176,521   Ps.5,417,045   Ps.23,593,566 
Interest expense on lease liabilities
   5,654,721    2,285,519    7,940,240 
Depreciation expense of right-of-use assets
(1)
  Ps.19,932,317   Ps.5,592,988   Ps.25,525,305 
Interest expense on lease liabilities
(1)
   6,212,774    916,477    7,129,251 
Expense relating to short-term leases
   1,978,403    1,958    1,980,361    29,833    —    29,833 
Expense relating to leases of low-value assets
   25,935    —      25,935    685    —    685 
Variable lease payments
   1,299,502    —      1,299,502    68,236    —    68,236 
  
 
   
 
   
 
 
 
   
 
   
 
 
Total
  Ps.27,135,082   Ps.7,704,522   Ps.34,839,604   Ps.26,243,845   Ps.6,509,465   Ps.32,753,310 
  
 
   
 
   
 
 
 
   
 
   
 
 
 
(1)
Discontinued operations
   2020 
   Others   Related parties   Total 
Depreciation expense of right-of-use assets
  Ps.22,404,924   Ps.5,966,161   Ps.28,371,085 
Interest expense on lease liabilities
   7,081,693    2,052,595    9,134,288 
Expense relating to short-term leases
   32,238    —      32,238 
Expense relating to leases of low-value assets
   2,883    —      2,883 
Variable lease payments
   78,494    —      78,494 
   
 
 
   
 
 
   
 
 
 
Total
  Ps.29,600,232   Ps.8,018,756   Ps.37,618,988 
   
 
 
   
 
 
   
 
 
 
   2022 
   Others   Related parties   Total 
Depreciation expense of right-of-use assets
  Ps.18,095,871   Ps.10,888,990   Ps.28,984,861 
Interest expense on lease liabilities
   6,395,988    2,507,409    8,903,397 
Expense relating to short-term leases
   24,234    —    24,234 
Expense relating to leases of low-value assets
   886    —    886 
Variable lease payments
   65,520    —    65,520 
  
 
 
   
 
 
   
 
 
 
Total
  Ps.24,582,499   Ps.13,396,399   Ps.37,978,898 
  
 
 
   
 
 
   
 
 
 
 
F-6
9
   
2021
 
   Others   Related parties   Total 
Depreciation expense of right-of-use assets
  
Ps.
 
19,932,316
 
  
Ps.
 
6,618,916
 
  
Ps.
 
26,551,232
 
Interest expense on lease liabilities
  
 
6,212,774
 
  
 
1,088,442
 
  
 
7,301,216
 
Expense relating to short-term leases
  
 
29,833
 
  
 
—  
 
  
 
29,833
 
Expense relating to leases of low-value assets
  
 
685
 
  
 
—  
 
  
 
685
 
Variable lease payments
  
 
68,236
 
  
 
—  
 
  
 
68,236
 
   
 
 
   
 
 
   
 
 
 
Total
  
Ps.
26,243,844
 
  
Ps.
7,707,358
 
  
Ps.
33,951,202
 
   
 
 
   
 
 
   
 
 
 

F-
62

Impact on accounting for changes in lease payments applying the exemption.
Based on the information available for evaluation as of the date of adoption, the effect of applying this amendment to IFRS 16 in the Company’s consolidated financial statements as of December 31, 2021 was Ps.
   
2023
 
   
Others
   
Related parties
   
Total
 
Depreciation expense of right-of-use assets
  
Ps.
15,530,686
 
  
Ps.
16,308,364
 
  
Ps.
31,839,050
 
Interest expense on lease liabilities
  
 
5,316,141
 
  
 
5,332,443
 
  
 
10,648,584
 
Expense relating to short-term leases
  
 
23,295
 
  
 
— 
   
 
23,295
 
Expense relating to leases of low-value assets
  
 
1,749
 
  
 
— 
   
 
1,749
 
Variable lease payments
  
 
67,927
 
  
 
— 
   
 
67,927
 
  
 
 
   
 
 
   
 
 
 
Total
  
Ps.
20,939,798
 
  
Ps.
21,640,807
 
  
Ps.
42,580,605
 
  
 
 
   
 
 
   
 
 
 
59,104, reflecting an adjustment to accrued liability for leases and recognizing a benefit in the income statement for the period.
Note 16. Accounts payable, accrued liabilities and asset retirement obligations
a)
The components of the captions accountaccounts payable and accrued liabilities are as follows:
 
   
At December 31,
 
   2020   
2021
 
   
At December 31,
 
   2022   
2023
 
Suppliers
  Ps.69,238,025   
Ps.
63,235,934
 
Sundry creditors
   95,270,108   
 
88,637,103
 
Interest payable
   6,671,247   
 
6,616,584
 
Guarantee deposits from customers
   833,424   
 
1,455,109
 
Dividends payable
   2,459,965   
 
2,152,686
 
  
 
 
   
 
 
 
Total
  Ps.174,472,769   
Ps.
162,097,416
 
  
 
 
   
 
 
 
Suppliers
  Ps.74,285,881   
Ps.
 
87,942,106
 
Sundry creditors
   101,406,307   
 
107,111,390
 
Interest payable
   7,661,762   
 
6,827,225
 
Guarantee deposits from customers
   1,386,645   
 
1,577,424
 
Dividends payable
   2,254,877   
 
3,029,536
 
   
 
 
   
 
 
 
Total
  Ps.186,995,472   
Ps.
206,487,681
 
   
 
 
   
 
 
 
b)
The balance of accrued liabilities at December 31, 20202022 and 20212023 are as follows:
 
   
At December 31,
 
   2020   
2021
 
Current liabilities
          
Direct employee benefits payable
  Ps.18,965,160   
Ps.
20,052,946
 
Contingencies
   31,326,691   
 
34,338,518
 
   
 
 
   
 
 
 
Total
  Ps.50,291,851   
Ps.
54,391,464
 
   
 
 
   
 
 
 
F-
63
   
At December 31,
 
   2022   
2023
 
Current liabilities
    
Direct employee benefits payable
  Ps.20,964,474   
Ps.
20,858,965
 
Provisions
   35,850,857   
 
34,355,359
 
  
 
 
   
 
 
 
Total
  Ps.56,815,331   
Ps.
55,214,324
 
  
 
 
   
 
 
 

The movements in contingencies for the years ended December 31, 20202022 and 20212023 are as follows:
 
   
Balance at
December 31,
2019
   
Business
combination
   
Effect of
translation
  
Increase of
the year
   
Applications
  
Balance at
December 31,
2020
 
   
Payments
  
Reversals
 
Contingencies
  Ps.34,379,969   Ps.292   Ps.(4,290,753 Ps.7,442,292   Ps.(3,214,407 Ps.(2,990,702 Ps.31,326,691 
   
 
 
   
 
 
   
 
 
  
 
 
   
 
 
  
 
 
  
 
 
 
       
   
Balance at
December 31,
2020
   
Business
combination
   
Effect of
translation
  
Increase of
the year
   
Applications
  
Balance at
December 31,
2021
 
   
Payments
  
Reversals
 
Contingencies
  
Ps.
31,326,691
 
  
Ps.
        0  
 
  
Ps.
1,556,950
 
 
Ps.
7,425,182
 
  
Ps.
(4,079,190
 
Ps.
(1,891,115
 
Ps.
34,338,518
 
   
 
 
   
 
 
   
 
 
  
 
 
   
 
 
  
 
 
  
 
 
 
   Balance at
December 31,
2021
   Effect of
translation
   Increase of
the year
   Applications   Balance at
December 31,
2022
 
   Payments   Reversals 
Contingencies
  Ps.34,338,518   Ps.1,430,535   Ps.5,236,368    Ps.(3,864,013)    Ps.(1,290,551)   Ps.35,850,857 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Contingencies
   
Balance at
December 31,
2022
   
Effect of
translation
  
Increase of
the year
   
Applications
   
Balance at
December 31,
2023
 
   
Payments
   
Reversals
 
Contingencies
  
Ps.
35,850,857
 
  
Ps.
(1,738,359
 
Ps.
7,361,456
 
  
 
Ps.(5,642,088)
 
  
 
Ps.(1,476,507)
 
  
Ps.
34,355,359
 
  
 
 
   
 
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Provisions and contingencies include tax, labor, regulatory and other legal type contingencies. See Note 17 b) for detail of contingencies.
F-
70

c)
The movements in the asset retirement obligations for the years ended December 31, 20202022 and 20212023 are as follows:
 
  Balance at
December 31,
2019
  Business
combination
  Effect of
translation
  Increase of
the year
  Applications  Balance at
December 31,
2020
 
  Payments  Reversals 
Asset retirement obligations
 Ps.15,816,744  Ps.        0    Ps.374,418  Ps.2,412,908  Ps.(593,644 Ps.(122,435 Ps.17,887,991 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
  Balance at
December 31,
2021
  Business
combination
  Spin-off
effect
(2)
  Effect of
translation
  Increase of
the year
  Applications  Balance at
December 31,
2022
 
  Payments  Reversals 
(1)
 
Asset retirement obligations
 Ps.16,752,223  Ps.156,578   Ps.(4,257,531)   Ps.(1,138,217)   Ps.350,802   Ps.(201,523)   Ps.(862,335)   Ps.10,799,997 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
 
  
Balance at
December 31,
2020
  
Business
combination
  
Effect of
translation
  
Increase of
the year
  
Applications
  
Balance at
December 31,
2021
 
  
Payments
  
Reversals
 
Asset retirement obligations
 
Ps.
17,887,991
 
 
Ps.
        0  
 
 
Ps.
(910,181
 
Ps.
1,273,201
 
 
Ps.
(148,634
 
Ps.
(1,350,154
 
Ps.
16,752,223
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
(1)
Reversals includes the sale of Claro Panama and Claro Chile disposal. See Note 12b.
(2)
See Note 12d.
   
Balance at
December 31,
2022
   
Effect of
translation
  
Increase of
the year
   
Applications
  
Balance at
December 31,
2023
 
   
Payments
  
Reversals
 
Asset retirement obligations
  
Ps.
10,799,997
 
  
Ps.
(1,722,035
 
Ps.
1,425,391
 
  
Ps.
(175,163
 
Ps.
(210,262
 
Ps.
10,117,928
 
  
 
 
   
 
 
  
 
 
   
 
 
  
 
 
  
 
 
 
The discount rates used for the asset retirement obligation are based on market rates that are expected to be undertaken by the dismantling or restoration of cell sites and may include labor costs.
Note 17. Commitments and Contingencies
a) Commitments
The Company and its subsidiaries have commitments that mature on different dates, related to committed capital expenditures.
As of December 31, 2021,2023, the total amounts equivalent to the contract period are detailed below:
 
Year ended December 31,
        
2022
  
Ps.
7,770,936
 
2023
  
 
3,469,647
 
2024
  
 
2,808,660
 
  
 
Ps.1,144,381
 
2025 and thereafter
  
 
19,960,884
 
2025
  
 
10,139,691
 
2026
  
 
4,174,446
 
2027
  
 
5,379,609
 
2028 and 2029
  
 
16,306,828
 
2030 and thereafter
  
 
27,706,549
 
  
 
 
 
 
Total
  
Ps.
34,010,127
 
  
 
Ps.64,851,504
 
  
 
 
 
 
b) Provisions and Contingencies
Contingencies
In each of the countries in which we operate, we are party to legal proceedings in the ordinary course of business. These proceedings include tax, labor, antitrust, contractual matters and administrative and judicial proceedings concerning regulatory matters regarding interconnection and tariffs. The following is a description of our material legal proceedings.
F-
64

(1) Telcel Mobile Termination Rates
The mobile termination rates between Telcel and other network operators have been the subject of various legal proceedings. With respect to interconnection fees for 2017, 2018, 2019, 2020 and 2021,the years 2018—2024, Telcel has challenged the applicable resolutions and final resolutions are pending.
 
With respect to 2022, Telcel will challenge the applicable resolutions.F-
71

Given that the “zero rate” that prevented Telcel from charging termination rates in its mobile network was held unconstitutional by the Supreme Court (Suprema Corte de Justicia de la Nación or “SCJN”), the IFT has determined asymmetric interconnection rates for the termination of traffic in Telcel’s and other operators’ networks for 2018, 2019, 2020, 2021, 2022, 2023 and 2022.2024. The resolutions setting such rates have been challenged by Telcel, and final resolutions are pending.
The Company expects that mobile termination rates, as well as other rates applicable to mobile interconnection (such as transit), will continue to be the subject of litigation and administrative proceedings. The Company cannot predict when or how these disputes will be resolved or the financial effects of any such resolution.resolutions.
(
2
)
(2) Telcel Class Action LawsuitsLawsuit
One of the threeA class action lawsuits that have beenlawsuit was filed against Telcel by customers allegedly affected by Telcel’s quality of service and wireless and broadband rates continues in process, the remaining two lawsuits have been concluded without any adverse effect on the Company.process. At this stage, the Company cannot assess whether this class action lawsuit could have an adverse effect on the Company’s business and results of operations in the event that it is resolved against Telcel, due to uncertainty about the factual and legal claims underlying this proceeding. Consequently, the Company has not established a provision in the accompanying consolidated financial statements for an eventual loss arising from this proceeding.
(
3
)(3) IFT Proceedings Against Telmex
In 2018, the IFT imposed a fine of Ps.
2,543,937 on Telmex relating to a sanction procedure triggered by the alleged breach in 2013 and 2014 of certain minimum quality goals for
dedicated
link services.
Telmex challenged this fine,obtained a favorable resolution in the first instance and a final resolutionthe appeal filed by the IFT is pending
.
resolution.
(
4
)(4) Brazilian Tax Matters
As of December 31, 2021,2023, certain Company’s Brazilian subsidiaries had aggregate tax contingencies of Ps.
131,140,527Ps.123,637,128 (R$ 35,554,192)35,431,641) for which the Company has established provisions of Ps.
17,915,605 20,725,637 (R$ 4,857,193)5,939,505) in the accompanying consolidated financial statements for eventual losses arising from contingencies that the Company considers probable.
The most significant contingenciesmatters for which provisions have been established are:
 
Ps.
46,016,079 39,637,229 (R$ 12,475,659)11,359,145) aggregate contingencies and Ps.
3,297,735 5,314,821 (R$ 894,066)1,523,109) provisions related to value-added tax
(Imposto (Imposto sobre a Circulação de Mercadorias e Prestação de Serviços or “ICMS”
) assessments;
 
Ps. 18,360,4895,962,223 (R$ 4,977,808)1,708,640) aggregate contingencies and Ps. 3,228,6563,502,153 (R$ 875,338)1,003,639) provisions related to social contribution on net income (Contribuição Social sobre o Lucro quido or “CSLL”) and corporate income tax (Imposto de Renda sobre Pessoa JurĺJurídica or “IRPJ”) assessments;

Ps.
16,245,325 17,376,221 (R$ 4,404,355)4,979,637) aggregate contingencies and Ps.
5,116,747 5,749,593 (R$ 1,387,228) 
1,647,705) provisions related to the social integration program (Programa de Integração Social or “PIS”) and the contribution for social security financing (Contribuição para o Financiamento da Seguridade Social or “COFINS”) assessments;
 
Ps. 11,684,7855,965,336 (R$ 3,167,923)1,709,532) aggregate contingencies and Ps.135,398 (R$38,802) provisions related to offset’s rejections of tax credits related to Income Tax (Imposto de Renda Pessoa Jurídica o “IRPJ”) and Social Contributions over Profits (Contribuição Social sobre o Lucro Líquido o “CSLL”), arising from non-appealable judicial resolutions, mainly;
Ps. 1,396,37613,754,400 (R$ 378,579)3,941,704) aggregate contingencies and Ps.1,443,933 (R$413,799) provisions mainly related to an allegedly improper exclusion of interconnection revenues and costs from the basis used to
calculate Fund for Universal Telecommunication Services (Fundo de Universalização dos Serviços de Telecomunicações or “FUST”) obligations, which are being contested;
F-
65
F-7
2

calculate Fund for Universal Telecommunication Services (Fundo de Universalização dos Serviços de Telecomunicações or “FUST”) obligations, which are being contested; 
Ps.
4,778,186 6,230,607 (R$ 1,295,439)1,785,553) aggregate contingencies and Ps.
387 450 (R$ 105) 
129) provisions related to an alleged underpayment of obligations to the Telecommunications Technology Development Fund (Fundo para o Desenvolvimento Tecnológico das Telecomunicações or “FUNTTEL”), which are being challenged and for which a final resolution is pending;
 
Ps.
1,847,959 2,139,175 (R$ 501,010)613,040) aggregate contingencies and Ps.
48,964 45,304 (R$ 13,275)
12,983) provisions related to the alleged nonpayment of Services Tax (Imposto Sobre Serviços or “ISS”) over several communication services, including Pay TV services, considered taxable for ISS by the Municipal Revenue Services, which are being challenged and for which a final resolution is pending;
 
Ps.
4,143,670 4,757,143 (R$ 1,123,412)1,363,291) aggregate contingencies and Ps.
120,856 134,229 (R$ 32,766)
38,467) provisions arising from, among other,
,
things the alleged underpayment of IRRF and CIDE taxes and on remittances made to foreign operators as remuneration for completing international calls abroad (outgoing traffic); and
Ps.
4,213,972 4,431,497 (R$ 1,142,472)1,269,968) aggregate contingencies and Ps.
3,762,522 4,106,726 (R$ 1,020,077) 
1,176,896) provisions related to the requirement to contribute to the Promotion of Public Radio Broadcasting (“EBC”).
In addition, the Company’s Brazilian subsidiaries are subject to a number of contingencies for which it has not established provisions in the accompanying consolidated financial statements because the Company does not consider the potential losses related to these contingencies to be probable. These include Ps.
18,118,080
21,754,988 (R$
4,912,087)
6,234,494) related to
an unpaid installation inspection
rate
(Taxa (Taxa de Fiscalização de Instalação or “TFI”) allegedly due
to
the renovation of radio base stations, which is being challenged on the basis that there was no new equipment installation that could have led to this charge,
, along with any unpaid functioning inspection rate (Taxa de Fiscalização de Funcionamento or “TFF”).
(
5
)(5) Anatel Challenge to Inflation Adjustments
Anatel has challenged the calculation of inflation-related adjustments due under the concession agreements with Tess S.A. (“Tess”), and Algar Telecom Leste S.A. (“ATL”), two of the Company’s subsidiaries that were previously merged into Claro Brasil.S.A. Anatel rejected Tess and ATL’s calculation of the inflation-related adjustments applicable to 60%
of the concessions price (which was due in three equal annual installments, subject to inflation-related adjustments and interest), claiming that the companies’ calculation of the inflation related adjustments resulted in a shortfall of the installment payments. The companies filed declaratory and consignment actions seeking the resolution of the disputes and have obtained injunctions from the Federal Court of Appeal.Appeal suspending any payment until the pending appeals are resolved. After certain unfavorable resolutions issued by the Federal Court of Appeals to the appeals filed by such companies, new appeals have been filed before the Superior Court of Appeals for which definitive resolutions are pending.
The amount of the alleged shortfall as well as the method used to calculate monetary corrections are in dispute. If other methods or assumptions are applied, the amount may increase. In 2021,2022, Anatel calculated the monetary correction in a total amount of Ps.
24,620,529 14,579,000 (R$ 6,675,000)4,178,000). As of December 31, 2021,2023, the Company has established a provision of Ps.
4,577,389 5,203,092 (R$ 1,241,000)1,491,090) in the accompanying consolidated financial statements for the losses arising from these contingencies, which the Company considers probable.
 
F-7
F-
66
3

18
.Note 18. Employee Benefits
An analysis of the net liability and net period cost for employee benefits i
s
is as follows:
 
  
At December 31,
   
At December 31,
 
  2020   
2021
   2022   
2023
 
Mexico
  Ps.129,260,355   
Ps.
110,225,654
 
  Ps.112,031,055   
Ps.
119,265,063
 
Puerto Rico
   14,924,874   
 
12,502,377
 
   8,859,265   
 
7,227,422
 
Brazil
   8,913,548   
 
6,108,744
 
   6,303,584   
 
7,401,235
 
Europe
   14,392,445   
 
13,127,228
 
   9,971,256   
 
8,919,884
 
Ecuador
   488,161   
 
601,239
 
   519,239   
 
479,762
 
El Salvador
   154,422   
 
177,922
 
   135,299   
 
113,508
 
Nicaragua
   61,337   
 
75,084
 
   62,327   
 
53,974
 
Honduras
   35,060   
 
32,217
 
   41,292   
 
55,295
 
  
 
   
 
 
 
   
 
 
Total
  Ps.168,230,202   
Ps.
142,850,465
 
  Ps.137,923,317   
Ps.
143,516,143
 
  
 
   
 
 
 
   
 
 
 
  
For the year ended December 31
   
For the year ended December 31,
 
  2019   2020   
2021
   2021   2022   
2023
 
Mexico
  Ps.12,788,464   Ps.14,911,208   
Ps.
15,507,652
 
  Ps.15,507,652   Ps.13,673,155   
Ps.
14,601,940
 
Puerto Rico
   747,755    664,046   
 
548,550
 
   548,550    538,681   
 
170,389
 
Brazil
   511,964    722,412   
 
724,587
 
   724,587    587,552   
 
369,624
 
Europe
   2,526,957    1,701,424   
 
1,753,872
 
   1,753,872    1,176,028   
 
1,750,101
 
Ecuador
   34,425    67,402   
 
111,353
 
   111,353    (29,743  
 
40,498
 
El Salvador
   0      15,751   
 
19,081
 
   19,081    14,384   
 
15,190
 
Nicaragua
   0      3,711   
 
18,561
 
   18,561    11,502   
 
10,937
 
Honduras
   0      0     
 
4,718
 
   4,718    7,593   
 
13,257
 
  
 
   
 
   
 
 
 
   
 
   
 
 
Total
  Ps.16,609,565   Ps.18,085,954   
Ps.
18,688,374
 
  Ps.18,688,374   Ps.15,979,152   
Ps.
16,971,936
 
  
 
   
 
   
 
 
 
   
 
   
 
 
a) Defined Benefit Plans
The defined benefit obligation (DBO) and plan assets for the pension and other benefit obligation plans, by country, are as follows:
 
 
At December 31
  
At December 31
 
 
2020
 
2021
  2022 
2023
 
 DBO Plan Assets Effect of
asset ceiling
 Net employee
benefit liability
 
DBO
 
Plan Assets
 
Effect of
asset ceiling
 
Net employee
benefit
liability
  DBO Plan Assets Effect of
asset ceiling
 Net employee
benefit liability
 
DBO
 
Plan Assets
 
Effect of
asset ceiling
 
Net employee
benefit
liability
 
Mexico
 Ps.278,434,302  Ps.(150,090,481 Ps.—    Ps.128,343,821  
Ps.
286,396,483
 
 
Ps.
(177,270,561
 
Ps.
—  
 
 
Ps.
109,125,922
 
 Ps.285,775,547 Ps.(174,814,669 Ps.—  Ps.110,960,878 
Ps.
293,551,400
 
 
 
Ps.(175,265,188
 
Ps.
— 
 
 
Ps.
118,286,212
 
Puerto Rico
  40,240,193   (25,315,319  —     14,924,874  
 
38,092,662
 
 
 
(25,590,285
 
 
—  
 
 
 
12,502,377
 
 26,747,454 (17,888,189 —  8,859,265 
 
22,244,771
 
 
 
(15,017,349
 
 
— 
 
 
 
7,227,422
 
Brazil
  18,568,932   (16,143,783  3,393,640   5,818,789  
 
15,497,227
 
 
 
(15,466,336
 
 
4,422,459
 
 
 
4,453,350
 
 14,599,954 (15,823,761 6,064,069 4,840,262 
 
15,045,247
 
 
 
(13,810,050
 
 
4,055,040
 
 
 
5,290,237
 
Europe
  5,490,873   —     —     5,490,873  
 
5,093,036
 
 
 
—  
 
 
 
—  
 
 
 
5,093,036
 
 3,464,777 —  —  3,464,777 
 
3,384,633
 
 
 
— 
 
 
 
— 
 
 
 
3,384,633
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Total
 Ps.342,734,300  Ps.(191,549,583 Ps.3,393,640  Ps.154,578,357  
Ps.
345,079,408
 
 
Ps.
(218,327,182
 
Ps.
4,422,459
 
 
Ps.
131,174,685
 
 Ps.330,587,732 Ps.(208,526,619 Ps.6,064,069 Ps.128,125,182 
Ps.
334,226,051
 
 
 
Ps.(204,092,587
 
Ps.
4,055,040
 
 
Ps.
134,188,504
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
F-7
F-
674

Below is a summary of the actuarial results generated for the pension and retirement plans as well as the medical services in Puerto Rico and Brazil; the pension plans and seniority premiums related to Telmex; the pension plan, the service awards plan and severance in Austria corresponding to the years ended December 31, 2019, 20202021, 2022 and 2021:2023:

 
  At December 31, 2019 
  DBO Plan Assets Effectofasset
ceiling
 Net employee
benefit liability
   At December 31, 2021 
  DBO Plan Assets Effect of asset
ceiling
 Net employee
benefit liability
 
Balance at the beginning of the year
 
Ps.
306,702,447  
Ps.
(203,671,122
)
 
 
Ps.
5,087,543  
Ps.
108,118,868   Ps.343,003,240  Ps.(191,549,583 Ps.3,393,640  Ps.154,847,297 
Current service cost
  2,591,975       2,591,975    2,090,896    2,090,896 
Interest cost on projected benefit obligation
  31,001,348       31,001,348    28,913,257    28,913,257 
Expected return on plan assets
    (20,070,037    (20,070,037    (15,112,669   (15,112,669
Changes in the asset ceiling during the period and others
      445,743   445,743     215,544   215,544 
Past service costs and others
    144,481     144,481 
Past service costs and other
    139,910    139,910 
Actuarial gain for changes in experience
  (22,599      (22,599   (23,024   (23,024
Actuarial gain from changes in demographic assumptions
  (129      (129   (48   (48
Actuarial loss from changes in financial assumptions
  36,163       36,163 
Actuarial gain from changes in financial assumptions
   (6,907   (6,907
 
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
Net period cost
 
Ps.
33,606,758  
Ps.
(19,925,556
)
 
 
Ps.
445,743  
Ps.
14,126,945   Ps.30,974,174  Ps.(14,972,759 Ps.215,544  Ps.16,216,959 
Actuarial loss for changes in experience
  31,606,323       31,606,323    10,728,950    10,728,950 
Actuarial gain from changes in demographic assumptions
  (339,657      (339,657   (104,568   (104,568
Actuarial loss from changes in financial assumptions
  7,207,072       7,207,072 
Actuarial gain from changes in financial assumptions
   (4,099,321   (4,099,321
Changes in the asset ceiling during the period and others
    

  (712,064  (712,064    969,433   969,433 
Return on plan assets greater than discount rate (shortfall)
    423,514     423,514    (22,198,615   (22,198,615
 
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
Recognized in other comprehensive income
 
Ps.
38,473,738  
Ps.
423,514  
Ps.
(712,064
)

 
Ps.
38,185,188   Ps.6,525,061  Ps.(22,198,615 Ps.969,433  Ps.(14,704,121
Contributions made by plan participants
  155,188   (155,188    —   
Contributions to the pension plan made by the Company
    (1,337,610    (1,337,610    311,108    311,108 
Benefits paid
  (15,836,928  15,836,928     —      (10,574,420  10,348,544    (225,876
Payments to employees
  (16,996,920      (16,996,920   (25,042,314   (25,042,314
Effect of translation
  (3,534,509  2,528,213   (393,201  (1,399,497   330,770   (166,676  (156,158  7,936 
 
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
Others
 
Ps.
(36,213,169
)
 
Ps.
16,872,343  
Ps.
(393,201
)
 
 
Ps.
(19,734,027
)
  Ps.(35,186,763 Ps.10,393,775  Ps.(156,158 Ps.(24,949,146
Balance at the end of the year
  342,569,774   (206,300,821  4,428,021   140,696,974    345,315,712   (218,327,182  4,422,459   131,410,989 
Less short-term portion
  (213,065      (213,065   (236,304   (236,304
 
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
Non-current obligation
 
Ps.
342,356,709  
Ps.
(206,300,821
)
 
 
Ps.
4,428,021  
Ps.
140,483,909   Ps.345,079,408  Ps.(218,327,182 Ps.4,422,459  Ps.131,174,685 
 
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
 
F-7
F-
685

  At December 31, 2020  At December 31, 2022 
  DBO Plan Assets Effect of asset
ceiling
 Net employee
benefit liability
  DBO Plan Assets Effect of asset
ceiling
 Net employee
benefit liability
 
Balance at the beginning of the year
  Ps.342,569,774  Ps.(206,300,821 Ps.4,428,021  Ps.140,696,974  Ps.345,315,712  Ps.(218,327,182 Ps.4,422,459  Ps.131,410,989 
Current service cost
   2,810,584       2,810,584   1,534,180   —    —    1,534,180 
Interest cost on projected benefit obligation
   30,482,173       30,482,173   30,565,134   —    —    30,565,134 
Expected return on plan assets
     (17,655,119    (17,655,119  —    (18,819,322  —    (18,819,322
Changes in the asset ceiling during the period and others
       278,639   278,639   —    —    398,399   398,399 
Past service costs and other
     148,253     148,253   —   142,911   —   142,911 
Actuarial gain for changes in experience
   (8,945      (8,945  (43,603  —    —    (43,603
Actuarial gain from changes in demographic assumptions
   (270      (270  (64  —    —    (64
Actuarial loss from changes in financial assumptions
   20,219       20,219 
Actuarial gain from changes in financial assumptions
  (88,990  —    —    (88,990
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
Net period cost
  Ps.33,303,761  Ps.(17,506,866 Ps.278,639  Ps.16,075,534  Ps.31,966,657  Ps.(18,676,411 Ps.398,399  Ps.13,688,645 
Actuarial gain for changes in experience
   (9,677      (9,677
Actuarial gain from changes in demographic assumptions
   (103,987      (103,987
Actuarial loss from changes in financial assumptions
   3,475,345       3,475,345 
Actuarial loss for changes in experience
  2,747,706   —    —    2,747,706 
Actuarial loss from changes in demographic assumptions
  55,037   —    —    55,037 
Actuarial gain from changes in financial assumptions
  (9,838,708  —    —    (9,838,708
Changes in the asset ceiling during the period and others
       (542,430  (542,430  —    —    1,283,501   1,283,501 
Return on plan assets greater than discount rate (shortfall)
     12,320,777     12,320,777   —    13,719,181   —    13,719,181 
Others

   (924,084      (924,084
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
Recognized in other comprehensive income
  Ps.2,437,597  Ps.12,320,777  Ps.(542,430 Ps.14,215,944  Ps.(7,035,965 Ps.13,719,181  Ps.1,283,501  Ps.7,966,717 
Contributions made by plan participants
   137,947   (137,947    —   
Contributions to the pension plan made by the Company
     (1,882,654    (1,882,654  —    516,280   —    516,280 
Benefits paid
   (19,740,727  19,740,727     —     (13,502,781  13,221,202   —    (281,579
Payments to employees
   (14,426,720      (14,426,720  (23,753,735  —    —    (23,753,735
Plan changes
  12,461   —    —    12,461 
Effect of translation
   (1,278,392  2,217,201   (770,590  168,219   (2,218,050  1,098,953   (40,290  (1,159,387
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
Others
  Ps.(35,307,892)  Ps.19,937,327  Ps.(770,590)  Ps.(16,141,155)  Ps.(39,383,463 Ps.14,757,793  Ps.(40,290 Ps.(24,665,960
Balance at the end of the year
   343,003,240   (191,549,583  3,393,640   154,847,297   330,862,941   (208,526,619  6,064,069   128,400,391 
Less short-term portion
   (268,940      (268,940  (275,209  —     (275,209
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
Non-current
obligation
  Ps.342,734,300  Ps.(191,549,583)  Ps.3,393,640  Ps.154,578,357  Ps.330,587,732  Ps.(208,526,619 Ps.6,064,069  Ps.128,125,182 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
 
F-7
F-
696

 
At December 31, 2021
  
At December 31, 2023
 
 
DBO
 
Plan Assets
 
Effect of asset
ceiling
 
Net employee
benefit liability
  
DBO
 
Plan Assets
 
Effect of asset
ceiling
 
Net employee
benefit liability
 
Balance at the beginning of the year
 
Ps.
 
343,003,240
 
 
Ps.
 
(191,549,583)
 
 
Ps.
 
3,393,640
 
 
Ps.
 
154,847,297
 
 
Ps.
330,862,941
 
 
Ps.
(208,526,619
 
Ps.
6,064,069
 
 
Ps.
128,400,391
 
Current service cost
 
 
2,090,896
 
     
 
2,090,896
 
 
 
2,044,102
 
 
 
— 
 
 
 
— 
 
 
 
2,044,102
 
Interest cost on projected benefit obligation
 
 
28,913,257
 
     
 
28,913,257
 
 
 
33,203,706
 
 
 
— 
 
 
 
— 
 
 
 
33,203,706
 
Expected return on plan assets
 
 
(15,112,669
     
 
(15,112,669
 
 
— 
 
 
 
(20,251,931
 
 
— 
 
 
 
(20,251,931
Changes in the asset ceiling during the period and others
     
 
215,544
 
 
 
215,544
 
 
 
— 
 
 
 
— 
 
 
 
585,667
 
 
 
585,667
 
Past service costs and other
   
 
139,910
 
   
 
139,910
 
 
 
(322,700
 
 
145,646
 
 
 
— 
  
 
(177,054
Actuarial gain for changes in experience
 
 
(23,024
     
 
(23,024
 
 
(20,645
 
 
— 
 
 
 
— 
 
 
 
(20,645
Actuarial gain from changes in demographic assumptions
 
 
(48
     
 
(48
Actuarial
gain
from changes in financial assumptions
 
 
(6,907
     
 
(6,907
Actuarial loss from changes in demographic assumptions
 
 
134
 
 
 
— 
 
 
 
— 
 
 
 
134
 
Actuarial loss from changes in financial assumptions
 
 
30,958
 
 
 
— 
 
 
 
— 
 
 
 
30,958
 
 
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
Net period cost
 
Ps.
30,974,174
 
 
Ps.
(14,972,759)
 
 
Ps.
215,544
 
 
Ps.
16,216,959
 
 
Ps.
34,935,555
 
 
Ps.
(20,106,285
 
Ps.
585,667
 
 
Ps.
15,414,937
 
Actuarial
loss
for changes in experience
 
 
10,728,950
 
     
 
10,728,950
 
 
 
10,632,144
 
 
 
— 
 
 
 
— 
 
 
 
10,632,144
 
Actuarial gain from changes in demographic assumptions
 
 
(104,568
     
 
(104,568
 
 
(430,315
 
 
— 
 
 
 
— 
 
 
 
(430,315
Actuarial
gain
from changes in financial assumptions
 
 
(4,099,321
     
 
(4,099,321
Actuarial loss from changes in financial assumptions
 
 
1,900,436
 
 
 
— 
 
 
 
— 
 
 
 
1,900,436
 
Changes in the asset ceiling during the period and others
     
 
969,433
 
 
 
969,433
 
 
 
— 
 
 
 
— 
 
 
 
(2,247,990
 
 
(2,247,990
Return on plan assets greater than discount rate (shortfall)
   
 
(22,198,615
   
 
(22,198,615
 
 
— 
 
 
 
(6,210,593
 
 
— 
 
 
 
(6,210,593
 
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
Recognized in other comprehensive income
 
Ps.
6,525,061
 
 
Ps.
(22,198,615
 
Ps.
969,433
 
 
Ps.
(14,704,121
 
Ps.
12,102,265
 
 
Ps.
(6,210,593
 
Ps.
(2,247,990
 
Ps.
3,643,682
 
Contributions made by plan participants
 
 
99,201
 
 
 
(99,201
   
 
—  
  
 
45,404
 
 
 
(45,404
 
 
— 
 
 
 
— 
 
Contributions to the pension plan made by the Company
   
 
311,108
 
   
 
311,108
 
 
 
— 
 
 
 
(10,853
 
 
— 
 
 
 
(10,853
Benefits paid
 
 
(10,574,420
 
 
10,348,544
 
   
 
(225,876
 
 
(27,844,968
 
 
27,547,809
 
 
 
— 
 
 
 
(297,159
Payments to employees
 
 
(25,042,314
     
 
(25,042,314
 
 
(10,868,600
 
 
— 
 
 
 
— 
 
 
 
(10,868,600
Plan changes
 
 
(29,383
 
 
— 
 
  
 
(29,383
Effect of translation
 
 
330,770
 
 
 
(166,676
 
 
(156,158
 
 
7,936
 
 
 
(4,745,061
 
 
3,259,358
 
 
 
(346,706
 
 
(1,832,409
 
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
Others
 
Ps.
 
(35,186,763)
 
 
Ps.
10,393,775
 
 
Ps.
(156,158)
 
 
Ps.
(24,949,146)
 
 
Ps.
(43,442,608
 
Ps.
30,750,910
 
 
Ps.
(346,706
 
Ps.
(13,038,404
Balance at the end of the year
 
 
345,315,712
 
 
 
(218,327,182
 
 
4,422,459
 
 
 
131,410,989
 
 
 
334,458,153
 
 
 
(204,092,587
 
 
4,055,040
 
 
 
134,420,606
 
Less short-term portion
 
 
(236,304
     
 
(236,304
 
 
(232,102
 
 
— 
 
 
 
— 
 
 
 
(232,102
 
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
Non-current obligation
 
Ps.
345,079,408
 
 
Ps.
(218,327,182)
 
 
Ps.
4,422,459
 
 
Ps.
131,174,685
 
 
Ps.
334,226,051
 
 
Ps.
(204,092,587
 
Ps.
4,055,040
 
 
Ps.
134,188,504
 
 
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 
In the case of other subsidiaries in Mexico, the net period cost of other employee benefits for the years ended December 31, 2019, 20202021, 2022 and 20212023 was Ps. 49,050,267,728, Ps. 174,994126,735 and Ps.267,728,Ps.120,843, respectively. The balance of other employee benefits at December 31, 20202022 and 20212023 was Ps. 916,5341,070,177 and Ps. 1,099,732,978,851 respectively.
In the case of Brazil, the net period cost of other benefits for the years ended December 31, 2019, 20202021, 2022 and 20212023 was Ps. 99,498,225,984, Ps. 268,562166,503 and Ps. 225,984,82,870, respectively. The balance of employee benefits at December 31, 20202022 and 20212023 was Ps. 2,111,8011,428,547 and Ps.1,380,764,Ps. 1,790,094, respectively.
In the case of Ecuador, the net period cost of other benefits for the years ended December 31, 2019, 20202021, 2022 and 20212023 was Ps. 34,425,111,353, Ps. 67,402(29,743) and Ps. 111,353,40,498, respectively. The balance of employee benefits at December 31, 20202022 and 20212023 was Ps. 488,161519,239 and Ps. 601,239,479,762, respectively.
 
F-7
F-
707

In the case of Central America, the net period cost of other benefits for the years ended December 
31,
,
2020
2022 and
2021
2023 was Ps.
19,462
33,479 and Ps.
42,360
, 39,384, respectively. The balance of employee benefits at December 
31,
,
2020
2022 and
2021
2023 was Ps.
250,819
238,918 and Ps.
285,223
, 222,777, respectively.
Plan assets are invested in:
At December 31
 
  2020 
2021
   2022 
2023
 
  Puerto Rico Brazil Mexico 
Puerto Rico
 
Brazil
 
Mexico
   Puerto Rico Brazil Mexico 
Puerto Rico
 
Brazil
 
Mexico
 
Equity instruments
   43  —     68 
 
42
 
 
—  
 
 
 
74
   40  —    74 
 
42
 
 
— 
 
 
 
76
Debt instruments
   22  95  32 
 
21
 
 
94
 
 
26
   24  92  26 
 
23
 
 
91
 
 
24
Others
   35  5  —    
 
37
 
 
6
 
 
—  
 
   36  8  —   
 
35
 
 
9
 
 
— 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
   100  100  100 
 
100
 
 
100
 
 
100
 100  100  100 
 
100
 
 
100
 
 
100
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
Included in the Telmex’s net pension plan liability are plan assets of Ps. 150,090,481174,814,669 and Ps.
177,270,561 175,265,188 as of December 31, 20202022 and 2021,2023, respectively, of which 36.9%44.2% and 47.5%49.3% during 20202022 and 2021,2023, respectively, were invested in equity and debt instruments of both América Movil and also of related parties, primarily entities that are under common control of the Company’s principal shareholder. The Telmex pension plan recorded a re-measurement of its defined pension plan of Ps. 11,753,41611,590,623 and Ps
. (
9,928,728)Ps. 3,396,589 during 20
20
2022 and 202
1
,2023, respectively, attributable to a change in actuarial assumptions, and also a decline and an increase and a decrease in the fair value of plan investments from December 31, 20202022 to December 31, 2021.2023. The decreaseincrease and increasedecrease in fair value of the aforementioned related party pension plan investments approximated Ps. 14,820,2209,806,143 and Ps. (20,234,095)(6,965,748) during the years ended December 31, 20202022 and 2021,2023, respectively.
The assumptions used in determining the net period cost were as follows:
 
  2019 2020 2021
  Puerto
Rico
  Brazil  Mexico  Europe Puerto
Rico
  Brazil  Mexico  Europe 
Puerto
Rico
  
Brazil
  
Mexico
  
Europe
              0.75%,
 
             0.25%,
 
             
0.25%,
 
              1.00% &      6.48% &      0.50% &      
8.51% &
      
0.75% &
             
Discount rate and long-term
 
rate
 
return
  3.23
%

  7.03
%

  10.50
%

 1.25%  2.34
%

  7.39
%

  10.04
%

 0.75%  
2.75
%

  
8.67%
   
10.4
%

 
1.00%
             
              3.00%,             3.00%,             
3.00%,
              3.5% &             3.5% &             
3.40% &
Rate of future salary increases
  2.75%   3.80%   3.20%  4.40%  2.75%   3.25%   2.84%  4.10%  
2.75%
   
3.25%
   
2.80%
  
4.00%
             
Percentage of increase in health care
costs for the coming year
  3.18%   10.30%         2.28%   9.96%         
2.72%
   
9.44%
       
             
Year to which this level will be
maintained
  N/A   2029         N/A   2031         
NA
   
2030
       
             
Rate of increase of pensions
             1.60%             1.60%             
1.60%
             
Employee turnover rate*
             0.00%-1.38%             0.00%-1.31%             
0.00%-1.12%
  2021 2022 2023
  Puerto
Rico
  Brazil Mexico  Europe Puerto
Rico
  Brazil Mexico  Europe 
Puerto
Rico
  
Brazil
  
Mexico
  
Europe
Discount rate and long- term rate return
    0.25%,        
  8.51% &  
 
0.75% &
  
10.11% &
    
 
9.050% &
 
  
 
 
 
 
2.75
 
 
 
8.67%
 
 
 
 
10.4
 
 
 
1.00%
 
 
 
 
5.42
 
 
 
10.05%
 
 
 
 
11.5
 
 
 
3.75%
 
 
 
 
5.13
 
 
 
 
 
9.20%
 
 
 
 
 
 
11.65
 
 
 
3.25%
Rate of future salary increases
    3.00%,    4.5%,    
6.0%
    3.40%
&
    5.3% &    
&
  2.75%  3.25%  2.80%  4.00%  2.75%  3.50%  2.8%  3.4%, 4.6% 
 
2.00%
 
 
 
3.50%
 
 
 
2.8%
 
 
3.6%5.4%
Percentage of increase in health care costs for
the coming year
  2.72%  9.44%    5.44%  9.71%   
 
5.13%
 
 
 
9.71%
 
  
Year to which this level will be maintained
  N/A  2030  NA  2031   
 
NA
 
 
 
2032
 
  
Rate of increase of pensions
    1.60%    1.90%    
2.50%
Employee turnover rate*
    0.00%
1.12%
    0.00%
1.03%
    
0.00%-
0.91%
 
*
Depending on years of service
 
F-7
F-
71
8

Biometric
 
Puerto Rico:  
Mortality:  RP 2014,RPI 2012, MSS 202
1
2022 Tables.
Disability:1985 Pension Disability Table
Brazil:  
Mortality:  2000 Basic AT Table for gender
Disability for assets:  UP 84 modified table for gender
Disability retirement:  80 CSO Code Table
Rotation:  Probability of leaving the Company other than death, Disability and retirement is zero
Europe
Life expectancy in Austria is base on “AVÖ 2018-P – Rechnungsgrundlagen für die Pensionsversicherung – Pagler & Pagler”.
 
Telmex  
Mortality:  Mexican 2000 (CNSF) adjusted
Disability:  Mexican Social Security adjusted by Telmex experience
Turnover:  Telmex experience
Retirement:  Telmex experience
For the year ended December 31, 2021,2023, the Company conducted a sensitivity analysis on the most significant variables that affect the DBO liability, simulating independently, reasonable changes to roughly 100 basis points in each of these variables. The increase (decrease) would have resulted in the DBO pension and other benefits liability at December 31, 20212023 are as follows:
 
  
-100 points
   
+100 points
   
-100 points
   
+100 points
 
Discount rate
  Ps.32,094,727   Ps.(22,626,321  Ps.24,649,189   Ps.(21,708,327)
Health care cost trend rat
  Ps.(431,724  Ps.499,356   Ps.(432,588  Ps.495,862 
Telmex Plans
Part of the Telmex´s employees are covered under defined benefit pension plans and seniority premiums. Pension benefits and seniority premiums are determined on the basis in their final year of employment, their seniority, and their age at the time of retirement. Telmex has set up an irrevocable trust fund to finance these employee benefits and has adopted the policy of making contributions to such fund when it is considered necessary.
Europe
Defined benefit pension plans
A1 Telekom Austria Group provides defined benefits for certain former employees in Austria. All eligible employees are retired and were employed prior to January 1, 1975. This unfunded plan provides benefits based on a percentage of salary and years employed, not exceeding 80% of the salary before retirement, and taking into consideration the pension provided by the social security system. A1 Telekom Austria Group is exposed primarily to the risk of development of life expectancy and inflation because the benefits from pension plans are lifetime benefits. Furthermore, at December 31, 2021, approximately 24% (2020: 20%) of the obligation for pensions relate to the employees of the company Akenes in Lausanne.Lausanne are included.
 
F-7
F-
72
9

Service awards
Civil servants and certain employees (in the following “employees”) are eligible to receive service awards. In accordance with the legal regulations, eligible employees receive a cash bonus of two months’ salary after 25 years of service and four months’ salary after 40 years of service. Employees with at least 35 years of service when retiring (at the age of 65) or who are retiring based on specific legal regulations are also eligible to receive the service award of four monthly salaries. The obligation is accrued over the period of service, taking into account the employee turnover rate for employees who leave employment prematurely. The main risk that A1 Telekom Austria Group is exposed to is the risk of development of salary increases and changes of interest rates.
Severance
Defined contribution plans
Employees who started work for A1 Telekom Austria Group in Austria on or after January 1, 2003 are covered by a defined contribution plan. In 2021,2023, A1 Telekom Austria Group paid Ps. 68,425 (2020:74,994 (2022: Ps. 66,294)66,700), 1.53% of the salary or wage, into this defined contribution plan (BAWAG Allianz Mitarbeitervorsorgekasse AG).
Defined benefit plans
Severance benefit obligations for employees, whose employment commenced before January 1, 2003, excluding civil servants, are covered by defined benefit plans. Upon termination of employment by A1 Telekom Austria Group or upon retirement, eligible employees receive severance payments. Depending on their time in service, their severance amounts to a multiple of their monthly basic compensation plus variable components such as overtime or bonuses, up to a maximum of twelve monthly salaries. In case of death, the heirs of eligible employees receive 50% of the severance benefits. The primary risks to A1 Telekom Austria Group are salary increases and changes of interest rates.
b) Defined Contribution Plans
Brazil
Claro makes contributions to the DCP through Embratel Social Security Fund – Telos. Contributions are computed based on the salaries of the employees, who decide on the percentage of their contributions to the plan (participants enrolled before October 31st, 2014 is from 1% to 8% and, for those subscribed after that date, the contribution is from 1% to 7% of their salaries). Claro contributes the same percentage as the employee, capped at 8% of the participant’s balance for the employees that are eligible to participate in this plan.
At December 31, 20202022 and 2021,2023, the balance of the DCP liability was Ps. 980,01434,775 and Ps
.
274,630Ps. 320,904 respectively. For the years ended December 31, 2019, 20202021, 2022 and 20212023 the cost of labor were Ps. 3,365,61,649, Ps. 2,9305,021 and Ps.
61,649, 3,846, respectively.
Europe
In Austria, pension benefits are generally provided by the social security system for employees, and by the government for civil servants. The contributions of 12.55% of gross salaries that A1 Telekom Austria Group made in 20212023 to the social security system and the government in Austria amount to Ps. 1,436,587 (2020:1,105,037, (2022: Ps.
1,474,721) 1,272,331). In 2021,2023, contributions of the foreign subsidiaries into the respective systems range between 7% and 29%28% of gross salaries and amount to Ps. 601,626 (2020:560,777, (2022: Ps. 601,476)597,710).
Additionally, A1 Telekom Austria Group offers a defined contribution plan for employees of some of its Austrian subsidiaries. A1 Telekom Austria Group’s contributions to this plan are based on a percentage of the compensation not exceeding 5%. In 2021,2023, the annual expenses for this plan amounted to Ps. 286,195 (2020:199,345, (2022: Ps.
295,567) 252,980).
 
F-
7380

As of December 31, 20202022 and 20212023, the liability related to this defined contribution plan amounted to Ps. 134,03455,937 and Ps.
114,233, 56,692, respectively.
Other countries
For the rest of the countries where the Company operates and that do not have defined benefit plans or defined contribution plans, the Company makes contributions to the respective governmental social security agencies which are recognized in results of operations as they are incurred.
c) Long-term direct employee benefits
 
   Balance at
December 31,
2019
   Effect of
translation
  Increase of
the year
   Payments  Balance at
December 31,
2020
 
Long-term direct employee benefits
  Ps.8,175,767   Ps.1,256,880  Ps.1,729,392   Ps.(2,411,436 Ps.8,750,603 
   
 
 
   
 
 
  
 
 
   
 
 
  
 
 
 
      
   
Balance at
December 31,
2020
   
Effect of
translation
  
Increase of
the year
   
Payments
  
Balance at
December 31,
2021
 
Long-term direct employee benefits
  
Ps.
8,750,603
 
  
Ps.
(328,619
 
Ps.
1,824,693
 
  
Ps.
(2,320,831
 
Ps.
7,925,846
 
   
 
 
   
 
 
  
 
 
   
 
 
  
 
��
 
Balance at
December 31,
2021
Effect of
translation
Increase of
the year
PaymentsBalance at
December 31,
2022
Long-term direct employee benefits
Ps.7,925,846Ps.(879,484)Ps.1,376,566Ps.(2,019,176)Ps.6,403,752
Balance at
December 31,
2022
Effect of
translation
Increase of
the year
Payments
Balance at
December 31,
2023
Long-term direct employee benefits
Ps.6,403,752
Ps.(647,033)
Ps.1,608,275
Ps.(1,975,199)
Ps.5,389,795
In 2008, a comprehensive restructuring program was initiated in the segment Austria. The provision for restructuring includes future compensation of employees who will no longer provide services for A1 Telekom Austria Group but who cannot be laid off due to their status as civil servants. These employment contracts are onerous contracts under IAS 37, as the unavoidable cost related to the contractual obligation exceeds the future economic benefit. The restructuring program also includes social plans for employees whose employment will be terminated in a socially responsible way. In 2009 and every year from 2011 to 2019,2020, new social plans were initiated that provide for early retirement, special severance packages and golden handshake options. Due to their nature as termination benefits, these social plans are accounted for according to IAS 19.
 
F-
F-7
481

Note 19. Financial Assets and Liabilities
Set out below is the categorization of the financial instruments, excluding cash and cash equivalents, held by the Company as of December 31, 20202022 and 2021:2023:
 
  
December 31, 2020
   December 31, 2022 
  
Loans and
Receivables
   
Fair value
through
profit or loss
   
Fair value
through OCI
   Loans and
Receivables
   Fair value
through
profit or loss
   Fair value
through OCI
 
Financial Assets:
         
Equity investments at fair value through OCI and other short term investments
  Ps.62,940   Ps.—     Ps.50,033,111 
Accounts receivable from subscribers, distributors, contractual assets and other
   171,213,415    —      —   
Related parties
   1,391,300    —      —   
Equity investments at fair value through OCI and other short-term investments (Note 4)
  Ps.—    Ps.—    Ps.88,428,111 
Accounts receivable from subscribers, distributors, contractual assets and other (Note 5)
   161,201,512    —     —  
Related parties (Note 6)
   2,287,213    —     —  
Derivative financial instruments
(Note 7)
   —      20,928,335    —      —     2,602,680    —  
  
 
   
 
   
 
 
 
   
 
   
 
 
Total current assets
   172,667,655    20,928,335    50,033,111    163,488,725    2,602,680    88,428,111 
  
 
   
 
   
 
 
 
   
 
   
 
 
Non-current assets
         
Debt instruments
at fair value through OCI
   0    —   

4,540,344
 
Debt instruments at fair value through OCI
Debt instruments at fair value through OCI
Debt instruments at fair value through OCI
Debt instruments at fair value through OCI
   —     —     6,981,149 
  
 
   
 
   
 
 
 
   
 
   
 
 
Total
  Ps.172,667,655   Ps.20,928,335   Ps.54,573,455   Ps.163,488,725   Ps.2,602,680   Ps.95,409,260 
  
 
   
 
   
 
 
 
   
 
   
 
 
Financial Liabilities:
         
Debt
  Ps.628,382,956   Ps.—     Ps.—   
Liability related to right-of-use of assets
   109,327,241    —      —   
Accounts payable
   186,995,472    —      —   
Related parties
   3,999,916    —      —   
Debt (Note 14)
  Ps.510,589,480   Ps.—    Ps.—  
Liability related to right-of-use of assets (Note 15)
   134,148,811    —     —  
Accounts payable (Note 16)
   174,472,769    —     —  
Related parties (Note 6)
   7,224,218    —     —  
Derivative financial instruments (Note 7)
   —      14,230,249    —      —     25,331,346    —  
  
 
   
 
   
 
 
 
   
 
   
 
 
Total
  Ps.928,705,585   Ps.14,230,249   Ps.—     Ps.826,435,278   Ps.25,331,346   Ps.—  
  
 
   
 
   
 
 
 
   
 
   
 
 
   
December 31, 2023
 
   
Loans and
Receivables
   
Fair value
through
profit or loss
   
Fair value
through OCI
 
Financial Assets:
      
Equity investments at fair value through OCI and other short-term investments (Note 4)
  
Ps.
3,523,883
 
  
Ps.
— 
 
  
Ps.
70,231,744
 
Accounts receivable from subscribers, distributors, contractual assets and other (Note 5)
  
 
158,700,738
 
  
 
— 
 
  
 
— 
 
Related parties (Note 6)
  
 
1,071,520
 
  
 
— 
 
  
 
— 
 
Derivative financial instruments (Note 7)
  
 
— 
 
  
 
1,446,034
 
  
 
— 
 
  
 
 
   
 
 
   
 
 
 
Total current assets
  
 
163,296,141
 
  
 
1,446,034
 
  
 
70,231,744
 
  
 
 
   
 
 
   
 
 
 
Non-current assets
      
Debt instruments at fair value through OCI
  
 
— 
 
  
 
— 
 
  
 
14,914,412
 
  
 
 
   
 
 
   
 
 
 
Total
  
Ps.
163,296,141
 
  
Ps.
1,446,034
 
  
Ps.
85,146,156
 
  
 
 
   
 
 
   
 
 
 
Financial Liabilities:
      
Debt (Note 14)
  
Ps.
500,677,052
 
  
Ps.
— 
 
  
Ps.
— 
 
Liability related to right-of-use of assets (Note 15)
  
 
125,169,156
 
  
 
— 
 
  
 
— 
 
Accounts payable (Note 16)
  
 
162,097,416
 
  
 
— 
 
  
 
— 
 
Related parties (Note 6)
  
 
6,766,826
 
  
 
— 
 
  
 
— 
 
Derivative financial instruments (Note 7)
  
 
— 
 
  
 
17,896,379
 
  
 
— 
 
  
 
 
   
 
 
   
 
 
 
Total
  
Ps.
794,710,450
 
  
Ps.
17,896,379
 
  
Ps.
— 
 
  
 
 
   
 
 
   
 
 
 
 
F-8
F-
752

   
December 31, 2021
 
   
Loans and
Receivables
   
Fair value
through
profit or loss
   
Fair value
through OCI
 
Financial Assets:
               
Equity investments at fair value through OCI and other short term investments
  
Ps.
15,026
 
  
Ps.
—  
   
Ps.
117,688,176
 
Accounts receivable from subscribers, distributors, contractual assets and other
  
 
166,041,321
 
  
 
—  
   
 
—  
 
Related parties
  
 
1,158,611
 
  
 
—  
 
  
 
—  
 
Derivative financial instruments
 (Note 7)
  
 
—  
 
  
 
10,130,806
   
 
—  
 
   
 
 
   
 
 
   
 
 
 
Total current assets
  
 
167,214,958
 
  
 
10,130,806
 
  
 
117,688,176
 
   
 
 
   
 
 
   
 
 
 
Non-current assets
               
Debt instruments
 at fair value through OCI
  
 
—  
 
  
 
—  
 
  
 
6,894,757
 
   
 
 
   
 
 
   
 
 
 
Total
  
Ps.
167,214,958
 
  
Ps.
10,130,806
 
  
Ps.
124,582,933
 
   
 
 
   
 
 
   
 
 
 
Financial Liabilities:
               
Debt
  
Ps.
564,030,102
 
  
Ps.
—  
   
Ps.
—  
 
Liability related to right-of-use of assets
  
 
98,654,225
 
  
 
—  
   
 
—  
 
Accounts payable
  
 
201,341,806
 
  
 
—  
   
 
—  
 
Related parties
  
 
4,216,882
 
  
 
—  
   
 
—  
 
Derivative financial instruments (Note 7)
  
 
—  
 
  
 
10,034,508
   
 
—  
 
   
 
 
   
 
 
   
 
 
 
Total
  
Ps.
868,243,015
 
  
Ps.
10,034,508
 
  
Ps.
—  
 
   
 
 
   
 
 
   
 
 
 
Fair value hierarchy
The Company’s valuation techniques used to determine and disclose the fair value of its financial instruments are based on the following hierarchy:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Variables other than quoted prices in Level 1Valuation techniques for which the lowest level input that are observable foris significant to the asset or liability, eitherfair value measurement is directly (prices) or indirectly (derived from prices);observable; and
Level 3: Variables usedValuation techniques for which the asset or liabilitylowest level input that are not based on any observable market data (non-observable variables).is significant to the fair value measurement is unobservable.

F-7
6

The fair value for the financial assets (excluding cash and cash equivalents) and financial liabilities shown in the consolidated statements of financial position at December 31, 20202022 and 20212023 is as follows:
 
  
Measurement of fair value at December 31, 2020
   Measurement of fair value at December 31, 2022 
  
Level 1
   
Level 2
   
Level 3
   
Total
   Level 1   Level 2   Level 3   Total 
Assets:
            
Equity investments at fair value through OCI and other short-term investments
  Ps.50,033,111   Ps.62,940   Ps.—     Ps.50,096,051 
Equity investments at fair value through OCI and other short-term investments (Note 4)
  Ps.88,428,111   Ps.—    Ps.—    Ps.88,428,111 
Derivative financial instruments (Note 7)
   —      20,928,335    —      20,928,335    —     2,602,680    —     2,602,680 
Revalued of assets (Note 23)
   —      —      107,152,628    107,152,628 
Pension plan assets (Note 18)
   168,939,091    22,589,392    21,100    191,549,583 
  
 
   
 
   
 
   
 
 
 
   
 
   
 
   
 
 
Total current assets
   218,972,202    43,580,667    107,173,728    369,726,597    88,428,111    2,602,680    —     91,030,791 
  
 
   
 
   
 
   
 
 
 
   
 
   
 
   
 
 
Revalued of assets (Note 10)
   —     —     38,353,719    38,353,719 
Pension plan assets (Note 18)
   192,829,688    15,657,661    39,270    208,526,619 
Debt instruments
at fair value through OCI
   —      4,540,344    —      4,540,344    —     6,981,149    —     6,981,149 
 
   
 
   
 
   
 
 
Total non current assets
   192,829,688    22,638,810    38,392,989    253,861,487 
  
 
   
 
   
 
   
 
 
 
   
 
   
 
   
 
 
Total
  Ps.218,972,202   Ps.48,121,011   Ps.107,173,728   Ps.374,266,941   Ps.281,257,799   Ps.25,241,490   Ps.38,392,989   Ps.344,892,278 
  
 
   
 
   
 
   
 
 
 
   
 
   
 
   
 
 
Liabilities:
            
Debt
  Ps.578,712,562   Ps.135,645,912   Ps.—     Ps.714,358,474   Ps.371,709,395   Ps.116,848,635   Ps.—    Ps.488,558,030 
Liability related to right-of-use of assets
   109,327,241    —      —      109,327,241    134,148,811    —     —     134,148,811 
Derivative financial instruments (Note 7)
   —      14,230,249    —      14,230,249 
Derivative financial instruments
   —     25,331,346    —     25,331,346 
  
 
   
 
   
 
   
 
 
 
   
 
   
 
   
 
 
Total
  Ps.688,039,803   Ps.149,876,161   Ps.—     Ps.837,915,964   Ps.505,858,206   Ps.142,179,981   Ps.—    Ps.648,038,187 
  
 
   
 
   
 
   
 
 
 
   
 
   
 
   
 
 
  
 
 
   
Measurement of fair value at December 31, 2021
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Assets:
                    
Equity investments at fair value through OCI and other short-term investments
  
Ps.
117,688,176
 
  
Ps.
15,026
 
  
Ps.
—  
   
Ps.
117,703,202
 
Derivative financial instruments (Note 7)
  
 
—  
 
  
 
10,130,806
 
  
 
—  
 
  
 
10,130,806
 
Revalued of assets (Note 23)
  
 
—  
 
  
 
—  
 
  
 
98,172,675
 
  
 
98,172,675
 
Pension plan assets (Note 18)
  
 
196,148,604
 
  
 
22,124,138
 
  
 
54,440
 
  
 
218,327,182
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total current assets
  
 
313,836,780
 
  
 
32,269,970
 
  
 
98,227,115
 
  
 
444,333,865
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Debt instruments
 at fair value through OCI 
  
 
—  
 
  
 
6,894,757
 
  
 
—  
 
  
 
6,894,757
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total
  
Ps.
313,836,780
 
  
Ps.
39,164,727
 
  
Ps.
98,227,115
 
  
Ps.
451,228,622
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Liabilities:
                    
Debt
  
Ps.
440,660,165
 
  
Ps.
180,122,540
 
  
Ps.
—  
 
  
Ps.
620,782,705
 
Liability related to right-of-use of assets
  
 
98,654,225
 
  
 
—  
 
  
 
—  
 
  
 
98,654,225
 
Derivative financial instruments
  
 
—  
 
  
 
10,034,508
 
  
 
—  
 
  
 
10,034,508
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total
  
Ps.
539,314,390
 
  
Ps.
190,157,048
 
  
Ps.
—  
 
  
Ps.
729,471,438
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
F-8
F-7
73

   
Measurement of fair value at December 31, 2023
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Assets:
        
Equity investments at fair value through OCI and other short-term investments (Note 4)
  
Ps.
70,231,744
 
  
Ps.
— 
 
  
Ps.
3,523,883
 
  
Ps.
73,755,627
 
Derivative financial instruments (Note 7)
  
 
— 
 
  
 
1,446,034
 
  
 
— 
 
  
 
1,446,034
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Total current assets
  
 
70,231,744
 
  
 
1,446,034
 
  
 
3,523,883
 
  
 
75,201,661
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Revalued of assets (Note 10)
  
 
— 
 
  
 
— 
 
  
 
9,239,279
 
  
 
9,239,279
 
Pension plan assets (Note 18)
  
 
191,442,079
 
  
 
12,616,945
 
  
 
33,563
 
  
 
204,092,587
 
Debt instruments at fair value through OCI
  
 
4,538,631
 
  
 
10,375,781
 
  
 
— 
 
  
 
14,914,412
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Total non current assets
  
 
195,980,710
 
  
 
22,992,726
 
  
 
9,272,842
 
  
 
228,246,278
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Total
  
Ps.
266,212,454
 
  
Ps.
24,438,760
 
  
Ps.
12,796,725
 
  
Ps.
303,447,939
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Liabilities:
        
Debt
  
Ps.
382,310,932
 
  
Ps.
107,730,819
 
  
Ps.
— 
 
  
Ps.
490,041,751
 
Liability related to right-of-use of assets
  
 
125,169,156
 
  
 
— 
 
  
 
— 
 
  
 
125,169,156
 
Derivative financial instruments
  
 
— 
 
  
 
17,896,379
 
  
 
— 
 
  
 
17,896,379
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Total
  
Ps.
507,480,088
 
  
Ps.
125,627,198
 
  
Ps.
— 
 
  
Ps.
633,107,286
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Fair value of derivative financial instruments is valued using valuation techniques with market observable inputs. To determine its Level 2 fair value, the Company applies different valuation techniques including forward pricing and swaps models, using present value calculations. The models incorporate various inputs including credit quality of counterparties, foreign exchange spot and forward rates and interest rate curves. Fair value of debt Level 2 has been determined using a model based on present value calculation incorporating credit quality of AMX. The fair value of VTR bonds in AMX B.V. as debt instruments at fair value through OCI, were classified as Level 1 in order they are guaranteed with shares listed on the regulated market. The Company’s investment in equity investments at fair value, specifically the investment in KPN N.V. and Verizon, is valued using the quoted prices (unadjusted) in active markets for identical assets. The net realized (loss) gainloss related to derivative financial instruments for the years ended December 31, 20202022 and 20212023 was Ps.
2,606,938 (2,353,920) and Ps.
(1,664,465) (9,420,419) respectively.
The fair value of the asset revaluation was calculated using valuation techniques, using observable market data and internal information on transactions carried out with independent third parties. To determine fair value we use level 2 and 3 information, the Company used inputs such as average rents, contract term and discount rates for discounted flow modeling techniques; in the case of discount rates, we use level 2 data where the information is public and is found in recognized databases, such as country risks, inflation, etc. In the case of average rents and contract terms, we use level 3 data, where the information is mainly internal based on lease contracts entered into with independent third parties.
During the end of the period ended December 31, 20202022 and 2021,2023, there were 0no transfers between the Level 1, Level 2 and Level 23 fair value measurement hierarchies.
F-8
4

Changes in liabilities arising from financing activities
 
   At December 31,
2021
   Cash flow  Foreign currency
exchange and
other
  At December 31,
2022
 
Debt
   Ps.564,030,102    Ps.43,073,992   Ps.(96,514,614  Ps.510,589,480 
Liability related to right-of-use of assets
   98,654,225    (33,823,287  69,317,873   134,148,811 
  
 
 
   
 
 
  
 
 
  
 
 
 
Total liabilities from financing activities
   Ps.662,684,327    Ps.9,250,705   Ps.(27,196,741  Ps.644,738,291 
  
 
 
   
 
 
  
 
 
  
 
 
 
   
At
 
December 31,
2019
   
Cash flow
  
Foreign currency
exchange and
other
   
At December 31,
2020
 
Debt
  Ps.624,254,477   Ps.(53,091,801 Ps.57,220,280   Ps.628,382,956 
Liability related to right-of-use of assets
   120,596,733    (29,623,565  18,354,073    109,327,241 
   
 
 
   
 
 
  
 
 
   
 
 
 
Total liabilities from financing activities
  Ps.744,851,210   Ps.(82,715,366 Ps.75,574,353   Ps.737,710,197 
   
 
 
   
 
 
  
 
 
   
 
 
 
 

   
At December 31,
2022
   
Cash flow
  
Foreign currency
exchange and
other
  
At December 31,
2023
 
Debt
  
 
Ps.510,589,480
 
  
 
Ps.34,644,826
 
 
 
Ps.(44,557,254
 
 
Ps.500,677,052
 
Liability related to right-of-use of assets
  
 
134,148,811
 
  
 
(39,498,197
 
 
30,518,542
 
 
 
125,169,156
 
  
 
 
   
 
 
  
 
 
  
 
 
 
Total liabilities from financing activities
  
 
Ps.644,738,291
 
  
 
Ps.(4,853,371
 
 
Ps.(14,038,712
 
 
Ps.625,846,208
 
  
 
 
   
 
 
  
 
 
  
 
 
 
   
At December 31,
2020
   
Cash flow
  
Foreign currency
exchange and
other
  
At December 31,
2021
 
Debt
  
Ps.
628,382,956
 
  
Ps.
(58,354,281
 
Ps.
(5,998,573
 
Ps.
564,030,102
 
Liability related to right-of-use of assets
  
 
109,327,241
 
  
 
(30,544,750
 
 
19,871,734
 
 
 
98,654,225
 
   
 
 
   
 
 
  
 
 
  
 
 
 
Total liabilities from
financing activities
  
Ps.
737,710,197
 
  
Ps.
(88,899,031
 
Ps.
13,873,161
 
 
Ps.
662,684,327
 
   
 
 
   
 
 
  
 
 
  
 
 
 
Note 20. Shareholders’ Equity
a)
Pursuant to the Company’s bylaws, the capital stock of the Company consists of a minimum fixed portion of Ps. 252,371,238,749 (nominal amount),
represented as of December 31, 20212023 by a total of 66,411,260,64963,220,260,000 shares (including treasury shares available for placement in accordance with the provisions of the
Ley del Mercado de Valores)Valores
), all of which (i) 20,554,697,460 are “AA” shares (full voting rights); (ii) 502,404,175 are “A” shares (full
voting rights); and (iii) 45,354,159,014 are “L” shares (limited voting rights).
them “B” shares.
b)
As of December 31, 20212023 and 2020,2022, respectively, the Company’s capital stock was represented by 64,689,740,63362,450,000,000 outstanding “B” shares (20,554,697,460and 63,325,000,000 outstanding shares (comprised of 20,554,697,460 “AA” shares, 502,404,175488,283,894 “A” shares and 43,632,638,998 “L” shares), and 66,862,560,649 shares (20,578,173,274 “AA” shares, 519,926,536 “A” shares and 45,764,460,83942,282,018,646 “L” shares), respectively.
F-7
8

c)
As of December 31, 20212023 and 2020,2022, respectively, the Company’s treasury held for placement in accordance with the provisions of the Ley del Mercado de Valores and the
Disposiciones de carácter general aplicables a las emisoras de valores y a otros participantes en el Mercado de valores
issued by the Comisión Nacional Bancaria y de Valores, a total amount of 1,721,520,016 shares all of which are770,260,000 series L“B” shares and 4,200,651,521 shares (4,200,629,62156,000,000 series “L” shares, and 21,900 “A” shares), respectively, all acquired pursuant to the Company’s share repurchase program.
d)
The holders of “AA” and “A” Company’s “B” shares are entitled toregistered common and no-par value shares with full voting rights. The holders of “L” shares may only vote in limited circumstances, and they are only entitled to appoint two members of the Board of Directors and their respective alternates. The matters in which “L” shares holders are entitled to vote are the following: extension of the Company´s corporate life, dissolution of the Company, change of Company’s corporate purpose, change of nationality of the Company, transformation of the Company, a merger with another company, any transaction representing 20% or more of the Company’s consolidated assets, as well as the cancellation of the inscription of the shares issued by the Company at the Registro Nacional de Valores and any other foreign stock exchanges where they may be registered, except for quotation systems or other markets not organized as stock exchanges. Within their respective series, all shares confer the same rights to their holders.
The Company’s bylaws contain restrictions and limitations related to the subscription and acquisition of “AA” shares by non-Mexican investors.
e)
Pursuant to the Company’s bylaws, “AA” shares must at all times represent no less than 20% and no more than 51% of the Company’s capital stock, and they shall also represent at all times, no less than 51% of the common shares (entitled to full voting rights, represented by “AA” and “A” shares) representing said capital stock.
“A” shares, which may be freely subscribed, must not represent more than 19.6% of capital stock and must not exceed 49% of the common shares representing such capital. Common shares (entitled to full voting rights, represented by “AA” and “A” shares), must represent no more than 51% of the Company’s capital stock.

Lastly
, “L” shares which have limited voting rights and may be freely subscribed may not exceed, along with “A” shares,
80
% of the Company’s capital stock. For purposes of determining these restrictions, the percentages mentioned above refer only to the number of the Company’s shares outstanding.
Dividends
On April 26, 2021,27, 2023, the Company’s shareholders approved, among other resolutions, the payment of a dividend of Ps. 0.40 (forty$0.46 (forty-six peso cents) per share to each of the shares of its capital stock. It was approved, that such dividend would be paid in two installments of Ps.$0.23 (twenty-three peso cents) each, on July 17 and November 13, 2023, respectively.
On April 20, 2022, the Company’s shareholders approved among other resolutions, the payment of a dividend of Ps.0.44 (forty-four peso cents) per share to each of the shares series of its capital stock “AA”, “A” and “L”. It was approved, that such dividend would be paid in two installmentsone installment of Ps. 0.20 (twenty0.44 (forty-four peso cents) each,, on July 19 and November 08, 2021 respectively.August 29, 2022.
F-8
5

Spin-off
On April 24, 2020,August 8, 2022, the Company’s shareholders approved, among other resolutions,capital stock reflects a reduction of $1,572 (nominal amount), derived from the paymentCompany’s spin-off and its contribution to Sitios Latam, without having modified the number of a dividend of Ps. 0.38 (thirty-eight peso cents) per share to eachshares of the shares series of its capital stock “AA”, “A” and “L”. It was approved, that such dividend would be paid in two installments of Ps. 0.19 (nineteen peso cents) each, on July 20 and November 09, 2020 respectively.Company due to the spin-off.
Legal Reserve
According to the General Corporations Law (
Ley General de Sociedades Mercantiles,Mercantiles)
, companies must allocate from the net profit of each year, at least 5% to increase the legal reserve until it reaches 20% of its capital stock. This reserve may not be distributed to shareholders during the existence of the Company, except as a stock dividend. As of December 31, 20212023 and 2020,December 31, 2022, the legal reserve amounted to Ps. 358,440.
F-7
9

Restrictions on Certain Transactions
Pursuant to the Company’s bylaws any transfer of more than 10% of the full voting shares, (“A” shares and “AA” shares), effected in one or more transactions by any person or group of persons acting in concert, requires prior approval by our Board of Directors. IfHowever, if the Board of Directors denies such approval, however, the CompanyCompany’s bylaws require it to designate an alternate transferee, who must pay market price for the shares as quoted on the Bolsa Mexicana de Valores, S.A.B. de C.V.
Payment of Dividends
Dividends eitherpaid in cash, or in kind, paid with respect to the “A” Shares, “L” Shares, “A” Share ADSs“B” shares or “L” Share“B” share ADSs will generally be subject to a 10% Mexican withholding tax (provided that no Mexican withholding tax will apply to distributions of net taxable profits generated before 2014). NonresidentNon-resident holders could be subject to a lower tax rate, to the extent that they are eligible for benefits under an income tax treaty to which Mexico is a party.
Repurchase of shares
On April 14, 2023, the Company’s annual shareholders meeting authorized an amount of Ps. 20 billion to repurchase the Company’s own shares. During the fiscal year ended on December 31, 2023, the Company repurchase 875,000,000 series “B” shares. At the end of 2023 and after considering the cancelation of shares approved by the shareholders meeting on April 14, 2023, the Company had in treasury 770,260,000 series “B” shares.
Earnings per Share
The following table shows the computation of the basic and diluted earnings per share:
 
  
For the years ended December 31,
 
  
2019
  
2020
  
2021
 
Net profit for the period attributable
to equity holders of the parent from continuing operations
 Ps.57,886,001  Ps.29,859,980  
Ps.
70,712,449
 
Net profit for the period attributable
to equity holders of the parent from discontinued operations
  9,844,889   16,992,625  
 
121,710,718
 
  
 
 
  
 
 
  
 
 
 
Net profit for the period attributable
to equity holders of the parent
  67,730,890   46,852,605  
 
192,423,167
 
Weighted average shares (in millions)
  66,016   66,265  
 
65,967
 
  
 
 
  
 
 
  
 
 
 
Earnings per share attributable to
equity holders of the parent continuing operations
 Ps.0.88  Ps.0.45  
Ps.
1.07
 
  
 
 
  
 
 
  
 
 
 
Earnings per share attributable to
equity holders of the parent discontinued operations
 Ps.0.15  Ps.0.26  
Ps.
1.85
 
  
 
 
  
 
 
  
 
 
 
   
For the years ended December 31,
 
   
(1)

2021
   
(1)

2022
  
2023
 
Net profit for the period attributable to equity holders of the parent from continuing operations
  Ps.68,187,225   Ps.82,878,406  
Ps.
76,110,617
 
Net profit for the period attributable to equity holders of the parent from discontinued operations
   124,235,942    (6,719,015 
 
— 
 
  
 
 
   
 
 
  
 
 
 
Net profit for the period attributable to equity holders of the parent
   192,423,167    76,159,391  
 
76,110,617
 
Weighted average shares (in millions)
   65,967    63,936  
 
63,049
 
  
 
 
   
 
 
  
 
 
 
Earnings per share attributable to equity holders of the parent continuing operations
  Ps.1.03   Ps.1.30  
Ps.
1.21
 
  
 
 
   
 
 
  
 
 
 
Earnings per share attributable to equity holders of the parent discontinued operations
  Ps.1.88   Ps.(0.11 
Ps.
 
  
 
 
   
 
 
  
 
 
 
(1)
Discontinued operations
F-8
6

Note 21. Components of other comprehensive loss (income)income (loss)
The movement on the components of the other comprehensive income (loss) income for the years ended December 31, 2019, 20202021, 2022 and 20212023 is as follows:
 
  
For the years ended December 31,
   
For the years ended December 31,
 
  
2019
 
2020
 
2021
   2021 2022 
2023
 
Controlling interest:
       
Unrealized gain (loss) on equity investments at fair value, net of deferred taxes
  Ps.883,409  Ps.(1,952,414 
Ps.
4,560,869
 
  Ps.4,560,869  Ps.(4,707,276 
Ps.
(967,609
Translation effect of foreign entities
   (34,010,066  (13,558,774 
 
(4,837,206
   (4,837,206  (31,086,965 
 
(37,399,680
Translation effect by discontinued operations
   —     —    
 
(829,163
   (829,163  5,193,281  
 
— 
 
Remeasurement of defined benefit plan, net of deferred taxes
   (29,153,554  (10,026,454 
 
11,100,835
 
   11,100,835   (4,599,407 
 
(3,662,102
Asset’s revaluation surplus net of deferred taxes
   —     64,835,155  
 
—  
 
   —    —   
 
497,628
 
Non-controlling interest of the items above
   (1,908,304  14,165,249  
 
(2,135,886
   (2,135,886  (3,734,066 
 
(3,885,410
  
 
  
 
  
 
 
 
  
 
  
 
 
Other comprehensive (loss) income
  Ps.(64,188,515 Ps.53,462,762  
Ps.
7,859,449
 
Other comprehensive income (loss)
  Ps.7,859,449  Ps.(38,934,433 
Ps.
(45,417,173
  
 
  
 
  
 
 
 
  
 
  
 
 
F-
80

Note 22. Valuation of derivatives, interest cost from labor obligations and other financial items, net
For the years ended December 31, 2019, 20202021, 2022 and 2021,2023, valuation of derivatives and other financial items are as follows:
 
  
For the years ended December 31,
 
  
For the years ended December 31,
   2021 2022 
2023
 
  2019 2020 
2021
 
Controlling interest:
       
Gain (loss) in valuation of derivatives, net
  Ps.4,432,023  Ps.12,378,193  
Ps.
(6,755,214
Loss in valuation of derivatives, net (Note 7)
  Ps.(6,755,214 Ps.(28,639,687 
Ps.
(10,268,520
Capitalized interest expense (Note 10 b)
   2,233,358   1,771,613  
 
1,527,259
 
   1,527,259   1,514,654  
 
1,442,077
 
Commissions
   (2,820,477  (1,135,082 
 
(1,071,935
   (1,067,381  (1,061,278 
 
(1,190,435
Interest cost of labor obligations (Note 18)
   (11,377,054  (13,105,693 
 
(14,375,520
   (14,375,520  (12,376,939 
 
(13,573,881
Contractual earn-out from business combination (Note 4)
   —    4,271,250  
 
2,206,671
 
Interest expense on taxes
   (516,522  (59,032 
 
(243,075
   (243,075  (190,822 
 
(220,983
Dividend received (Note 4)
   1,773,336   2,122,826  
 
2,628,600
 
Recognized dividend income (3) (Note 4)
   2,628,600   6,155,993  
 
4,551,827
 
Contractual compensation from business combination
   —    —   
 
(647,013
Impairment to notes receivable from joint venture
   —    —   
 
(12,184,562
Impairment of joint venture
   —    —   
 
(4,677,782
Allowance of doubtful accounts
(1)
   —    —   
 
(1,051,288
Gain on net monetary positions
   4,267,194   3,262,512  
 
4,876,842
 
   4,876,842   11,538,061  
 
9,321,480
 
Other financial cost
(i)
   (4,989,702  (3,942,459 
 
(837,023
Other financial cost
(2)
   (835,028  (327,451 
 
(522,259
  
 
  
 
  
 
 
 
  
 
  
 
 
Total with discontinued operations
  Ps.(6,997,844 Ps.1,292,878  
Ps.
(14,250,066
Total
  Ps.(14,243,517 Ps.(19,116,219 
Ps.
(26,814,668
  
 
  
 
  
 
 
 
  
 
  
 
 
 
(i)(1)
IncludesThis figure is related to certain uncollectible balances.
(2)
Excludes discontinued operations of TracfoneTracFone, Chile and Panama for the years ended 2021 and 2022. (See note 2, Ac)2ac)
(3)
Dividend received during 2021, 2022 and 2023 by Ps. 2,628,600, Ps, 5,426,370 and Ps. 4,590,313, respectively.
F-8
7

Note 23. Segments
América Móvil operates in different countries. As mentioned in Note 1, the Company has operations in Mexico, Guatemala, Nicaragua, Ecuador, El Salvador, Costa Rica, Brazil, Argentina, Colombia, Honduras, Chile, Peru, Paraguay, Uruguay, the Dominican Republic, Puerto Rico, Panama, Austria, Croatia, Bulgaria, Belarus, Macedonian, Serbia and Slovenia. The accounting policies for the segments are the same as those described in Note 2.
The Chief Executive Officer, who is the Chief Operating Decision Maker (“CODM”), analyzes the financial and operating information by operating segment. All operating segments that (i) represent more than 10% of consolidated revenues, (ii) more than the absolute amount of its reported 10% of profits before income tax or (iii) more than 10% of consolidated assets, are presented separately.
The Company presents the following reportable segments for the purposes of its consolidated financial statements: Mexico (includes Telcel and Corporate operations and assets), Telmex (Mexico), Brazil, Southern Cone (includes Argentina Chile,separated from Paraguay and Uruguay), Colombia, Andean (includes Ecuador and Peru), Central America (includes Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica and Panama), U.S.A. (excludes Puerto Rico)Rica), Caribbean (includes the Dominican Republic and Puerto Rico), and Europe (includes Austria, Bulgaria, Croatia, Belarus, Slovenia, Macedonia and Serbia).
The segment Southern Cone comprises mobile communication services, in Argentina as well as Chile, Paraguay and Uruguay. Beginning in 2018, hyperinflation accounting in accordance with IAS 29 was initially applied to Argentina, which results in the restatement of non-monetary assets, liabilities and all items of the statement of comprehensive income for the change in a general price index and the translation of these items applying the period-end exchange rate.
The Company considers that the quantitative and qualitative aspects of any aggregated operating segments (that is, Central America and Caribbean reportable segments) are similar in nature for all periods presented. In evaluating the appropriateness of aggregating operating segments, the key indicators considered included but were not limited to: (i) the similarity of key financial statements measures and trends, (ii) all entities provide telecommunications services, (iii) similarities of customer base and services, (iv) the methods to distribute services are the same, based on telephone plant in both cases, wireless and fixed lines, (v) similarities of governments and regulatory entities that oversee the activities and services of telecom companies, (vi) inflation trends, and (vii) currency trends.
 
F-8
F-
818

 
Mexico
 
Telmex
 
Brazil
 
Southern Cone
 
Colombia
 
Andean
 
Central
America
 
U.S.A.(1)
 
Caribbean
 
Europe
 
Eliminations
 
Consolidated
total
  Mexico Telmex Brazil  (2)
Southern Cone
  Colombia Andean 
(1)
Central
America
 Caribbean Europe Eliminations Consolidated
total
 
As of and for the year ended December 31, 2019 (in Ps.):
                        
 Mexico Telmex Brazil  Argentina Uruguay and
Paraguay
  Colombia Andean 
(1)
Central
America
 Caribbean Europe Eliminations Consolidated
total
 
External revenues
  226,164,231   84,173,980   177,596,077   54,230,682   74,274,684   55,440,675   46,602,036   —     34,580,822   98,420,289   —     851,483,476   225,219,719   87,189,642   148,729,232   35,419,511   4,825,315   79,312,071   52,888,323   45,406,174   37,858,979   113,838,486   —   830,687,452 
Intersegment revenues
  11,676,015   11,863,364   4,182,248   11,041,705   361,386   92,249   132,061   —     1,136,879   —     (40,485,907  —     18,041,465   15,237,420   4,044,386   224,300   (73,993  360,638   73,828   62,764   2,069,648   —    (40,040,456  —  
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
                                    
Total revenues
  237,840,246   96,037,344   181,778,325   65,272,387   74,636,070   55,532,924   46,734,097   —     35,717,701   98,420,289   (40,485,907  851,483,476   243,261,184   102,427,062   152,773,618   35,643,811   4,751,322   79,672,709   52,962,151   45,468,938   39,928,627   113,838,486   (40,040,456 830,687,452 
Depreciation and amortization
  24,742,622   16,346,927   39,424,474   13,847,506   13,439,489   10,256,129   11,045,817   —     6,322,648   24,975,146   (2,881,971  157,518,787   25,797,791   12,740,332   40,342,871   7,581,101   2,010,624   15,067,211   11,211,523   10,830,440   6,987,129   27,469,463   (3,735,493 156,302,992 
Operating income (loss)
  67,694,409   9,731,852   28,846,565   4,007,614   15,324,977   8,023,002   5,712,068   —     5,741,368   8,687,862   (9,971,433  143,798,284 
Operating income  77,783,972   21,100,316   21,867,457   3,520,432   (549,329  15,165,356   7,457,802   8,700,382   8,661,475   13,421,147   (9,572,760 167,556,250 
Interest income
  23,713,455   1,839,973   3,155,681   896,256   1,306,571   1,283,788   532,046   —     1,478,560   115,359   (28,037,017  6,284,672   14,864,242   758,126   2,104,574   820,505   2,165   431,314   833,540   269,379   701,785   116,031   (17,067,511 3,834,150 
Interest expense
  30,972,658   1,439,785   19,021,965   3,849,318   2,952,123   2,422,887   1,406,720   —     1,435,862   2,220,168   (27,810,532  37,910,954   24,586,641   1,385,103   15,875,138   2,518,149   275,047   2,240,707   1,213,421   1,061,526   1,066,733   2,414,415   (16,898,575 35,738,305 
Income tax
  30,000,511   1,528,229   4,251,116   2,022,336   5,405,452   1,681,159   2,355,380   —     719,774   1,946,255   3,843   49,914,055   25,002,390   2,496,010   (9,603,701  1,951,409   (1,168,564  3,112,946   2,375,281   2,940,404   2,171,594   3,438,161   1,547  32,717,477 
Equity interest in net income (loss) of associated companies
  (3,732  46,789   (1,538  (23,424  —     —     (28,795  —     —     (6,909  —     (17,609
Equity interest in net result of associated companies  85,648   44,525   4,575   (19,073  —    —    —    —    —    (1,757  —   113,918 
Net profit (loss) attributable to equity holders of the parent continues operations
  42,598,946   (1,705,068  5,618,095   (6,984  9,571,046   (2,604,646  2,335,963   —     4,312,630   5,051,145   (7,285,126  57,886,001   34,195,093   4,594,450   14,185,905   (2,999,123  152,766   5,959,563   4,180,473   4,746,847   5,151,166   8,313,018   (10,292,933 68,187,225 
Net profit (loss) attributable to equity holders of the parent discontinued operations
  —     —     —     —     —     —     —     —     —     —     —     9,844,889   —    —    —    —    —    —    —    —    —    —    —   124,235,942 
                                   
Net profit (loss) attributable to equity holders of the parent
  42,598,946   (1,705,068  5,618,095   (6,984  9,571,046   (2,604,646  2,335,963   —     4,312,630   5,051,145   2,559,763   67,730,890   34,195,093   4,594,450   14,185,905   (2,999,123  152,766   5,959,563   4,180,473   4,746,847   5,151,166   8,313,018   (10,292,933 192,423,167 
Assets by segment
  915,233,048   201,283,526   382,561,753   132,722,497   115,851,227   94,021,632   77,355,732   30,775,893   100,694,650   191,744,924   (710,311,225  1,531,933,657   999,502,407   195,869,232   407,458,440   77,951,595   58,312,728   133,232,525   95,719,937   101,725,955   102,949,901   210,944,575   (694,017,446 1,689,649,849 
Plant, property and equipment, net
  54,589,459   106,869,482   174,761,167   60,537,650   50,133,642   39,068,450   38,934,747   1,405,755   38,223,641   75,707,738   (888,361  639,343,370   50,420,866   118,056,718   153,607,199   38,039,995   26,824,991   48,888,907   34,395,339   42,407,727   41,601,009   79,764,422   (983,169 633,024,004 
Revalued of assets  —    —    33,004,669   2,192,978   3,966,099   10,266,464   8,389,460   9,113,632   2,564,149   28,675,224   —   98,172,675 
Goodwill
  27,396,393   215,381   25,379,805   5,241,305   12,124,685   4,895,331   7,289,748   3,220,105   14,186,723   52,950,325   —     152,899,801   26,965,618   215,381   15,335,322   198,010   4,993,831   11,685,585   4,688,154   6,002,380   14,186,723   52,307,190   —   136,578,194 
Trademarks, net
  46,476   212,324   37,207   —     —     —     —     369,950   227,156   2,595,596   —     3,488,709   90,673   149,865   —    —    —    —    —    —    229,000   2,822,625   —   3,292,163 
Licenses and rights, net
  11,087,882   452,504   29,324,718   12,103,980   5,530,422   8,064,487   4,390,547   —     7,942,670   25,951,335   —     104,848,545   11,081,972   129,233   39,620,009   11,824,500   1,966,503   11,384,533   5,502,139   5,220,437   10,847,685   25,709,849   —   123,286,860 
Investment in associated companies
  3,562,323   610,807   111,073   (7,806  391   —     25,603   —     —     —     (1,828,198  2,474,193   4,725,279   522,403   65,699   (34,401  —    351   —    26,348   —    —    (2,253,198 3,052,481 
Liabilities by segments
  718,354,229   175,774,964   297,877,328   103,330,525   55,576,253   55,463,339   37,993,180   31,557,816   54,276,868   124,319,541   (349,497,251  1,305,026,792   679,954,783   176,177,522   273,655,967   45,203,170   27,977,789   65,631,866   44,676,727   42,823,861   53,885,848   134,357,142   (308,736,552 1,235,608,123 
(1)Discontinued operations (Panama disposal)
(2)Discontinued operations (ClaroVTR joint venture)
F-8
9

  
Mexico
  
Telmex
  
Brazil
  (2)
Southern Cone
  
Colombia
  
Andean
  
(1)
Central
America
  
Caribbean
  
Europe
  
Eliminations
  
Consolidated
total
 
 Argentina  Uruguay and
Paraguay
 
As of and for the year ended December 31, 2022 (in Ps.):
            
External revenues
  236,608,249   83,046,967   165,804,342   34,363,532   4,456,541   70,925,374   55,426,258   47,054,127   40,859,951   105,956,056   —    844,501,397 
Intersegment revenues
  9,290,955   16,937,889   5,075,716   153,155   64,779   374,225   72,142   160,459   1,854,029   —    (33,983,349  —  
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
revenues
  245,899,204   99,984,856   170,880,058   34,516,687   4,521,320   71,299,599   55,498,400   47,214,586   42,713,980   105,956,056   (33,983,349  844,501,397 
Depreciation and amortization
  26,383,113   13,171,616   43,422,821   9,002,551   1,808,414   13,085,226   10,698,869   11,178,361   7,133,908   22,761,938   (13,031  158,633,786 
Operating income
  76,708,954   16,172,472   26,665,816   2,570,848   (778,032  14,170,936   8,262,395   7,540,132   10,284,834   16,155,520   (6,883,123  170,870,752 
Interest income
  18,336,415   925,158   2,679,103   718,676   3,463   624,304   906,176   431,741   701,794   229,958   (20,733,209  4,823,579 
Interest expense
  24,909,724   3,342,459   23,411,387   2,258,095   316,945   2,699,010   860,572   1,033,792   1,152,370   1,281,857   (20,007,408  41,258,803 
Income tax
  30,642,242   2,767,673   454,205   (286,202  126,003   2,286,809   2,870,743   1,708,728   2,432,392   3,151,281   (109,785  46,044,089 
Equity
interest in net result
of associated companies
  (1,821,608  31,000   20,864   (2,198  —    —    —    —    —    (39,490  —    (1,811,432
Net profit (loss) attributable to equity holders of the parent continues operations
  63,711,537   (373,036  10,254,969   (700,478  (231,151  6,486,771   6,122,291   5,059,038   6,649,004   11,795,662   (25,896,201  82,878,406 
Net profit (loss) attributable to equity holders of the parent discontinued operations
  —    —    —    —    —    —    —    —    —    —    —    (6,719,015
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net profit (loss) attributable to equity holders of the parent
  63,711,537   (373,036  10,254,969   (700,478  (231,151  6,486,771   6,122,291   5,059,038   6,649,004   11,795,662   (25,896,201  76,159,391 
Assets by segment
  1,042,849,460   215,543,807   407,802,373   79,283,120   10,258,999   104,769,670   85,782,831   96,321,649   101,143,182   154,774,150   (680,429,897  1,618,099,344 
Plant,
property and equipment, net
  49,677,868   134,928,482   159,382,793   38,525,335   4,149,285   44,999,710   33,480,299   41,312,113   40,606,623   72,272,633   (462,650  618,872,491 
Revalued of assets
  —    —    —    —    —    7,700,459   5,938,449   —    1,434,188   23,280,623   —    38,353,719 
Goodwill
  26,481,707   215,381   31,085,202   199,984   —    8,495,090   4,678,851   6,312,511   14,186,723   49,465,916   —    141,121,365 
Trademarks, net
  110,397   118,634   —    —    —    —    —    —    220,350   2,565,176   —    3,014,557 
Licenses and rights, net
  10,559,914   106,659   37,638,695   12,137,641   827,380   8,068,013   4,271,910   3,599,560   10,124,134   20,461,281   —    107,795,187 
Investment in associated companies
  24,656,295   550,493   22,708   (19,866  —    —    —    23,896   —    2,058   (1,260,122  23,975,462 
Liabilities by segments
  621,482,350   204,294,033   297,234,805   47,430,485   7,120,057   57,393,854   36,223,727   42,725,447   48,434,551   97,527,392   (279,596,630  1,180,270,071 
 
(1)
Restated for discontinued operations.Discontinued operations (Panama disposal)
(2)
Discontinued operations (ClaroVTR joint venture)
 
F-
8290

           
Southern Cone
                      
  
Mexico
  
Telmex
  
Brazil
  
Argentina
  
Uruguay and
Paraguay
  
Colombia
  
Andean
  
Central
America
  
Caribbean
  
Europe
  
Eliminations
  
Consolidated
total
 
As of and for the year ended December 31, 2023 (in Ps.):
            
External revenues
 
 
248,890,778
 
 
 
84,821,370
 
 
 
162,224,734
 
 
 
18,884,623
 
 
 
3,995,812
 
 
 
62,342,147
 
 
 
52,903,716
 
 
 
43,964,411
 
 
 
37,148,876
 
 
 
100,836,377
 
 
 
— 
 
 
 
816,012,844
 
Intersegment revenues
 
 
9,896,948
 
 
 
17,010,698
 
 
 
4,485,048
 
 
 
38,080
 
 
 
9,876
 
 
 
376,010
 
 
 
87,974
 
 
 
99,850
 
 
 
1,119,554
 
 
 
— 
 
 
 
(33,124,038
 
 
— 
 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
revenues
 
 
258,787,726
 
 
 
101,832,068
 
 
 
166,709,782
 
 
 
18,922,703
 
 
 
4,005,688
 
 
 
62,718,157
 
 
 
52,991,690
 
 
 
44,064,261
 
 
 
38,268,430
 
 
 
100,836,377
 
 
 
(33,124,038
 
 
816,012,844
 
Depreciation and amortization
 
 
26,640,899
 
 
 
14,333,486
 
 
 
44,302,136
 
 
 
5,677,627
 
 
 
1,319,462
 
 
 
13,360,622
 
 
 
10,084,882
 
 
 
10,028,603
 
 
 
7,189,119
 
 
 
21,008,775
 
 
 
(2,159,547
 
 
151,786,064
 
Operating income
 
 
84,816,739
 
 
 
12,063,692
 
 
 
25,618,154
 
 
 
515,233
 
 
 
(444,485
 
 
9,958,999
 
 
 
10,638,985
 
 
 
6,956,209
 
 
 
7,723,115
 
 
 
15,751,978
 
 
 
(5,815,104
 
 
167,783,515
 
Interest income
 
 
27,202,474
 
 
 
1,465,927
 
 
 
4,252,205
 
 
 
543,248
 
 
 
4,231
 
 
 
867,151
 
 
 
2,338,242
 
 
 
621,068
 
 
 
1,616,687
 
 
 
392,951
 
 
 
(29,675,844
 
 
9,628,340
 
Interest expense
 
 
28,164,647
 
 
 
7,176,879
 
 
 
25,691,398
 
 
 
968,299
 
 
 
113,909
 
 
 
3,342,195
 
 
 
2,333,600
 
 
 
1,325,213
 
 
 
1,735,648
 
 
 
1,971,189
 
 
 
(28,277,736
 
 
44,545,241
 
Income tax
 
 
30,378,228
 
 
 
(625,561
 
 
(1,730,068
 
 
(4,760,360
 
 
(1,721
 
 
1,427,740
 
 
 
4,141,240
 
 
 
1,728,005
 
 
 
1,674,363
 
 
 
2,785,214
 
 
 
(473,077
 
 
34,544,003
 
Equity
interest in net result
of associated companies
 
 
(5,458,577
 
 
41,642
 
 
 
32,776
 
 
 
(1,814
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
(1,143
 
 
— 
 
 
 
15,292
 
 
 
— 
 
 
 
(5,371,824
Net profit (loss) attributable to equity holders of the parent
 
 
43,053,030
 
 
 
(5,278,857
 
 
9,866,950
 
 
 
(8,101,032
 
 
(294,922
 
 
4,180,800
 
 
 
7,769,059
 
 
 
4,733,871
 
 
 
5,604,618
 
 
 
11,145,743
 
 
 
3,431,357
 
 
 
76,110,617
 
Assets by segment
 
 
1,029,618,098
 
 
 
238,216,814
 
 
 
383,653,519
 
 
 
53,570,541
 
 
 
9,187,465
 
 
 
115,103,155
 
 
 
98,293,206
 
 
 
91,976,207
 
 
 
101,862,049
 
 
 
167,594,129
 
 
 
(724,889,223
 
 
1,564,185,960
 
Plant,
property and equipment, net
 
 
46,695,107
 
 
 
150,219,598
 
 
 
150,226,089
 
 
 
21,087,810
 
 
 
4,089,689
 
 
 
53,038,210
 
 
 
30,416,383
 
 
 
42,790,489
 
 
 
35,214,165
 
 
 
86,706,171
 
 
 
(1,072,086
 
 
619,411,625
 
Revalued of assets
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
8,040,753
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
1,198,526
 
 
 
— 
 
 
 
9,239,279
 
Goodwill
 
 
26,434,428
 
 
 
215,381
 
 
 
29,437,800
 
 
 
— 
 
 
 
201,912
 
 
 
9,304,613
 
 
 
4,603,998
 
 
 
6,279,966
 
 
 
14,186,723
 
 
 
55,414,076
 
 
 
— 
 
 
 
146,078,897
 
Trademarks, net
 
 
110,950
 
 
 
87,404
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
555
 
 
 
— 
 
 
 
185,566
 
 
 
2,382,690
 
 
 
— 
 
 
 
2,767,165
 
Licenses and rights, net
 
 
10,555,645
 
 
 
92,065
 
 
 
32,446,402
 
 
 
10,603,388
 
 
 
1,017,772
 
 
 
10,227,439
 
 
 
3,180,343
 
 
 
4,660,729
 
 
 
8,593,842
 
 
 
18,520,001
 
 
 
— 
 
 
 
99,897,626
 
Investment in associated companies
 
 
19,797,046
 
 
 
586,515
 
 
 
57,133
 
 
 
993
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
19,747
 
 
 
— 
 
 
 
17,175
 
 
 
(6,098,146
 
 
14,380,463
 
Liabilities by segments
 
 
628,519,912
 
 
 
236,678,379
 
 
 
313,072,959
 
 
 
36,668,486
 
 
 
4,512,644
 
 
 
59,510,611
 
 
 
46,189,708
 
 
 
37,051,349
 
 
 
47,864,665
 
 
 
93,944,278
 
 
 
(361,529,413
 
 
1,142,483,578
 
F-
91

  
Mexico
  
Telmex
  
Brazil
  
Southern Cone
  
Colombia
  
Andean
  
Central
America
  
U.S.A. (1)
  
Caribbean
  
Europe
  
Eliminations
  
Consolidated
total
 
As of and for the year ended December 31, 2020 (in Ps.):
                                                
External revenues
  214,578,600   77,920,910   163,865,421   55,484,744   77,282,658   53,846,358   48,073,436   —     37,182,842   111,472,191   —     839,707,160 
Intersegment revenues
  17,663,525   13,668,264   4,207,466   1,220,100   352,694   88,305   121,580   —     1,440,983   —     (38,762,917  —   
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total revenues
  232,242,125   91,589,174   168,072,887   56,704,844   77,635,352   53,934,663   48,195,016   —     38,623,825   111,472,191   (38,762,917  839,707,160 
Depreciation and amortization
  24,748,756   13,341,479   41,795,397   13,095,004   14,413,760   11,447,356   14,355,899   —     7,094,331   25,593,204   (3,202,788  162,682,398 
Operating income (loss)
  70,851,525   11,204,433   25,203,504   1,877,079   15,111,947   8,698,645   4,004,501   —     6,701,086   13,159,865   (11,309,206  145,503,379 
Interest income
  21,322,406   1,479,021   2,904,430   980,581   822,447   1,049,261   1,130,767   —     1,105,420   90,746   (25,823,043  5,062,036 
Interest expense
  30,936,195   1,306,867   17,976,227   3,334,966   2,586,708   2,223,478   1,559,917   —     1,658,619   2,546,255   (25,467,747  38,661,485 
Income tax
  4,905,863   577,178   (4,442,598  992,831   2,078,789   3,115,693   1,518,953   —     2,524,214   2,234,065   4,282   13,509,270 
Equity interest in net income (loss) of associated companies
  (3,820  23,955   (2,972  (15,422  —     —     —     —     —     (288,747  —     (287,006
Net profit (loss) attributable to equity holders of the parent continues operations
  3,613,907   (1,085,038  4,963,424   1,456,062   16,579,303   4,649,047   1,919,558   —     3,294,111   7,777,426   (13,307,820  29,859,980 
Net profit (loss) attributable to equity holders of the parent discontinued operations
  —     —     —     —     —     —     —     —     —     —     —     16,992,625 
Net profit (loss) attributable to equity holders of the parent
  3,613,907   (1,085,038  4,963,424   1,456,062   16,579,303   4,649,047   1,919,558   —     3,294,111   7,777,426   3,684,805   46,852,605 
Assets by segment
  947,396,510   203,081,314   386,982,711   118,266,380   132,210,369   101,717,708   88,690,683   35,083,285   109,914,293   239,583,759   (737,878,785  1,625,048,227 
Plant, property and equipment, net
  52,117,395   110,751,083   145,307,497   62,157,797   48,876,853   36,102,261   37,855,227   1,761,595   39,128,447   82,595,077   (876,229  615,777,003 
Revalued of assets
  —     —     36,076,207   7,494,408   12,893,284   9,500,708   7,059,247   —     2,572,504   31,556,270   —     107,152,628 
Goodwill
  26,949,185   215,381   16,048,092   5,436,675   12,253,743   4,866,363   6,345,659   3,362,899   14,186,723   53,388,139   —     143,052,859 
Trademarks, net
  126,823   181,094   —     —     —     —     —     269,325   219,087   2,981,089   —     3,777,418 
Licenses and rights, net
  12,017,318   100,623   26,171,345   12,099,873   12,363,039   6,870,531   5,427,857   —     8,616,880   27,963,250   —     111,630,716 
Investment in associated companies
  51,645   613,449   64,125   (20,970  395   —     25,413   —     —     —     1,095,703   1,829,760 
Liabilities by segments
  725,408,198   193,840,756   263,989,566   61,786,265   63,610,642   53,379,366   34,252,511   33,141,315   60,839,340   138,747,621   (319,064,971  1,309,930,609 
(1)
Restated for discontinued operations.
F-
83

  
Mexico
  
Telmex
  
Brazil
  
Southern Cone
  
Colombia
  
Andean
  
Central
America
  
Caribbean
  
Europe
  
Eliminations
  
Consolidated
total
 
As of and for the year ended December 31, 2021 (in Ps.):
                                            
External revenues
 
 
225,219,719
 
 
 
87,189,642
 
 
 
148,729,232
 
 
 
62,030,033
 
 
 
79,312,071
 
 
 
52,888,323
 
 
 
48,468,386
 
 
 
37,858,979
 
 
 
113,838,486
 
 
 
—  
 
 
 
855,534,871
 
Intersegment revenues
 
 
18,041,465
 
 
 
15,237,420
 
 
 
4,044,386
 
 
 
329,000
 
 
 
360,638
 
 
 
73,828
 
 
 
98,530
 
 
 
2,069,648
 
 
 
—  
 
 
 
(40,254,915
 
 
—  
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total revenues
 
 
243,261,184
 
 
 
102,427,062
 
 
 
152,773,618
 
 
 
62,359,033
 
 
 
79,672,709
 
 
 
52,962,151
 
 
 
48,566,916
 
 
 
39,928,627
 
 
 
113,838,486
 
 
 
(40,254,915
 
 
855,534,871
 
Depreciation and amortization
 
 
25,797,791
 
 
 
12,740,332
 
 
 
40,342,871
 
 
 
14,996,243
 
 
 
15,067,211
 
 
 
11,211,523
 
 
 
11,962,486
 
 
 
6,987,129
 
 
 
27,469,463
 
 
 
(3,948,183
 
 
162,626,866
 
Operating income (loss)
 
 
77,783,972
 
 
 
21,100,316
 
 
 
21,867,457
 
 
 
2,144,825
 
 
 
15,165,356
 
 
 
7,457,802
 
 
 
8,216,945
 
 
 
8,661,475
 
 
 
13,421,147
 
 
 
(9,686,654
 
 
166,132,641
 
Interest income
 
 
14,864,242
 
 
 
758,126
 
 
 
2,104,574
 
 
 
821,594
 
 
 
431,314
 
 
 
833,540
 
 
 
269,379
 
 
 
701,785
 
 
 
116,031
 
 
 
(17,065,758
 
 
3,834,827
 
Interest expense
 
 
24,586,641
 
 
 
1,385,103
 
 
 
15,875,138
 
 
 
2,987,751
 
 
 
2,240,707
 
 
 
1,213,421
 
 
 
1,219,061
 
 
 
1,066,733
 
 
 
2,414,415
 
 
 
(16,963,658
 
 
36,025,312
 
Income tax
 
 
25,002,390
 
 
 
2,496,010
 
 
 
(9,603,701
 
 
(3,795,160
 
 
3,112,946
 
 
 
2,375,281
 
 
 
2,945,700
 
 
 
2,171,594
 
 
 
3,438,161
 
 
 
1,548
 
 
 
28,144,769
 
Equity interest in net income (loss) of associated companies
 
 
85,648
 
 
 
44,525
 
 
 
4,575
 
 
 
(19,073
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(1,757
 
 
—  
 
 
 
113,918
 
Net profit (loss) attributable to equity holders of the parent continues operations
 
 
34,195,093
 
 
 
4,594,450
 
 
 
14,185,905
 
 
 
415,994
 
 
 
5,959,563
 
 
 
4,180,473
 
 
 
4,099,930
 
 
 
5,151,166
 
 
 
8,313,018
 
 
 
(10,383,143
 
 
70,712,449
 
Net profit (loss) attributable to equity holders of the parent discontinued operations
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
121,710,718
 
Net profit (loss) attributable to equity holders of the parent
 
 
34,195,093
 
 
 
4,594,450
 
 
 
14,185,905
 
 
 
415,994
 
 
 
5,959,563
 
 
 
4,180,473
 
 
 
4,099,930
 
 
 
5,151,166
 
 
 
8,313,018
 
 
 
(10,383,143
 
 
192,423,167
 
Assets by segment
 
 
999,502,407
 
 
 
195,869,232
 
 
 
407,458,440
 
 
 
135,862,040
 
 
 
133,232,525
 
 
 
95,719,937
 
 
 
101,725,955
 
 
 
102,949,901
 
 
 
210,944,575
 
 
 
(693,615,163
 
 
1,689,649,849
 
Plant, property and equipment, net
 
 
50,420,866
 
 
 
118,056,718
 
 
 
153,607,199
 
 
 
64,864,986
 
 
 
48,888,907
 
 
 
34,395,339
 
 
 
42,407,727
 
 
 
41,601,009
 
 
 
79,764,422
 
 
 
(983,169
 
 
633,024,004
 
Revalued of assets
 
 
—  
 
 
 
—  
 
 
 
33,004,669
 
 
 
6,159,077
 
 
 
10,266,464
 
 
 
8,389,460
 
 
 
9,113,632
 
 
 
2,564,149
 
 
 
28,675,224
 
 
 
—  
 
 
 
98,172,675
 
Goodwill
 
 
26,965,618
 
 
 
215,381
 
 
 
15,335,322
 
 
 
5,191,841
 
 
 
11,685,585
 
 
 
4,688,154
 
 
 
6,002,380
 
 
 
14,186,723
 
 
 
52,307,190
 
 
 
—  
 
 
 
136,578,194
 
Trademarks, net
 
 
90,673
 
 
 
149,865
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
229,000
 
 
 
2,822,625
 
 
 
—  
 
 
 
3,292,163
 
Licenses and rights, net
 
 
11,081,972
 
 
 
129,233
 
 
 
39,620,009
 
 
 
13,791,003
 
 
 
11,384,533
 
 
 
5,502,139
 
 
 
5,220,437
 
 
 
10,847,685
 
 
 
25,709,849
 
 
 
—  
 
 
 
123,286,860
 
Investment in associated companies
 
 
4,725,279
 
 
 
522,403
 
 
 
65,699
 
 
 
(34,401
 
 
351
 
 
 
—  
 
 
 
26,348
 
 
 
—  
 
 
 
—  
 
 
 
(2,253,198
 
 
3,052,481
 
Liabilities by segments
 
 
679,954,783
 
 
 
176,177,522
 
 
 
273,655,967
 
 
 
72,702,285
 
 
 
65,631,866
 
 
 
44,676,727
 
 
 
42,823,861
 
 
 
53,885,848
 
 
 
134,357,142
 
 
 
(308,257,878
 
 
1,235,608,123
 
F-8
4

Note 24. Recently Issued Accounting Standards
New and amended standards and interpretations
The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after January 1, 2021.2023 (unless otherwise stated). The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
Interest Rate Benchmark Reform – Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 416: Lease Liability in a Sale and IFRS 16.
Leaseback
In September 2022, the IASB issued amendments to IFRS 16 to specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains.
The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments include the following practical expedients:

To require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest
To permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued
To provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component
These amendments had no impact on the consolidated financial statements of the Company. The Company intends to use the practical expedients in future periods if they become applicable.
COVID-19-Related
Rent Concessions beyond 30 June 2021 Amendments to IFRS 16
On 28 May 2020, the IASB issued
COVID-19-Related
Rent Concessions – amendment to IFRS 16 Leases. The amendments provide relief to lessees from applying IFRS 16 guidance on lease modification accountingeffective for rent concessions arising as a direct consequence of the
COVID-19
pandemic. As a practical expedient, a lessee may elect not to assess whether a
COVID-19
related rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any change in lease payments resulting from the
COVID-19
related rent concession the same way it would account for the change under IFRS 16, if the change were not a lease modification.
The amendment was intended to apply until 30 June 2021, but as the impact of the
COVID-19
pandemic is continuing, on 31 March 2021, the IASB extended the period of application of the practical expedient to 30 June 2022.
The amendment applies to annual reporting periods beginning on or after January 1, April 2021; however,2024 and must applied retrospectively to sale and leaseback transactions entered into after the Company has not received
COVID-19-related
rent concessions.
New standards, amendmentsdate of initial application of IFRS 16. Earlier application is permitted and interpretations not yet effective
that fact must be disclosed.
The new and amended standards and interpretations thatamendments are issued, but not yet effective, upexpected to the date of issuance ofhave a material impact on the Company’s consolidated financial statements are disclosed below. The Company intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.statements.
Amendments to IAS 1: Classification of Liabilities as Current or Non-current
In January 2020 and October 2022, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or
non-current.
The amendments clarify:
 
What is meant by a right to defer settlement
settlement;
That a right to defer must exist at the end of the reporting period
period;
That classification is unaffected by the likelihood that an entity will exercise its deferral right

F-8
5
right; and

That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification
classification.
In addition, a requirement has been introduced to require disclosure when a liability arising from a loan agreement is classified as non-current and the entity’s right to defer settlement is contingent on compliance with future covenants within twelve months.
The amendments are effective for annual reporting periods beginning on or after January 1, 20232024 and must be applied retrospectively. The Company is currently assessing the impact the amendments will have on current practice and whether existing loan agreements may require renegotiation; however, the amendments are not expected to have a material impact on the Company.
practice.
Reference to the Conceptual FrameworkSupplier Finance Arrangements – Amendments to IAS 7 and IFRS 37
In May 2020,2023, the IASB issued Amendmentsamendments to IAS 7 Statement of Cash Flows and IFRS 3 Business Combinations – Reference7 Financial Instruments: Disclosures to clarify the Conceptual Framework.characteristics of supplier finance arrangements and require additional disclosure of such arrangements. The disclosure requirements in the amendments are intended to replace a referenceassist users of consolidated financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to the Framework for the Preparation and Presentation of Financial Statements, issued in 1989, with a reference to the Conceptual Framework for Financial Reporting issued in March 2018 without significantly changing its requirements.
The Board also added an exception to the recognition principle of IFRS 3 to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 or IFRIC 21 Levies, if incurred separately.
At the same time, the Board decided to clarify existing guidance in IFRS 3 for contingent assets that would not be affected by replacing the reference to the Framework for the Preparation and Presentation of Financial Statements.liquidity risk.
The amendments arewill be effective for annual reporting periods beginning on or after January 1, 2022 and apply prospectively.
Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16
In May 2020, the IASB issued Property, Plant and Equipment – Proceeds before Intended Use, which prohibits entities deducting from the cost of an item of property, plant and equipment, any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The amendment is effective for annual reporting periods beginning on or after January 1, 2022 and must be applied retrospectively to items of property, plant and equipment made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment. The amendments are not expected to have a material impact on the Company.
Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37
In May 2020, the IASB issued amendments to IAS 37 to specify which costs an entity needs to include when assessing whether a contract is onerous or loss-making.
The amendments apply a “directly related cost approach”. The costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation of costs directly related to contract activities. General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract.
The amendments are effective for annual reporting periods beginning on or after January 1, 2022. The Company will apply these amendments to contracts for which it has not yet fulfilled all its obligations at the beginning of the annual reporting period in which it first applies the amendments.
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IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time adopter
As part of its 2018-2020 annual improvements to IFRS standards process, the IASB issued an amendment to IFRS 1 First-time Adoption of International Financial Reporting Standards. The amendment permits a subsidiary that elects to apply paragraph D16(a) of IFRS 1 to measure cumulative translation differences using the amounts reported by the parent, based on the parent’s date of transition to IFRS.
This amendment is also applied to an associate or joint venture that elects to apply paragraph D16(a) of IFRS 1. The amendment is effective for annual reporting periods beginning on or after January 1, 2022 with earlier2024. Early adoption permitted.
IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities
As part of its 2018-2020 annual improvements to IFRS standards process the IASB issued amendment to IFRS 9. The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf. An entity applies the amendment to financial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment.
The amendment is effective for annual reporting periods beginning on or after January 1, 2022 with earlier adoption permitted. The amendments are not expected to have a material impact on the Company.
Definition of Accounting Estimates – Amendments to IAS 8
In February 2021, the IASB issued amendments to IAS 8, in which it introduces a definition of ‘accounting estimates’. The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. Also, they clarify how entities use measurement techniques and inputs to develop accounting estimates.
The amendments are effective for annual reporting periods beginning on or after January 1, 2023 and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. Earlier application is permitted, as long as this fact isbut will need to be disclosed.
The amendments are not expected to have a material impact on the Company.
Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2
In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements, in which it provides guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.
The amendments to IAS 1 are applicable for annual periods beginning on or after January 1, 2023 with earlier application permitted. Since the amendments to the Practice Statement 2 provide non-mandatory guidance on the application of the definition of material to accounting policy information, an effective date for these amendments is not necessary.Company’s consolidated financial statements.
 
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The Enhancement and Standardization of Climate-Related Disclosures for Investors
On March 6, 2024, the Securities and Exchange Commission (SEC) issued the final rule on The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule mandates the disclosure of information regarding a registrant’s climate-related risks that have materially impacted, or are reasonably likely to have a material impact on, its business strategy, results of operations, or financial condition. On April 4, 2024, the SEC issued an order staying the rule’s enforcement. The Company is assessing the impact of this rule and the stay for disclosure to investors.
Note 25. Subsequent Events
a) On February 1, 2024, the Company issued a 10-year sustainable bond in an amount of Ps.20.0 billion and with a 10.30% coupon under its global peso notes program.
b) In February 2024, the Company reduced completely its stake in KPN. The reduction is a consequence of investors’ decision to exercise their right to exchange our exchangeable bond into KPN shares. This exchangeable bond matured on March 2, 2024. Prior to maturity, the Company received notification from all bondholders exercising their right to call the KPN shares at a strike price of €3.1185.
c) On February 13, 2024, the Company renewed its U.S.$2.5 billion revolving credit facility with a maturity in February 2029.
d) On February 20, 2024, Claro Brasil issued a R$3.0 billion CDI + 1.20% debenture maturing in 2027. At the same time, Claro Bra
s
il prepaid R$4.3 billion CDI + 1.40% debenture with a maturity in March 2024.
e) On March 15, 2024, Claro Brasil issued a R$ 2.5 billion IPCA + 5.7687% debenture maturing in 2029.
f) On March 22, 2024, The Company launched an issuance of (Global Peso Notes), registered with both the SEC in the United States of America and the CNBV in México, placing a bond of Ps. 17.5 billion, for five years, at a rate of 10.125%. This is equivalent to approximately U.S.$ 1 billion, maturing in March 2029.
g) On April 29, 2024, the Company’s shareholders approved the payment of a Ps. 0.48 (forty eight peso cents) ordinary dividend, per share, in two equal installments, to each of the shares of its capital stock series B.
h) On April 29, 2024, the Company’ shareholders approved a repurchase fund for an amount of Ps. 15 billion to be used during the period from April 2024 to April 2025, adding to such amount the buyback program fund’s balance, if any, as of such date.
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The Company is currently assessing the impact of the amendments to determine the impact they will have on the Company’s accounting policy disclosures.
25. Subsequent Events
a) In July 2020, the Company announced that its Brazilian subsidiary, Claro S.A. (“Claro”), agreed to extend and amend the binding offer submitted, jointly with Telefónica Brasil S.A. (“Telefonica”) and TIM S.A. (“TIM”), for the acquisition of the mobile business owned by Oi Group, in the amount of R
$
16,500
million. Such joint offer contemplated, additionally, the possibility of entering into long term agreements for the use of infrastructure with Oi Group. The offer was submitted by the parties, and is subject to certain conditions, including their right to make a higher bid than another offer potentially presented by a third party (“right to top”) in the competitive process of Oi Group’s mobile business sale. Therefore, Claro believes that the joint offer with TIM and Telefonica is the one that best serves the interests of current customers of Oi, as it provides long-term experience in the Brazilian market, investment capacity and technical innovation to the sector as a whole; besides being in line with current regulation. On February 9, 2022, the Company announced that Brazil’s antitrust authority had approved the sale. 
This
transaction
closed on
April 20, 2022. 
b) On March 18, 2022, the Company entered into a credit agreement providing for borrowings in an amount up to Ps.20,558,500 with a group of lenders and BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México, as administrative agent for the lenders (the “Sitios Credit Facility”). The full principal amount available under the Sitios Credit Facility was disbursed on March 23, 2022. Under this credit agreement, the Company is an initial co-borrower with Torres Latinoamérica, S.A. de C.V. (“Torres”). In connection with the spin-off (through an escisión) by the Company of certain of its telecommunications towers and other associated passive infrastructure outside of Mexico to a new company (the “Sitios Spin-off”) to be named Sitios Latinoamérica, S.A.B. de C.V. (“Sitios”), on the date on which Sitios is duly incorporated in accordance with Mexican law, pursuant to the resolutions approved by the shareholders of the Company in the extraordinary shareholders’ meeting dated as of September 29, 2021, the Company will be released from its obligations under the Sitios Credit Facility and all liabilities with respect thereto will be transferred to Sitios, and Sitios will assume all of our obligations thereunder. After such date, Torres will continue to be a co-borrower under the Sitios Credit Facility and Torres do Brasil S.A. will become a guarantor thereunder. 

c) In April 2022, the Company issued a bond for a total of U.S.$ 1 billion at a rate of 5.375% maturing in 2032. América Móvil plans to transfer, through the spin-off, the total amount of the bonds to Sitios and any obligation of the Company with respect to the Sitios notes will be extinguished. 

d) On April 14, 2022, the Company acquired a loan of 1,640.8 million reais maturing in 2023 at a rate of 13.32%.
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