Thank you. Good morning, everyone. Thanks for joining us to discuss our fourth quarter financial and operating results. We have today on the line Mr. Daniel Hajj, CEO, Mr. Carlos García Moreno, CFO, and Mr. Óscar Von Hauske, COO.
Thanks, Daniela. Welcome everyone. Carlos is going to make a summary of the fourth quarter results.
Thank you, Daniel. Well, with the U.S. long-term interest rate stabilizing in the fourth 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 Fed 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 the notable exception of the Chilean peso that depreciated as a result of the social unrest in last November. We added 1.9 million mobile postpaid subscribers, with Brazil leading the way with 1.2 million, followed by Mexico with 242,000 and Colombia.
On the fixed line platform, we gained 181,000 broadband accesses, roughly one-third 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, they are making good inroads. Mobile postpaid and fixed broadband continue 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 post accesses were down 2.2% from a year before. Our fourth quarter revenues totaled MXN 263 billion, including under other revenues, MXN 2.6 billion derived from the restructuring of certain amounts owed under equipment lease agreements in Mexico.
In Mexican peso terms, our revenues were flat year-on-year, reflecting the depreciation of our currency, the Mexican peso, that appreciated 11% against the Brazilian real, 10% versus the Colombian peso, 14% versus the Chilean peso, 6% versus the euro, and 3% versus the U.S. dollar. At constant exchange rates, service revenues actually accelerated to pace of 3.2% year-on-year from 2.5% the prior quarter. I'm 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. three of our top four operations posted positive revenue growth on both fixed and mobile platforms. A year ago, only one did. On the IFRS 16, our EBITDA came in at MXN 81.7 billion in the fourth quarter, corresponding to a 31.1% EBITDA margin.
At constant exchange rates, our organic EBITDA was up 7.6%, adjusting for extraordinary items in Mexico, Austria, and in Brazil, reflecting greater operating leverage. Mobile service revenues kept picking up with the annual rate of growth hitting 5.7% from 4.6% in the third quarter, whereas our fixed revenues were practically flat year-on-year, marking their best show in 2019 as fixed broadband growth roughly made up for revenue losses in voice and pay TV. On the mobile platform, our Brazilian operations posted a 6.6% increase, driven by continued market share gains in the postpaid segment. In fact, mobile postpaid revenues soared 21%. In the Dominican Republic, mobile service revenues were up 8.9%, in Colombia, 8.5%, in Mexico, 7.6%, and our European operations, 5.7%. Say, 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 14% in Paraguay, 8.5% in Colombia, 7.8% in Ecuador, and 4% in Peru. Postpaid mobile services became our more dynamic business segment, with growth accelerating to 8% from 5.8% the 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 observed double-digit EBITDA growth in several countries. Peru, 22%, Central America, 17%, 18%, the U.S., 16%, Colombia, 14.5%, and Mexico organic, 5.9%, with Brazil expanding 5% after the above-mentioned adjustment. The EBITDA margins increased approximately one percentage point in each of Mexico, Telekom Austria, Argentina, the U.S., and Colombia, with Central America and Peru presenting margin increases of four to five 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 advances in EBITDA in spite of strong seasonality typical of the last quarter. We obtained MXN 44.6 billion of earning profit that after factoring in MXN 8 billion in comprehensive financing costs, helped bring about a MXN 21 billion net profit in the period, a 63.4% increase from the year earlier quarter. Our net profit was equivalent to MXN 0.32 per share, or $0.33 per ADR. Including capitalized obligations, our net debt at the end of the year, MXN 677 billion, which is MXN 7.32 billion lower than at the end of 2018.
On the prior accounting methodology, IAS 17, which excludes capitalized obligations from the debt and subtracts the lease payments from our EBITDA, our net debt to EBITDA ratio stood at 1.96 times. In cash flow terms, we increased our net debt by MXN 16 billion in 2019. Shareholder distributions for the year totaled MXN 22.9 billion, mostly by way of dividends, while acquisitions came in at MXN 25 billion, basically having to do with Nextel Brazil. In addition, we reduced pension obligations by MXN 20 billion, mainly in Telmex. With that, I would like to give the floor back to Daniel, and I think they will begin the Q&A session. Thank you very much.
Thank you, Carlos. We can start with the Q&A please.
At this time, I would like to remind everyone, in order to ask a question, please press star, then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster. 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, Óscar, 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 this, particularly considering that Vivo are growing only low to mid single digits? The second question is regarding Mexico. Could you please share with us your thoughts on Telefónica's decision to turn into an MVNO? 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 the growth of the wireless that we have been having. We have been investing for the last two, three years, very high investments in coverage, quality, capacity, that's been very good. I think it's one of the things that our subscribers, customers want 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. All the distribution has been growing in Brazil. The third one that is very important, we have been doing bundles all around. We have been bundle fixed, wireless, broadband, that's what is giving us the growth in the wireless market. 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. 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 other good things.
Ladies and gentlemen, this is the operator. I apologize, there will be a slight delay in today's conference. Please hold, and the conference will resume momentarily. Thank you for your patience. We're now back in the main conference.
Sorry, Rodrigo. I think we have a bad connection. 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're going to have the best network in Brazil at this stage, and for the next two years, we're going to improve that, Rodrigo. In Mexico, it's different. In Mexico, when Telefónica 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 to be like an MVNO. That's what they have been doing.
You know that the market in Mexico is very competitive and prices are low. We have been having low prices for the last three 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. We're making our companies more digital everywhere in the customer centers, in the sales, in the IT. 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 J.P. Morgan. Your line is open.
Hi. Good morning. Thanks for taking the question. Actually, two questions. The first on the Mexican wireline, I think for the first quarter in several years, we have seen a positive year-over-year evolution. We also saw you're building out more fiber. Could you please comment on the outlook for this line? Do you think we already crossed a limit where broadband is going to continue driving growth, and if that should continue going forward?
Sure.
The second question is regarding the, if you could, discuss the CapEx outlook for 2020 in the following years, please.
In Mexico, in the fixed line in Mexico, I think Óscar can tell us a little bit more about that. We have been investing for the last two years very heavily in improving our fiber and improving our broadband. I think we are getting better subscribers, and it is what is making us grow in the broadband here in Mexico. Óscar can tell us a little bit.
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. One of them as well has included Netflix in the offering of the broadband. I think the reception of these bundles and the increase of bandwidth has been well-received in the market. We are changing as well, as Daniel mentioned, all the systems to really do a digital transformation to be more productive in the installation and the repair of the customer. We are really focused on that market, to improve revenues and of course, cost and efficiency within these products.
Also in the corporate market.
Right. That's another one. In enterprise, we don't see this market only as a connectivity business. We are getting into solution, bringing some verticals to the market, and has been very well-received. Cloud services. We've been getting into that market with cloud services for small business and for enterprise as well.
Thank you, Óscar. Your other question about CapEx, I think there's not going to be any big changes in CapEx for the next years, given that we're going to do 5G in some countries. We're going to start. We just launched in Austria our 5G network last, I think, two weeks ago. Very good presentation, very good launch. We're going to do that all around Latin America in the second half of the year, depending where we have a spectrum, how we are going to advance putting the things that we need to launch 5G. I think we can have some countries at the end of the year also in Latin America. That's good. I think our target is MXN 8.5 billion on CapEx, and we don't think that we are going to change that.
Perfect. Thank you very much for the answers.
Thank you.
Your next question comes from the line of Andres Coello 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 Telefónica may potentially divest in Hispanoamérica. You took some advantages in Central America, and I was wondering if you could be interested also in the other countries. 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, and I was wondering how that could impact TracFone's operations, and also whether you could be interested in exploring strategy options for TracFone in case Verizon or AT&T want to keep a scale advantage over the new T-Mobile. Thank you.
Yes, I think as we do last year, we purchased Guatemala and El Salvador. Makes a lot of sense for us. Market consolidation was important and allow us to buy these two companies. We are open to see the rest of Latin America as always. We want to see, depending on the country, depending on 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 América Móvil is always open to see these opportunities. On TracFone, we're interesting. The authorization was yesterday. It takes long to have this authorization. I think it's good for the U.S. market. In TracFone, we're open to see. I think we're going to have another carrier for us, with more capacity, spectrum, and I think for us, it's good for TracFone.
It's good to have all of this consolidation in the market. 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&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. In Colombia, we have been doing very good in postpaid. Since the beginning of the year, we have been doing good in postpaid. Through the year, we have been improving in prepaid, and we have been improving also in broadband and in TV. All overall, we have a very good growth. Our EBITDA, 14.5% in the quarter. 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 fourth quarter.
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, also in the commercial side. We're focusing a lot on the operations, and it's giving us very good results now. We're also giving combos. It's important the combos that we're doing in that. We are offering our wireless services to all of our broadband and fixed and TV customers. Vice versa, we're giving to our postpaid customers. We're also offering a good combo for the fixed broadband and TV services.
Enterprise.
Óscar can talk a little bit. We're doing also very good on the enterprise in Colombia. Can you explain a little bit more, Óscar?
Yes. As we mentioned in Mexico, we are doing all AMX trying to move just from connectivity in enterprise to value-added services. Particularly in Colombia, we've been winning very large projects with a fully integrated proposition that not only include the network, includes security, cloud services, backup, individual LTE networks for the customer. It's a bundle and a range of products that brings more revenues above the connectivity. In Colombia, we've been winning very large projects as well.
Another thing that I have not mentioned, that we have a big project cutting costs in all the operations that we have through Latin America. Cutting costs has been one of the priorities that we have been doing, and it's also giving us good results. We have been very specific in each of the things that we're spending and each of the things that we're doing. That has a coming revenue with all the investments that we're having. Cutting costs has been something important for América Móvil through 2019, and we need to do it through this year also.
Thank you very much.
Your next question comes from Carlos de Legarreta 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 basis points-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. We want to still expand our profitability through all our subsidiaries in America.
Okay, thank you.
Thank you.
You said also regarding the CapEx level for the year, around MXN 8.5 billion. That does exclude any spectrum acquisitions, right? We could see some higher level due to that.
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 side.
That's helpful. Thank you.
Thank you.
Our next question comes from Carlos Sequeira with BTG Pactual. Your line is open.
Hi. Good morning. I have two questions, please. One, AMX has €3 billion in bonds due now in May 2020. My understanding is that these bonds can be paid or partially paid using the 16% stake AMX has in KPN. My question is, do you plan to use this year to retire or partially retire these bonds? My second question, 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 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. It is unlikely that the option will be exercised. It's highly unlikely. 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. That's what I can tell on the bonds. As for the other question?
For the other question, in Mexico, I don't have the specific data here. We have a lot of fiber in Mexico, and we're putting more fiber this year and next year. We have good projects to put more fiber all around. The last mile, it's easy for us to put. It's easy, not easy. If we have the passed households, so we have that advantage to move and give the last mile to our customers. We are prepared. In the fixed line, we're investing. In Telmex, we are investing to give, as Óscar said, more fiber, more broadband, and more bandwidth to all our customers. We're going to give specific services, as Óscar said, Netflix and others, we're going to bundle those services.
Right.
We have more than 300,000 km 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. Can you give us some color on how you view the prospects of a quick resolution and how this impacts your plans for eventually offering pay TV in Mexico? Thank you.
On the fine on Mexico, I think IFT imposed a fine on our subsidiary, Telnor, for an alleged breach of obligations related to the ability for third parties of data regarding its infrastructure. What we can say is we will challenge the fine due to the lack of due process, and it's really totally disproportionate to allocate this breach. Doesn't make any sense, this fine. We're going to elect this one. Okay?
Given that 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.
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. Two quick questions on our side. First, following up on Rodrigo'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? 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.
On Nextel was authorized at the end of last year, and I think we are starting the process of integrating the company. We have very good subscribers, especially in São Paulo and Rio. We have good frequencies. In the network side, we're going to start the consolidation of all the networks. We're going to choose which is the best part of the networks, and we are going to make all the synergies and consolidate that. It's going to take us maybe six months to one year to see the results. We have 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 Oi assets.
We are involved in that process, and of course, we are interested in checking and being inside the process of the sale of 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 Partners. 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? 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? Do you still have an interest in staying in the market with TracFone? Just general thought 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. Now, 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 we have also direct contact with T-Mobile is our carrier, so we're doing, and we're the MVNO also of T-Mobile, so it's also interesting. We have also Verizon, and we have also AT&T. We're open. I think things are going to move in the U.S., and we are going to be very very aware. On top of what is going on. That, for us, TracFone 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. The repurchase, Carlos.
Yeah. Walter, on the share buyback goal, as we've been consistently saying, the main target of América Móvil is reaching 1.5 times net debt to EBITDA. We postponed a little bit reaching the target because of the acquisitions last year. We expect that it will be within our reach, or we will be very close to it by the end of this year. We wouldn't begin to do any major distributions, but we have share buybacks until after we have reached our priority, which is the leverage at 1.5 times net debt to EBITDA.
Understood. Thank you very much.
Thank you.
Thank you.
Thank you.
Your next question comes from the line of Rodrigo Villanueva with Bank of America. Your line is now open.
Yes. Thank you. Daniel, Carlos, just another question regarding the U.S. operations. You mentioned in the release that you have seen declining costs on air time, this is something that boosted EBITDA margin by around 100 basis points year-on-year. 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. All 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 How should I say.
Merger
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 Gallostra with BBVA. Your line is now open.
Hi. Good morning. Call. My first question is regarding the MXN 2.6 billion revenues. Those revenues that you posted in Mexico regarding the equipment lease agreements. Just wondering if we should see any more of these sort of revenues in the future, and also wondering what was the margin of these revenues in the quarter. Also regarding margins, but in Brazil, just wondering about the future expansion of profitability in Brazil. Just wondering 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 Serviços, Claro and Embratel. Thank you.
Alejandro, 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're asking, but in Mexico, I don't understand your question.
Sure. Sure. The question in Mexico was regarding the other revenues, the MXN 2.6 billion in other revenues that you posted in the quarter. Just wondering regarding the revenues, regarding the equipment and lease agreements. Just wondering if we should see more revenues of this kind in the future. 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 had been almost defaulted on. It's basically what we are generating is a one-off booking of revenues that are generated and account receivable. Okay. You should not expect something like this going forward.
On Brazil, well, we have been working in all the synergies. I think we have another one that is Nextel, and we're working on that. What I can tell you that at least we were going to have 100 basis points of increase in margin in Brazil. We hope so, and depends a lot on how does the market behave. Our budget, our strategy is to increase our margin at least 100 basis points. That's what we have. 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. On the digitalization of the company, we're also doing very good. All overall, I think Brazil has the momentum today, and we think we can still have that momentum for all this year.
Thank you, Daniel, Carlos. Can you give us an idea what was the margin of these other revenues in Mexico? All the MXN 2.6 billion went to the EBITDA line.
revenue, the margin.
Correct.
The margin of the MXN 6 billion, 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 Sarah Maldonado with Centro Desai. 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? 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, 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 fixed 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. We're going to have more coverage. We're going to try to give more coverage to more population in Mexico. That's one of the big strategies that we're having in mobile. It's inside all overall the CapEx that we have. The rural coverage plus the virtualization of the network, plus more fiber, plus by a little bit of 5G, all overall is inside the CapEx that we have for this year.
All the fiber that we have in Telmex. That's what we have for this year.
Sure. The amount for the cost-cutting program?
Well, I don't have the amount for this year. Still, we are working on that, but we don't have any specific amount of what's going to be, and we don't disclose that also. We don't have it, and we don't disclose that.
Great. Very useful.
Thank you.
Thank you.
Our next question comes from Valentín Mendoza with Banorte. 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 5G during the second half of this year. As you mentioned, you've been doing in some countries in LatAm. The second question has to do with the CapEx allocation towards having 5G launch in the scope of 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 auction spectrum. We don't know exactly when the spectrum, but in Brazil, we're working 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 5G. We have 4.5G in Mexico and in Brazil, and it's working very good. We have very good speeds. We are okay with that. The CapEx allocation, well, we never give allocation on CapEx in each country. What we can say is that we're going to spend MXN 8.5 billion 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. Fiber all around because we're doing also fiber in Central America. Austria, we're doing fiber in Austria also a lot, and we are also virtualizing the network, the digital transformation that we have capacity, more coverage in wireless. It covers everything, more in some countries than in other ones, depending what we need more in each country. That's something that we're 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 Hajj for final remarks.
Thank you everyone for being in the call, and thank you, Carlos, Óscar, and Daniela. Thank you very much.
Thank you.
This concludes today's conference call. You may now disconnect.