Good morning. My name is Juan, and I will be your conference operator today. At this time, I would like to welcome everyone to the América Móvil fourth quarter 2021 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. Now I will turn the call to Ms. Daniela Lecuona, Head of Investor Relations. Please, Ms. Daniela, go ahead.
Thank you. Good morning, everyone. Thanks for joining us today to discuss our fourth quarter operating and financial results. We have on the line Mr. Daniel Hajj, CEO, Mr. Carlos García Moreno, CFO, and Mr. Óscar Von Hauske, COO.
Thank you, Daniela. Good morning, everyone. Carlos is gonna make a summary of the fourth quarter results. Please.
Thank you, Daniela. Good morning, everyone. Throughout the fourth quarter, concerns about the rising inflation rates across the board kept financial markets alert about the policy implications, with 10-year treasury yields moving around in a relatively wide band of 5 basis points, but ending the quarter very much where they had started at about 1.5%. Notwithstanding the volatility in interest rates, equity markets continued to advance with the S&P 500 delivering a 10% increase in the quarter. In our region of operation, the Mexican peso, the Colombian peso, and the Chilean peso all experienced bouts of volatility in the second half of November, with the former recovering fully by the end of the year and the other ones depreciating further.
In the fourth quarter, we added 4.8 million wireless subscribers, including 2.2 million postpaid clients and 2.5 million prepaid subs. Brazil contributed approximately half of our postpaid additions, followed by Colombia with 357,000 and Chile and Peru with close to 200,000 each. As in the prior quarter, Mexico provided most of the new prepaid clients, 1.2 million, with Colombia contributing 349,000 clients, and Central America and Argentina approximately 300,000 each. Fourth quarter revenue totaled MXN 227 billion, a 7.7% year-on-year increase, with service revenue expanding 5.4% to MXN 180 billion. The consolidated figures mentioned above, and those that will be referenced later exclude TracFone as it has been deemed to be a discontinued operation.
They also exclude Argentina, as we have done for several quarters, given the hyperinflation observed in the country. At constant exchange rates, service revenue growth came in at 4.4%, a fairly similar rate to the 4.6% one posted the prior quarter. The Mexican peso appreciated versus most other currencies in our region of operation on an annual basis and depreciated slightly, 1%, versus the US dollar. The percent growth of mobile service revenue stayed roughly constant in the quarter at 6.9%, while that of fixed line service revenues declined relative to that of the prior quarter to 0.5%. On the mobile platform, postpaid revenue expanded 5.9%, practically at the same pace as in the previous quarter, while prepaid revenue growth accelerated to 8.7%.
Several operations, including Peru, Puerto Rico, Eastern Europe, Dominican Republic, Mexico, and Brazil, experienced brisk mobile service revenue growth between 8% and 12%, with Austria posting a 10% increase. On the fixed line platform, revenue growth from corporate networks accelerated to 6.8%, and that from broadband services slowed down to 4%. Both continued the trends followed throughout the year. Fixed line voice revenue growth continued to decline, although at a slower pace than seen previously, whereas pay TV revenue kept on declining roughly at the same rhythm as observed in prior quarters. Our Eastern European operations and Peru observed the fastest revenue growth in fixed line services with 13% and 11% respectively. They were followed by Colombia and the Dominican Republic with 10% and 6%.
The decline in Puerto Rico's revenue was due to the suspension of funding provided by the government associated with the pandemic. Within fixed line services, broadband revenue climbed 19% and 17% in Dominican Republic and Peru. Ecuador, Puerto Rico, Eastern Europe, and Central America all posted revenue growth of between 6%-9%. EBITDA came in at MXN 89.8 billion in the quarter. This figure reflects one-off items, including the impact of the sale of towers by Telmex. Our adjusted EBITDA was up 7.7% year-on-year, slightly more than the 7.2% increase observed in the third quarter.
The Dominican Republic, Central America, and Europe exhibited the fastest pace of EBITDA growth at 12.4%, 11%, and 9.7% respectively, with Mexico and Colombia posting 8% growth rates, and Ecuador 7.2%. Practically all the operations saw increases in their margins.
Our adjusted operating profit reached MXN 41 billion and was up 20% in Mexican peso terms, and 15% at constant exchange rates. This helped generate, after accounting for MXN 19 billion in associated financial costs, a net profit from continuing operations of MXN 23 billion. The net profit obtained for both the operation of TracFone on June 18, November, and the sale itself is booked under the line item of net income from discontinued operations. It totals MXN 113 billion. Together with the net income of our continuing operations, it resulted in a net profit of MXN 136 billion in the fourth quarter. For the full year 2021, our net income stood at MXN 196 billion, an amount more than four times larger than the one observed the previous year.
In 2021, our operating cash flow and the proceeds from the sale of TracFone, net from Mexican taxes paid in December, allowed us to fund MXN 170 billion of capital expenditures, MXN 62 billion in net shareholder distributions, and to reduce our net debt by MXN 128 billion in flow terms. Excluding leases, our net debt ended the year at MXN 400 billion, a MXN 137 billion reduction from the level outstanding at the end of 2020. Net debt excluding leases was equivalent to 1.3x EBITDA after leases at the close of 2021 EBITDA. In our net debt calculation, we're considering as cash equivalent on the securities available for sale, stock received from Verizon as part of the payment for TracFone. At the end of the year, the value of the Verizon stock was MXN 62 billion.
Also booked on the same line item is the KPN stock we own, valued at MXN 56 billion. With this, somebody would like to pass the floor back to Daniel for Q&A.
Thank you, Carlos. We can start the Q&A.
Thank you. If you would like to ask a question, please press star followed by one on your telephone keypads now. Your first question comes from Leonardo Olmos from UBS. Please, Leonardo, your line is now open.
Hello, everyone. Good morning, good afternoon. My first question is related to 5G CapEx, specifically about the spectrum options that are already booking in 2021, as far as I understood. Can you disclose a bit the breakdown between the spectrum options that you booked in 2021, and please confirm if the total amount was $1.1 billion. Thank you.
Yes. Good morning. On the CapEx of 2021, on the spectrum CapEx, I don't remember exactly, but it was around $800 million in Brazil, and then some more in Mexico, a little bit more in Peru. Yes, it's around $1.1 billion on the spectrum that we have in 2021. Mostly was in Brazil, $800 million.
Crystal clear. Thank you very much. My follow-up question, also on 5G. Can you discuss what you expect for 2022, 2023? You don't need to be specific on numbers, but mostly what countries do you expect to deploy, what overall spectrum options that are expected for this year? Thank you.
I think we mostly have a spectrum in all the countries in Latin America. We expect to launch. I can tell you in 90% of the places where we operate in 2022. The CapEx that we're gonna spend in 5G, as we told in previous calls, we have been investing in virtualization, we have been investing in a lot of fiber to the node virtualization. We're not gonna put any more CapEx than what we planned this year, $8 billion, and it's 5G included, and we're gonna launch 90% of the countries. Overall, I can tell you that that's more or less what we have. It's gonna be all around this year.
I don't have a specific date, but it's all over the year where we're gonna launch. We hope we can do it in the first semester of this year, mostly. Colombia is the only one that we don't have a spectrum. We hope that the government would speed up that option. I think it's important to have 5G all the countries where we operate. We're ready. We have been doing investments as in Colombia also with the fiber to the node, fiber to the cell site, virtualize the network, the switches. We're ready. In 2022, we're gonna have almost all the countries.
We have modernized all our cell sites through the last 5 years, so in all the countries we have 3G, 4G, 4.5G, and ready to have 5G also. No more CapEx than what we.
Very good.
No more CapEx than what we have been saying. The $8 billion on CapEx this year, it's included all the 5G launch.
Okay. Glad to see the plans are winning. Thank you very much. Have a good day.
Thank you. Thank you very much.
Thank you. Our next question comes from Walter Piecyk from LightShed Partners. Please, Walter, your line is now open.
Thanks. Can you just give us a sense on what your plans are for the Verizon shares that you received as a part of the closing of the transaction?
Well, we don't have any plans today. I think there are five products and dividend deals in Verizon. Until right now, we don't have any plan. We don't have any lockup on the shares, so any time that we want to sell, we can sell. Right now, we're gonna maintain the shares and decide in the near future.
Okay. Just to go back to the CapEx question. I think if we just looked at, like, the network equipment of CapEx in, I think in 2021, if you excluded spectrum, it was about a little over MXN 7 billion, and in 2020, it was about MXN 6 billion. You just, Daniel talked about the eight for this year. I assume that's all network CapEx. Is this just kind of a rising trend because your overall business is growing, or is this kind of residual 5G, so that when we look out to the years of 2023 or 2024, that we might return to the capital spending levels that you did in 2020, of MXN 6 billion?
No, I think with the numbers that you give me, what we have is that in 2020, because of the pandemic and COVID-19.
Yeah
The CapEx reduced to $6 billion instead of being $8 billion. We have been having $8 billion for a long time, maybe since 2018 or 2017, like $8 billion on CapEx, including spectrum. In some years, we have more spectrum than infrastructure. In other years, we have more infrastructure than spectrum. We're doing also some fiber to the home, virtualization, as we said, modernizing and digitalizing. We are digitalizing a lot of our equipment. That's the CapEx that we have been saying that we're gonna do, and that's what we have also for this year.
Okay. Then just one last one, if you don't mind. If you looked at the equipment revenue, basically it appears that there's some supply constraint, perhaps, in getting phones to sell to customers. Is that the case? Is it that their customers are not upgrading their phones? If it is supply constraints, what's the outlook for that over the course of 2022 to get more supply to sell more phones?
In 2021, we have problems with the supply of the phones, shortages, and there's no doubt that there was shortages all around the world. We have that in Mexico and Latin America. Still, I think for the first and second quarter, I think things are getting better. I can tell you that things are getting better. We're having more supply. This a little bit different because the supply is good in the high-end handsets, but the supply in the mid and low, it's a little bit more, we have more shortages over there in this segment.
I think what the people is saying and the brands that are making handsets, what they are saying is that in the second half of this year, they are gonna be more normalized on the production of their handsets. That's what we're hearing.
Okay. Thank you.
Thank you.
Thank you. Our next question comes from Fred Mendes from Bank of America. Please, Fred, your line is now open.
Hello, good morning, everyone. Thanks for the call. I have two questions as well. I mean, the first one, I think the performance from Telmex was quite strong. Just trying to make sense of the numbers here. According to IFT, they say that around 40% of your connections, they are already on fiber. Just want to double-check this number to see if it makes sense. If you have something like a target for number of connections in fiber for 2022. That'll be my first question. Then my second question: As you expand your FTTH network, it makes sense that margins in Mexico, there is some significant room for improvement. Thank you.
I think, as you said, Telmex do well, and they are gonna do better. We're putting more FTTH in Mexico. People is changing. We're increasing speeds. We're doing bundles. Óscar can quickly give a better explanation, no?
Yeah. As you mentioned, Telmex has been, you know, improving the Fiber to the home. Last year, we did a lot of migration from copper to fiber.
We already have 52% of the customer base connected with fiber, and we will continue to do so next year. We want to speed up the migration from copper to fiber. We are doing a new CapEx with fiber this year. We believe that we will migrate copper to fiber this year more rapidly than the year before. Another thing is that the enterprise market in terms it has been developed quite well. It is not only based on connectivity. We are adding a lot of value services like cloud services, vertical services, security, and that business is going to be good in terms.
Thank you, Óscar. Thank you, Daniel. Very clear. If I just to go check 52% already of the connections are on fiber. If I may follow up, if there's a difference in terms of margins between the clients you have on fiber. I'm assuming you charge a little bit more versus the client that you have on copper. Thank you.
Yeah. Always like to upsell, you know, the customer base. The competitive landscape is based on the speeds. Even we are increasing the speeds with the same ARPU that we have in order to protect the customer base. Now we launch one Gb speed that is a better price in the market. Let's see what is the reaction in the market to this kind of product.
Just to answer your question, I think it's to have the customers more on fiber. I think it's more efficient. It should increase a little bit the margin, depending on the ARPU and what Óscar said. Operations, I think it's more efficient to have fiber than copper. As we put more fiber, then we're gonna take out copper.
Yeah.
I think it's much more efficient, so.
The OpEx in fiber.
The OpEx in fiber is cheaper, is less than the OpEx in copper.
One more thing, just to complement Daniel. What Óscar was saying about the revenue in the corporate segment is very important. What we call the corporate networks line item has had its best quarter in Mexico, also by the way in Brazil, in at least five quarters. Okay. Just to give you an idea. In Mexico, revenues from corporate networks increased 5.5%. And in Brazil, it's about 9.6% as well. In both Mexico and Brazil, corporate networks are doing really well.
Yeah. Thank you.
Perfect. Thank you very much, Daniel, Carlos and Óscar. Very clear.
Thank you.
Thank you.
Thank you. Our next question comes from Marcelo Santos, from JP Morgan. Please, Marcelo, your line is now open.
Hi. Good morning. Thanks for taking my questions. I have two. The first one is on Colombia. Could you please expand a little bit more on the positive performance with accelerating EBITDA despite the increased competitive pressure? That's the first question. The second question is on Brazilian broadband. We see at least from Anatel data that América Móvil seems to continue to lose broadband subscribers. How do you see these trends going forward, and do you think the new plans will lead to a reversion? What could you talk about that? Thank you.
Well, I'm gonna start on Brazil, and Óscar can complement a little bit of what I'm gonna say. I think still we are the leaders in broadband, and we are the leaders in ultra broadband. As everybody knows, the market in Brazil is very competitive. A lot of new entrants and a lot of new fiber. We do fiber, like 2 million fiber to the home, new ones. We're gonna do 3 million this year. So we're gonna have more coverage, and we're gonna, I think we're gonna grow against broadband. And we're doing a lot of things. I think the market, the trends market, everything is changing in Brazil, and we're changing. So we're gonna do more on distribution. We're gonna do more packages.
We already launched one gig to any customer that they want and more customer support. We're doing a lot more things as the market is changing, so we are also moving and doing more things, including more fiber in places where we are not. I don't know, Óscar, if you have anything else.
No. As you say, we already upgraded the copper network to deliver 1 Gb speed nationwide. In all the new cities we are deploying fiber. We aim close to 4 million homes passed with fiber. We will do 3 million more this year in fiber to the home. That, and secondly, in the market, we see the product as a bundle. The combos that we have, and as well the fixed and mobile convergence is another thing that we add, and we think that we add value to our customer base. Also, as Daniel said, the market has been changing and has become very competitive with a lot of fiber across the different regions.
That's what we see that with these changes on the commercial forces attacking the market we will see that we could start growing again. We are the leaders in ultra-broadband as well.
Yes.
We've been doing so many years. As Carlos mentioned, in fixed, on enterprise, we are doing pretty well in Brazil. In the first year that we grow in enterprise since many years back. Similar to Mexico, we are adding different value to the connectivity, cloud services, vertical services. It's the first time that we grew in the enterprise in Brazil many years back, in Brazil. Moving to Colombia, what I can say in Colombia, I think we have a extraordinary quarter, very good quarter in Colombia. We have been doing very good on the corporate side. We have been doing awfully excellent also in the broadband peaks and TV, we're growing very good.
We are competing with these new entrants in the market in prepaid and postpaid. We have the best quality, I think. The brand is excellent brand. People is preferring to stay and to go with Claro. We have also very good customer care centers, distribution in all the streets. We do convergence. We have a lot of our base already in fourth play. In Colombia, we have been doing very good on all the operations. I don't think that people is happy only with price. In these times, people want coverage, people want convergence, people want quality, customer care, a good network, good TV. We are offering everything in Colombia.
I think we have been doing good and the results in Colombia are very good.
Perfect. Thank you very much. Very clear.
Thank you.
Thank you. Our next question comes from Gilberto García from Barclays. Please, Gilberto, your line is now open.
Hello, good morning, and thank you for the call. You had a rather strong performance in prepaid in Mexico and postpaid in Brazil. Can you comment on what is driving the divergence in these two markets?
Well, they're two different markets and the people thinks different. Also in Mexico, since the pandemic, people prefer to go more to prepaid. We're growing a lot on prepaid. Our prepaid platform in Mexico is excellent. We're growing there and I think in the quarter, I think the service revenue in prepaid grow more than 10%. It was very good. In the other side, in Brazil, postpaid has been growing good. Brazil has been having a little bit more the economy has been a little bit more slowing down a little bit. That's why people is not spending as much as they were spending in prepaid. In Mexico, in the other side, people is spending.
Our ARPUs are good in prepaid and that's more or less what is happening, no?
Are you being more aggressive in terms of promotions for contract subscribers in Brazil to drive this very strong performance?
No. I think in Brazil, the strong performance that we're having in postpaid is not in one quarter. If you can see the last two years, we have been very strong in postpaid. More than two years, we have been very strong, and we have been the leaders gaining net adds in postpaid in Brazil. That's not new. We have been doing very good investments in the network, in coverage, in 4G, in 4.5G, giving the best speeds, having good phones. And doing good in the plans that we have. That's not new in Brazil. We have been doing that for a long time, and we're growing, and we have been the leaders growing in the postpaid segment in Brazil.
In Mexico, yes, it was a change, but we can see that that's a market situation because nobody's growing too much in postpaid, and the growth has been more in the prepaid segment. That's really what is happening, and we're okay with that. If the market shifts in the next months because people feel more secure to have like a contract in Mexico, we're ready to give them. That's more or less what is happening in each market.
Understood. Thank you very much. Very clear.
Thank you.
Thank you. Our next question comes from Diego Aragão from Goldman Sachs. Please, Diego, your line is now open.
Yes, thanks. Hello, everybody. Hello, Daniel, Carlos, Daniela. Look, the first question is on Mexico. Can you just help us quantify.
You know, the tower transaction, who was the buyer? What was the price paid for each tower and the number of towers? That would be helpful. Still on Mexico, any updates on the pay TV license? We've been seeing some, I know, some articles out there, some rumors that you know, that might be a chance for you to get finally your pay TV license in Mexico. Any updates, it would be great. Thank you.
Diego, first, I'm gonna give you an update on the new tower spin off that we're gonna do. I think in our tower spin off, we have all the local preliminary steps in the different countries is completed. Local tower companies are now operating independently from the telcos operations. The spin off at the América Móvil level is subject to the authorizations of the Mexican tax authorities, the SAT, and the registration and distribution of the shares of the new entity is subject to the approval of the Mexican Securities Commission, the CNBV. Okay? Filing has been made before to the SAT and to the CNBV, and we expect to be in a position to finalize this spin off more or less on the second quarter of this year.
That's more or less when we are seeing the tower spin off that we have. On the towers that Telmex sell, they sold around 900 towers, and I think Telmex still has more towers to sell, but they sell 900 towers and that's more or less what we get. We separate. Carlos can tell you more or less the difference and the profits that we get on that. What was your other question?
The other question was on the pay TV license. Any updates that you can share with us?
Yes. As you know, the application is still pending. The application complies with all the current regulations. In addition to that, it has become public that it has an investment commitment and a network sharing commitment. As you know, pay TV is a highly concentrated market. There are two dominant players that have already been determined by the IFT. One of those have approximately 65% of the market share. There's no asymmetric regulations that have been imposed to this date. The two main competitors do not overlap in their cable network, so they have basically split the territory and there's no competition for the triple play in those areas. Prices are consistently up, subscriptions are not growing.
It is clear that, you know, competition will serve well to consumers and to the sector, and we believe that Claro and América Móvil is a key alternative to that now. This will have to be determined by the IFT, and we expect, hopefully, some positive news on that front. There's no timing at this point in time for a new vote on the application.
Thanks. Very clear. Then just on the numbers for the tower transaction.
Tower transaction, I think the revenues obtained by Telmex were exactly MXN 7 billion, just a little bit from MXN 7 billion. They are booked on the other revenues, so service revenues. In total.
Thank you.
Okay.
Okay. Thank you.
Yeah.
Thank you. Our next question comes from Carlos Legoretta from GBM. Please, Carlos, your line is now open.
Hi. Good morning. Thank you for taking the questions. I have two very quick. In terms of share buybacks in the last 12 months, you spent around, if this is the MXN 2 billion, if I'm correct. I believe in your investor day you mentioned a figure of MXN 3 billion. Is that still a number that we should think of as a reference? Secondly, regarding the competitive environment in Mexico in wireless, you've obviously done very well overall, but do you see any space to start increasing prices, perhaps? Thank you.
Hello, Carlos. Well, you have to be very clear. What we said on Investor Day was that we were expecting a shareholder distribution, not buyback, shareholder distribution, including dividends, to come to be as high as $3 billion, since we were not having to deploy all our cash flow for the reduction of debt anymore. As it happens, I think the aggregate distributions for last year were a little bit more than that. It was about $3.1 billion, if I remember correctly, of which about $1.8 billion were share buybacks and $1.3 billion were dividends. Okay?
Going forward, as we have done in the past, we always take a look at what is our expected cash flow, and then we deploy it in share buybacks throughout the year, very much in line with the seasonality of our cash flow. We would expect to continue to do the same for this year. We have been guiding. On the wireless market in Mexico, we're not thinking to increase prices at this time, so we don't think to increase prices. I think we're doing well, because we get the preference of our customers. I think customers can do number portability immediately.
We really have the preference of the customers and we have the best coverage, the best network, the best speed. We used to have, like, Opensignal, that's a company that measures quality. We were the leaders, even though we have more subscribers in our networks than the other ones. We have the best speed and quality of service. I think that's really the reason why people and customers are preferring Telcel. I think that's why we are seeing growth as the leaders in the wireless market at this moment.
Thank you both for your comments.
Thank you.
Thank you. Our next question comes from César Davanço from Santander. Please, César, your line is now open.
Hello, guys. Thanks for having me. First of all, congratulations on your results. My question is regarding Colombia. I understand it was very clear your explanation regarding the competitive landscape, but I would like to have more color regarding ARPU, because we saw a decline this semester. If you could give a little bit more about this, it would be great.
Well, I think ARPU is going down a little bit because the big competition that we're having. As you give more and more data to customers, then some customers prefer to reduce the rate or reduce his plan. That's more or less what we have. I think with the competition that we have, we're having a good performance. We're growing in prepaid, we're growing in postpaid. It's very important. You know, something that is very important, number portability is positive this year. With all the competition that we have, number portability was very good in Colombia. We're happy the way we're developing in Colombia.
You have any expectations regarding the next quarters, like regarding costs and ARPU?
No, we don't have expectations. It's very difficult to understand what your competitors are gonna do. I think we have very solid basis in Colombia. As we said, we have a good fixed company, a good TV, broadband. We are doing convergence. We have a good network and in the prepaid, in the postpaid quality. We hope to maintain the way we're doing right now. I don't know if they are gonna be more aggressive. Well, the market will be more aggressive, and we're ready. We have capacity in our network. We have a very good network, and we're doing fiber to the home. We are investing in Colombia.
Thank you. Very clear. Thank you.
Thank you. As a reminder, if you would like to follow up, press number one on your telephone keypads now. The next question comes from Andrés Coello from Scotiabank. Please, Andrés, your line is now open.
Thank you. Good morning. Two questions, please. In 2021, there was an increase in the funding of pension obligations. Can you explain what's behind increase and if you are expecting a similar level for 2022? A second question: Is it public who was the buyer of the towers in Mexico? Was it Telesites? Thank you.
Well, on the.
Yeah. The pension plan.
On the pension plan. Well, I think it has mostly to do with shortfall in funding. So we decided to contribute a bit more. Obviously, this is now reversing, which is what is happening everywhere. The present value of future liability is, you know, had gone up because rates have come down. Now rates are going back up again and the liabilities are the present value of future liabilities is coming down. So we don't expect to continue to fund it this year. In terms of the towers.
I think it was Telesites. It was not a secret. It's Telesites, the one who buy the.
Okay. Very clear.
Tower.
Very clear. Thank you.
Thank you. The next question comes from Alejandro Chavelas from Credit Suisse. Please, Alejandro, your line is now open.
Hi, Miguel Martin. Thanks for taking the question. Most of my questions have been answered. Just two questions from my side. The first one is, if the IFT noted that they expect to conduct the new biannual review of asymmetrical measures during this year, I know it's a difficult question to answer, but do you have any ideas of what could change, or should we expect a similar type of adjustments in regulation that we have seen in the past? Anything that you can say is super useful. The other one is in Brazil. There was this news that a government entity recommended they deny the Oi acquisition. It applies to some other recommendation, not something formal.
If you can share anything on that front, what it is, if it changes your expectations in any way, that would be super useful. Thanks.
In terms of the IFT, revisions, it will start in December, as it was published by the IFT. We don't have any particular expectation. As you know, all areas of the company are heavily regulated, so hopefully this would be a good time to start some re-deregulation on the market.
What was the other question?
Nothing.
Uh.
Nothing.
Well, I think in Brazil on Oi we have the approval from Anatel, I think last week. Well, CADE is having a meeting right now, so I don't know what's gonna be the decision. We need to wait until they finish and see what's gonna be the decision from CADE.
Thank you very much. Very useful.
Thank you.
Thank you. As a final reminder, if you would like to ask a question, please press star followed by one on your telephone keypads now. Our next question comes from Valentín Mendoza from Actinver. Please, Valentín, your line is now open.
Hi. Good morning, ladies and gentlemen. Thank you very much for taking my questions, and congratulations on the strong set of results. I have a couple of questions on my side. The first one has to do with Chile. I was wondering if you could share with us about Entel on the competitive landscape over there, as we continue to see some ARPU pressures there. Are you expecting to have some change on this side with the merger with VTR? The second question is. It's a follow-up on Oi in Brazil. Just wanted to hear your thoughts because some media has been citing that a competitor has requested the amendments of the regulator backing up the sale on the back of an illegal decision.
Carlos, if you want to talk about this.
Yes, on this last point, yes, we have heard the news and, you know, so far, Anatel's resolution is in force in effect. We understand that any problem with that is really just a procedural problem and that, to the extent required, that resolution would be CADE approved as well.
On Chile, well, I think the competitive landscape in Chile is high. In the mobile and in the fixed, there is a lot of fiber, and they are selling the broadband. But I think we're not doing anything with VTR until we have traction. What we're doing is we're still focusing in the networks, in the customers, in the prepaid, postpaid, and to grow our TV and broadband segment. It's been a very competitive, highly competitive market. We have been increasing our promotions and we're gonna do that this year.
All right. Thank you very much.
Thank you.
Thank you. We currently have no further questions. I will hand over back to Mr. Daniel Hajj for any final remarks.
Thank you, all of you, for the call. Good afternoon. Bye-bye.
Thank you all.
This concludes today's call. Thank you so much for joining. You may now disconnect your lines.