Thank you for joining us today to discuss our third quarter results. We have today on the line, Mr. Daniel Hajj, CEO, Mr. Carlos García Moreno, CFO, and Mr. Oscar Von Hauske, COO.
Thank you, Daniela. Welcome to the third quarter results. Carlos is going to make a summary of the report.
Thank you, Daniel. Good morning, everyone. Well, following the massive monetary and fiscal stimulus introduced throughout the world since the advent of the pandemic, the third quarter saw a rebound in economic activity in most countries in our region of operation, and little of the volatility that was present in the prior two quarters.
With the exception of the Brazilian real, which continued to deteriorate with the dollar, the main currencies in Latin America did not see much change over the period. As confinement measures began to be lifted toward the end of the second quarter, an improving trend became apparent on commercial activity. We added 3.2 million wireless subscribers, 1.1 million of them postpaid, and 1.4 million prepaid. Brazil led the way in terms of postpaid growth after adding 1.8 million subscribers, followed by Mexico with 241,000 and Colombia with 102,000.
In the second quarter, we had lost 500,000 postpaid. As for the prepaid gains, Mexico gained the most with 1.2 million, with Colombia and Ecuador contributing approximately 300,000 each, Peru 237,000 and Dominicana 129,000. We recovered several of the prepaid subscribers that we disconnected in the second quarter as mobility was restricted and making recharging difficult. In the fixed line segment, we gained 446,000 new broadband clients, with every operation in Latin posting an increase in accesses. Only Austria and Croatia, among all our operations, presented disconnections. Colombia and Mexico led the way with over 100,000 accesses each. In Mexico's case, it doubled those of the prior quarter. Altogether, mobile postpaid and fixed broadband remain our main areas of access growth, with the former increasing 5.7% year-on-year and the latter 5.2%.
Our prepaid sub base is still down 3.2% from a year before, while fixed voice and pay TV accesses are falling at around 4% each. Our third quarter revenues rose 4.7% in Mexican peso terms from a year before, to reach MXN 260 billion as service revenues expanded 5.4%. At constant exchange rates, service revenues were up 1.5%, roughly twice as fast as in the preceding quarter, on the back of continued strong performance of fixed voice and revenues and with recovery of mobile prepaid revenues, those most affected in the prior quarter in the midst of the lockdown measures implemented throughout Latin America. Mobile service revenues accelerated to 3.5% from 2.3% in the second quarter, while fixed-line service revenues maintained a 1.4% pace of decline.
Across our operations, voice MOUs rose 11%, while mobile data per user was up 41%, all of which resulted in a 5% increase in mobile ARPU at constant exchange rates. Mobile service revenues were buoyed by prepaid revenues, which rose to 2.5% from -2% the prior quarter, while postpaid revenues decelerated somewhat to just under 5% year-over-year. Equipment revenues bounced back sharply as we moved on to a more forceful commercial activity. The continued decline in fixed-line revenues took place as the gains observed in fixed broadband revenues from a pace of + 7.3% to one of + 9.1%, were offset by new revenue losses in fixed line voice and pay TV revenues. EBITDA was up 10% in the third quarter from the year earlier quarter to MXN 85.5 billion as the EBITDA margin remained at 33.2%.
At constant exchange rates, EBITDA increased 7.2%, more than twice as fast as it had in the preceding quarter, with Puerto Rico, Mexico, and Dominicana posting important advances. Mexico's improved from -10% in the second quarter to +1.3%, while Dominicana's increased from -5.5% to +5.8%, an 11 percentage points swing in both cases. It's important just to note that both countries have a high share of prepaid clients. Our EBITDA margin, 33.2%, was 1.6 percentage points higher than in the year earlier quarter. Our operating profit shot up 18% to MXN 45 billion and was the driver of a 45% increase in our net income, which totaled MXN 19 billion.
Our operating cash flow totaled MXN 164 billion and allowed us to cover our capital expenditures, which amounted to MXN 91 billion, and to reduce financial and labor obligations in the amount of MXN 62 billion, including a MXN 47 billion reduction in our net debt. Our capital expenditures in the period were directed to securing adequate capacity in our networks and maintaining good quality of service.
At the end of September, our net debt to EBITDA ratio stood at 1.38 x under IAS 17, slightly less than at the end of June. All throughout this year, and in spite of movements in foreign exchange rates, we have kept our leverage ratio at or below 1.19 x all over the year. Looking at Mexico, fixed revenue bounced back to +1.1% from a -4% decline in the second quarter, with fixed voice revenues accelerating to 6% from 2%.
On the back of the above, EBITDA recovered sharply from a 10% plunge in the second quarter to + 1.3%. As for Brazil, postpaid revenues continued to excel, posting a 9% increase from the year before, with prepaid revenues rising 5%, the same pace they had shown prior to the pandemic. On the fixed line platform, broadband revenues continued to perform well, expanding 6.8% and maintaining a stable trend, while the decline in pay TV revenues accelerated to - 13.6%.
Colombia was the only country where service revenues expanded on both the mobile and the fixed line platform in the third quarter, almost at the same pace in each one. Both prepaid and postpaid revenues expanded at rates similar to those seen in the first quarter, where fixed voice revenues remained at a 15% growth pace and pay TV revenues continued to accelerate to 10%.
EBITDA increased 3.4% in the quarter on the strength of the revenue increases and the reduced need to provide for past due collections. Regarding Austria, both fixed and mobile revenues declined slightly. The latter brought down by reduced roaming revenues, attuned to the country's write-off on account of the pandemic. In spite of the above, the company's adjusted EBITDA before restructuring showed up 4.7% on reduced interconnection and roaming charges, as well as savings on several other fronts. Well, with this, I would like to conclude this introduction. I will pass the floor back to Daniel Hajj. Thank you.
Thank you, Carlos. We can start the Q&A.
Your first question comes from line of Rodrigo Villanueva of Bank of America. Your line is open.
Hi. Thank you. Good morning. Can you hear me well?
Yes.
Perfect. Thank you.
Yes.
My first question, thank you very much. My first question is if there's any update that you can share with us regarding the potential alternatives to create value from your towers. Anything related to timing, amount of towers, or type of transaction would be very helpful. Thank you.
Hi, Rodrigo. Well, what we have been saying on the tower transaction, that we have around 60,000 towers in América Móvil, and we're working on the regulatory, on the legal to see what is the best thing to do. We have 15 countries, so in every country is different. We're working on that, and we're analyzing what's the best way to give value to the tower. We have nothing concrete to say right now, but we're working hard and to have that as soon as possible.
Understood, Daniel. Thank you very much. Secondly, the Mexican government appears to be willing to raise the price for spectrum, particularly in frequencies expected to be used for 5G purposes. I was wondering if you could share with us how relevant this is for AMX and if there's anything that you can do to prevent this from happening. Thank you.
Well, we have been following that discussion in the Congress, in the Senate. We are not agree on that. I think they shouldn't raise any on the spectrum. It's very expensive right now, and the only thing that they are going to do is to delay 5G, if they are going to do that, or increase prices in the other side. Mexico at this time is at the highest levels of spectrum. We're paying a lot of money, and we are not agree on that. We're following the discussions. We don't know what it's going to end on. What they are saying is that they want to increase the 800 MHz frequencies, what they have been in discussion. We don't know exactly what it's going to end on, but we are unfavorable. We don't think that's a good idea.
Understood, Daniel. Thank you very much.
Thank you.
Your next question comes from Diego Aragao of Goldman Sachs. Your line is open.
Yes. Good morning, everybody. Thank you for taking my question. I have just two short questions about Brazil. First, if you can please share your expectations about M&A in the country. You signed an agreement with TIM and Vivo, so if you can just provide an overview about the next steps and your expectations in the mobile space. Secondly, if you can also share your expectations regarding 5G, the spectrum auction, that apparently it should occur in the beginning of next year. If you can share anything on this topic, that would be great. Thank you.
On Brazil, first of all, I think we have a very good quarter in Brazil. It's still growing very good on postpaid subscribers and also in prepaid. The revenue in our wireless operations are doing very good. In broadband, we're also doing excellent in Brazil. On Oi, I think we feel that the final auction will be before end of the year. We don't know exactly the dates, but we feel that's going to be before the end of the year.
The spectrum for 5G, I'm hearing rumors that they said that it's going to be in the first quarter of next year, as you are saying. Other one said that in the middle of next year. We don't know exactly when we're going to have the auction. Right now in Brazil, we have very small amount of our network in 5G.
We are already launched 5G in a very small town part in Brazil. We are moving on that direction, and I think next year, you're going to see that we're going to have 5G there. In the other side, with the Nextel purchase, we already integrate the company. We do a very good integration, and we have doing very well on wireless gaining postpaid market share every quarter. That's more or less what we have been doing in Brazil. In the other side, we have been cutting costs all around Latin America. Also in Brazil, we are trying to be a more digital company. It's saving a lot of costs over there. We're working on that direction and putting money and a lot of work on that.
Thank you. That's very helpful. Just a follow-up on the postpaid in Brazil, because it's moving to be quite strong. What we're curious to understand, where are those customers coming from? Do you feel is this still a trend of prepaid shifting to postpaid, or do you believe that you are gaining share from competitors? Thank you.
I think there's a lot of our prepaid moving to postpaid, of course, that's something. Prepaid from other companies moving to postpaid, and also postpaid from other companies moving. We have a very good network, and we have been showing that for the last year. That's been very good.
Okay. Thank you.
You can see in number portability, we're gaining more than any other company. That's where we're getting all these postpaid subscribers.
Perfect. Thank you.
Thank you.
Your next question comes from line of Arturo Langa of Itaú BBA. Your line is open.
Hi. Good morning. Thank you for taking my question. I would just like to get your thoughts on your intention to reduce debt, maybe potentially the sale of towers in South America will help. If the intention is still to reach 1.5 x net debt EBITDA, and if so, how can we think about cash distribution to shareholders once AMX reach of this level? Is the intention still to create a distribution to shareholders? If so, what level of yield do you have in mind? What mechanism maybe to show that up? That would be my first question. My second question is related to Colombia, how you see the arrival of WOM in the country, and specifically, would you be interested in offering roaming services to WOM, like you did for them in Chile? Those are the next two questions. Thank you.
Okay. Well, on the first question, I think with the sale of TracFone to Verizon, by the time it closes, that alone should bring us down to 1.5 x net debt to EBITDA. Whatever is obtained from the disposal of the towers, if then there's a disposal of some kind, that would be something that would further reduce our leverage. I'd say that in addition to this, we have a strong cash flow, and we are expecting for this cash flow to remain well into this next year, the next couple of years. I think from a leverage standpoint.
We feel that we are in very good shape. This is something that the rating agencies, that we're very much in touch with, have ratified to all. We are in very good shape financially. We think it's important, particularly in times of so much economic uncertainty, and we are living through today, to navigate with a lighter load of debt than would normally be the case. I think that it's important. Again, given the uncertainty, it pays to be somewhat more conservative on the financial structure of the company. Can you repeat the second question, please?
Yes. Sorry, Daniel. I just recalled on the arrival of WOM into Colombia, they have big obligations in terms of network rollout. It's in discussion right now if there could be actually be a roaming agreement, which you might be willing to provide. You guys did offer roaming agreements to WOM in Chile. I was just wondering what your thoughts on the arrival of WOM into Colombia are, and how you will manage that.
I think we know WOM. As you said, they are in Chile, and they are aggressive. We have been preparing the company for maybe all these years. We're putting more capacity, and we're working to be prepared when WOM starts. That's something that nothing else I can say that we like to compete, and we're going to compete in Colombia. Also, it's Tigo and Movistar over there. We haven't had any roaming agreement until now with WOM, if that's your question. We haven't had anything there. They haven't done anything with us. We're working. You know that we gained the spectrum in Colombia, and we're working to build all the investments that we need to do and to put the capacity and the network in the small towns that they require. We are doing very well in Colombia.
We are growing in postpaid, growing in prepaid, growing in TV, growing in broadband. We're really doing very well there. We have a converged platform, and Oscar can talk a little bit more on what we have been doing in Colombia.
Thank you. Yes, as you mentioned, we are a fully integrated company in Colombia. We've been doing quite well on mobile, but more in the convergence. We deliver all the set of products, so fixed broadband, fixed line, and mobile, pay TV in different flavors. As well, we start three years ago, focused on enterprise and all the cloud services that we deliver there. We are more a telco integrated solution that has only connectivity, and we've been really successful in that market on an enterprise.
It's going to be more competition, but we feel that we're in a very good position.
Understood. I appreciate your answer. Thank you.
Thank you.
Your next question comes from the line of Walter Piecyk of LightShed. Your line is open.
Thanks, Daniel. The trend for ARPU has been pretty positive since 2017. I understand that some of that is postpaid, prepaid mix, clearly, LTE usage has certainly had an impact. Obviously, COVID gave you a little bit of a headwind last couple of quarters. When you're looking at 2021, assuming we have some type of COVID recovery, at least health-wise, but maybe not economically, do you think that across your markets, especially the big ones, that you can get back to ARPU growth?
Two additional questions as it relates to that, which is, can you give us an update on what is the mix of LTE traffic today and a capital CapEx outlook, because your CapEx looks like it is down a lot this year. Is there going to be a return to CapEx investment based on some of this LTE growth? Thank you.
What we have been seeing in these two things are very important with the pandemic. The pandemic show us that our networks are really strong. We handle all the traffic in all the countries that we need. People move from offices to houses, and then a lot more in houses, in the broadband, in wireless, in Wi-Fi. They see a lot more TV. All these trends looks very good in our network. We have a very strong network, and that's because the last three years, we have been investing a lot on that. As the focus on photonics, in the backbones, in the last mile. That's very important, and we're very happy. We have been doing a lot of testings all around Latin America, and we have been the best network in most, or maybe all of the country.
We have been doing very good on that. That's very important. Other thing that what happens during the pandemic is that it accelerates a lot the digital for payments, for shopping, for studying, for everything. It looks like people is going to use more and more on that. I don't know what is going to happen on 2021, but what I can tell you is that people is using a lot more telecom. Telecom has becoming more and more important every day. With this lockdown, accelerate a lot in the digital side. We're doing that. On the CapEx, I'm going to talk a little bit about the CapEx this year. I think the CapEx is going to end reducing maybe 30%, 25%-30%. We're going to reduce the CapEx from our original CapEx this year.
Also because execution, because in the lockdown was very difficult to execute. Also because we take out some projects that we don't need, and maybe we're going to delay that. We're working right now to see what's going to be the CapEx for next year. I still don't know what will be the CapEx, but the CapEx of this year is going to be around $6 billion instead of the $8.5 billion that we have there. That's more or less what we have. Part execution because of the lockdown, other ones because we delay some projects that we don't think or we don't need at this moment.
That's a pretty big decline. It didn't seem like usage declined that much, at a minimum, shouldn't you think that CapEx I know you don't want to give a CapEx guidance for 2021 now, if you're down that much this year, should it at least be flat in 2021? Would it be reasonable to assume that?
To compare with this year or compare with our original CapEx?
When I look at 2021, if it's $6 billion this year, I would assume that at a minimum, it's going to be flat, if not up in 2021 from that level.
From that level, it's going to be higher, of course. It's going to be higher.
Okay.
We're working. I don't want to advance anything, but it's going to be higher than this year.
Maybe not at the $8 billion from 2018 and 2019. I got it. Okay.
Okay.
Thank you, Daniel. Okay, thanks.
Well, other thing that has been really interesting is that, while there's a lot of suppliers that are helping and reducing prices and moving with new technologies, there is a lot that we have been doing there. Also it's helping us on that. What I can tell you right now, very important, that with this $6 billion, we haven't lose anything. We have a lot of capacity, very good quality. In the commercial side, in the variable CapEx, that it's 100% done what we need. We're not stopping anything on that. That's important. We're not going to stop growth, we're not going to stop capacity, we're not going to stop quality. We're not going to stop, very important, all the digital things that we're doing in the company. That's very important.
Just one quick follow-up, Daniel, and I apologize for the third question, but it's related. When you say execution, does that mean you're using different radio vendors like Fujitsu or Airspan or whoever rather than the traditional guys? Or is it just that pricing is coming down from the Nokia, Ericsson, and Huawei of the world?
Well, it's new vendors plus, maybe not in radio, but in other things, there are new people entering in some of the new technology. Radio is a very small part of our CapEx. It's a lot on backbones, a lot of photonics, a lot on digital.
Fiber
fiber. There's a lot of things in the CapEx. It's not only radio. core virtualization. It's a lot of things related to CapEx.
Thank you very much.
Thank you.
Your next question comes from the line of Marcelo Santos of JP Morgan. Your line is open.
Hi, good morning. Thanks for taking the question. There are two, actually. The first is about the pickup in broadband adds in Mexico. Just wonder if you could talk a bit about the sources. You mentioned the agreements with OTTs, but also is there some demand from COVID coming in? What do you think about the sustainability of this higher growth in broadband? The second question is about Brazilian weakness in the fixed line, which you comment is more on pay TV. Is it limited to DTH? Is also suffering cable? What's the outlook here? How much more of decline could we have on the DTH? Thank you.
Your first question around the Mexico broadband, what we've been doing is upgrading all the speeds of our customers. We have been keeping the loyalty from our customers. Another thing is that we've been migrating from copper to fiber as soon as we can within the market. The third one is that we launched a new set of packages that includes several add-ons with the program, and I think it has been very well received on the market. There is a pickup, as you mentioned, around the COVID. All the people working from homes need more speed. There is more people connected to the network. That's another thing that happens. Not only Mexico, we see this in all the countries. On the Brazilian side, as you know, pay TV is decreasing the revenues, as Carlos mentioned, 13%.
What we see is that when you look at the total market, the total market is decreasing in Brazil. There is a downgrading in some of the customers given the economic condition in Brazil. What we are doing is to develop a new set of products that is more like an entertainment hub, moving just the pay TV, regular pay TV. We believe that included add-ons and more functionality to the pay TV, we could stabilize that revenue in the near future.
Thank you.
Okay.
Thank you.
Thank you very much.
Your next question comes from the line of Cesar Medina of Morgan Stanley. Your line is open.
Hi. Thanks for taking my call. I have two questions related to your deleveraging process. One is, other than the towers that you're working on, how should we think about other stakes? As in, for instance, there's been news regarding KPN. Once you reach to that 1.5 level, what next? Should we expect distribution to shareholders, buyback dividends, more on that front? Appreciate your thoughts on that. Thank you.
Well, first on your question on KPN. We know this Swedish private equity fund that is the rumor over there is we don't know nothing. We know that from the media, so we don't know what is going to happen there. Of course, there's going to be consolidation in Europe, but we don't know nothing about that.
I think as regards, as we have the KPN shares listed as disposable for sale, financial disposable for sale, it is reflected as a marketable security. They are indeed marketable security, that would not change our net debt. Okay. Even potential divestment of the KPN stake wouldn't have any impact on the levers. As I was pointing out, I think we have on the one hand, the cash flow that is providing us ample room to reduce debt as we have done so far this year. I mentioned nearly MXN 50 billion cash reduction of net debt. We expect by the time the TracFone transaction closes, we expect to receive initially $6.3 billion. That already would take us a long way to 1.5x or even below 1.5x net debt to EBITDA.
As I was saying, I think these days are days of great uncertainty in the world. I don't know if you're familiar with the latest IMF forecast for the world, but basically, we have several countries not coming back to where they were in 2019 until two or three or four years from now. Okay? I think this is still, in some ways, the early part of this COVID-related crisis, and we think it pays to remain conservative and to, as I was saying, to navigate with a lighter load of debt. It's easier when things are uncertain. That's what I would say to you.
Great. Thank you.
Thank you.
Your next question comes from the line of Carlos Sequeira of BTG Pactual. Your line is open.
Thank you. Good morning, everybody. My question is, does AMX have any plans to overlay its coaxial cable network in Brazil with fiber and fiber to the home technologies? I know you have a big cable network operation there, and I was just wondering if you have any plans to overlay it at some point. Thank you.
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Yes. Do you want me to make the question again? I can do it again.
Sorry. Yeah.
My question is, if AMX has any plans to overlay its coaxial cable network in Brazil with fiber or fiber to the home technologies, if not now, at some point in time. How you see the cable network in Brazil versus the possibility of upgrading to fiber? Thank you.
Well, as you know, in Brazil we have a HFC network. What we've been doing is to upgrade those networks to DOCSIS 3.1. Since two years ago, all the new cities that we got into that, we got with fiber. We have a composite already with fiber, with GPON. We believe that DOCSIS 3.1 will deliver the speed that we need for the market need in the next years. All the new cities, we will build fiber to the home. Of course, there is a lot of room where we don't have network, and we are analyzing how to approach those markets in the future.
Okay. Thank you.
Again, if you'd like to ask a question over the phone lines, please press Star then one on your telephone keypad. Your next question comes from the line of Chelsea Colón of Aegon. Your line is open.
Hi, thank you for taking my questions. I was just wondering if you could provide a little bit more color around the performance in Chile. I'm just wondering, how much of this performance do you think is due to competition in the market versus the effects of the pandemic? If you could also just remind us of what technology you have on the mobile and fixed side in Chile.
You're talking about Chile?
Yes.
No, no. In Chile, we have the same technology in mobile that we have all around Latin America. We have 2G, 3G. No 2G, no. I think it's almost zero, but 3G and 4G and 4.5G. That's the technology that we have. In fixed, we also have fiber to the home. What we need in Chile is doing a little bit more difficult on the country. The lockdowns have been on and off, and we need to improve there.
I think we are putting and execute better. We are working on that and hope that we are going to see a better results in the next year. It's not something about technology. I think we are well prepared on the technology, very good also in mobile, in fixed, in corporate also, data centers we have. We need to execute a little bit better.
The market is also very difficult there. Prices have been going down. That's nothing else to say. We need to execute better.
What is your exposure to the SME segment in Chile?
What is the what? Sorry, we don't hear you.
Your exposure to SMEs in Chile.
I think we're in a good position, but Oscar can talk a little bit about what we're doing on the corporate side in the small and medium enterprise also.
Sure. Small business is excellent segment in the market, what we've been seeing in small business that these enterprise are looking for more digitalization, more cloud services, more applications. They do not have enough to help them to get online, to have a store in the digital world. What we've been doing is bundle all these products and services to deliver to the small business.
On enterprise, if you look at the change of value from the connectivity to the end of the chain, you have connectivity, then you have security, you have data centers, you have business analytics, you have artificial intelligence, then you have vertical. What we are offering on both markets is a fully integrated solution in the market. Not only keep us on connectivity, we want to bring value to the customers to improve their productivity or increase revenues.
It's more business-oriented proposal, not only connectivity. We've been working with setting up all this portfolio within the two years ago. I think we've been very well accepted in the market more as an aggregator than only connectivity.
Thank you.
Thank you.
Your next question comes from the line of Marie Azevedo of Santander.
Hi, everyone. Thank you for the call. Congratulations for the strong numbers. I have two questions. The first one is a follow-up on the question on CapEx. Do you think that network sharing, Open RAN, and those initiatives can also help the optimization of CapEx? How much do you expect to spend with 5G spectrum in 2020 and 2021? The second question is about a trend about monetizing subscriber base, and some of the companies are talking about digital wallets, and you launched some initiatives of using prepaid credits as digital wallets. How big is that opportunity in LatAm? Thank you very much.
Well, I think, in terms of 5G, I don't have a number on how much we're going to invest on 5G next year. We're going to have 5G in some of the countries next year. It's going to depend a lot on the spectrum. Let's say when Brazil is going to launch the spectrum, when those other countries are going to launch some spectrum, another one who already have the spectrum. We're working in 5G, and we can have 5G, launch 5G in some countries next year. We have that. Network sharing, I think network sharing helps, but it helps in some places. I'm not a fan of network sharing, let's say, in big cities, by an example, okay?
In big cities, you are always investing more new technologies, a lot of capacity, and then you have to grow the capacity and put more and more because of the usage. Network sharing in rural areas where the growth is not so big or in places where you need more coverage than a lot of capacity, I think it's a very good idea. I mean, that's the way we feel and what we think is important. Of course, network sharing is a good idea, but depending where and with whom you put it. Okay? That's what we feel. On the wallet, Oscar can talk a little bit what we have on digital wallet.
Yes. We've developed a product around digital wallet. It's called Claro Pay. The functionality that is within the Claro Pay is that you could cash in or cash out different sources from credit cards or from deposit. As you know, in Latin American countries, there is a lot of use of cash. Getting into that, to digitalize that interaction should be great. It's an application that is an assistant that they use the usage of cash. As well, you could pay certified services like a telephone to recharge the prepaid mobile phone. We are in the process of personal banking right now. We are developing more functionality, but we are ready to go with Claro Pay product.
Very well.
Okay. Thank you very much.
Welcome.
There are no further questions at this time. I hand the call over to Mr. Daniel Hajj.
I just thank everyone for being in the call. Thank you very much. Bye-bye.
This concludes today's conference call. You may now disconnect.