Earnings Call: Q4 2019

Mar 11, 2020

Thank you. Good morning, everyone. Thanks for joining us to discuss our 4th quarter financial and operating results. We have today on the line Mr. Daniel Hajj, CEO Mr. Carlos Garcia Moreno, CFO and Mr. Osterboncauske, COO. Thanks, Daniela. Welcome, everyone. Carlos is going to make a summary of the 4th quarter results. Thank you, Daniel. Good morning, everyone. Well, with the U. S. Long term interest rate stabilizing in the 4th quarter after a sharp decline that began in February and with the stock market reaching all time highs on the back of sustained economic momentum and the set reduction in interest rates, the year ended on an improving note on the U. S. Economic front. In this context, coupled with weak but improving levels of economic activity in Latin America's larger countries, the currencies in the region generally strengthened or were stable throughout the quarter, with another exception of the Chilean peso that depreciated as a result of the social unrest in last November. We added 1,900,000 mobile postpaid subscribers with the field leading the way with 1,200,000, followed by Mexico with 242,000 and Colombia. On the fixed line platform, we gained 181,000 broadband accesses, roughly onethree of which came from Central America, with Argentina contributing 37,000 and Peru 30,000. These are countries that are just getting going on the fixed line side, and they are making good inroads. Mobile postpaid and fixed broadband continued to be the main drivers of access growth at 8.1% and 4.2%, respectively, with mobile overtaking fixed broadband for the first time in several quarters. Mobile prepaid and pay TV accesses declined 2.3% and 2.8%, respectively, while fixed accesses were down 2.2% from a year before. Our 4th quarter revenues totaled MXN 263,000,000,000, including on their other revenues, MXN 2,600,000,000 derived from the restructuring of certain amounts or on the equipment lease agreements in Mexico. Mexican peso terms, our revenues were flat year on year, reflecting the depreciation of our currency in Mexican peso that appreciated 11% against the Brazilian peso, 10% versus the Colombian peso, 14% versus the Chilean peso, 6% versus the euro and 3% versus the dollar. At constant exchange rates, service revenues actually accelerated to pace of 3.2% year on year from 2.5% in prior quarter. Excluding Argentina in these numbers because of the hyperinflationary accounting that they have, which is different from everybody else. We continue strong performance in the mobile platform and improving trends on the fixed one. 3 of our top four operations posted positive revenue growth on both fixed and mobile platforms. A year ago, only 1 did. On the IFRS 16, our EBITDA came in at the level at ARS 81,700,000,000 in the 4th quarter, corresponding to a 31.1 percent EBITDA margin. At constant exchange rates, our organic EBITDA was up 7.6%, adjusting for extraordinary items in Mexico also and in Brazil, reflecting greater operating leverage. Mobile service revenues kept picking up with their annual rate of growth hitting 5.7% from 4.6% in the 3rd quarter, whereas our fixed revenues were practically flat year on year, marking the best show in 2019 as fixed broadband growth roughly made up for revenue losses in both AmpekTV. On the mobile platform, our Brazilian operations posted a 0.6% increase, headed by continued market share gains in the posted segment. In fact, mobile posted revenues soared 21%. In the Dominican Republic, mobile service revenues were up 8.9%, in Colombia, 8.5% percent in Mexico, 7.6 percent and our European operations, 5.7%. For Mexico, all the countries mentioned before posted their best performances in more than a year, if not ever. As for fixed service revenue growth, it reached nearly 14% in Paraguay, 8 0.5% in Colombia, 7.8% in Ecuador and 4% in Peru. Postpaid mobile services became our more dynamic business segment, with growth accelerating to nearly 8% from 5.8% in prior quarter, overtaking fixed broadband services at 7.1%. Mobile prepaid services and corporate networks followed with revenue growth of 3.8% and 1.3%, respectively. We have shared double digit EBITDA growth in several countries: Peru, 22% Central America, 17% nearly 18% the U. S, 16% Colombia, 14.5% and Mexico organic, 5.9%, with Brazil expanding nearly 5% after the above mentioned adjustment. The EBITDA margins increased approximately 1 percentage point in each of Mexico, Telecom Austria, Argentina, the U. S. And Colombia with Central American Peru presenting margin increases of 4% to 5 percentage points. In Mexico, Brazil and Colombia, we continue to observe very strong mobile service revenue growth and somewhat improving trends on the fixed line segment with good advantage in EBITDA in spite of strong seasonality typical in the last quarter. We obtained ARS 44,600,000,000 operating profit that after factoring in ARS 8,000,000,000 in comprehensive financing costs helped bring about a MXN 21,000,000,000 net profit in the period, a 63.4% increase from the year earlier quarter. Our net profit was equivalent to $0.32 per share or $0.33 per year. Including capitalized obligations, our net debt at the end of the year at ARS677,000,000,000, which is ARS 7,200,000,000 lower than the end of 2018. On the prior accounting methodology, IAS 17, which excludes capitalized obligation from the debt and subtracts the lease payments from our EBITDA, our net debt to EBITDA ratio stood at 1.96x. In cash flow terms, we increased our net debt by ARS 16,000,000,000 in 2019. Shareholder distributions for the year totaled ARS 22,900,000,000, mostly by way of dividends, while acquisitions came in at ARS 25,000,000,000, basically having to do with Nextel Brazil. In addition, we reduced pension obligation by ARS 20,000,000,000 mainly in Telmex. Well, with that, I would like to give the floor back to Daniel, and I think Gerdou will begin the Q and A session. Thank you very much. Thank you, Carlos. We can start with the Q and A, please. Our first question comes from the line of Rodrigo Villanueva with Bank of America. Your line is now open. Thank you. Good morning, Daniel, Carlos, Oscar and Daniela. My first question is related to Brazil. I was wondering if you could please elaborate on the strong wireless service revenue growth of 16%. What is behind these, particularly concerning that V1 team are growing the lowtomidsingledigits? And the second question is regarding Mexico. Could you please share with us your thoughts on Telefonica's decision to turn into an MVNO? And how would you expect this to impact the competitive environment? Thank you. Well, first in Brazil, good morning, Rodrigo. In Brazil, what we have been doing in the network has been very good for our wireless subscriber the growth of the wireless that we have been having. We have been investing for the last 2, 3 years very, very, very high investments in coverage, quality, capacity, and that's been very good. And I think it's one of the things that our subscribers, customers wants at this stage. Other thing is we have a very good distribution network. We have been growing our distributors, our customer care centers, our stores. So all the distribution has been growing in Brazil. And the third one that is very important, we have been doing bundles all around. So we have been bundled fixed wireless broadband and that's what is giving us the growth in the wireless market. So I think it was very good. The last quarter, I think we have almost 50% of the gross adds of the net adds in Brazil in postpaid. So for us has been very good. In the future, I think it's also very important to notice that the Nextel purchase that we have is going to bring us all the good things that Ladies and gentlemen, this is the operator. I apologize that there will be a slight delay in today's conference. Please hold and the conference will resume momentarily. Thank you for your patience. And we are now back in the main conference. Sorry, Rodrigo. I think we have a bad connection. So what I've been saying about Brazil is with the Nextel purchase, they authorized the Nextel company and we're going to have more frequency and we have a new program of investments using these frequencies that is going to allow us to have a very good better capacity, more quality, and we are to have the best I think we're having the best network in Brazil at this stage. And for the next 2 years, we're going to improve that, Rodrigo. In Mexico, it's different in Mexico when Telefonica decides to sell their assets in Latin America, what they do in Mexico is my understanding is that they are going to stay with the 26 more important cities in Mexico, and they are going to give the rest by to be like an MVNO. Well, that's what they have been doing. You know that the market last 3 years, very competitive pricing in Mexico, and that's what we're having today. We're investing in Mexico a lot. We're investing not only in the networks. We're investing in the digital transformation. So we're making our companies more digital everywhere in the customer centers, in the sales, in the IT. So we are moving to that. And I think it's going to give us a very good advantage in Mexico for the next years, Rodrigo. Understood. Thank you very much, Daniel. Thank you. Our next question comes from Marcelo Santos with JPMorgan. Your line is open. Hi, good morning. Thanks for taking the question. Actually, two questions. The first on the Mexican wireline, I think for Q1 in several years, we have seen positive year over year evolution. We also saw you're building out more fiber. So could you please comment on the outlook for this line? Do we think we already crossed a limit where broadband is going to continue driving growth and if that should continue going forward? And the second question is regarding the if you could discuss the CapEx outlook for 2020 and the following years, please. Well, in Mexico, in the fixed line in Mexico, I think Oscar can tell us a little bit more about that. But we have been investing for the last 2 years very heavily in improving our fiber and improving our broadband. And I think it's we are getting better subscribers and it's what make it it is what is making also growth in the broadband here in Mexico. But Oscar can tell us a little bit. Yes. As you say, we've been investing in fiber in some of the cities. We've been improving and increasing the bandwidth of our customers. We launched a new set of products. 1 of them as well has included Netflix in the offering of the broadband. So I think the reception of these bundles and increase of bandwidth has been well received in the market. We are changing as well as Daniel mentioned all the system to really do a digital transformation to be more productive in the installation and the repair of the customer. So we're really focused on that market to improve revenues and of course, cost and efficiency within these products. And also in the corporate market in Right. That's another one. In enterprise, we don't see that this market only as a connectivity business. So we are getting into solution, bring some verticals to the market and has been very well received. As well as cloud services, we've been getting into that market with cloud services for the small business and for enterprise as well. And your thank you, Oscar. And your other question about CapEx, I think there's not going to be any big changes in CapEx for the next years, even that we're going to do 5 gs in some countries. We're going to start we just launched in Austria our 5 gs network last, I think, 2 weeks ago, very good presentation, very good launch. And we're going to do that all around Latin America in the second half of the year, depending where we have a spectrum, where we have how we are going to advance putting the things that we need to launch 5 gs. So, but I think we can have some countries at the end of the year also in Latin America. So that's good. And I think our target is 8 $500,000,000 on CapEx, and we don't think that we are going to change that. Perfect. Thank you very much for taking this. Thank you. Your next question comes from the line of Andres Coelho from Scotiabank. Your line is open. Yes. Thank you for taking my question. I was wondering if you could give us some color on your potential interest on the assets that Telefonica may potentially divest in Hispana America, due to some advantages in Central America. And I was wondering if you could be interested also in the other countries. And my second question is on TracFone. As you know, yesterday or on Monday, a court in the United States approved the merger between T Mobile and Sprint. I was wondering how that could impact Tracfone's operations? And also whether you could be interested in exploring extra daily options for TracFone in case Verizon or AT and T want to keep an scale advantage over the new T Mobile? Thank you. Yes, I think it's as we do last year, we purchased Guatemala and Salvador makes a lot of sense for us in market consolidation was important and allow us to buy these 2 companies. And we are open to see the rest of Latin America as always. We want to see depending on the country, depending on the how the performance that we have in each country and the consolidation and the synergies that we have, we can be interested in looking for the other assets. I think, as a Ameritamobile is always open to see these opportunities. On TracFone, well interesting. The authorization was yesterday. It takes long to have this authorization. I think it's good for the American market. And in TracFone, in TracFone, we're open to see. I think it's we're going to have another carrier for us with more capacity spectrum. And I think for us, it's good for Traccon. It's good to have all of this consolidation in the market. So we're open as always. And what I think with this carrier with more capacity, I think it's important and it's good for us to have. We have T Mobile as an important carrier as Verizon as AT and T. So for us it's good. Thank you. Very clear. Thank you. Your next question comes from the line of Juan Pablo Alba with Credit Suisse. Your line is now open. Hello, good morning. Thank you very much. My question is just if you could elaborate a little bit more in the competitive environment in Colombia and what's behind the acceleration in mobile service revenues? That's my question. Thank you. I think we have a very good quarter in Colombia. Not a very good quarter. I think we have a very good year in Colombia. And in Colombia, we have been doing very good in postpaid. So since the beginning of the year, we have been doing good in postpaid. And through the year, we have been improving in prepaid and we have been improving also in broadband and in TV. So all overall, we have a very good weak growth, our EBITDA 14.5 percent in the quarter. So it was a very good growth and starting to grow. The prepaid was the only segment where we have been not growing and starting to grow in the 4th quarter. So important as we said in Brazil and Mexico, we have been doing a lot of investments in the network, a lot of investments in the digital transformation, customer care centers in also in the commercial side. So we're focusing a lot on the operations and it's giving also very good results. We're also giving combos. It's important the combos that we're doing in that. So we are offering our wireless services to all of our broadband and mix and TV customers and vice versa we're giving to our postpaid customers, we're also offering a good combo for the fixed broadband and TV services. So And Oscar can talk a little bit. We're doing also very good on the enterprise in Colombia. Can you explain a little bit more, Oscar? Yes. As we mentioned, in Mexico, we are doing in all AMX, trying to move just from connectivity in enterprise to value added services. And particularly in Colombia, we've been winning a very large project with a full integrated proposition that not only include the network, includes security, cloud services, backup, individual LTE networks for the customer. So it's a bundle and a range of products that brings more revenues above the connectivity. And in Colombia, we've been winning very large projects as well. Jason, other thing that I have not mentioned that we have a big project costing cutting cost in all the operations that we have through Latin America. So cutting costs has been one of the priorities that we have been doing and it's also giving us good results. So we have been very specific in each of the things that we are spending and each of the things that we are doing. So that has revenue coming revenue with all the investments that we're having. So cutting costs has been something important for America Movil through 2019, and we need to do it through this year also. Thank you very much. Your next question comes from Carlos Leguera with GBM. Your line is open. Hi, thank you. Good morning. In terms of profitability, I think you have mentioned you expect improvements in Mexico and Brazil of around 100 to 200 basis points per year. Is that something we can continue to expect into 2020? Well, yes, it's what we're expecting and what we want to have in this year. So we want to still expand our profitability through all our subsidiaries in America. America. Okay. Thank you. And so you said also regarding the CapEx level for the year around 8,500,000,000 dollars that does exclude any spectrum acquisitions, right? So we could see some higher level due to that. Yes, yes. It's 8.5% plus 5%, less 5%, including some spectrum depending, I don't know specifically if in Brazil they are going to auction the spectrum this year. But all overall, the rest of the countries, I don't expect to have big amounts of spendings in the spectrum. That's helpful. Thank you. Thank you. Our next question comes from Carlos Valera with BTG Pactual. Your line is open. Hi, good morning. So I have two questions, please. One, AMX has €3,000,000,000 in bonds due now in May 2020. And my understanding is that these bonds can be paid or partially paid using the 16% stake AMX as in KPN. My question is, do you plan to use this year to retire or partially retire these bonds? And my second question is on it's a follow-up question on broadband in Mexico. Can you help us with the number of FTTH homes passed in Mexico and also the number of FTTH clients you have today, please? Thank you. Okay. On the bonds, the bonds you're referring to are bonds that have effectively a warrant attached. It's a call option on KPN stock. The call option today is very much out of the money. So it is unlikely that the option will be exercised. It's highly unlikely. So that means that if the option is not exercised, then it's just like a regular bond. And like any regular bond, it will be paid at maturity. So that's what I can tell on the bond. As for the other question? For the other question, in Mexico, I think I don't have the data specific data here. But what we have a lot of fiber in Mexico, and we're putting more fiber this year and next year. So we have a good project good projects to put more fiber all around. And the last mile, it's easy for us to put it's easy, not easy. It's so if we have the house past households, so we are going to bridge to we have that advantage to move and give the last mile to our and to more and to more bandwidth to all our customers. And we're going to give specific services, as Oscar said, Netflix and others. We're going to bundle those services. We have more than 300 1,000 kilometers of urban fiber in Mexico. Okay. Thank you very much. Thank you. Our next question comes from Gilberto Garcia with Barclays. Your line is now open. Hi, good morning. Thank you for the call. My question is on the fine that was imposed on you by the Mexican regulator. I understand there might be a limit to what you can say given that this is an ongoing legal process. But can you give us some color on how do you view the prospects of a quick resolution and how this impacts your plans for eventually offering pay TV in Mexico? Thank you. Well, on the fine on Mexico, I think IFT imposed a fine on our subsidiary Telenor for an alleged breach of obligations related to the ability for third parties of data regarding its infrastructure. And what we can say is we will challenge the fine due to the lack of due process and it's really is totally disproportionate to allocate this bridge. So it doesn't make any sense this fine. So that's we're going to elect this one, okay? And given the law requires that you comply with all the measures to get a pay TV license, Is it fair to assume that this is likely to delay that process? No, I don't think so. I don't think so. Okay, understood. Thank you very much. Thank you. Your next question comes from the line of Vitor Tomita with Goldman Sachs. Your line is open. Hi, good morning all and congratulations on the results. So two quick questions on our side. First, following up on Rodita's question on the Brazilian mobile space, could you give us some color on the integration process for Nextel Brazil and on whether this has already affected revenue and EBITDA in Brazil this quarter to some extent? And a second question on our side also related to Brazil is whether you could give us an updated view on how you are viewing a potential consolidation in Brazil involving Oi? Thank you. Well, on Nextel, Nextel was authorized at the end of last year, and I think we are starting the process of integrating the company. So we have very good subscribers, especially in Sao Paulo and Rio. We have good frequencies. And in the network side, we are going to start the consolidation of all the networks. So we're going to choose which is the best part of the networks, and we're going to make all the synergies and consolidate that. So it's going to program, a specific program and we are ready to start to make all the synergies and the consolidation in NEXTEL. In Oi, I think we are open to see the OE assets and we are in that process, involved in that process. And of course, we are interested in checking and being inside the process of the sale of there. I think what they are selling right now is the mobile assets or the mobile subscribers or the mobile company of Oi and we are open and we are inside that process. Perfect. Very clear. Thank you. Thanks. Your next question comes from Walter Piecyk with LightShed. Your line is open. Thanks. Carlos, can you talk about thoughts on share repurchase for 2020 now that you've exited the year this way? And then also, Daniel, can you talk about the U. S. Market a little bit? Obviously, there was a big change given the approval of the transaction. Boost, who's a very highly rated prepaid operator, is now going to DISH. Does it change your strategy? Are you do you still have an interest in staying in the market with TracFone? And just general thoughts there, have you had any discussions with DISH in terms of maybe selling or partnering or attempting to use the MVNO that they have secured from T Mobile? Thanks. I think in the U. S. Market with this authorization, T Mobile and Sprint, I think we have a lot of options and we're open to review all the options. I think Boost going to DISH and DISH is going to have a special, let's say, agreement with T Mobile about pricing and reselling the network. I think it's interesting. I think it's interesting. I think we have also direct contact with T Mobile is our carrier, So we're doing and we're the MVNO of also of T Mobile. So it's also interesting. We have also Verizon and we have also AT and T. So we're open. I think things are going to move in the U. S. And we are going to be very very aware. It's on top of what is going on than that. For us, Trac Phone is a very important company. We're doing very well. We have a very good last year, and I think that gave us opportunity to improve TracFone. And the repurchase, Carlos? Yes. On the share buyback, well, as we've been consistently saying, we the main target of America Movil is reaching 1.5 times net debt to EBITDA. We postponed a little bit reaching the target because of the equity in our reach. We will be very close to it by the end of this year. So we wouldn't begin to do any major distribution, but we have shared buybacks until after we have reached our priority, which is the leverage at 1.5 times, let's say, to it. Your next question comes from the line of Rodrigo Villanueva with Bank of America. Your line is now open. Yes. Thank you, Daniel, Carlo. Just another question regarding the U. S. Operations. You mentioned in the release that you have seen declining costs on airtime and this is something that boosted EBITDA margin by around 100 basis points year on year. So basically, my question is if this is something that should be sustainable going forward? Thank you. I think it's a little bit seasonal. At the end of the day, what we do in TracFone is we do our budget. Specifically, we have a budget for this year and we do it. I think with all of the things that are happening in the U. S, we have a good opportunity to reduce a little bit more the cost that we have. Of course, it's going to be more competition, it's going to be more capacity in the network. So we can reduce that. In the other side, I don't know how the prices are also going to be a little bit more competitive, I think so, in the prepaid side. So but overall, I think it's a good opportunity, Rodrigo. We don't have nothing right now. I think what we see is good opportunities all around. I think for TracFone it's good that this merger goes through, I think that give us more opportunity to be in the market and to have better pricing to offer to our customers. Understood, Daniel. Thank you very much. Thank you. Your next question comes from the line of Alejandro Galaustra with BBVA. Your line is now open. Hi, good morning. My first question is regarding the $2,600,000,000 revenues, net revenues that you posted in Mexico regarding the equipment lease agreements. Just wondering if we should see any more of diesel revenues in the future and also wondering what was the margin of these revenues in the quarter? And then also in regarding margins, but in Brazil, just wondering about the future expansion of profitability in Brazil. Tell me about the source of this expansion, if it should come mostly from digitalization or if it should also come from further integration of your platforms, meaning Net Servisios, Claro and Retail? Thank you. We couldn't hear your first question clearly. Can you please repeat the question on Mexico? In Mexico, in Brazil, we more or less understand what you are asking, but in Mexico, I don't understand your question. Sure. The question in Mexico was regarding the other revenues, the MXN 2,600,000,000 in other revenues that you posted in the quarter. Just wondering, is regarding the revenues, regarding the equipment lease agreements, just wondering if we should see more revenues of this kind in the future and also wondering what was the margin of these revenues in the quarter? On the Mexico part, what I can tell you, this is a completely one off. It has something to do with, as I said, a restructuring of a specific agreement that have been almost defaulted on. And it's basically what we are generating is a one off booking of revenues that are generated and account receivable, okay? So you should not expect something like this going forward. And on Brazil, well, we have been working all the synergies. I think we have another one that is Nextel, and we're working on that. But what I can tell you that at least we're going to have 100 basis points of increase in margin in Brazil like we hope so and depends a lot on how those the market behave. But our budget, our strategy is to increase our margin at least 100 basis points. So that's what we have. And in the commercial side, as you see, we're doing very good. In the cost cutting also, we're putting a lot of pressure to the cost cutting side. And on the digitalization of the company, we're also doing very good. So all overall, I think Brazil the momentum today and we think we can still have that momentum for all this year. Thank you, Daniel and Carlos. Can you give us an idea of what was the margin of these other revenues in Mexico, or the ARS 2,600,000,000 went to the EBITDA line? ARS 2,600,000,000. ARS 2,600,000,000. ARS 2,600,000,000. ARS 2,600,000,000. ARS 2,600,000,000. ARS 2,600,000,000. ARS 2,600,000,000. ARS 2,600,000,000. The margin of the MXN 6,000,000,000, we don't have it right now, but if you could talk to Daniela, we can give it to you. I don't think it's a high margin. It's not going to be a high margin. Thank you. Okay, great. Thank you. Thank you. Your next question comes from Sara Maldonado with Santander Sigh. Your line is open. Sure. Just on the general cost cutting program that you are mentioning, what's the amount in dollars or margin basis points expected for 2020? And the second one, the other thing that you said, the positive investment in Mexico, what is the, for example, the year on year growth that you're expecting for Mexico's CapEx, not the breakdown, just the year on year growth? I don't think in the mobile side, I think it's going to be more or less the same CapEx that we have last year in Mexico. We're not going to grow that. In the peak side, I think we're going to make more fiber to the home and more home passes and that. In Mexico, in the other side, in the wireless, we're going to go to more rural areas. So we're going to have more coverage. We're going to try to give more coverage to more population in Mexico. So that's one of the biggest strategies that we're having in mobile, but it's inside all over all the CapEx that we have. So the rural coverage plus the virtualization of the network plus more fiber plus a little bit of 5 gs all overall is inside the CapEx that we have for this year, plus all the fiber that we have in Telmex. So that's what we have for this year. Sure. And the amount for the cost cutting program? Well, I don't have the amount for this year. Still, we're working on that, but we don't have any specific amount of Huazfa Nabi and we don't disclose that also. So we don't have it and we don't disclose that. Great. Very, very useful. Thank you. Thank you. Our next question comes from Valentin Mendoza with Barnard. Your line is open. Hi. Good morning to everyone. Thank you for taking my questions. I have a couple, if I may. The first one has to do with having a confirmation that both Mexico and Brazil are being considered for launching 5 gs during the second half of this year. As you mentioned, you've been doing some in some countries in LatAm. And the second question has to do with the CapEx allocation towards having 5 gs launch in this scope for the year. Thank you. In Mexico, yes, I think we're going to launch in the end of this year. In Brazil, we still don't know because there's going to be the options spectrum. We don't know exactly when those spectrum. But in Brazil, we're working and on all the network, the virtualization and to prepare the network. So when we have the spectrum, we could be ready to launch, not a big launch, but to launch 5 gs. We have 4.5 gs in Mexico and in gs in Mexico and in Brazil and it's working very good. We have very good speeds. So we are okay with that. And the CapEx allocation, well, we never give allocation on CapEx in each country. What we can say is that we're going to spend the €8,500,000,000 this year, and I think that's more or less what we have now. Okay. Thank you very much. That amount is going to give us for fiber in Mexico, fiber in Colombia, fiber in Brazil, well fiber all around because we're doing also fiber in Central America. Austria, we're doing fiber in Austria a lot and we are also virtualizing the network, digital transforming the digital transformation that we have capacity more coverage in wireless. So it covers everything more in some countries than in other ones depending what we need more in each country. But that's something that we make the decisions that we're making here. That was crystal clear. Thank you very much. Thank you. There are no further questions at this time. I will turn the call over to Mr. Daniel Haj for final remarks. Well, thank you everyone for being in the call and thank you Carlos, Oscar and Daniela. Thank you very much. This concludes today's conference call. You may now disconnect.