2
Annual Report Pursuant to Section
Exchange Act ofOF THE SECURITIES EXCHANGE ACT OF 1934
for
2021
Telcel, Piso 16, Colonia Ampliación Granada, Miguel Hidalgo 11529 Mexico City,
Mexico
/ Facsimile: (5255) 2581-4422
Title of each class: | Trading symbol | Name of each exchange on which | ||
A Shares, without par value | AMOV | New York Stock Exchange | ||
L Shares, without par value | AMX | New York Stock Exchange | ||
3.625% Senior Notes Due | AMX29 | New York Stock Exchange | ||
2.875% Senior Notes Due | AMX30 | New York Stock Exchange | ||
6.375% Notes Due | AMX35 | New York Stock Exchange | ||
6.125% Notes Due | AMX37 | New York Stock Exchange | ||
6.125% Senior Notes Due 2040 | AMX40 | New York Stock Exchange | ||
4.375% Senior Notes Due 2042 | AMX42 | New York Stock Exchange | ||
4.375% Senior Notes Due 2049 | AMX49 | New York Stock Exchange |
20,555 million | AA Shares | |
502 million | A Shares | |
45,582 million | L Shares |
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. | Yes | ✓ | No | |||||
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If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. | Yes | No | ✓ | |||||
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. | Yes | ✓ | No | |||||
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Yes | ✓ | No | |||||
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☒ Yes ☐ No
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. ☐ Yes ☒ No
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of RegulationS-T (§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Emerging growth company ☐
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐
† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Act
✓ | Large accelerated filer | Accelerated filer | Non-accelerated filer | Emerging growth company | ||||||||||||
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. | Yes | ✓ | No | |||||
U.S. GAAP | ✓ | International Financial Reporting Standards as issued by the International Accounting Standards Board | Other | |||||||||||
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Exchange Act).
☐ Yes ☒ No
2018 ANNUAL REPORT FORM 20-F
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Yes | No | ✓ |
(See Form20-F Cross Reference Guide on page 114)
TABLE OF CONTENTS | ||||||||
(See Form 20-F Cross Reference Guide on page 89) | ||||||||
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SELECTED FINANCIAL DATA We prepared our audited consolidated financial statements included in this annual report in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The selected financial information should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements. We present our consolidated financial statements in Mexican pesos. This annual report contains translations of various peso amounts into U.S. dollars at specified rates solely for your convenience. You should not construe these translations as representations that the peso amounts actually represent the U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated. Unless otherwise indicated, we have translated U.S. dollar amounts from pesos at the exchange rate of Ps.20.5835 to U.S.$1.00, which was the rate reported by Banco de México on December 30, 2021, as published in the Official Gazette of the Federation ( Diario Oficial de la Federación On November 23, 2021, we completed the sale of our U.S. operations to Verizon Communications Inc. (“Verizon”), as previously disclosed in our press release furnished on a report on Form 6-K on November 23, 2021. As a result, in accordance with IFRS 5, TracFone Wireless Inc.’s (“TracFone”) operations are classified as discontinued operations for all years presented in the consolidated financial information included in this report. Accordingly, results are presented in a single amount as profit after tax from discontinued operations in the consolidated financial information included in this annual report. Operating and financial information presented herein therefore excludes TracFone, including for periods prior to the sale.We have not included earnings or dividends on a per American Depositary Share (“ADS”) basis. Each L Share ADS represents 20 L Shares and each A Share ADS represents 20 A Shares. |
FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||||||||||||||||||
(in millions of Mexican pesos, except share and per share amounts) | | (in millions of U.S. dollars, except share and per share amounts) | ||||||||||||||||||||||||||||||
STATEMENT OF COMPREHENSIVE INCOME DATA: | ||||||||||||||||||||||||||||||||
Operating revenues | Ps. | 851,483 | Ps. | 839,707 | Ps. | 855,535 | U.S. | 41,564 | ||||||||||||||||||||||||
Operating costs and expenses | 707,685 | 694,204 | 689,402 | 33,494 | ||||||||||||||||||||||||||||
Depreciation and amortization | 157,519 | 162,682 | 162,627 | 7,901 | ||||||||||||||||||||||||||||
Operating income | 143,798 | 145,503 | 166,133 | 8,070 | ||||||||||||||||||||||||||||
Net profit for the year continued | Ps. | 60,468 | Ps. | 34,034 | Ps. | 74,615 | U.S. | 3,625 | ||||||||||||||||||||||||
Net profit for the year discontinued | 9,845 | 16,993 | 121,711 | 5,913 | ||||||||||||||||||||||||||||
Net profit for the year | Ps. | 70,313 | Ps. | 51,027 | Ps. | 196,326 | U.S. | 9,538 | ||||||||||||||||||||||||
Net profit attributable for the year to: | ||||||||||||||||||||||||||||||||
Equity holders of the parent continued | Ps. | 57,886 | Ps. | 29,860 | Ps. | 70,712 | U.S. | 3,435 | ||||||||||||||||||||||||
Equity holders of the parent discontinued | 9,845 | 16,993 | 121,711 | 5,913 | ||||||||||||||||||||||||||||
Equity holders of the parent | Ps. | 67,731 | Ps. | 46,853 | Ps. | 192,423 | U.S. | 9,348 | ||||||||||||||||||||||||
Non-controlling interests | 2,582 | 4,174 | 3,903 | 190 | ||||||||||||||||||||||||||||
Net profit for the year | Ps. | 70,313 | Ps. | 51,027 | Ps. | 196,326 | U.S. | 9,538 | ||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic diluted continued | Ps. | 0.88 | Ps. | 0.45 | Ps. | 1.07 | U.S. | 0.05 | ||||||||||||||||||||||||
Basic diluted discontinued | Ps. | 0.15 | Ps. | 0.26 | Ps. | 1.85 | U.S. | 0.09 | ||||||||||||||||||||||||
Dividends declared per share (1) | Ps. | 0.35 | Ps. | 0.38 | Ps. | 0.40 | U.S. | 0.02 | ||||||||||||||||||||||||
Weighted average number of shares outstanding (millions): | ||||||||||||||||||||||||||||||||
Basic | 66,016 | 66,265 | 65,967 | - | ||||||||||||||||||||||||||||
Diluted | 66,016 | 66,265 | 65,967 | - | ||||||||||||||||||||||||||||
BALANCE SHEET DATA: | ||||||||||||||||||||||||||||||||
Property, plant and equipment, net | Ps. | 639,343 | Ps. | 722,930 | Ps. | 731,197 | U.S. | 35,523 | ||||||||||||||||||||||||
Right of use assets | 118,003 | 101,977 | 90,372 | 4,391 | ||||||||||||||||||||||||||||
Total assets | 1,531,934 | 1,625,048 | 1,689,650 | 82,086 | ||||||||||||||||||||||||||||
Short-term debt and current portion of long-term debt | 129,172 | 148,083 | 145,223 | 7,055 | ||||||||||||||||||||||||||||
Short-term lease debt | 25,895 | 25,068 | 27,632 | 1,342 | ||||||||||||||||||||||||||||
Long-term debt | 495,082 | 480,300 | 418,807 | 20,347 | ||||||||||||||||||||||||||||
Long-term lease debt | 94,702 | 84,259 | 71,022 | 3,450 | ||||||||||||||||||||||||||||
Capital stock | 96,338 | 96,342 | 96,333 | 4,680 | ||||||||||||||||||||||||||||
Total equity | Ps. | 226,907 | Ps. | 315,118 | Ps. | 454,042 | U.S. | 22,057 | ||||||||||||||||||||||||
NUMBER OF OUTSTANDING SHARES (MILLIONS): | ||||||||||||||||||||||||||||||||
AA Shares | 20,607 | 20,578 | 20,555 | - | ||||||||||||||||||||||||||||
A Shares | 531 | 520 | 502 | - | ||||||||||||||||||||||||||||
L Shares | 44,872 | 45,764 | 43,633 | - | ||||||||||||||||||||||||||||
(1) |
Figures for each year provided represent the annual dividend declared at the general shareholders’ meeting that year. For information on dividends paid per share translated into U.S. dollars, see “Share Ownership and Trading—Dividends” under Part IV of this annual report. |
We prepared our audited consolidated financial statements included in this annual report in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The selected financial information should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements.
We present our financial statements in Mexican pesos. This annual report contains translations
(2) | For the years 2019 to 2020 the financial statements were modified for the sale of TracFone. See Note 2 Ac to our audited consolidated financial statements included in this annual report. |
We have not included earnings or dividends on a per American Depositary Share (“ADS”) basis. Each L Share ADS represents 20 L Shares and each A Share ADS represents 20 A Shares.
2
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FOR THE YEAR ENDED DECEMBER 31,(1) |
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2014 |
2015 |
2016 |
2017 |
2018 |
2018 | |||||||||||||||||||
(in millions of Mexican pesos, except share and per share amounts)
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(in millions of U.S. dollars, amounts) | |||||||||||||||||||||||
STATEMENT OF COMPREHENSIVE INCOME DATA: |
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Operating revenues | Ps. | 848,580 | Ps. | 893,738 | Ps. | 975,412 | Ps. | 1,021,634 | Ps. | 1,038,208 | U.S.$ | 52,747 | ||||||||||||
Operating costs and expenses | 692,026 | 752,325 | 865,802 | 921,490 | 898,651 | 45,657 | ||||||||||||||||||
Depreciation and amortization | 114,994 | 125,715 | 148,526 | 160,175 | 155,713 | 7,911 | ||||||||||||||||||
Operating income | 156,554 | 141,413 | 109,610 | 100,144 | 139,557 | 7,090 | ||||||||||||||||||
Net profit for the year | Ps. | 47,498 | Ps. | 36,961 | Ps. | 12,079 | Ps. | 32,155 | Ps. | 54,517 | U.S.$ | 2,770 | ||||||||||||
NET PROFIT ATTRIBUTABLE FOR THE YEAR TO: |
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Equity holders of the parent | Ps. | 46,146 | Ps. | 35,055 | Ps. | 8,650 | Ps. | 29,326 | Ps. | 52,566 | U.S.$ | 2,670 | ||||||||||||
Non-controlling interests | 1,352 | 1,906 | 3,429 | 2,829 | 1,951 | 100 | ||||||||||||||||||
Net profit for the year | Ps. | 47,498 | Ps. | 36,961 | Ps. | 12,079 | Ps. | 32,155 | Ps. | 54,517 | U.S.$ | 2,770 | ||||||||||||
EARNINGS PER SHARE: |
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Basic | Ps. | 0.67 | Ps. | 0.52 | Ps. | 0.13 | Ps. | 0.44 | Ps. | 0.79 | U.S.$ | 0.04 | ||||||||||||
Diluted | Ps. | 0.67 | Ps. | 0.52 | Ps. | 0.13 | Ps. | 0.44 | Ps. | 0.79 | U.S.$ | 0.04 | ||||||||||||
Dividends declared per share (2) | Ps. | 0.24 | Ps. | 0.26 | Ps. | 0.28 | Ps. | 0.30 | Ps. | 0.32 | U.S.$ | 0.02 | ||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING (MILLIONS): |
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Basic | 69,254 | 66,869 | 65,693 | 65,909 | 66,055 | |||||||||||||||||||
Diluted | 69,254 | 66,869 | 65,693 | 65,909 | 66,055 | |||||||||||||||||||
BALANCE SHEET DATA: |
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Property, plant and equipment, net | Ps. | 588,106 | Ps. | 573,529 | Ps. | 701,190 | Ps. | 676,343 | Ps. | 640,001 | U.S.$ | 32,516 | ||||||||||||
Total assets | 1,278,357 | 1,296,487 | 1,515,042 | 1,486,212 | 1,429,223 | 72,613 | ||||||||||||||||||
Short-term debt and current portion of long-term debt | 57,806 | 119,590 | 82,607 | 51,746 | 96,230 | 4,889 | ||||||||||||||||||
Long-term debt | 545,949 | 563,627 | 625,194 | 646,139 | 542,692 | 27,572 | ||||||||||||||||||
Capital stock | 96,383 | 96,338 | 96,338 | 96,339 | 96,338 | 4,895 | ||||||||||||||||||
Total equity | 234,639 | 160,854 | 271,024 | 260,634 | 245,872 | 12,492 | ||||||||||||||||||
NUMBER OF OUTSTANDING SHARES (MILLIONS): |
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AA Shares | 23,384 | 23,384 | 20,635 | 20,602 | 20,602 | |||||||||||||||||||
A Shares | 649 | 625 | 592 | 567 | 546 | |||||||||||||||||||
L Shares | 44,120 | 41,990 | 44,571 | 44,901 | 44,887 | |||||||||||||||||||
(1) As of December 31, 2018, we owned 51.0% of the total outstanding shares of Telekom Austria AG (“Telekom Austria” or “TKA”). We began consolidating Telekom Austria from July 1, 2014. Prior to July 1, 2014, we accounted for Telekom Austria using the equity method, which affects the comparability of our results for 2014 through 2018. (2) Figures for each year provided represent the annual dividend declared at the general shareholders’ meeting that year. For information on dividends paid per share trans- lated into U.S. dollars, see “Share Ownership and Trading—Dividends” under Part IV of this annual report.
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HISTORY AND CORPORATE INFORMATION
América Móvil, S.A.B. de C.V. (“América Móvil,” “we” or the “Company”) is a sociedad anónima bursátil de capital variable organized under the laws of Mexico.
We were established in September 2000 when Teléfonos de México, S.A.B. de C.V. (“Telmex”), a fixed-line Mexican telecommunications operator privatized in 1990, spun off to us its wireless operations in Mexico and other countries. We have made significant acquisitions throughout Latin America, the United States, the Caribbean and Europe, and we have also expanded our businesses organically. In 2010, we acquired control of Telmex and Telmex Internacional, S.A.B. de C.V. (“Telmex Internacional”) in a series of public tender offers.
Our principal executive offices are located at Lago Zurich 245, Plaza Carso / Edificio Telcel, Colonia Ampliación Granada, Miguel Hidalgo, 11529, Mexico City, Mexico. Our telephone number at this location is (5255) 2581-3700.
6
RECENT DEVELOPMENTS
AcquisitionOn November 23, 2021, we completed the sale of Nextel Operationsour U.S. operations to Verizon, as previously disclosed in Brazil
In March 2019, we entered into an agreement to acquire 100% ofour press release furnished on a report on Form 6-K on November 23, 2021. As a result, in accordance with IFRS 5, TracFone’s operations are classified as discontinued operations for all years presented in the outstanding shares of Nextel Telecomunicações Ltda. (“Nextel Brazil”)consolidated financial information included in this report. Accordingly, results are presented in a single amount as profit after tax from NII Holdings Inc. (“NII”)discontinued operations in the consolidated financial information included in this annual report. Operating and AI Brazil Holdings B.V.financial information presented herein therefore excludes Tracfone, including for U.S.$905 million. The transaction is subjectperiods prior to the satisfaction of certain customary closing conditions, including the approval of the stockholders of NII and receipt of regulatory and antitrust approvals from Brazilian government authorities. Nextel Brazil provides nationwide mobile telecommunications services.
Acquisition of Telefónica’s Operations in Guatemala and El Salvador
In January 2019, we entered into an agreement to acquire 100% of the outstanding shares of Telefónica Móviles Guatemala, S.A. (“Telefónica Guatemala”) for U.S.$333 million and 99.3% of the outstanding shares of Telefónica Móviles El Salvador, S.A. de C.V. (“Telefónica El Salvador”) for U.S.$315 million. The acquired companies provide mobile and fixed telecommunications services, including voice, data and Pay TV in Guatemala and El Salvador, respectively. The Telefónica Guatemala acquisition was completed on January 24, 2019. The completion of the Telefónica El Salvador acquisition is subject to certain customary closing conditions, including regulatory approval.
7
Edificio Telcel, Colonia Ampliación Granada, Miguel Hidalgo, 11529, Mexico City, Mexico. Our telephone number at this location is (5255) 2581-3700.ABOUT AMERICA MOVIL The following map illustrates the geographic diversity of our operations and certain key performance indicators ("KPIs"(“KPIs”) as of December 31, 2018. UNITED STATES2021.TRACFONE Licensed Population 334 Wireless Subscribers 21,688 Revenue Generating Units (RGUs) - Wireless Penetration 126% Wireless operation CENTRAL AMERICA & CARIBBEAN / CLARO Licensed Population 63 Wireless Subscribers 20,250 Revenue Generating Units (RGUs) 9,011 Wireless Penetration 111% Wireless and fixed operations MEXICO / TELCEL TELMEX Licensed Population 125 Wireless Subscribers 75,448 Revenue Generating Units (RGUs) 22,337 Wireless Penetration 95% Wireless and fixed operations ECUADOR / CLARO Licensed Population 17 Wireless Subscribers 8,246 Revenue Generating Units (RGUs) 384 Wireless Penetration 92% Wireless and fixed operations PERU / CLARO Licensed Population 32 Wireless Subscribers 12,098 Revenue Generating Units (RGUs) 1,472 Wireless Penetration 121% Wireless and fixed operations CHILE / CLARO Licensed Population 19 Wireless Subscribers 6,707 Revenue Generating Units (RGUs) 1,424 Wireless Penetration 153% Wireless and fixed operations AUSTRIA & EASTERN EUROPE Licensed Population 41 Wireless Subscribers 21,000 Revenue Generating Units (RGUs) 6,261 Wireless Penetration 145% Wireless operations: Austria, Belarus, Bulgaria, Croatia, Serbia, Slovenia and Macedonia Fixed operations: Austria, Belarus, Bulgaria, Croatia, Slovenia and Macedonia COLOMBIA / CLARO Licensed Population 50 Wireless Subscribers 29,681 Revenue Generating Units (RGUs) 7,171 Wireless Penetration 119% Wireless and fixed operations BRAZIL / CLARO Licensed Population 210 Wireless Subscribers 56,416 Revenue Generating Units (RGUs) 35,285 Wireless Penetration 111% Wireless and fixed operations ARGENTINA, PARAGUAY & URUGUAY / CLARO Licensed Population 55 Wireless Subscribers 24,264 Revenue Generating Units (RGUs) 775 Wireless Penetration 129% Wireless operation: Argentina, Paraguay and Uruguay Fixed operations: Argentina and Paraguay Licensed Population in millions Wireless Subscribers and Revenue Generating Units in thousands
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AS OF DECEMBER 31, |
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2016 | 2017 | 2018 | ||||||||||
(in thousands) | ||||||||||||
WIRELESS SUBSCRIBERS: | ||||||||||||
Mexico Wireless | 72,953 | 73,855 | 75,448 | |||||||||
Brazil | 60,171 | 59,022 | 56,416 | |||||||||
Colombia | 28,954 | 29,353 | 29,681 | |||||||||
Southern Cone | 30,377 | 31,076 | 30,971 | |||||||||
Andean Region | 20,801 | 20,352 | 20,344 | |||||||||
Central America | 15,085 | 15,927 | 14,364 | |||||||||
Caribbean | 5,453 | 5,637 | 5,887 | |||||||||
United States | 26,070 | 23,132 | 21,688 | |||||||||
Europe | 20,708 | 20,658 | 21,000 | |||||||||
Total Wireless Subscribers | 280,572 | 279,012 | 275,798 | |||||||||
FIXED RGUS: | ||||||||||||
Mexico Fixed | 22,178 | 21,851 | 22,337 | |||||||||
Brazil | 36,716 | 35,904 | 35,285 | |||||||||
Colombia | 6,304 | 6,753 | 7,171 | |||||||||
Southern Cone | 1,942 | 2,023 | 2,199 | |||||||||
Andean Region | 1,820 | 1,765 | 1,856 | |||||||||
Central America | 5,392 | 5,811 | 6,465 | |||||||||
Caribbean | 2,663 | 2,700 | 2,546 | |||||||||
Europe | 5,900 | 6,036 | 6,261 | |||||||||
Total Fixed RGUs | 82,915 | 82,844 | 84,120 | |||||||||
Total RGUs | 363,488 | 361,856 | 359,919 |
AS OF DECEMBER 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
(in thousands) | ||||||||||||
WIRELESS SUBSCRIBERS | ||||||||||||
Mexico | 76,918 | 77,789 | 80,539 | |||||||||
Brazil | 54,488 | 63,140 | 70,541 | |||||||||
Colombia | 31,104 | 33,009 | 35,062 | |||||||||
Southern Cone | 31,507 | 30,669 | 33,322 | |||||||||
Andean Region | 20,104 | 18,877 | 20,774 | |||||||||
Central America | 15,488 | 15,044 | 16,508 | |||||||||
Caribbean | 6,244 | 6,422 | 7,020 | |||||||||
Europe | 21,296 | 21,864 | 22,766 | |||||||||
Total Wireless Subscribers | 257,149 | 266,814 | 286,532 | |||||||||
FIXED RGUS: | ||||||||||||
Mexico | 21,992 | 21,925 | 21,408 | |||||||||
Brazil | 34,048 | 32,648 | 31,287 | |||||||||
Colombia | 7,613 | 8,318 | 8,876 | |||||||||
Southern Cone | 2,514 | 2,836 | 3,349 | |||||||||
Andean Region | 2,049 | 2,158 | 2,444 | |||||||||
Central America | 4,409 | 4,247 | 4,412 | |||||||||
Caribbean | 2,528 | 2,558 | 2,608 | |||||||||
Europe | 6,143 | 6,050 | 6,082 | |||||||||
Total Fixed RGUs | 81,296 | 80,740 | 80,466 | |||||||||
Total RGUs | 338,445 | 347,554 | 366,998 |
COUNTRY | BRANDS | PRODUCTS | ||
Mexico | Telcel |
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Wireless voice | ||||
Wireless data | ||||
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Fixed data | ||||
Europe | A1 | Wireless
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| Wireless data | |||
Fixed voice | ||||
Fixed data | ||||
Pay TV |
RGUs, the same as of December 31, 2020.2018,2021, our wireless voice and data operations generated revenues of Ps. 529.2Ps.549.7 billion, representing 51.0%54.5% of our consolidated revenues. As of December 31, 2018,2021, our wireless operations represented approximately 76.6%78.1% of our total RGUs.Voice and Data10
The voice and data plans are either “postpaid,” where the customer is billed monthly for the previous month, or “prepaid,” where the customer pays in advance for a specified volume of use over a specified period. Postpaid plans increased as a percentage of the wireless base from 25.3%34.0% in December 20172020 to 27.5%37.6% as of December 31, 2018,2021, while prepaid plans represented 72.5%.
62.4% as of December 31, 2021.
2021.
Value-Added Services
Radiomóvil Dipsa, S.A. de C.V (“Telcel”(”Telcel“), offers a wide range of services and content such as video, music, games and other applications, which our subscribers can access from mobile devices. In addition, we offer other wireless services, including wireless security services, mobile payment solutions,(“VPN”(”VPN“) services, video calls and Personal Communications Service (“PCS”personal communications services (”PCS“).
Voice
2020.
Data
Broadband
11
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SOLUTIONS.Solutions
computer sales
12
DATA AND |
| PAY TV | OTT SERVICES (3) | |||||||||||||
Argentina | 🌑 | |||||||||||||||
🌑 | 🌑 | 🌑 | ||||||||||||||
Austria | 🌑 | |||||||||||||||
🌑 | 🌑 | 🌑 | ||||||||||||||
Belarus | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||
Brazil | 🌑 | |||||||||||||||
🌑 | 🌑 | 🌑 | ||||||||||||||
Bulgaria | 🌑 | |||||||||||||||
🌑 | 🌑 | 🌑 | ||||||||||||||
Chile | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||
Colombia | 🌑 | |||||||||||||||
🌑 | 🌑 | 🌑 | ||||||||||||||
Costa Rica | 🌑 | |||||||||||||||
🌑 | 🌑 | 🌑 | ||||||||||||||
Croatia | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||
Dominican Republic | 🌑 | |||||||||||||||
🌑 | 🌑 | 🌑 | ||||||||||||||
Ecuador | 🌑 | |||||||||||||||
🌑 | 🌑 | 🌑 | ||||||||||||||
El Salvador | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||
Guatemala | 🌑 | |||||||||||||||
🌑 | 🌑 | 🌑 | ||||||||||||||
Honduras | 🌑 | |||||||||||||||
🌑 | 🌑 | 🌑 | ||||||||||||||
Macedonia | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||
Mexico | 🌑 | 🌑 | 🌑 (4) | |||||||||||||
Nicaragua | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||
Panama | 🌑 | |||||||||||||||
🌑 | 🌑 | 🌑 | ||||||||||||||
Paraguay | 🌑 | |||||||||||||||
🌑 | 🌑 | 🌑 | ||||||||||||||
Peru | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||
Puerto Rico | 🌑 | |||||||||||||||
🌑 | 🌑 | 🌑 | ||||||||||||||
Serbia | 🌑 | |||||||||||||||
🌑 | ||||||||||||||||
Slovenia | 🌑 | 🌑 | 🌑 | 🌑 | ||||||||||||
Uruguay | 🌑 | |||||||||||||||
🌑 | ||||||||||||||||
long distance. |
13
|
In the United States, we do not own any wireless telecommunications facilities or hold any wireless spectrum licenses. Instead, we purchase airtime through agreements with wireless service providers and resell airtime to customers. Through these agreements, we have a nationwide “virtual” network, covering almost all areas in which wireless services are available.
Service (“IAAS”), Software as a Service (“SAAS”), security solutions and unified communications. |
the year we will cover 120 cities.
14
GENERATION TECHNOLOGY | ||||||||||||||||
GSM | UMTS | LTE | 5G | |||||||||||||
(% of covered population) | ||||||||||||||||
Argentina | 99 | % | 98 | % | 97 | % | - | |||||||||
Austria | 100 | % | 96 | % | 99 | % | 62 | % | ||||||||
Belarus | 100 | % | 100 | % | 0 | % | - | |||||||||
Brazil | 94 | % | 95 | % | 87 | % | 17 | % | ||||||||
Bulgaria | 100 | % | 100 | % | 99 | % | 52 | % | ||||||||
Chile | 97 | % | 97 | % | 98 | % | - | |||||||||
Colombia | 91 | % | 80 | % | 73 | % | - | |||||||||
Costa Rica | 85 | % | 86 | % | 96 | % | - | |||||||||
Croatia | 99 | % | 99 | % | 99 | % | 13 | % | ||||||||
Dominican Republic | 100 | % | 99 | % | 97 | % | 6 | % | ||||||||
Ecuador | 96 | % | 80 | % | 78 | % | - | |||||||||
El Salvador | 91 | % | 88 | % | 87 | % | - | |||||||||
Guatemala | 89 | % | 89 | % | 88 | % | - | |||||||||
Honduras | 81 | % | 82 | % | 72 | % | - | |||||||||
Macedonia | 100 | % | 100 | % | 99 | % | - | |||||||||
Mexico | 94 | % | 95 | % | 93 | % | - | |||||||||
Nicaragua | 72 | % | 72 | % | 50 | % | - | |||||||||
Panama | 82 | % | 90 | % | 86 | % | - | |||||||||
Paraguay | 77 | % | 80 | % | 83 | % | - | |||||||||
Peru | 88 | % | 83 | % | 83 | % | 18 | % | ||||||||
Puerto Rico | 82 | % | 94 | % | 99 | % | 49 | % | ||||||||
Serbia | 99 | % | 98 | % | 98 | % | - | |||||||||
Slovenia | 100 | % | 100 | % | 99 | % | 19 | % | ||||||||
Uruguay | 100 | % | 99 | % | 98 | % | - |
GENERATION TECHNOLOGY |
| |||||||||||
| GSM |
|
| UMTS |
|
| LTE |
| ||||
| (% of covered population) | |||||||||||
Argentina |
| 98 |
|
| 91 |
|
| 88 |
| |||
Austria |
| 100 |
|
| 98 |
|
| 98 |
| |||
Belarus |
| 99 |
|
| 99 |
|
| — |
| |||
Brazil |
| 93 |
|
| 94 |
|
| 81 |
| |||
Bulgaria |
| 100 |
|
| 100 |
|
| 99 |
| |||
Chile |
| 99 |
|
| 97 |
|
| 94 |
| |||
Colombia |
| 92 |
|
| 79 |
|
| 61 |
| |||
Costa Rica |
| 74 |
|
| 80 |
|
| 40 |
| |||
Croatia |
| 99 |
|
| 99 |
|
| 99 |
| |||
Dominican Republic |
| 100 |
|
| 99 |
|
| 94 |
| |||
Ecuador |
| 96 |
|
| 76 |
|
| 59 |
| |||
El Salvador |
| 91 |
|
| 82 |
|
| 64 |
| |||
Guatemala |
| 89 |
|
| 81 |
|
| 62 |
| |||
Honduras |
| 86 |
|
| 81 |
|
| 52 |
| |||
Macedonia |
| 100 |
|
| 100 |
|
| 99 |
| |||
Mexico |
| 93 |
|
| 94 |
|
| 86 |
| |||
Nicaragua |
| 85 |
|
| 80 |
|
| 46 |
| |||
Panama |
| 84 |
|
| 84 |
|
| 67 |
| |||
Paraguay |
| 76 |
|
| 73 |
|
| 53 |
| |||
Peru |
| 87 |
|
| 80 |
|
| 73 |
| |||
Puerto Rico |
| 80 |
|
| 96 |
|
| 86 |
| |||
Serbia |
| 99 |
|
| 98 |
|
| 98 |
| |||
Slovenia |
| 100 |
|
| 100 |
|
| 99 |
| |||
Uruguay |
| 96 |
|
| 91 |
|
| 80 |
|
15
market, increased network investment by our competitors, the development and deployment of new technologies, the introduction of new products and services, new market entrants, the availability of additional spectrum, both licensed and unlicensed, and regulatory changes.
We may pursue opportunities in Latin America or in other areas in the world. Some of the assets that we acquire may require significant funding for capital expenditures.
We continuecan give no assurance as to make incremental acquisitionsthe extent, timing or cost of such investments. We also periodically evaluate opportunities for dispositions, in areasparticular for businesses and in geographies that we no longer consider accretivestrategic. The following are recent developments relating to acquisitions, other investments and divestitures:
agreements with Oi Group for the supply of data transmission capacity. This transaction closed on April 20, 2022. |
16
|
A1, the brand name behind Telekom Austria AG (“Telekom Austria” or “TKA”), ranked number one in the Austrian telecommunications market for brand preference. SERVICE2018,2021, our efforts were mainly focused on promoting our 4.5G LTE services, leveraging the speed and quality of our networks and our fixed bundled offers, which compete on broadband speed and premium content.For example,According to the 2021 Brand Finance Telecom 150 report, Claro isand Telcel rank among the top fifty strongest brands in the telecom sector worldwide. Also, in the Brand Finance Latin America report Claro was named the most valuable telecom brand in the Latin America region according to the Telecoms 300 2018 report by Brand Finance. BrandZ’s Top 50 Most Valuable Latin American Brands 2018 list ranked Telcel among thetop-ten brands in Latin America. In the same year, BrandZ also named Telcel and Telmex as the highest recognized telecom brands in Mexico, and Telcel and Claro as twoone of the highest-ranked telecom brands in Latin America.top ten strongest brands. In addition, Embratel and NET, our brands in Brazil, are among the top fifteen most valuable brands in the country. A 2018aawareness, as well as for brand perception as a premium brand.450,000402,000 points of sale and almost 2,800more than 3,300 customer service centers. Our subsidiaries also sell their services and products online.SERVICESsupport, with approximately 120,000 employees dedicated to customer service.support. We focus our efforts on constantly improving our customers’ experience by leveraging our commercial offerings and our sales and distribution networks. Customers may make inquiries by calling a toll-free telephone number, accessing our subsidiaries’ web sites and social media accounts or visiting one of the customer sales and service centers located throughout the countries we serve.
Euro.
may incur foreign exchange gains or losses that are recorded as other comprehensive income in our consolidated statements of financial position.
Recent Changes in Accounting Standards
We adopted IFRS 15 on revenue recognition for the first time in 2018 using the modified retrospective method, which does not require us to restate our financial information from prior periods. The impact of applying IFRS 15 to our audited consolidated financial statements in 2018 was not significant, see note 2 i) to our audited consolidated financial statements included in this annual report.
We have adopted IFRS 16 on leasing as of January 1, 2019 using the modified retrospective method. The implementation of IFRS 16 will have a significant impact on our consolidated statements of financial position by requiring that we recognizeright-of-use assets and lease liabilities. In our consolidated statements of comprehensive income, we expect the impact of the new standard will be to increase interest expense and depreciation while reducing other operating costs, without a significant impact on net income. The future impact of IFRS 16 on our results of operations will depend not only on the lease agreements in effect at the time of adoption but also on any new lease agreements. For more information, see note 23 to our audited consolidated financial statements included in this annual report.
20
Ps.855.5.
21
2020 accessories. 2020. 2020. This increase principally reflects depreciation and amortization expenses resulting from the revaluation of the passive infrastructure of the telecommunications towers, which became effective as of December 31, 2020. 2020. a decrease in interest expense on lease liabilities and a decrease in interest on debt.20182021 AND 201720182021 increased by 1.6%1.9%, or Ps.16.6Ps.15.8 billion, over 2017.2020. At constant exchange rates, total operating revenues for 20182021 increased by 3.5%7.8% over 2017.2020. This increase principally reflects an increase infixed data services, and equipment, accessories and computer sales operations,corporate networks, which were partially offset by a decrease in revenues from our mobile and fixed voicePay TV services.REVENUES SERVICES.Revenues services2018 decreased2021 increased by 1.7%7.7%, or Ps.14.8Ps.10.1 billion, over 2017.2020. At constant exchange rates, revenues services for 2018 increased by 0.5% over 2017. This increase principally reflects increases in revenues from our mobile voice and fixed and mobile data services, which were partially offset by a decrease in revenues from our fixed voice services.SALES OF EQUIPMENT, ACCESSORIES AND COMPUTERS.Sales of equipment, accessories and computer sales revenues for 2018 increased by 21.9%, or Ps.31.3 billion, over 2017. At constant exchange rates, revenues from sales of equipment accessories and computer salesrevenues for 20182021 increased by 22.1%12.8% over 2017.2020. This increase principally reflects higher sales of smartphones, data-enabled devices and accesories.SALES.SALES AND SERVICES.was Ps.180.0and services increased by 1.8%, or Ps.6.2 billion, for 2018, an increase of 5.8% from Ps.170.2 billion in 2017.over 2020. At constant exchange rates, cost of sales and services for 20182021 increased by 5.5%7.3% over 2017. This increase principally reflects sales ofhigher-end smartphones provided to our postpaid subscribers and an increase in handset financing plans.COST OF SERVICES.Cost of services was Ps.328.8 billion for 2018, an increase of 0.8% from Ps.326.2 billion in 2017. At constant exchange rates, cost of services for 2018 increased by 2.8% over 2017.2020. This increase principally reflects an increase in costs related to network operations, including energysales ofleasing tower sites, third-party technical and IT services,handset financing plans as well as TV content acquisition,increased network maintenance, infrastructure, lease space and electricity costs. This increase, which was also due to inflationary pressures, was partially offset by the success of our coporate cost-savingscontinued cost savings program.20182021 decreased by 5.6%5.8%, or Ps.13.4Ps.11.1 billion, over 2017.2020. As a percentage of operating revenues, commercial, administrative and general expenses were 21.9%21.1% for 2018,2021, as compared to 23.6%2017.2020. At constant exchange rates, commercial, administrative and general expenses for 2018 decreased2021 increased by 3.8%0.7% over 2017.2020. This decreaseincrease principally reflects one-off items, including a decrease in costs related to customer services, systems development and local taxes.2018 decreased2021 increased by Ps.17.4Ps.0.1 billion over 2017, principally reflecting the payment in 2017 of an arbitration award granted in Colombia.20182021 decreased by 2.8%0.03%, or Ps.4.5Ps.0.1 billion, over 2017.2020. As a percentage of operating revenues, depreciation and amortization was 15.0%were 19.0% for 2018,2021, as compared to 15.7%19.4% for 2017.2020. At constant exchange rates, depreciation and amortization for 2018 decreased2021 increased by 1.8%8.5% over 2017.20182021 increased by 39.4%14.2%, or Ps.39.4Ps.20.6 billion, over 2017.2020. Operating margin (operating income as a percentage of operating revenues) was 13.4%19.4% for 2018,2021, as compared to 9.8%17.3% for 2017.20182021 decreased by 22.8%4.2%, or Ps.6.3Ps.1.4 billion, over 2017.2020. This decrease principally reflects the favorable resolution of certain tax contingencies.LOSS, LOSSES,Ps.7.3Ps.17.0 billion for 2018,2021, compared to our net foreign currency exchange loss of Ps.13.8Ps.65.4 billion for 2017.2020. The loss principally reflects the depreciation of some of the currencies in which our indebtedness is denominated, particularly the Euro and the pound sterling.VALUATION OF DERIVATIVES, INTEREST COST FROM LABOR OBLIGATIONS AND OTHER FINANCIAL ITEMS, NET. We recorded a loss of Ps.10.2 billion for 2018 on the22
valuation of derivatives, interest cost from labor obligations and other financial items, net, compared to a loss of Ps.1.9 billion for 2017. The loss in 2018 principally reflects a derivatives loss, which was partially offset by gains in our monetary position.
INCOME TAX.Our income tax expense for 2018 increased by 86.3%, or Ps.21.5 billion, over 2017. This increase principally reflects higher pretax income due to a smaller foreign exchange loss in 2018 compared to 2017.
Our effective corporate income tax rate as a percentage of profit before income tax was 46.0% for 2018, compared to 43.7% for 2017. This rate differed from the Mexican statutory rate of 30% and changed year over year principally as a result of changes in permanent items such as local tax inflation effects and other impacts ofnon-taxable items.
Net Profit
We recorded a net profit of Ps.54.5 billion for 2018, an increase of 69.5%, or Ps.22.4 billion, over 2017.
CONSOLIDATED RESULTS OF OPERATIONS FOR 2017 AND 2016
Operating Revenues
Total operating revenues for 2017 increased by 4.7%, or Ps.46.2 billion, over 2016. At constant exchange rates, total operating revenues for 2017 increased by 2.0% over 2016. This increase principally reflects increases in revenues from our mobile data, fixed data and Pay TV operations, which were partially offset by a decrease in revenues from our mobile voice and fixed voice operations.
MOBILE VOICE.Mobile voice revenues for 2017 decreased by 8.5%, or Ps.20.6 billion, over 2016. At constant exchange rates, mobile voice revenues for 2017 decreased by 10.8% over 2016. This decrease principally reflects reduced interconnection rates and traffic in international and domestic long-distance calls, which was driven by higher data usage due to the growing use of social networking platforms.
FIXED VOICE.Fixed voice revenues for 2017 decreased by 5.7%, or Ps.5.4 billion, over 2016. At constant exchange rates, fixed voice revenues for 2017 decreased by 9.1% over
2016. This decrease principally reflects reduced interconnection rates and traffic in international and domestic long-distance calls, which was driven by the growing use of wireless technology and broadband voice services, such as WiFi calling.
MOBILE DATA.Mobile data revenues for 2017 increased by 20.1%, or Ps.51.6 billion, over 2016. At constant exchange rates, mobile data revenues for 2017 increased by 18.8% over 2016. This increase principally reflects the increased use of mobile data services, such as media and content downloading, web browsing, content streaming andmachine-to-machine services, which was driven in part by the growing use of social networking apps and content downloading on tablets and notebooks.
FIXED DATA.Fixed data revenues for 2017 increased by 10.3%, or Ps.13.0 billion, over 2016. At constant exchange rates, fixed data revenues for 2017 increased by 5.9% over 2016. This increase principally reflects the growth in residential broadband services and corporate data services, such as cloud, dedicated links and data center services.
PAY TV.Pay TV revenues for 2017 increased by 11.0%, or Ps.8.6 billion, over 2016. At constant exchange rates, Pay TV revenues for 2017 increased by 2.3% over 2016. This increase principally reflects growth in our subscriber base and higher revenues driven by the cross-marketing of bundled packages and new TV channel packages, particularly in Colombia, Central America and the Caribbean.
EQUIPMENT, ACCESSORIES AND COMPUTER SALES. Equipment, accessories and computer sales revenues for 2017 decreased by 0.2%, or Ps.0.3 billion, over 2016. At constant exchange rates, revenues from equipment, accessories and computer sales for 2017 decreased by 0.7% over 2016. This decrease principally reflects lower sales ofhigher-end smartphones, other data-enabled devices and tablets, which were partially offset by higher sales oflower-end smartphones due to subsidies provided to our postpaid subscribers and handset financing plans.
OTHER SERVICES.Revenues from other services for 2017 decreased by 2.1%, or Ps.0.7 billion, over 2016. At constant exchange rates, revenues from other services for 2017 decreased by 5.0% over 2016. This decrease principally
23
|
reflects lower revenues from advertising and media services, online content, wireless security services, telephone directories and call center services.
Operating Costs and Expenses
COST OF SALES AND SERVICES.Cost of sales and services for 2017 increased by 2.3%, or Ps.11.3 billion, over 2016, representing 48.6% of operating revenues for 2017, as compared to 49.7% of operating revenues for 2016. At constant exchange rates, cost of sales and services for 2017 decreased by 0.2% over 2016.
Cost of sales was Ps.170.2 billion for 2017, a decrease of 1.4% from Ps.172.5 billion in 2016. This decrease principally reflects higher sales oflower-end smartphones, which were driven by subsidies provided to our postpaid subscribers and an increase in handset financing plans, and improvements in the inventory management of our handsets.
Cost of services was Ps.326.2 billion for 2017, an increase of 4.4% from Ps.312.6 billion in 2016. This increase principally reflects an increase in costs related to network operations, including energy and leasing tower sites, third-party technical and IT services, as well as TV content acquisition.
COMMERCIAL, ADMINISTRATIVE AND GENERAL EXPENSES.Commercial, administrative and general expenses for 2017 increased by 5.5%, or Ps.12.5 billion, over 2016. As a percentage of operating revenues, commercial, administrative and general expenses were 23.6% for 2017, as compared to 23.4% for 2016. At constant exchange rates, commercial, administrative and general expenses for 2017 increased by 2.2% over 2016. This increase principally reflects an increase in costs related to customer services, allowance for doubtful accounts, systems development and local taxes.
Telcel and Telmex, like other Mexican companies, are required by law to pay their employees, in addition to their agreed compensation and benefits, profit sharing in an aggregate amount equal to 10.0% of each entity’s taxable income. Our subsidiaries in Ecuador and Peru are also required to pay employee profit sharing at rates of 15.0% and 10.0% of taxable income, respectively. We account for these profit sharing contributions under commercial, administrative and general expenses.
OTHER EXPENSES.Other expenses for 2017 increased by Ps.20.2 billion over 2016, principally reflecting the payment
of an arbitration award granted in Colombia. For further information on this arbitration proceeding, see note 16 to our audited consolidated financial statements included in this annual report.
DEPRECIATION AND AMORTIZATION.Depreciation and amortization for 2017 increased by 7.8%, or Ps.11.6 billion, over 2016. As a percentage of operating revenues, depreciation and amortization was 15.7% for 2017, as compared to 15.2% for 2016. At constant exchange rates, depreciation and amortization for 2017 increased by 3.4% over 2016. This increase principally reflects investments in our networks and the acceleration of amortizing the costs of various brands of Telekom Austria.
Operating Income
Operating income for 2017 decreased by 8.6%, or Ps.9.5 billion, over 2016. Operating margin (operating income as a percentage of operating revenues) was 9.8% for 2017, as compared to 11.2% for 2016. Excluding the effects of the approximately U.S.$1.0 billion arbitration payment in Colombia, operating income increased by 8.3%, or Ps.9.1 billion, over 2016.
Non-Operating Items
NET INTEREST EXPENSE.Net interest expense (interest expense less interest income) for 2017 decreased by 7.7%, or Ps.2.3 billion, over 2016. This decrease principally reflects lower interest expense due to the amortization of debt during this period.
FOREIGN CURRENCY EXCHANGE LOSS, NET.We recorded a net foreign currency exchange loss of Ps.13.8 billion for 2017, compared to our net foreign currency exchange loss of Ps.40.4 billion for 2016. The loss in both periods principally reflects the appreciation of some of the currencies in which our indebtedness is denominated, particularly the U.S. dollar, the Euroeuro and the pound sterling.
U.S. dollar.
24
EQUITY INTEREST IN NET INCOME OF ASSOCIATED COMPANIES.Our shareloss on hedging instruments as a result of the net incomedepreciation of associated companies accounted for undersome of the equity method was Ps.0.1 billioncurrencies in 2017, as compared to Ps.0.2 billion for 2016.
which our indebtedness is denominated.
TracFone as described above.
48.6% 24.3% for 2016.2020. This rate differed from the Mexican statutory rate of 30%30.0% and changed year over year principally as a resultdue to our discontinued operations, local tax inflation effects and registry of changesbenefits related to tax losses credits in permanent items such as the valuation of derivativesBrazil and other impacts ofnon-taxable items. We are evaluating the impact of the U.S.Chile and impairment related to subsidiaries in Europe, which lowered our income tax reform on our U.S. operations, but we do not expect a material impact onexpense and our effective corporate income tax rate.
for 2021.
25
|
MEXICAN PESOS PER FOREIGN CURRENCY UNIT (AVERAGE FOR THE PERIOD) | ||||||||||||||||||||
2016/2017 | 2017/2018 | |||||||||||||||||||
2016 | % CHANGE | 2017 | % CHANGE | 2018 | ||||||||||||||||
Brazilian real |
| 5.3868 |
|
| 10.2 |
|
| 5.9346 |
|
| (10.8 | ) |
| 5.2937 |
| |||||
Colombian peso |
| 0.0061 |
|
| 4.9 |
|
| 0.0064 |
|
| 1.6 |
|
| 0.0065 |
| |||||
Argentine peso |
| 1.2632 |
|
| (9.0 | ) |
| 1.1489 |
|
| (36.4 | ) |
| 0.7311 |
| |||||
U.S. dollar |
| 18.6529 |
|
| 1.5 |
|
| 18.9400 |
|
| 1.6 |
|
| 19.2397 |
| |||||
Euro |
| 20.6334 |
|
| 3.5 |
|
| 21.3649 |
|
| 6.3 |
|
| 22.7101 |
|
MEXICAN PESOS PER FOREIGN CURRENCY UNIT (AVERAGE FOR THE PERIOD) FOR THE YEARS ENDED DECEMBER 31, | ||||||||||||
2020 | 2021 | % CHANGE | ||||||||||
Brazilian real | 4.1850 | 3.7625 | (10.1 | ) | ||||||||
Colombian peso | 0.0058 | 0.0054 | (7.1 | ) | ||||||||
Argentine peso | 0.3070 | 0.2137 | (30.4 | ) | ||||||||
U.S. dollar | 21.4859 | 20.2768 | (5.6 | ) | ||||||||
Euro | 24.5080 | 23.9834 | (2.1 | ) |
YEAR ENDED DECEMBER 31, 2018 | ||||||||||||||||
OPERATING REVENUES | OPERATING INCOME | |||||||||||||||
(in millions of
|
(as a % of total
| (in millions of
|
(as a % of total
| |||||||||||||
Mexico Wireless | Ps. | 224,557 |
|
| 21.6 | % | Ps. | 57,451 |
|
| 41.2 | % | ||||
Mexico Fixed |
| 96,081 |
|
| 9.3 |
|
| 8,086 |
|
| 5.8 |
| ||||
Brazil |
| 193,306 |
|
| 18.6 |
|
| 23,495 |
|
| 16.8 |
| ||||
Colombia |
| 75,805 |
|
| 7.3 |
|
| 14,389 |
|
| 10.3 |
| ||||
Southern Cone |
| 102,350 |
|
| 9.9 |
|
| 16,976 |
|
| 12.2 |
| ||||
Andean Region |
| 55,787 |
|
| 5.4 |
|
| 5,004 |
|
| 3.6 |
| ||||
Central America |
| 45,033 |
|
| 4.3 |
|
| 4,868 |
|
| 3.5 |
| ||||
United States |
| 153,266 |
|
| 14.8 |
|
| 2,665 |
|
| 1.9 |
| ||||
Caribbean |
| 36,640 |
|
| 3.5 |
|
| 5,812 |
|
| 4.2 |
| ||||
Europe |
| 100,716 |
|
| 9.7 |
|
| 4,732 |
|
| 3.4 |
| ||||
Eliminations |
| (45,333 | ) |
| (4.4 | ) |
| (3,921 | ) |
| (2.9 | ) | ||||
Total | Ps. | 1,038,208 |
|
| 100.0 | % | Ps. | 139,557 |
|
| 100.0 | % |
| YEAR ENDED DECEMBER 31, 2021 | |||||||||||||||
| OPERATING REVENUES | OPERATING INCOME | ||||||||||||||
(in millions of Mexican pesos) | (as a% of to- tal operating revenues) | (in millions of Mexican pesos) | (as a% of total operat- ing income) | |||||||||||||
Mexico Wireless | Ps. | 243,261 | 28.4% | Ps. | 77,784 | 46.8% | ||||||||||
Mexico Fixed | 102,427 | 12.0 | 21,100 | 12.7 | ||||||||||||
Brazil | 152,774 | 17.9 | 21,867 | 13.2 | ||||||||||||
Colombia | 79,673 | 9.3 | 15,165 | 9.1 | ||||||||||||
Southern Cone | 62,359 | 7.3 | 2,145 | 1.3 | ||||||||||||
Andean Region | 52,962 | 6.2 | 7,458 | 4.5 | ||||||||||||
Central America | 48,567 | 5.7 | 8,217 | 4.9 | ||||||||||||
Caribbean | 39,929 | 4.7 | 8,661 | 5.2 | ||||||||||||
Europe | 113,838 | 13.3 | 13,421 | 8.1 | ||||||||||||
Eliminations | (40,255) | (4.7) | (9,685) | (5.8) | ||||||||||||
Total | Ps. | 855,535 | 100.0% | Ps. | 166,133 | 100.0% |
| YEAR ENDED DECEMBER 31, 2020 | |||||||||||||||
| OPERATING REVENUES | OPERATING INCOME | ||||||||||||||
(in millions of Mexican pesos) | (as a% of to- tal operating revenues) | (in millions of Mexican pesos) | (as a% of total operat- ing income) | |||||||||||||
Mexico Wireless | Ps. | 232,242 | 27.7% | Ps. | 70,852 | 48.7% | ||||||||||
Mexico Fixed | 91,589 | 10.9 | 11,204 | 7.7 | ||||||||||||
Brazil | 168,073 | 20.0 | 25,204 | 17.3 | ||||||||||||
Colombia | 77,635 | 9.2 | 15,112 | 10.4 | ||||||||||||
Southern Cone | 56,705 | 6.8 | 1,877 | 1.3 | ||||||||||||
Andean Region | 53,935 | 6.4 | 8,699 | 6.0 | ||||||||||||
Central America | 48,195 | 5.7 | 4,005 | 2.8 | ||||||||||||
Caribbean | 38,624 | 4.6 | 6,701 | 4.6 | ||||||||||||
Europe | 111,472 | 13.3 | 13,160 | 9.0 | ||||||||||||
Eliminations | (38,763) | (4.6) | (11,311) | (7.8) | ||||||||||||
Total | Ps. | 839,707 | 100% | Ps. | 145,503 | 100% |
YEAR ENDED DECEMBER 31, 2017 | ||||||||||||||||
OPERATING REVENUES | OPERATING INCOME | |||||||||||||||
(in millions of
|
(as a % of total
| (in millions of
|
(as a % of total
| |||||||||||||
Mexico Wireless | Ps. | 206,771 |
|
| 20.2 | % | Ps. | 50,666 |
|
| 50.6 | % | ||||
Mexico Fixed |
| 98,485 |
|
| 9.6 |
|
| 7,922 |
|
| 7.9 |
| ||||
Brazil |
| 215,322 |
|
| 21.1 |
|
| 11,601 |
|
| 11.6 |
| ||||
Colombia |
| 72,740 |
|
| 7.1 |
|
| (4,704 | ) |
| (4.7 | ) | ||||
Southern Cone |
| 82,344 |
|
| 8.1 |
|
| 11,676 |
|
| 11.7 |
| ||||
Andean Region |
| 56,571 |
|
| 5.5 |
|
| 5,650 |
|
| 5.6 |
| ||||
Central America |
| 44,282 |
|
| 4.3 |
|
| 5,252 |
|
| 5.2 |
| ||||
United States |
| 148,590 |
|
| 14.5 |
|
| 2,915 |
|
| 2.9 |
| ||||
Caribbean |
| 35,215 |
|
| 3.4 |
|
| 4,752 |
|
| 4.7 |
| ||||
Europe |
| 93,644 |
|
| 9.2 |
|
| 4,524 |
|
| 4.5 |
| ||||
Eliminations |
| (32,330 | ) |
| (3.0 | ) |
| (111 | ) |
| (0.0 | ) | ||||
Total | Ps. | 1,021,634 |
|
| 100.0 | % | Ps. | 100,143 |
|
| 100.0 | % |
YEAR ENDED DECEMBER 31, 2016 | ||||||||||||||||
OPERATING REVENUES | OPERATING INCOME | |||||||||||||||
(in millions of
|
(as a % of total
| (in millions of
|
(as a % of total
| |||||||||||||
Mexico Wireless | Ps. | 203,567 |
|
| 20.9 | % | Ps. | 48,220 |
|
| 44.0 | % | ||||
Mexico Fixed |
| 102,216 |
|
| 10.5 |
|
| 12,276 |
|
| 11.2 |
| ||||
Brazil |
| 197,357 |
|
| 20.2 |
|
| 6,325 |
|
| 5.8 |
| ||||
Colombia |
| 67,589 |
|
| 6.9 |
|
| 11,210 |
|
| 10.2 |
| ||||
Southern Cone |
| 72,330 |
|
| 7.4 |
|
| 8,317 |
|
| 7.6 |
| ||||
Andean Region |
| 56,131 |
|
| 5.8 |
|
| 6,087 |
|
| 5.6 |
| ||||
Central America |
| 42,421 |
|
| 4.3 |
|
| 3,831 |
|
| 3.5 |
| ||||
United States |
| 140,856 |
|
| 14.4 |
|
| 1,221 |
|
| 1.1 |
| ||||
Caribbean |
| 36,498 |
|
| 3.7 |
|
| 6,143 |
|
| 5.6 |
| ||||
Europe |
| 86,979 |
|
| 8.9 |
|
| 5,389 |
|
| 4.9 |
| ||||
Eliminations |
| (30,532 | ) |
| (3.0 | ) |
| 591 |
|
| 0.5 |
| ||||
Total | Ps. | 975,412 |
|
| 100.0 | % | Ps. | 109,610 |
|
| 100.0 | % |
27
|
INTERPERIOD SEGMENT COMPARISONS
2018 COMPARED TO 2017
2021.
added services by our wireless subscribers, including activity from messaging, content downloading, mobile applications and social media, and an increase in revenues from service plans offering higher data capacity.
2020.
coverage.
2021.
2.6%.
higher information technology and customer service costs.
28
Brazil
2021.
revenues.
2020.
2021.
revenues.
2020.
29
|
Cone—Cone - Argentina, Chile, Paraguay and Uruguay
2021.
2020.
2021.
postpaid mobile.
30
America—America - Guatemala, El Salvador, Honduras, Nicaragua, Panama and Costa Rica
2021.
2020.
the prior year, which was not recognized in 2021.
Caribbean—Costa Rica.
number of fixed voice RGUs for 20182021 decreased by 8.1%1.2% over 2017,2020, the number of broadband RGUs decreasedincreased by 6.4%4.6% and the number of Pay TV RGUs increased by 3.9%5.3%, resulting in a decreasean increase in total fixed RGUs in our Caribbean segment of 5.7%1.9%, or 15450 thousand, to approximately 2.6 million as of December 31, 2018.
2021.
Rico.
Republic.
United States
fixed data services, and the effects of the cost savings program, partially offset by the depreciation of the Dominican Peso.
Segment operating revenues for 2018 increased by 3.1% over 2017. Adjusted segment operating revenues for 2018 increased by 1.6% over 2017. This increase in segment operating revenues principally reflects higher mobile voice and data usage and revenues driven by the success of existing unlimited data plans and increased equipment sales ofhigher-end smartphones.
31
|
Segment operating income for 2018 decreased by 8.6% over 2017. Adjusted segment operating income for 2018 decreased by 17.4% over 2017.
Segment operating margin was 1.7% in 2018, as compared to 2.0% in 2017. Adjusted segment operating margin was 6.8% in 2018, as compared to 8.4% in 2017. This decrease in segment operating margin for 2018 principally reflects an increase in content costs as a result of increased data usage.
Europe
The number of prepaid wireless subscribers for 2018 decreased by 5.8% over 2017,2020, and the number of postpaid wireless subscribers increased by 4.1%6.0%, resulting in an increase in the total number of wireless subscribers in our Europe segment of 1.7%4.1%, or approximately 342901 thousand, to approximately 21.022.8 million as of December 31, 2018.2021. The number of fixed voice RGUs for 20182021 decreased by 2.9%1.7% over 2017,2020, the number of broadband RGUs increased by 2.4%1.8% and the number of Pay TV RGUs increased by 15.9%1.1%, resulting in an increase in total fixed RGUs in our Europe segment of 3.7%0.5%, or 22431 thousand, to approximately 6.26.1 million as of December 31, 2018.
2021.
services.
2020. Segment operating margin was 4.7%11.8% in 2018,2021, the same as compared to 4.8% in 2017.2020. Adjusted segment operating margin was 4.8%13.6% in 2018,2021, as compared to 5.0%11.7% in 2017.2020. This decreaseincrease in adjusted segment operating margin for 20182021 principally reflects increases in costs related to marketing and subscriber acquisition.
2017 COMPARED TO 2016
Mexico Wireless
The number of prepaid wireless subscribers for 2017 increased by 0.2% over 2016, and the number of postpaid wireless subscribers increased by 6.2%, resulting in an increase in the total number of wireless subscribers in Mexico of 1.2%, or 902 thousand, to approximately 73.9 million as of December 31, 2017.
Segment operating revenues for 2017 increased by 1.6% over 2016. Adjusted segment operating revenues for 2017 increased by 1.2% over 2016. This increase in segment operating revenues principally reflects an increase of 18.9% in mobile data revenues, driven by increased use of value-added services by our wireless subscribers, including activity from messaging, content downloading, mobile applications and social media, and an increase in revenues from service plans offering higher data capacity. The increase in segment operating revenues was partially offset by a decrease of 24.0% in mobile voice revenues, reflecting a decrease in the average wireless rates per user.
Segment operating income for 2017 increased by 5.1% over 2016. Adjusted segment operating income for 2017 increased by 0.9% over 2016.
Segment operating margin was 24.5% in 2017, as compared to 23.7% in 2016. Adjusted segment operating margin for this segment was 28.8% in 2017, which remained stable in comparison to 28.9% in 2016. The segment operating margin in 2017 principally reflects costs related to interconnection rates, licensing fees, mobile site infrastructure rentals, maintenance and roaming charges.
Mexico Fixed
The number of fixed voice RGUs in Mexico for 2017 decreased by 2.8% over 2016, and the number of broadband RGUs in Mexico increased by 0.4%, resulting in a decrease in total fixed RGUs in Mexico of 1.5% over 2016, or 327 thousand, to approximately 21.9 million as of December 31, 2017.
32
Segment operating revenues for 2017 decreased by 3.7% over 2016. Adjusted segment operating revenues for 2017 decreased by 3.9% over 2016. This decrease in segment operating revenues principally reflects a fall in fixed voice revenues of 8.2%, driven by RGU disconnections and a fall in long-distance calls. The decrease in segment operating revenues was partially offset by an increase in fixed data revenues of 2.9%, principally due to higher revenues from broadband and corporate network services.
Segment operating income for 2017 decreased by 35.5% over 2016. Adjusted segment operating income for 2017 decreased by 49.1% over 2016.
Segment operating margin was 8.0% in 2017, as compared to 12.0% in 2016. Adjusted segment operating margin was 4.3% in 2017, as compared to 8.3% in 2016. The decrease in the segment operating margin in 2017 principally reflects increases in costs associated with customer service and service quality improvements, as well as network maintenance.
Brazil
The number of prepaid wireless subscribers for 2017 decreased by 7.6% over 2016, and the number of postpaid wireless subscribers increased by 11.1%, resulting in a decrease in the total number of wireless subscribers in Brazil of 1.9%, or 1.1 million, to approximately 59.0 million as of December 31, 2017. The number of fixed voice RGUs for 2017 decreased by 2.8% over 2016, the number of broadband RGUs increased by 4.2%, and the number of Pay TV RGUs decreased by 5.3%, resulting in a decrease in total fixed RGUs in Brazil of 2.2%, or 812 thousand, to approximately 35.9 million as of December 31, 2017.
Segment operating revenues for 2017 increased by 9.1% over 2016. Adjusted segment operating revenues for 2017 decreased by 1.4% over 2016. This decrease in segment operating revenues principally reflects a fall in mobile voice, fixed voice and Pay TV revenues of 18.8%, 15.1% and 0.4%, respectively, in 2017 over 2016, driven by RGU disconnections and lower traffic reflecting a decrease in disposable income following an overall economic downturn in the country. The decrease in segment operating revenues was partially offset by higher mobile data and fixed data revenues of 28.1% and 5.2%, respectively, in 2017 over 2016. Mobile data revenues increased principally due to the
usage of social networking platforms, cloud services and content, and fixed data revenues increased principally due to an increase in broadband RGUs and corporate network services.
Segment operating income for 2017 increased by 83.4% over 2016. Adjusted segment operating income for 2017 increased by 81.1% over 2016.
Segment operating margin was 5.4% in 2017, as compared to 3.2% in 2016. Adjusted segment operating margin was 4.2% in 2017, as compared to 2.3% in 2016. The increase in segment operating margin in 2017 principally reflects synergy gains in marketing, network maintenance, information technology, subscriber acquisition and customer service related to the ongoing integration of our three Brazilian subsidiaries, which have collectively driven our costs down.
Colombia
The number of prepaid wireless subscribers for 2017 increased by 0.4% over 2016, and the number of postpaid wireless subscribers increased by 5.0%, resulting in an increase in the total number of wireless subscribers in Colombia of 1.4%, or 399 thousand, to approximately 29.4 million as of December 31, 2017. The number of fixed voice RGUs for 2017 increased by 11.1% over 2016, the number of broadband RGUs increased by 8.1% and the number of Pay TV RGUs increased by 3.3%, resulting in an increase in total fixed RGUs in Colombia of 7.1%, or 450 thousand, to approximately 6.8 million as of December 31, 2017.
Segment operating revenues for 2017 increased by 7.6% over 2016. Adjusted segment operating revenues for 2017 increased by 2.8% over 2016. This increase in segment operating revenues principally reflects increases in fixed data revenues, mobile data revenues, fixed voice revenues and Pay TV revenues, which increased by 9.7%, 14.3%, 11.7% and 15.9%, respectively, in 2017, principally due to an increase in sales of bundled packages of wireless services, higher demand for data plans and an increase in subscribers for internet services. The increase in segment operating revenues was partially offset by a decrease of 13.9% in mobile voice revenues, driven by more competitive commercial offerings in response to pricing pressure from competitors.
33
|
Segment operating income for 2017 decreased by 142.0% over 2016. Adjusted segment operating income for 2017 decreased by 125.2% over 2016. Excluding the effects of the approximately U.S.$1.0 billion arbitration payment in Colombia, adjusted segment operating income for 2017 increased by 15.2%.
Segment operating margin was (6.5)% in 2017, as compared to 16.6% in 2016. Adjusted segment operating margin was (5.0)% in 2017, as compared to 20.5% in 2016. The decrease in segment operating margin for 2017 principally reflects higher costs related to the arbitration payment in Colombia, content licensing and maintenance of our networks, which was partially offset by Comcel’s cost savings program.
Southern Cone—Argentina, Chile, Paraguayprogram and Uruguay
The number of prepaid wireless subscribers for 2017 increased by 2.0% over 2016, andimproved performance in all the number of postpaid wireless subscribers increased by 2.9%, resulting in an increase in the total number of wireless subscribers in our Southern Cone segment of 2.3%, or 699 thousand, to approximately 31.1 million as of December 31, 2017. The number of fixed voice RGUs for 2017 increased by 4.6% over 2016, the number of broadband RGUs increased by 9.1%, and the number of Pay TV RGUs increased by 0.6%, resulting in an increase in total fixed RGUs in our Southern Cone segment of 4.2%, or 81 thousand, to approximately 2.0 million as of December 31, 2017.
Segment operating revenues for 2017 increased by 13.8% over 2016. Adjusted segment operating revenues for 2017 increased by 19.0% over 2016. This increase principally reflects an aggregate increase of 22.5% in Argentina, Paraguay and Uruguay and an increase of 10.9% in Chile. This increase was driven by higher data usage, particularly in the form of mobile data, video streaming, content downloading and service package purchases, in Argentina and Chile. For this segment, we analyze results in Argentina, Paraguay and Uruguay in terms of the Argentine peso, because Argentina accounts for the major portion of the operations in these three countries.
Segment operating income for 2017 increased by 40.4% over 2016. Adjusted segment operating income for 2017 increased by 56.2% over 2016. This increase principally reflects an increase in adjusted operating income of 16.8%
in Argentina, Paraguay and Uruguay, which was partially offset by an increase in adjusted operating loss of 30.8% in Chile.
Segment operating margin was 14.2% in 2017, as compared to 11.5% in 2016. Adjusted segment operating margin was 17.0% in 2017, which remained stable in comparison to 17.0% in 2016. The segment operating margin in 2017 principally reflected the cost saving programs of our subsidiaries in the Southern Cone.
Andean Region—Ecuador and Peru
The number of prepaid wireless subscribers for 2017 decreased by 4.3% over 2016, and the number of postpaid wireless subscribers increased by 2.5%, resulting in a decrease in the total number of wireless subscribers in our Andean Region segment of 2.2%, or 450 thousand, to approximately 20.4 million as of December 31, 2017. The number of fixed voice RGUs for 2017 decreased by 7.1% over 2016, the number of broadband RGUs increased by 5.4% and the number of Pay TV RGUs decreased by 7.8%, resulting in a decrease in total fixed RGUs in our Andean Region segment of 3.0%, or 55 thousand, to approximately 1.8 million as of December 31, 2017.
Segment operating revenues for 2017 increased by 0.8% over 2016. Adjusted segment operating revenues for 2017 decreased by 2.4% over 2016. This decrease principally reflects a decrease of 8.9% in Ecuador, which was partially offset by an increase of 3.6% in Peru. This decrease was driven by lower revenues from our wireless and fixed voice operations, an increase in tax obligations and bad debt expenses in Ecuador and competitive pricing practices in Peru, which were partially offset by higher revenues from mobile data and higher revenues from fixed data, especially broadband and corporate data services.
Segment operating income for 2017 decreased by 7.2% over 2016. Adjusted segment operating income for 2017 increased by 0.9% over 2016. This increase principally reflects an increase of 138.7% in Peru, which was partially offset by a decrease of 21.4% in Ecuador.
Segment operating margin was 10.0% in 2017, as compared to 10.8% in 2016. Adjusted segment operating margin was 15.9% in 2017, as compared to 15.1% in 2016. This increase principally reflects gains from our cost-savings program and
34
lower direct taxes in Ecuador as well as operation, information technology, marketing and sales costs, which was partially offset by postpaid subscriber acquisition costs driven by a more aggressively competitive environment in Peru.
Central America—Guatemala, El Salvador, Honduras, Nicaragua, Panama and Costa Rica
The number of prepaid wireless subscribers for 2017 increased by 5.4% over 2016, and the number of postpaid wireless subscribers increased by 6.7%, resulting in an increase in the total number of wireless subscribers in our Central America segment of 5.6%, or approximately 842 thousand, to approximately 15.9 million as of December 31, 2017. The number of fixed voice RGUs for 2017 decreased by 0.1% over 2016, the number of broadband RGUs increased by 15.1% and the number of Pay TV RGUs increased by 3.9%, resulting in an increase in total fixed RGUs in our Central America segment of 7.8%, or 419 thousand, to approximately 5.8 million as of December 31, 2017.
Segment operating revenues for 2017 increased by 4.4% over 2016. Adjusted segment operating revenues for 2017 increased by 3.2% over 2016. This increase principally reflects higher mobile data, fixed data and Pay TV revenues in Central America, which was partially offset by decreases in mobile voice and fixed voice in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica and decreases in mobile voice and Pay TV in Panama. For this purpose, we analyze adjusted segment results in U.S. dollars because it is the functional currency for our operations in El Salvador and Panama, and the currencies in Costa Rica, Guatemala, Honduras and Nicaragua are relatively stable against the U.S. dollar.
Segment operating income for 2017 increased by 37.1% over 2016. Adjusted segment operating income for 2017 increased by 41.2% over 2016. This increase principally reflects an increase of 4.2% in Guatemala, an increase of 10.2% in El Salvador, an increase of 56.2% in Honduras, an increase of 41.2% in Nicaragua, an increase of 30.0% in Panama and an increase of 1.4% in Costa Rica.
Segment operating margin was 11.9%, as compared to 9.0% in 2016. Adjusted segment operating margin was 13.1% in
2017, as compared to 9.6% in 2016. This increase principally reflects lower costs related to maintenance, customer service and customer acquisition.
Caribbean—Dominican Republic and Puerto Rico
The number of prepaid wireless subscribers for 2017 increased by 3.0% over 2016, and the number of postpaid wireless subscribers increased by 4.1%, resulting in an increase in the total number of wireless subscribers in our Caribbean segment of 3.4%, or approximately 184 thousand, to approximately 5.6 million as of December 31, 2017. The number of fixed voice RGUs for 2017 decreased by 1.3% over 2016, the number of broadband RGUs increased by 1.6% and the number of Pay TV RGUs increased by 11.4%, resulting in an increase in total fixed RGUs in our Caribbean segment of 1.4%, or 37 thousand, to approximately 2.7 million as of December 31, 2017.
Segment operating revenues for 2017 decreased by 3.5% over 2016. Adjusted segment operating revenues for 2017 decreased by 5.5% over 2016. This decrease in segment operating revenues principally reflects lower revenues from wireless and fixed voice services in Puerto Rico, which was partially offset by an increase in segment mobile data revenues and an increase in Pay TV revenues in the Dominican Republic. We analyze segment results in U.S. dollars because it is the functional currency in our operations in Puerto Rico, and the currency in the Dominican Republic is relatively stable against the U.S. dollar.
Segment operating income for 2017 decreased by 22.6% over 2016. Adjusted segment operating income for 2017 decreased by 23.8% over 2016. This decrease principally reflects a decrease of 5.7% in the Dominican Republic and a decrease of 102.2% in Puerto Rico.
Segment operating margin was 13.5% in 2017, as compared to 16.8% in 2016. Adjusted segment operating margin was 13.8% in 2017, as compared to 17.2% in 2016. This decrease principally reflects higher unusual costs related to the reconstruction and operation of our networks in the aftermath of Hurricane Maria and bad debt expense in Puerto Rico and higher costs related to upgrades to our information technology systems in the Dominican Republic, which were partially offset by our corporate cost-savings program.
35
|
United States
The number of prepaid wireless subscribers for 2017 decreased by 11.3% over 2016, or approximately 2.9 million, to approximately 23.1 million total wireless subscribers in the United States as of December 31, 2017.
Segment operating revenues for 2017 increased by 5.5% over 2016. Adjusted segment operating revenues for 2017 increased by 4.1% over 2016. This increase in segment operating revenues principally reflects higher mobile voice and data usage and revenues driven by the success of existing unlimited data plans, principally those offered under our Straight Talk brand and our recently acquired Walmart Family Mobile brand.
Segment operating income for 2017 increased by 138.8% over 2016. Adjusted segment operating income for 2017 increased by 15.0% over 2016.
Segment operating margin was 2.0% in 2017, as compared to 0.9% in 2016. Adjusted segment operating margin was 8.4% in 2017, as compared to 7.6% in 2016. This increase principally reflects a decrease in subscriber acquisition costs.
Europe
The number of prepaid wireless subscribers for 2017 decreased by 10.4% over 2016, and the number of postpaid wireless subscribers increased by 3.6%, resulting in a decrease in the total number of wireless subscribers in our
Europe segment of 0.2%, or approximately 50 thousand, to approximately 20.7 million as of December 31, 2017. The number of fixed voice RGUs for 2017 decreased by 3.7% over 2016, the number of broadband RGUs increased by 3.3% and the number of Pay TV RGUs increased by 10.7%, resulting in an increase in total fixed RGUscountries in our Europe segmentsegment.
36
2020. We believe our working capital is sufficient for our present requirements. requirements, and we anticipate generating sufficient cash to satisfy our long-term liquidity needs.
and Ps.9.0 billion in purchase obligations. On the same date, we had approximately Ps.73.5 billion in debt and contractual obligations due between 2026 and 2027, including approximately Ps.54.9 billion of principal and amortization, Ps.13.0 billion in long-term lease debt, and Ps.5.5 billion in purchase obligations. On the same date, we had approximately Ps.277.2 billion in debt and contractual obligations due after 2027, including approximately Ps.254 billion of principal and amortization, Ps.11.6 billion in long-term lease debt, and Ps.11.7 billion in purchase obligations. |
OFF-BALANCE SHEET ARRANGEMENTS
As of December 31, 2018, we had nooff-balance sheet arrangements that require disclosure under applicable SEC regulations.
37
|
CONTRACTUAL OBLIGATIONS
The following table summarizes certain contractual obligations as of December 31, 2018. Many of our obligations are denominated in currencies other than Mexican pesos. The table does not include accounts payable, pension liabilities, interest payments or payments under derivatives contracts. See note 16 to our audited consolidated financial statements included in this annual report.
PAYMENTS DUE BY PERIOD
| ||||||||||||||||||||
LESS THAN
| ||||||||||||||||||||
Total |
1 Year |
1-3 Years |
4-5 Years |
After 5 Years | ||||||||||||||||
(in millions of Mexican pesos) | ||||||||||||||||||||
CONTRACTUAL OBLIGATIONS AS OF DECEMBER 31, 2018 |
| |||||||||||||||||||
Equipment leases, real estate leases and mobile site rentals | Ps. | 138,052 | Ps. | 24,057 | Ps. | 37,652 | Ps. | 26,317 | Ps. | 50,026 | ||||||||||
Short-term debt | 96,230 | 96,230 | — | — | — | |||||||||||||||
Long-term debt | 542,692 | — | 263,402 | 53,923 | 225,367 | |||||||||||||||
Purchase obligations | 225,085 | 88,234 | 123,528 | 13,323 | — | |||||||||||||||
Total | Ps. | 1,002,059 | Ps. | 208,521 | Ps. | 424,582 | Ps. | 93,563 | Ps. | 275,393 |
Other than the amounts in the table above, we had no other outstanding material purchase commitments as of December 31, 2018. We enter into a number of supply, advertising and other contracts in the ordinary course of business, but those contracts are not material to our liquidity.
BORROWINGS
2020.
38
| ||||
DEBT | | |||
(millions of Mexican pesos) | ||||
| ||||
DENOMINATED IN U.S. DOLLARS | ||||
América Móvil |
|
20,584 | ||
América Móvil 2.875% Senior Notes due |
20,584 | |||
|
| |||
|
| |||
América Móvil 6.375% Senior Notes due 2035 |
20,199 | |||
América Móvil 6.125% Senior Notes due 2037 |
7,600 | |||
América Móvil 6.125% Senior Notes due 2040 |
41,167 | |||
América Móvil 4.375% Senior Notes due 2042 |
23,671 | |||
América Móvil 4.375% Senior Notes due 2049 |
|
25,729 | ||
| 159,534 | |||
DENOMINATED IN MEXICAN PESOS | ||||
|
|
| ||
|
| |||
América Móvil 6.450% Senior Notes due 2022 | 22,500 | |||
América Móvil 7.125% Senior Notes due 2024 | 11,000 | |||
América Móvil 0.000% Domestic Senior Notes due 2025 |
5,285 | |||
América Móvil 8.460% Senior Notes due 2036 | 7,872 | |||
Telmex 8.360% Domestic Senior Notes due 2037 | 5,000 | |||
Total |
|
51,657 | ||
| ||||
TKA 4.000% Senior Notes due |
|
17,566 | ||
TKA 3.500% Senior Notes due |
7,027 | |||
|
| |||
|
| |||
|
| |||
|
| |||
|
| |||
América Móvil 3.259% Senior Notes due 2023 |
17,566 | |||
América Móvil 1.500% Senior Notes due 2024 |
19,909 | |||
Exchangeable Bond 0.00% due |
49,116 | |||
TKA 1.500% Senior Notes due 2026 | 17,566 | |||
América Móvil 0.750% Senior Notes due 2027 | 23,422 | |||
América Móvil 2.125% Senior Notes due 2028 |
15,224 | |||
Total |
|
167,396 |
DEBT | ||||
(millions of Mexican pesos) | ||||
|
|
| ||
|
| |||
|
| |||
|
| |||
|
|
|
39
|
| |||||
| |||||
| |||||
América Móvil |
|
13,925 | |||
América Móvil 5.750% Senior Notes due 2030 |
|
18,102 | |||
| 8,355 | ||||
América Móvil 4.375% Senior Notes due 2041 | 20,887 | ||||
Total | 61,269 | ||||
DENOMINATED IN | |||||
América Móvil |
|
2,326 | |||
Total |
|
2,326 | |||
| |||||
América Móvil 3.961% Senior Notes due |
|
3,776 | |||
Total |
3,776 | ||||
|
| ||||
|
| ||||
|
| ||||
|
| ||||
|
|
| |||
DENOMINATED IN BRAZILIAN REAIS | |||||
| 9,221 | ||||
Claro Brasil 106.000% of CDI Domestic Senior Notes due 2022 | 7,377 | ||||
Claro Brasil 106.500% of CDI Domestic Senior Notes due 2022 | 3,688 | ||||
Total | 20,286 | ||||
HYBRID NOTES | |||||
DENOMINATED IN | |||||
América Móvil |
|
| |||
|
|
| |||
| 12,882 | ||||
|
|
| |||
Total |
|
| |||
| 12,882 | ||||
BANK DEBT AND OTHER |
|
| |||
DENOMINATED IN |
|
| |||
DENOMINATED IN EUROS |
|
| |||
DENOMINATED IN |
|
| |||
DENOMINATED IN |
|
| |||
DENOMINATED IN PERUVIAN SOLES |
|
| |||
DENOMINATED IN OTHER CURRENCIES |
|
| |||
Total |
|
84,904 | |||
Total Debt | 564,030 | ||||
Less short-term debt and current portion of long-term debt |
|
| |||
|
|
| |||
| 145,223 | ||||
Total Long-term Debt |
|
418,807 | |||
EQUITY |
| ||||
Capital stock |
|
| |||
Total retained earnings |
447,690 | ||||
Other comprehensive income (loss) items |
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| |||
Non-controlling interest | 64,407 | ||||
Total Equity | 454,041 | ||||
Total Capitalization (total long-term debt plus equity) |
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872,848 |
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| AS OF DECEMBER 31, 2021 | |||||||||||
| PARENT | GUARANTOR | ||||||||||
Current assets | Ps. | 25,288 | Ps. | 48,552 | ||||||||
Total assets | 56,794 | 221,510 | ||||||||||
Current liabilities | 80,566 | 177,133 | ||||||||||
Total liabilities | 420,630 | 190,518 | ||||||||||
Total revenues | Ps. | - | Ps. | 169,203 | ||||||||
Operating Income | (27,424) | 99,246 | ||||||||||
Net profit for the year | (66,596) | 100,072 |
For additional information on market risk, see Note 2 v(ii) to our audited consolidated financial statements included in this annual report.
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USE OF ESTIMATES IN CERTAIN ACCOUNTING POLICIES
In preparing our financial statements, we make estimates concerning a variety of matters. Some of these matters are highly uncertain, and our estimates involve judgments we make based on the information available to us. In the discussion below, we have identified several of these matters for which our financial presentation would be materially affected if either (i) we used different estimates that we could reasonably have used or (ii) in the future, we change our estimates in response to changes that are reasonably likely to occur.
The discussion addresses only those estimates that we consider most important based on the degree of uncertainty and the likelihood of a material impact if we used a different estimate. There are many other areas in which we use estimates about uncertain matters, but the reasonably likely effect of changed or different estimates is not material to our financial presentation.
ESTIMATED USEFUL LIVES OF PLANT, PROPERTY AND EQUIPMENT
We estimate the useful lives of particular classes of plant, property and equipment in order to determine the amount of depreciation expense to be recorded in each period. Depreciation expense is a significant element of our costs and expenses, amounting in 2018 to Ps.129.1 billion, or 14.4% of our operating costs and expenses. See note 10 to our audited consolidated financial statements included in this annual report.
We currently depreciate most of our property, plant and equipment based on an estimated useful life determined upon the expected particular conditions of operations and maintenance in each of the countries in which we operate.
The estimates are based on our historical experience with similar assets, anticipated technological changes and other factors, taking into account the practices of other telecommunications companies. We review estimated useful lives each year to determine whether they should be changed, and, at times, we have changed them for particular classes of assets. We may shorten the estimated useful life of an asset class in response to technological changes,
changes in the market or other developments, which would result in higher depreciation expense.
IMPAIRMENT OF LONG-LIVED ASSETS
We have large amounts of long-lived assets, including property, plant and equipment, intangible assets, investments in associates and goodwill, on our balance sheet. Under IFRS, we are required to test long-lived assets for impairment when circumstances indicate a potential impairment or, in some cases, at least on an annual basis. The impairment analysis for long-lived assets requires us to estimate the recovery value of the asset, which is the greater of its fair value (minus any disposal costs) and its value in use. To estimate the fair value of a long-lived asset, we typically take into account recent market transactions, or, if no such transactions can be identified, we use a valuation model that requires the making of certain assumptions and estimates. Similarly, to estimate the value in use of long-lived assets, we typically make various assumptions about the future prospects for the business to which the asset relates, consider market factors specific to that business and estimate discounted future cash flows to be generated by that business. Based on this impairment analysis, including all assumptions and estimates related thereto, as well as guidance provided by IFRS relating to the impairment of long-lived assets, we determine whether we need to recognize an impairment to reduce the carrying value of the asset as stated on our balance sheet. Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors, such as industry and economic trends, and internal factors, such as changes in our business strategy and our internal forecasts. Different assumptions and estimates could materially impact our reported financial results. More conservative assumptions of the anticipated future benefits from these businesses could result in impairment charges, which would decrease net income and result in lower asset values on our balance sheet. Conversely, less conservative assumptions could result in lower or no impairment charges, higher net income and higher asset values. See note 2 ab) to our audited consolidated financial statements included in this annual report.
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DEFERRED INCOME TAXES
We record deferred tax assets based on the amount that we believe is more likely than not to be realized. In assessing the future realization of deferred tax assets, we consider future taxable income and ongoing tax planning strategies. In the event that our estimates of projected future taxable income and benefits from tax planning strategies are lowered, or changes in current tax regulations are enacted that would impose restrictions on the timing or the extent of our ability to utilize the tax benefits of net operating loss carry forwards in the future, an adjustment to the recorded amount of deferred tax assets would be made.
ACCRUALS
Accruals are recorded when, at the end of the period, we have a present obligation as a result of past events whose settlement requires an outflow of resources that is considered probable and can be measured reliably. This
obligation may be legal or constructive, arising from, but not limited to, regulation, contracts, common practice or public commitments which have created a valid expectation for third parties that we will assume certain responsibilities. The amount recorded is the best estimation performed by our management in respect of the expenditure that will be required to settle the obligations, considering all the information available at the date of our financial statements, including the opinion of external experts, such as legal advisors or consultants. Accruals are adjusted to account for changes in circumstances for ongoing matters and the establishment of additional accruals for new matters.
If we are unable to reliably measure the obligation, no accrual is recorded and information is then presented in the notes to our audited consolidated financial statements. Because of the inherent uncertainties in this estimation, actual expenditures may be different from the originally estimated amount recognized.
LABOR OBLIGATIONS
We recognize liabilities on our balance sheet and expenses in our statement of comprehensive income to reflect our obligations related to our post-retirement seniority premiums, pension and retirement plans in the countries in which we operate and offer defined contribution and benefit pension plans. The amounts we recognize are determined on an actuarial basis that involves many estimates and assumptions for post-retirement pension and termination benefits in accordance with IFRS.
We use estimates in four specific areas that have a significant effect on these amounts: (i) the rate of return we assume our labor obligation plans will achieve on their investments, (ii) the rate of increase in salaries that we assume we will observe in future years, (iii) the discount rates that we use to calculate the present value of our future obligations and (iv) the expected rate of inflation. The assumptions we have applied are identified in note 17 to our audited consolidated financial statements included in this annual report. These estimates are determined based on actuarial studies performed by independent experts using the projected unit-credit method.
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services and technologies, changes in consumer preferences, demographic trends, economic conditions and discount pricing strategies by competitors.
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Changes in the regulatory framework for telecommunications services in Mexico may have a material adverse effect on our business and results of operations
The Mexican legal framework for the regulation of telecommunications and broadcasting services has changed, beginning with constitutional amendments in 2013, implementing legislation in 2014, and the establishment in 2014 of a new regulator, the Federal Telecommunications Institute (Instituto Federal deTelecomunicaciones, or the “IFT”). The IFT determined in 2014 that our operating subsidiaries in Mexico are part of an “economic interest group” that is a “preponderant economic agent” in the Mexican telecommunications sector, and, based on this determination, the IFT has imposed extensive asymmetric regulations on our Mexican fixed-line and wireless businesses. The asymmetric regulations took effect in 2015 and were amended in 2017, when the IFT added new requirements, including the functional separation of certain assets used to provide local loop unbundling services. For further information, see “Regulation” under Part III of this annual report. The IFT measures and biennial reviews of the asymmetric measures applicable to us have adversely affected the results of our Mexican operations, and we expect that those effects will continue.
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among other things, a decrease in the quality of our network and service and in our ability to meet the demands of our customers.
government the right to expropriatetemporarily seize our concessions or to take over the management of our networks, facilities and personnel in cases of failures to meet obligations under our concession agreements, imminent danger to national security, internal peace or the national economy, natural disasters and public unrest. See “Regulation” under Part VI of this annual report.
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us, these proceedings may have a material adverse effect on our business, results of operations, financial condition or prospects. In addition, in some jurisdictions, challenges to tax assessments require the posting of a bond or security for the contested amount, which may reduce our flexibility in operating our business. Our significant tax assessments are described in note 16 to our audited consolidated financial statements included in this annual report.
earthquakes.
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However, it is difficult to detect or prevent evolving forms of cybersecurity incidents, and our systems, and those of our third-party service providers and of our customers, are vulnerable to cybersecurity incidents.
We are subject to data privacy regulations in the countries where we operate. Complying with such regulations may expose us to increased costs and limit our ability to transfer data between certain jurisdictions, which may adversely affect our operations.
economic conditions could lead to an increase in churn, particularly among our prepaid subscribers.
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divestments may also adversely affect our prospects. For example, we may be unable to fully implement our business plans and strategies for the combined businesses due to regulatory limitations, and we may face regulatory restrictions in our provision of combined services in some of the countries in which we operate. To the extent that we incur higher integration costs or achieve lower revenue benefits or fewer cost savings than expected, or if we are required to recognize impairments of acquired assets, investments or goodwill, our results of operations and financial condition may suffer.
meet future advances in competing technologies on a
timely basis or at an acceptable cost, we could lose subscribers to our competitors. In general, the development of new services in our industry requires us to anticipate and respond to the varied and continually changing demands of our subscribers. It also requires significant capital expenditure, including investment in the continual maintenance and upgrading of our networks, in order to expand coverage, increase our capacity to absorb higher bandwidth usage and adapt to new technologies. We may not be able to accurately predict technological trends or the success of new services in the market. In addition, there could be legal or regulatory restraints to our introduction of new services. If these services fail to gain acceptance in the marketplace, or if costs associated with implementation and completion of the introduction of these services materially increase, our ability to retain and attract subscribers could be adversely affected. This is true across many of the services we provide, including wireless and cable technology.
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10.0% of our capital stock without the approval of our Board of Directors.a member of our Board of Directors, together with his sons, daughters and grandchildren (together, the “Slim Family”), including his two sons, Carlos Slim Domit and Patrick Slim Domit, who serve as the Chairman and Vice Chairman of our Board of Directors, respectively, may be deemed to control us. The Slim Family may be able to elect a majority of the members of our Board of Directors and to determine the outcome of other actions requiring a vote of our shareholders. The interests of the Slim Family may diverge from the interests of our other investors. than 10.0% of our capital stock by any person or group of persons acting together requires the approval of our Board of Directors. You may not acquire or transfer more than54 See “Bylaws—Restrictions of Certain Transfers” under Part IV of this annual report.the Delaware.
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We cannot assure you that we will file a registration statement with the SEC to allow holders of ADSs or U.S. holders of L Shares or A Shares to participate in a preemptive rights offering. As a result, the equity interest of such holders in América Móvil may be diluted proportionately. In addition, under current Mexican law, it is not practicable for the depositary to sell preemptive rights and distribute the proceeds from such sales to ADS holders.
In various countries where we operate, for example, elections took place during 2018, which could lead to economic, political and social changes over which we have no control.
Possible
On July 27, 2017,adversely affect interest rates
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significant increases in benchmark rates, or borrowing costs to borrowers, any of which could have an adverse effect on our business, results of operations, cash flows and financial condition.
liquidity.
Major depreciation of the currencies in which we conduct operations may result in disruption of the international foreign exchange markets and may limit our ability to transfer or to convert such currencies into U.S. dollars and other currencies for the purpose of making timely payments of interest and principal on our indebtedness. For example,The government of Argentina has adopted exchange controls and restrictions on the movement of capital and has taken other measures in response to capital flight and the significant depreciation of the Argentine peso. In addition, although the Mexican government does not currently restrict, and for many years has not restricted, the right or ability of Mexican or foreign persons or entities to
convert Mexican pesos into U.S. dollars or to transfer other currencies out of Mexico, it could institute restrictive exchange rate policies in the future. Similarly, the Brazilian government may impose temporary restrictions on the conversion of Brazilian reais into foreign currencies and on the remittance to foreign investors of proceeds from investments in Brazil whenever there is a
SERIES | NUMBER OF SHARES (MILLIONS) | PERCENT OF CAPITAL | COMBINED A SHARES AND AA SHARES(1) | |||||||||
L Shares (no par value) | 44,883 | 68.0 | % | — | ||||||||
AA Shares (no par value) | 20,602 | 31.2 | % | 97.5 | % | |||||||
A Shares (no par value) | 539 | 0.8 | % | 2.5 | % | |||||||
Total(2) | 66,024 | 100.0 | % | 100.0 | % |
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2022.
SERIES | NUMBER OF SHARES (MILLIONS) | PERCENT OF COMBINED CAPITAL | A SHARES AND AA SHARES (1) | |||||||||
L Shares | 43,164 | 67.2 | % | — | ||||||||
(no par value) | ||||||||||||
AA Shares | 20,555 | 32.0 | % | 97.6 | % | |||||||
(no par value) | ||||||||||||
A Shares | 498 | 0.8 | % | 2.4 | % | |||||||
(no par value) | ||||||||||||
Total (2) | 64,217 | 100 | % | 100 | % | |||||||
(1) The AA Shares and A Shares of América Móvil, together, are entitled to elect a majority of our directors. Holders of L Shares are entitled to limited voting rights under our bylaws. See “Bylaws—Voting Rights” under this Part IV.(2) Figures in the table may not recalculate exactly due to rounding. |
SHAREHOLDER | SHARES OWNED (MILLIONS) | PERCENT OF CLASS(1) | ||||||
AA SHARES: |
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Family Trust(2) | 10,894 | 52.9% | ||||||
Inversora Carso(3) | 4,381 | 21.3% | ||||||
Carlos Slim Helú | 1,879 | 9.1% | ||||||
L SHARES: |
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Inversora Carso(3) | 6,020 | 13.4% | ||||||
Family Trust(2) | 5,998 | 13.4% | ||||||
Carlos Slim Helú | 3,072 | 6.8% | ||||||
BlackRock, Inc.(4) | 2,918 | 6.5% |
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SHAREHOLDER | SHARES OWNED (MILLIONS) | PERCENT OF CLASS (1) | ||||||||||
AA SHARES: | ||||||||||||
Family Trust (2) | 10,894 | 53.0% | ||||||||||
Control Empresarial de | ||||||||||||
Capitales (3) | 4,381 | 21.3% | ||||||||||
Carlos Slim Helú | 1,879 | 9.1% | ||||||||||
L SHARES: | ||||||||||||
Control Empresarial de Capitales (3) | 6,318 | 14.6% | ||||||||||
Family Trust (2) | 6,849 | 15.9% | ||||||||||
Carlos Slim Helú | 3,322 | 7.7% | ||||||||||
Blackrock (4) | 2,164 | 5.0% | ||||||||||
(1) Percentage figures are based on the number of shares outstanding as of March 31, 2022.(2) The Family Trust is a Mexican trust that holds AA Shares and L Shares for the benefit of members of the Slim Family. In addition to shares held by the Family Trust, members of the Slim Family, including Carlos Slim Helú, directly own an aggregate of 3,558 million AA Shares and 10,227 million L Shares representing 17.3% and 23.7%, respectively, of each series. According to beneficial reports filed with the SEC, none of these members of the Slim Family, other than Carlos Slim Helú, individually directly own more than 5.0% of any class of our shares.(3) Includes shares owned by subsidiaries of Control Empresarial de Capitales, formerly known as Inversora Carso. Based on beneficial ownership reports filed with the SEC, Control Empresarial de Capitales is a Mexican sociedad anónima de capital variable and may be deemed to be controlled by the Slim Family.(4) Based on beneficial ownership reports filed with the SEC. |
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the Federal Telecommunications Institute (
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PAYMENT DATE | PESOS PER SHARE | DOLLARS PER SHARE | |||||||
November | Ps.0.20 | U.S.$ 0.0097 | |||||||
July 19, 2021 | Ps.0.20 | U.S.$ 0.0100 | |||||||
November 9, 2020 | Ps.0.19 | U.S.$ 0.0092 | |||||||
July 20, 2020 | Ps.0.19 | U.S.$ 0.0085 | |||||||
November 11, 2019 | Ps.0.17 | U.S.$ 0.0090 | |||||||
July 15, 2019 | Ps.0.18 | U.S.$ 0.0095 | |||||||
November 12, 2018 | Ps.0.16 | U.S.$ 0.0080 | |||||||
July 16, 2018 | Ps.0.16 | U.S.$ | 0.0085 | ||||||
November 13, 2017 | Ps.0.15 | U.S.$ | 0.0079 | ||||||
July 17, 2017 | Ps.0.15 | ||||||||
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We have offered our shareholders the option to receive a scrip dividend in the form of either cash, Series L shares or a combination thereof and may continue to do so in the future.
August 29, 2022.
SECURITY | STOCK EXCHANGE | TICKER SYMBOL | ||
L Shares | Mexican Stock Exchange—Mexico City | AMXL | ||
L Share ADSs | New York Stock Exchange—New York | AMX | ||
A Shares | Mexican Stock Exchange—Mexico City | AMXA | ||
A Share ADSs | New York Stock Exchange—New York | AMOV |
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Below isorganized under Mexican law. For a description of our AA Shares, A Shares and L Shares, and a brief summary of certain significant provisions in our current bylaws and Mexican law. It does not purport to be complete and is qualified by reference tolaw, see “Description of Securities Registered Under Section 12 of the bylaws themselves. An English translation of our bylaws has beenExchange Act,” filed with the SEC as an exhibit and is incorporated by reference toExhibit 2.1 with this annual report. For a description of our Board of Directors, Executive and Audit and Corporate Practices Committees and External Auditor, see “Management” under Part V of this annual report.
Organization
We are a sociedad anónima bursátil de capital variable organized under Mexican law.
Shareholders’ Equity
We have three classes
Each L Share entitles the holder to one vote at any meeting at which L Shares are entitled to vote. L Shares are entitled to vote to elect only two members of the Board and the corresponding alternate directors, as well as on the following limited matters: our transformation from one type of company to another; any merger involving us; the extension of our authorized corporate duration; our voluntary dissolution; any change in our corporate purpose; any transaction that represents 20.0% or more of the Company’s consolidated assets; any change in our jurisdiction of incorporation; removal of our shares from listing on the Mexican Stock Exchange or any foreign exchange; and any action that would prejudice the rights of L Shares. A resolution on any of the specified matters requires the affirmative vote of both a majority of all outstanding shares and a majority of the AA Shares and the A Shares voting together.
Shares of any series are also entitled to vote as a class on any action that would prejudice the rights of that series and are entitled to judicial relief against any action taken without their vote.
Shareholders’ Meetings
General shareholders’ meetings may be ordinary or extraordinary. Extraordinary general meetings are those called to consider certain specified matters, including, principally, changes to the bylaws, liquidation, merger and transformation, as well as to consider the removal of our shares from listing on the Mexican Stock Exchange or any foreign stock exchange. General meetings called to consider all other matters are ordinary meetings.
An ordinary general meeting of AA Shares and A Shares must be held each year to consider the approval of the financial statements for the preceding fiscal year, to elect directors and to determine the allocation of the profits. Transactions that represent 20.0% or more of our consolidated assets in any fiscal year must be approved by an ordinary general shareholder meeting of all shareholders, including L Shares. All other matters on which L Shares are entitled to vote would be considered at an extraordinary general meeting.
The two directors elected by the L Shares are elected at a special meeting of L Shares. A special meeting of the L Shares must be held each year for the election of directors.
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The quorum for an ordinary general meeting of the AA Shares and A Shares is 50.0% of such shares, and action may be taken by a majority of the shares present. If a quorum is not available, a second meeting may be called at which action may be taken by a majority of the AA Shares and A Shares present, regardless of the number of such shares. Special meetings of L Shares are governed by the same rules applicable to ordinary general meetings of AA Shares and A Shares. The quorum for an extraordinary general meeting at which L Shares may not vote is 75.0% of the AA Shares and A Shares, and the quorum for an extraordinary general meeting at which L Shares are entitled to vote is 75.0% of the outstanding capital stock. If a quorum is not available in either case, a second meeting may be called and action may be taken, provided a majority of the shares entitled to vote is present. Whether on first or second call, actions at an extraordinary general meeting may be taken by a majority vote of the AA Shares and A Shares outstanding and, on matters which L Shares are entitled to vote, a majority vote of all the capital stock.
Holders of 20.0% of our outstanding capital stock may have any shareholder action set aside by filing a complaint with a Mexican court of law within 15 days after the close of the meeting at which such action was taken and showing that the challenged action violates Mexican law or our bylaws. In addition, any holder of our capital stock may bring an action at any time within five years challenging any shareholder action. Relief under these provisions is only available to holders who were entitled to vote on, or whose rights as shareholders were adversely affected by, the challenged shareholder action and whose shares were not represented when the action was taken or, if represented, voted against it.
Shareholders’ meetings may be called by the Board, its chairman, its corporate secretary, the Chairman of the Audit and Corporate Practices Committee or a Mexican court of law. The Chairman of the Board or the Chairman of the Audit and Corporate Practices Committee may be required to call a meeting of shareholders by the holders of 10.0% of the outstanding shares. Notice of meetings must be published at least 15 days prior to the meeting.
A shareholder is required to deposit its shares with a custodian in order to attend a shareholders’ meeting. A holder of ADSs will not be able to meet this requirement, and accordingly is not entitled to attend shareholders’
meetings. A holder of ADSs is entitled to instruct the depositary as to how to vote the shares represented by ADSs, in accordance with procedures provided for in the deposit agreements. However, a holder of ADSs will not be able to vote its shares directly at a shareholders’ meeting or to appoint a proxy to do so.
Dividend Rights
At the annual ordinary general meeting of AA Shares and A Shares, the Board submits our financial statements for the previous fiscal year to the holders of AA Shares and A Shares for approval. Once financial statements are approved, the allocation of our net profits is determined, and we must allocate 5.0% of such net profits to a legal reserve, which is not thereafter available for distribution except as a stock dividend, until the amount of the legal reserve equals 20.0% of our capital stock. The remainder of net profits is available for distribution.
All shares outstanding are entitled to participate in a dividend or other distribution. L shares are entitled to a nominal preference with respect to dividends or liquidation, but the preference has no economic significance.
Preemptive Rights
In new issuances of shares, each shareholder has a preferential right to subscribe for a sufficient number of shares of the same series to maintain its existing proportionate holdings, except in certain circumstances such as mergers, convertible debentures, public offers and placement of treasury or repurchased shares. These rights cannot be traded separately from the shares. As a result, there is no trading market for such rights. Holders of ADSs may exercise these rights only through the depositary. We are not required to take steps that may be necessary to make this possible.
Limitations on Share Ownership
AA Shares and A Shares may be owned only by holders that qualify as Mexican investors as defined in the Foreign Investment Law (Ley de Inversión Extranjera) and our bylaws. AA Shares can only be held or acquired by Mexican citizens, Mexican corporations whose capital stock is held completely by Mexican citizens or other Mexican qualified investors.Non-Mexican investors cannot hold AA Shares except through trusts that effectively neutralize their votes.
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If a foreign government or state acquires our AA Shares, such shares would immediately be rendered without effect or value.
We have a foreign exclusion clause that restricts ownership of our shares to holders that qualify as Mexican investors. It does not apply to the L Shares, and, under transitional provisions adopted by our shareholders, it does not limit foreign ownership of A Shares outstanding as of the date of the shareholders’ meeting approving the amendment.
Restrictions on Certain Transfers
Any transfer of more than 10.0% of our voting shares, in one or more transactions, by any person or group of persons acting in concert, requires prior approval by our Board. If the Board denies such approval, however, it shall designate an alternate transferee, who must pay market price for the shares as quoted on the Mexican Stock Exchange.
Restrictions on Deregistration in Mexico
Our shares are registered with the RNV maintained by the CNBV.
If we wish to cancel our registration, or if it is cancelled by the CNBV, we are required to conduct a public offer to purchase all of the outstanding shares prior to such cancellation. Such offer shall exclude our controlling group of shareholders. If, after the public offer is concluded, there are still outstanding shares held by the general public, we will be required to create a trust for a period of six months, with funds in an amount sufficient to purchase, at the same price as the offer price, the number of outstanding shares held by the public that did not participate in the offer.
Unless the CNBV authorizes otherwise, upon the prior approval of the Board, which must take into account the opinion of the Audit and Corporate Practices Committee, the offer price will be the higher of (i) the average of the closing price during the previous 30 days on which the shares may have been quoted or (ii) the book value of the shares in accordance with the most recent quarterly report submitted to the CNBV and to the Mexican Stock Exchange.
The voluntary cancellation of the registration shall be subject to (i) the prior authorization of the CNBV and (ii) the authorization of not less than 95.0% of the outstanding capital stock in a general extraordinary shareholders’ meeting.
Tender Offer Requirement
Certain significant acquisitions of our capital stock may require the purchaser to make a tender offer.
Other Provisions
EXCLUSIVE JURISDICTION.Our bylaws provide that legal actions relating to the execution, interpretation or performance of the bylaws shall be brought only in Mexican courts.
PURCHASE OF OUR OWN SHARES.We may repurchase our shares on the Mexican Stock Exchange at any time at the then-prevailing market price. Any such repurchase must conform to guidelines established by the Board, and the amount available to repurchase shares must be approved by the general ordinary shareholders’ meeting. The economic and voting rights corresponding to repurchased shares may not be exercised during the period in which we own such shares, and such shares are not deemed to be outstanding for purposes of calculating any quorum or vote at any shareholders’ meeting during such period.
CONFLICT OF INTEREST.A shareholder that votes on a business transaction in which its interest conflicts with our interests may be liable for damages, but only if the transaction would not have been approved without its vote.
WITHDRAWAL RIGHTS.Whenever a shareholders meeting approve a change of corporate purposes, change of nationality of the corporation or transformation from one type of company to another, any shareholder entitled to vote on such change that has voted against may withdraw and receive the book value of its shares, provided this right is exercised within 15 days following the meeting.
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American Depositary Shares
Citibank, N.A. (“the Depositary”) serves as the depositary for our ADSs and our American Depository Receipts (“ADR”) program. ADS holders are required to pay various fees to the Depositary, and the Depositary may refuse to provide any service for which a fee is assessed until the applicable fee has been paid.
ADS holders are required to pay the Depositary amounts in respect of expenses incurred by the Depositary or its agents on behalf of ADS holders, including expenses arising from (i) taxes or other governmental charges, (ii) registration fees payable to us that may be applicable to the transfer of shares upon deposits to or withdrawals from the ADS program, (iii) cable, telex and facsimile transmission, (iv) conversion of foreign currency into U.S. dollars, (v) compliance with exchange control regulations and other regulatory requirements or (vi) servicing of the ADSs or the shares underlying ADSs. The Depositary may decide in its sole discretion to seek payment either by billing holders or by deducting the fee from one or more cash dividends or other cash distributions.
ADS holders are also required to pay additional fees for certain services provided by the Depositary, as set forth in the table below.
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Payments by the Depositary
The Depositary reimburses us for certain expenses we incur in connection with the ADR program, subject to a ceiling agreed between us and the Depositary from time to time. These reimbursable expenses currently include legal and accounting fees, listing fees, investor relations expenses and fees payable to service providers for the distribution of material to ADS holders. During the year ended December 31, 2018, the Depositary reimbursed us a total of U.S.$2.1 million for reimbursable expenses.
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We periodically repurchase at our discretion our L Shares and A Shares on the open market pursuant to guidelines approved by our Board of Directors, using funds up to an amount authorized by our shareholders specifically for the repurchase of L Shares and A Shares. Our shareholders authorized the allocation of up to Ps.6 billion in February 2021, Ps.25 billion in April 2021 and Ps.26 billion in November 2021, in each case to repurchase L Shares by us atand A Shares. In our discretion. In the2022 annual ordinary shareholders’ meeting, held on April 9, 2019, our shareholders authorized increase to the buyback program fund by an allocation of Ps.3.0amount equal to Ps.26 billion, which after the increase amounts to Ps.36.539 billion to repurchase L Shares and A Shares from April 20192022 to April 2020.
2023.
PERIOD | TOTAL NUMBER OF L SHARES PURCHASED(1) | AVERAGE PRICE PER L SHARES | TOTAL NUMBER OF L SHARES PURCHASED AS PART OF PUBLICLY ANNOUNCED PLANS OR PROGRAMS | APPROXIMATE MEXICAN PESO VALUE OF L SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS(2) | ||||||||||||
January 2018 | 4,300,000 | Ps. 16.82 | 4,300,000 | Ps. | 2,186,861,427 | |||||||||||
February 2018 | 1,318,000 | 17.26 | 1,318,000 | 2,162,900,627 | ||||||||||||
March 2018 | — | — | — | 2,162,900,627 | ||||||||||||
April 2018 | — | — | — | 2,162,900,627 | ||||||||||||
May 2018 | 2,560,156 | 16.14 | 2,560,156 | 2,958,688,268 | ||||||||||||
June 2018 | 2,080,000 | 15.49 | 2,080,000 | 2,926,474,720 | ||||||||||||
July 2018 | 3,210,000 | 16.15 | 3,210,000 | 2,874,640,889 | ||||||||||||
August 2018 | 2,680,000 | 15.86 | 2,680,000 | 2,832,132,042 | ||||||||||||
September 2018 | 2,081,508 | 15.45 | 2,081,508 | 2,799,978,412 | ||||||||||||
October 2018 | 7,880,400 | 14.46 | 7,880,400 | 2,686,010,961 | ||||||||||||
November 2018 | 4,988,725 | 13.09 | 4,988,725 | 2,620,438,367 | ||||||||||||
December 2018 | 2,918,607 | 13.94 | 2,918,607 | 2,579,763,369 | ||||||||||||
Total | 34,017,396 | 34,017,396 | ||||||||||||||
(1) This includes purchases by us and our affiliated purchasers in 2018. (2) This is the approximate peso amount available at the end of the period for purchases of both L Shares and A Shares pursuant to our share repurchase program.
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PERIOD | TOTAL NUMBER OF A SHARES PURCHASED(1) | AVERAGE PRICE PER A SHARES | TOTAL NUMBER OF A SHARES PURCHASED AS PART OF PUBLICLY ANNOUNCED PLANS OR PROGRAMS | APPROXIMATE MEXICAN PESO VALUE OF A SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS(2) | ||||||||||||
January 2018 | 130,382 | Ps. 17.07 | 130,382 | Ps. | 2,186,861,427 | |||||||||||
February 2018 | 74,987 | 16.22 | 74,987 | 2,162,900,627 | ||||||||||||
March 2018 | — | — | — | 2,162,900,627 | ||||||||||||
April 2018 | — | — | — | 2,162,900,627 | ||||||||||||
May 2018 | — | — | — | 2,958,688,268 | ||||||||||||
June 2018 | — | — | — | 2,926,474,720 | ||||||||||||
July 2018 | — | — | — | 2,874,640,889 | ||||||||||||
August 2018 | — | — | — | 2,832,132,042 | ||||||||||||
September 2018 | — | — | — | 2,799,978,412 | ||||||||||||
October 2018 | — | — | — | 2,686,010,961 | ||||||||||||
November 2018 | 20,248 | 13.65 | 20,248 | 2,620,438,367 | ||||||||||||
December 2018 | — | — | — | 2,579,763,369 | ||||||||||||
Total | 225,617 | 225,617 | ||||||||||||||
(1) This includes purchases by us and our affiliated purchasers in 2018. (2) This is the approximate peso amount available at the end of the period for purchases of both L Shares and A Shares pursuant to our share repurchase program.
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PERIOD | TOTAL NUMBER OF SHARES PURCHASED (1) | AVERAGE PRICE PER SHARE | TOTAL NUMBER OF SHARES PURCHASED AS PART OF PUBLICLY ANNOUNCED PLANS OR PROGRAMS | APPROXIMATE MEXICAN PESO VALUE OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS (2) | ||||||||||||
January 2021 | 58,300,000 | Ps. | 14.70 | 58,300,000 | Ps. | 137,547,600.71 | ||||||||||
February 2021 | 83,000,000 | 13.76 | 83,000,000 | 5,002,342,621.26 | ||||||||||||
March 2021 | 180,000,000 | 14.11 | 180,000,000 | 2,476,906,037.20 | ||||||||||||
April 2021 | 169,345,689 | 14.42 | 169,345,689 | 24,433,023,601.16 | ||||||||||||
May 2021 | 132,896,900 | 14.86 | 132,896,900 | 22,469,536,093.00 | ||||||||||||
June 2021 | 141,528,312 | 15.63 | 141,528,312 | 20,270,462,806.00 | ||||||||||||
July 2021 | 184,489,748 | 15.81 | 184,489,748 | 17,370,881,547.05 | ||||||||||||
August 2021 | �� | 214,000,000 | 17.87 | 214,000,000 | 13,568,848,403.30 | |||||||||||
September 2021 | 249,000,000 | 18.64 | 249,000,000 | 8,954,740,926.13 | ||||||||||||
October 2021 | 273,600,000 | 18.14 | 273,600,000 | 4,020,009,413.98 | ||||||||||||
November 2021 | 285,400,000 | 18.70 | 285,400,000 | 24,714,680,611.87 | ||||||||||||
December 2021 | 201,259,367 | 20.50 | 201,259,367 | 20,612,674,146.83 | ||||||||||||
Total L Shares | 2,172,820,016 | 2,172,820,016 | ||||||||||||||
(1) This includes purchases by us and our affiliated purchasers in 2021.(2) This is the approximate peso amount available at the end of the period for purchases of both L Shares and A Shares pursuant to our share repurchase program. |
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the12-monthperiod preceding such disposition. U.S. residents should consult their own tax advisors as to their possible eligibility under the Tax Treaty.
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For purposes of this discussion, a “U.S. holder”"U.S. holder" is a holder of shares or ADSs that is:
by the depositary, in the case of ADSs (regardless of whether such pesos are in fact converted into U.S. dollars on such date). If such dividends are converted into U.S. dollars on the date of such receipt, a U.S. holder generally should not be required to recognize foreign currency gain or loss in respect of the dividends. U.S. holders should consult their own tax advisors regarding the treatment of foreign currency gain or loss, if any, on any pesos received by a U.S. holder or depositary that are converted into U.S. dollars on a date subsequent to receipt. Dividends paid by us will not be eligible for the dividends-received deduction allowed to corporations under the U.S. Internal Revenue Code of 1986, as amended (the “Code”"Code").
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2017 2020 and 20182021 taxable year.years. In addition, based on our audited consolidated financial statements and our current expectations regarding the value and nature of our assets, the sources and nature of our income and relevant market data, we do not anticipate becoming a PFIC for the 20192022 taxable year. Holders of shares or ADSs should consult their own tax advisors regarding the availability of the reduced dividend tax rate in the light of their own particular circumstances.
the Board of Directors, a majority of those present must be Mexican nationals.
64% of the members of the Board of Directors are independent and 21% are women.
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CARLOS SLIM DOMIT | ||||||
Chairman of the Board and the Executive Committee |
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Term expires: | 2023 | |||||
Principal occupation: | Chairman of the Board of | |||||
Other directorships: | Chairman of the Board of Grupo Carso | |||||
Business experience: | Business administration; Chief Executive Officer of Sanborn Hermanos |
PATRICK SLIM DOMIT | ||||||
Vice Chairman and Member of the Executive Committee |
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Term expires: | 2023 | |||||
Principal occupation: | Vice Chairman of our Board of Directors | |||||
Other directorships: | Director of Grupo Carso | |||||
Business experience: | Business administration; Chief Executive Officer of Grupo Carso and Vice President of Commercial Markets of Telmex |
DANIEL HAJJ ABOUMRAD | ||||||
Director and Member of the Executive Committee |
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Term expires: | 2023 | |||||
Principal occupation: | Chief Executive Officer of América Móvil | |||||
Other directorships: | Director of Grupo Carso and Telmex | |||||
Business experience: | Business administration; Chief Executive Officer of Compañía Hulera Euzkadi | |||||
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LUIS ALEJANDRO SOBERÓN KURI
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Director | |||
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Term expires: | 2023 | |||
Principal occupation: | Chief Executive Officer and Chairman of the Board of Serinem México | |||
Other directorships: | Director of CIE; Director of | |||
Business experience: | Business administration; Various positions at CIE |
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FRANCISCO JOSÉ MEDINA CHÁVEZ | ||||
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Other directorships: | Director of | |||
Business experience: | Real estate; Director of |
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ERNESTO VEGA VELASCO | ||||||
Director, Chairman of the Audit and Corporate Practices Committee |
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Term expires: | 2023 | |||||
Principal occupation: | Retired. Member of the | |||||
Other directorships: | Director of Kuo | |||||
Business experience: | Accounting and business administration; Various positions in Desc Group, including Corporate |
RAFAEL MOISÉS KALACH MIZRAHI | ||||||
Director and Member of the Audit and Corporate Practices Committee |
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Term expires: | 2023 | |||||
Principal occupation: | Chairman and Chief Executive Officer of Grupo Kaltex | |||||
Other directorships: | Director of | |||||
Business experience: |
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ANTONIO COSÍO PANDO
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Term expires: | 2023 | |||
Principal occupation: | Vice President of Grupo Hotelero las Brisas, | |||
Other directorships: | Director of Grupo | |||
Business experience: |
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Principal occupation: | Chief Fixed-line Operations Officer of América Móvil | |||||
Other directorships: | Member of Telekom Austria’s Supervisory Board | |||||
Business experience: | Accounting and business administration; Chief Executive Officer of Telmex Internacional, Chief Systems and Telecommunications Operators Officer of Telmex and member of KPN’s |
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VANESSA HAJJ SLIM | ||||
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DAVID IBARRA MUÑOZ | ||
Director | ||
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Term expires: | 2023 | |
Principal occupation: | Retired | |
Other directorships: | Director of Grupo Carso and its affiliates, and Grupo Mexicano de Desarrollo | |
Business experience: | Economist; Chief Executive Officer of |
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GISSELLE MORÁN JIMÉNEZ | ||||
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2021 | ||
Term expires: | 2023 | |
Principal occupation: | Chief Executive Officer of Real Estate, Market and Lifestyle | |
Other directorships: | Director of Alignmex Real Estate Capital | |
Business experience: | Commercial Manager of Grupo Mundo Ejecutivo |
PABLO ROBERTO GONZÁLEZ GUAJARDO | ||||||
Director and Member of the Audit and Corporate Practices Committee |
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Principal occupation: | Chief Executive Officer of Kimberly Clark de México | |||||
Other directorships: | Director of Kimberly Clark de México, | |||||
Business experience: | Various positions in the Kimberly Clark Corporation and Kimberly Clark de México |
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CLAUDIA JAÑEZ SÁNCHEZ | ||||
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Business experience: | Chairman of DuPont Latin America and Chairman of the Executive |
The
Daniel Hajj Aboumrad and Arturo Elías Ayub aresons-in-law of Carlos Slim Helú andbrothers-in-law of Patrick Slim Domit and Carlos Slim Domit.
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The Executive Committee is elected from among the directors and alternate directors by a majority vote of the holders of common shares (AA Shares and A Shares). The majority of its members must be Mexican citizens and elected by Mexican shareholders. The current members of the Executive Committee are Messrs. Carlos Slim Domit, Patrick Slim Domit and Daniel Hajj Aboumrad. See “Major Shareholders” under Part IV of this annual report.
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Under certain circumstances specified in our bylaws, the Audit and Corporate Practices Committee is required to provide its opinion to the Board of Directors.
In addition, pursuant to our bylaws, the Audit and Corporate Practices Committee is in charge of our corporate governance functions under the Mexican securities laws and regulations and is required to submit an annual report to the Board of Directors with respect to our corporate and audit practices. The Audit and Corporate Practices Committee must request the opinions of our executive officers for purposes of preparing this annual report. The Board of Directors must seek the opinion of the Audit and Corporate Practices Committee regarding any transaction with a related party that is outside the ordinary course of our business as defined under the Mexican Securities Market Law. Each member of the Audit and Corporate Practices Committee is independent, as determined by our shareholders pursuant to the Mexican Securities Market Law and as defined under Rule10A-3 under the Exchange.
DANIEL HAJJ ABOUMRAD | ||||
Chief Executive Officer | ||||
Appointed: | 2000 | |||
Business experience: | Director of Telmex; Chief Executive Officer of Compañía Hulera Euzkadi |
CARLOS JOSÉ GARCÍA MORENO ELIZONDO | ||
Chief Financial Officer | ||
Appointed: | 2001 | |
Business experience: | General Director of Public Credit at the Ministry of Finance and Public Credit; Managing Director of UBS Warburg; Associate Director of Financing at Petróleos Mexicanos (Pemex); Member of Telekom Austria’s Supervisory Board; Member of KPN Supervisory Board |
ALEJANDRO CANTÚ JIMÉNEZ | ||
General Counsel | ||
Appointed: | 2001 | |
Business experience: | Member of Telekom Austria’s Supervisory |
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OSCAR VON HAUSKE SOLÍS | ||||
Chief Fixed-line Operations Officer | ||||
| Appointed: | 2010 | ||
Business experience: | Chief Executive Officer of Telmex Internacional; Chief Systems and Telecommunications Officer of Telmex; Head of Finance at Grupo |
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RAFAEL COUTTOLENC URREA | ||||||
Chief Wireless Operations Officer | ||||||
Appointed: | 2021 | |||||
Business experience: | Various positions in América Móvil |
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Except as described above, according to the information provided to us by our directors and members of senior management, none of our directors or executive officers is the beneficial owner of more than 1.0% of any class of our capital stock.
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NYSE STANDARDS | OUR CORPORATE GOVERNANCE PRACTICES | |
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DIRECTOR INDEPENDENCE | ||
Majority of | Pursuant to the Mexican Securities Market Law, our shareholders are required to non-independent, including insiders, control persons, major suppliers and any relatives of such persons. Currently, | |
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EXECUTIVE SESSIONS | ||
Non-management directors must meet at regularly scheduled executive sessions without management. Independent directors should meet alone in an executive session at least once a year. §303A.03. | Our non-management directors have not held executive sessions without management in the past, and they are not required to do so. | |
NOMINATING/CORPORATE GOVERNANCE | ||
Nominating/corporate governance committee composed entirely of independent directors is required. The committee must have a charter specifying the purpose, duties and evaluation procedures of the committee. §303A.04. | Mexican law requires us to have one or more committees that oversee certain corporate practices, including the appointment of directors and executives. Under the Mexican Securities Market Law, committees overseeing certain corporate practices must be composed of independent directors. However, in the case of controlled companies, such as ours, only a majority of the committee members must be independent. | |
“Controlled companies” are exempt from these requirements. §303A.00. As a controlled company, we would be exempt from this requirement if we were a U.S. issuer. | Currently, we do not have a nominating committee, and we are not required to have one. Our Audit and Corporate Practices Committee, which is composed of independent directors, oversees our corporate practices, including the compensation and appointment of directors and executives. |
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COMPENSATION COMMITTEE | ||
Compensation committee composed entirely of independent directors is required, which must evaluate and approve executive officer compensation. The committee must have a charter specifying the purpose, duties and evaluation procedures of the committee. §303A.02(a)(ii) and §303A.05. “Controlled companies” are exempt from this requirement. §303A.00. | We currently do not have a compensation committee, and we are not required to have one. Our Audit and Corporate Practices Committee, which is comprised solely of independent directors, evaluates and approves the compensation of management (including our CEO) and directors. | |
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AUDIT COMMITTEE | ||
Audit committee satisfying the independence and other requirements of Rule 10A-3 under the Exchange Act and the additional requirements under the NYSE standards is required. §§303A.06 and 303A.07. | We have an |
NYSE STANDARDS | OUR CORPORATE GOVERNANCE PRACTICES | |
EQUITY COMPENSATION PLANS | ||
Equity compensation plans and all material revisions thereto require shareholder approval, subject to limited exemptions. §§303A.08 and 312.03. | Shareholder approval is | |
SHAREHOLDER APPROVAL FOR ISSUANCE OF SECURITIES | ||
Issuances of securities (1) that will result in a change of control of the issuer, (2) that are to a related party or someone closely related to a related party, (3) that have voting power equal to at least 20.0% of the outstanding common stock voting power before such issuance or (4) that will increase the number of shares of common stock by at least 20.0% of the number of outstanding shares before such issuance requires shareholder approval. §§312.03(b)-(d). | Mexican law requires us to obtain shareholder approval for any issuance of equity securities. Under certain circumstances, however, we may sell treasury stock subject to the approval of our Board of Directors. | |
CODE OF BUSINESS CONDUCT AND ETHICS | ||
Corporate governance guidelines and a code of business conduct and ethics are required, with disclosure of any waiver for directors or executive officers. The code must contain compliance standards and procedures that will facilitate the effective operation of the code. §303A.10. | We have adopted a code of ethics, which applies to all of our directors and executive officers and other personnel. For more information, see “Corporate Governance—Code of Ethics” under Part V of this annual report. |
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CONFLICTS OF INTEREST | ||
A company’s audit committee or another independent body of 20-F for potential conflicts of interest and will prohibit such transaction if it determines it to be inconsistent with the | In accordance with Mexican law, an independent audit committee must provide an opinion to the board of directors regarding any transaction with a related party, | |
SOLICITATION OF PROXIES | ||
Solicitation of proxies and provision of proxy materials is required for all meetings of shareholders. Copies of such proxy solicitations are to be provided to NYSE. §§402.01 and 402.04. | We are not required to solicit proxies from our shareholders. In accordance with Mexican law and our bylaws, we inform shareholders of all meetings by public notice, which states the requirements for admission to the meeting and we make materials available to be discussed at each shareholders’ meeting. Under the deposit agreement relating to our ADSs, holders of our ADSs receive notices of shareholders’ meetings and, where applicable, instructions on how to instruct the depositary to vote at the meeting. Under the deposit agreement relating to our ADS, we may direct the voting of any ADS as to which no voting instructions are received by the depositary, except with respect to any matter where substantial opposition exists or that materially and adversely affects the rights of holders. |
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2021.(A)2018.2021. Based upon our evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.(B)2018.11, 2019.(C)29
América Móvil, S.A.B. de C.V.
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(D)29, 2022
REPORTING
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employees, the Company’s supply chain and/or other business relationships.
We have a corporate sustainability committee that seeksAmérica Móvil—Corporate Governance (americamovil.com). This URL is intended to foster greater operational efficiencies, promote social responsibility and adopt environmentally friendly initiatives.
Our corporate sustainability reports are availablebe an inactive textual reference only. It is not intended to be an active hyperlink to our website. The information on our website, at www.americamovil.com.
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PART VI REGULATION
Over the last five years, a new
as amended.
application of legislation specific to the telecommunications and broadcasting sectors, and also over competition legislation as it applies to those sectors. The Mexican Ministry of Communications and Transportation (
Interconnection Rates. The Federal Law on Telecommunications and Broadcasting provides that we are not permitted to charge other carriers for the termination services we provide in our networks. These provisions were declared unconstitutional by the Mexican Supreme Court ( Suprema Corte de Justicia de la Nación |
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For mobile services, the IFT hasruled that, as of January 1, 2018, in the rightcase of Telcel, and as of January 1, 2019, in the case of Telmex, we are able to verify, through a replicability test, thatcharge other carriers for terminating calls to our networks at asymmetric rates established by the IFT. We continue to pay such carriers for their interconnection services in accordance with the fixed and mobile virtual network operators can match our end user rates.
We have challenged the determination that we are a preponderant economic agent and the asymmetric regulations in court. These challenges were denied in the case of Telmex, Telnor and the Company, and a final resolution is still pending in the case of Telcel. However, IFT’s determinations are not suspended while legal challenges against them are resolved.
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Functional Separation of Telmex and Telnor Wholesale Services
In March 2018, we received notice of an IFT resolution, directedwe began to the Company setting forth the terms under which we are required to separate out the provision of wholesale regulated fixed services by Telmex and Telnor (the “Separation Plan”).
The Pursuant to the Separation Plan, establishes, among other provisions, the following:
Financial Viability.The Separation Plan contemplates that the New Companies will be financially viable. The implementation and consequences of this requirement are uncertain, both with respect to the initial composition of the New Companies’ assets and resources and with respect to their subsequent operations.
Corporate Governance.The New Companies will have their own corporate governance, including: (i) a board of directors with at least seven members, of which a majority (including the Chairman) must be independent; (ii) a Chief Executive Officer and senior officers appointed by the boards of directors, different and independent from those of our Mexican concessionaire subsidiaries; (iii) an independent external auditor; (iv) an Audit Committee chaired by an independent member of the board of
directors; and (v) a Regulatory Compliance Committee entirely composed of independent members. The bylawspractices of the New Companies mustmay be previously approvedsubject to regulatory challenges by other market participants. In August 2021, the IFT. Independence for these purposes is used as defined under Mexican Securities Market Law.
We have until March of 2020 to implement the Separation Plan. As of the date of this annual report, Telmex and Telnor have complied with all milestones of the implementation plan approved by the IFT. The implementation will bePlan has been complex, and manysome features remain uncertain and willmay require further development in consultation with the IFT.development. As a result, we are not yet able to identify all the possible consequences, but some of the consequences could have a material adverse impact on us.
final determinations are pending.
In 2007,
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these decisions would allow theTable of Contents
In 2007, Cofeco initiated various investigations to evaluate whether Telmex and its subsidiary Telnor have substantial power in the markets for termination, origination, transit and wholesale dedicated-link circuits. Cofeco issued final resolutions concluding that Telmex and Telnor have substantial power in all four markets, which were challenged by Telmex and Telnor. The challenges related to each one of these markets have been denied, effectively upholding Cofeco’s findings. Consequently, the IFT may impose specific tariff requirementsfines or other special regulations with respect to the matters for which the challenges were denied, such as additional requirements regarding disclosure of information or quality of service.
In the case of the market for wholesale dedicated-link leasing, the IFT’s predecessor, Cofetel, published an agreement in the Official Gazette, establishing requirements regarding tariffs, quality of service and information for dedicated-link circuits. Telmex and Telnor have filed petitions for relief against such resolutions, which are still pending. The regulation that could arise from these investigations has been already implemented by the IFT through the special regulatory regime for preponderant agents. However, given the uncertainty of the IFT´s actions, we are not able to identify all possible consequences and as a result an adverse resolution could have an impact on the Company’s future revenues in this market.
penalties.
without the approval of the IFT. There are twothree types of concessions:
A public
additional term of equal length.
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concession has a term of up to 30 years, extendable for up to an equal term. Also, under this new framework a current concession may be modified to add services not previously contemplated therein.
(ii) compliance with current requirements under the network concession, the 2013 constitutional amendments, the 2014 legislation and any additional measures imposed by the IFT on the preponderant economic agent and (iii) such other requirements, terms and conditions as the IFT may establish in the concession itself. We expect the process of migration or additional services to be lengthy and complex. Consequently, Telcel, Telmex and Telnor may not be able to provide certain additional services, such as Pay TV and broadcasting, in the near term.
Mexico’s nine regions in the 850 MHz, 1900 MHz,1.7/2.1 GHz, 2.5 GHz and 2.53.5 GHz bands. The following table summarizes Telcel’s concessions.
FREQUENCY | COVERAGE AREA | INITIAL DATE | TERMINATION DATE | |||||
Band A (1900 MHz) | Nationwide | Oct. 2039 | ||||||
Band D | Nationwide | Oct. 1998 | Oct. 2038 | |||||
Band B (850 MHz) | Regions 1, 2, 3 | Aug. 2011 | Aug. 2026 | |||||
Band B (850 MHz) | Regions 4, 5 | Aug. 2010 | Aug. 2025 | |||||
(1) | ||||||||
Band B (850 MHz) | Regions 6, 7, 8 | Oct. 2011 | Oct. 2026 | |||||
Band B (850 MHz) | Region 9 | Oct. 2015 | Oct. 2030 | |||||
Band F | Nationwide | Apr. 2005 | Apr. 2025 | |||||
(1) | ||||||||
Bands A and B (1.7/2.1 GHz) | Nationwide | Oct. 2010 | Oct. 2030 | |||||
Bands H, I and J (1.7/2.1 GHz) | Nationwide | May 2016 | Oct. 2030 | |||||
Band 7 (2.5 GHz) | (2) | Jul. 2017 | (1) – Nov. 2028 – Oct. 2040 – May 2041, Nov. 2041 | |||||
Band 3.5 GHz (3) | Oct. 2020(4) | Oct. 2038 and 2040 | ||||||
(1) A request for extension has already been filed with the IFT.(2) Except 7 municipalities in the state of Jalisco and 34 municipalities in the state of Zacatecas.(3) On December 18, 2020, Telcel filed a formal request with the IFT to include mobile service in these concessions.(4) The term of this concession is currently in force and was extended by IFT in favor of Telmex until 2040 and afterwards it was assigned by Telmex to Telcel as of March 11, 2020. Concessions acquired from Axtel were extended by the IFT until 2038. |
Telmex’s subsidiary, Telnor, holds a separate concession, which covers one state and two municipalities in northwestern Mexico and will expire in 2026. The IFT also granted Telnor a
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In 2018, Telmex was notified of a resolution issued by the IFT, through which the IFT imposed a fine of Ps.2.5 billion derived from an alleged breach in 2013 and 2014 of certain minimum quality of service goals for dedicated link services. Telmex has exercised all legal remedies challenging such resolution and a final resolution is pending.
provided by Telmex during the preceding period. Telmex is required to file a survey with the IFT every four years with its projections of units of operation for basic services, costs and prices. Telmex is free to determine the structure of its own rates, with the exception of domestic long-distance rates, which were eliminated in 2015, under the 2014 legislation, and of the residential
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Telecommunications Agency (
As of the date of this annual report, the
In 2020, the satellite operation rights were transferred to Embratel Tysat Telecomunicações S.A. (“Claro TV”), after approval by Anatel.
SUBSIDIARY | LICENSE | TERMINATION DATE | ||
Claro Brasil | Fixed Local Voice Services | Indefinite | ||
Domestic and International Long-Distance | 2025 | |||
Voice Services | Indefinite | |||
Personal Communication Services | Indefinite | |||
Data Services | Indefinite | |||
Mobile Maritime Services | Indefinite | |||
Global Mobile Satellite Services | Indefinite | |||
Claro TV | DTH TV Services | Indefinite | ||
Data Services | Indefinite | |||
| Data Services | Indefinite | ||
Americel S.A. | Data Services | Indefinite | ||
Telmex do Brasil | Data Services | Indefinite | ||
Nextel Brazil | Cable TV Services | Indefinite | ||
Domestic and International Long-Distance | Indefinite | |||
Data Services | Indefinite |
These grants were transferred from Claro Brasil to Claro TV in 2020, subsequent to Anatel’s approval.
98
Claro Brasil is also required to pay a biennial fee during the term of its domestic and international long-distance concessions equal to 2.0% of the revenues from long- distance telephone services, net of taxes and social contributions, for the year preceding the payment.
2014, and to 50.0% of the 2013 rates by February 2015. In July 2014, Anatel established termination rates for mobile services applicable to operators with significant market power through 2019.2019, based on a cost model, and in December 2018, Anatel established termination rates for mobile services applicable to operators with significant market power from 2020 to 2023. These termination rates were revised by Anatel in February 2020. Claro Brasil is also required to publish and Anatel must approve, its reference roaming prices for voice, data and SMS on a semi-annualan annual basis, among other measures.
In addition, Embratel was determined These prices must be related to have significant market powerthe Anatel reference values and need to be approved by Anatel before they can take effect. The approval of new prices by Anatel took place in the market for long-distance leased lines, Claro Brasil and Embratel were determined to have significant market power in the telecommunications infrastructure market, and Net Serviços was determined to have significant market power in the local coaxial transmissions market, together with several of their mobile and fixed-line competitors. Following the merger of Embratel and Net Serviços into Claro Brasil in 2014, Claro Brasil is required to publish, and Anatel must approve, its reference offers in each of these markets. Moreover, wholesale contracts entered into by operators determined to have significant market power for the sale of such operators’ services are overseen for compliance purposes by independent third-party companies.
January 2021.
Anatel also reviews its determination of which operators have significant market power on a quadrennial basis. Anatel began its first review of all telecom operators in 2014 and published the most recent list of operators with significant market power for each of the relevant markets in 2018. In addition to the review, in 2018 Anatel changed some of the asymmetric measures applicable under the PGMC and added two new wholesale markets covering high capacity transport and fixed termination rates.network interconnection. Anatel has determined that Claro Brasil has significant market power in eight wholesale markets.
99
|
with the use of their mobile network and leased lines and set
discussions with respect to the liquidation of the agreements governing those concessions. In light of the decision of the Colombian Constitutional Court (For further information on these proceedings, see note 16The international arbitration court overseeing this claim upheld the decision to our audited consolidated financial statements included in this annual report.
grant the aforementioned domestic award.
FREQUENCY | BANDWIDTH | TERMINATION DATE | ||||
850 MHz | 25 MHz | Mar. 2024 | ||||
1900 MHz | 10 MHz | Dec. | ||||
5 MHz | ||||||
15 MHz | ||||||
2.5 GHz | 30 MHz | Aug. 2023 | ||||
| ||||||
10 MHz | Mar. 2040 | |||||
10 MHz | Mar. 2040 | |||||
10 MHz | Mar. 2040 | |||||
700 MHz | 20 MHz | May 2040 |
merger. On July 30, 2019, Comcel’s permission to provide Pay TV was incorporated under Comcel’s general power to provide Pay TV granted to it under Law 1978 of 2019.
100
Asymmetric Charges
In 2012,Subsequently, the CRC issued resolutions seekingNovator Subsidiary resigned and refused to correctexercise its rights under the license to operate one block of 10MHz for the 2,500MHz frequency band. As a consequence, on February 11, 2020, the ICT Ministry initiated an alleged market failureadministrative proceeding to evaluate and imposing the following measures on Comcel: (i) asymmetric charges for mobile and incoming long-distance call terminations by other operators on Comcel’s wireless network, with access rates lower than the rates we pay our competitors, and (ii) restrictionsdecide on the rates we charge our users for calls outside our network(off-net calls), which must not exceedeffects caused by such resignation. Comcel was notified by the rates we charge for calls within our network(on-net calls). These asymmetric access charges ended ICT Ministry and was considered an interested third party
the administrative proceeding. The ICT Ministry imposed a sanction of 42 billion Colombian Pesos, approximately U.S. $12.3 million against Partners as a result of the aforementioned administrative proceeding.
mandatory conciliation stage.
Following the election of President Mauricio Macri in 2015, the Argentine government issued a Decree of Necessity and Urgency (Decreto de Necesidad y Urgencia, or “DNU”) to create a new communications ministry and regulator to oversee the telecommunications and media sectors.
As part of the measures passed under the DNU, fixed
decree allowing telecommunications providers, including AMX Argentina S.A. (“AMX Argentina”), to provide Pay TV services via cable within a limited number of territories as of January 2018 and to the rest of the country as of January 2019. AMX Argentina has obtained the permissions necessary to provide Pay TV services via cable in accordance with the decree to the territories approved by Enacom.
decree.
101
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Suprema de Justicia) issued a ruling requiring Claro to return 20 MHz of spectrum acquired through a band auction because Claro exceeded the limit of spectrum any given operator is permitted to hold. The return of such spectrum, including if and how such return should be implemented, is currently under discussion before the Competition Court (Tribunal de Defensa de laLibre Competencia, or the “TDLC”). In addition, pursuant to the ruling, and in order to increase the maximum limit, SUBTEL initiated a review of such limit of spectrum through a regulatory proceeding initiated before the TDLC which is in progress.
In 2018, SUBTEL issued a ruling to freeze Claro Chile´s use of 50 MHz in the 3.5 MHz band for the provision of wireless fixed services. Claro Chile has challenged such ruling. SUBTEL subsequently issued a new ruling unfreezing 30 MHz, allowing Claro Chile to provide wireless fixed services. Claro Chile has withdrawn its challenge, while the other 20 MHz remains temporarity frozen.
Some of Claro Chile’s concessions impose additional requirements, such as coverage, reporting
AMX Paraguay, S.A. (“AMX Paraguay”) holds licenses to operate in the 1900 MHz and the 1700/2100 MHz bands.
The DTH License was renewed for another 5 years (until 2025). Additionally, in January 2018, AMX Paraguay participated in a spectrum auction and was awarded a license to provide telecommunications services in the 700 MHz band. In November 2018, the Telecommunications Commission of Paraguay granted the renewal of spectrum license in the 1900 MHz band. These licenses are renewable, subject to regulatory approval, and contain coverage, reporting and service requirements.
date.
102
The Telecommunications Law (new regulations for operators with significant market power new penalties based on their gross incomes as well as additional fees also based on an operator’s gross income, but that can vary depending on the size of their market share. Consorcio Ecuatoriano de Telecomunicaciones, S.A. (“Conecel”) has been deemed to havea significant market powerpercentage of users in the advanced wireless services market, and as a result, suchtherefore is obliged to make fee payments are made on a quarterly basis onits income pursuant to the dates established by Arcotel.
For fiscal year 2018, Telecommunications Law.
However, the Law for Economic Development and Sustainability after the
The renewal of the PCS concession is in the process of negotiation with the Ecuadorian government.
On March 15, 2021, the Superintendence of Companies (
periods between 2009 and 2015.
This is a final and
103
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Each of the concessions was awarded by the MTC and covers a
The MTC has drafted a spectrum refarming proposal on the 2.5 Ghz band considering a new band distribution that grants 80 Mhz nationwide to Olo del Peru S.A.C. and TVS Wireless S.A.C. Currently, the spectrum refarming process is subject to comments from the public. A final decision on the proposal will be issue in July 2019.
| ||||||||||
COUNTRY | FREQUENCY | TERMINATION DATE | ||||||||
AUSTRIA | 800 MHz | |||||||||
900 MHz | ||||||||||
2044 | ||||||||||
2034 | ||||||||||
2044 | ||||||||||
| 2026 | |||||||||
2039 |
COUNTRY | FREQUENCY | TERMINATION DATE | ||||||||
BELARUS | Not applicable | |||||||||
| Not applicable | |||||||||
Not applicable | ||||||||||
BULGARIA | ||||||||||
| 2025 | |||||||||
2041 | ||||||||||
CROATIA | 2036 | |||||||||
| 800 MHz | 2024 | ||||||||
900 MHz | 2024 | |||||||||
1800 MHz | 2024 | |||||||||
2024 | ||||||||||
2036 | ||||||||||
| 2036 | |||||||||
NORTH MACEDONIA | 2033 | |||||||||
2023 | ||||||||||
2033 | ||||||||||
| 2028 |
COUNTRY | FREQUENCY | TERMINATION DATE | ||||||||
SERBIA | 2026 | |||||||||
900 MHz | 2026 | |||||||||
1800 MHz | 2026 | |||||||||
2100 MHz | 2026 | |||||||||
104
SLOVENIA | 700 MHz | 2036 | ||
800 MHz | 2029 | |||
900 MHz | 2031 | |||
1500 MHz | 2036 | |||
1800 MHz | 2031 | |||
2100 MHz | 2021 | |||
2600 MHz | 2029 | |||
3500 MHz | 2036 | |||
26000 MHz | 2029 |
COUNTRY | PRINCIPAL REGULATORY AUTHORITIES | CONCESSION AND LICENSES | ||
COSTA RICA | Superintendency of Telecommunications (Superintendencia de Telecomunicaciones) Ministerio de Ciencia, Innovación, Tecnología y Telecomunicaciones |
| ||
EL SALVADOR | Electricity and Telecommunications Superintendency ( Superintendencia General de Electricidad y Telecomunicaciones |
| ||
GUATEMALA | Guatemalan Telecommunications Agency ( Superintendencia de Telecomunicaciones |
| ||
NICARAGUA | Nicaraguan Telecommunications and Mailing Institute ( Instituto Nicaragüense de Telecomunicaciones y Correos | 2042 | ||
HONDURAS | Honduran National Telecommunications Commission ( Comisión Nacional de Telecomunicaciones |
| ||
PANAMA | National Authority of Public Services ( Autoridad Nacional de los Servicios Públicos |
|
105
|
COUNTRY | PRINCIPAL REGULATORY AUTHORITIES | CONCESSION AND LICENSES | ||
| ||||
|
| |||
DOMINICAN REPUBLIC | Dominican Institute of Telecommunications ( Instituto Dominicano de las Telecomunicaciones |
| ||
PUERTO RICO | 2031. respectively. 2030. |
106
PAGE INTENTIONALLY BLANK
PART VII ADDITIONAL INFORMATION
DECEMBER 31, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
NUMBER OF EMPLOYEES | 194,431 | 191,851 | 189,448 | |||||||||
CATEGORY OF ACTIVITY: | ||||||||||||
Wireless | 78,887 | 78,910 | 77,845 | |||||||||
Fixed | 97,104 | 94,496 | 92,429 | |||||||||
Other businesses | 18,440 | 18,445 | 19,174 | |||||||||
GEOGRAPHIC LOCATION: | ||||||||||||
Mexico | 90,306 | 88,417 | 88,613 | |||||||||
South America | 65,817 | 64,619 | 62,500 | |||||||||
Central America | 9,767 | 9,694 | 9,586 | |||||||||
United States | 848 | 852 | 848 | |||||||||
Caribbean | 9,488 | 9,311 | 9,195 | |||||||||
Europe | 18,205 | 18,958 | 18,706 |
| | DECEMBER 31, | �� | | ||||||||
| 2019 | 2020 | 2021 | |||||||||
NUMBER OF EMPLOYEES | 190,664 | 185,948 | 181,205 | |||||||||
CATEGORY OF ACTIVITY: | ||||||||||||
Wireless | 82,232 | 72,501 | 72,098 | |||||||||
Fixed | 87,034 | 91,460 | 86,788 | |||||||||
Other businesses | 21,398 | 21,987 | 22,319 | |||||||||
GEOGRAPHIC LOCATION: | ||||||||||||
Mexico | 89,539 | 88,172 | 87,233 | |||||||||
South America | 61,058 | 59,244 | 56,147 | |||||||||
Central America | 10,372 | 9,936 | 9,713 | |||||||||
Caribbean | 11,351 | 10,647 | 10,256 | |||||||||
Europe | 18,344 | 17,949 | 17,856 |
In each of the countries in which we operate, we are party to various legal proceedings in the ordinary course of business. These proceedings include tax, labor, antitrust, contractual matters and administrative and judicial proceedings concerning regulatory matters such as interconnection and tariffs. We are party to a number of proceedings regarding our compliance with administrative rules and regulations and concession standards. Our material legal proceedings are described in Note 17 to our audited consolidated financial statements included in this annual report and in “Regulation” under Part VI of this annual report. |
In each
YEAR ENDED DECEMBER 31, | ||||||||
2017 | 2018 | |||||||
(in millions of Mexican pesos) | ||||||||
Audit fees(1) | Ps. 245 | Ps. 248 | ||||||
Audit-related fees(2) | 31 | 23 | ||||||
Tax fees(3) | 34 | 30 | ||||||
Total fees | Ps. 310 | Ps 301 |
|
2021:
| YEAR ENDED DECEMBER 31, | |||||||
| 2020 | 2021 | ||||||
| (in millions of Mexican pesos) | |||||||
Audit fees (1) | Ps. 250 | Ps. 267 | ||||||
Audit-related fees (2) | 10 | 23 | ||||||
Tax fees (3) | 19 | 13 | ||||||
Total fees | Ps. 279 | Ps. 303 | ||||||
(1) Audit fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms in connection with the audit of our annual financial statements and statutory and regulatory audits.(2) Audit-related fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms for the review of reports on our operations submitted to IFT and attestation services that are not required by statute or regulation.(3) Tax fees represent fees billed by Mancera and its Ernst & Young Global affiliated firms for tax compliance services, tax planning services and tax advice services. |
111
112
or regulatory developments;
113
ITEM | FORM 20-F CAPTION | LOCATION IN THIS REPORT | PAGE | |||
1 | ||||||
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS | Not applicable | — | ||||
2 | ||||||
OFFER STATISTICS AND EXPECTED TIMETABLE | Not applicable | — | ||||
3 | ||||||
KEY INFORMATION | ||||||
3A Selected financial data | Selected financial data | |||||
3B Capitalization and indebtedness | Not applicable | — | ||||
3C Reasons for the offer and use of proceeds | Not applicable | — | ||||
3D Risk factors | Risk factors | |||||
4 | ||||||
INFORMATION ON THE COMPANY | ||||||
4A History and development of the Company | Information on the Company | |||||
Note 10—Property, Plant and Equipment, | ||||||
Liquidity and capital resources | ||||||
Additional Information | 85 | |||||
4B Business overview | Information on the Company | |||||
Regulation | 70 | |||||
4C Organizational structure | Exhibit 8.1 | — | ||||
4D Property, plant and equipment | Information on the Company | |||||
Note 10—Property Plant and Equipment, | ||||||
Liquidity and capital resources | ||||||
70 | ||||||
4A Unresolved staff comments | None | — | ||||
5 | ||||||
OPERATING AND FINANCIAL REVIEW AND PROSPECTS | ||||||
5A Operating results | Overview | |||||
Results of operations | ||||||
Regulation | 70 | |||||
Liquidity and capital resources | ||||||
5B Liquidity and capital resources | Note 14—Debt | |||||
5C Research and development, patents and licenses, etc. | Not applicable | — | ||||
5D Trend information | Overview | |||||
Results of operations | ||||||
5E | ||||||
6 | ||||||
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES | ||||||
6A Directors and senior management | Management | |||||
6B Compensation | Management | |||||
6C Board practices | Management | |||||
Management | 59 | |||||
6D Employees | Employees |
114
6E Share ownership | Major shareholders | 49 |
ITEM | FORM20-F CAPTION | LOCATION IN THIS REPORT | PAGE | |||||
6E Share ownership | Major shareholders | 60 | ||||||
Management | 83 | |||||||
7 | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS | |||||||
7A Major shareholders | Major shareholders | 60 | ||||||
7B Related party transactions | Related party transactions | 61 | ||||||
7C Interests of experts and counsel | Not applicable | — | ||||||
8 | FINANCIAL INFORMATION | |||||||
8A Consolidated statements and other financial information | Consolidated Financial Statements | 119 | ||||||
Dividends | 62 | |||||||
Note 16—Commitments and Contingencies | F-60 | |||||||
8B Significant changes | Not applicable | — | ||||||
9 | THE OFFER AND LISTING | |||||||
9A Offer and listing details | Trading markets | 62 | ||||||
9B Plan of distribution | Not applicable | — | ||||||
9C Markets | Trading markets | 62 | ||||||
9D Selling shareholders | Not applicable | — | ||||||
9E Dilution | Not applicable | — | ||||||
9F Expenses of the issue | Not applicable | — | ||||||
10 | ADDITIONAL INFORMATION | |||||||
10A Shareholders’ equity | Bylaws | 63 | ||||||
10B Memorandum and articles of association | Bylaws | 63 | ||||||
10C Material contracts | Information on the Company | 5 | ||||||
Results of operations | 22 | |||||||
Related party transactions | 61 | |||||||
Regulation | 91 | |||||||
10D Exchange controls | Additional information | 112 | ||||||
10E Taxation | Taxation of shares and ADSs | 68 | ||||||
10F Dividends and paying agents | Not applicable | — | ||||||
10G Statement by experts | Not applicable | — | ||||||
10H Documents on display | Additional information | 112 | ||||||
10I Subsidiary information | Not applicable | — | ||||||
11 | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | Risk management | 42 | |||||
Note 2 a)—Basis of Preparation of the Consolidated Financial Statements and Summary of Significant Accounting Policies and Practices | F-7 |
115
| Management | 59 |
ITEM | FORM20-F CAPTION | LOCATION IN THIS REPORT | PAGE | |||
12 | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES | |||||
12A Debt securities | Not applicable | — | ||||
12B Warrants and rights | Not applicable | — | ||||
12C Other securities | Not applicable | — | ||||
12D American Depositary Shares | Depositary shares | 66 | ||||
13 | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES | Not applicable | — | |||
14 | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY | |||||
HOLDERS AND USE OF PROCEEDS | Not applicable | — | ||||
15 | CONTROLS AND PROCEDURES | Controls and procedures | 87 | |||
16A | AUDIT COMMITTEE FINANCIAL EXPERT | Management | 74 | |||
16B | CODE OF ETHICS | Code of ethics | 89 | |||
16C | PRINCIPAL ACCOUNTANT FEES AND SERVICES | Principal accountant fees and services | 111 | |||
16D | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES | Not applicable | — | |||
16E | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFIIATED PURCHASERS | Purchases of equity securities by the issuer and affiliated purchasers | 67 | |||
16F | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT | Not applicable | — | |||
16G | CORPORATE GOVERNANCE | Corporate governance | 73 | |||
16H | MINE SAFETY DISCLOSURE | Not applicable | — | |||
17 | FINANCIAL STATEMENTS | Not applicable | — | |||
18 | FINANCIAL STATEMENTS | Consolidated Financial statements | 119 | |||
19 | EXHIBITS | Additional Information | 112 |
116
| MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS | |||||
7A Major shareholders | Major shareholders | 49 | ||||
7B Related party transactions | Related party transactions | 50 | ||||
7C Interests of experts and counsel | Not applicable | — | ||||
8 | FINANCIAL INFORMATION | |||||
8A Consolidated statements and other financial information | Consolidated Financial Statements | 93 | ||||
Dividends | 50 | |||||
Note 17—Commitments and Contingencies | F-64 | |||||
8B Significant changes | Not applicable | — |
ITEM | FORM 20-F CAPTION | LOCATION IN THIS REPORT | PAGE | |||
9 | THE OFFER AND LISTING | |||||
9A Offer and listing details | Trading markets | 51 | ||||
9B Plan of distribution | Not applicable | — | ||||
9C Markets | Trading markets | 51 | ||||
9D Selling shareholders | Not applicable | — | ||||
9E Dilution | Not applicable | — | ||||
9F Expenses of the issue | Not applicable | — | ||||
10 | ADDITIONAL INFORMATION | |||||
10A Share Capital | Not applicable | — | ||||
10B Memorandum and articles of association | Bylaws | 51 | ||||
10C Material contracts | Information on the Company | 9 | ||||
Results of operations | 25 | |||||
Related party transactions | 50 | |||||
Regulation | 70 | |||||
10D Exchange controls | Additional information | 85 | ||||
10E Taxation | Taxation of shares and ADSs | 53 | ||||
10F Dividends and paying agents | Not applicable | — | ||||
10G Statement by experts | Not applicable | — | ||||
10H Documents on display | Additional information | 85 | ||||
10I Subsidiary information | Not applicable | — | ||||
11 | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | Risk management | 34 | |||
Note 2 a)—Basis of Preparation of the Consolidated Financial Statements and Summary of Significant Accounting Policies and Practices | F-11 | |||||
12 | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES | |||||
12A Debt securities | Not applicable | — | ||||
12B Warrants and rights | Not applicable | — | ||||
12C Other securities | Not applicable | — | ||||
12D American Depositary Shares | Bylaws | 51 | ||||
13 | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES | Not applicable | — | |||
14 | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | Not applicable | — | |||
15 | CONTROLS AND PROCEDURES | Controls and procedures | 65 | |||
16A | AUDIT COMMITTEE FINANCIAL EXPERT | Management | 59 | |||
16B | CODE OF ETHICS | Code of ethics | 68 | |||
16C | PRINCIPAL ACCOUNTANT FEES AND SERVICES | Principal accountant fees and services | 87 | |||
16D | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES | Not applicable | — | |||
16E | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PUR- CHASERS | Purchases of equity securities by the issuer and affiliated purchasers | 52 | |||
16F | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT | Not applicable | — | |||
16G | CORPORATE GOVERNANCE | Corporate governance | 63 | |||
16H | MINE SAFETY DISCLOSURE | Not applicable | — | |||
16I | DISCLOSURE REGARDING FOREIGN JURISDICATIONS THAT PREVENT IN- SPECTIONS | Not applicable | — | |||
17 | FINANCIAL STATEMENTS | Not applicable | — | |||
18 | FINANCIAL STATEMENTS | Consolidated Financial statements | 93 | |||
19 | EXHIBITS | Additional Information | 85 | |||
19 | EXHIBITS | Additional Information |
29, 2022
By: | /s/ Carlos José García Moreno Elizondo | |
Name: | Carlos José García Moreno Elizondo | |
Title: | Chief Financial Officer |
By: | /s/ Alejandro Cantú Jiménez | |
Name: | Alejandro Cantú Jiménez | |
Title: | General Counsel |
117
PART VIII CONSOLIDATED FINANCIAL STATEMENTS
2021
F-2 | ||||
Audited Consolidated Financial Statements: | ||||
F-6 | ||||
F-7 | ||||
F-8 | ||||
F-9 | ||||
F-10 |
F-1
The
Deferred tax assets, realizability of Net Operating Loss Carryforwards | ||
Description of the Matter | As discussed in Note 13 to the consolidated financial statements, as of December 31, 2021, the net balance of deferred tax assets was Ps.77,822,839 thousand. The Company has recognized deferred tax assets arising from net operating loss carryforwards (NOLs) of approximately Ps.24,449,622 thousand. The NOLs were generated primarily by its subsidiary in Brazil. Auditing management’s assessment of the realizability of the deferred tax assets arising from Brazilian NOLs involved complex auditor judgement because management´s estimate of realizability was based on assessing the probability, timing and sufficiency of expected reversals of taxable temporary differences, future taxable profits and available tax planning opportunities. These projections are sensitive because they can be affected by future operating results and future market and economic conditions. | |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement related to the realizability of the deferred tax assets. We tested controls over management’s analyses of future reversal of existing taxable temporary differences, their projections of future taxable income and related assumptions used in developing the projected financial information and their identification of available tax planning opportunities. Our audit also included the testing of controls that address the completeness and accuracy of the data utilized in the analysis. To test the realizability of the deferred tax assets arising from NOLs our audit procedures included, among other things, the review of management´s estimates of future taxable income in Brazil, the methodology used, the significant assumptions and the underlying data used by the Company in developing the projected financial information, such as the weighted average cost of capital, customer attrition rates, growth rates, and other key assumptions by comparing them with historical, economic and industry trends and evaluating whether changes to the Company´s business model and other factors would significantly affect the projected financial information. We also involved our valuation specialists to evaluate the analysis and assumptions used, and to test the calculations used by the Company. In addition, with the assistance of our tax professionals, we assessed the application of relevant tax laws, including assessing the Company’s future tax planning opportunities and tested the Company´s scheduling of the timing and amounts of expected reversals of taxable temporary differences. We also assessed the adequacy of the related financial statement disclosures. | |
Impairment of goodwill | ||
Description of the Matter | As discussed in Note 2 and Note 11 to the consolidated financial statements, as of December 31, 2021, the Company’s goodwill balance was Ps.136,578,194 thousand. The Company tests goodwill at least annually at the Cash Generating Unit (CGU) level. Impairment exists when the carrying value of a CGU exceeds its recoverable amount, which is the higher of its fair value less cost to sell and its value-in-use. Auditing management´s annual assessment of impairment of goodwill involved complex auditor judgement because the estimations required to determine the value-in-use |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement related to the determination of the impairment of goodwill, including controls over management’s review of the significant assumptions described above, projected financial information and the valuation model used to develop such estimates. To test the impairment of goodwill our audit procedures included, among others, evaluating the methodology used, testing the significant assumptions mentioned above and the underlying data used by the Company. We assessed the historical accuracy of management’s estimates and projections by comparing them to actual results and obtaining appropriate explanations for the variances; examined management’s support for the current estimates and projections by comparing them to industry and economic trends, including market participant data; evaluated management’s methodology on the estimation of the weighted average cost of capital reflecting the economic conditions for each CGU; tested the completeness and accuracy of the underlying data, and evaluated other factors that would significantly affect the projected financial information and thus the value-in-use In addition, we involved our valuation specialist to evaluate the methodologies and assumptions used and to test the calculations made by the Company. We also assessed the adequacy of the related financial statement disclosures. | |
Discount rate used in determining defined benefit pension obligations in Mexico | ||
Description of the Matter | As discussed in Note 2, item iii), q) and in Note 18 to the consolidated financial statements, as of December 31, 2021, the defined benefit pension obligation balance was Ps.142,850,465 thousand. The Company assessed and updated its estimates and assumptions used to actuarially measure and value the defined benefit pension obligation as of December 31, 2021, using the assistance of independent actuarial specialists. Auditing the defined benefit pension obligation which the majority of it arises from one of its subsidiaries in Mexico and for which this matter is related, involved complex auditor judgement and required the involvement of our actuarial and valuation specialists because of the highly judgmental nature of the actuarial assumptions, primarily the discount rate used in the Company’s measurement process. This assumption was complex because it required a valuation of the credit quality of the corporate bonds used to develop the discount rate and the correlation of those bonds’ cash inflows to the timing and amount of future expected benefit payments. | |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement relating to the determination of the discount rate used in the defined benefit pension obligations calculations. We tested controls over management’s determination and review of the discount rate provided to the independent actuaries. To test the determination of the discount rate of the defined benefit pension obligation we involved our valuation and actuarial specialists to assist us in evaluating the methodology used to select the yield curve applied on the calculation, assessing the credit quality of the corporate bonds that comprise the yield curve, the timing and amount of cash flows at maturity with the expected amounts and duration of the related benefit payments. |
We also evaluated the objectivity and competence management´s qualified persons responsible for overseeing the preparation of the discount rate through the consideration of their professional qualifications, experience and their use of accepted methodology. We also assessed the adequacy of the related financial statement disclosures. |
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Note | At December 31, | |||||||||||||||
2017 | 2018 | 2018 Millions of U.S. dollars | ||||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | 3 | Ps. | 24,270,473 | Ps. | 21,659,962 | US$ | 1,100 | |||||||||
Equity investments at fair value through OCI and other short-term investments | 4 | 59,120,676 | 49,015,934 | 2,490 | ||||||||||||
Accounts receivable: | ||||||||||||||||
Subscribers, distributors, recoverable taxes, contract assets and other, net | 5 | 193,776,144 | 216,226,920 | 10,986 | ||||||||||||
Related parties | 6 | 868,230 | 1,263,605 | 64 | ||||||||||||
Derivative financial instruments | 7 | 8,037,384 | 5,287,548 | 269 | ||||||||||||
Inventories, net | 8 | 38,809,565 | 40,305,362 | 2,048 | ||||||||||||
Other current assets, net | 9 | 17,352,746 | 15,296,193 | 777 | ||||||||||||
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Total current assets | Ps. | 342,235,218 | Ps. | 349,055,524 | US$ | 17,734 | ||||||||||
Non-current assets: | ||||||||||||||||
Property, plant and equipment, net | 10 | Ps. | 676,343,198 | Ps. | 640,000,720 | US$ | 32,516 | |||||||||
Intangibles, net | 11 | 143,539,626 | 122,137,703 | 6,205 | ||||||||||||
Goodwill | 11 | 151,463,232 | 145,566,497 | 7,396 | ||||||||||||
Investments in associated companies | 3,735,172 | 3,132,707 | 159 | |||||||||||||
Deferred income taxes | 13 | 116,571,349 | 111,186,768 | 5,649 | ||||||||||||
Accounts receivable, subscriber, distributors and contract assets, net | 5 | 9,786,581 | 15,681,872 | 797 | ||||||||||||
Other assets, net | 9 | 42,537,476 | 42,461,601 | 2,157 | ||||||||||||
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Total assets | Ps. | 1,486,211,852 | Ps. | 1,429,223,392 | US$ | 72,613 | ||||||||||
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Liabilities and equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Short-term debt and current portion of long-term debt | 14 | Ps. | 51,745,841 | Ps. | 96,230,634 | US$ | 4,889 | |||||||||
Accounts payable | 15a | 212,673,407 | 221,957,267 | 11,277 | ||||||||||||
Accrued liabilities | 15b | 67,752,758 | 56,433,691 | 2,867 | ||||||||||||
Income tax | 9,362,009 | 19,232,191 | 977 | |||||||||||||
Other taxes payable | 24,387,484 | 23,979,334 | 1,218 | |||||||||||||
Derivative financial instruments | 7 | 10,602,539 | 13,539,716 | 688 | ||||||||||||
Related parties | 6 | 2,540,412 | 2,974,213 | 151 | ||||||||||||
Deferred revenues | 34,272,047 | 32,743,843 | 1,664 | |||||||||||||
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Total current liabilities | Ps. | 413,336,497 | Ps. | 467,090,889 | US$ | 23,731 | ||||||||||
Non-current-liabilities: | ||||||||||||||||
Long-term debt | 14 | Ps. | 646,139,058 | Ps. | 542,691,819 | US$ | 27,572 | |||||||||
Deferred income taxes | 13 | 11,997,364 | 24,573,441 | 1,248 | ||||||||||||
Income tax | 8,622,500 | 7,891,042 | 401 | |||||||||||||
Deferred revenues | 3,183,727 | 3,239,301 | 165 | |||||||||||||
Derivative financial instruments | 7 | 3,756,921 | 3,567,863 | 181 | ||||||||||||
Asset retirement obligations | 15c | 18,245,129 | 15,971,601 | 811 | ||||||||||||
Employee benefits | 17 | 120,297,139 | 118,325,014 | 6,012 | ||||||||||||
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Totalnon-current liabilities | Ps. | 812,241,838 | Ps. | 716,260,081 | US$ | 36,390 | ||||||||||
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Total liabilities | Ps. | 1,225,578,335 | Ps. | 1,183,350,970 | US$ | 60,121 | ||||||||||
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Equity: | ||||||||||||||||
Capital stock | 19 | Ps. | 96,338,508 | Ps. | 96,338,378 | US$ | 4,895 | |||||||||
Retained earnings: | ||||||||||||||||
Prior years | 141,761,677 | 184,689,288 | 9,383 | |||||||||||||
Profit for the year | 29,325,921 | 52,566,197 | 2,670 | |||||||||||||
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Total retained earnings | 171,087,598 | 237,255,485 | 12,053 | |||||||||||||
Other comprehensive loss items | (73,261,794 | ) | (137,598,218 | ) | (6,990 | ) | ||||||||||
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Equity attributable to equity holders of the parent | 194,164,312 | 195,995,645 | 9,958 | |||||||||||||
Non-controlling interests | 66,469,205 | 49,876,777 | 2,534 | |||||||||||||
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Total equity | 260,633,517 | 245,872,422 | 12,492 | |||||||||||||
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Total liabilities and equity | Ps. | 1,486,211,852 | Ps. | 1,429,223,392 | US$ | 72,613 | ||||||||||
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Note | At December 31, | |||||||||||||
2020 | 2021 | 2021 Millions of U.S. dollars | ||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | 3 | Ps. | 35,917,907 | Ps. | 38,679,891 | US$ | 1,879 | |||||||
Equity investments at fair value through other comprehensive income (OCI) and other short-term investments | 4 | 50,096,051 | 117,703,202 | 5,718 | ||||||||||
Accounts receivable: | ||||||||||||||
Subscribers, distributors, recoverable taxes, contract assets and other, net | 5 | 207,977,954 | 202,846,597 | 9,855 | ||||||||||
Related parties | 6 | 1,391,300 | 1,158,611 | 56 | ||||||||||
Derivative financial instruments | 7 | 20,928,335 | 10,130,806 | 492 | ||||||||||
Inventories, net | 8 | 30,377,439 | 24,185,310 | 1,175 | ||||||||||
Other current assets, net | 9 | 8,993,907 | 9,452,252 | 459 | ||||||||||
Total current assets | Ps. | 355,682,893 | Ps. | 404,156,669 | US$ | 19,634 | ||||||||
Non-current assets: | ||||||||||||||
Property, plant and equipment, net | 10 | Ps. | 722,929,631 | Ps. | 731,196,679 | US$ | 35,523 | |||||||
Intangibles, net | 11 | 133,456,967 | 143,225,764 | 6,958 | ||||||||||
Goodwill | 11 | 143,052,859 | 136,578,194 | 6,635 | ||||||||||
Investments in associated companies | 1,829,760 | 3,052,481 | 148 | |||||||||||
Deferred income taxes | 13 | 115,370,240 | 127,287,934 | 6,184 | ||||||||||
Accounts receivable, subscriber, distributors and contract assets, net | 5 | 7,792,863 | 6,928,888 | 337 | ||||||||||
Other assets, net | 9 | 38,415,826 | 39,956,090 | 1,941 | ||||||||||
Debt instruments at fair value through other comprehensive income (OCI) | 4 | 4,540,344 | 6,894,757 | 335 | ||||||||||
Right-of-use assets | 15 | 101,976,844 | 90,372,393 | 4,391 | ||||||||||
Total assets | Ps. | 1,625,048,227 | Ps. | 1,689,649,849 | US$ | 82,086 | ||||||||
Liabilities and equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term debt and current portion of long-term debt | 14 | Ps. | 148,083,184 | Ps. | 145,222,672 | US$ | 7,055 | |||||||
Short-term liability related to right-of-use of assets | 15 | 25,067,905 | 27,632,357 | 1,342 | ||||||||||
Accounts payable | 16a | 186,995,472 | 206,487,681 | 10,032 | ||||||||||
Accrued liabilities | 16b | 50,291,851 | 54,391,464 | 2,642 | ||||||||||
Income tax | 13 | 14,644,979 | 33,247,318 | 1,615 | ||||||||||
Other taxes payable | 27,969,739 | 26,278,007 | 1,277 | |||||||||||
Derivative financial instruments | 7 | 14,230,249 | 10,034,508 | 488 | ||||||||||
Related parties | 6 | 3,999,916 | 4,216,882 | 205 | ||||||||||
Deferred revenues | 36,027,383 | 26,501,877 | 1,288 | |||||||||||
Total current liabilities | Ps. | 507,310,678 | Ps. | 534,012,766 | US$ | 25,944 | ||||||||
Non-current liabilities: | ||||||||||||||
Long-term debt | 14 | Ps. | 480,299,772 | Ps. | 418,807,430 | US$ | 20,347 | |||||||
Long-term liability related to right-of-use of assets | 15 | 84,259,336 | 71,021,868 | 3,450 | ||||||||||
Deferred income taxes | 13 | 49,067,163 | 49,465,095 | 2,403 | ||||||||||
Deferred revenues | 2,875,467 | 2,698,276 | 131 | |||||||||||
Asset retirement obligations | 16c | 17,887,991 | 16,752,223 | 814 | ||||||||||
Employee benefits | 18 | 168,230,202 | 142,850,465 | 6,940 | ||||||||||
Total non-current liabilities | Ps. | 802,619,931 | Ps. | 701,595,357 | US$ | 34,085 | ||||||||
Total liabilities | Ps. | 1,309,930,609 | Ps. | 1,235,608,123 | US$ | 60,029 | ||||||||
Equity: | ||||||||||||||
Capital stock | 20 | Ps. | 96,341,695 | Ps. | 96,333,432 | US$ | 4,680 | |||||||
Retained earnings: | ||||||||||||||
Prior years | 267,865,420 | 255,267,259 | 12,402 | |||||||||||
Profit for the year | 46,852,605 | 192,423,167 | 9,348 | |||||||||||
Total retained earnings | 314,718,025 | 447,690,426 | 21,750 | |||||||||||
Other comprehensive loss items | (160,580,917 | ) | (154,388,931 | ) | (7,502 | ) | ||||||||
Equity attributable to equity holders of the parent | 250,478,803 | 389,634,927 | 18,928 | |||||||||||
Non-controlling interests | 64,638,815 | 64,406,799 | 3,129 | |||||||||||
Total equity | 315,117,618 | 454,041,726 | 22,057 | |||||||||||
Total liabilities and equity | Ps. | 1,625,048,227 | Ps. | 1,689,649,849 | US$ | 82,086 | ||||||||
Note | For the year ended December 31 | |||||||||||||||||
2016 | 2017 | 2018 | 2018 Millions of U.S. dollars, except for earnings per share | |||||||||||||||
Operating revenues: | ||||||||||||||||||
Revenues services | Ps. | 831,885,365 | Ps. | 878,411,323 | Ps. | 863,647,642 | US$ | 43,878 | ||||||||||
Sales of equipment | 143,527,123 | 143,222,212 | 174,560,039 | 8,869 | ||||||||||||||
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Ps. | 975,412,488 | Ps. | 1,021,633,535 | Ps. | 1,038,207,681 | US$ | 52,747 | |||||||||||
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Operating costs and expenses: | ||||||||||||||||||
Cost of sales and services | 485,060,579 | 496,335,746 | 508,822,430 | 25,851 | ||||||||||||||
Commercial, administrative and general expenses | 228,101,116 | 240,634,431 | 227,192,478 | 11,543 | ||||||||||||||
Other expenses | 4,114,562 | 24,345,113 | 6,923,022 | 352 | ||||||||||||||
Depreciation and amortization | 9,10 and 11 | 148,525,921 | 160,174,942 | 155,712,580 | 7,911 | |||||||||||||
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Ps. | 865,802,178 | Ps. | 921,490,232 | Ps. | 898,650,510 | US$ | 45,657 | |||||||||||
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Operating income | Ps. | 109,610,310 | Ps. | 100,143,303 | Ps. | 139,557,171 | US$ | 7,090 | ||||||||||
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Interest income | 4,192,595 | 2,925,648 | 10,646,169 | 541 | ||||||||||||||
Interest expense | (33,862,012 | ) | (30,300,781 | ) | (31,771,433 | ) | (1,614 | ) | ||||||||||
Foreign currency exchange loss, net | (40,427,407 | ) | (13,818,951 | ) | (7,261,956 | ) | (369 | ) | ||||||||||
Valuation of derivatives, interest cost from labor obligations and other financial items, net | 21 | (16,225,841 | ) | (1,943,760 | ) | (10,176,316 | ) | (517 | ) | |||||||||
Equity interest in net result of associated companies | 189,950 | 91,385 | 267 | — | ||||||||||||||
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Profit before income tax | 23,477,595 | 57,096,844 | 100,993,902 | 5,131 | ||||||||||||||
Income tax | 13 | 11,398,856 | 24,941,511 | 46,477,079 | 2,361 | |||||||||||||
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Net profit for the year | Ps. | 12,078,739 | Ps. | 32,155,333 | Ps. | 54,516,823 | US$ | 2,770 | ||||||||||
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Net profit for the year attributable to: | ||||||||||||||||||
Equity holders of the parent | Ps. | 8,649,427 | Ps. | 29,325,921 | Ps. | 52,566,197 | US$ | 2,670 | ||||||||||
Non-controlling interests | 3,429,312 | 2,829,412 | 1,950,626 | 100 | ||||||||||||||
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Ps. | 12,078,739 | Ps. | 32,155,333 | Ps. | 54,516,823 | US$ | 2,770 | |||||||||||
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Basic and diluted earnings per share attributable to equity holders of the parent | Ps. | 0.13 | Ps. | 0.44 | Ps. | 0.79 | US$ | 0.04 | ||||||||||
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Other comprehensive income (loss) items: | ||||||||||||||||||
Net other comprehensive (loss) income that may be reclassified to profit or loss in subsequent years: | ||||||||||||||||||
Effect of translation of foreign entities | Ps. | 107,498,708 | Ps. | (18,309,877 | ) | Ps. | (64,314,032 | ) | US$ | (3,268 | ) | |||||||
Effect of fair value of derivatives, net of deferred taxes | 49,129 | 12,292 | — | — | ||||||||||||||
Items that will not be reclassified to (loss) or profit in subsequent years: | ||||||||||||||||||
Re-measurement of defined benefit plan, net of deferred taxes | 14,773,399 | (7,046,089 | ) | 757,278 | 38 | |||||||||||||
Unrealized (loss) gain on equity investments at fair value, net of deferred taxes | (6,673,731 | ) | 622,424 | (3,765,688 | ) | (191 | ) | |||||||||||
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Total other comprehensive income (loss) items for the year, net of deferred taxes | 20 | 115,647,505 | (24,721,250 | ) | (67,322,442 | ) | (3,421 | ) | ||||||||||
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Total comprehensive income (loss) for the year | Ps. | 127,726,244 | Ps. | 7,434,083 | Ps. | (12,805,619 | ) | US$ | (651 | ) | ||||||||
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Comprehensive income (loss) for the year attributable to: | ||||||||||||||||||
Equity holders of the parent | Ps. | 120,974,842 | Ps. | 1,201,698 | Ps. | (11,770,227 | ) | US$ | (598 | ) | ||||||||
Non-controlling interests | 6,751,402 | 6,232,385 | (1,035,392 | ) | (53 | ) | ||||||||||||
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Ps. | 127,726,244 | Ps. | 7,434,083 | Ps. | (12,805,619 | ) | US$ | (651 | ) | |||||||||
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Note | For the years ended December 31 | |||||||||||||||||
2019 (1) | 2020 (1) | 2021 | 2021 Millions of U.S. dollars, except for earnings per share | |||||||||||||||
Operating revenues: | ||||||||||||||||||
Service revenues | Ps . | 702,961,964 | Ps . | 708,483,701 | Ps . | 714,244,392 | US$ | 34,700 | ||||||||||
Sales of equipment | 148,521,512 | 131,223,459 | 141,290,479 | 6,864 | ||||||||||||||
Ps . | 851,483,476 | Ps. | 839,707,160 | Ps . | 855,534,871 | US$ | 41,564 | |||||||||||
Operating costs and expenses: | ||||||||||||||||||
Cost of sales and services | 348,776,249 | 334,881,859 | 341,059,662 | 16,570 | ||||||||||||||
Commercial, administrative and general expenses | 195,507,880 | 191,901,898 | 180,838,412 | 8,786 | ||||||||||||||
Other expenses | 5,882,276 | 4,737,626 | 4,877,290 | 237 | ||||||||||||||
Depreciation and amortization | 9,10,11 and 15 | 157,518,787 | 162,682,398 | 162,626,866 | 7,901 | |||||||||||||
Ps . | 707,685,192 | Ps . | 694,203,781 | Ps . | 689,402,230 | US$ | 33,494 | |||||||||||
Operating income | Ps . | 143,798,284 | Ps . | 145,503,379 | Ps. | 166,132,641 | US$ | 8,070 | ||||||||||
Interest income | 6,284,672 | 5,062,036 | 3,834,827 | 186 | ||||||||||||||
Interest expense | (37,910,954 | ) | (38,661,485 | ) | (36,025,312 | ) | (1,750 | ) | ||||||||||
Foreign currency exchange gain (loss), net | 5,226,071 | (65,366,200 | ) | (17,045,843 | ) | (828 | ) | |||||||||||
Valuation of derivatives, interest cost from labor obligations and other financial items, net | 22 | (6,997,844 | ) | 1,292,878 | (14,250,066 | ) | (692 | ) | ||||||||||
Equity interest in net result of associated companies | (17,609 | ) | (287,006 | ) | 113,918 | 6 | ||||||||||||
Profit before income tax | 110,382,620 | 47,543,602 | 102,760,165 | 4,992 | ||||||||||||||
Income tax | 13 | 49,914,055 | 13,509,270 | 28,144,769 | 1,367 | |||||||||||||
Net profit for the year from continuing operations | Ps. | 60,468,565 | Ps. | 34,034,332 | Ps. | 74,615,396 | US$ | 3,625 | ||||||||||
Profit after tax for the year from discontinued operations | 9,844,889 | 16,992,625 | 121,710,718 | 5,913 | ||||||||||||||
Net profit for the year | Ps. | 70,313,454 | Ps. | 51,026,957 | Ps. | 196,326,114 | US$ | 9,538 | ||||||||||
Net profit for the year attributable to: | ||||||||||||||||||
Equity holders of the parent from continuing operations | Ps. | 57,886,001 | Ps. | 29,859,980 | Ps. | 70,712,449 | US$ | 3,435 | ||||||||||
Equity holders of the parent from discontinued operations | 2, Ac | 9,844,889 | 16,992,625 | 121,710,718 | 5,913 | |||||||||||||
Non-controlling interests | 2,582,564 | 4,174,352 | 3,902,947 | 190 | ||||||||||||||
Ps. | 70,313,454 | Ps. | 51,026,957 | Ps. | 196,326,114 | US$ | 9,538 | |||||||||||
Basic and diluted earnings per share attributable to equity holders of the parent from continuing operations | 20 | Ps. | 0.88 | Ps. | 0.45 | Ps. | 1.07 | US$ | 0.05 | |||||||||
Basic and diluted earnings per share attributable to equity holders of the parent from discontinued operations | 20 | Ps. | 0.15 | Ps. | 0.26 | Ps. | 1.85 | US$ | 0.09 | |||||||||
Other comprehensive income (loss) items: | ||||||||||||||||||
Net other comprehensive loss that may be reclassified to profit or loss in subsequent years: | ||||||||||||||||||
Effect of translation of foreign entities from continuing operations | Ps. | (35,536,252 | ) | Ps. | (11,515,297 | ) | Ps. | (7,134,153 | ) | US$ | (347 | ) | ||||||
Effect of translation of foreign entities from discontinued operations | — | — | (829,163 | ) | (40 | ) | ||||||||||||
Items that will not be reclassified to (loss) or profit in subsequent years: | ||||||||||||||||||
Re-measurement of defined benefit plan, net of deferred taxes | (29,535,672 | ) | (10,299,558 | ) | 11,261,896 | 547 | ||||||||||||
Unrealized (loss) gain on equity investments at fair value, net of deferred taxes | 883,409 | (1,952,414 | ) | 4,560,869 | 222 | |||||||||||||
Revaluation surplus, net of deferred taxes | — | 77,230,031 | 0 | 0 | ||||||||||||||
Total other comprehensive (loss) income items for the year, net of deferred taxes | 21 | (64,188,515 | ) | 53,462,762 | 7,859,449 | 382 | ||||||||||||
Total comprehensive income for the year | Ps. | 6,124,939 | Ps. | 104,489,719 | Ps. | 204,185,563 | US$ | 9,920 | ||||||||||
Comprehensive income for the year attributable to: | ||||||||||||||||||
Equity holders of the parent from continuing operations | Ps. | 5,450,679 | Ps. | 86,150,118 | Ps. | 202,418,502 | US$ | 9,834 | ||||||||||
Non-controlling interests | 674,260 | 18,339,601 | 1,767,061 | 86 | ||||||||||||||
Ps. | 6,124,939 | Ps. | 104,489,719 | Ps. | 204,185,563 | US$ | 9,920 | |||||||||||
Comprehensive income for the period: | ||||||||||||||||||
Net comprehensive (loss) income from continuing operations | Ps. | (3,719,950 | ) | Ps. | 87,497,094 | Ps. | 82,474,845 | US$ | 4,007 | |||||||||
Net comprehensive income from discontinued operations | 2, Ac | 9,844,889 | 16,992,625 | 121,710,718 | 5,913 | |||||||||||||
Ps. | 6,124,939 | Ps. | 104,489,719 | Ps. | 204,185,563 | US$ | 9,920 | |||||||||||
(1) | Restated for discontinued operations. |
2021
Capital stock | Legal reserve | Retained earnings | Effect of derivative financial instruments acquired for hedging purposes | Unrealized gain (loss) on equity investment at fair value | Re-measurement of defined benefit plans | Cumulative translation adjustment | Total equity attributable to equity holders of the parent | Non- controlling interests | Total equity | |||||||||||||||||||||||||||||||
Balance at December 31, 2015 | Ps. | 96,338,477 | Ps. | 358,440 | Ps. | 171,972,999 | Ps. | (60,788) | Ps. | 4,011 | Ps. | (82,844,947) | Ps. | (73,490,197) | Ps. | 112,277,995 | Ps. | 48,576,191 | Ps. | 160,854,186 | ||||||||||||||||||||
Net profit for the year | — | — | 8,649,427 | — | — | — | — | 8,649,427 | 3,429,312 | 12,078,739 | ||||||||||||||||||||||||||||||
Effect of fair value of derivatives, net of deferred taxes | — | — | — | 48,496 | — | — | — | 48,496 | 633 | 49,129 | ||||||||||||||||||||||||||||||
Unrealized loss on equity investments at fair value, net of deferred taxes | — | — | — | — | (6,673,731 | ) | — | — | (6,673,731 | ) | — | (6,673,731 | ) | |||||||||||||||||||||||||||
Remeasurement of defined benefit plan, net of deferred taxes | — | — | — | — | — | 14,771,770 | — | 14,771,770 | 1,629 | 14,773,399 | ||||||||||||||||||||||||||||||
Effect of translation of foreign entities | — | — | — | — | — | — | 104,178,880 | 104,178,880 | 3,319,828 | 107,498,708 | ||||||||||||||||||||||||||||||
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Comprehensive income (loss) for the year | — | — | 8,649,427 | 48,496 | (6,673,731 | ) | 14,771,770 | 104,178,880 | 120,974,842 | 6,751,402 | 127,726,244 | |||||||||||||||||||||||||||||
Dividends declared | — | — | (18,339,294) | — | — | — | — | (18,339,294 | ) | (652,341 | ) | (18,991,635 | ) | |||||||||||||||||||||||||||
Stock dividend (Note 19) | 1,512 | — | 4,606,274 | — | — | — | — | 4,607,786 | — | 4,607,786 | ||||||||||||||||||||||||||||||
Repurchase of shares | (2,475 | ) | — | (7,213,397 | ) | — | — | — | — | (7,215,872 | ) | — | (7,215,872 | ) | ||||||||||||||||||||||||||
Partial sale of shares of Telekom Austria (Note 12) | — | — | — | — | — | 68,127 | (1,139,192 | ) | (1,071,065 | ) | 7,394,401 | 6,323,336 | ||||||||||||||||||||||||||||
Other acquisitions ofnon-controlling interests (Note 12) | — | — | (2,319,149 | ) | — | — | — | — | (2,319,149 | ) | 38,871 | (2,280,278 | ) | |||||||||||||||||||||||||||
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Balance at December 31, 2016 | 96,337,514 | 358,440 | 157,356,860 | (12,292 | ) | (6,669,720) | (68,005,050 | ) | 29,549,491 | 208,915,243 | 62,108,524 | 271,023,767 | ||||||||||||||||||||||||||||
Net profit for the year | — | — | 29,325,921 | — | — | — | — | 29,325,921 | 2,829,412 | 32,155,333 | ||||||||||||||||||||||||||||||
Effect of fair value of derivatives, net of deferred taxes | — | — | — | 12,292 | — | — | — | 12,292 | — | 12,292 | ||||||||||||||||||||||||||||||
Unrealized gain on equity investments at fair value, net of deferred taxes | — | — | — | — | 622,424 | — | — | 622,424 | — | 622,424 | ||||||||||||||||||||||||||||||
Remeasurement of defined benefit plan, net of deferred taxes | — | — | — | — | — | (7,075,606 | ) | — | (7,075,606 | ) | 29,517 | (7,046,089 | ) | |||||||||||||||||||||||||||
Effect of translation of foreign entities | — | — | — | — | — | — | (21,683,333 | ) | (21,683,333 | ) | 3,373,456 | (18,309,877 | ) | |||||||||||||||||||||||||||
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Comprehensive income (loss) for the year | — | — | 29,325,921 | 12,292 | 622,424 | (7,075,606 | ) | (21,683,333 | ) | 1,201,698 | 6,232,385 | 7,434,083 | ||||||||||||||||||||||||||||
Dividends declared | — | — | (19,815,470 | ) | — | — | — | — | (19,815,470 | ) | (1,848,108 | ) | (21,663,578 | ) | ||||||||||||||||||||||||||
Stock dividend (Note 19) | 1,264 | — | 4,902,818 | — | — | — | — | 4,904,082 | — | 4,904,082 | ||||||||||||||||||||||||||||||
Repurchase of shares | (270 | ) | — | (1,040,686 | ) | — | — | — | — | (1,040,956 | ) | — | (1,040,956 | ) | ||||||||||||||||||||||||||
Other acquisitions ofnon-controlling interests (Note 12) | — | — | (285 | ) | — | — | — | — | (285 | ) | (23,596 | ) | (23,881 | ) | ||||||||||||||||||||||||||
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As of January 1 2018 | 96,338,508 | 358,440 | 170,729,158 | — | (6,047,296 | ) | (75,080,656 | ) | 7,866,158 | 194,164,312 | 66,469,205 | 260,633,517 | ||||||||||||||||||||||||||||
Effect of adoption of new accounting standards (Note 2i) | — | — | 19,598,349 | — | — | — | — | 19,598,349 | 518,440 | 20,116,789 | ||||||||||||||||||||||||||||||
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As of January 1 2018 (restated) | 96,338,508 | 358,440 | 190,327,507 | — | (6,047,296 | ) | (75,080,656 | ) | 7,866,158 | 213,762,661 | 66,987,645 | 280,750,306 | ||||||||||||||||||||||||||||
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Net profit for the year | — | — | 52,566,197 | — | — | — | — | 52,566,197 | 1,950,626 | 54,516,823 | ||||||||||||||||||||||||||||||
Unrealized loss on equity investments at fair value, net of deferred taxes | — | — | — | — | (3,765,688 | ) | — | — | (3,765,688 | ) | — | (3,765,688 | ) | |||||||||||||||||||||||||||
Remeasurement of defined benefit plan, net of deferred taxes | — | — | — | — | — | 652,722 | — | 652,722 | 104,556 | 757,278 | ||||||||||||||||||||||||||||||
Effect of translation of foreign entities | — | — | — | — | — | — | (61,223,458 | ) | (61,223,458 | ) | (3,090,574 | ) | (64,314,032 | ) | ||||||||||||||||||||||||||
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Comprehensive income (loss) for the year | — | — | 52,566,197 | (3,765,688 | ) | 652,722 | (61,223,458 | ) | (11,770,227 | ) | (1,035,392 | ) | (12,805,619 | ) | ||||||||||||||||||||||||||
Dividends declared | — | — | (21,134,520 | ) | — | — | — | — | (21,134,520 | ) | (1,850,462 | ) | (22,984,982 | ) | ||||||||||||||||||||||||||
Hyperinflation adjustment (Note 2i) | — | — | 15,826,934 | — | — | — | — | 15,826,934 | — | 15,826,934 | ||||||||||||||||||||||||||||||
Repurchase of shares | (130 | ) | — | (518,633 | ) | — | — | — | — | (518,763 | ) | — | (518,763 | ) | ||||||||||||||||||||||||||
Redemption of hybrid bond (Note 19) | — | — | — | — | — | — | — | — | (13,440,120 | ) | (13,440,120 | ) | ||||||||||||||||||||||||||||
Other acquisitions ofnon-controlling interests | — | — | (170,440 | ) | — | — | — | — | (170,440 | ) | (784,894 | ) | (955,334 | ) | ||||||||||||||||||||||||||
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Balance at December 31, 2018 | Ps. | 96,338,378 | Ps. | 358,440 | Ps. | 236,897,045 | Ps. | — | Ps. | (9,812,984 | ) | Ps. | (74,427,934 | ) | Ps. | (53,357,300 | ) | Ps. | 195,995,645 | Ps. | 49,876,777 | Ps. | 245,872,422 | |||||||||||||||||
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Capital stock | Legal reserve | Retained earnings | Unrealized (loss) gain on equity investment at fair value | Re-measurement of defined benefit plans | Cumulative translation adjustment | Revaluation surplus | Total equity attributable to equity holders of the parent | Non- controlling interests | Total equity | |||||||||||||||||||||||||||||||
As of January 31, 2019 | Ps. | 96,338,378 | Ps. | 358,440 | Ps. | 236,897,045 | Ps. | (9,812,984 | ) | Ps. | (74,427,934 | ) | Ps. | (53,357,300 | ) | Ps. | — | Ps. | 195,995,645 | Ps. | 49,876,777 | Ps. | 245,872,422 | |||||||||||||||||
Net profit for the year | — | — | 67,730,890 | — | — | — | — | 67,730,890 | 2,582,564 | 70,313,454 | ||||||||||||||||||||||||||||||
Unrealized gain on equity investments at fair value, net of deferred taxes | — | — | — | 883,409 | — | — | — | 883,409 | — | 883,409 | ||||||||||||||||||||||||||||||
Remeasurement of defined benefit plan, net of deferred taxes | — | — | — | — | (29,153,554 | ) | — | — | (29,153,554 | ) | (382,118 | ) | (29,535,672 | ) | ||||||||||||||||||||||||||
Effect of translation of foreign entities | — | — | — | — | — | (34,010,066 | ) | — | (34,010,066 | ) | (1,526,186 | ) | (35,536,252 | ) | ||||||||||||||||||||||||||
Comprehensive income (loss) for the year | — | — | 67,730,890 | 883,409 | (29,153,554 | ) | (34,010,066 | ) | — | 5,450,679 | 674,260 | 6,124,939 | ||||||||||||||||||||||||||||
Dividends declared | — | — | (23,106,823 | ) | — | — | — | — | (23,106,823 | ) | (1,473,290 | ) | (24,580,113 | ) | ||||||||||||||||||||||||||
Repurchase of shares | (116 | ) | — | (427,212 | ) | — | — | — | — | (427,328 | ) | — | (427,328 | ) | ||||||||||||||||||||||||||
Other acquisitions of non-controlling interests | — | — | (2,214 | ) | — | — | — | — | (2,214 | ) | (80,841 | ) | (83,055 | ) | ||||||||||||||||||||||||||
Balance at December 31, 2019 | Ps. | 96,338,262 | Ps. | 358,440 | Ps. | 281,091,686 | Ps. | (8,929,575 | ) | Ps. | (103,581,488 | ) | Ps. | (87,367,366 | ) | Ps. | — | Ps. | 177,909,959 | Ps. | 48,996,906 | Ps. | 226,906,865 | |||||||||||||||||
Net profit for the year | — | — | 46,852,605 | — | — | — | — | 46,852,605 | 4,174,352 | 51,026,957 | ||||||||||||||||||||||||||||||
Unrealized loss on equity investments at fair value, net of deferred taxes | — | — | — | (1,952,414 | ) | — | — | (1,952,414 | ) | — | (1,952,414 | ) | ||||||||||||||||||||||||||||
Remeasurement of defined benefit plan, net of deferred taxes | — | — | — | — | (10,026,454 | ) | — | — | (10,026,454 | ) | (273,104 | ) | (10,299,558 | ) | ||||||||||||||||||||||||||
Effect of translation of foreign entities | — | — | — | — | — | (13,558,774 | ) | — | (13,558,774 | ) | 2,043,477 | (11,515,297 | ) | |||||||||||||||||||||||||||
Revaluation surplus, net of deferred taxes | — | — | — | — | — | — | 64,835,155 | 64,835,155 | 12,394,876 | 77,230,031 | ||||||||||||||||||||||||||||||
Comprehensive income (loss) for the year | — | — | 46,852,605 | (1,952,414 | ) | (10,026,454 | ) | (13,558,774 | ) | 64,835,155 | 86,150,118 | 18,339,601 | 104,489,719 | |||||||||||||||||||||||||||
Dividends declared | — | — | (25,161,564 | ) | — | — | — | — | (25,161,564 | ) | (1,860,300 | ) | (27,021,864 | ) | ||||||||||||||||||||||||||
Stock dividend | 4,650 | — | 17,054,007 | — | — | — | — | 17,058,657 | — | 17,058,657 | ||||||||||||||||||||||||||||||
Repurchase of shares | (1,217 | ) | — | (5,209,880 | ) | — | — | — | — | (5,211,097 | ) | — | (5,211,097 | ) | ||||||||||||||||||||||||||
Other acquisitions of non-controlling interests | — | — | (267,270 | ) | — | — | — | — | (267,270 | ) | (837,392 | ) | (1,104,662 | ) | ||||||||||||||||||||||||||
Balance at December 31, 2020 | Ps. | 96,341,695 | Ps. | 358,440 | Ps. | 314,359,584 | Ps. | (10,881,989 | ) | Ps. | (113,607,942 | ) | Ps. | (100,926,140 | ) | Ps. | 64,835,155 | Ps. | 250,478,803 | Ps. | 64,638,815 | Ps. | 315,117,618 | |||||||||||||||||
Net profit for the year | — | — | 192,423,167 | — | — | — | — | 192,423,167 | 3,902,947 | 196,326,114 | ||||||||||||||||||||||||||||||
Unrealized gain on equity and debt investments at fair value, net of deferred taxes | — | — | — | 4,560,869 | — | — | — | 4,560,869 | — | 4,560,869 | ||||||||||||||||||||||||||||||
Remeasurement of defined benefit plan, net of deferred taxes | — | — | — | — | 11,100,835 | — | — | 11,100,835 | 161,061 | 11,261,896 | ||||||||||||||||||||||||||||||
Effect of translation of foreign entities | — | — | — | — | — | (2,514,992 | ) | (2,322,214 | ) | (4,837,206 | ) | (2,296,947 | ) | (7,134,153 | ) | |||||||||||||||||||||||||
Discontinued operations | — | — | — | — | — | (829,163 | ) | — | (829,163 | ) | —�� | (829,163 | ) | |||||||||||||||||||||||||||
Transfer of revaluation surplus | — | — | 3,803,349 | — | — | — | (3,803,349 | ) | — | — | — | |||||||||||||||||||||||||||||
Comprehensive income (loss) for the year | — | — | 196,226,516 | 4,560,869 | 11,100,835 | (3,344,155 | ) | (6,125,563 | ) | 202,418,502 | 1,767,061 | 204,185,563 | ||||||||||||||||||||||||||||
Dividends declared | — | — | (26,640,797 | ) | — | — | — | — | (26,640,797 | ) | (1,919,674 | ) | (28,560,471 | ) | ||||||||||||||||||||||||||
Repurchase of shares | (8,263 | ) | — | (36,752,766 | ) | — | — | — | — | (36,761,029 | ) | — | (36,761,029 | ) | ||||||||||||||||||||||||||
Other acquisitions of non-controlling interests | — | — | 139,448 | — | — | — | — | 139,448 | (79,403 | ) | 60,045 | |||||||||||||||||||||||||||||
Balance at December 31, 2021 | Ps. | 96,333,432 | Ps. | 358,440 | Ps. | 447,331,985 | Ps. | (6,321,120 | ) | Ps. | (102,507,107 | ) | Ps. | (104,270,295 | ) | Ps. | 58,709,592 | Ps. | 389,634,927 | Ps. | 64,406,799 | Ps. | 454,041,726 | |||||||||||||||||
For the year ended December 31 | ||||||||||||||||||||
Note | 2016 | 2017 | 2018 | 2018 Millions of U.S. dollars | ||||||||||||||||
Operating activities | ||||||||||||||||||||
Profit before income tax | Ps. | 23,477,595 | Ps. | 57,096,844 | Ps. | 100,993,902 | US$ | 5,131 | ||||||||||||
Items not requiring the use of cash: | ||||||||||||||||||||
Depreciation | 10 | 127,662,344 | 135,206,080 | 129,115,727 | 6,560 | |||||||||||||||
Amortization of intangible and other assets | 9 and 11 | 20,863,577 | 24,968,862 | 26,596,853 | 1,351 | |||||||||||||||
Equity interest in net income of associated companies | (189,950 | ) | (91,385 | ) | (267 | ) | — | |||||||||||||
Loss on sale of property, plant and equipment | 8,059 | 145,225 | 664,777 | 34 | ||||||||||||||||
Net period cost of labor obligations | 17 | 14,240,271 | 13,636,182 | 13,989,100 | 711 | |||||||||||||||
Foreign currency exchange loss, net | 34,049,726 | 11,699,985 | 6,148,612 | 312 | ||||||||||||||||
Interest income | (4,192,595 | ) | (2,925,648 | ) | (10,646,169 | ) | (541 | ) | ||||||||||||
Interest expense | 33,862,012 | 30,300,781 | 31,771,433 | 1,614 | ||||||||||||||||
Employee profit sharing | 2,235,267 | 1,751,312 | 1,500,342 | 76 | ||||||||||||||||
Loss (gain) in valuation of derivative financial instruments, capitalized interest expense and other, net | 85,216 | (19,010,851 | ) | (7,518,445 | ) | (382 | ) | |||||||||||||
Gain on net monetary positions | 21 | — | — | (4,429,145 | ) | (225 | ) | |||||||||||||
Working capital changes: | ||||||||||||||||||||
Subscribers, distributors, recoverable taxes, contract assets and other, net | (14,192,651 | ) | 1,799,095 | (15,420,291 | ) | (783 | ) | |||||||||||||
Prepaid expenses | 792,979 | 4,588,584 | 3,264,685 | 166 | ||||||||||||||||
Related parties | 829,632 | (558,651 | ) | 38,426 | 2 | |||||||||||||||
Inventories | 3,076,159 | (2,991,009 | ) | (3,232,136 | ) | (164 | ) | |||||||||||||
Other assets | (2,944,581 | ) | (4,763,394 | ) | (6,081,740 | ) | (309 | ) | ||||||||||||
Employee benefits | (5,384,944 | ) | (14,692,218 | ) | (14,235,549 | ) | (723 | ) | ||||||||||||
Accounts payable and accrued liabilities | 18,196,349 | 5,190,137 | 23,997,632 | 1,219 | ||||||||||||||||
Employee profit sharing paid | (3,297,439 | ) | (1,471,946 | ) | (1,013,799 | ) | (52 | ) | ||||||||||||
Financial instruments and other | 28,878,632 | 1,515,668 | 5,286,290 | 269 | ||||||||||||||||
Deferred revenues | (972,376 | ) | (452,913 | ) | 38,243 | 2 | ||||||||||||||
Interest received | 3,239,845 | 819,940 | 1,215,800 | 62 | ||||||||||||||||
Income taxes paid | (44,525,073 | ) | (23,988,305 | ) | (33,713,753 | ) | (1,713 | ) | ||||||||||||
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Net cash flows provided by operating activities | Ps. | 235,798,054 | Ps. | 217,772,375 | Ps. | 248,330,528 | US$ | 12,617 | ||||||||||||
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Investing activities | ||||||||||||||||||||
Purchase of property, plant and equipment | (138,707,157 | ) | (119,185,137 | ) | (143,888,033 | ) | (7,310 | ) | ||||||||||||
Acquisition of intangibles | (16,316,738 | ) | (17,538,541 | ) | (7,933,647 | ) | (403 | ) | ||||||||||||
Dividends received | 21 | 5,740,092 | 2,385,559 | 2,622,237 | 133 | |||||||||||||||
Proceeds from sale of plant, property and equipment | 115,600 | 133,349 | 178,532 | 9 | ||||||||||||||||
Acquisition of businesses, net of cash acquired | (1,823,813 | ) | (6,878,793 | ) | (310,604 | ) | (16 | ) | ||||||||||||
Partial sale of shares of associated company | — | 340,040 | 548,484 | 28 | ||||||||||||||||
Investments in associate companies | (3,487 | ) | — | — | — | |||||||||||||||
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Net cash flows used in investing activities | Ps. | (150,995,503 | ) | Ps. | (140,743,523 | ) | Ps. | (148,783,031 | ) | US$ | (7,559 | ) | ||||||||
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Financing activities | ||||||||||||||||||||
Loans obtained | 64,281,631 | 143,607,726 | 155,263,221 | 7,888 | ||||||||||||||||
Repayment of loans | (125,672,444 | ) | (171,041,215 | ) | (189,314,144 | ) | (9,618 | ) | ||||||||||||
Interest paid | (32,125,872 | ) | (31,196,441 | ) | (30,869,017 | ) | (1,568 | ) | ||||||||||||
Repurchase of shares | (7,021,247 | ) | (1,233,371 | ) | (511,421 | ) | (26 | ) | ||||||||||||
Dividends paid | (13,809,957 | ) | (16,091,390 | ) | (22,369,793 | ) | (1,137 | ) | ||||||||||||
Derivative financial instruments | (351,213 | ) | (71,474 | ) | — | — | ||||||||||||||
Partial sale of shares in subsidiary | 6,323,336 | — | — | — | ||||||||||||||||
Redemption of hybrid bond | — | — | (13,440,120 | ) | (683 | ) | ||||||||||||||
Acquisition ofnon-controlling interests | (2,280,278 | ) | (11,930 | ) | (115,821 | ) | (6 | ) | ||||||||||||
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Net cash flows used in financing activities | Ps. | (110,656,044 | ) | Ps. | (76,038,095 | ) | Ps. | (101,357,095 | ) | US$ | (5,150 | ) | ||||||||
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Net (decrease) increase in cash and cash equivalents | Ps. | (25,853,493 | ) | Ps. | 990,757 | Ps. | (1,809,598 | ) | US $ | (92 | ) | |||||||||
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Adjustment to cash flows due to exchange rate fluctuations, net | 3,911,844 | 61,333 | (800,913 | ) | (41 | ) | ||||||||||||||
Cash and cash equivalents at beginning of the year | 45,160,032 | 23,218,383 | 24,270,473 | 1,233 | ||||||||||||||||
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Cash and cash equivalents at end of the year | Ps. | 23,218,383 | Ps. | 24,270,473 | Ps. | 21,659,962 | US$ | 1,100 | ||||||||||||
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Non-cash transactions related to: | ||||||||||||||||||||
Acquisitions of property, plant and equipment in accounts payable at end year | Ps. | 13,497,804 | Ps. | 18,869,210 | Ps. | 19,099,066 | US$ | 970 | ||||||||||||
Redemption of exchangeable bond | — | — | 16,446,262 | 836 | ||||||||||||||||
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Non-cash transactions | Ps. | 13,497,804 | Ps. | 18,869,210 | Ps. | 35,545,328 | US$ | 1,806 | ||||||||||||
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For the years ended December 31 | ||||||||||||||||||
Note | 2019 (1) | 2020 (1) | 2021 | 2021 Millions of U.S. dollars | ||||||||||||||
Operating activities | ||||||||||||||||||
Profit before income tax from continuing operations | Ps. | 110,382,620 | Ps. | 47,543,602 | Ps. | 102,760,165 | US$ | 4,992 | ||||||||||
Profit before income tax from discontinued operations | 2, Ac | 10,964,368 | 19,849,507 | 150,576,681 | 7,316 | |||||||||||||
Profit before income tax | 121,346,988 | 67,393,109 | 253,336,846 | 12,308 | ||||||||||||||
Items not requiring the use of cash: | ||||||||||||||||||
Depreciation property, plant and equipment and right-of-use assets | 10 and 15 | 137,867,698 | 143,108,182 | 139,211,403 | 6,763 | |||||||||||||
Amortization of intangible and other assets | 9 and 11 | 19,651,089 | 19,574,216 | 23,415,463 | 1,138 | |||||||||||||
Equity interest in net (loss) income of associated companies | 17,609 | 287,006 | (113,918 | ) | (6 | ) | ||||||||||||
(Gain) Loss on sale of property, plant and equipment | 119,272 | 257,330 | (6,849,699 | ) | (333 | ) | ||||||||||||
Net period cost of labor obligations | 18 | 16,609,565 | 18,085,954 | 18,688,374 | 908 | |||||||||||||
Foreign currency exchange loss (income), net | (7,250,635 | ) | 59,923,928 | 14,523,412 | 706 | |||||||||||||
Interest income | (6,284,672 | ) | (5,062,036 | ) | (3,834,827 | ) | (186 | ) | ||||||||||
Interest expense | 37,910,954 | 38,661,485 | 36,025,312 | 1,750 | ||||||||||||||
Employee profit sharing | 1,618,695 | 2,066,066 | 3,130,722 | 152 | ||||||||||||||
Gain expense and other, net | (9,202,167 | ) | (13,678,083 | ) | 5,246,476 | 255 | ||||||||||||
Gain on net monetary positions | 22 | (4,267,194 | ) | (3,262,512 | ) | (4,876,842 | ) | (237 | ) | |||||||||
Gain on sale of subsidiary | 2, Ac | — | — | (132,821,709 | ) | (6,453 | ) | |||||||||||
Working capital changes: | ||||||||||||||||||
Subscribers, distributors, recoverable taxes, contract assets and other, net | 7,422,351 | 3,189,136 | 6,883,270 | 334 | ||||||||||||||
Prepaid expenses | 8,860,172 | (160,082 | ) | (890,729 | ) | (43 | ) | |||||||||||
Related parties | 476,671 | 421,337 | 449,655 | 22 | ||||||||||||||
Inventories | (463,461 | ) | 10,402,117 | 5,756,325 | 280 | |||||||||||||
Other assets | (6,560,640 | ) | (2,650,867 | ) | (9,802,727 | ) | (476 | ) | ||||||||||
Employee benefits | (20,224,276 | ) | (18,795,532 | ) | (27,223,091 | ) | (1,323 | ) | ||||||||||
Accounts payable and accrued liabilities | (15,730,804 | ) | 11,247,681 | 9,946,257 | 483 | |||||||||||||
Employee profit sharing paid | (2,187,316 | ) | (2,436,223 | ) | (1,922,029 | ) | (93 | ) | ||||||||||
Financial instruments and other | (1,774,932 | ) | 2,606,938 | (1,664,465 | ) | (81 | ) | |||||||||||
Deferred revenues | 1,237,894 | 1,958,553 | (9,257,456 | ) | (450 | ) | ||||||||||||
Interest received | 1,008,076 | 3,946,110 | 2,665,854 | 130 | ||||||||||||||
In come taxes paid | (41,418,114 | ) | (61,366,231 | ) | (60,535,903 | ) | (2,942 | ) | ||||||||||
Cash flows from discontinued operating | (4,504,355 | ) | 5,109,961 | (1,304,336 | ) | (63 | ) | |||||||||||
Net cash flows provided by continuing operating activities | Ps. | 234,278,468 | Ps. | 280,827,543 | Ps. | 258,181,638 | US$ | 12,543 | ||||||||||
Investing activities | ||||||||||||||||||
Purchase of property, plant and equipment | (132,834,246 | ) | (108,866,816 | ) | (145,279,359 | ) | (7,058 | ) | ||||||||||
Acquisition of intangibles | (18,962,856 | ) | (20,647,571 | ) | (12,791,580 | ) | (621 | ) | ||||||||||
Dividends received | 22 | 1,773,336 | 2,122,826 | 2,628,600 | 128 | |||||||||||||
Proceeds from sale of plant, property and equipment | 344,924 | 162,060 | 7,215,177 | 351 | ||||||||||||||
Acquisition of businesses, net of cash acquired | 12 | (13,330,651 | ) | (152,896 | ) | 0 | 0 | |||||||||||
Partial sale of shares of associated company | 36,478 | 601,509 | 199,158 | 10 | ||||||||||||||
Investments in associate companies | (56,985 | ) | (64,341 | ) | — | — | ||||||||||||
Sale of shares | — | — | 75,518,886 | 3,669 | ||||||||||||||
Short-term investments | — | (8,671,662 | ) | (3,361,507 | ) | (163 | ) | |||||||||||
Cash flows from discontinued investing | 2, Ac | (50,089 | ) | (40,602 | ) | (650,319 | ) | (32 | ) | |||||||||
Net cash flows used in investing continuing activities | Ps. | (163,080,089 | ) | Ps. | (135,557,493 | ) | Ps. | (76,520,944 | ) | US$ | (3,716 | ) | ||||||
Financing activities | ||||||||||||||||||
Loans obtained | 118,082,256 | 277,515,598 | 93,675,127 | 4,551 | ||||||||||||||
Repayment of loans | (109,808,816 | ) | (330,607,399 | ) | (152,029,408 | ) | (7,388 | ) | ||||||||||
Payment of liability related to right-of-use of assets | 15 | (26,765,075 | ) | (29,623,565 | ) | (30,544,750 | ) | (1,484 | ) | |||||||||
Interest paid | (28,046,695 | ) | (28,421,734 | ) | (23,884,410 | ) | (1,160 | ) | ||||||||||
Repurchase of shares | (435,713 | ) | (5,076,119 | ) | (36,745,743 | ) | (1,785 | ) | ||||||||||
Dividends paid | (24,248,145 | ) | (9,592,253 | ) | (27,829,345 | ) | (1,352 | ) | ||||||||||
Acquisition of non-controlling interests | 12 | (83,055 | ) | (1,104,662 | ) | (7,720 | ) | — | ||||||||||
Net cash flows used in financing activities | Ps. | (71,305,243 | ) | Ps. | (126,910,134 | ) | Ps. | (177,366,249 | ) | US$ | (8,618 | ) | ||||||
Net (decrease) gain in cash and cash equivalents | Ps. | (106,864 | ) | Ps. | 18,359,916 | Ps. | 4,294,445 | US$ | 209 | |||||||||
Adjustment to cash flows due to exchange rate fluctuations, net | (1,807,442 | ) | (2,187,665 | ) | (1,532,461 | ) | (74 | ) | ||||||||||
Cash and cash equivalents at beginning of the year | 21,659,962 | 19,745,656 | 35,917,907 | 1,744 | ||||||||||||||
Cash and cash equivalents at end of the year | Ps. | 19,745,656 | Ps. | 35,917,907 | Ps. | 38,679,891 | US$ | 1,879 | ||||||||||
Non-cash transactions related to: | ||||||||||||||||||
Acquisitions of property, plant and equipment in accounts payable at end year | Ps. | 19,673,706 | Ps. | 3,063,081 | Ps. | 18,385,498 | US$ | 893 | ||||||||||
Revaluation surplus | — | 107,152,628 | — | — | ||||||||||||||
Non-cash transactions | Ps. | 19,673,706 | Ps. | 110,215,709 | Ps. | 18,385,498 | US$ | 893 | ||||||||||
(1) | Restated for discontinued operations. |
2021
Effectively
The Company applied IFRS 15“Revenue from Contracts with Customers”(IFRS 15) and IFRS 9 “Financial Instruments” (IFRS 9) for
The accounting policies applied inits subsidiaries. With the preparation of the consolidated financial statements for the year ended December 31, 2018 are consistent with those used in the preparation of the Company´s consolidated annual financial statements for the years ended December 31, 2017 and 2016, with the exception of the following new standards and amendments to existing standards issued by the IASB, which were mandatory for annual periods beginning on or after January 1, 2018:
a) IFRS 15 Revenue from contract with customer
In May 2014, theIASB issued the new standard IFRS 15. The new standard for revenue recognition aimschange, this passive infrastructure was no longer recognized at standardizing the multitude of regulations previously included in various standards, and may require more judgment and estimates than with the revenue recognition processes that were required under the previously existing revenue recognition standards
IFRS 15 supersedes IAS 11Construction Contracts, IAS 18Revenueand related Interpretationshistorical cost and it applies, with limited exceptions,began to all revenue arising from contracts with customers. IFRS 15 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.
IFRS 15 requires entities to exercise judgment, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires relevant disclosures.
The Company adopted IFRS 15 using the modified retrospective method of adoption with the date of initial application on January 1, 2018. Under this method, the standard can be applied either to all contracts at the date of initial application or only to contracts that are not completed at this date. The Company elected to apply the standard to all contracts as of January 1, 2018.
The cumulative effect of initially applying IFRS 15 was recognized at the date of initial application as an adjustment to the opening balance of retained earnings. Therefore, the comparative information was not restated and continues to be reported under IAS 11, IAS 18 and related Interpretations. The most significant changes in the implementation of IFRS 15 are the earlier recognition of revenue from the sale of goods, and the capitalization and deferral of the incremental contracts acquisition costs over the expected period of benefit.
The effect of adopting IFRS 15 as of January 1, 2018 was, as follows:
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Set out below are, the impacts of adopting IFRS 15 on the Company´s consolidated financial statements for the year ended December 31, 2018:
Reference | As reported | Figures without adoption of IFRS 15 | Adjustments | |||||||||||||
Operating revenues: | ||||||||||||||||
Revenues services | (a), (b) | Ps. | 863,647,642 | Ps. | 881,530,167 | Ps. | (17,882,525 | ) | ||||||||
Sales of equipment | (a), (b) | 174,560,039 | 158,721,765 | 15,838,274 | ||||||||||||
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1,038,207,681 | 1,040,251,932 | (2,044,251 | ) | |||||||||||||
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Operating costs and expenses: | ||||||||||||||||
Cost of sales and services | Ps. | 508,822,430 | Ps. | 509,100,174 | Ps. | (277,744 | ) | |||||||||
Commercial, administrative and general and other expenses | (c) | 234,115,500 | 240,010,631 | (5,895,131 | ) | |||||||||||
Depreciation and amortization | 155,712,580 | 155,712,580 | — | |||||||||||||
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898,650,510 | 904,823,385 | (6,172,875 | ) | |||||||||||||
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139,557,171 | 135,428,547 | 4,128,624 | ||||||||||||||
Financial items, net | 38,563,536 | 38,356,359 | 207,177 | |||||||||||||
Equity interest in net result of associated companies | 267 | 267 | �� | — | ||||||||||||
Income tax | (d) | 46,477,079 | 45,496,698 | 980,381 | ||||||||||||
Non-controlling interests | (1,950,626 | ) | (1,950,626 | ) | — | |||||||||||
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Net profit for the year | Ps. | 52,566,197 | Ps. | 49,625,131 | Ps. | 2,941,066 | ||||||||||
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Reference | As reported | Balances without adoption of IFRS 15 | Adjustments | |||||||||||||
Assets: | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents and equity investments at fair value | Ps. | 70,675,896 | Ps. | 70,675,896 | Ps. | — | ||||||||||
Subscribers, distributors, recoverable taxes, contract assets and other, net | (a), (b), (c) | 216,226,920 | 185,303,634 | 30,923,286 | ||||||||||||
Other current assets, net | 62,152,708 | 62,152,708 | — | |||||||||||||
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Total current assets | 349,055,524 | 318,132,238 | 30,923,286 | |||||||||||||
Non-current assets: | ||||||||||||||||
Property, plant and equipment, net | 640,000,720 | 640,000,720 | — | |||||||||||||
Intangibles and other assets, net | 424,485,276 | 424,485,276 | — | |||||||||||||
Subscribers, distributors, recoverable taxes, contract assets and other, net | (a), (b), (c) | 15,681,872 | 10,244,609 | 5,437,263 | ||||||||||||
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Total assets | Ps. | 1,429,223,392 | Ps. | 1,392,862,843 | Ps. | 36,360,549 | ||||||||||
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Liabilities and equity: | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Short-term debt and current portion of long-term debt | Ps. | 96,230,634 | Ps. | 96,230,634 | Ps. | — | ||||||||||
Accounts payable and other liabilities | 338,116,412 | 337,448,940 | 667,472 | |||||||||||||
Deferred revenues | 32,743,843 | 32,315,690 | 428,153 | |||||||||||||
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Total current liabilities | 467,090,889 | 465,995,264 | 1,095,625 | |||||||||||||
Non-current-liabilities: | ||||||||||||||||
Long-term debt | 542,691,819 | 542,691,819 | — | |||||||||||||
Deferred income taxes | (d) | 24,573,441 | 15,382,500 | 9,190,941 | ||||||||||||
Other liabilities | 148,994,821 | 148,994,821 | — | |||||||||||||
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Total liabilities | 1,183,350,970 | 1,173,064,404 | 10,286,566 | |||||||||||||
Total equity | (d) | 245,872,422 | 219,798,439 | 26,073,983 | ||||||||||||
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Total liabilities and equity | Ps. | 1,429,223,392 | Ps. | 1,392,862,843 | Ps. | 36,360,549 | ||||||||||
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IFRS 15 Revenues from contracts with customers
IFRS 15 establishes a comprehensive framework for determining when to recognize revenue and how much revenue to recognize. The principle core is that an entity should recognize revenue to depict the transfer of promised goods or services to the customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The most significant changes in the implementation of IFRS 15 are as follows:
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The Company concluded that regarding the provided services, it has market observable information, to determine the standalone selling price of the services. On the other hand, in the case of the sale of bundled mobile phones sold (including service and handset) by the Company, the allocation of the sales is done
based on their relative standalone selling price of each individual component related to the total bundled price. The result is that more equipment revenue is recognized at the moment of a sale and, therefore, less service revenue from the monthly fee are being recognized under the new standard.
revaluation model (market value). The Company concluded as wellcompany considers that the provided services are satisfied overrevaluation model represents the timeactual conditions of the contract period, given that the customer simultaneously receives and consumes the benefits provided by the Company.
Such service bundles, voice and data, accomplish the criteria mentioned in IFRS 15industry of being substantially similar andthis class of having the same transfer pattern which is why the Company concluded that the revenue from these different services offered to its customers are considered as a single performance obligation with revenue being recognized over time, except for sales of equipment.
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b) IFRS 9, Financial Instruments
IFRS 9 was issued in July 2014 and replaced IAS 39Financial Instruments and relates to the classification and measurement of financial instruments, impairment; and hedge accounting.
The Company applied IFRS 9 prospectively, with an initial application date of January 1, 2018. The Company has not restated the comparative information, which continues to be reported under IAS 39.
The effect of adopting IFRS 9 as of January 1, 2018 was, as follows:
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IFRS 9 sets out the requirements for recognizing and measuring financial assets and financial liabilities. This new standard includes:
a) Impairment
The adoption of IFRS 9 has fundamentally changed the Company´s accounting for impairment losses for financial assets by replacing IAS 39’s incurred loss approach with a forward-looking expected credit loss approach. IFRS 9 requires the Company to recognize an allowance for expected credit loss for all debt instruments not held at fair value through profit or loss and contract assets.
Upon adoption of IFRS 9 the Company recognized an impairment on the Company´s trade receivables at fair value Ps 2,400,783 as of January 1, 2018, which resulted in a decrease in Retained earnings. There were no impairment losses that impacted the carrying amount of debt instruments at fair value through OCI in the statements ofimproves its financial position, which remains at fair value.
b) Other adjustments
In additionthis allows its shareholders and stakeholders to have the adjustments described above, other items such as deferred taxes andnon-controlling interests were adjusted to retained earnings as necessary upon adoption of IFRS 9 as of January 1, 2018.
The new requirements of IFRS 9 regarding hedge accounting do not have an effect on the consolidated financial statements as hedge accounting is not applied. The Company continues to consider the hedges to be under IAS 39 as allowed by IFRS 9.
Compared to IAS 39, the application of IFRS 9 had an immaterial effect on the consolidated financial statements in 2018, including classification of financial assets and liabilities.
c) Impact of the application for hyperinflation in Argentina
In the recent years, the Argentina economy has shown high rates of inflation. Although inflation data has not been consistent in recent years and several indexes have coexisted, inflation in Argentina indicates that thethree-year cumulative inflation rate recently exceeded 100%, which is the quantitative reference established by IAS 29. As a result, Argentina is considered a hyperinflationary economy in 2018 and the Company applies hyper-inflation accounting to its subsidiary whose functional currency is the Argentine peso for financial information for periods ending on or after July 1, 2018, however the calculationassociated with market expectations about this class of the accumulative impact was measured as of January 1, 2019.
In order to restate for hyperinflation its financial statements, the subsidiary used the series of indices defined by resolution JG No. 539/18 issued by the “Federación Argentina de Consejos Profesionales de Ciencias Económicas” (FACPCE), based on the National Consumer Price Index (IPC) published by the Instituto Nacional de Estadística y Censos (INDEC) of the Argentine Republic and the Wholesale Internal Price Index (IPIM) published by FACPCE. The cumulative index December 31, 2018 is 184.255, while on an annual inflation for 2018 is 48%.
The main implications are as follows:
Adjustment of the historical cost ofnon-monetary assets and liabilities and equity items from their date of acquisition, or the date of inclusion in the consolidated statements of financial position, to the end of the year, in order to reflect changes in the currency’s purchasing power caused by inflation.
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All items in the financial statements of the Argentine company are translated at the closing exchange rate, which at December 31, 2018 was 0.5221 argentine pesos per mexican peso.
Financial information for financial years prior to 2018 are not restated.
The main impact in the consolidated financial statements of the Company in 2018 of applying hyperinflationary accounting under IAS 29 are shown below:
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Company name | Country | Equity interest at December 31 | ||||||||||
2017 | 2018 | |||||||||||
Subsidiaries: | ||||||||||||
América Móvil B.V.a) | Netherlands | 100.0 | % | 100.0 | % | |||||||
Compañía Dominicana de Teléfonos, S.A. (“Codetel”)b) | Dominican Republic | 100.0 | % | 100.0 | % | |||||||
Sercotel, S.A. de C.V.a) | Mexico | 100.0 | % | 100.0 | % | |||||||
Radiomóvil Dipsa, S.A. de C.V. and subsidiaries (“Telcel”)b) | Mexico | 100.0 | % | 100.0 | % | |||||||
Puerto Rico Telephone Company, Inc.b) | Puerto Rico | 100.0 | % | 100.0 | % | |||||||
Servicios de Comunicaciones de Honduras, S.A. de C.V. (“Sercom Honduras”)b) | Honduras | 100.0 | % | 100.0 | % | |||||||
TracFone Wireless, Inc. (“TracFone”)b) | USA | 100.0 | % | 100.0 | % | |||||||
Claro S.A. (Claro Brasil)b) | Brazil | 97.7 | % | 98.2 | % | |||||||
Telecomunicaciones de Guatemala, S.A. (“Telgua”)b) | Guatemala | 99.3 | % | 99.3 | % | |||||||
Empresa Nicaragüense de Telecomunicaciones, S.A. (“Enitel”) b) | Nicaragua | 99.6 | % | 99.6 | % | |||||||
Compañía de Telecomunicaciones de El Salvador, S.A. de C.V. (“CTE”)b) | El Salvador | 95.8 | % | 95.8 | % | |||||||
Comunicación Celular, S.A. (“Comcel”)b) | Colombia | 99.4 | % | 99.4 | % | |||||||
Telmex Colombia, S.A.b) | Colombia | 99.3 | % | 99.3 | % | |||||||
Consorcio Ecuatoriano de Telecomunicaciones, S.A. (“Conecel”) b) | Ecuador | 100.0 | % | 100.0 | % | |||||||
AMX Argentina, S.A.b) | Argentina | 100.0 | % | 100.0 | % | |||||||
AMX Paraguay, S.A.b) | Paraguay | 100.0 | % | 100.0 | % | |||||||
AM Wireless Uruguay, S.A.b) | Uruguay | 100.0 | % | 100.0 | % | |||||||
Claro Chile, S.A.b) | Chile | 100.0 | % | 100.0 | % | |||||||
América Móvil Perú, S.A.Cb) | Peru | 100.0 | % | 100.0 | % | |||||||
Claro Panamá, S.A.b) | Panamá | 100.0 | % | 100.0 | % | |||||||
Teléfonos de México, S.A.B. de C.V.b) | Mexico | 98.8 | % | 98.8 | % | |||||||
Telekom Austria AGb) | Austria | 51.0 | % | 51.0 | % |
Company name | Country | Equity interest at December 31 | ||||||||||
2020 | 2021 | |||||||||||
Subsidiaries: | ||||||||||||
América Móvil B.V. a) | Netherlands | 100.0 | % | 100.0 | % | |||||||
Compañía Dominicana de Teléfonos, S.A. (“Codetel”) b) | Dominican Republic | 100.0 | % | 100.0 | % | |||||||
Sercotel, S.A. de C.V. a) | Mexico | 100.0 | % | 100.0 | % | |||||||
Radiomóvil Dipsa, S.A. de C.V. and subsidiaries (“Telcel”) b) | Mexico | 100.0 | % | 100.0 | % | |||||||
Puerto Rico Telephone Company, Inc. b) | Puerto Rico | 100.0 | % | 100.0 | % | |||||||
Servicios de Comunicaciones de Honduras, S.A. de C.V. (“Sercom Honduras”) b) | Honduras | 100.0 | % | 100.0 | % | |||||||
TracFone Wireless, Inc. (“TracFone”) b) c) | USA | 100.0 | % | 0 | ||||||||
Claro S.A. (Claro Brasil) b) | Brazil | 98.2 | % | 98.2 | % | |||||||
NII Brazil Holding S.A.R.L a) | Luxembourg | 100.0 | % | 100.0 | % | |||||||
Nextel Telecomunicações Ltda b) | Brazil | 100.0 | % | 100.0 | % | |||||||
Telecomunicaciones de Guatemala, S.A. (“Telgua”) b) | Guatemala | 99.3 | % | 99.3 | % | |||||||
Claro Guatemala, S.A. b) | Guatemala | 100.0 | % | 100.0 | % | |||||||
Empresa Nicaragüense de Telecomunicaciones, S.A. (“Enitel”) b) | Nicaragua | 99.6 | % | 99.6 | % | |||||||
Compañía de Telecomunicaciones de El Salvador, S.A. de C.V. (“CTE”) b) | El Salvador | 95.8 | % | 95.8 | % | |||||||
Comunicación Celular, S.A. (“Comcel”) b) | Colombia | 99.4 | % | 99.4 | % | |||||||
Consorcio Ecuatoriano de Telecomunicaciones, S.A. (“Conecel”) b) | Ecuador | 100.0 | % | 100.0 | % | |||||||
AMX Argentina, S.A. b) | Argentina | 100.0 | % | 100.0 | % | |||||||
AMX Paraguay, S.A. b) | Paraguay | 100.0 | % | 100.0 | % | |||||||
AM Wireless Uruguay, S.A. b) | Uruguay | 100.0 | % | 100.0 | % | |||||||
Claro Chile, S.A. b) | Chile | 100.0 | % | 100.0 | % | |||||||
América Móvil Perú, S.A.C b) | Peru | 100.0 | % | 100.0 | % | |||||||
Claro Panamá, S.A. b) | Panamá | 100.0 | % | 100.0 | % | |||||||
Teléfonos de México, S.A.B. de C.V. b) | Mexico | 98.8 | % | 98.8 | % | |||||||
Telekom Austria AG b) | Austria | 51.0 | % | 51.0 | % |
a) | Holding companies |
b) | Operating companies of mobile and fixed services |
c) | On November 23, 2021, this entity was discontinued operations. See Note 2Ac. |
the resulting difference from the translation process is recognized in equity in the caption Cumulative translation adjustment;
recent years and several indexes have coexisted, inflation in Argentina indicates that the three-year cumulative inflation rate exceeded 100% in 2018, which is one of the quantitative references established by IAS 29. As a result, Argentina was considered a hyperinflationary economy in 2018 and the Company applies hyperinflation accounting to its subsidiary whose functional currency is the Argentine peso for financial information for periods ending on or after July 1, 2018, however the calculation of the cumulative impact was measured as of January 1, 2018.
The wireless voices services are offered under a variety
The fixed voices services include local, domestic and international long-distance and public telephone services, under a variety of plans, specifically tailored to our residential and corporate clients. Revenue from the local services are derived from the monthly rent for services and the long-distances revenues are recognized at the time the service is provided.
The residential broadband access are typically bundled with voice services and are competitively priced as a function of the desired or available speed. As a complement to these services, the Company offer a number of products such as home networking and smart homemobile services. In addition, The Company provide different IT solutions for small business and large corporations.
The Company offer Pay TV through cable and satellite TV subscriptions to both retail and corporate customers under a variety of plans. These services are offered through individual subscription plans as well asindependently in contracts with customers or together with the sale of handsets (mobile) under the postpaid model. In accordance with IFRS 15
Thewhy the Company sellsconcluded that the revenue from these different services offered to its customers bundlesare considered as a single performance obligation with revenue being recognized over time, except for sales of different services (fixed line, mobile, broadband internet, streamingequipment.
Total package revenue is allocated among the identified elements based on their respective standalone selling prices.
Determining standalone selling prices for each identified element requires estimatesdelivered.
Transaction prices are allocated to the performance obligations by reference to the relative stand-alone selling prices of the products and services. The stand-alone selling prices of products are based on the market prices whereas the standalone selling prices of services are available separately, as services are also offered on a stand-alone basis, i.e. without hardware.
customer contracts.
9.
investment.
(i) | Identify the acquirer |
(ii) | Determine the acquisition date |
(iii) | Value the acquired identifiable assets and assumed liabilities |
(iv) | Recognize the goodwill or a bargain purchase gain |
goodwill.
16c.
Network infrastructure | 5 | %-33% | ||
Buildings and leasehold improvement | 2 | %-33% | ||
Other assets | 10 | %-50% |
Network infrastructure | 5%-33% | |||
Buildings and leasehold improvement | 2%-33% | |||
Other assets | 10%-50% |
are recognized at cost.
consider
Average margin on EBITDA | Average margin on CAPEX | Averagepre-tax discount rate (WACC) | ||||
2017: | ||||||
Europe (7 countries) | 25.59% - 52.46% | 7.34% - 14.97% | 9.06% - 19.04% | |||
Brazil (fixed line, wireless and TV) | 35.28% | 22.13% | 11.71% | |||
Puerto Rico | 23.31% | 8.31% | 4.42% | |||
Dominican Republic | 45.79% | 15.55% | 19.23% | |||
Mexico (fixed line and wireless) | 35.48% | 8.72% | 16.13% | |||
Ecuador | 37.83% | 10.07% | 23.57% | |||
Peru | 29.64% | 16.75% | 13.61% | |||
El Salvador | 40.36% | 17.99% | 25.14% | |||
Chile | 22.04% | 12.45% | 6.15% | |||
Colombia | 41.93% | 19.88% | 19.06% | |||
Other countries | 9.16% - 48.18% | 0.43% - 23.43% | 7.89% - 24.28% |
Average margin on EBIDTA | Average margin on CAPEX | Average pre-tax discount rate (WACC)las | ||||||||||
2018: | ||||||||||||
Europe (7 countries) | 22.13% - 41.51% | 8.13% - 19.40% | 8.36% - 22.08% | |||||||||
Brazil (fixed line, wireless and TV) | 36.43% | 21.88% | 10.38% | |||||||||
Puerto Rico | 23.86% | 9.89% | 4.81% | |||||||||
Dominican Republic | 48.64% | 18.43% | 17.66% | |||||||||
Mexico (fixed line and wireless) | 36.33% | 7.93% | 16.30% | |||||||||
Ecuador | 39.83% | 11.26% | 24.45% | |||||||||
Peru | 30.29% | 19.95% | 11.52% | |||||||||
El Salvador | 45.36% | 22.61% | 18.01% | |||||||||
Chile | 25.91% | 14.99% | 6.62% | |||||||||
Colombia | 45.01% | 17.14% | 20.29% | |||||||||
Other countries | 7.90% - 45.91% | 0.61% - 23.96% | 9.97% - 31.63% |
Average margin on EBIDTA | Average margin on CAPEX | Average pre-tax discount rate (WACC) | ||||||||||
2020: | ||||||||||||
Europe (7 countries) | 32.20% - 40.76% | 7.04% - 19.39% | 3.88% - 12.02% | |||||||||
Brazil (fixed line, wireless and TV) | 40.67% | 25.36% | 9.50% | |||||||||
Puerto Rico | 23.06% | 14.57% | 3.53% | |||||||||
Dominican Republic | 47.57% | 13.71% | 8.27% | |||||||||
Mexico (fixed line and wireless) | 32.69% | 11.01% | 6.03% | |||||||||
Ecuador | 49.23% | 11.14% | 17.50% | |||||||||
Peru | 38.72% | 15.43% | 4.76% | |||||||||
El Salvador | 45.92% | 21.19% | 14.63% | |||||||||
Chile | 26.34% | 13.18% | 3.37% | |||||||||
Colombia | 43.45% | 18.19% | 6.44% | |||||||||
Other countries | 10.07% - 47.23% | 0.48% - 31.67% | 3.42% - 21.85% | |||||||||
2021: | ||||||||||||
Europe (7 countries) | 31.60% - 45.32% | 7.48% - 24.37% | 2.91% - 9.83% | |||||||||
Brazil (fixed line, wireless and TV) | 41.37% | 22.98% | 4.62% | |||||||||
Puerto Rico | 21.54% | 14.36% | 3.00% | |||||||||
Dominican Republic | 52.02% | 13.86% | 5.84% | |||||||||
Mexico (fixed line and wireless) | 36.21% | 15.89% | 6.24% | |||||||||
Ecuador | 44.76% | 12.48% | 14.48% | |||||||||
Peru | 36.63% | 17.19% | 3.99% | |||||||||
El Salvador | 44.82% | 24.25% | 10.78% | |||||||||
Chile | 27.36% | 17.98% | 2.81% | |||||||||
Colombia | 43.36% | 23.18% | 7.18% | |||||||||
Other countries | 30.55% - 48.52% | 4.91% - 30.03% | 4.64% - 14.39% |
same
i) | Right-of-use assets |
m) Leases
The determination of whether an agreement is, or contains, a lease is based on the substance of the agreement and requires the Company to assess if performance of the agreement is dependent on the use of a specific asset and whether the agreement transfers the right of use of the asset to the Company.
Operating leases
Leases under which the lessor retains a significant portion of the risks and benefits inherent to the ownership of the leased asset are considered operating leases. Payments made under operating lease agreements are charged to results of operationsdepreciated on a straight-line basis over the rental period.
Finance leases
Lease agreements that substantially transfer all the risks and benefits of ownershipshorter of the leasedlease term and the estimated useful lives of the assets, as follows:
Assets | Useful life | |
Towers and sites | 5 to 12 years | |
Property | 10 to 25 years | |
Other equipment | 5 to 15 years |
ii) | Lease liabilities. |
iii) | Short-term leases and leases of low value assets. |
lease term.
–
Forsome trade receivables and contract assetsenvironment.
environment, including the impact by the COVID-19 pandemic.
—
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the consolidated statements of profit or loss.
comprehensive income.
Average exchange rate | Closing exchange rate at December 31, | |||||||||||||||||||||
Country or Zone | Currency | 2016 | 2017 | 2018 | 2017 | 2018 | ||||||||||||||||
Argentina (1) | Argentine Peso (AR$) | 1.2632 | 1.1489 | 0.7311 | 1.0610 | 0.5221 | ||||||||||||||||
Brazil | Real (R$) | 5.3868 | 5.9346 | 5.2937 | 5.9815 | 5.0797 | ||||||||||||||||
Colombia | Colombian Peso (COP$) | 0.0061 | 0.0064 | 0.0065 | 0.0066 | 0.0061 | ||||||||||||||||
Guatemala | Quetzal | 2.4548 | 2.5755 | 2.5591 | 2.6940 | 2.5440 | ||||||||||||||||
U.S.A.(2) | US Dollar | 18.6529 | 18.9400 | 19.2397 | 19.7867 | 19.6829 | ||||||||||||||||
Uruguay | Uruguay Peso | 0.6206 | 0.6606 | 0.6274 | 0.6869 | 0.6074 | ||||||||||||||||
Nicaragua | Cordoba | 0.6515 | 0.6307 | 0.6097 | 0.6428 | 0.6088 | ||||||||||||||||
Honduras | Lempira | 0.8109 | 0.8007 | 0.7994 | 0.8330 | 0.8031 | ||||||||||||||||
Chile | Chilean Peso | 0.0276 | 0.0292 | 0.0300 | 0.0322 | 0.0283 | ||||||||||||||||
Paraguay | Guaraní | 0.0033 | 0.0034 | 0.0034 | 0.0035 | 0.0033 | ||||||||||||||||
Peru | Sol (PEN$) | 5.5232 | 5.8054 | 5.8517 | 6.0976 | 5.8406 | ||||||||||||||||
Dominican Republic | Dominican Peso | 0.4048 | 0.3983 | 0.3876 | 0.4095 | 0.3898 | ||||||||||||||||
Costa Rica | Colon | 0.0338 | 0.0331 | 0.0332 | 0.0346 | 0.0322 | ||||||||||||||||
European Union | Euro | 20.6334 | 21.3649 | 22.7101 | 23.7539 | 22.5586 | ||||||||||||||||
Bulgaria | Lev | 10.5483 | 10.9223 | 11.6110 | 12.1406 | 11.5327 | ||||||||||||||||
Belarus | New Belarusian Ruble | 9.3929 | 9.8087 | 9.4451 | 9.9882 | 9.1319 | ||||||||||||||||
Croatia | Croatian Kuna | 2.7392 | 2.8619 | 3.0613 | 3.1954 | 3.0435 | ||||||||||||||||
Macedonia | Macedonian Denar | 0.3350 | 0.3471 | 0.3688 | 0.3861 | 0.3667 | ||||||||||||||||
Serbia | Serbian Denar | 0.1676 | 0.1762 | 0.1920 | 0.2009 | 0.1907 |
Average exchange rate | Closing exchange rate at December 31, | |||||||||||||||||||||
Country or Zone | Currency | 2019 | 2020 | 2021 | 2020 | 2021 | ||||||||||||||||
Argentina (1) | Argentine Peso (AR$) | 0.4110 | 0.3070 | 0.2137 | 0.2371 | 0.2004 | ||||||||||||||||
Brazil | Real (R$) | 4.8907 | 4.1850 | 3.7625 | 3.8387 | 3.6885 | ||||||||||||||||
Colombia | Colombian Peso (COP$) | 0.0059 | 0.0058 | 0.0054 | 0.0058 | 0.0052 | ||||||||||||||||
Guatemala | Quetzal | 2.5023 | 2.7826 | 2.6212 | 2.5596 | 2.6666 | ||||||||||||||||
U.S.A. (2) | US Dollar | 19.2641 | 21.4860 | 20.2769 | 19.9487 | 20.5835 | ||||||||||||||||
Uruguay | Uruguay Peso | 0.5479 | 0.5110 | 0.4655 | 0.4712 | 0.4605 | ||||||||||||||||
Nicaragua | Cordoba | 0.5817 | 0.6257 | 0.5765 | 0.5728 | 0.5795 | ||||||||||||||||
Honduras | Lempira | 0.7806 | 0.8678 | 0.8384 | 0.8215 | 0.8396 | ||||||||||||||||
Chile | Chilean Peso | 0.0275 | 0.0271 | 0.0268 | 0.0281 | 0.0244 | ||||||||||||||||
Paraguay | Guaraní | 0.0031 | 0.0032 | 0.0030 | 0.0029 | 0.0030 | ||||||||||||||||
Peru | Sol (PEN$) | 5.7708 | 6.1483 | 5.2297 | 5.5046 | 5.1484 | ||||||||||||||||
Dominican Republic | Dominican Peso | 0.3737 | 0.3766 | 0.3540 | 0.3416 | 0.3570 | ||||||||||||||||
Costa Rica | Colon | 0.0326 | 0.0366 | 0.0325 | 0.0323 | 0.0319 | ||||||||||||||||
European Union | Euro | 21.5642 | 24.5080 | 23.9835 | 24.3693 | 23.4220 | ||||||||||||||||
Bulgaria | Lev | 11.0257 | 12.5284 | 12.2617 | 12.4594 | 11.9762 | ||||||||||||||||
Belarus | New Belarusian Ruble | 9.2159 | 8.8172 | 7.9932 | 7.5721 | 8.0279 | ||||||||||||||||
Croatia | Croatian Kuna | 2.9069 | 3.2498 | 3.1852 | 3.2279 | 3.1161 | ||||||||||||||||
Macedonia | Macedonian Denar | 0.3504 | 0.3975 | 0.3893 | 0.3950 | 0.3800 | ||||||||||||||||
Serbia | Serbian Denar | 0.1830 | 0.2083 | 0.2040 | 0.2071 | 0.1992 |
(1) |
|
|
|
(2) | Includes U.S.A., Ecuador, El Salvador, Puerto Rico and Panama. |
As of April 9, 2019, the
20.3560 per US dollar, which represents an appreciation of 1.11% as compared to December 31, 2021.
Also, contingencies are only recognized when they will generate a loss.
2021.
18.
(i) | The date of the plan amendment or curtailment, and |
(ii) | The date that the Company recognizes restructuring-related costs |
and associates are considered as temporary differences, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Taxes withheld on remitted foreign earnings are creditable against Mexican taxes, thus to the extent that a remittance is to be made, the deferred tax would be limited to the incremental difference between the Mexican tax rate and the rate of the remitting country. As of December 31, 20172020 and 2018,2021, the Company has not provided for any deferred taxes related to unremitted foreign earnings.
17.
dollars and euros, other than its functional currency. In order to reduce the risks related to fluctuations in the exchange rate of foreign currency, the Company uses derivative financial instruments such as cross-currency swaps and forwards to adjust exposures resulting from foreign exchange currency. The Company does not use derivatives to hedge the exchange risk arising from having operations in different countries.
2021.
(i) | Expected to be realized or intended to be sold or consumed in the normal operating cycle. |
(ii) | Held primarily for the purpose of trading. |
(iii) | Expected to be realized within twelve months after the reporting period. |
(iv) | Cash and cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. |
The employee benefits expense recognized for the years ended December 31, 2016, 2017 and 2018 of Ps. 46,759,415, Ps. 48,696,331 and Ps. 47,671,143, respectively is presented as “Cost of sales and services” and of Ps. 63,691,855, Ps. 66,920,537 and Ps. 67,936,876, respectively is presented in “Commercial, administrative and general expenses”.
The management of the Company is responsible for making decisions regarding the resources to be allocated to the Company’s different segments, as well as evaluating the performance of each segment. Intersegment revenues and costs, intercompany balances as well as investments in shares in consolidated entities are eliminated upon consolidation and reflected in the “eliminations” column in Note 22.
23.
At December 31, 2018, amounts in U.S. dollars have been included in the
Company typically makes various assumptions about the future prospects for the business to which the asset relates, considers market factors specific to that business and estimates future cash flows to be generated by that business. Based on this impairment analysis, including all assumptions and estimates related thereto, as well as guidance provided by IFRS relating to the impairment of long-lived assets different assumptions and estimates could materially impact the Company’s reported financial results. More conservative assumptions of the anticipated future benefits from these businesses could result in impairment charges, which would decrease net
16.
ac) Retrospective
and other adjustments and 57,596,544 shares of Verizon stock valued at approximately US$2,968 million.
For the years ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Operating revenues: | ||||||||||||
Service revenues | Ps. | 131,403,268 | Ps. | 149,376,532 | Ps. | 130,091,540 | ||||||
Sales of equipment | 24,461,125 | 27,802,837 | 22,160,481 | |||||||||
155,864,393 | 177,179,369 | 152,252,021 | ||||||||||
Total costs and expenses | 144,822,141 | 157,327,836 | 134,495,316 | |||||||||
Operating income | 11,042,252 | 19,851,533 | 17,756,705 | |||||||||
Financial cost | (77,884 | ) | (2,026 | ) | (1,733 | ) | ||||||
Gain on disposal of discontinued operations | 0 | 0 | 132,821,709 | |||||||||
Profit before income tax discontinued operations | 10,964,368 | 19,849,507 | 150,576,681 | |||||||||
Tax expense: | ||||||||||||
Related to pre-tax profit from the ordinary activities for the period | 1,119,479 | 2,856,882 | 2,571,541 | |||||||||
Related to gain on disposal from discontinued operations | 0 | 0 | 26,294,422 | |||||||||
Net profit for the year from discontinued operations | Ps. | 9,844,889 | Ps. | 16,992,625 | Ps. | 121,710,718 | ||||||
November 23, | ||||
2021 | ||||
Current assets | ||||
Cash | Ps. | 338,439 | ||
Subscribers, distributors, recoverable taxes, contract assets and other net | 12,368,407 | |||
Inventories, net | 9,604,658 | |||
Other current assets, net | 389,052 | |||
Total current assets | 22,700,556 | |||
Non-current assets: | ||||
Property, plant and equipment | 1,989,498 | |||
Intangibles, net | 555,012 | |||
Goodwill | 2,695,557 | |||
Deferred income taxes | 1,094,756 | |||
Other assets, net | 327,546 | |||
Rights of use | 1,625 | |||
Total assets | Ps. | 29,364,550 | ||
Short term liability related to rigth of use of assets | Ps. | 1,625 | ||
Accounts payable | 17,446,513 | |||
Income tax | 3,267,585 | |||
Deferred revenue | 13,187,667 | |||
Total liabilities | 33,903,390 | |||
Net liability directly associated with disposal group | Ps. | (4,538,840 | ) | |
In the Consolidated Statements of Comprehensive Income:
As reported 2016 | Retrospective reclassification | 2016 As adjustments | ||||||||||
Operating revenues: | ||||||||||||
Mobile voice services | Ps. | 242,302,380 | Ps. | (242,302,380 | ) | Ps. | — | |||||
Fixed voice services | 95,299,154 | (95,299,154 | ) | — | ||||||||
Mobile data services | 256,936,895 | (256,936,895 | ) | — | ||||||||
Fixed data services | 126,278,206 | (126,278,206 | ) | — | ||||||||
Pay television | 78,268,778 | (78,268,778 | ) | — | ||||||||
Other related services | 32,799,952 | (32,799,952 | ) | — | ||||||||
Revenues services | — | 831,885,365 | 831,885,365 | |||||||||
|
|
|
|
|
| |||||||
Ps. | 831,885,365 | Ps. | — | Ps. | 831,885,365 | |||||||
|
|
|
|
|
|
As reported 2017 | Retrospective reclassification | 2017 As adjustments | ||||||||||
Operating revenues: | ||||||||||||
Mobile voice services | Ps. | 221,751,600 | Ps. | (221,751,600 | ) | Ps. | — | |||||
Fixed voice services | 89,856,743 | (89,856,743 | ) | — | ||||||||
Mobile data services | 308,526,994 | (308,526,994 | ) | — | ||||||||
Fixed data services | 139,277,613 | (139,277,613 | ) | — | ||||||||
Pay television | 86,882,606 | (86,882,606 | ) | — | ||||||||
Other related services | 32,115,767 | (32,115,767 | ) | — | ||||||||
Revenues services | — | 878,411,323 | 878,411,323 | |||||||||
|
|
|
|
|
| |||||||
Ps. | 878,411,323 | Ps. | — | Ps. | 878,411,323 | |||||||
|
|
|
|
|
|
2020.
The15,026, respectively, equity investment in Verizon for
taxes.
At December 31, | ||||||||
2017 | 2018 | |||||||
Subscribers and distributors | Ps. | 178,722,706 | Ps. | 173,053,226 | ||||
Telecommunications carriers for network interconnection and other services | 8,671,416 | 5,543,263 | ||||||
Recoverable taxes(i) | 40,477,188 | 46,706,298 | ||||||
Sundry debtors | 14,736,340 | 12,685,281 | ||||||
Contractual assets (Note 2i, a) | — | 34,718,749 | ||||||
Impairment of trade receivables | (39,044,925 | ) | (40,798,025 | ) | ||||
|
|
|
| |||||
Total net | Ps. | 203,562,725 | Ps. | 231,908,792 | ||||
|
|
|
| |||||
Non-current subscribers, distributors and contractual assets | 9,786,581 | 15,681,872 | ||||||
|
|
|
| |||||
Total current subscribers, distributors and contractual assets | Ps. | 193,776,144 | Ps. | 216,226,920 | ||||
|
|
|
|
|
At December 31, | ||||||||
2020 | 2021 | |||||||
Subscribers and distributors | Ps. 168,758,386 | Ps. 157,433,609 | ||||||
Telecommunications carriers for network interconnection and other services | 4,914,094 | 3,968,675 | ||||||
Recoverable taxes | 44,557,402 | 43,734,164 | ||||||
Sundry debtors | 12,504,566 | 15,573,586 | ||||||
Contract assets | 29,588,104 | 30,901,277 | ||||||
Impairment of trade receivables | (44,551,735 | ) | (41,835,826 | ) | ||||
Total net | Ps. 215,770,817 | Ps. 209,775,485 | ||||||
Non-current subscribers, distributors and contractual assets | 7,792,863 | 6,928,888 | ||||||
Total current subscribers, distributors and contractual assets | Ps. 207,977,954 | Ps. 202,846,597 | ||||||
For the years ended December 31, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
Balance at beginning of year | Ps. | (27,495,158 | ) | Ps. | (37,351,677 | ) | Ps. | (39,044,925 | ) | |||
Increases recorded in expenses | (16,987,769 | ) | (20,766,362 | ) | (19,535,707 | ) | ||||||
Adjustment on initial application of IFRS 9 (Note 2i, b) | — | — | (2,400,783 | ) | ||||||||
Write-offs | 12,587,567 | 17,713,992 | 15,497,254 | |||||||||
Translation effect | (5,456,317 | ) | 1,359,122 | 4,686,136 | ||||||||
|
|
|
|
|
| |||||||
Balance at end of year | Ps. | (37,351,677 | ) | Ps. | (39,044,925 | ) | Ps. | (40,798,025 | ) | |||
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Balance at beginning of year | Ps.(40,798,025 | ) | Ps.(39,480,909 | ) | Ps.(44,551,735 | ) | ||||||
Increases recorded in expenses | (16,346,395 | ) | (19,112,635 | ) | (10,677,421 | ) | ||||||
Write-offs (i) | 17,839,957 | 11,953,227 | 11,682,343 | |||||||||
Business combination | (3,265,490 | ) | (2,066 | ) | — | |||||||
Translation effect | 3,089,044 | 2,090,648 | 1,710,987 | |||||||||
Balance at end of year | Ps.(39,480,909 | ) | Ps.(44,551,735 | ) | Ps.(41,835,826 | ) | ||||||
(i) | Includes discontinued operation of Tracfone. See Note 2Ac. |
| ||||||||||||||||||||||||
|
Past due | ||||||||||||||||||||||||
Total | Unbilled services provided | a-30 days | 31-60 days | 61-90 days | Greater than 90 days | |||||||||||||||||||
December 31, 2020 | Ps. | 168,758,386 | Ps. | 75,972,811 | Ps. | 37,439,995 | Ps. | 5,325,264 | Ps. | 3,313,835 | Ps. | 46,706,481 | ||||||||||||
December 31, 2021 | Ps. | 157,433,609 | Ps. | 69,082,837 | Ps. | 35,694,272 | Ps. | 4,533,604 | Ps. | 2,645,034 | Ps. | 45,477,862 |
| ||||||||||||
|
2021:
Total | 1-90 days | Greater than 90 days | ||||||||||
December 31, 2020 | Ps. | 44,551,735 | Ps. | 4,455,174 | Ps. | 40,096,561 | ||||||
December 31, 2021 | Ps. | 41,835,826 | Ps. | 4,183,583 | Ps. | 37,652,243 |
| ||||
| ||||
| ||||
| ||||
| ||||
| ||||
| ||||
|
2020 | 2021 | |||||||
Contract Assets: | ||||||||
Balance at the beginning of the year | Ps. | 34,274,007 | Ps. | 29,588,104 | ||||
Additions | 27,242,031 | 31,758,626 | ||||||
Disposals | (1,397,714 | ) | (5,946,487 | ) | ||||
Amortization | (29,002,995 | ) | (25,354,712 | ) | ||||
Translation effect | (1,527,225 | ) | 855,746 | |||||
Balance at the end of the year | Ps. | 29,588,104 | Ps. | 30,901,277 | ||||
Non-current contract assets | Ps. | 817,740 | Ps. | 989,519 | ||||
Current portion contracts assets | Ps. | 28,770,364 | Ps. | 29,911,758 | ||||
2017 | 2018 | |||||||
Accounts receivable: | ||||||||
Sears Roebuck de México, S.A. de C.V. | Ps. | 211,491 | Ps. | 264,976 | ||||
Sanborns Hermanos, S.A. | 91,233 | 312,706 | ||||||
Patrimonial Inbursa, S.A. | 246,874 | 214,180 | ||||||
Carso Infraestructura y Construcción, S.A. de C.V. and Subsidiaries | 89,585 | 179,852 | ||||||
Grupo Condumex, S.A. de C.V. and Subsidiaries | 47,269 | 35,007 | ||||||
Operadora de Sites Mexicanos, S.A. de C.V. | 14,252 | 16,634 | ||||||
Other | 167,526 | 240,250 | ||||||
|
|
|
| |||||
Total | Ps. | 868,230 | Ps. | 1,263,605 | ||||
|
|
|
| |||||
2017 | 2018 | |||||||
Accounts payable: | ||||||||
Carso Infraestructura y Construcción, S.A. de C.V. and Subsidiaries | Ps. | 947,761 | Ps. | 1,403,414 | ||||
Grupo Condumex, S.A. de C.V. and Subsidiaries | 812,427 | 784,678 | ||||||
Grupo Financiero Inbursa, S.A.B. de C.V. | 38,847 | 235,745 | ||||||
Fianzas Guardiana Inbursa, S.A. de C.V. | 276,633 | 227,014 | ||||||
PC Industrial, S.A. de C.V. and Subsidiaries | 136,859 | 83,502 | ||||||
Enesa, S.A. de C.V. and Subsidiaries | 50,609 | 22,630 | ||||||
Other | 277,276 | 217,230 | ||||||
|
|
|
| |||||
Total | Ps. | 2,540,412 | Ps. | 2,974,213 | ||||
|
|
|
|
2020 | 2021 | |||||||
Accounts receivable: | ||||||||
Sears Roebuck de México, S.A. de C.V. and Subsidiaries | Ps. | 233,402 | Ps. | 339,366 | ||||
Sanborns Hermanos, S.A. | 160,116 | 192,599 | ||||||
Patrimonial Inbursa, S.A. | 327,985 | 145,676 | ||||||
Grupo Condumex, S.A. de C.V. and Subsidiaries | 10,038 | 122,555 | ||||||
Hubard y Bourlon, S.A. de C.V. | 437,231 | 52,026 | ||||||
Claroshop.com, S.A.P.I de C.V. | 100,075 | 40,906 | ||||||
Other | 122,453 | 265,483 | ||||||
Total | Ps. | 1,391,300 | Ps. | 1,158,611 | ||||
2020 | 2021 | |||||||
Accounts payable: | ||||||||
Carso Infraestructura y Construcción, S.A. de C.V. and Subsidiaries | Ps. | 2,192,405 | Ps. | 1,273,085 | ||||
Grupo Condumex, S.A. de C.V. and Subsidiaries | 1,054,526 | 1,709,487 | ||||||
Fianzas Guardiana Inbursa, S.A. de C.V. | 241,898 | 385,287 | ||||||
Claroshop.com, S.A.P.I de C.V. | 4,300 | 247,081 | ||||||
Grupo Financiero Inbursa, S.A.B. de C.V. | 234,954 | 102,314 | ||||||
Seguros Inbursa, S.A. de C.V. | 92,173 | 113,089 | ||||||
Sociedad Financiera Inbursa, S.A. de C.V. | 0 | 80,382 | ||||||
PC Industrial, S.A. de C.V. and Subsidiaries | 44,198 | 4,761 | ||||||
Enesa, S.A. de C.V. and Subsidiaries | 22,014 | 9,384 | ||||||
Other | 113,448 | 292,012 | ||||||
Total | Ps. | 3,999,916 | Ps. | 4,216,882 | ||||
2016 | 2017 | 2018 | ||||||||||
Investments and expenses: | ||||||||||||
Construction services, purchases of materials, inventories and property, plant and equipment (i) | Ps. | 9,917,280 | Ps. | 11,030,944 | Ps. | 7,211,960 | ||||||
Rent of towers | 4,748,503 | 5,326,366 | 6,168,592 | |||||||||
Insurance premiums, fees paid for administrative and operating services, brokerage services and others(ii) | 4,118,469 | 4,135,578 | 4,134,380 | |||||||||
Other services | 1,899,818 | 2,802,667 | 1,864,017 | |||||||||
|
|
|
|
|
| |||||||
Ps. | 20,684,070 | Ps. | 23,295,555 | Ps. | 19,378,949 | |||||||
|
|
|
|
|
| |||||||
Revenues: | ||||||||||||
Revenues services | Ps. | 411,076 | Ps. | 416,047 | Ps. | 679,220 | ||||||
Sales of equipment | 2,679,591 | 2,313,840 | 1,296,204 | |||||||||
|
|
|
|
|
| |||||||
Ps. | 3,090,667 | Ps. | 2,729,887 | Ps. | 1,975,424 | |||||||
|
|
|
|
|
|
2019 | 2020 | 2021 | ||||||||||
Investments and expenses: | ||||||||||||
Construction services, purchases of materials, inventories and property, plant and equipment (i) | Ps. | 8,573,894 | Ps. | 7,130,769 | Ps. | 13,544,289 | ||||||
Insurance premiums, fees paid for administrative and operating services, brokerage services and others (ii) | 4,590,620 | 4,375,113 | 4,336,133 | |||||||||
Other services | 1,277,404 | 1,101,528 | 1,617,102 | |||||||||
Ps. | 14,441,918 | Ps. | 12,607,410 | Ps. | 19,497,524 | |||||||
Revenues: | ||||||||||||
Service revenues | Ps. | 538,110 | Ps. | 608,248 | Ps. | 714,148 | ||||||
Sales of equipment (iii) | 944,697 | 656,801 | 7,629,181 | |||||||||
Ps. | 1,482,807 | Ps. | 1,265,049 | Ps. | 8,343,329 | |||||||
i) | In |
ii) | In |
iii) | In November 2021, a subsidiary of Telmex sold certain tower assets to Telesites, S.A.B. de C.V. |
iv) | The amounts related to payments for tower lease are reflected in Note 15. |
At December 31, | ||||||||||||||||
2017 | 2018 | |||||||||||||||
Instrument | Notional amount in millions | Fair Value | Notional amount in millions | Fair Value | ||||||||||||
Assets: | ||||||||||||||||
Swaps US Dollar-Mexican peso | US$ | 2,800 | Ps.4,766,102 | US$ | 3,490 | Ps. 2,058,831 | ||||||||||
Swaps Euro-Mexican peso | € | — | — | — | — | |||||||||||
SwapsYen-US Dollar | ¥ | 13,000 | 521,270 | ¥ | 13,000 | 581,948 | ||||||||||
Forwards US Dollar-Mexican peso | US$ | 1,744 | 1,600,666 | — | — | |||||||||||
Forwards USDollar-Brazilian real | US$ | 100 | 44,280 | US$ | 150 | 126,287 | ||||||||||
Swaps SwissFranc-US Dollar | CHF | 475 | 178,710 | — | — | |||||||||||
SwapsEuro-Brazilian real | € | 450 | 359,671 | € | 300 | 1,080,552 | ||||||||||
Interest rate swap | Ps.200 | 916 | — | — | ||||||||||||
Forwards Brazilian Real-US Dollar | — | — | BRL $ | 2,823 | 1,107,630 | |||||||||||
ForwardsEuro-Brazilian real | € | 400 | 330,427 | € | 150 | 123,005 | ||||||||||
Forwards US Dollar-Swiss franc | CHF | 75 | 121,981 | — | — | |||||||||||
ForwardsEuro-US Dollar | € | 204 | 113,361 | € | 710 | 209,295 | ||||||||||
|
|
|
| |||||||||||||
Total Assets | Ps. 8,037,384 | Ps. 5,287,548 | ||||||||||||||
|
|
|
|
At December 31, | ||||||||||||||||
2017 | 2018 | |||||||||||||||
Instrument | Notional amount in millions | Fair Value | Notional amount in millions | Fair Value | ||||||||||||
Liabilities: | ||||||||||||||||
Swaps US Dollar-Euro | US$ | 2,092 | Ps. | (8,340,970) | US$ | 2,025 | Ps. | (5,114,863) | ||||||||
Swaps Pound sterling-Euro | £ | 740 | (3,376,091) | £ | 740 | (4,027,312) | ||||||||||
Swap Poundsterling-US Dollar | £ | 2,010 | (1,676,636) | £ | 2,010 | (5,836,607) | ||||||||||
Forwards US Dollar-Mexican Peso | — | — | US$ | 977 | (772,704) | |||||||||||
Forwards Euro-US Dollar | — | — | € | 950 | (333,586) | |||||||||||
Call spread option | € | 750 | (48,422) | — | — | |||||||||||
Put option | € | 374 | (482,645) | € | 374 | (988,669) | ||||||||||
Call spread option | € | 3,000 | (434,696) | € | 3,000 | (33,838) | ||||||||||
|
|
|
| |||||||||||||
Total Liabilities | Ps. | (14,359,460) | Ps. | (17,107,579) | ||||||||||||
|
|
|
| |||||||||||||
Non-current liability | Ps. | (3,756,921) | Ps. | (3,567,863) | ||||||||||||
|
|
|
| |||||||||||||
Total current liability | Ps. | (10,602,539) | Ps. | (13,539,716) | ||||||||||||
|
|
|
|
At December 31, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
Instrument | Notional amount in millions | Fair Value | Notional amount in millions | Fair Value | ||||||||||||
Assets: | ||||||||||||||||
Swaps US Dollar – Mexican Peso | US$ | 3,490 | Ps. | 16,806,937 | US$ | 1,890 | Ps. | 6,881,934 | ||||||||
Swaps US Dollar – Euro | US$ | 150 | 117,726 | US$ | 150 | 307,646 | ||||||||||
Swaps Yen – US Dollar | ¥ | 9,750 | 269,215 | ¥ | 6,500 | 119,325 | ||||||||||
Swaps Pound Sterling – US Dollar | £ | 1,010 | 2,237,919 | £ | 100 | 99,463 | ||||||||||
Forwards US Dollar – Mexican Peso | US$ | 240 | 39,607 | US$ | 2,080 | 321,864 | ||||||||||
Forwards Mexican Peso – US Dollar | — | — | MX$ | 35,419 | 1,635,087 | |||||||||||
Forwards Brazilian Real – US Dollar | BRL$ | 4,193 | 1,190,292 | BRL$ | 2,480 | 127,131 | ||||||||||
Forwards Euro – US Dollar | € | 915 | 266,639 | 0 | 0 | |||||||||||
Put Option | — | — | € | 374 | 638,347 | |||||||||||
Total Assets | — | Ps. | 20,928,335 | — | Ps. | 10,130,806 | ||||||||||
At December 31, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
Instrument | Notional amount in millions | Fair Value | Notional amount in millions | Fair Value | ||||||||||||
Liabilities: | ||||||||||||||||
Swaps US Dollar – Euro | US$ | 800 | Ps. | (4,811,031 | ) | US$ | 800 | Ps. | (1,270,005 | ) | ||||||
Swaps Yen – US Dollar | ¥ | 3,250 | (14,802 | ) | ¥ | 6,500 | (119,313 | ) | ||||||||
Swaps Pound Sterling – Euro | £ | 640 | (3,122,492 | ) | £ | 640 | (1,924,941 | ) | ||||||||
Swap Pound Sterling – US Dollar | £ | 550 | (457,559 | ) | £ | 1,460 | (2,117,583 | ) | ||||||||
Swaps Euro – US Dollar | 0 | 0 | € | 495 | (528,298 | ) | ||||||||||
Swaps Euro – Mexican Peso | — | — | € | 750 | (680,720 | ) | ||||||||||
Forwards US Dollar – Mexican Peso | US$ | 3,494 | (4,052,852 | ) | US$ | 1,175 | (286,937 | ) | ||||||||
Forwards Brazilian Real – US Dollar | BRL$ | 1,762 | (425,249 | ) | BRL$ | 4,021 | (234,822 | ) | ||||||||
Forwards Euro – US Dollar | — | — | € | 815 | (1,122,641 | ) | ||||||||||
Forwards US Dollar – Euro | — | — | US$ | 8 | (1,570 | ) | ||||||||||
Forwards Euro – Mexican Peso | € | 200 | (272,274 | ) | € | 200 | (22,182 | ) | ||||||||
Put option | € | 374 | (1,073,990 | ) | 0 | 0 | ||||||||||
Call option | 0 | 0 | € | 2,097 | (1,725,495 | ) | ||||||||||
Total Liabilities | — | Ps. | (14,230,249 | ) | — | Ps. | (10,034,508 | ) | ||||||||
* | Totals may not sum due to rounding. |
Instrument | Notional amount in millions | 2019 | 2020 | 2021 | 2022 | 2023 Thereafter | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Swaps US Dollar-Mexican peso | US$ | — | — | — | 1,600 | 1,890 | ||||||||||||||||||
SwapsYen-US Dollar | ¥ | — | — | — | — | 13,000 | ||||||||||||||||||
SwapsEuro-Brazilian real | € | 300 | — | — | — | — | ||||||||||||||||||
Forwards Brazilian Real-US Dollar | BRL | 1,680 | — | 1,143 | — | — | ||||||||||||||||||
Forwards Euro-Brazilian Real | € | 150 | — | — | — | — | ||||||||||||||||||
Forwards US Dollar-Brazilian Real | US$ | 150 | — | — | — | — | ||||||||||||||||||
Forwards Euro-US Dollar | € | 710 | — | — | — | — | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Swaps US Dollar-Euro | US$ | 25 | — | — | — | 2,000 | ||||||||||||||||||
Swaps Pound sterling-Euro | £ | — | — | — | — | 740 | ||||||||||||||||||
Swap Poundsterling-US Dollar | £ | — | 550 | — | — | 1,460 | ||||||||||||||||||
Forwards US Dollar-Mexican Peso | US$ | 977 | — | — | — | — | ||||||||||||||||||
Forwards Euro-US Dollar | € | 950 | — | — | — | — | ||||||||||||||||||
Put option | € | — | — | — | — | 374 | ||||||||||||||||||
Call spread option | € | — | 3,000 | — | — | — |
Instrument | Notional amount in millions | 2022 | 2023 | 2024 | 2025 | 2026 Thereafter | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Swaps US Dollar-Mexican Peso | US$ | — | 0 | — | — | 1,890 | ||||||||||||||||||
Swaps Yen-US Dollar | ¥ | — | — | — | — | 6,500 | ||||||||||||||||||
Swaps US Dollar – Euro | US$ | — | — | — | — | 150 | ||||||||||||||||||
Swaps Pound Sterling – US Dollar | £ | — | — | — | — | 100 | ||||||||||||||||||
Forwards US Dollar-Mexican Peso | US$ | 2,080 | — | — | — | — | ||||||||||||||||||
Forwards Mexican Peso – US Dollar | MX$ | 35,419 | — | — | — | — | ||||||||||||||||||
Forwards Brazilian Real-US Dollar | BRL | 2,480 | — | — | — | — | ||||||||||||||||||
Put Option | € | — | 374 | — | — | — | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Swaps US Dollar-Euro | US$ | — | — | — | — | 800 | ||||||||||||||||||
Swaps Euro – US Dollar | € | — | 320 | 175 | — | — | ||||||||||||||||||
Swaps Euro – Mexican Peso | US$ | — | 750 | — | — | — | ||||||||||||||||||
Swaps Yen-US Dollar | ¥ | — | — | — | — | 6,500 | ||||||||||||||||||
Swaps Pound Sterling-Euro | £ | — | — | — | — | 640 | ||||||||||||||||||
Swap Pound Sterling-US Dollar | £ | — | — | — | — | 1,460 | ||||||||||||||||||
Forwards US Dollar – Mexican Peso | US$ | 1,175 | — | — | — | — | ||||||||||||||||||
Forwards Euro – US Dollar | € | 765 | — | 50 | — | — | ||||||||||||||||||
Forwards US Dollar—Euro | US$ | 8 | — | — | — | — | ||||||||||||||||||
Forwards Brazilian Real-US Dollar | BRL | 4,021 | — | — | — | — | ||||||||||||||||||
Forwards Euro – Mexican Peso | € | 200 | — | — | — | — | ||||||||||||||||||
Call option | € | — | — | 2,097 | — | — |
2017 | 2018 | |||||||
Mobile phones, accessories, computers, TVs, cards and other materials | Ps. 42,262,511 | Ps. 43,723,492 | ||||||
Less: Reserve for obsolete and slow-moving inventories | (3,452,946 | ) | (3,418,130 | ) | ||||
|
|
|
| |||||
Total | Ps. 38,809,565 | Ps. 40,305,362 | ||||||
|
|
|
|
2020 | 2021 | |||||||
Mobile phones, accessories, computers, TVs, cards and other materials | Ps.33,763,086 | Ps. | ||||||
Less: Reserve for obsolete and slow-moving inventories | (3,385,647 | ) | (1,946,211 | ) | ||||
Total | Ps.30,377,439 | Ps. | ||||||
respectively
2017 | 2018 | |||||||
Current portion: | ||||||||
Advances to suppliers (different from PP&E and inventories) | Ps. 9,536,654 | Ps. 12,931,247 | ||||||
Prepaid insurance | 683,091 | 949,590 | ||||||
Costs of mobile equipment and computers associated with deferred revenues | 6,182,010 | 599,628 | ||||||
Other | 950,991 | 815,728 | ||||||
|
|
|
| |||||
Ps. 17,352,746 | Ps.15,296,193 | |||||||
|
|
|
| |||||
Non-current portion: | ||||||||
Recoverable taxes | Ps. 12,249,372 | Ps. 11,514,455 | ||||||
Prepayments for the use of fiber optics | 4,361,668 | 3,985,216 | ||||||
Prepaid expenses and judicial deposits (1) | 25,926,436 | 26,961,930 | ||||||
|
|
|
| |||||
Total | Ps. 42,537,476 | Ps. 42,461,601 | ||||||
|
|
|
|
2020 | 2021 | |||||||
Current portion: | ||||||||
Advances to suppliers (different from PP&E and inventories) | Ps. | 7,600,644 | Ps. | 7,474,932 | ||||
Prepaid insurance | 1,300,019 | 1,749,589 | ||||||
Other | 93,244 | 227,731 | ||||||
Ps. | 8,993,907 | Ps. | 9,452,252 | |||||
Non-current portion: | ||||||||
Recoverable taxes | Ps. | 11,559,961 | Ps. | 11,689,094 | ||||
Prepayments for the use of fiber optics | 2,709,358 | 3,783,496 | ||||||
Judicial Deposits (1) | 15,402,840 | 14,583,504 | ||||||
Prepaid expenses | 8,743,667 | 9,899,996 | ||||||
Total | Ps. | 38,415,826 | Ps. | 39,956,090 | ||||
(1) | Judicial deposits represent cash and cash equivalents pledged in order to fulfill the collateral requirements for tax contingencies mainly in Brazil. |
At December 31, 2015 | Additions | Retirements | Business combinations | Translation effect of Foreign Subsidiaries | Depreciation for the year | At December 31, 2016 | ||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||
Network in operation and equipment | Ps. | 641,384,702 | Ps. | 101,794,197 | Ps. | (8,963,076 | ) | Ps. | 1,873,445 | Ps. | 235,186,745 | Ps. | — | Ps. | 971,276,013 | |||||||||||||
Land and buildings | 54,794,386 | 2,900,511 | (2,845,298 | ) | 3,839 | 7,281,973 | — | 62,135,411 | ||||||||||||||||||||
Other assets | 106,468,602 | 24,368,918 | (10,717,096 | ) | 69,937 | 24,736,655 | — | 144,927,016 | ||||||||||||||||||||
Construction in process and advances plant suppliers(1) | 38,850,776 | 70,517,319 | (70,911,593 | ) | 11,255 | 11,252,127 | — | 49,719,884 | ||||||||||||||||||||
Spare parts for operation of the network | 20,342,389 | 34,010,751 | (27,641,919 | ) | 5,520 | 1,566,307 | — | 28,283,048 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 861,840,855 | 233,591,696 | (121,078,982 | ) | 1,963,996 | 280,023,807 | — | 1,256,341,372 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||
Network in operation and equipment | 236,731,728 | — | (1,968,376 | ) | — | 153,147,349 | 107,976,385 | 495,887,086 | ||||||||||||||||||||
Buildings | 4,567,588 | — | (975,284 | ) | — | 3,709,952 | 3,179,066 | 10,481,322 | ||||||||||||||||||||
Other assets | 47,057,084 | — | (25,099,710 | ) | — | 10,396,438 | 16,105,885 | 48,459,697 | ||||||||||||||||||||
Spare parts for operation of the network | (44,423 | ) | — | (54,280 | ) | — | 20,896 | 401,008 | 323,201 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | Ps. | 288,311,977 | Ps. | — | Ps. | (28,097,650 | ) | Ps. | — | Ps. | 167,274,635 | Ps. | 127,662,344 | Ps. | 555,151,306 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net Cost | Ps. | 573,528,878 | Ps. | 233,591,696 | Ps. | (92,981,332 | ) | Ps. | 1,963,996 | Ps. | 112,749,172 | Ps. | (127,662,344 | ) | Ps. | 701,190,066 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2016 | Additions | Retirements | Business combinations | Effect of translation of foreign subsidiaries | Depreciation for the year | At December 31, 2017 | ||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||
Network in operation and equipment | Ps. 971,276,013 | Ps. 78,272,882 | Ps. (21,657,715 | ) | Ps. | 599,306 | Ps.(38,824,540 | ) | Ps. — | Ps. 989,665,946 | ||||||||||||||||||
Land and buildings | 62,135,411 | 2,858,996 | (415,219 | ) | 27,686 | (2,022,685 | ) | — | 62,584,189 | |||||||||||||||||||
Other assets | 144,927,016 | 19,287,525 | (8,112,571 | ) | 80,734 | (5,866,897 | ) | — | 150,315,807 | |||||||||||||||||||
Construction in process and advances plant suppliers(1) | 49,719,884 | 66,383,381 | (41,279,573 | ) | 34,705 | (737,023 | ) | — | 74,121,374 | |||||||||||||||||||
Spare parts for operation of the network | 28,283,048 | 27,013,148 | (27,979,816 | ) | 3,576 | (728,358 | ) | — | 26,591,598 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 1,256,341,372 | 193,815,932 | (99,444,894 | ) | 746,007 | (48,179,503 | ) | — | 1,303,278,914 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||
Network in operation and equipment | 495,887,086 | — | (21,214,724 | ) | — | (32,860,339 | ) | 110,533,486 | 552,345,509 | |||||||||||||||||||
Buildings | 10,481,322 | — | (1,568,542 | ) | — | (940,054 | ) | 2,682,559 | 10,655,285 | |||||||||||||||||||
Other assets | 48,459,697 | — | (4,572,509 | ) | — | (2,251,958 | ) | 21,724,299 | 63,359,529 | |||||||||||||||||||
Spare parts for operation of the network | 323,201 | — | (9,205 | ) | — | (4,339 | ) | 265,736 | 575,393 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | Ps. 555,151,306 | Ps. — | Ps. (27,364,980 | ) | Ps. | — | Ps.(36,056,690 | ) | Ps. 135,206,080 | Ps. 626,935,716 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net Cost | Ps. 701,190,066 | Ps. 193,815,932 | Ps. (72,079,914 | ) | Ps. | 746,007 | Ps. (12,122,813 | ) | Ps. (135,206,080 | ) | Ps. 676,343,198 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2017 | Additions | Retirements | Business combinations | Effect of translation of foreign subsidiaries and hyperinflation adjustment | Depreciation for the year | At December 31, 2018 | ||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||
Network in operation and equipment | Ps. 989,665,946 | Ps. 68,900,443 | Ps. (1,610,246 | ) | Ps. 128,246 | Ps. (87,888,453 | ) | — | Ps. 969,195,936 | |||||||||||||||||||
Land and buildings | 62,584,189 | 4,429,433 | (3,987,671 | ) | 8,874 | (5,904,499 | ) | — | 57,130,326 | |||||||||||||||||||
Other assets | 150,315,807 | 25,268,252 | (13,377,798 | ) | 2,578 | (12,399,702 | ) | — | 149,809,137 | |||||||||||||||||||
Construction in process and advances plant suppliers(1) | 74,121,374 | 92,285,397 | (76,978,798 | ) | 1,379 | (8,336,823 | ) | — | 81,092,529 | |||||||||||||||||||
Spare parts for operation of the network | 26,591,598 | 49,380,349 | (44,626,488 | ) | 1,939 | (2,902,869 | ) | — | 28,444,529 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 1,303,278,914 | 240,263,874 | (140,581,001 | ) | 143,016 | (117,432,346 | ) | — | 1,285,672,457 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||
Network in operation and equipment | 552,345,509 | — | (28,712,096 | ) | — | (67,907,227 | ) | 104,279,361 | 560,005,547 | |||||||||||||||||||
Buildings | 10,655,285 | — | (2,311,442 | ) | — | (2,157,996 | ) | 2,625,102 | 8,810,949 | |||||||||||||||||||
Other assets | 63,359,529 | — | (2,418,837 | ) | — | (6,579,983 | ) | 22,172,785 | 76,533,494 | |||||||||||||||||||
Spare parts for operation of the network | 575,393 | — | (160,696 | ) | — | (131,429 | ) | 38,479 | 321,747 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | Ps. 626,935,716 | Ps. — | Ps. (33,603,071 | ) | Ps. — | Ps. (76,776,635 | ) | Ps. 129,115,727 | Ps. 645,671,737 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net Cost | Ps. 676,343,198 | Ps.240,263,874 | Ps. (106,977,930 | ) | Ps. 143,016 | Ps. (40,655,711 | ) | Ps. (129,115,727 | ) | Ps. 640,000,720 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2018 | Additions | Retirements | Business combinations | Effect of translation of foreign subsidiaries and hyperinflation adjustment | Depreciation for the year | At December 31, 2019 | ||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||
Network in operation and equipment | Ps. | 969,195,936 | Ps. | 82,992,062 | Ps. | (13,417,360 | ) | Ps. | 9,572,805 | Ps. | (57,669,840 | ) | Ps. | — | Ps. | 990,673,603 | ||||||||||||
Land and buildings | 57,130,326 | 1,530,677 | (4,025,222 | ) | 115,935 | (3,950,463 | ) | — | 50,801,253 | |||||||||||||||||||
Other assets | 149,809,137 | 26,881,611 | (7,594,735 | ) | 1,021,051 | (7,776,500 | ) | — | 162,340,564 | |||||||||||||||||||
Construction in process and advances plant suppliers (1) | 81,092,529 | 82,640,305 | (76,892,011 | ) | 209,790 | (5,511,439 | ) | — | 81,539,174 | |||||||||||||||||||
Spare parts for operation of the network | 28,444,529 | 44,776,904 | (36,525,735 | ) | 0 | (2,462,605 | ) | — | 34,233,093 | |||||||||||||||||||
Total | 1,285,672,457 | 238,821,559 | (138,455,063 | ) | 10,919,581 | (77,370,847 | ) | — | 1,319,587,687 | |||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||
Network in operation and equipment | 560,005,547 | — | (24,954,514 | ) | — | (47,778,627 | ) | 93,097,695 | 580,370,101 | |||||||||||||||||||
Buildings | 8,810,949 | — | (287,072 | ) | — | (1,386,974 | ) | 2,330,405 | 9,467,308 | |||||||||||||||||||
Other assets | 76,533,494 | — | (695,425 | ) | — | (4,754,982 | ) | 19,249,104 | 90,332,191 | |||||||||||||||||||
Spare parts for operation of the network | 321,747 | — | (283,986 | ) | — | (79,226 | ) | 116,182 | 74,717 | |||||||||||||||||||
Total | Ps. | 645,671,737 | Ps. | — | Ps. | (26,220,997 | ) | Ps. | — | Ps. | (53,999,809 | ) | Ps. | 114,793,386 | Ps. | 680,244,317 | ||||||||||||
Net Cost | Ps. | 640,000,720 | Ps. | 238,821,559 | Ps. | (112,234,066 | ) | Ps. | 10,919,581 | Ps. | (23,371,038 | ) | Ps. | (114,793,386 | ) | Ps. | 639,343,370 | |||||||||||
At December 31, 2019 | Additions | Retirements | Business combinations | Revaluation adjustments | Transfers | Effect of translation of foreign subsidiaries and hyperinflation adjustment | Depreciation for the year | At December 31, 2020 | ||||||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||||||||||
Network in operation and equipment | Ps. | 990,673,603 | Ps. | 90,387,449 | Ps. | (19,574,391 | ) | Ps. | 996,974 | Ps. | 107,152,628 | Ps. | (62,050,212 | ) | Ps. | (49,993,808 | ) | Ps. | — | Ps. | 1,057,592,243 | |||||||||||||||
Land and buildings | 50,801,253 | 570,062 | (2,853,037 | ) | — | — | — | 369,300 | — | 48,887,578 | ||||||||||||||||||||||||||
Other assets | 162,340,564 | 17,474,218 | (14,454,598 | ) | 55,848 | — | — | (8,393,187 | ) | — | 157,022,845 | |||||||||||||||||||||||||
Construction in process and advances plant suppliers (1) | 81,539,174 | 59,635,316 | (68,661,847 | ) | 1,099 | — | — | (5,011,829 | ) | — | 67,501,913 | |||||||||||||||||||||||||
Spare parts for operation of the network | 34,233,093 | 30,721,413 | (37,829,818 | ) | — | — | — | (2,328,430 | ) | — | 24,796,258 | |||||||||||||||||||||||||
Total | 1,319,587,687 | 198,788,458 | (143,373,691 | ) | 1,053,921 | 107,152,628 | (62,050,212 | ) | (65,357,954 | ) | — | 1,355,800,837 | ||||||||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||||||||||
Network in operation and equipment | 580,370,101 | — | (25,726,856 | ) | — | — | (62,050,212 | ) ( 2 ) | (58,055,450 | ) | 96,729,723 | 531,267,306 | ||||||||||||||||||||||||
Buildings | 9,467,308 | — | (1,663,796 | ) | — | — | — | (622,253 | ) | 1,906,140 | 9,087,399 | |||||||||||||||||||||||||
Other assets | 90,332,191 | — | (9,317,821 | ) | — | — | — | (5,120,175 | ) | 16,549,822 | 92,444,017 | |||||||||||||||||||||||||
Spare parts for operation of the network | 74,717 | — | (176,131 | ) | — | — | — | 38,898 | 135,000 | 72,484 | ||||||||||||||||||||||||||
Total | Ps. | 680,244,317 | Ps. | — | Ps. | (36,884,604 | ) | Ps. | — | Ps. | — | Ps. | (62,050,212 | ) | Ps. | (63,758,980 | ) | Ps. | 115,320,685 | P | s 632,871,206 | |||||||||||||||
Net Cost | Ps. | 639,343,370 | Ps. | 198,788,458 | Ps. | (106,489,087 | ) | Ps. | 1,053,921 | Ps. | 107,152,628 | . | — | Ps. | (1,598,974 | ) | Ps. | (115,320,685 | ) | Ps. | 722,929,631 | |||||||||||||||
At December 31, 2020 | Additions | Retirements (3) | Business combinations | Transfers | Effect of translation of foreign subsidiaries and hyperinflation adjustment | Depreciation for the year | At December 31, 2021 | |||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||||||
Network in operation and equipment | Ps. | 1,057,592,243 | Ps. | 89,696,150 | Ps. | (45,044,049 | ) | Ps. | 0 | Ps. | 53,531,590 | Ps. | (44,061,097 | ) | Ps. | — | Ps . | 1,111,714,837 | ||||||||||||||
Land and buildings | 48,887,578 | 784,460 | (473,785 | ) | — | 38,250 | (1,216,894 | ) | — | 48,019,609 | ||||||||||||||||||||||
Other assets | 157,022,845 | 10,782,903 | (11,994,756 | ) | 0 | (1,800,756 | ) | (1,870,104 | ) | — | 152,140,132 | |||||||||||||||||||||
Construction in process and advances plant suppliers (1) | 67,501,913 | 83,366,813 | (47,178,796 | ) | 0 | (38,944,421 | ) | (1,420,843 | ) | — | 63,324,666 | |||||||||||||||||||||
Spare parts for operation of the network | 24,796,258 | 46,909,494 | (23,108,928 | ) | — | (13,824,767 | ) | (974,011 | ) | — | 33,798,046 | |||||||||||||||||||||
Total | 1,355,800,837 | 231,539,820 | (127,800,314 | ) | 0 | (1,000,104 | ) | (49,542,949 | ) | — | 1,408,997,290 | |||||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||||||
Network in operation and equipment | 531,267,306 | — | (24,322,904 | ) | — | 638,066 | (30,254,288 | ) | 97,343,878 | 574,672,058 | ||||||||||||||||||||||
Buildings | 9,087,399 | — | (219,030 | ) | — | (221,937 | ) | (738,748 | ) | 1,941,819 | 9,849,503 | |||||||||||||||||||||
Other assets | 92,444,017 | — | (10,522,319 | ) | — | 549,855 | (2,522,458 | ) | 13,310,584 | 93,259,679 | ||||||||||||||||||||||
Spare parts for operation of the network | 72,484 | — | (92,421 | ) | — | — | (26,823 | ) | 66,131 | 19,371 | ||||||||||||||||||||||
Total | Ps | 632,871,206 | Ps . | — | Ps. | (35,156,674 | ) | Ps. | — | Ps. | (965,984 | ) | Ps . | (33,542,317 | ) | Ps. | 112,662,412 | Ps . | 677,800,611 | |||||||||||||
Net Cost | Ps . | 722,929,631 | Ps . | 231,539,820 | Ps . | (92,643,640 | ) | Ps. | 0 | Ps. | (1,966,088 | ) | Ps. | (16,000,632 | ) | Ps . | (112,662,412 | ) | Ps . | 731,196,679 | ||||||||||||
(1) | Construction in progress includes fixed and mobile network facilities as well as satellite developments and fiber optic which is in the process of being installed. |
(2) | This transfer relates to the accumulated depreciation as at the revaluation date that was eliminated against the gross carrying amount of the revalued asset. |
(3) | Includes disposals related to the sale of TracFone. See Note 2Ac. |
2017 | 2018 | |||||||
Assets under capital leases | Ps. 8,116,532 | Ps.7,770,681 | ||||||
Accumulated depreciation | (3,475,014 | ) | (3,530,241 | ) | ||||
|
|
|
| |||||
Ps. 4,641,518 | Ps. 4,240,440 | |||||||
|
|
|
|
c) At
d)Note 19.
2020 | 2021 | |||||||
Book value as of December 31, (cost model) | Ps. | 615,777,003 | Ps. | 633,024,004 | ||||
Supplement for change in accounting policy | 107,152,628 | 98,172,675 | ||||||
Book value and fair value as of December 31, (revaluation model) | Ps. | 722,929,631 | Ps. | 731,196,679 | ||||
Year ended December 31, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
Amount invested in the acquisition of qualifying assets | Ps. 52,974,400 | Ps. 49,642,370 | Ps. 45,456,630 | |||||||||
Capitalized interest | 2,861,307 | 2,875,034 | 2,020,288 | |||||||||
Capitalization rate | 5.4% | 5.8% | 4.4% |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Amount invested in the acquisition of qualifying assets | Ps. 50,783,957 | Ps. 46,528,232 | Ps. 38,573,605 | |||||||||
Capitalized interest | 2,233,358 | 1,771,613 | 1,527,259 | |||||||||
Capitalization rate | 4.4 | % | 3.8 | % | 4.0 | % |
e) On October 20, 2017, our subsidiary Star One signed a contract with SSL — Space Systems Loral for construction of the Star One D2 satellite, which will be equipped with transponders 52 in the C and Ku bands, 20 Gbps of capacity in Band Ka and a certain capacity inX-band. The cost of this Project is estimated to be approximately Ps. 6,391,104 (US$ 323,000) and the launch will take place at the end of 2019. At December 31, 2018 and 2017 the amount recorded in Construction in progress amounts to Ps. 2,896,399 (R$551,528) and Ps. 916,240 (R$153,179), respectively.
For the year ended December 31, 2016 | ||||||||||||||||||||||||||||
Balance at beginning of year | Acquisitions | Acquisitions in business combinations | Disposals and other | Amortization of the year | Effect of translation of foreign subsidiaries | Balance at end of year | ||||||||||||||||||||||
Licenses and rights of use | Ps. | 175,295,775 | Ps. | 9,129,949 | Ps. | 360,144 | Ps. | 1,269,478 | Ps. | — | Ps. | 56,684,016 | Ps. | 242,739,362 | ||||||||||||||
Accumulated amortization | (84,846,524 | ) | — | — | — | (10,255,271 | ) | (31,606,303 | ) | (126,708,098 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 90,449,251 | 9,129,949 | 360,144 | 1,269,478 | (10,255,271 | ) | 25,077,713 | 116,031,264 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Trademarks | 22,824,013 | — | 101,655 | (13,820 | ) | — | 4,877,302 | 27,789,150 | ||||||||||||||||||||
Accumulated amortization | (11,523,707 | ) | — | — | — | (330,576 | ) | (3,367,974 | ) | (15,222,257 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 11,300,306 | — | 101,655 | (13,820 | ) | (330,576 | ) | 1,509,328 | 12,566,893 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Customer relationships | 18,394,407 | — | 1,904,503 | — | — | 5,946,598 | 26,245,508 | |||||||||||||||||||||
Accumulated amortization | (3,962,875 | ) | — | — | — | (3,231,518 | ) | (5,240,681 | ) | (12,435,074 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 14,431,532 | — | 1,904,503 | — | (3,231,518 | ) | 705,917 | 13,810,434 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Software licenses | 8,782,768 | 3,854,066 | 26,871 | (829,680 | ) | — | 1,040,771 | 12,874,796 | ||||||||||||||||||||
Accumulated amortization | (2,424,598 | ) | (41,185 | ) | (8,367 | ) | 829,680 | (3,469,461 | ) | (9,809 | ) | (5,123,740 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 6,358,170 | 3,812,881 | 18,504 | — | (3,469,461 | ) | 1,030,962 | 7,751,056 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Content rights | 2,634,527 | 2,242,556 | — | (217,057 | ) | — | 216,272 | 4,876,298 | ||||||||||||||||||||
Accumulated amortization | (428,746 | ) | — | — | (1,612 | ) | (2,236,141 | ) | — | (2,666,499 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 2,205,781 | 2,242,556 | — | (218,669 | ) | (2,236,141 | ) | 216,272 | 2,209,799 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total of intangibles, net | Ps. | 124,745,040 | Ps. | 15,185,386 | Ps. | 2,384,806 | Ps. | 1,036,989 | Ps. | (19,522,967 | ) | Ps. | 28,540,192 | Ps. | 152,369,446 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Goodwill (Note 12) | Ps. | 137,113,716 | Ps. | — | Ps. | 3,953,023 | Ps. | (356,832 | ) | Ps. | — | Ps. | 11,922,728 | Ps. | 152,632,635 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2017 | ||||||||||||||||||||||||||||
Balance at beginning of year | Acquisitions | Acquisitions in business combinations | Disposals and other | Amortization of the year | Effect of translation of foreign subsidiaries | Balance at end of year | ||||||||||||||||||||||
Licenses and rights of use | Ps. | 242,739,362 | Ps. | 12,347,051 | Ps. | 53,923 | Ps. | (1,037,458 | ) | Ps. | — | Ps. | (6,689,054 | ) | Ps. | 247,413,824 | ||||||||||||
Accumulated amortization | (126,708,098 | ) | — | — | 244,564 | (11,879,489 | ) | 4,233,585 | (134,109,438 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 116,031,264 | 12,347,051 | 53,923 | (792,894 | ) | (11,879,489 | ) | (2,455,469 | ) | 113,304,386 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Trademarks | 27,789,150 | 127,823 | 82,868 | (29,804 | ) | — | 809,175 | 28,779,212 | ||||||||||||||||||||
Accumulated amortization | (15,222,257 | ) | — | — | 34,464 | (3,179,461 | ) | (474,151 | ) | (18,841,405 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 12,566,893 | 127,823 | 82,868 | 4,660 | (3,179,461 | ) | 335,024 | 9,937,807 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Customer relationships | 26,245,508 | — | 512,667 | (882,338 | ) | — | 1,109,877 | 26,985,714 | ||||||||||||||||||||
Accumulated amortization | (12,435,074 | ) | — | — | 882,338 | (3,769,777 | ) | (806,982 | ) | (16,129,495 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 13,810,434 | — | 512,667 | — | (3,769,777 | ) | 302,895 | 10,856,219 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Software licenses | 12,874,796 | 3,351,200 | — | (1,698,118 | ) | — | 527,720 | 15,055,598 | ||||||||||||||||||||
Accumulated amortization | (5,123,740 | ) | — | — | 1,212,669 | (3,699,363 | ) | (204,727 | ) | (7,815,161 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 7,751,056 | 3,351,200 | — | (485,449 | ) | (3,699,363 | ) | 322,993 | 7,240,437 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Content rights | 4,876,298 | 2,099,084 | — | (63,137 | ) | — | (194,803 | ) | 6,717,442 | |||||||||||||||||||
Accumulated amortization | (2,666,499 | ) | — | — | (195,658 | ) | (1,820,092 | ) | 165,584 | (4,516,665 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 2,209,799 | 2,099,084 | — | (258,795 | ) | (1,820,092 | ) | (29,219 | ) | 2,200,777 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total of intangibles, net | Ps. | 152,369,446 | Ps. | 17,925,158 | Ps. | 649,458 | Ps. | (1,532,478 | ) | Ps. | (24,348,182 | ) | Ps. | (1,523,776 | ) | Ps. | 143,539,626 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Goodwill (Note 12) | Ps. | 152,632,635 | Ps. | — | Ps. | 951,348 | Ps. | (134,525 | ) | Ps. | — | Ps. | (1,986,226 | ) | Ps. | 151,463,232 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2018 | ||||||||||||||||||||||||||||
Balance at beginning of year | Acquisitions | Acquisitions in business combinations | Disposals and other | Amortization of the year | Effect of translation of foreign subsidiaries and Hyperinflation adjustment | Balance at end of year | ||||||||||||||||||||||
Licenses and rights of use | Ps. | 247,413,824 | Ps. | 4,227,244 | — | Ps. | 1,508,274 | — | Ps. | (19,670,368 | ) | Ps. | 233,478,974 | |||||||||||||||
Accumulated amortization | (134,109,438 | ) | — | — | (1,005,877 | ) | (11,347,089 | ) | 16,281,825 | (130,180,579 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 113,304,386 | 4,227,244 | 502,397 | (11,347,089 | ) | (3,388,543 | ) | 103,298,395 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Trademarks | 28,779,212 | 159,958 | 6,631 | — | (738,635 | ) | 28,207,166 | |||||||||||||||||||||
Accumulated amortization | (18,841,405 | ) | — | — | — | (4,973,602 | ) | 275,046 | (23,539,961 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 9,937,807 | 159,958 | 6,631 | — | (4,973,602 | ) | (463,589 | ) | 4,667,205 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Customer relationships | 26,985,714 | 74,637 | 15,556 | — | (1,532,839 | ) | 25,543,068 | |||||||||||||||||||||
Accumulated amortization | (16,129,495 | ) | — | (3,754,312 | ) | 1,122,270 | (18,761,537 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 10,856,219 | 74,637 | 15,556 | — | (3,754,312 | ) | (410,569 | ) | 6,781,531 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Software licenses | 15,055,598 | 2,004,550 | 3,006 | (905,610 | ) | — | (1,848,286 | ) | 14,309,258 | |||||||||||||||||||
Accumulated amortization | (7,815,161 | ) | — | 2,677,848 | (3,491,629 | ) | 924,139 | (7,704,803 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 7,240,437 | 2,004,550 | 3,006 | 1,772,238 | (3,491,629 | ) | (924,147 | ) | 6,604,455 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Content rights | 6,717,442 | 850,779 | — | — | — | (18,512 | ) | 7,549,709 | ||||||||||||||||||||
Accumulated amortization | (4,516,665 | ) | — | — | — | (2,231,978 | ) | (14,949 | ) | (6,763,592 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net | 2,200,777 | 850,779 | — | — | (2,231,978 | ) | (33,461 | ) | 786,117 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total of intangibles, net | Ps. | 143,539,626 | Ps. | 7,317,168 | Ps. | 25,193 | Ps. | 2,274,635 | Ps. | (25,798,610 | ) | Ps. | (5,220,309 | ) | Ps. | 122,137,703 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Goodwill | Ps. | 151,463,232 | Ps. | 1,455 | Ps. | 333,284 | Ps. | (1,094,861 | ) | — | Ps. | (5,136,613 | ) | Ps. | 145,566,497 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2019 | ||||||||||||||||||||||||||||
Balance at beginning of year | Acquisitions | Acquisitions in business combinations | Disposals and other | Amortization of the year | Effect of translation of foreign subsidiaries and Hyperinflation adjustment | Balance at end of year | ||||||||||||||||||||||
Licenses and rights of use | Ps. | 233,478,974 | Ps. | 13,206,877 | Ps. | 7,844,339 | Ps. | 7,286,114 | Ps. | — | Ps. | (15,715,442 | ) | Ps. | 246,100,862 | |||||||||||||
Accumulated amortization | (130,180,579 | ) | — | — | (2,391,624 | ) | (11,577,160 | ) | 9,481,480 | (134,667,883 | ) | |||||||||||||||||
Net | 103,298,395 | 13,206,877 | 7,844,339 | 4,894,490 | (11,577,160 | ) | (6,233,962 | ) | 111,432,979 | |||||||||||||||||||
Trademarks | 28,207,166 | 53,467 | — | (6,012 | ) | — | (835,613 | ) | 27,419,008 | |||||||||||||||||||
Accumulated amortization | (23,539,961 | ) | 0 | — | 0 | (1,008,483 | ) | 618,145 | (23,930,299 | ) | ||||||||||||||||||
Net | 4,667,205 | 53,467 | — | (6,012 | ) | (1,008,483 | ) | (217,468 | ) | 3,488,709 | ||||||||||||||||||
Customer relationships | 25,543,068 | 20,248 | — | 5,507 | — | (2,693,812 | ) | 22,875,011 | ||||||||||||||||||||
Accumulated amortization | (18,761,537 | ) | 0 | — | 0 | (3,371,924 | ) | 2,357,831 | (19,775,630 | ) | ||||||||||||||||||
Net | 6,781,531 | 20,248 | — | 5,507 | (3,371,924 | ) | (335,981 | ) | 3,099,381 | |||||||||||||||||||
Software licenses | 14,309,258 | 2,729,480 | — | (949,858 | ) | 0 | (2,984,770 | ) | 13,104,110 | |||||||||||||||||||
Accumulated amortization | (7,704,803 | ) | 0 | — | (1 | ) | (2,479,088 | ) | 2,183,149 | (8,000,743 | ) | |||||||||||||||||
Net | 6,604,455 | 2,729,480 | — | (949,859 | ) | (2,479,088 | ) | (801,621 | ) | 5,103,367 | ||||||||||||||||||
Content rights | 7,549,709 | 1,427,694 | — | 1,638,007 | — | (455,228 | ) | 10,160,182 | ||||||||||||||||||||
Accumulated amortization | (6,763,592 | ) | — | — | (8,720 | ) | (1,772,779 | ) | 429,862 | (8,115,229 | ) | |||||||||||||||||
Net | 786,117 | 1,427,694 | — | 1,629,287 | (1,772,779 | ) | (25,366 | ) | 2,044,953 | |||||||||||||||||||
Total of intangibles, net | Ps. | 122,137,703 | Ps. | 17,437,766 | Ps. | 7,844,339 | Ps. | 5,573,413 | Ps. | (20,209,434 | ) | Ps. | (7,614,398 | ) | Ps. | 125,169,389 | ||||||||||||
Goodwill | Ps. | 145,566,497 | Ps . | — | Ps. | 10,869,571 | Ps. | (843,005 | ) | — | Ps. | (2,693,262 | ) | Ps. | 152,899,801 | |||||||||||||
For the year ended December 31, 2020 | ||||||||||||||||||||||||||||
Balance at beginning of year | Acquisitions | Acquisitions in business combinations | Disposals and other | Amortization of the year | Effect of translation of foreign subsidiaries and Hyperinflation adjustment | Balance at end of year | ||||||||||||||||||||||
Licenses and rights of use | Ps. | 246,100,862 | Ps. | 15,079,714 | Ps. | 4,436,313 | Ps. | 1,502,981 | Ps. | — | Ps. | (14,029,709 | ) | Ps. | 253,090,161 | |||||||||||||
Accumulated amortization | (134,667,883 | ) | — | — | 105,892 | (14,274,497 | ) | 14,227,424 | (134,609,064 | ) | ||||||||||||||||||
Net | 111,432,979 | 15,079,714 | 4,436,313 | 1,608,873 | (14,274,497 | ) | 197,715 | 118,481,097 | ||||||||||||||||||||
Trademarks | 27,419,008 | 162,309 | 12,110 | 4,000 | — | 1,534,938 | 29,132,365 | |||||||||||||||||||||
Accumulated amortization | (23,930,299 | ) | — | — | (4,276 | ) | (300,727 | ) | (1,119,645 | ) | (25,354,947 | ) | ||||||||||||||||
Net | 3,488,709 | 162,309 | 12,110 | (276 | ) | (300,727 | ) | 415,293 | 3,777,418 | |||||||||||||||||||
Customer relationships | 22,875,011 | 1,935 | 2,689,718 | (5,763 | ) | — | 4,018,365 | 29,579,266 | ||||||||||||||||||||
Accumulated amortization | (19,775,630 | ) | — | — | 855 | (1,654,237 | ) | (3,996,593 | ) | (25,425,605 | ) | |||||||||||||||||
Net | 3,099,381 | 1,935 | 2,689,718 | (4,908 | ) | (1,654,237 | ) | 21,772 | 4,153,661 | |||||||||||||||||||
Software licenses | 13,104,110 | 2,445,784 | 36 | (2,485,429 | ) | — | 4,236,645 | 17,301,146 | ||||||||||||||||||||
Accumulated amortization | (8,000,743 | ) | — | — | 2,013,617 | (2,667,870 | ) | (3,578,452 | ) | (12,233,448 | ) | |||||||||||||||||
Net | 5,103,367 | 2,445,784 | 36 | (471,812 | ) | (2,667,870 | ) | 658,193 | 5,067,698 | |||||||||||||||||||
Content rights | 10,160,182 | 1,570,415 | — | (313,942 | ) | — | 619,657 | 12,036,312 | ||||||||||||||||||||
Accumulated amortization | (8,115,229 | ) | — | — | — | (1,440,749 | ) | (503,241 | ) | (10,059,219 | ) | |||||||||||||||||
Net | 2,044,953 | 1,570,415 | — | (313,942 | ) | (1,440,749 | ) | 116,416 | 1,977,093 | |||||||||||||||||||
Total of intangibles, net | Ps. | 125,169,389 | Ps. | 19,260,157 | Ps. | 7,138,177 | Ps. | 817,935 | Ps. | (20,338,080 | ) | Ps. | 1,409,389 | Ps. | 133,456,967 | |||||||||||||
Goodwill | Ps. | 152,899,801 | Ps. | — | Ps. | (7,014,120 | ) | Ps. | (537,343 | ) | Ps. | — | Ps. | (2,295,479 | ) | Ps. | 143,052,859 | |||||||||||
For the year ended December 31, 2021 | ||||||||||||||||||||||||
Balance at beginning of year | Acquisitions | Disposals and other | Amortization of the year | Effect of translation of foreign subsidiaries and Hyperinflation adjustment | Balance at end of year | |||||||||||||||||||
Licenses and rights of use | Ps. | 253,090,161 | Ps. | 24,406,905 | Ps. | (4,427,685 | ) | Ps. | — | Ps. | (7,011,691 | ) | Ps. | 266,057,690 | ||||||||||
Accumulated amortization | (134,609,064 | ) | — | 6,764,067 | (14,682,451 | ) | 6,737,503 | (135,789,945 | ) | |||||||||||||||
Net | 118,481,097 | 24,406,905 | 2,336,382 | (14,682,451 | ) | (274,188 | ) | 130,267,745 | ||||||||||||||||
Trademarks (1) | 29,132,365 | 75,100 | (1,129,666 | ) | — | (401,946 | ) | 27,675,853 | ||||||||||||||||
Accumulated amortization | (25,354,947 | ) | — | 802,717 | (140,205 | ) | 308,745 | (24,383,690 | ) | |||||||||||||||
Net | 3,777,418 | 75,100 | (326,949 | ) | (140,205 | ) | (93,201 | ) | 3,292,163 | |||||||||||||||
Customer relationships (1) | 29,579,266 | 229,936 | (4,133,408 | ) | — | (1,105,668 | ) | 24,570,126 | ||||||||||||||||
Accumulated amortization | (25,425,605 | ) | — | 3,830,742 | (707,500 | ) | 1,093,401 | (21,208,962 | ) | |||||||||||||||
Net | 4,153,661 | 229,936 | (302,666 | ) | (707,500 | ) | (12,267 | ) | 3,361,164 | |||||||||||||||
Software licenses | 17,301,146 | 2,660,330 | (3,484,755 | ) | — | (1,225,585 | ) | 15,251,136 | ||||||||||||||||
Accumulated amortization | (12,233,448 | ) | (626 | ) | 3,482,440 | (2,738,978 | ) | 1,052,938 | (10,437,674 | ) | ||||||||||||||
Net | 5,067,698 | 2,659,704 | (2,315 | ) | (2,738,978 | ) | (172,647 | ) | 4,813,462 | |||||||||||||||
Content rights | 12,036,312 | 818,436 | (281,747 | ) | — | 429,319 | 13,002,320 | |||||||||||||||||
Accumulated amortization | (10,059,219 | ) | — | (147,668 | ) | (899,666 | ) | (404,537 | ) | (11,511,090 | ) | |||||||||||||
Net | 1,977,093 | 818,436 | (429,415 | ) | (899,666 | ) | 24,782 | 1,491,230 | ||||||||||||||||
Total of intangibles, net | Ps. | 133,456,967 | Ps. | 28,190,081 | Ps. | 1,275,037 | Ps. | (19,168,800 | ) | Ps. | (527,521 | ) | Ps. | 143,225,764 | ||||||||||
Goodwill (1) | Ps. | 143,052,859 | Ps. | — | Ps. | (3,516,287 | ) | Ps. | — | Ps. | (2,958,378 | ) | Ps. | 136,578,194 | ||||||||||
(1) | Includes disposals related to the sale of TracFone. See Note 2Ac. |
2017 | 2018 | |||||||
Europe (7 countries) | Ps. 53,143,542 | Ps. 53,066,729 | ||||||
Brazil (Fixed, wireless and TV) | 24,708,740 | 21,388,124 | ||||||
Puerto Rico | 17,463,394 | 17,463,394 | ||||||
Dominican Republic | 14,186,723 | 14,186,723 | ||||||
Colombia | 13,981,033 | 12,770,381 | ||||||
México | 9,852,912 | 9,856,601 | ||||||
Peru | 3,958,110 | 3,086,981 | ||||||
Chile | 2,834,134 | 2,576,214 | ||||||
El Salvador | 2,510,577 | 2,510,577 | ||||||
Ecuador | 2,155,385 | 2,155,385 | ||||||
Other countries | 6,668,682 | 6,505,388 | ||||||
|
|
|
| |||||
Ps. 151,463,232 | Ps. 145,566,497 | |||||||
|
|
|
|
2020 | 2021 | |||||||
Europe | Ps . | Ps . | ||||||
Brazil | 18,730,686 | 18,017,916 | ||||||
Puerto Rico | 17,463,394 | 17,463,394 | ||||||
Dominican Republic | 14,186,723 | 14,186,723 | ||||||
Colombia | 12,253,743 | 11,685,585 | ||||||
México | 10,148,380 | 10,164,814 | ||||||
Peru | 2,710,979 | 2,532,770 | ||||||
Chile | 2,558,098 | 2,311,239 | ||||||
El Salvador | 2,499,544 | 2,510,595 | ||||||
United States (Tracfone) (3) | 3,362,900 | 0 | ||||||
Ecuador | 2,155,384 | 2,155,384 | ||||||
Guatemala | 2,301,533 | 1,947,203 | ||||||
Other countries | 1,293,356 | 1,295,381 | ||||||
Ps.143,052,859 | Ps.136,578,194 | |||||||
20162021:
ii) In February 2016, the Company through its subsidiary Radiomóvil Dipsa, S.A. de C.V. (Telcel), acquired through an auction a total of 20MHz in the national wideAWS-1 band and 40 MHz in theAWS-3 band. The concession expires in October 2030. The Company paid an amount of Ps. 2,098,060.
iii) In May 2016, Mtel, located in Bulgaria, acquired 2 x 5 MHz in the1,800-MHz spectrum for Ps. 135,441 (EUR 6,212). During 2016, Telekom Austria paid Ps. 410,713 (EUR 18,837) for the renewals referring to an obligation obtained from concessions granted in previous years.
iv) On May 26, 2016, the Company’s subsidiary in Peru acquired spectrum in a public auction of the 700 MHz band. The frequency band expires in 2036. The cost of the spectrum was Ps. 5,627,316 (PEN$. 1,002,523).
v) In July 2016, Ecuador Telecom acquired a license to operate TV in Ecuador for a period that ends in 2031. The amount paid was Ps. 27,700 (US$ 1,500).
2017 Acquisitions
i) In 2017,2019, Claro Brasil increased its licenses value by Ps. 3,592,034 due
ii) On February 24, 2017 Radiomóvil Dipsa renewed its 8.4 MHz national license by paying Ps. 917,431, and on July 14, 2017, it acquired 43 concession titles for frequencies of 2.5 GHzspectrum in the amount of Ps. 5,305,498.
iii)1900 MHz band.
2018
i.
ii.
2021:
2020
b) In May 2016, the Company acquired an additionalnon-controlling interest of 1.8% in Tracfone Wireless Inc. thereby obtaining 100% of its capital stock. The amount paid was Ps. 2,300,553 (US$ 124,673). This transaction was recorded as an equity transaction, and therefore, no gain or loss was recognized.
c) In May 2016, the Company through his subsidiary, América Móvil Perú, S.A.C. acquired 100% of the capital stock of Olo del Perú S.A.C. (“Olo”), and TVS Wireless S.A.C. (“TVS”). Olo and TVS provide telecommunications services throughout Peru and hold radio spectrum in the 2.5 GHz band. The transaction was conditioned to the obtention of the approval of the Peruvian regulator, such approval was finally obtained in December 2016. The amount of the transaction was Ps. 1,854,379 (US$. 102,343) net of acquired cash. In May 2016 the Company paid Ps. 152,214 (US$ 7,554) and in January 2017, after the approval, Ps. 2,079,095 (US$ 94,789). The goodwill recognized amounted to Ps. 1,454,333 in December 2016, Ps. 188,452 in December 2017 and Ps. 329,366 in December 2018.
d) Based on a 2014 shareholder agreement, the Company agreed to ensure a minimal free float of Telekom Austria shares in the market. Consequently, in July 2016, the Company sold shares corresponding to 7.8% of the outstanding common stock of Telekom Austria AG. This sale reduced the overall shareholding of América Movil in Telekom Austria AG from 59.70% to 51.89%. Additionally, in August 2016, the Company sold 0.89% of the outstanding common stock of Telekom Austria AG. Following the successful completion of this transaction, AMX’s stake was reduced to 51.0%. The amount of cash received for these transactions was Ps. 6,323,336. As América Móvil still retains control over Telekom Austria AG, these transactions were recorded as equity transactions.
e) In September 2016, the Company, through his subsidiary Tracfone, acquired certain assets ofT-Mobile, that represented a business, which included the brands known as Walmart Mobile and Go Smart. These assets were acquired in order to expand the Company’s distribution channels, add an incremental revenue stream, and assist in the growth of subscribers. There was no cash exchanged in the acquisition. The goodwill recognized amounted to Ps. 1,251,464.
f) In November 2016, Telekom Austria Group acquired 100% of the Belarusian fixed-line operator Atlant Telecom (Atlant) and its subsidiary TeleSet. After the acquisition, Atlant was renamed velcom ACS. Both
companies are the leading privately owned fixed-line operators in Belarus offering fixed-line broadband, IPTV and cable TV as well as a video and audio library. The acquisition of Atlant and TeleSet is a further step in Telekom Austria Group’s convergence strategy. The final allocation of consideration transferred will be determined once all necessary information regarding identifiable assets is available. The amount paid for the business acquisition was Ps. 582,931, net of acquired cash. The goodwill recognized amounted to Ps. 200,973.
Acquisitions 2017
a) In February 2017, Telekom Austria Group acquired 97.68% of Metronet telekomunikacije through its Croatian subsidiary Vipnet. Metronet is one of the leading alternative fixed business solutions providers in Croatia. The fair values of the assets acquired and liabilities assumed at the acquisition date are reported in the Europe segment. The amount paid for the business acquisition was Ps. 1,550,534, net of acquired cash. The goodwill recognized amounted to Ps. 502,574.
b) During 2017,2020, the Company acquired through its subsidiaries, other entities for which ifit paid Ps. 3,249,164,
c)
b) 1,104,662.
December 31, | ||||||||
2017 | 2018 | |||||||
Assets: | ||||||||
Current assets | Ps. | 29,128,486 | Ps. | 29,854,542 | ||||
Non-current assets | 150,225,260 | 131,407,408 | ||||||
|
|
|
| |||||
Total assets | Ps. | 179,353,746 | Ps. | 161,261,950 | ||||
|
|
|
| |||||
Liabilities and equity: | ||||||||
Current liabilities | Ps. | 30,192,384 | Ps. | 36,822,034 | ||||
Non-current liabilities | 89,048,150 | 80,023,800 | ||||||
|
|
|
| |||||
Total liabilities | 119,240,534 | 116,845,834 | ||||||
Equity attributable to equity holders of the parent | 25,808,318 | 22,621,625 | ||||||
Non-controlling interest(1) | 34,304,894 | 21,794,491 | ||||||
|
|
|
| |||||
Total equity | Ps. | 60,113,212 | Ps. | 44,416,116 | ||||
|
|
|
| |||||
Total liabilities and equity | Ps. | 179,353,746 | Ps. | 161,261,950 | ||||
|
|
|
|
|
December 31, | ||||||||
2020 | 2021 | |||||||
Assets: | ||||||||
Current assets | Ps . | 32,775,046 | Ps. | 39,781,192 | ||||
Non-current assets | 150,747,947 | 142,407,870 | ||||||
Total assets | Ps. | 183,522,993 | Ps. | 182,189,062 | ||||
Liabilities and equity: | ||||||||
Current liabilities | Ps. | 49,942,415 | Ps. | 68,795,807 | ||||
Non-current liabilities | 82,293,652 | 58,312,238 | ||||||
Total liabilities | 132,236,067 | 127,108,045 | ||||||
Equity attributable to equity holders of the parent | 26,129,649 | 28,066,198 | ||||||
Non-controlling interest | 25,157,277 | 27,014,819 | ||||||
Total equity | Ps. | 51,286,926 | Ps. | 55,081,017 | ||||
Total liabilities and equity | Ps. | 183,522,993 | Ps. | 182,189,062 | ||||
For the year ended December 31, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
Operating revenues | Ps. | 85,185,177 | Ps. | 93,644,173 | Ps. | 100,716,444 | ||||||
Operating costs and expenses | 81,590,233 | 86,920,692 | 95,984,880 | |||||||||
|
|
|
|
|
| |||||||
Operating income | Ps. | 3,594,944 | Ps. | 6,723,481 | Ps. | 4,731,564 | ||||||
|
|
|
|
|
| |||||||
Net income | Ps. | 7,065,770 | Ps. | 5,656,132 | Ps. | 3,809,694 | ||||||
|
|
|
|
|
| |||||||
Total comprehensive income | Ps. | 8,450,837 | Ps. | 7,737,797 | Ps. | 5,047,838 | ||||||
|
|
|
|
|
| |||||||
Net income attributable to: | ||||||||||||
Equity holders of the parent | Ps. | 3,241,556 | Ps. | 2,884,627 | Ps. | 1,942,944 | ||||||
Non-controlling interest | 3,824,214 | 2,771,505 | 1,866,750 | |||||||||
|
|
|
|
|
| |||||||
Ps. | 7,065,770 | Ps. | 5,656,132 | Ps. | 3,809,694 | |||||||
|
|
|
|
|
| |||||||
Comprehensive income attributable to: | ||||||||||||
Equity holders of the parent | Ps. | 4,311,801 | Ps. | 3,978,263 | Ps. | 2,574,397 | ||||||
Non-controlling interest | 4,139,036 | 3,759,534 | 2,473,441 | |||||||||
|
|
|
|
|
| |||||||
Ps. | 8,450,837 | Ps. | 7,737,797 | Ps. | 5,047,838 | |||||||
|
|
|
|
|
|
For the year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Operating revenues | Ps. | 98,420,289 | Ps. | 111,472,191 | Ps. | 113,838,487 | ||||||
Operating costs and expenses | 89,732,428 | 98,312,325 | 98,346,896 | |||||||||
Operating income | Ps. | 8,687,861 | Ps. | 13,159,866 | Ps. | 15,491,591 | ||||||
Net income | Ps. | 5,051,145 | Ps. | 7,787,388 | Ps. | 9,104,962 | ||||||
Total comprehensive income | Ps. | 1,466,783 | Ps. | 12,103,406 | Ps. | 7,790,499 | ||||||
Net income attributable to: | ||||||||||||
Equity holders of the parent | Ps. | 2,565,733 | Ps. | 3,986,412 | Ps. | 4,629,816 | ||||||
Non-controlling interest | 2,485,412 | 3,800,976 | 4,475,146 | |||||||||
Ps. | 5,051,145 | Ps. | 7,787,388 | Ps. | 9,104,962 | |||||||
Comprehensive income attributable to: | ||||||||||||
Equity holders of the parent | Ps. | 748,059 | Ps. | 6,172,737 | Ps. | 3,973,154 | ||||||
Non-controlling interest | 718,724 | 5,930,669 | 3,817,345 | |||||||||
Ps. | 1,466,783 | Ps. | 12,103,406 | Ps. | 7,790,499 | |||||||
|
2016 | 2017 | 2018 | ||||||||||
In Mexico: | ||||||||||||
Current year income tax | Ps. | 14,316,005 | Ps. | 16,568,274 | Ps. | 28,572,414 | ||||||
Deferred income tax | (12,086,232 | ) | 2,582,287 | (2,688,727 | ) | |||||||
Foreign: | ||||||||||||
Current year income tax | 15,367,903 | 13,524,729 | 19,898,728 | |||||||||
Deferred income tax | (6,198,820 | ) | (7,733,779 | ) | 694,664 | |||||||
|
|
|
|
|
| |||||||
Ps. | 11,398,856 | Ps. | 24,941,511 | Ps. | 46,477,079 | |||||||
|
|
|
|
|
|
2019 | 2020 | 2021 | ||||||||||
In Mexico: | ||||||||||||
Current year income tax | Ps. | 26,295,431 | Ps. | 13,407,948 | Ps. | 24,355,240 | ||||||
Deferred income tax | 208,658 | (9,334,246 | ) | (5,079,397 | ) | |||||||
Foreign: | ||||||||||||
Current year income tax | 19,830,227 | 12,319,690 | 23,412,990 | |||||||||
Deferred income tax | 3,579,739 | (2,884,122 | ) | (14,544,064 | ) | |||||||
Total Income tax | Ps. | 49,914,055 | Ps. | 13,509,270 | Ps. | 28,144,769 | ||||||
Income Tax attributable to a discontinued operation | ||||||||||||
Income tax discontinued operations in Mexico (1) | 0 | 0 | (26,294,422 | ) | ||||||||
Income tax discontinued operations Foreign (1) | (1,119,479 | ) | (2,856,882 | ) | (2,571,541 | ) |
(1) | Includes effects related to the sale of Tracfone. See Note 2Ac. |
For the years ended December 31, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
Remeasurement of defined benefit plans | Ps. | (7,734,732 | ) | Ps. | 3,032,403 | Ps. | 408,735 | |||||
Effect of financial instruments acquired for hedging purposes | (21,046 | ) | (5,337 | ) | ||||||||
Equity investments at fair value | 2,858,452 | (266,753 | ) | 1,613,667 | ||||||||
Other | 136,879 | — | (8,922 | ) | ||||||||
|
|
|
|
|
| |||||||
Deferred tax benefit (expense) recognized in OCI | Ps. | (4,760,447 | ) | Ps. | 2,760,313 | Ps. | 2,013,480 | |||||
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Remeasurement of defined benefit plans | Ps. | 9,217,320 | Ps. | 4,151,600 | Ps. | (4,760,089 | ) | |||||
Equity investments at fair value | (378,606 | ) | (665,814 | ) | 583,892 | |||||||
Other | 0 | (35,670 | ) | 0 | ||||||||
Revaluation assets | — | (29,922,597 | ) | 0 | ||||||||
Deferred tax benefit recognized in OCI | Ps. | 8,838,714 | Ps. | (26,472,481 | ) | Ps. | (4,176,197 | ) | ||||
Year ended December 31, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
Statutory income tax rate in Mexico | 30.0% | 30.0% | 30.0% | |||||||||
Impact ofnon-deductible andnon-taxable items: | ||||||||||||
Tax inflation effects | 15.9% | 17.8% | 7.3% | |||||||||
Derivatives | 8.0% | 1.0% | 0.4% | |||||||||
Employee benefits | 4.4% | 2.2% | 1.3% | |||||||||
Other | 9.8% | 2.6% | 6.3% | |||||||||
|
|
|
|
|
| |||||||
Effective tax rate on Mexican operations | 68.1% | 53.6% | 45.3% | |||||||||
Use of unrecognized tax credits in Brazil | (0.6% | ) | (0.4% | ) | — | |||||||
Equity interest in net loss of associated companies | (0.2% | ) | — | — | ||||||||
Dividends received from associates | (7.9% | ) | (1.2% | ) | (0.8% | ) | ||||||
Foreign subsidiaries and othernon-deductible items, net | (10.8% | ) | (8.3% | ) | 1.5% | |||||||
|
|
|
|
|
| |||||||
Effective tax rate | 48.6% | 43.7% | 46.0% | |||||||||
|
|
|
|
|
|
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Statutory income tax rate in Mexico | 30.0 | % | 30.0 | % | 30.0 | % | ||||||
Impact of non-deductible and non-taxable items: | ||||||||||||
Tax inflation effects | 3.8 | % | 8.6 | % | 7.9 | % | ||||||
Derivatives | (0.1 | %) | (1.0 | %) | (0.9 | %) | ||||||
Employee benefits | 2.0 | % | 4.2 | % | 2.6 | % | ||||||
Other | 2.0 | % | (3.4 | %) | (2.9 | %) | ||||||
Effective tax rate on Mexican operations | 37.7 | % | 38.4 | % | 36.7 | % | ||||||
Tax recoveries in Brazil | — | (13.2 | %) | (10.8 | %) | |||||||
Dividends received from associates Equity | (0.5 | %) | (1.3 | %) | (0.7 | %) | ||||||
Foreign subsidiaries and other non-deductible items, net | 8.0 | % | 4.5 | % | 2.2 | % | ||||||
Effective tax rate from continuing operations | 45.2 | % | 28.4 | % | 27.4 | % | ||||||
Effective tax rate from discontinued operations | 10.2 | % | 14.4 | % | 19.2 | % |
Consolidated statements of financial position | Consolidated statements of comprehensive income | |||||||||||||||||||
2017 | 2018 | 2016 | 2017 | 2018 | ||||||||||||||||
Provisions | Ps.26,268,666 | Ps.20,781,421 | Ps.1,622,132 | Ps.1,579,604 | Ps.1,841,705 | |||||||||||||||
Deferred revenues | 7,461,802 | 6,866,120 | (12,128 | ) | (965,010 | ) | 3,632,051 | |||||||||||||
Tax losses carry forward | 38,332,408 | 27,881,491 | 12,706,245 | (323,506 | ) | (5,833,660 | ) | |||||||||||||
Property, plant and equipment (1) | (9,929,129 | ) | (11,756,590 | ) | 2,445,783 | 1,974,753 | 453,493 | |||||||||||||
Inventories | 2,003,049 | 2,106,976 | (229,571 | ) | 519,046 | 81,270 | ||||||||||||||
Licenses and rights of use (1) | (2,455,877 | ) | (3,896,788 | ) | 54,182 | 348,201 | 961,402 | |||||||||||||
Employee benefits | 33,253,071 | 33,673,874 | 3,616,952 | 1,225,310 | 1,128,209 | |||||||||||||||
Other | 9,639,995 | 10,956,823 | (1,918,543 | ) | 793,094 | (270,407 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net deferred tax assets | Ps.104,573,985 | Ps.86,613,327 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
Deferred tax expense in net profit for the year |
| Ps.18,285,052 | Ps.5,151,492 | Ps.1,994,063 | ||||||||||||||||
|
|
|
|
|
|
Consolidated statements of financial position | Consolidated statements of net income | |||||||||||||||||||
2020 | 2021 | 2019 | 2020 | 2021 | ||||||||||||||||
Provisions | Ps. | 19,312,081 | Ps. | 18,038,607 | Ps. | 318,843 | Ps. | 3,887,471 | Ps. | 2,324,227 | ||||||||||
Deferred revenues | 6,748,101 | 9,041,137 | (1,077,259 | ) | 897,762 | 2,202,413 | ||||||||||||||
Tax losses carry forward | 25,121,933 | 33,954,926 | (9,873 | ) | 2,236,244 | 10,352,978 | ||||||||||||||
Property, plant and equipment (1) | (39,459,549 | ) | (33,445,815 | ) | (1,067,307 | ) | 3,990,750 | 9,246,429 | ||||||||||||
Inventories | (537,404 | ) | 135,658 | (55,380 | ) | (2,394,485 | ) | 814,626 | ||||||||||||
Licenses and rights of use (1) | (5,177,924 | ) | (3,668,389 | ) | 432,403 | 344,729 | (151,013 | ) | ||||||||||||
Employee benefits | 45,467,827 | 40,246,031 | (1,019,042 | ) | 422,473 | (354,803 | ) | |||||||||||||
Other | 14,828,012 | 13,520,684 | (1,310,782 | ) | 2,833,424 | (4,811,396 | ) | |||||||||||||
Net deferred tax assets | Ps. | 66,303,077 | Ps. | 77,822,839 | ||||||||||||||||
Deferred tax expense in net profit for the year | Ps. | (3,788,397 | ) | Ps. | 12,218,368 | Ps. | 19,623,461 | |||||||||||||
Deferred tax discontinued operations | (105,986 | ) | 73,646 | 143,482 | ||||||||||||||||
(1) | As of December 31, |
2016 | 2017 | 2018 | ||||||||||
Opening balance as of January 1, | Ps. | 69,817,147 | Ps. | 98,589,818 | Ps. | 104,573,985 | ||||||
Deferred tax benefit | 18,285,052 | 5,151,492 | 1,994,063 | |||||||||
Translation effect | 15,273,228 | (1,687,276 | ) | (8,854,010 | ) | |||||||
Deferred tax benefit (expense) recognized in OCI | (4,760,447 | ) | 2,760,313 | 2,013,480 | ||||||||
Deferred taxes acquired in business combinations | (25,162 | ) | (240,362 | ) | (25,827 | ) | ||||||
Hyperinflationary effect in Argentina | — | — | (4,907,151 | ) | ||||||||
Effect of adoption of IFRS 9 (Note 2ai) | — | — | 544,628 | |||||||||
Effect of adoption of IFRS 15 (Note 2ai) | — | — | (8,725,841 | ) | ||||||||
|
|
|
|
|
| |||||||
Closing balance as of December 31, | Ps. | 98,589,818 | Ps. | 104,573,985 | Ps. | 86,613,327 | ||||||
|
|
|
|
|
| |||||||
Presented in the consolidated statements of financial position as follows: | ||||||||||||
Deferred income tax assets | Ps. | 112,651,699 | Ps. | 116,571,349 | Ps. | 111,186,768 | ||||||
Deferred income tax liabilities | (14,061,881 | ) | (11,997,364 | ) | (24,573,441 | ) | ||||||
|
|
|
|
|
| |||||||
Ps. | 98,589,818 | Ps. | 104,573,985 | Ps. | 86,613,327 | |||||||
|
|
|
|
|
|
2019 | 2020 | 2021 | ||||||||||
Opening balance as of January 1, | Ps. | 86,613,327 | Ps. | 88,074,856 | Ps. | 66,303,077 | ||||||
Deferred tax benefit | (3,894,383 | ) | 12,292,014 | 19,623,461 | ||||||||
Translation effect | 2,047,915 | 375,105 | (727,099 | ) | ||||||||
Deferred tax benefit recognized in OCI | 8,838,714 | (26,472,481 | ) | (4,176,197 | ) | |||||||
Deferred taxes acquired in business combinations | (276,568 | ) | (2,580,552 | ) | 0 | |||||||
Hyperinflationary effect in Argentina | (5,254,149 | ) | (5,385,865 | ) | (3,540,962 | ) | ||||||
Disposals see to 2Ac | — | — | (1,203,203 | ) | ||||||||
Related discontinued operation | — | — | 1,543,762 | |||||||||
Closing balance as of December 31, | Ps. | 88,074,856 | Ps. | 66,303,077 | Ps. | 77,822,839 | ||||||
Presented in the consolidated statements of financial position as follows: | ||||||||||||
Deferred income tax assets | Ps. | 106,167,897 | Ps. | 115,370,240 | Ps. | 127,287,934 | ||||||
Deferred income tax liabilities | (18,093,041 | ) | (49,067,163 | ) | (49,465,095 | ) | ||||||
Ps. | 88,074,856 | Ps. | 66,303,077 | Ps. | 77,822,839 | |||||||
Corporate
Theprofit of this transaction was Ps. 93,968,555.
|
|
matters
The combined income before taxes and the combined provision for taxes of such subsidiaries in 2016, 2017 and 2018 are as follows:
2016 | 2017 | 2018 | ||||||||||
Combined income before taxes | Ps. | 45,697,258 | Ps. | 38,286,046 | Ps. | 66,314,883 | ||||||
Combined tax provision differences | Ps. | 9,169,083 | Ps. | 5,790,950 | Ps. | 20,593,392 |
|
registry of benefits related to tax losses credits in Brazil and Chile and Impairment related to subsidiaries in Europe.
Country | Balance of available tax loss carryforwards at December 31, 2018 | Tax loss carryforward benefit | ||||||
Brazil | Ps. 59,695,441 | Ps. 20,296,450 | ||||||
Austria | 20,128,833 | 5,032,208 | ||||||
Mexico | 6,043,603 | 1,813,081 | ||||||
Colombia | 2,239,486 | 739,030 | ||||||
Nicaragua | 2,403 | 722 | ||||||
|
|
|
| |||||
Total | Ps. 88,109,766 | Ps. 27,881,491 | ||||||
|
|
|
|
Country | Gross balance of available tax loss carryforwards at December 31, 2021 | Tax-effected loss carryforward benefit | ||||||
Brazil | Ps.71,910,653 | Ps.24,449,622 | ||||||
Mexico | 14,768,325 | 4,430,497 | ||||||
Europe | 2,031,465 | 507,866 | ||||||
United States | 432,301 | 112,398 | ||||||
Peru | 356,133 | 105,060 | ||||||
Chile | 16,109,194 | 4,349,483 | ||||||
Total | Ps.105,608,071 | Ps.33,954,926 | ||||||
biii) The Company has accumulated $ 6,043,603 of tax losses in Mexico. The Mexican Tax Law establishes an optional regime for group companies called: Of the Optional Regime for Groups of Companies. For these purposes, the integrating (controlling) company must own more than 80% of the shares with voting rights of the
integrated (controlled) companies. In general terms, the Integration regime allows to differ, for each of the companies that make up the group, and for up to three years, or sooner if certain assumptions are made, the whole of the ISR that results from considering the determination of the individual ISR to its charge is the effect derived from recognizing, indirectly, the tax losses incurred by the companies in the group for the year in question.
The company estimates that there is positive evidence that allows it to use these losses, these should be reduced to the extent that it is considered likely that there will be sufficient taxable profits to allow them to recover in full or in part, the losses will only be compensated when there is a right legally required and are approved by the tax authorities in Mexico.
|
At December 31, 2017 | (Thousands of Mexican pesos) | |||||||||||
Currency | Loan | Interest rate | Maturity | Total | ||||||||
Senior Notes | ||||||||||||
U.S. dollars | ||||||||||||
Fixed-rate Senior notes (i) | 5.000% | 2019 | Ps. | 14,840,025 | ||||||||
Fixed-rate Senior notes (i) | 5.500% | 2019 | 7,467,145 | |||||||||
Fixed-rate Senior notes (i) | 5.000% | 2020 | 42,043,077 | |||||||||
Fixed-rate Senior notes (i) | 3.125% | 2022 | 31,658,720 | |||||||||
Fixed-rate Senior notes (i) | 6.375% | 2035 | 19,417,282 | |||||||||
Fixed-rate Senior notes (i) | 6.125% | 2037 | 7,305,744 | |||||||||
Fixed-rate Senior notes (i) | 6.125% | 2040 | 39,573,400 | |||||||||
Fixed-rate Senior notes (i) | 4.375% | 2042 | 22,754,705 | |||||||||
|
| |||||||||||
Subtotal U.S. dollars | Ps. | 185,060,098 | ||||||||||
|
| |||||||||||
Mexican pesos | ||||||||||||
Domestic Senior notes (i) | 8.110% | 2018 | Ps. | 1,750,000 | ||||||||
Domestic Senior notes (i) | 8.270% | 2018 | 1,160,110 | |||||||||
Domestic Senior notes (i) | 8.600% | 2020 | 7,000,000 | |||||||||
Domestic Senior notes (i) | 0.000% | 2025 | 4,409,873 | |||||||||
Domestic Senior notes (i) | 8.360% | 2037 | 5,000,000 | |||||||||
Fixed-rate Senior notes (i) | 6.000% | 2019 | 10,000,000 | |||||||||
Fixed-rate Senior notes (i) | 6.450% | 2022 | 22,500,000 | |||||||||
Fixed-rate Senior notes (i) | 7.125% | 2024 | 11,000,000 | |||||||||
Fixed-rate Senior notes (i) | 8.460% | 2036 | 7,871,700 | |||||||||
|
| |||||||||||
Subtotal Mexican pesos | Ps. | 70,691,683 | ||||||||||
|
| |||||||||||
Euros | ||||||||||||
Fixed-rate Senior notes (i) | 1.000% | 2018 | Ps. | 14,252,360 | ||||||||
Fixed-rate Senior notes (i) | 4.125% | 2019 | 23,753,933 | |||||||||
Exchangeable Bonds (i) | 0.000% | 2020 | 67,504,878 | |||||||||
Fixed-rate Senior notes (i) | 3.000% | 2021 | 23,753,933 | |||||||||
Fixed-rate Senior notes (i) | 3.125% | 2021 | 18,727,775 | |||||||||
Fixed-rate Senior notes (i) | 4.000% | 2022 | 19,333,685 | |||||||||
Fixed-rate Senior notes (i) | 4.750% | 2022 | 17,815,450 | |||||||||
Fixed-rate Senior notes (i) | 3.500% | 2023 | 7,594,262 | |||||||||
Fixed-rate Senior notes (i) | 3.259% | 2023 | 17,815,450 | |||||||||
Fixed-rate Senior notes (i) | 1.500% | 2024 | 20,190,843 | |||||||||
Fixed-rate Senior notes (i) | 1.500% | 2026 | 17,815,450 | |||||||||
Fixed-rate Senior notes (i) | 2.125% | 2028 | 15,440,057 | |||||||||
|
| |||||||||||
Subtotal Euros | Ps. | 263,998,076 | ||||||||||
|
|
At December 31, 2017 | (Thousands of Mexican pesos) | |||||||||||
Currency | Loan | Interest rate | Maturity | Total | ||||||||
Pounds sterling | ||||||||||||
Fixed-rate Senior notes (i) | 5.000% | 2026 | Ps. | 13,368,884 | ||||||||
Fixed-rate Senior notes (i) | 5.750% | 2030 | 17,379,549 | |||||||||
Fixed-rate Senior notes (i) | 4.948% | 2033 | 8,021,330 | |||||||||
Fixed-rate Senior notes (i) | 4.375% | 2041 | 20,053,326 | |||||||||
|
| |||||||||||
Subtotal Pounds sterling | Ps. | 58,823,089 | ||||||||||
|
| |||||||||||
Swiss francs | ||||||||||||
Fixed-rate Senior notes (i) | 1.125% | 2018 | Ps. | 11,169,748 | ||||||||
|
| |||||||||||
Subtotal Swiss francs | Ps. | 11,169,748 | ||||||||||
|
| |||||||||||
Brazilian reais | ||||||||||||
Debenture (i) | 102.900% of CDI | 2020 | Ps. | 8,972,204 | ||||||||
Promissory Note (i) | 102.400% of CDI | 2019 | 5,981,469 | |||||||||
Debenture (i) | 103.900% of CDI | 2019 | 5,981,469 | |||||||||
|
| |||||||||||
Subtotal Brazilian reais | Ps. | 20,935,142 | ||||||||||
|
| |||||||||||
Other currencies | ||||||||||||
Japanese yen | ||||||||||||
Fixed-rate Senior notes (i) | 2.950% | 2039 | Ps. | 2,282,608 | ||||||||
|
| |||||||||||
Subtotal Japanese yen | Ps. | 2,282,608 | ||||||||||
|
| |||||||||||
Chilean pesos | ||||||||||||
Fixed-rate Senior notes (i) | 3.961% | 2035 | Ps. | 4,312,424 | ||||||||
|
| |||||||||||
Subtotal Chilean pesos | Ps. | 4,312,424 | ||||||||||
|
| |||||||||||
Subtotal other currencies | Ps. | 6,595,032 | ||||||||||
|
| |||||||||||
Hybrid Notes | ||||||||||||
Euros | ||||||||||||
Euro NC5 Series A Capital Securities (iii) | 5.125% | 2073 | Ps. | 21,378,540 | ||||||||
Euro NC10 Series B Capital Securities (iii) | 6.375% | 2073 | 13,064,663 | |||||||||
|
| |||||||||||
Subtotal Euros | Ps. | 34,443,203 | ||||||||||
|
| |||||||||||
Pounds sterling | ||||||||||||
GBP NC7 Capital Securities (iii) | 6.375% | 2073 | Ps. | 14,705,772 | ||||||||
|
| |||||||||||
Subtotal Pounds sterling | Ps. | 14,705,772 | ||||||||||
|
| |||||||||||
Subtotal Hybrid Notes | Ps. | 49,148,975 | ||||||||||
|
|
At December 31, 2020 | (Thousands of Mexican pesos) | |||||||||||||
Currency | Loan | Interest rate | Maturity | Total | ||||||||||
Senior Notes | ||||||||||||||
U.S. dollars | ||||||||||||||
Fixed-rate Senior notes (i) | 3.125% | 2022 | Ps. | 31,917,920 | ||||||||||
Fixed-rate Senior notes (i) | 3.625% | 2029 | 19,948,700 | |||||||||||
Fixed-rate Senior notes (i) | 2.875% | 2030 | 19,948,700 | |||||||||||
Fixed-rate Senior notes (i) | 6.375% | 2035 | 19,576,258 | |||||||||||
Fixed-rate Senior notes (i) | 6.125% | 2037 | 7,365,559 | |||||||||||
Fixed-rate Senior notes (i) | 6.125% | 2040 | 39,897,400 | |||||||||||
Fixed-rate Senior notes (i) | 4.375% | 2042 | 22,941,005 | |||||||||||
Fixed-rate Senior notes (i) | 4.375% | 2049 | 24,935,875 | |||||||||||
Subtotal U.S. dollars | Ps. | 186,531,417 | ||||||||||||
Mexican pesos | ||||||||||||||
Fixed-rate Senior notes (i) | 6.450% | 2022 | Ps. | 22,500,000 | ||||||||||
Fixed-rate Senior notes (i) | 7.125% | 2024 | 11,000,000 | |||||||||||
Domestic Senior notes (i) | 0.000% | 2025 | 4,911,181 | |||||||||||
Fixed-rate Senior notes (i) | 8.460% | 2036 | 7,871,700 | |||||||||||
Domestic Senior notes (i) | 8.360% | 2037 | 5,000,000 | |||||||||||
Subtotal Mexican pesos | Ps. | 51,282,881 | ||||||||||||
Euros | ||||||||||||||
Fixed-rate Senior notes (i) | 3.000% | 2021 | Ps. | 24,369,332 | ||||||||||
Fixed-rate Senior notes (i) | 3.125% | 2021 | 18,276,999 | |||||||||||
Fixed-rate Senior notes (i) | 4.000% | 2022 | 18,276,999 | |||||||||||
Fixed-rate Senior notes (i) | 4.750% | 2022 | 18,276,999 | |||||||||||
Fixed-rate Senior notes (i) | 3.500% | 2023 | 7,310,800 | |||||||||||
Fixed-rate Senior notes (i) | 3.259% | 2023 | 18,276,999 | |||||||||||
Fixed-rate Senior notes (i) | 1.500% | 2024 | 20,713,932 | |||||||||||
Fixed-rate Senior notes (i) | 1.500% | 2026 | 18,276,999 | |||||||||||
Fixed-rate Senior notes (i) | 0.750% | 2027 | 24,369,332 | |||||||||||
Fixed-rate Senior notes (i) | 2.125% | 2028 | 15,840,066 | |||||||||||
Commercial Paper (iv) | (0.230%) - (0.310%) | 2021 | 40,940,477 | |||||||||||
Subtotal Euros | Ps. | 224,928,934 | ||||||||||||
Pound sterling | ||||||||||||||
Fixed-rate Senior notes (i) | 5.000% | 2026 | Ps. | 13,634,936 | ||||||||||
Fixed-rate Senior notes (i) | 5.750% | 2030 | 17,725,417 | |||||||||||
Fixed-rate Senior notes (i) | 4.948% | 2033 | 8,180,962 | |||||||||||
Fixed-rate Senior notes (i) | 4.375% | 2041 | 20,452,405 | |||||||||||
Subtotal Pound sterling | Ps. | 59,993,720 | ||||||||||||
Brazilian reais | ||||||||||||||
Debentures (i) | 104.000% of CDI | 2021 | Ps. | 4,222,597 | ||||||||||
Debentures (i) | 104.250% of CDI | 2021 | 5,815,668 | |||||||||||
Promissory notes (i) | CDI + 0.600% | 2021 | 1,381,941 | |||||||||||
Debentures (i) | CDI + 0.960% | 2022 | 9,596,811 | |||||||||||
Promissory notes (i) | 106.000% of CDI | 2022 | 7,677,449 | |||||||||||
Debentures (i) | 106.500% of CDI | 2022 | 3,838,725 | |||||||||||
Subtotal Brazilian reais | Ps. | 32,533,191 | ||||||||||||
Other currencies | ||||||||||||||
Japanese yen | ||||||||||||||
Fixed-rate Senior notes (i) | 2.950% | 2039 | Ps. | 2,511,701 | ||||||||||
Subtotal Japanese yen | Ps. | 2,511,701 | ||||||||||||
Chilean pesos | ||||||||||||||
Fixed-rate Senior notes (i) | 3.961% | 2035 | Ps. | 4,078,453 | ||||||||||
Subtotal Chilean pesos | Ps. | 4,078,453 | ||||||||||||
Subtotal other currencies | Ps. | 6,590,154 | ||||||||||||
| ||||||||||||
|
|
| ||||||||||
| ||||||||||||
| ||||||||||||
| ||||||||||||
| ||||||||||||
| ||||||||||||
At December 31, 2018 | (Thousands of Mexican pesos) | |||||||||||
Currency | Loan | Interest rate | Maturity | Total | ||||||||
Senior Notes | ||||||||||||
U.S. dollars | ||||||||||||
Fixed-rate Senior notes (i) | 5.000% | 2019 | Ps. | 14,762,175 | ||||||||
Fixed-rate Senior notes (i) | 5.500% | 2019 | 7,427,972 | |||||||||
Fixed-rate Senior notes (i) | 5.000% | 2020 | 41,822,521 | |||||||||
Fixed-rate Senior notes (i) | 3.125% | 2022 | 31,492,640 | |||||||||
Fixed-rate Senior notes (i) | 6.375% | 2035 | 19,315,420 | |||||||||
Fixed-rate Senior notes (i) | 6.125% | 2037 | 7,267,419 | |||||||||
Fixed-rate Senior notes (i) | 6.125% | 2040 | 39,365,800 | |||||||||
Fixed-rate Senior notes (i) | 4.375% | 2042 | 22,635,335 | |||||||||
|
| |||||||||||
Subtotal U.S. dollars | Ps. | 184,089,282 | ||||||||||
|
| |||||||||||
Mexican pesos | ||||||||||||
Fixed-rate Senior notes (i) | 6.000% | 2019 | Ps. | 10,000,000 | ||||||||
Domestic Senior notes (i) | 8.600% | 2020 | 7,000,000 | |||||||||
Fixed-rate Senior notes (i) | 6.450% | 2022 | 22,500,000 | |||||||||
Fixed-rate Senior notes (i) | 7.125% | 2024 | 11,000,000 | |||||||||
Domestic Senior notes (i) | 0.000% | 2025 | 4,629,425 | |||||||||
Fixed-rate Senior notes (i) | 8.460% | 2036 | 7,871,700 | |||||||||
Domestic Senior notes (i) | 8.360% | 2037 | 5,000,000 | |||||||||
|
| |||||||||||
Subtotal Mexican pesos | Ps. | 68,001,125 | ||||||||||
|
|
At December 31, 2018 | (Thousands of Mexican pesos) | |||||||||||
Currency | Loan | Interest rate | Maturity | Total | ||||||||
Euros | ||||||||||||
Fixed-rate Senior notes (i) | 4.125% | 2019 | Ps. | 22,558,572 | ||||||||
Exchangeable Bonds (i) | 0.000% | 2020 | 64,107,851 | |||||||||
Fixed-rate Senior notes (i) | 3.000% | 2021 | 22,558,572 | |||||||||
Fixed-rate Senior notes (i) | 3.125% | 2021 | 17,568,739 | |||||||||
Fixed-rate Senior notes (i) | 4.000% | 2022 | 18,028,031 | |||||||||
Fixed-rate Senior notes (i) | 4.750% | 2022 | 16,918,929 | |||||||||
Fixed-rate Senior notes (i) | 3.500% | 2023 | 7,132,481 | |||||||||
Fixed-rate Senior notes (i) | 3.259% | 2023 | 16,918,929 | |||||||||
Fixed-rate Senior notes (i) | 1.500% | 2024 | 19,174,786 | |||||||||
Fixed-rate Senior notes (i) | 1.500% | 2026 | 16,918,929 | |||||||||
Fixed-rate Senior notes (i) | 2.125% | 2028 | 14,663,072 | |||||||||
|
| |||||||||||
Subtotal Euros | Ps. | 236,548,891 | ||||||||||
|
| |||||||||||
Pounds sterling | ||||||||||||
Fixed-rate Senior notes (i) | 5.000% | 2026 | Ps. | 12,550,801 | ||||||||
Fixed-rate Senior notes (i) | 5.750% | 2030 | 16,316,042 | |||||||||
Fixed-rate Senior notes (i) | 4.948% | 2033 | 7,530,481 | |||||||||
Fixed-rate Senior notes (i) | 4.375% | 2041 | 18,826,202 | |||||||||
|
| |||||||||||
Subtotal Pounds sterling | Ps. | 55,223,526 | ||||||||||
|
| |||||||||||
Brazilian reais | ||||||||||||
Debenture (i) | 103.900% of CDI | 2019 | Ps. | 5,079,720 | ||||||||
Promissory notes (i) | 102.400% of CDI | 2019 | 5,079,720 | |||||||||
Promissory notes (i) | 103.205% of CDI | 2019 | 1,828,699 | |||||||||
Debenture (i) | 102.900% of CDI | 2020 | 7,619,580 | |||||||||
Debenture (i) | 104.000% of CDI | 2021 | 5,587,692 | |||||||||
Debenture (i) | 104.250% of CDI | 2021 | 7,695,776 | |||||||||
|
| |||||||||||
Subtotal Brazilian reais | Ps. | 32,891,187 | ||||||||||
|
| |||||||||||
Other currencies | ||||||||||||
Japanese yen | ||||||||||||
Fixed-rate Senior notes (i) | 2.950% | 2039 | Ps. | 2,334,864 | ||||||||
|
| |||||||||||
Subtotal Japanese yen | Ps. | 2,334,864 | ||||||||||
|
| |||||||||||
Chilean pesos | ||||||||||||
Fixed-rate Senior notes (i) | 3.961% | 2035 | Ps. | 3,904,707 | ||||||||
|
| |||||||||||
Subtotal Chilean pesos | Ps. | 3,904,707 | ||||||||||
|
| |||||||||||
Subtotal other currencies | Ps. | 6,239,571 | ||||||||||
|
| |||||||||||
Hybrid Notes | ||||||||||||
Euros | ||||||||||||
Euro NC10 Series B Capital Securities (iii) | 6.375% | 2073 | Ps. | 12,407,214 | ||||||||
|
| |||||||||||
Subtotal Euros | Ps. | 12,407,214 | ||||||||||
|
| |||||||||||
Pounds sterling | ||||||||||||
GBP NC7 Capital Securities (iii) | 6.375% | 2073 | Ps. | 13,805,881 | ||||||||
|
| |||||||||||
Subtotal Pounds sterling | Ps. | 13,805,881 | ||||||||||
|
| |||||||||||
Subtotal Hybrid Notes | 26,213,095 | |||||||||||
|
|
At December 31, 2018 | (Thousands of Mexican pesos) | |||||||||||
Currency | Loan | Interest rate | Maturity | Total | ||||||||
Lines of Credit and others | ||||||||||||
U.S. dollars | ||||||||||||
Lines of credit (ii) | L + 0.200% and 1.500% - 8.950% | 2019 - 2021 | Ps. | 11,698,885 | ||||||||
Mexican pesos | ||||||||||||
Lines of credit (ii) | TIIE + 0.175% | 2019 | Ps. | 4,500,000 | ||||||||
Euros | ||||||||||||
Lines of credit (ii) | -0.100% - 0.000% | 2019 | Ps. | 5,526,850 | ||||||||
Brazilian reais | ||||||||||||
Lines of credit (ii) | 5.000% - 6.000% | 2019 - 2027 | Ps. | 27,009 | ||||||||
Peruvian Soles | ||||||||||||
Lines of credit (ii) | 4.700% - 12.100% | 2019 | Ps. | 7,898,595 | ||||||||
Chilean pesos | ||||||||||||
Financial Leases | 8.700% - 8.970% | 2019 - 2027 | Ps. | 64,437 | ||||||||
|
| |||||||||||
Subtotal Lines of Credit and others | Ps. | 29,715,776 | ||||||||||
|
| |||||||||||
Total debt | Ps. | 638,922,453 | ||||||||||
|
| |||||||||||
Less: Short-term debt and current portion of long-term debt | Ps. | 96,230,634 | ||||||||||
|
| |||||||||||
Long-term debt | Ps. | 542,691,819 | ||||||||||
|
|
At December 31, 2020 | (Thousands of Mexican pesos) | |||||||||||||
Currency | Loan | Interest rate | Maturity | Total | ||||||||||
Hybrid Notes | ||||||||||||||
Euros | ||||||||||||||
Euro NC10 Series B Capital Securities (iii) | 6.375% | 2073 | Ps. | 13,403,133 | ||||||||||
Subtotal Euros | Ps. | 13,403,133 | ||||||||||||
Subtotal Hybrid notes | Ps. | 13,403,133 | ||||||||||||
Lines of Credit and others | ||||||||||||||
Mexican pesos | ||||||||||||||
Lines of credit (ii) | | TIIE + 0.300 % -TIIE + 1.000 % | 2021 | Ps. | 27,100,000 | |||||||||
Peruvian soles | ||||||||||||||
Lines of credit (ii) | 1.200% - 1.450% | 2021 | Ps. | 17,094,079 | ||||||||||
Chilean pesos | ||||||||||||||
Lines of credit (ii) | | TAB + 0.350 %TAB + 0.450 % | | 2021 | Ps. | 8,868,181 | ||||||||
Financial Leases | 8.700% - 8.970% | 2021 - 2027 | Ps. | 57,266 | ||||||||||
Subtotal Lines of Credit and others | Ps. | 53,119,526 | ||||||||||||
Total debt | Ps. | 628,382,956 | ||||||||||||
Less: Short-term debt and current portion of long-term debt | Ps. | 148,083,184 | ||||||||||||
Long-term debt | Ps. | 480,299,772 | ||||||||||||
At December 31, 2021 | (Thousands of Mexican pesos) | |||||||||
Currency | Loan | Interest rate | Maturity | Total | ||||||
Senior Notes | ||||||||||
U.S. dollars | ||||||||||
Fixed-rate Senior notes (i) | 3.625% | 2029 | Ps. | 20,583,500 | ||||||
Fixed-rate Senior notes (i) | 2.875% | 2030 | 20,583,500 | |||||||
Fixed-rate Senior notes (i) | 6.375% | 2035 | 20,199,206 | |||||||
Fixed-rate Senior notes (i) | 6.125% | 2037 | 7,599,943 | |||||||
Fixed-rate Senior notes (i) | 6.125% | 2040 | 41,167,000 | |||||||
Fixed-rate Senior notes (i) | 4.375% | 2042 | 23,671,025 | |||||||
Fixed-rate Senior notes (i) | 4.375% | 2049 | 25,729,375 | |||||||
Subtotal U.S. dollars | Ps. | 159,533,549 | ||||||||
Mexican pesos | ||||||||||
Fixed-rate Senior notes (i) | 6.450% | 2022 | Ps. | 22,500,000 | ||||||
Fixed-rate Senior notes (i) | 7.125% | 2024 | 11,000,000 | |||||||
Domestic Senior notes (i) | 0.000% | 2025 | 5,284,885 | |||||||
Fixed-rate Senior notes (i) | 8.460% | 2036 | 7,871,700 | |||||||
Domestic Senior notes (i) | 8.360% | 2037 | 5,000,000 | |||||||
Subtotal Mexican pesos | Ps. | 51,656,585 | ||||||||
Euros | ||||||||||
Fixed-rate Senior notes (i) | 4.000% | 2022 | Ps. | 17,566,473 | ||||||
Fixed-rate Senior notes (i) | 3.500% | 2023 | 7,026,589 | |||||||
Fixed-rate Senior notes (i) | 3.259% | 2023 | 17,566,474 | |||||||
Fixed-rate Senior notes (i) | 1.500% | 2024 | 19,908,670 | |||||||
Exchangeable Bond (i) | 0.000% | 2024 | 49,115,860 | |||||||
Fixed-rate Senior notes (i) | 1.500% | 2026 | 17,566,473 | |||||||
Fixed-rate Senior notes (i) | 0.750% | 2027 | 23,421,965 | |||||||
Fixed-rate Senior notes (i) | 2.125% | 2028 | 15,224,277 | |||||||
Subtotal euros | Ps. | 167,396,781 | ||||||||
Pound sterling | ||||||||||
Fixed-rate Senior notes (i) | 5.000% | 2026 | Ps. | 13,924,738 | ||||||
Fixed-rate Senior notes (i) | 5.750% | 2030 | 18,102,159 | |||||||
Fixed-rate Senior notes (i) | 4.948% | 2033 | 8,354,843 | |||||||
Fixed-rate Senior notes (i) | 4.375% | 2041 | 20,887,106 | |||||||
Subtotal Pound sterling | Ps. | 61,268,846 | ||||||||
At December 31, 2021 | (Thousands of Mexican pesos) | |||||||||||||
Currency | Loan | Interest rate | Maturity | Total | ||||||||||
Brazilian reais | ||||||||||||||
Debentures (i) | CDI + 0.960% | 2022 | Ps. | 9,221,172 | ||||||||||
Promissory notes (i) | 106.000% of CDI | 2022 | 7,376,937 | |||||||||||
Debentures (i) | 106.500% of CDI | 2022 | 3,688,469 | |||||||||||
Subtotal Brazilian reais | Ps. | 20,286,578 | ||||||||||||
Other currencies | ||||||||||||||
Japanese yen | ||||||||||||||
Fixed-rate Senior notes (i) | 2.950% | 2039 | Ps. | 2,325,617 | ||||||||||
Subtotal Japanese yen | Ps. | 2,325,617 | ||||||||||||
Chilean pesos | ||||||||||||||
Fixed-rate Senior notes (i) | 3.961% | 2035 | Ps. | 3,776,051 | ||||||||||
Subtotal Chilean pesos | Ps. | 3,776,051 | ||||||||||||
Subtotal other currencies | Ps. | 6,101,668 | ||||||||||||
Hybrid Notes | ||||||||||||||
Euros | ||||||||||||||
Euro NC10 Series B Capital Securities (iii) | 6.375% | 2073 | Ps. | 12,882,081 | ||||||||||
Subtotal Euros | Ps. | 12,882,081 | ||||||||||||
Subtotal Hybrid Notes | Ps. | 12,882,081 | ||||||||||||
Lines of Credit and others | ||||||||||||||
U.S. dollars | ||||||||||||||
Lines of credit (ii) | 0.350% - 0.700% | 2022 | Ps. | 14,723,980 | ||||||||||
Euros | ||||||||||||||
Lines of credit (ii) | (0.400%) - (0.450%) | 2022 | Ps. | 18,737,572 | ||||||||||
Mexican pesos | ||||||||||||||
Lines of credit (ii) | | TIIE + 0.280% - TIIE + 0.400% | 2022 | Ps. | 34,080,000 | |||||||||
Peruvian soles | ||||||||||||||
Lines of credit (ii) | 0.976% - 1.045% | 2022 | Ps. | 9,815,068 | ||||||||||
Chilean pesos | ||||||||||||||
Lines of credit (ii) | TAB + 0.450% | 2022 | Ps. | 7,419,372 | ||||||||||
Financial Leases | 8.700% - 8.970% | 2022 - 2027 | Ps. | 47,743 | ||||||||||
Others | Lines of credit (ii) | 15.790% | 2022 | Ps. | 80,279 | |||||||||
Subtotal Lines of Credit and others | Ps. | 84,904,014 | ||||||||||||
Total debt | Ps. | 564,030,102 | ||||||||||||
Less: Short-term debt and current portion of long-term debt | Ps. | 145,222,672 | ||||||||||||
Long-term debt | Ps. | 418,807,430 | ||||||||||||
EURIBOR = Euro Interbank Offered Rate
TJLP
Chilean weighted average funding rate
2017 | 2018 | |||||||
Obligations and Senior Notes | Ps. 28,994,496 | Ps. 67,365,810 | ||||||
Lines of credit | 22,714,383 | 28,852,364 | ||||||
Financial Leases | 36,962 | 12,460 | ||||||
|
|
|
| |||||
Total | Ps. 51,745,841 | Ps. 96,230,634 | ||||||
|
|
|
| |||||
Weighted average interest rate | 4.0% | 5.20% | ||||||
|
|
|
|
2020 | 2021 | |||||||
Obligations and Senior Notes | Ps. | 95,007,014 | Ps. | 60,353,052 | ||||
Lines of credit | 53,062,260 | 84,856,270 | ||||||
Financial Leases | 13,910 | 13,350 | ||||||
Subtotal short term debt | Ps. | 148,083,184 | Ps. | 145,222,672 | ||||
Weighted average interest rate | 2.23 | % | 4.02 | % |
Years | Amount | |||
2023 | Ps. | 24,599,324 | ||
2024 | 80,031,350 | |||
2025 | 5,292,314 | |||
2026 and thereafter | 308,884,442 | |||
Total | Ps. | 418,807,430 |
Years | Amount | |||
2020 | Ps. | 121,184,630 | ||
2021 | 54,189,122 | |||
2022 | 88,027,828 | |||
2023 and thereafter | 279,290,239 | |||
|
| |||
Total | Ps. | 542,691,819 | ||
|
|
(i) Senior Notes
The outstanding Senior Notes at December 31, 2017, and December 31, 2018, are as follows:
Currency* | 2017 | 2018 | ||||||
U.S. dollars | Ps. 185,060,098 | Ps. 184,089,282 | ||||||
Mexican pesos | 70,691,683 | 68,001,125 | ||||||
Euros** | 263,998,076 | 236,548,891 | ||||||
Pounds sterling** | 58,823,089 | 55,223,526 | ||||||
Swiss francs | 11,169,748 | — | ||||||
Brazilian reais | 20,935,142 | 32,891,187 | ||||||
Japanese yens | 2,282,608 | 2,334,864 | ||||||
Chilean pesos | 4,312,424 | 3,904,707 |
Currency* | 2020 | 2021 | ||||||
U.S. dollars | Ps.186,531,417 | Ps.159,533,549 | ||||||
Mexican pesos | 51,282,881 | 51,656,585 | ||||||
Euros | 183,988,456 | 167,396,781 | ||||||
Pound sterling | 59,993,720 | 61,268,846 | ||||||
Brazilian reais | 32,533,191 | 20,286,578 | ||||||
Japanese yens | 2,511,701 | 2,325,617 | ||||||
Chilean pesos | 4,078,453 | 3,776,051 |
* | Thousands of Mexican pesos |
* | Includes secured and unsecured senior notes. |
At
Telekom Austria closed December 2021 with an aggregated debt of Ps.
18,818 under lines of credit.2026.
On September 2013, the Company issued three series of
On September 2018, we exercised the option to call our hybrid bond withestablished a maturity date in 2073new Euro-Commercial Paper program for a total amount of €900 million euros.
KPN
On September 2018, América Móvil delivered 224,695,844 KPN shares, equivalent to 5%€2,000 million. As of the total outstanding shares, after the maturity of a mandatory conversion bond with a nominal outstanding amount of €750 million Euros.
The transaction represented the sale of those shares at an effective price of €3.3374 euros per share.
“Covenants”
At
Right-of-use | Liability related to right-of-use assets | |||||||||||||||||||
Towers & Sites | Property | Other equipment | Total | |||||||||||||||||
As of January 1, 2019 | Ps. | 94,252,098 | Ps. | 21,075,884 | Ps. | 4,750,320 | Ps. | 120,078,302 | Ps. | 119,387,660 | ||||||||||
Additions and release | 6,364,508 | 921,542 | 729,001 | 8,015,051 | 7,437,621 | |||||||||||||||
Business Combinations | 9,668,507 | — | — | 9,668,507 | 10,810,111 | |||||||||||||||
Modifications | 7,474,469 | 1,288,974 | 728,837 | 9,492,280 | 8,363,045 | |||||||||||||||
Depreciation | (17,286,497 | ) | (4,941,222 | ) | (1,365,847 | ) | (23,593,566 | ) | — | |||||||||||
Interest expense | — | — | — | — | 7,940,240 | |||||||||||||||
Payments | — | — | — | — | (26,765,075 | ) | ||||||||||||||
Translation adjustment | (4,370,636 | ) | (905,808 | ) | (380,907 | ) | (5,657,351 | ) | (6,576,869 | ) | ||||||||||
Balance at December 31, 2019 | Ps. | 96,102,449 | Ps. | 17,439,370 | Ps. | 4,461,404 | Ps. | 118,003,223 | Ps. | 120,596,733 | ||||||||||
Right-of-use | Liability related to right-of-use assets | |||||||||||||||||||
Towers & Sites | Property | Other equipment | Total | |||||||||||||||||
Balance at the beginning of the year | Ps. | 96,102,449 | Ps. | 17,439,370 | Ps. | 4,461,404 | Ps. | 118,003,223 | Ps. | 120,596,733 | ||||||||||
Additions and release | 5,745,869 | 309,576 | 1,514,519 | 7,569,964 | 4,833,959 | |||||||||||||||
Modifications | 8,559,335 | (3,035,831 | ) | 1,048,858 | 6,572,362 | 7,769,326 | ||||||||||||||
Depreciation | (22,064,413 | ) | (3,440,428 | ) | (2,866,244 | ) | (28,371,085 | ) | — | |||||||||||
Interest expense | — | — | — | — | 9,134,288 | |||||||||||||||
Payments | — | — | — | — | (29,623,565 | ) | ||||||||||||||
Translation adjustment | (3,124,365 | ) | 932,748 | 393,997 | (1,797,620 | ) | (3,383,500 | ) | ||||||||||||
Balance at December 31, 2020 | Ps. | 85,218,875 | Ps. | 12,205,435 | Ps. | 4,552,534 | Ps. | 101,976,844 | Ps. | 109,327,241 | ||||||||||
Right-of-use | Liability related to right-of-use assets | |||||||||||||||||||
Towers & Sites | Property | Other equipment | Total | |||||||||||||||||
Balance at the beginning of the year | Ps. | 85,218,875 | Ps. | 12,205,435 | Ps. | 4,552,534 | Ps. | 101,976,844 | Ps. | 109,327,241 | ||||||||||
Additions and release | 3,145,941 | 482,456 | 1,052,022 | 4,680,419 | 3,060,042 | |||||||||||||||
Modifications | 10,945,985 | 1,024,573 | 998,161 | 12,968,719 | 12,535,394 | |||||||||||||||
Depreciation | (20,699,207 | ) | (3,221,499 | ) | (2,630,526 | ) | (26,551,232 | ) | — | |||||||||||
Interest expense | — | — | — | — | 7,301,216 | |||||||||||||||
Payments | — | — | — | — | (30,544,750 | ) | ||||||||||||||
Translation adjustment | (2,054,566 | ) | (554,260 | ) | (93,531 | ) | (2,702,357 | ) | (3,024,918 | ) | ||||||||||
Balance at December 31, 2021 | Ps. | 76,557,028 | Ps. | 9,936,705 | Ps. | 3,878,660 | Ps. | 90,372,393 | Ps. | 98,654,225 | ||||||||||
2021 | ||||
Short term | Ps. | 27,632,357 | ||
Long term | 71,021,868 | |||
Total | Ps. | 98,654,225 | ||
Year ended December 31, | ||||
2023 | Ps. | 13,370,533 | ||
2024 | 22,664,124 | |||
2025 | 10,342,707 | |||
2026 and thereafter | 24,644,504 | |||
Total | Ps. | 71,021,868 | ||
2019 | ||||||||||||
Others | Related parties | Total | ||||||||||
Depreciation expense of right-of-use assets | Ps. | 18,176,521 | Ps. | 5,417,045 | Ps. | 23,593,566 | ||||||
Interest expense on lease liabilities | 5,654,721 | 2,285,519 | 7,940,240 | |||||||||
Expense relating to short-term leases | 1,978,403 | 1,958 | 1,980,361 | |||||||||
Expense relating to leases of low-value assets | 25,935 | — | 25,935 | |||||||||
Variable lease payments | 1,299,502 | — | 1,299,502 | |||||||||
Total | Ps. | 27,135,082 | Ps. | 7,704,522 | Ps. | 34,839,604 | ||||||
2020 | ||||||||||||
Others | Related parties | Total | ||||||||||
Depreciation expense of right-of-use assets | Ps. | 22,404,924 | Ps. | 5,966,161 | Ps. | 28,371,085 | ||||||
Interest expense on lease liabilities | 7,081,693 | 2,052,595 | 9,134,288 | |||||||||
Expense relating to short-term leases | 32,238 | — | 32,238 | |||||||||
Expense relating to leases of low-value assets | 2,883 | — | 2,883 | |||||||||
Variable lease payments | 78,494 | — | 78,494 | |||||||||
Total | Ps. | 29,600,232 | Ps. | 8,018,756 | Ps. | 37,618,988 | ||||||
2021 | ||||||||||||
Others | Related parties | Total | ||||||||||
Depreciation expense of right-of-use assets | Ps. | 19,932,316 | Ps. | 6,618,916 | Ps. | 26,551,232 | ||||||
Interest expense on lease liabilities | 6,212,774 | 1,088,442 | 7,301,216 | |||||||||
Expense relating to short-term leases | 29,833 | — | 29,833 | |||||||||
Expense relating to leases of low-value assets | 685 | — | 685 | |||||||||
Variable lease payments | 68,236 | — | 68,236 | |||||||||
Total | Ps. | 26,243,844 | Ps. | 7,707,358 | Ps. | 33,951,202 | ||||||
At December 31, | ||||||||
2017 | 2018 | |||||||
Suppliers | Ps. 106,483,848 | Ps. 118,406,380 | ||||||
Sundry creditors | 91,842,929 | 91,087,197 | ||||||
Interest payable | 8,930,561 | 8,535,519 | ||||||
Guarantee deposits from customers | 1,460,286 | 1,421,336 | ||||||
Dividends payable | 3,955,783 | 2,506,835 | ||||||
|
|
|
| |||||
Total | Ps. 212,673,407 | Ps. 221,957,267 | ||||||
|
|
|
|
At December 31, | ||||||||
2020 | 2021 | |||||||
Suppliers | Ps. | 74,285,881 | Ps. | 87,942,106 | ||||
Sundry creditors | 101,406,307 | 107,111,390 | ||||||
Interest payable | 7,661,762 | 6,827,225 | ||||||
Guarantee deposits from customers | 1,386,645 | 1,577,424 | ||||||
Dividends payable | 2,254,877 | 3,029,536 | ||||||
Total | Ps. | 186,995,472 | Ps. | 206,487,681 | ||||
At December 31, | ||||||||
2017 | 2018 | |||||||
Current liabilities | ||||||||
Direct employee benefits payable | Ps. 16,673,627 | Ps. 16,152,118 | ||||||
Contingencies | 51,079,131 | 40,281,573 | ||||||
|
|
|
| |||||
Total | Ps. 67,752,758 | Ps. 56,433,691 | ||||||
|
|
|
|
At December 31, | ||||||||
2020 | 2021 | |||||||
Current liabilities | ||||||||
Direct employee benefits payable | Ps. | 18,965,160 | Ps. | 20,052,946 | ||||
Contingencies | 31,326,691 | 34,338,518 | ||||||
Total | Ps. | 50,291,851 | Ps. | 54,391,464 | ||||
| ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Balance at December 31, 2019 | Business combination | Effect of translation | Increase of the year | Applications | Balance at December 31, 2020 | |||||||||||||||||||||||
Payments | Reversals | |||||||||||||||||||||||||||
Contingencies | Ps. | 34,379,969 | Ps. | 292 | Ps. | (4,290,753 | ) | Ps. | 7,442,292 | Ps. | (3,214,407 | ) | Ps. | (2,990,702 | ) | Ps. | 31,326,691 | |||||||||||
Balance at December 31, 2020 | Business combination | Effect of translation | Increase of the year | Applications | Balance at December 31, 2021 | |||||||||||||||||||||||
Payments | Reversals | |||||||||||||||||||||||||||
Contingencies | Ps. | 31,326,691 | Ps. | 0 | Ps. | 1,556,950 | Ps. | 7,425,182 | Ps. | (4,079,190 | ) | Ps. | (1,891,115 | ) | Ps. | 34,338,518 | ||||||||||||
| ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Balance at December 31, 2019 | Business combination | Effect of translation | Increase of the year | Applications | Balance at December 31, 2020 | |||||||||||||||||||||||
Payments | Reversals | |||||||||||||||||||||||||||
Asset retirement obligations | Ps. | 15,816,744 | Ps. | 0 | Ps. | 374,418 | Ps. | 2,412,908 | Ps. | (593,644 | ) | Ps. | (122,435 | ) | Ps. | 17,887,991 | ||||||||||||
Balance at December 31, 2020 | Business combination | Effect of translation | Increase of the year | Applications | Balance at December 31, 2021 | |||||||||||||||||||||||
Payments | Reversals | |||||||||||||||||||||||||||
Asset retirement obligations | Ps. | 17,887,991 | Ps. | 0 | Ps. | (910,181 | ) | Ps. | 1,273,201 | Ps. | (148,634 | ) | Ps. | (1,350,154 | ) | Ps. | 16,752,223 | |||||||||||
16.
At December 31, 2017 and 2018, the Company has entered into several lease agreements with related parties and third parties for the buildings where its offices are located (as a lessee), as well as with the owners of towers and or premises where the Company has installed radio bases.
An analysis of the minimum rental payments for the next five years is shown below. In some cases, rental amounts are increased each year based on the National Consumer Price Index (INPC).
The Company has the followingnon-cancelable commitments under finance leases:
Year ended December 31, | ||||
2019 | Ps. | 22,920 | ||
2020 | 13,365 | |||
2021 | 12,068 | |||
2022 | 10,751 | |||
2023 | 9,399 | |||
2024 and thereafter | 34,011 | |||
|
| |||
Total | Ps. | 102,514 | ||
Less: amounts representing finance charges | 23,837 | |||
|
| |||
Present value of net minimum lease payments | 78,677 | |||
Less current portion | 14,240 | |||
|
| |||
Long-term obligations | Ps. | 64,437 | ||
|
|
An analysis ofnon-cancellable operating leases is as follows:
Year ended December 31, | ||||
2019 | Ps. | 24,034,366 | ||
2020 | 22,104,366 | |||
2021 | 15,522,020 | |||
2022 | 14,250,332 | |||
2023 | 12,046,800 | |||
2024 and thereafter | 49,991,937 | |||
|
| |||
Total | Ps. | 137,949,821 | ||
|
|
Rent expense for the years ended December 31, 2016, 2017 and 2018 was Ps. 32,300,963, Ps. 35,571,283 and Ps. 34,421,817, respectively.
b) Commitments
committed capital expenditures.
Year ended December 31, | ||||
2019 | Ps. | 88,233,626 | ||
2020 | 68,170,083 | |||
2021 | 55,358,156 | |||
2022 | 13,322,961 | |||
|
| |||
Total | Ps. | 225,084,826 | ||
|
|
c)
Year ended December 31, | ||||
2022 | Ps. | 7,770,936 | ||
2023 | 3,469,647 | |||
2024 | 2,808,660 | |||
2025 and thereafter | 19,960,884 | |||
Total | Ps. | 34,010,127 | ||
I. MEXICO
Tax Assessment and Fine
In 2012, the SAT notified the Company and its subsidiary Sercotel, S.A. de C.V. (“Sercotel”)description of a fineour material legal proceedings.
Given
Telcel is subject to two
this proceeding.
In 2008, Telmex entered into certain commercial agreements with Dish México Holdings, S. de R.L. de C.V. and related companies (“Dish”), involving billing, collection services, distribution and equipment leasing. In addition, Telmex had an option to purchase shares representing 51% of the capital stock of Dish México, S. de R.L. de C.V. (“Dish México”). In 2014, Telmex waived its rights under the option.
In 2015, the IFT imposed a fine of Ps. 14,414 on Telmex on the grounds that the IFT was not notified of an alleged merger (concentración) between Telmex and Dish in 2008. Telmex filed an appeal for relief (amparo) and a final resolution is pending.
In 2015, in relation with some Dish operations, the IFT initiated several proceedings in order to determine potential violations of (i) Telmex’s concession, with respect to an alleged indirect exploitation of a public television services concession, which in 2019, the appeal for relief was granted by a competent court (Tribunal Colegiado); the Company cannot predict the outcome of such proceedings, and (ii) certain provisions of the Mexican Constitution (Constitución Política de los Estados Unidos Mexicanos) and the Federal Telecommunications and Broadcasting Law (Ley Federal de Telecomunicaciones y Radiodifusión) regarding the cost-free rule ofre-transmission of television broadcast signals (commonly known as “must offer”), through other operators. In 2018, the IFT absolved Telmex and Dish from any responsibility in connection with the sanction procedure initiated by the IFT for the alleged violation of item (ii) above.
II. BRAZIL
a.pending
ICMS
(“BrTel”) and TVSAT Telecomunicações S.A. (“TV SAT”), had aggregate tax contingencies related to value-added tax (“ICMS”) of approximately Ps. 55,455,306
Tax assessments against Star One, S.A. (currently Claro Brasil as surviving entity of merger) in the amount of Ps. 21,167,194
Tax assessments against Claro Brasil and Americel in the amount of Ps. 5,861,997 (R$ 1,154,000), due to a decision that held certain benefits granted by the Brazilian states unconstitutional.
Tax assessment against Primesys in the amount of Ps. 3,916,464 (R$ 771,000),894,066) provisions related to ICMS over certain activities not deemed to be part of data communication services.
CSLL/IRPJ
As of December 31, 2018 Claro Brasil, Americel, BrTel,) assessments;
The aforementioned CSLL/IRPJ contingencies include a tax assessment against Claro Brasil in the amount of Ps. 10,906,159 (R$ 2,147,000) alleging the undue amortization of goodwill amounts between 2009 and 2012, and charging CSLL, IRPJ and penalties due to the late payment of taxes. Claro Brasil has challenged this assessment at the administrative level and a final resolution is pending. The Company has established a provision of Ps. 558,769 (R$ 110,000) in the accompanying consolidated financial statements for the losses arising from these contingencies, which the Company considers probable.
PIS/COFINS
As of December 31, 2018, Claro Brasil, Americel, TdB, Primesys and Brasil Center Comunicações Ltda. (“Brasil Center”) had aggregate tax assessments related to Social Integration Program (“PIS”) and Contribution for Social Security Financing (“COFINS”) in the amount of Ps. 16,488,772 (R$ 3,246,000). As of December 31, 2018, the Company has established a provision of Ps. 5,861,997 (R$ 1,154,000) in the accompanying consolidated financial statements for the losses arising from the PIS/COFINS assessments, which the Company considers probable. With respect to such PIS/COFINS assessments:
Claro Brasil and Americel have commenced lawsuits against the Brazilian Federal Revenue Service seeking a ruling on constitutional grounds to exclude interconnection fees from the base used to calculate PIS and COFINS tax obligations. Pending a final resolution and pursuant to applicable Brazilian procedure, the companies have paid the tax based on their position in the lawsuits and have established a provision for the disputed amounts. As of December 31, 2018, the total amount in dispute was approximately Ps. 5,221,952 (R$ 1,028,000).
Tax assessments against Claro Brasil and Americelprovisions related to the offset of PISsocial integration program (Programa de Integração Social or “PIS”) and COFINS credits recorded in the noncumulative method in an amount of contribution for social security financing (Contribuição para o Financiamento da Seguridade Social or “COFINS”) assessments;
As of September 30, 2018, based on a favorable decision from the Brazilian Supreme Court concerning the exclusion of ICMS from PIS and COFINS, the Company reverted the provision of Ps. 13,034,562 (R$2,566,000).
FUST/FUNTTEL
Anatel has initiated administrative proceedings against Claro Brasil, Americel, Primesys, TdB, BrTel and TVSAT in an aggregate amount of Ps. 14,223,217 (R$ 2,800,000) mainly based on an allegedly improper exclusion of interconnection revenues and costs from the basis used to calculate its
calculate Fund for Universal Telecommunication Services (Fundo de Universalização dos Serviços de Telecomunicações or “FUST”) obligations, which are being contested; |
In addition, the Brazilian Ministry of Communications (Ministério das Comunicações) has initiated administrative proceedings against Claro Brasil, Americel, Primesys, TdB, BrTel and TVSAT totaling an amount of These include Ps. 5,115,278
ISS
The Municipal Revenue Services have issued tax assessments against Claro Brasil, Brasil Center and Primesys, totaling an aggregate amount of approximately Ps. 3,637,080 (R$ 716,000) due to the alleged nonpayment of Brazilian Services tax (“ISS”) over several telecommunication services, including Pay TV services, considered as taxable for ISS by these authorities. The companies have challenged the tax assessments on the grounds that the services cited are not subject to ISS tax and a final resolution is pending. As of December 31, 2018, the Company has established a provision of Ps. 25,399 (R$ 5,000) in the accompanying financial statements for the losses arising from these assessments, which the Company considers probable.
TFI
As of December 31, 2018, Anatel fined Claro Brasil and Americel a total of Ps. 13,207,273 (R$ 2,600,000), for
Other Tax Contingencies
There are other several tax contingencies involving Claro Brasil, Americel, TdB and Primesys in an aggregate amount of Ps. 12,394,517 (R$ 2,440,000) related to a variety of taxes and government programs. As of December 31, 2018, the Company has established a provision of Ps. 1,117,538 (R$ 220,000) in the accompanying consolidated financial statements for the losses arising from these contingencies, which the Company considers probable.
b. Regulatory Matters
Inflation-Related Adjustments
III. ECUADOR
In 2014, following a regulatory claim filed in 2012 by state-owned operatorCorporación Nacional de Telecomunicaciones(“CNT”), the Superintendency
At December 31, | ||||||||
2017 | 2018 | |||||||
Liability: | ||||||||
Mexico | Ps. | 84,821,197 | Ps. | 85,517,190 | ||||
Puerto Rico | 13,962,128 | 13,986,596 | ||||||
Europe | 14,833,840 | 12,705,926 | ||||||
Brazil | 6,276,780 | 5,666,694 | ||||||
Ecuador | 403,194 | 448,608 | ||||||
|
|
|
| |||||
Total | Ps. 120,297,139 | Ps. | 118,325,014 | |||||
|
|
|
|
For the year ended December 31, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
Net period cost (benefit) | ||||||||||||
Mexico | Ps. | 12,281,154 | Ps. | 11,586,065 | Ps. | 12,046,208 | ||||||
Puerto Rico | 1,058,131 | 776,238 | 686,067 | |||||||||
Europe | 226,447 | 385,689 | 619,039 | |||||||||
Brazil | 633,159 | 735,855 | 579,432 | |||||||||
Ecuador | 41,380 | 152,335 | 58,354 | |||||||||
|
|
|
|
|
| |||||||
Total | Ps. | 14,240,271 | Ps. | 13,636,182 | Ps. | 13,989,100 | ||||||
|
|
|
|
|
|
At December 31, | ||||||||
2020 | 2021 | |||||||
Mexico | Ps. | 129,260,355 | Ps. | 110,225,654 | ||||
Puerto Rico | 14,924,874 | 12,502,377 | ||||||
Brazil | 8,913,548 | 6,108,744 | ||||||
Europe | 14,392,445 | 13,127,228 | ||||||
Ecuador | 488,161 | 601,239 | ||||||
El Salvador | 154,422 | 177,922 | ||||||
Nicaragua | 61,337 | 75,084 | ||||||
Honduras | 35,060 | 32,217 | ||||||
Total | Ps. | 168,230,202 | Ps. | 142,850,465 | ||||
For the year ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Mexico | Ps. | 12,788,464 | Ps. | 14,911,208 | Ps. | 15,507,652 | ||||||
Puerto Rico | 747,755 | 664,046 | 548,550 | |||||||||
Brazil | 511,964 | 722,412 | 724,587 | |||||||||
Europe | 2,526,957 | 1,701,424 | 1,753,872 | |||||||||
Ecuador | 34,425 | 67,402 | 111,353 | |||||||||
El Salvador | 0 | 15,751 | 19,081 | |||||||||
Nicaragua | 0 | 3,711 | 18,561 | |||||||||
Honduras | 0 | 0 | 4,718 | |||||||||
Total | Ps. | 16,609,565 | Ps. | 18,085,954 | Ps. | 18,688,374 | ||||||
Benefit Plans
At December 31 | ||||||||||||||||||||||||||||||||
2017 | 2018 | |||||||||||||||||||||||||||||||
DBO | Plan Assets | Effect of asset celling | Net employee benefit liability | DBO | Plan Assets | Effect of asset celling | Net employee benefit liability | |||||||||||||||||||||||||
Mexico | Ps. | 266,304,948 | Ps. | (182,539,376) | Ps. | — | Ps. | 83,765,572 | Ps. | 247,997,060 | Ps. | (163,404,418) | Ps. | — | Ps. | 84,592,642 | ||||||||||||||||
Puerto Rico | 38,711,695 | ( 24,749,567) | — | 13,962,128 | 35,220,889 | ( 21,234,293) | — | 13,986,596 | ||||||||||||||||||||||||
Brazil | 19,369,664 | ( 20,399,661) | 6,519,560 | 5,489,563 | 18,795,315 | ( 19,032,411) | 5,087,543 | 4,850,447 | ||||||||||||||||||||||||
Europe | 4,554,912 | — | — | 4,554,912 | 4,477,042 | — | — | 4,477,042 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total | Ps. | 328,941,219 | Ps. | (227,688,604) | Ps. | 6,519,560 | Ps. | 107,772,175 | Ps. | 306,490,306 | Ps. | (203,671,122) | Ps. | 5,087,543 | Ps. | 107,906,727 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31 | ||||||||||||||||||||||||||||||||
2020 | 2021 | |||||||||||||||||||||||||||||||
DBO | Plan Assets | Effect of asset ceiling | Net employee benefit liability | DBO | Plan Assets | Effect of asset ceiling | Net employee benefit liability | |||||||||||||||||||||||||
Mexico | Ps. | 278,434,302 | Ps. | (150,090,481 | ) | Ps. | — | Ps. | 128,343,821 | Ps. | 286,396,483 | Ps. | (177,270,561 | ) | Ps. | — | Ps. | 109,125,922 | ||||||||||||||
Puerto Rico | 40,240,193 | (25,315,319 | ) | — | 14,924,874 | 38,092,662 | (25,590,285 | ) | — | 12,502,377 | ||||||||||||||||||||||
Brazil | 18,568,932 | (16,143,783 | ) | 3,393,640 | 5,818,789 | 15,497,227 | (15,466,336 | ) | 4,422,459 | 4,453,350 | ||||||||||||||||||||||
Europe | 5,490,873 | — | — | 5,490,873 | 5,093,036 | — | — | 5,093,036 | ||||||||||||||||||||||||
Total | Ps. | 342,734,300 | Ps. | (191,549,583 | ) | Ps. | 3,393,640 | Ps. | 154,578,357 | Ps. | 345,079,408 | Ps. | (218,327,182 | ) | Ps. | 4,422,459 | Ps. | 131,174,685 | ||||||||||||||
At December 31, 2016 | ||||||||||||||||
DBO | Plan Assets | Effect of asset celling | Net employee benefit | |||||||||||||
Balance at the beginning of the year | Ps. | 314,049,729 | Ps. | (212,234,440 | ) | Ps. | 4,823,147 | Ps. | 106,638,436 | |||||||
Current service cost | 4,606,856 | 4,606,856 | ||||||||||||||
Interest cost on projected benefit obligation | 27,275,363 | 27,275,363 | ||||||||||||||
Expected return on plan assets | (18,972,042 | ) | (18,972,042 | ) | ||||||||||||
Changes in the asset ceiling during the period and others | 875,192 | 875,192 | ||||||||||||||
Past service costs and other | 165,851 | 165,851 | ||||||||||||||
Actuarial gain for changes in experience | (28,867 | ) | (28,867 | ) | ||||||||||||
Actuarial loss from changes in financial assumptions | 7,784 | 7,784 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net period cost | Ps. | 31,861,136 | Ps. | (18,806,191 | ) | Ps. | 875,192 | Ps. | 13,930,137 | |||||||
Actuarial gain for changes in experience | (20,976,837 | ) | (20,976,837 | ) | ||||||||||||
Actuarial loss from changes in demographic assumptions | 397,985 | 397,985 | ||||||||||||||
Actuarial loss from changes in financial assumptions | 1,718,189 | 1,718,189 | ||||||||||||||
Changes in the asset ceiling during the period and others | (754,535 | ) | (754,535 | ) | ||||||||||||
Return on plan assets greater than discount rate | (4,724,041 | ) | (4,724,041 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Recognized in other comprehensive income | Ps. | (18,860,663 | ) | Ps. | (4,724,041 | ) | Ps. | (754,535 | ) | Ps. | (24,339,239 | ) | ||||
Contributions made by plan participants | 255,760 | (255,760 | ) | — | ||||||||||||
Contributions to the pension plan made by the Company | (2,756,519 | ) | (2,756,519 | ) | ||||||||||||
Benefits paid | (25,694,301 | ) | 25,517,599 | (176,702 | ) | |||||||||||
Payments to employees | (525,612 | ) | (525,612 | ) | ||||||||||||
Effect of translation | 12,196,546 | (9,086,269 | ) | 2,139,414 | 5,249,691 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Others | Ps. | (13,767,607 | ) | Ps. | 13,419,051 | Ps. | 2,139,414 | Ps. | 1,790,858 | |||||||
Balance at the end of the year | 313,282,595 | (222,345,621 | ) | 7,083,218 | 98,020,192 | |||||||||||
Less short-term portion | (152,448 | ) | (152,448 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Non-current obligation | Ps. | 313,130,147 | Ps. | (222,345,621) | Ps. | 7,083,218 | Ps. | 97,867,744 | ||||||||
|
|
|
|
|
|
|
|
At December 31, 2017 | ||||||||||||||||
DBO | Plan Assets | Effect of asset celling | Net employee benefit liability | |||||||||||||
Balance at the beginning of the year | Ps. | 313,282,595 | Ps. | (222,345,621 | ) | Ps. | 7,083,218 | Ps. | 98,020,192 | |||||||
Current service cost | 4,285,693 | 4,285,693 | ||||||||||||||
Interest cost on projected benefit obligation | 28,922,385 | 28,922,385 | ||||||||||||||
Expected return on plan assets | (20,916,104 | ) | (20,916,104 | ) | ||||||||||||
Changes in the asset ceiling during the period and others | 716,330 | 716,330 | ||||||||||||||
Past service costs and other | 53,032 | 53,032 | ||||||||||||||
Actuarial gain for changes in experience | (35,145 | ) | (35,145 | ) | ||||||||||||
Actuarial gain from changes in demographic assumptions | (85 | ) | (85 | ) | ||||||||||||
Actuarial gain from changes in financial assumptions | (4,294 | ) | (4,294 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net period cost | Ps. | 33,168,554 | Ps. | (20,863,072 | ) | Ps. | 716,330 | Ps. | 13,021,812 | |||||||
Actuarial loss for changes in experience | 11,671,860 | 11,671,860 | ||||||||||||||
Actuarial gain from changes in demographic assumptions | (381,172 | ) | (381,172 | ) | ||||||||||||
Actuarial loss from changes in financial assumptions | 2,438,078 | 2,438,078 | ||||||||||||||
Changes in the asset ceiling during the period and others | (856,188 | ) | (856,188 | ) | ||||||||||||
Return on plan assets greater than discount rate | (2,483,430 | ) | (2,483,430 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Recognized in other comprehensive income | Ps. | 13,728,766 | Ps. | (2,483,430 | ) | Ps. | (856,188 | ) | Ps. | 10,389,148 | ||||||
Contributions made by plan participants | 198,713 | (198,713 | ) | — | ||||||||||||
Contributions to the pension plan made by the Company | (2,697,621 | ) | (2,697,621 | ) | ||||||||||||
Benefits paid | (18,841,754 | ) | 18,841,754 | — | ||||||||||||
Payments to employees | (9,843,743 | ) | (9,843,743 | ) | ||||||||||||
Effect of translation | (2,579,506 | ) | 2,058,099 | (423,800 | ) | (945,207 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Others | Ps. | (31,066,290 | ) | Ps. | 18,003,519 | Ps. | (423,800 | ) | Ps. | (13,486,571 | ) | |||||
Balance at the end of the year | 329,113,625 | (227,688,604 | ) | 6,519,560 | 107,944,581 | |||||||||||
Less short-term portion | (172,406 | ) | (172,406 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Non-current obligation | Ps. | 328,941,219 | Ps. | (227,688,604) | Ps. | 6,519,560 | Ps. | 107,772,175 | ||||||||
|
|
|
|
|
|
|
|
At December 31, 2018 | ||||||||||||||||
DBO | Plan Assests | Effect of asset celling | Net employee benefit liability | |||||||||||||
Balance at the beginning of the year | Ps. | 329,113,625 | Ps. | (227,688,604 | ) | Ps. | 6,519,560 | Ps. | 107,944,581 | |||||||
Current service cost | 3,322,813 | 3,322,813 | ||||||||||||||
Interest cost on projected benefit obligation | 30,185,257 | 30,185,257 | ||||||||||||||
Expected return on plan assets | (20,804,104 | ) | (20,804,104 | ) | ||||||||||||
Changes in the asset ceiling during the period and others | 587,373 | 587,373 | ||||||||||||||
Past service costs and other | 157,765 | 157,765 | ||||||||||||||
Actuarial gain for changes in experience | (7,222 | ) | (7,222 | ) | ||||||||||||
Actuarial loss from changes in demographic assumptions | 134,625 | 134,625 | ||||||||||||||
Actuarial gain from changes in financial assumptions | (24,890 | ) | (24,890 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net period cost | Ps. | 33,610,583 | Ps. | (20,646,339 | ) | Ps. | 587,373 | Ps. | 13,551,617 | |||||||
Actuarial gain for changes in experience | (21,283,470 | ) | (21,283,470 | ) | ||||||||||||
Actuarial loss from changes in demographic assumptions | 68,482 | 68,482 | ||||||||||||||
Actuarial gain from changes in financial assumptions | (1,246,539 | ) | (1,246,539 | ) | ||||||||||||
Changes in the asset ceiling during the period and others | (1,055,409 | ) | (1,055,409 | ) | ||||||||||||
Return on plan assets greater than discount rate | 23,503,296 | 23,503,296 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Recognized in other comprehensive income | Ps. | (22,461,527 | ) | Ps. | 23,503,296 | Ps. | (1,055,409 | ) | Ps. | (13,640 | ) | |||||
Contributions made by plan participants | 173,722 | (173,722 | ) | — | ||||||||||||
Contributions to the pension plan made by the Company | (1,565,792 | ) | (1,565,792 | ) | ||||||||||||
Benefits paid | (19,546,541 | ) | 19,546,541 | — | ||||||||||||
Payments to employees | (10,651,938 | ) | (10,651,938 | ) | ||||||||||||
Effect of translation | (3,535,477 | ) | 3,353,498 | (963,981 | ) | (1,145,960 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Others | Ps. | (33,560,234 | ) | Ps. | 21,160,525 | Ps. | (963,981 | ) | Ps. | (13,363,690 | ) | |||||
Balance at the end of the year | 306,702,447 | (203,671,122 | ) | 5,087,543 | 108,118,868 | |||||||||||
Less short-term portion | (212,141 | ) | (212,141 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Non-current obligation | Ps. | 306,490,306 | Ps. | (203,671,122 | ) | Ps. | 5,087,543 | Ps. | 107,906,727 | |||||||
|
|
|
|
|
|
|
|
At December 31, 2019 | ||||||||||||||||
DBO | Plan Assets | Effectofasset ceiling | Net employee benefit liability | |||||||||||||
Balance at the beginning of the year | Ps. | 306,702,447 | Ps. | (203,671,122 | ) | Ps. | 5,087,543 | Ps. | 108,118,868 | |||||||
Current service cost | 2,591,975 | 2,591,975 | ||||||||||||||
Interest cost on projected benefit obligation | 31,001,348 | 31,001,348 | ||||||||||||||
Expected return on plan assets | (20,070,037 | ) | (20,070,037 | ) | ||||||||||||
Changes in the asset ceiling during the period and others | 445,743 | 445,743 | ||||||||||||||
Past service costs and others | 144,481 | 144,481 | ||||||||||||||
Actuarial gain for changes in experience | (22,599 | ) | (22,599 | ) | ||||||||||||
Actuarial gain from changes in demographic assumptions | (129 | ) | (129 | ) | ||||||||||||
Actuarial loss from changes in financial assumptions | 36,163 | 36,163 | ||||||||||||||
Net period cost | Ps. | 33,606,758 | Ps. | (19,925,556 | ) | Ps. | 445,743 | Ps. | 14,126,945 | |||||||
Actuarial loss for changes in experience | 31,606,323 | 31,606,323 | ||||||||||||||
Actuarial gain from changes in demographic assumptions | (339,657 | ) | (339,657 | ) | ||||||||||||
Actuarial loss from changes in financial assumptions | 7,207,072 | 7,207,072 | ||||||||||||||
Changes in the asset ceiling during the period and others | (712,064 | ) | (712,064 | ) | ||||||||||||
Return on plan assets greater than discount rate (shortfall) | 423,514 | 423,514 | ||||||||||||||
Recognized in other comprehensive income | Ps. | 38,473,738 | Ps. | 423,514 | Ps. | (712,064 | ) | Ps. | 38,185,188 | |||||||
Contributions made by plan participants | 155,188 | (155,188 | ) | — | ||||||||||||
Contributions to the pension plan made by the Company | (1,337,610 | ) | (1,337,610 | ) | ||||||||||||
Benefits paid | (15,836,928 | ) | 15,836,928 | — | ||||||||||||
Payments to employees | (16,996,920 | ) | (16,996,920 | ) | ||||||||||||
Effect of translation | (3,534,509 | ) | 2,528,213 | (393,201 | ) | (1,399,497 | ) | |||||||||
Others | Ps. | (36,213,169 | ) | Ps. | 16,872,343 | Ps. | (393,201 | ) | Ps. | (19,734,027 | ) | |||||
Balance at the end of the year | 342,569,774 | (206,300,821 | ) | 4,428,021 | 140,696,974 | |||||||||||
Less short-term portion | (213,065 | ) | (213,065 | ) | ||||||||||||
Non-current obligation | Ps. | 342,356,709 | Ps. | (206,300,821 | ) | Ps. | 4,428,021 | Ps. | 140,483,909 | |||||||
At December 31, 2020 | ||||||||||||||||
DBO | Plan Assets | Effect of asset ceiling | Net employee benefit liability | |||||||||||||
Balance at the beginning of the year | Ps. | 342,569,774 | Ps. | (206,300,821 | ) | Ps. | 4,428,021 | Ps. | 140,696,974 | |||||||
Current service cost | 2,810,584 | 2,810,584 | ||||||||||||||
Interest cost on projected benefit obligation | 30,482,173 | 30,482,173 | ||||||||||||||
Expected return on plan assets | (17,655,119 | ) | (17,655,119 | ) | ||||||||||||
Changes in the asset ceiling during the period and others | 278,639 | 278,639 | ||||||||||||||
Past service costs and other | 148,253 | 148,253 | ||||||||||||||
Actuarial gain for changes in experience | (8,945 | ) | (8,945 | ) | ||||||||||||
Actuarial gain from changes in demographic assumptions | (270 | ) | (270 | ) | ||||||||||||
Actuarial loss from changes in financial assumptions | 20,219 | 20,219 | ||||||||||||||
Net period cost | Ps. | 33,303,761 | Ps. | (17,506,866 | ) | Ps. | 278,639 | Ps. | 16,075,534 | |||||||
Actuarial gain for changes in experience | (9,677 | ) | (9,677 | ) | ||||||||||||
Actuarial gain from changes in demographic assumptions | (103,987 | ) | (103,987 | ) | ||||||||||||
Actuarial loss from changes in financial assumptions | 3,475,345 | 3,475,345 | ||||||||||||||
Changes in the asset ceiling during the period and others | (542,430 | ) | (542,430 | ) | ||||||||||||
Return on plan assets greater than discount rate (shortfall) | 12,320,777 | 12,320,777 | ||||||||||||||
Others | (924,084 | ) | (924,084 | ) | ||||||||||||
Recognized in other comprehensive income | Ps. | 2,437,597 | Ps. | 12,320,777 | Ps. | (542,430 | ) | Ps. | 14,215,944 | |||||||
Contributions made by plan participants | 137,947 | (137,947 | ) | — | ||||||||||||
Contributions to the pension plan made by the Company | (1,882,654 | ) | (1,882,654 | ) | ||||||||||||
Benefits paid | (19,740,727 | ) | 19,740,727 | — | ||||||||||||
Payments to employees | (14,426,720 | ) | (14,426,720 | ) | ||||||||||||
Effect of translation | (1,278,392 | ) | 2,217,201 | (770,590 | ) | 168,219 | ||||||||||
Others | Ps. | (35,307,892) | Ps. | 19,937,327 | Ps. | (770,590) | Ps. | (16,141,155) | ||||||||
Balance at the end of the year | 343,003,240 | (191,549,583 | ) | 3,393,640 | 154,847,297 | |||||||||||
Less short-term portion | (268,940 | ) | (268,940 | ) | ||||||||||||
Non-current obligation | Ps. | 342,734,300 | Ps. | (191,549,583) | Ps. | 3,393,640 | Ps. | 154,578,357 | ||||||||
At December 31, 2021 | ||||||||||||||||
DBO | Plan Assets | Effect of asset ceiling | Net employee benefit liability | |||||||||||||
Balance at the beginning of the year | Ps. | 343,003,240 | Ps. | (191,549,583) | Ps. | 3,393,640 | Ps. | 154,847,297 | ||||||||
Current service cost | 2,090,896 | 2,090,896 | ||||||||||||||
Interest cost on projected benefit obligation | 28,913,257 | 28,913,257 | ||||||||||||||
Expected return on plan assets | (15,112,669 | ) | (15,112,669 | ) | ||||||||||||
Changes in the asset ceiling during the period and others | 215,544 | 215,544 | ||||||||||||||
Past service costs and other | 139,910 | 139,910 | ||||||||||||||
Actuarial gain for changes in experience | (23,024 | ) | (23,024 | ) | ||||||||||||
Actuarial gain from changes in demographic assumptions | (48 | ) | (48 | ) | ||||||||||||
Actuarial gain from changes in financial assumptions | (6,907 | ) | (6,907 | ) | ||||||||||||
Net period cost | Ps. | 30,974,174 | Ps. | (14,972,759) | Ps. | 215,544 | Ps. | 16,216,959 | ||||||||
Actuarial loss for changes in experience | 10,728,950 | 10,728,950 | ||||||||||||||
Actuarial gain from changes in demographic assumptions | (104,568 | ) | (104,568 | ) | ||||||||||||
Actuarial gain from changes in financial assumptions | (4,099,321 | ) | (4,099,321 | ) | ||||||||||||
Changes in the asset ceiling during the period and others | 969,433 | 969,433 | ||||||||||||||
Return on plan assets greater than discount rate (shortfall) | (22,198,615 | ) | (22,198,615 | ) | ||||||||||||
Recognized in other comprehensive income | Ps. | 6,525,061 | Ps. | (22,198,615 | ) | Ps. | 969,433 | Ps. | (14,704,121 | ) | ||||||
Contributions made by plan participants | 99,201 | (99,201 | ) | — | ||||||||||||
Contributions to the pension plan made by the Company | 311,108 | 311,108 | ||||||||||||||
Benefits paid | (10,574,420 | ) | 10,348,544 | (225,876 | ) | |||||||||||
Payments to employees | (25,042,314 | ) | (25,042,314 | ) | ||||||||||||
Effect of translation | 330,770 | (166,676 | ) | (156,158 | ) | 7,936 | ||||||||||
Others | Ps. | (35,186,763) | Ps. | 10,393,775 | Ps. | (156,158) | Ps. | (24,949,146) | ||||||||
Balance at the end of the year | 345,315,712 | (218,327,182 | ) | 4,422,459 | 131,410,989 | |||||||||||
Less short-term portion | (236,304 | ) | (236,304 | ) | ||||||||||||
Non-current obligation | Ps. | 345,079,408 | Ps. | (218,327,182) | Ps. | 4,422,459 | Ps. | 131,174,685 | ||||||||
In the case of other subsidiaries in Brazil, the net period cost of other employee benefits for the years ended December 31, 2016, 20172019, 2020 and 20182021 was Ps. 65,101, Ps.93,74249,050, Ps. 174,994 and Ps.267,728, respectively. The balance of other employee benefits at December 31, 2020 and 2021 was Ps. 916,534 and Ps. 98,658,1,099,732, respectively.
At December 31 | ||||||||||||||||||||||||
2017 | 2018 | |||||||||||||||||||||||
Puerto Rico | Brazil | Mexico | Puerto Rico | Brazil | Mexico | |||||||||||||||||||
Equity instruments | 37% | 6% | 61% | 37% | — | 39% | ||||||||||||||||||
Debt instruments | 61% | 88% | 39% | 60% | 94% | 61% | ||||||||||||||||||
Others | 2% | 6% | — | 3% | 6% | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
100% | 100% | 100% | 100% | 100% | 100% | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2020 | 2021 | |||||||||||||||||||||||
Puerto Rico | Brazil | Mexico | Puerto Rico | Brazil | Mexico | |||||||||||||||||||
Equity instruments | 43 | % | — | 68 | % | 42 | % | — | 74 | % | ||||||||||||||
Debt instruments | 22 | % | 95 | % | 32 | % | 21 | % | 94 | % | 26 | % | ||||||||||||
Others | 35 | % | 5 | % | — | 37 | % | 6 | % | — | ||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||
2016 | 2017 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
Puerto Rico | Brazil | Mexico | Europe | Puerto Rico | Brazil | Mexico | Europe | Puerto Rico | Brazil | Mexico | Europe | |||||||||||||||||||||||||||||||||||||
Discount rate and long- term rate return | 4.16 | % | 10.84 | % | 10.70 | % | | 1.0%, 1.5% & 1.75% |
| 3.61% | 10.18 | % | 10.70% | | 1.0%, 1.5% & 2.00% |
| 4.45% | 9.10 | % | 11.81% | | 1.25%, 1.75% & 2.00% |
| |||||||||||||||||||||||||
Rate of future salary increases | 3.50 | % | 4.85 | % | 4.50 | % | | 3.0.%, 3.9% & 4.4% |
| 2.75% | 4.50 | % | 4.50% | | 3.0.%, 3.5% & 4.4% |
| 2.75% | 4.00 | % | 3.55% | | 3.0.%, 3.5% & 4.4% |
| |||||||||||||||||||||||||
Percentage of increase in health care costs for the coming year | 4.20 | % | 11.35 | % | 3.57% | 11.00 | % | 3.87% | 10.50 | % | ||||||||||||||||||||||||||||||||||||||
Year to which this level will be maintained | N/A | 2017 | N/A | 2028 | N/A | 2029 | ||||||||||||||||||||||||||||||||||||||||||
Rate of increase of pensions | 3.83 | % | 1.60% | 3.83% | 1.60% | 3.47% | 1.60% | |||||||||||||||||||||||||||||||||||||||||
Employee turnover rate* | 0.0%-1.88% | 0.0%-1.72% | 0.0%-1.51% |
2019 | 2020 | 2021 | ||||||||||||||||||||||||||||||||||||||||
Puerto Rico | Brazil | Mexico | Europe | Puerto Rico | Brazil | Mexico | Europe | Puerto Rico | Brazil | Mexico | Europe | |||||||||||||||||||||||||||||||
0.75%, | 0.25%, | 0.25%, | ||||||||||||||||||||||||||||||||||||||||
1.00% & | 6.48% & | 0.50% & | 8.51% & | 0.75% & | ||||||||||||||||||||||||||||||||||||||
Discount rate and long-term | 3.23 | % | 7.03 | % | 10.50 | % | 1.25% | 2.34 | % | 7.39 | % | 10.04 | % | 0.75% | 2.75 | % | 8.67% | 10.4 | % | 1.00% | ||||||||||||||||||||||
3.00%, | 3.00%, | 3.00%, | ||||||||||||||||||||||||||||||||||||||||
3.5% & | 3.5% & | 3.40% & | ||||||||||||||||||||||||||||||||||||||||
Rate of future salary increases | 2.75% | 3.80% | 3.20% | 4.40% | 2.75% | 3.25% | 2.84% | 4.10% | 2.75% | 3.25% | 2.80% | 4.00% | ||||||||||||||||||||||||||||||
Percentage of increase in health care costs for the coming year | 3.18% | 10.30% | 2.28% | 9.96% | 2.72% | 9.44% | ||||||||||||||||||||||||||||||||||||
Year to which this level will be maintained | N/A | 2029 | N/A | 2031 | NA | 2030 | ||||||||||||||||||||||||||||||||||||
Rate of increase of pensions | 1.60% | 1.60% | 1.60% | |||||||||||||||||||||||||||||||||||||||
Employee turnover rate* | 0.00%-1.38% | 0.00%-1.31% | 0.00%-1.12% |
* | Depending on years of service |
Puerto Rico: | ||
Mortality: | RP 2014, MSS 1 Tables. | |
Disability: | 1985 Pension Disability Table | |
Brazil: | ||
Mortality: | 2000 Basic AT Table for gender | |
Disability for assets: | UP 84 modified table for gender | |
Disability retirement: | 80 CSO Code Table | |
Rotation: | Probability of leaving the Company other than death, Disability and retirement is zero |
Telmex | ||
Mortality: | Mexican 2000 (CNSF) adjusted | |
Disability: | Mexican Social Security adjusted by Telmex experience | |
Turnover: | Telmex experience | |
Retirement: | Telmex experience |
-100 points | +100 points | |||||||
Discount rate | Ps. | 37,185,664 | Ps. | (38,604,684 | ) | |||
Health care cost trend rate | Ps. | (651,697 | ) | Ps. | 761,278 |
-100 points | +100 points | |||||||
Discount rate | Ps. | 32,094,727 | Ps. | (22,626,321 | ) | |||
Health care cost trend rat | Ps. | (431,724 | ) | Ps. | 499,356 |
benefit pension plans
Lausanne.
.
equalpayments. Depending on their time in service, their severance amounts to a multiple of their monthly compensation which comprises fixedbasic compensation plus variable elementscomponents such as overtime or bonuses. Maximum severance is equalbonuses, up to a multiplemaximum of twelve times the eligible monthly compensation.salaries. In case of death, the heirs of eligible employees receive 50% of the severance benefits. The primary risks to A1 Telekom Austria Group is exposed to the risk of development ofare salary increases and changes of interest rates.
Defined Contribution Plans
The unfunded liability represents Claro’s obligation for those participants that migrated from the DBP to the DCP. This liability is being paid over a term of 20 years as of January 1, 1999. Unpaid balances are adjusted monthly based on the yield of the asset portfolio at that date and is increased based on the General Price Index of Brazil plus 6 percentage points per year.
For the years ended December 31, 2016, 20172019, 2020 and 20182021 the cost (income) of labor were Ps. (935),3,365, Ps. 3742,930 and Ps. 2,377,
601,476).
Long- term
Balance at December 31, 2016 | Applications | Balance at December 31, 2017 | ||||||||||||||||||||||
Effect of translation | Increase of the year | Payments | Reversals | |||||||||||||||||||||
Long-term direct employee benefits | Ps. | 11,251,499 | Ps. | 795,581 | Ps. | 771,274 | Ps. | (2,077,632 | ) | Ps. | (582,686 | ) | Ps. | 10,158,036 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at December 31, 2017 | Applications | Balance at December 31, 2018 | ||||||||||||||||||||||
Effect of translation | Increase of the year | Payments | Reversals | |||||||||||||||||||||
Long-term direct employee benefits | Ps. | 10,158,036 | Ps. | (493,795 | ) | Ps. | 1,750,831 | Ps. | (2,079,880 | ) | Ps. | (1,223,414 | ) | Ps. | 8,111,778 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2019 | Effect of translation | Increase of the year | Payments | Balance at December 31, 2020 | ||||||||||||||||
Long-term direct employee benefits | Ps. | 8,175,767 | Ps. | 1,256,880 | Ps. | 1,729,392 | Ps. | (2,411,436 | ) | Ps. | 8,750,603 | |||||||||
Balance at December 31, 2020 | Effect of translation | Increase of the year | Payments | Balance at December 31, 2021 | ||||||||||||||||
Long-term direct employee benefits | Ps. | 8,750,603 | Ps. | (328,619 | ) | Ps. | 1,824,693 | Ps. | (2,320,831 | ) | Ps. | 7,925,846 | ||||||||
�� |
18.
December 31, 2017 | ||||||||||||
Loans and Receivables | Fair value through profit or loss | Fair value through OCI | ||||||||||
Financial Assets: | ||||||||||||
Equity investments at fair value through OCI and other short term investments | Ps. | 12,438,019 | Ps. | — | Ps. | 46,682,657 | ||||||
Accounts receivable from subscribers, distributors, contractual assets and other | 163,085,537 | — | — | |||||||||
Related parties | 868,230 | — | — | |||||||||
Derivative financial instruments | — | 8,037,384 | — | |||||||||
|
|
|
|
|
| |||||||
Total | Ps. | 176,391,786 | Ps. | 8,037,384 | Ps. | 46,682,657 | ||||||
|
|
|
|
|
| |||||||
Financial Liabilities: | ||||||||||||
Debt | Ps. | 697,884,899 | Ps. | — | Ps. | — | ||||||
Accounts payable | 212,673,407 | — | — | |||||||||
Related parties | 2,540,412 | — | — | |||||||||
Derivative financial instruments | — | 14,359,460 | — | |||||||||
|
|
|
|
|
| |||||||
Total | Ps. | 913,098,718 | Ps. | 14,359,460 | Ps. | — | ||||||
|
|
|
|
|
|
December 31, 2018 | ||||||||||||
Loans and Receivables | Fair value through profit or loss | Fair value through OCI | ||||||||||
Financial Assets: | ||||||||||||
Equity investments at fair value through OCI and other short term investments | Ps. | 9,987,851 | Ps. | — | Ps. | 39,028,083 | ||||||
Accounts receivable from subscribers, distributors, contractual assets and other | 185,202,494 | — | — | |||||||||
Related parties | 1,263,605 | — | — | |||||||||
Derivative financial instruments | — | 5,287,548 | — | |||||||||
|
|
|
|
|
| |||||||
Total | Ps. | 196,453,950 | Ps. | 5,287,548 | Ps. | 39,028,083 | ||||||
|
|
|
|
|
| |||||||
Financial Liabilities: | ||||||||||||
Debt | Ps. | 638,922,453 | Ps. | — | Ps. | — | ||||||
Accounts payable | 221,957,267 | — | — | |||||||||
Related parties | 2,974,213 | — | — | |||||||||
Derivative financial instruments | — | 17,107,579 | — | |||||||||
|
|
|
|
|
| |||||||
Total | Ps. | 863,853,933 | Ps. | 17,107,579 | Ps. | — | ||||||
|
|
|
|
|
|
December 31, 2020 | ||||||||||||
Loans and Receivables | Fair value through profit or loss | Fair value through OCI | ||||||||||
Financial Assets: | ||||||||||||
Equity investments at fair value through OCI and other short term investments | Ps. | 62,940 | Ps. | — | Ps. | 50,033,111 | ||||||
Accounts receivable from subscribers, distributors, contractual assets and other | 171,213,415 | — | — | |||||||||
Related parties | 1,391,300 | — | — | |||||||||
Derivative financial instruments (Note 7) | — | 20,928,335 | — | |||||||||
Total current assets | 172,667,655 | 20,928,335 | 50,033,111 | |||||||||
Non-current assets | ||||||||||||
Debt instruments at fair value through OCI | 0 | — | 4,540,344 | |||||||||
Total | Ps. | 172,667,655 | Ps. | 20,928,335 | Ps. | 54,573,455 | ||||||
Financial Liabilities: | ||||||||||||
Debt | Ps. | 628,382,956 | Ps. | — | Ps. | — | ||||||
Liability related to right-of-use of assets | 109,327,241 | — | — | |||||||||
Accounts payable | 186,995,472 | — | — | |||||||||
Related parties | 3,999,916 | — | — | |||||||||
Derivative financial instruments (Note 7) | — | 14,230,249 | — | |||||||||
Total | Ps. | 928,705,585 | Ps. | 14,230,249 | Ps. | — | ||||||
December 31, 2021 | ||||||||||||
Loans and Receivables | Fair value through profit or loss | Fair value through OCI | ||||||||||
Financial Assets: | ||||||||||||
Equity investments at fair value through OCI and other short term investments | Ps. | 15,026 | Ps. | — | Ps. | 117,688,176 | ||||||
Accounts receivable from subscribers, distributors, contractual assets and other | 166,041,321 | — | — | |||||||||
Related parties | 1,158,611 | — | — | |||||||||
Derivative financial instruments (Note 7) | — | 10,130,806 | — | |||||||||
Total current assets | 167,214,958 | 10,130,806 | 117,688,176 | |||||||||
Non-current assets | ||||||||||||
Debt instruments at fair value through OCI | — | — | 6,894,757 | |||||||||
Total | Ps. | 167,214,958 | Ps. | 10,130,806 | Ps. | 124,582,933 | ||||||
Financial Liabilities: | ||||||||||||
Debt | Ps. | 564,030,102 | Ps. | — | Ps. | — | ||||||
Liability related to right-of-use of assets | 98,654,225 | — | — | |||||||||
Accounts payable | 201,341,806 | — | — | |||||||||
Related parties | 4,216,882 | — | — | |||||||||
Derivative financial instruments (Note 7) | — | 10,034,508 | — | |||||||||
Total | Ps. | 868,243,015 | Ps. | 10,034,508 | Ps. | — | ||||||
Measurement of fair value at December 31, 2017 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Equity investments at fair value through OCI and other short-term investments | Ps. | 46,682,657 | Ps. | 12,438,019 | Ps. | — | Ps. | 59,120,676 | ||||||||
Derivative financial instruments | — | 8,037,384 | — | 8,037,384 | ||||||||||||
Pension plan assets | 218,518,358 | 9,039,270 | 130,976 | 227,688,604 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | Ps. | 265,201,015 | Ps. | 29,514,673 | Ps. | 130,976 | Ps. | 294,846,664 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities: | ||||||||||||||||
Debt | Ps. | 691,769,785 | Ps. | 63,147,153 | Ps. | — | Ps. | 754,916,938 | ||||||||
Derivative financial instruments | — | 14,359,460 | — | 14,359,460 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | Ps. | 691,769,785 | Ps. | 77,506,613 | Ps. | — | Ps. | 769,276,398 | ||||||||
|
|
|
|
|
|
|
|
Measurement of fair value at December 31, 2018 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Equity investments at fair value through OCI and other short-term investments | Ps. | 39,028,083 | Ps. | 9,987,851 | Ps. | — | Ps. | 49,015,934 | ||||||||
Derivative financial instruments | — | 5,287,548 | — | 5,287,548 | ||||||||||||
Pension plan assets | 186,557,731 | 17,096,344 | 17,047 | 203,671,122 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | Ps. | 225,585,814 | Ps. | 32,371,743 | Ps. | 17,047 | Ps. | 257,974,604 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities: | ||||||||||||||||
Debt | Ps. | 594,713,342 | Ps. | 99,723,251 | Ps. | — | Ps. | 694,436,593 | ||||||||
Derivative financial instruments | 17,107,579 | — | 17,107,579 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | Ps. | 594,713,342 | Ps. | 116,830,830 | Ps. | — | Ps. | 711,544,172 | ||||||||
|
|
|
|
|
|
|
|
Measurement of fair value at December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Equity investments at fair value through OCI and other short-term investments | Ps. | 50,033,111 | Ps. | 62,940 | Ps. | — | Ps. | 50,096,051 | ||||||||
Derivative financial instruments (Note 7) | — | 20,928,335 | — | 20,928,335 | ||||||||||||
Revalued of assets (Note 23) | — | — | 107,152,628 | 107,152,628 | ||||||||||||
Pension plan assets (Note 18) | 168,939,091 | 22,589,392 | 21,100 | 191,549,583 | ||||||||||||
Total current assets | 218,972,202 | 43,580,667 | 107,173,728 | 369,726,597 | ||||||||||||
Debt instruments at fair value through OCI | — | 4,540,344 | — | 4,540,344 | ||||||||||||
Total | Ps. | 218,972,202 | Ps. | 48,121,011 | Ps. | 107,173,728 | Ps. | 374,266,941 | ||||||||
Liabilities: | ||||||||||||||||
Debt | Ps. | 578,712,562 | Ps. | 135,645,912 | Ps. | — | Ps. | 714,358,474 | ||||||||
Liability related to right-of-use of assets | 109,327,241 | — | — | 109,327,241 | ||||||||||||
Derivative financial instruments (Note 7) | — | 14,230,249 | — | 14,230,249 | ||||||||||||
Total | Ps. | 688,039,803 | Ps. | 149,876,161 | Ps. | — | Ps. | 837,915,964 | ||||||||
Measurement of fair value at December 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Equity investments at fair value through OCI and other short-term investments | Ps. | 117,688,176 | Ps. | 15,026 | Ps. | — | Ps. | 117,703,202 | ||||||||
Derivative financial instruments (Note 7) | — | 10,130,806 | — | 10,130,806 | ||||||||||||
Revalued of assets (Note 23) | — | — | 98,172,675 | 98,172,675 | ||||||||||||
Pension plan assets (Note 18) | 196,148,604 | 22,124,138 | 54,440 | 218,327,182 | ||||||||||||
Total current assets | 313,836,780 | 32,269,970 | 98,227,115 | 444,333,865 | ||||||||||||
Debt instruments at fair value through OCI | — | 6,894,757 | — | 6,894,757 | ||||||||||||
Total | Ps. | 313,836,780 | Ps. | 39,164,727 | Ps. | 98,227,115 | Ps. | 451,228,622 | ||||||||
Liabilities: | ||||||||||||||||
Debt | Ps. | 440,660,165 | Ps. | 180,122,540 | Ps. | — | Ps. | 620,782,705 | ||||||||
Liability related to right-of-use of assets | 98,654,225 | — | — | 98,654,225 | ||||||||||||
Derivative financial instruments | — | 10,034,508 | — | 10,034,508 | ||||||||||||
Total | Ps. | 539,314,390 | Ps. | 190,157,048 | Ps. | — | Ps. | 729,471,438 | ||||||||
For
At January 1, 2017 | Cash flow | Foreign currency exchange and other | At December 31, 2017 | |||||||||||||
Total liabilities from financing activities | Ps. | 707,801,403 | Ps. | (27,433,489 | ) | Ps. | 17,516,985 | Ps. | 697,884,899 | |||||||
|
|
|
|
|
|
|
| |||||||||
At January 1, 2018 | Cash flow | Foreign currency exchange and other | At December 31, 2018 | |||||||||||||
Total liabilities from financing activities | Ps. | 697,884,899 | Ps. | (34,050,923 | ) | Ps. | (24,911,523 | ) | Ps. | 638,922,453 | ||||||
|
|
|
|
|
|
|
|
19.
At 2019 | Cash flow | Foreign currency exchange and other | At December 31, 2020 | |||||||||||||
Debt | Ps. | 624,254,477 | Ps. | (53,091,801 | ) | Ps. | 57,220,280 | Ps. | 628,382,956 | |||||||
Liability related to right-of-use of assets | 120,596,733 | (29,623,565 | ) | 18,354,073 | 109,327,241 | |||||||||||
Total liabilities from financing activities | Ps. | 744,851,210 | Ps. | (82,715,366 | ) | Ps. | 75,574,353 | Ps. | 737,710,197 | |||||||
At December 31, 2020 | Cash flow | Foreign currency exchange and other | At December 31, 2021 | |||||||||||||
Debt | Ps. | 628,382,956 | Ps. | (58,354,281 | ) | Ps. | (5,998,573 | ) | Ps. | 564,030,102 | ||||||
Liability related to right-of-use of assets | 109,327,241 | (30,544,750 | ) | 19,871,734 | 98,654,225 | |||||||||||
Total liabilities from financing activities | Ps. | 737,710,197 | Ps. | (88,899,031 | ) | Ps. | 13,873,161 | Ps. | 662,684,327 | |||||||
For the years ended December 31, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
Net profit for the period attributable | Ps. | 8,649,427 | Ps. | 29,325,921 | Ps. | 52,566,197 | ||||||
Weighted average shares (in millions) | 65,693 | 65,909 | 66,055 | |||||||||
|
|
|
|
|
| |||||||
Earnings per share attributable to | 0.13 | 0.44 | 0.79 | |||||||||
|
|
|
|
|
|
Subordinated Perpetual Fixed Rate Bond
On January 3, 2018, the Company decided to call and redeem the Telekom Austria subordinated perpetual Fixed Rate Bond (hybrid bond) amounting to 600 million of Euros, according to the terms and conditions of the bond, at its nominal value plus all interest on February 1, 2018, the first call date. The Company paid an amount of Ps 13,440,120.
20.
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Net profit for the period attributable to equity holders of the parent from continuing operations | Ps. | 57,886,001 | Ps. | 29,859,980 | Ps. | 70,712,449 | ||||||
Net profit for the period attributable to equity holders of the parent from discontinued operations | 9,844,889 | 16,992,625 | 121,710,718 | |||||||||
Net profit for the period attributable to equity holders of the parent | 67,730,890 | 46,852,605 | 192,423,167 | |||||||||
Weighted average shares (in millions) | 66,016 | 66,265 | 65,967 | |||||||||
Earnings per share attributable to equity holders of the parent continuing operations | Ps. | 0.88 | Ps. | 0.45 | Ps. | 1.07 | ||||||
Earnings per share attributable to equity holders of the parent discontinued operations | Ps. | 0.15 | Ps. | 0.26 | Ps. | 1.85 | ||||||
loss (income)
For the years ended December 31, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
Controlling interest: | ||||||||||||
Valuation of the derivative financial instruments, net of deferred taxes | Ps. | 48,496 | Ps. | 12,292 | Ps. | — | ||||||
Unrealized (loss) gain on equity investments at fair value, net of deferred taxes | (6,673,731 | ) | 622,424 | (3,765,688 | ) | |||||||
Translation effect of foreign entities | 104,178,880 | (21,683,333 | ) | (61,223,458 | ) | |||||||
Remeasurement of defined benefit plan, net of deferred taxes | 14,771,770 | (7,075,606 | ) | 652,722 | ||||||||
Non-controlling interest of the items above | 3,322,090 | 3,402,973 | (2,986,018 | ) | ||||||||
|
|
|
|
|
| |||||||
Other comprehensive (loss) income | Ps. | 115,647,505 | Ps. | (24,721,250 | ) | Ps. | (67,322,442 | ) | ||||
|
|
|
|
|
|
21.
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Controlling interest: | ||||||||||||
Unrealized gain (loss) on equity investments at fair value, net of deferred taxes | Ps. | 883,409 | Ps. | (1,952,414 | ) | Ps. | 4,560,869 | |||||
Translation effect of foreign entities | (34,010,066 | ) | (13,558,774 | ) | (4,837,206 | ) | ||||||
Translation effect by discontinued operations | — | — | (829,163 | ) | ||||||||
Remeasurement of defined benefit plan, net of deferred taxes | (29,153,554 | ) | (10,026,454 | ) | 11,100,835 | |||||||
Asset’s revaluation surplus net of deferred taxes | — | 64,835,155 | — | |||||||||
Non-controlling interest of the items above | (1,908,304 | ) | 14,165,249 | (2,135,886 | ) | |||||||
Other comprehensive (loss) income | Ps. | (64,188,515 | ) | Ps. | 53,462,762 | Ps. | 7,859,449 | |||||
For the years ended December 31, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
Controlling interest: | ||||||||||||
(Loss) gain in valuation of derivatives, net | Ps. | (9,622,233 | ) | Ps. | 8,192,567 | Ps. | (4,686,407 | ) | ||||
Capitalized interest expense (Note 10 d) | 2,861,307 | 2,875,034 | 2,020,288 | |||||||||
Commissions | (2,034,972 | ) | (1,263,701 | ) | (1,901,473 | ) | ||||||
Interest cost of labor obligations (Note 17) | (9,178,513 | ) | (8,722,611 | ) | (9,968,526 | ) | ||||||
Interest expense on taxes | (245,922 | ) | (1,503,981 | ) | (555,921 | ) | ||||||
Dividend received (Note 4) | 5,740,092 | 2,385,559 | 2,605,333 | |||||||||
Gain on net monetary positions (Note 2i, c) | — | — | 4,429,145 | |||||||||
Other financial cost | (3,745,600 | ) | (3,906,627 | ) | (2,118,755 | ) | ||||||
|
|
|
|
|
| |||||||
Total | Ps. | (16,225,841 | ) | Ps. | (1,943,760 | ) | Ps. | (10,176,316 | ) | |||
|
|
|
|
|
|
22.
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Controlling interest: | ||||||||||||
Gain (loss) in valuation of derivatives, net | Ps. | 4,432,023 | Ps. | 12,378,193 | Ps. | (6,755,214 | ) | |||||
Capitalized interest expense (Note 10 b) | 2,233,358 | 1,771,613 | 1,527,259 | |||||||||
Commissions | (2,820,477 | ) | (1,135,082 | ) | (1,071,935 | ) | ||||||
Interest cost of labor obligations (Note 18) | (11,377,054 | ) | (13,105,693 | ) | (14,375,520 | ) | ||||||
Interest expense on taxes | (516,522 | ) | (59,032 | ) | (243,075 | ) | ||||||
Dividend received (Note 4) | 1,773,336 | 2,122,826 | 2,628,600 | |||||||||
Gain on net monetary positions | 4,267,194 | 3,262,512 | 4,876,842 | |||||||||
Other financial cost (i) | (4,989,702 | ) | (3,942,459 | ) | (837,023 | ) | ||||||
Total with discontinued operations | Ps. | (6,997,844 | ) | Ps. | 1,292,878 | Ps. | (14,250,066 | ) | ||||
(i) | Includes discontinued operations of Tracfone (See note 2, Ac) |
Mexico | Telmex | Brazil | Southern Cone | Colombia | Andean | Central America | U.S.A. | Caribbean | Europe | Eliminations | Consolidated total | |||||||||||||||||||||||||||||||||||||
At December 31 2016 (in Ps.): | ||||||||||||||||||||||||||||||||||||||||||||||||
External revenues | 187,127,903 | 93,343,612 | 193,796,237 | 71,553,356 | 67,330,768 | 55,825,972 | 42,131,666 | 140,856,365 | 36,467,781 | 86,978,828 | — | 975,412,488 | ||||||||||||||||||||||||||||||||||||
Intersegment revenues | 16,438,858 | 8,872,248 | 3,560,388 | 776,719 | 257,767 | 304,834 | 289,465 | — | 30,210 | — | (30,530,489 | ) | — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total revenues | 203,566,761 | 102,215,860 | 197,356,625 | 72,330,075 | 67,588,535 | 56,130,806 | 42,421,131 | 140,856,365 | 36,497,991 | 86,978,828 | (30,530,489 | ) | 975,412,488 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 16,451,496 | 17,150,013 | 47,170,935 | 9,739,634 | 11,283,749 | 7,764,474 | 10,474,681 | 1,073,623 | 5,225,498 | 22,525,050 | (333,232 | ) | 148,525,921 | |||||||||||||||||||||||||||||||||||
Operating income | 48,219,505 | 12,275,892 | 6,325,323 | 8,317,053 | 11,209,959 | 6,086,638 | 3,830,974 | 1,220,601 | 6,143,183 | 5,388,595 | 592,587 | 109,610,310 | ||||||||||||||||||||||||||||||||||||
Interest income | 28,659,372 | 303,915 | 3,747,684 | 2,649,539 | 104,304 | 944,945 | 462,779 | 239,797 | 691,132 | 286,784 | (33,897,656 | ) | 4,192,595 | |||||||||||||||||||||||||||||||||||
Interest expense | 32,004,944 | 1,135,552 | 22,970,335 | 5,049,457 | 1,079,989 | 1,147,380 | 411,597 | — | 143,322 | 2,953,033 | (33,033,597 | ) | 33,862,012 | |||||||||||||||||||||||||||||||||||
Income tax | 2,502,242 | 921,803 | (4,294,040 | ) | 2,021,090 | 4,456,750 | 1,768,066 | 3,291,776 | 767,295 | 2,542,080 | (2,578,206 | ) | — | 11,398,856 | ||||||||||||||||||||||||||||||||||
Equity interest in net income | 67,472 | 116,368 | (270 | ) | (23,319 | ) | — | — | 171 | — | — | 29,528 | — | 189,950 | ||||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent | 378,150 | 902,282 | (10,357,493 | ) | 3,765,015 | 4,022,633 | 3,621,863 | 538,890 | 987,790 | 3,318,960 | 7,065,769 | (5,594,432 | ) | 8,649,427 | ||||||||||||||||||||||||||||||||||
Assets by segment | 1,070,598,204 | 161,133,722 | 461,831,754 | 140,617,162 | 103,361,235 | 113,839,981 | 80,832,029 | 42,812,349 | 93,941,695 | 227,288,156 | (981,214,013 | ) | 1,515,042,274 | |||||||||||||||||||||||||||||||||||
Plant, property and equipment, net | 64,893,242 | 112,220,236 | 203,270,555 | 67,023,143 | 59,690,886 | 37,716,772 | 41,808,573 | 1,949,166 | 33,854,428 | 78,763,065 | — | 701,190,066 | ||||||||||||||||||||||||||||||||||||
Goodwill | 27,186,328 | 213,926 | 26,106,622 | 3,006,448 | 14,659,891 | 5,948,335 | 5,652,268 | 3,464,217 | 14,186,723 | 52,207,877 | — | 152,632,635 | ||||||||||||||||||||||||||||||||||||
Trademarks, net | 615,318 | 307,881 | 366,727 | — | 194 | — | — | 788,228 | 284,665 | 10,203,880 | — | 12,566,893 | ||||||||||||||||||||||||||||||||||||
Licenses and rights, net | 5,887,092 | 42,867 | 41,496,209 | 8,760,860 | 4,603,793 | 12,882,210 | 3,993,120 | — | 7,694,798 | 30,670,315 | — | 116,031,264 | ||||||||||||||||||||||||||||||||||||
Investment in associated companies | 7,605,220 | 2,218,824 | 699 | 81,284 | 470 | — | 17,390 | — | — | 1,072,778 | (7,393,181 | ) | 3,603,484 | |||||||||||||||||||||||||||||||||||
Liabilities by segments | 798,044,609 | 117,663,161 | 349,915,118 | 124,149,687 | 40,811,337 | 52,949,608 | 38,095,161 | 41,369,767 | 44,790,656 | 121,928,202 | (485,698,799 | ) | 1,244,018,507 | |||||||||||||||||||||||||||||||||||
At December 31, 2017 (in Ps.): | ||||||||||||||||||||||||||||||||||||||||||||||||
External revenues | 190,022,612 | 89,731,238 | 210,536,673 | 81,092,885 | 72,435,460 | 56,393,595 | 44,094,835 | 148,589,487 | 35,092,578 | 93,644,172 | — | 1,021,633,535 | ||||||||||||||||||||||||||||||||||||
Intersegment revenues | 16,748,428 | 8,753,525 | 4,785,601 | 1,250,983 | 304,555 | 177,856 | 187,086 | 44 | 122,656 | — | (32,330,734 | ) | — | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total revenues | 206,771,040 | 98,484,763 | 215,322,274 | 82,343,868 | 72,740,015 | 56,571,451 | 44,281,921 | 148,589,531 | 35,215,234 | 93,644,172 | (32,330,734 | ) | 1,021,633,535 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 17,030,251 | 18,902,238 | 51,486,652 | 10,639,591 | 12,373,790 | 8,328,705 | 9,668,439 | 1,594,727 | 5,349,757 | 25,222,962 | (422,170 | ) | 160,174,942 | |||||||||||||||||||||||||||||||||||
Operating income (loss) | 50,666,028 | 7,921,524 | 11,601,369 | 11,676,427 | (4,704,165 | ) | 5,650,477 | 5,252,401 | 2,915,123 | 4,752,168 | 4,523,857 | (111,906 | ) | 100,143,303 | ||||||||||||||||||||||||||||||||||
Interest income | 30,083,437 | 619,748 | 3,792,242 | 2,884,613 | 211,521 | 1,793,974 | 1,064,992 | 394,196 | 1,111,980 | 307,021 | (39,338,076 | ) | 2,925,648 | |||||||||||||||||||||||||||||||||||
Interest expense | 32,185,868 | 1,028,593 | 23,578,083 | 4,637,989 | 1,955,688 | 1,573,929 | 485,684 | — | 377,727 | 2,035,716 | (37,558,496 | ) | 30,300,781 | |||||||||||||||||||||||||||||||||||
Income tax | 18,142,482 | 387,145 | (2,991,377 | ) | 3,535,302 | (1,874,594 | ) | 1,806,085 | 2,025,618 | 1,803,555 | 3,529,253 | (1,417,358 | ) | (4,600 | ) | 24,941,511 | ||||||||||||||||||||||||||||||||
Equity interest in net income (loss) of associated companies | 99,044 | 16,564 | (232 | ) | (9,801 | ) | — | — | — | — | — | (14,190 | ) | — | 91,385 | |||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent | 26,321,442 | 184,387 | (6,617,381 | ) | 4,421,938 | (6,209,530 | ) | 1,595,382 | 3,713,301 | 1,793,875 | 1,262,073 | 5,656,132 | (2,795,698 | ) | 29,325,921 | |||||||||||||||||||||||||||||||||
Assets by segment | 1,033,036,406 | 170,402,561 | 428,281,963 | 133,136,177 | 108,362,023 | 113,478,626 | 81,529,691 | 40,761,830 | 88,672,466 | 203,858,243 | (915,308,134 | ) | 1,486,211,852 | |||||||||||||||||||||||||||||||||||
Plant, property and equipment, net | 59,137,555 | 109,713,770 | 187,459,628 | 69,006,093 | 57,060,931 | 35,930,966 | 39,050,481 | 1,693,642 | 32,173,524 | 85,116,608 | — | 676,343,198 | ||||||||||||||||||||||||||||||||||||
Goodwill | 27,102,384 | 213,926 | 24,708,739 | 3,073,444 | 13,981,033 | 6,113,495 | 5,597,990 | 3,341,956 | 14,186,723 | 53,143,542 | — | 151,463,232 | ||||||||||||||||||||||||||||||||||||
Trademarks, net | 406,723 | 274,786 | 246,557 | — | — | — | — | 631,024 | 262,641 | 8,116,076 | — | 9,937,807 | ||||||||||||||||||||||||||||||||||||
Licenses and rights, net | 11,457,720 | 13,175 | 35,662,305 | 8,885,086 | 4,197,498 | 11,295,202 | 3,376,106 | — | 7,276,039 | 31,141,255 | — | 113,304,386 | ||||||||||||||||||||||||||||||||||||
Investment in associated companies | 469,662 | 546,872 | 640 | 63,110 | 451 | — | 16,999 | — | — | 806,950 | 1,830,488 | 3,735,172 | ||||||||||||||||||||||||||||||||||||
Liabilities by segments | 794,598,013 | 133,428,178 | 322,620,030 | 119,123,646 | 54,756,152 | 48,656,628 | 35,501,900 | 38,249,957 | 43,978,410 | 119,240,533 | (484,575,112 | ) | 1,225,578,335 |
At December 31, 2018 (in Ps.): | ||||||||||||||||||||||||||||||||||||||||||||||||
External revenues | 207,610,244 | 86,339,289 | 188,712,666 | 89,149,978 | 75,460,428 | 55,633,192 | 44,883,585 | 153,266,315 | 36,435,541 | 100,716,443 | — | 1,038,207,681 | ||||||||||||||||||||||||||||||||||||
Intersegment revenues | 16,946,543 | 9,741,908 | 4,593,760 | 13,200,358 | 344,517 | 154,082 | 149,445 | — | 204,294 | — | (45,334,907 | ) | — | |||||||||||||||||||||||||||||||||||
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Total revenues | 224,556,787 | 96,081,197 | 193,306,426 | 102,350,336 | 75,804,945 | 55,787,274 | 45,033,030 | 153,266,315 | 36,639,835 | 100,716,443 | (45,334,907 | ) | 1,038,207,681 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 17,619,342 | 18,358,248 | 42,857,751 | 13,526,361 | 13,464,867 | 8,516,960 | 8,940,655 | 1,545,395 | 5,036,831 | 26,838,972 | (992,802 | ) | 155,712,580 | |||||||||||||||||||||||||||||||||||
Operating income (loss) | 57,450,599 | 8,085,764 | 23,494,903 | 16,975,797 | 14,388,552 | 5,003,915 | 4,867,763 | 2,665,270 | 5,811,846 | 4,731,562 | (3,918,800 | ) | 139,557,171 | |||||||||||||||||||||||||||||||||||
Interest income | 26,578,280 | 420,380 | 11,303,888 | 2,251,474 | 1,013,839 | 1,666,879 | 1,566,086 | 559,548 | 1,458,874 | 122,133 | (36,295,212 | ) | 10,646,169 | |||||||||||||||||||||||||||||||||||
Interest expense | 32,526,258 | 1,153,913 | 20,377,191 | 4,338,941 | 2,913,881 | 1,719,663 | 509,081 | — | 561,867 | 1,973,431 | (34,302,793 | ) | 31,771,433 | |||||||||||||||||||||||||||||||||||
Income tax | 28,842,505 | 643,377 | 4,026,444 | 1,390,039 | 2,251,877 | 2,498,666 | 2,533,600 | 810,898 | 2,774,204 | 707,093 | (1,624 | ) | 46,477,079 | |||||||||||||||||||||||||||||||||||
Equity interest in net income (loss) of associated companies | (5,962 | ) | 44,965 | (152 | ) | (20,871 | ) | — | — | — | — | — | (17,713 | ) | — | 267 | ||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent | 23,185,029 | (2,201,572 | ) | 3,530,653 | 6,065,703 | 9,165,801 | 1,730,933 | 2,821,733 | 2,820,505 | 3,644,697 | 3,809,694 | (2,006,979 | ) | 52,566,197 | ||||||||||||||||||||||||||||||||||
Assets by segment | 970,564,314 | 174,461,398 | 390,791,480 | 127,946,573 | 111,975,598 | 96,347,779 | 81,640,157 | 38,814,907 | 102,531,547 | 186,135,358 | (851,985,719 | ) | 1,429,223,392 | |||||||||||||||||||||||||||||||||||
Plant, property and equipment, net | 56,056,634 | 103,737,293 | 173,197,708 | 62,988,635 | 51,422,548 | 35,800,477 | 37,146,601 | 1,356,237 | 38,011,242 | 80,421,642 | (138,297 | ) | 640,000,720 | |||||||||||||||||||||||||||||||||||
Goodwill | 27,104,632 | 215,381 | 21,388,124 | 2,796,759 | 12,770,380 | 5,242,365 | 5,466,871 | 3,328,533 | 14,186,723 | 53,066,729 | — | 145,566,497 | ||||||||||||||||||||||||||||||||||||
Trademarks, net | 227,774 | 243,556 | 124,910 | — | — | — | — | 507,033 | 249,984 | 3,313,948 | — | 4,667,205 | ||||||||||||||||||||||||||||||||||||
Licenses and rights, net | 10,573,147 | — | 25,873,910 | 12,555,496 | 3,400,235 | 9,651,582 | 3,605,416 | — | 10,294,336 | 27,344,273 | — | 103,298,395 | ||||||||||||||||||||||||||||||||||||
Investment in associated companies | 5,621,661 | 563,667 | 543 | 20,697 | 412 | — | 24,262 | — | — | 748,674 | (3,847,209 | ) | 3,132,707 | |||||||||||||||||||||||||||||||||||
Liabilities by segments | 748,965,728 | 136,993,838 | 298,308,084 | 94,550,901 | 56,211,438 | 50,064,761 | 28,592,953 | 35,552,678 | 58,716,154 | 117,214,746 | (441,820,311 | ) | 1,183,350,970 |
23.
Mexico | Telmex | Brazil | Southern Cone | Colombia | Andean | Central America | U.S.A.(1) | Caribbean | Europe | Eliminations | Consolidated total | |||||||||||||||||||||||||||||||||||||
As of and for the year ended December 31, 2019 (in Ps.): | ||||||||||||||||||||||||||||||||||||||||||||||||
External revenues | 226,164,231 | 84,173,980 | 177,596,077 | 54,230,682 | 74,274,684 | 55,440,675 | 46,602,036 | — | 34,580,822 | 98,420,289 | — | 851,483,476 | ||||||||||||||||||||||||||||||||||||
Intersegment revenues | 11,676,015 | 11,863,364 | 4,182,248 | 11,041,705 | 361,386 | 92,249 | 132,061 | — | 1,136,879 | — | (40,485,907 | ) | — | |||||||||||||||||||||||||||||||||||
Total revenues | 237,840,246 | 96,037,344 | 181,778,325 | 65,272,387 | 74,636,070 | 55,532,924 | 46,734,097 | — | 35,717,701 | 98,420,289 | (40,485,907 | ) | 851,483,476 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 24,742,622 | 16,346,927 | 39,424,474 | 13,847,506 | 13,439,489 | 10,256,129 | 11,045,817 | — | 6,322,648 | 24,975,146 | (2,881,971 | ) | 157,518,787 | |||||||||||||||||||||||||||||||||||
Operating income (loss) | 67,694,409 | 9,731,852 | 28,846,565 | 4,007,614 | 15,324,977 | 8,023,002 | 5,712,068 | — | 5,741,368 | 8,687,862 | (9,971,433 | ) | 143,798,284 | |||||||||||||||||||||||||||||||||||
Interest income | 23,713,455 | 1,839,973 | 3,155,681 | 896,256 | 1,306,571 | 1,283,788 | 532,046 | — | 1,478,560 | 115,359 | (28,037,017 | ) | 6,284,672 | |||||||||||||||||||||||||||||||||||
Interest expense | 30,972,658 | 1,439,785 | 19,021,965 | 3,849,318 | 2,952,123 | 2,422,887 | 1,406,720 | — | 1,435,862 | 2,220,168 | (27,810,532 | ) | 37,910,954 | |||||||||||||||||||||||||||||||||||
Income tax | 30,000,511 | 1,528,229 | 4,251,116 | 2,022,336 | 5,405,452 | 1,681,159 | 2,355,380 | — | 719,774 | 1,946,255 | 3,843 | 49,914,055 | ||||||||||||||||||||||||||||||||||||
Equity interest in net income (loss) of associated companies | (3,732 | ) | 46,789 | (1,538 | ) | (23,424 | ) | — | — | (28,795 | ) | — | — | (6,909 | ) | — | (17,609 | ) | ||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent continues operations | 42,598,946 | (1,705,068 | ) | 5,618,095 | (6,984 | ) | 9,571,046 | (2,604,646 | ) | 2,335,963 | — | 4,312,630 | 5,051,145 | (7,285,126 | ) | 57,886,001 | ||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent discontinued operations | — | — | — | — | — | — | — | — | — | — | — | 9,844,889 | ||||||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent | 42,598,946 | (1,705,068 | ) | 5,618,095 | (6,984 | ) | 9,571,046 | (2,604,646 | ) | 2,335,963 | — | 4,312,630 | 5,051,145 | 2,559,763 | 67,730,890 | |||||||||||||||||||||||||||||||||
Assets by segment | 915,233,048 | 201,283,526 | 382,561,753 | 132,722,497 | 115,851,227 | 94,021,632 | 77,355,732 | 30,775,893 | 100,694,650 | 191,744,924 | (710,311,225 | ) | 1,531,933,657 | |||||||||||||||||||||||||||||||||||
Plant, property and equipment, net | 54,589,459 | 106,869,482 | 174,761,167 | 60,537,650 | 50,133,642 | 39,068,450 | 38,934,747 | 1,405,755 | 38,223,641 | 75,707,738 | (888,361 | ) | 639,343,370 | |||||||||||||||||||||||||||||||||||
Goodwill | 27,396,393 | 215,381 | 25,379,805 | 5,241,305 | 12,124,685 | 4,895,331 | 7,289,748 | 3,220,105 | 14,186,723 | 52,950,325 | — | 152,899,801 | ||||||||||||||||||||||||||||||||||||
Trademarks, net | 46,476 | 212,324 | 37,207 | — | — | — | — | 369,950 | 227,156 | 2,595,596 | — | 3,488,709 | ||||||||||||||||||||||||||||||||||||
Licenses and rights, net | 11,087,882 | 452,504 | 29,324,718 | 12,103,980 | 5,530,422 | 8,064,487 | 4,390,547 | — | 7,942,670 | 25,951,335 | — | 104,848,545 | ||||||||||||||||||||||||||||||||||||
Investment in associated companies | 3,562,323 | 610,807 | 111,073 | (7,806 | ) | 391 | — | 25,603 | — | — | — | (1,828,198 | ) | 2,474,193 | ||||||||||||||||||||||||||||||||||
Liabilities by segments | 718,354,229 | 175,774,964 | 297,877,328 | 103,330,525 | 55,576,253 | 55,463,339 | 37,993,180 | 31,557,816 | 54,276,868 | 124,319,541 | (349,497,251 | ) | 1,305,026,792 |
(1) | Restated for discontinued operations. |
Mexico | Telmex | Brazil | Southern Cone | Colombia | Andean | Central America | U.S.A. (1) | Caribbean | Europe | Eliminations | Consolidated total | |||||||||||||||||||||||||||||||||||||
As of and for the year ended December 31, 2020 (in Ps.): | ||||||||||||||||||||||||||||||||||||||||||||||||
External revenues | 214,578,600 | 77,920,910 | 163,865,421 | 55,484,744 | 77,282,658 | 53,846,358 | 48,073,436 | — | 37,182,842 | 111,472,191 | — | 839,707,160 | ||||||||||||||||||||||||||||||||||||
Intersegment revenues | 17,663,525 | 13,668,264 | 4,207,466 | 1,220,100 | 352,694 | 88,305 | 121,580 | — | 1,440,983 | — | (38,762,917 | ) | — | |||||||||||||||||||||||||||||||||||
Total revenues | 232,242,125 | 91,589,174 | 168,072,887 | 56,704,844 | 77,635,352 | 53,934,663 | 48,195,016 | — | 38,623,825 | 111,472,191 | (38,762,917 | ) | 839,707,160 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 24,748,756 | 13,341,479 | 41,795,397 | 13,095,004 | 14,413,760 | 11,447,356 | 14,355,899 | — | 7,094,331 | 25,593,204 | (3,202,788 | ) | 162,682,398 | |||||||||||||||||||||||||||||||||||
Operating income (loss) | 70,851,525 | 11,204,433 | 25,203,504 | 1,877,079 | 15,111,947 | 8,698,645 | 4,004,501 | — | 6,701,086 | 13,159,865 | (11,309,206 | ) | 145,503,379 | |||||||||||||||||||||||||||||||||||
Interest income | 21,322,406 | 1,479,021 | 2,904,430 | 980,581 | 822,447 | 1,049,261 | 1,130,767 | — | 1,105,420 | 90,746 | (25,823,043 | ) | 5,062,036 | |||||||||||||||||||||||||||||||||||
Interest expense | 30,936,195 | 1,306,867 | 17,976,227 | 3,334,966 | 2,586,708 | 2,223,478 | 1,559,917 | — | 1,658,619 | 2,546,255 | (25,467,747 | ) | 38,661,485 | |||||||||||||||||||||||||||||||||||
Income tax | 4,905,863 | 577,178 | (4,442,598 | ) | 992,831 | 2,078,789 | 3,115,693 | 1,518,953 | — | 2,524,214 | 2,234,065 | 4,282 | 13,509,270 | |||||||||||||||||||||||||||||||||||
Equity interest in net income (loss) of associated companies | (3,820 | ) | 23,955 | (2,972 | ) | (15,422 | ) | — | — | — | — | — | (288,747 | ) | — | (287,006 | ) | |||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent continues operations | 3,613,907 | (1,085,038 | ) | 4,963,424 | 1,456,062 | 16,579,303 | 4,649,047 | 1,919,558 | — | 3,294,111 | 7,777,426 | (13,307,820 | ) | 29,859,980 | ||||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent discontinued operations | — | — | — | — | — | — | — | — | — | — | — | 16,992,625 | ||||||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent | 3,613,907 | (1,085,038 | ) | 4,963,424 | 1,456,062 | 16,579,303 | 4,649,047 | 1,919,558 | — | 3,294,111 | 7,777,426 | 3,684,805 | 46,852,605 | |||||||||||||||||||||||||||||||||||
Assets by segment | 947,396,510 | 203,081,314 | 386,982,711 | 118,266,380 | 132,210,369 | 101,717,708 | 88,690,683 | 35,083,285 | 109,914,293 | 239,583,759 | (737,878,785 | ) | 1,625,048,227 | |||||||||||||||||||||||||||||||||||
Plant, property and equipment, net | 52,117,395 | 110,751,083 | 145,307,497 | 62,157,797 | 48,876,853 | 36,102,261 | 37,855,227 | 1,761,595 | 39,128,447 | 82,595,077 | (876,229 | ) | 615,777,003 | |||||||||||||||||||||||||||||||||||
Revalued of assets | — | — | 36,076,207 | 7,494,408 | 12,893,284 | 9,500,708 | 7,059,247 | — | 2,572,504 | 31,556,270 | — | 107,152,628 | ||||||||||||||||||||||||||||||||||||
Goodwill | 26,949,185 | 215,381 | 16,048,092 | 5,436,675 | 12,253,743 | 4,866,363 | 6,345,659 | 3,362,899 | 14,186,723 | 53,388,139 | — | 143,052,859 | ||||||||||||||||||||||||||||||||||||
Trademarks, net | 126,823 | 181,094 | — | — | — | — | — | 269,325 | 219,087 | 2,981,089 | — | 3,777,418 | ||||||||||||||||||||||||||||||||||||
Licenses and rights, net | 12,017,318 | 100,623 | 26,171,345 | 12,099,873 | 12,363,039 | 6,870,531 | 5,427,857 | — | 8,616,880 | 27,963,250 | — | 111,630,716 | ||||||||||||||||||||||||||||||||||||
Investment in associated companies | 51,645 | 613,449 | 64,125 | (20,970 | ) | 395 | — | 25,413 | — | — | — | 1,095,703 | 1,829,760 | |||||||||||||||||||||||||||||||||||
Liabilities by segments | 725,408,198 | 193,840,756 | 263,989,566 | 61,786,265 | 63,610,642 | 53,379,366 | 34,252,511 | 33,141,315 | 60,839,340 | 138,747,621 | (319,064,971 | ) | 1,309,930,609 |
(1) | Restated for discontinued operations. |
Mexico | Telmex | Brazil | Southern Cone | Colombia | Andean | Central America | Caribbean | Europe | Eliminations | Consolidated total | ||||||||||||||||||||||||||||||||||
As of and for the year ended December 31, 2021 (in Ps.): | ||||||||||||||||||||||||||||||||||||||||||||
External revenues | 225,219,719 | 87,189,642 | 148,729,232 | 62,030,033 | 79,312,071 | 52,888,323 | 48,468,386 | 37,858,979 | 113,838,486 | — | 855,534,871 | |||||||||||||||||||||||||||||||||
Intersegment revenues | 18,041,465 | 15,237,420 | 4,044,386 | 329,000 | 360,638 | 73,828 | 98,530 | 2,069,648 | — | (40,254,915 | ) | — | ||||||||||||||||||||||||||||||||
Total revenues | 243,261,184 | 102,427,062 | 152,773,618 | 62,359,033 | 79,672,709 | 52,962,151 | 48,566,916 | 39,928,627 | 113,838,486 | (40,254,915 | ) | 855,534,871 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 25,797,791 | 12,740,332 | 40,342,871 | 14,996,243 | 15,067,211 | 11,211,523 | 11,962,486 | 6,987,129 | 27,469,463 | (3,948,183 | ) | 162,626,866 | ||||||||||||||||||||||||||||||||
Operating income (loss) | 77,783,972 | 21,100,316 | 21,867,457 | 2,144,825 | 15,165,356 | 7,457,802 | 8,216,945 | 8,661,475 | 13,421,147 | (9,686,654 | ) | 166,132,641 | ||||||||||||||||||||||||||||||||
Interest income | 14,864,242 | 758,126 | 2,104,574 | 821,594 | 431,314 | 833,540 | 269,379 | 701,785 | 116,031 | (17,065,758 | ) | 3,834,827 | ||||||||||||||||||||||||||||||||
Interest expense | 24,586,641 | 1,385,103 | 15,875,138 | 2,987,751 | 2,240,707 | 1,213,421 | 1,219,061 | 1,066,733 | 2,414,415 | (16,963,658 | ) | 36,025,312 | ||||||||||||||||||||||||||||||||
Income tax | 25,002,390 | 2,496,010 | (9,603,701 | ) | (3,795,160 | ) | 3,112,946 | 2,375,281 | 2,945,700 | 2,171,594 | 3,438,161 | 1,548 | 28,144,769 | |||||||||||||||||||||||||||||||
Equity interest in net income (loss) of associated companies | 85,648 | 44,525 | 4,575 | (19,073 | ) | — | — | — | — | (1,757 | ) | — | 113,918 | |||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent continues operations | 34,195,093 | 4,594,450 | 14,185,905 | 415,994 | 5,959,563 | 4,180,473 | 4,099,930 | 5,151,166 | 8,313,018 | (10,383,143 | ) | 70,712,449 | ||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent discontinued operations | — | — | — | — | — | — | — | — | — | — | 121,710,718 | |||||||||||||||||||||||||||||||||
Net profit (loss) attributable to equity holders of the parent | 34,195,093 | 4,594,450 | 14,185,905 | 415,994 | 5,959,563 | 4,180,473 | 4,099,930 | 5,151,166 | 8,313,018 | (10,383,143 | ) | 192,423,167 | ||||||||||||||||||||||||||||||||
Assets by segment | 999,502,407 | 195,869,232 | 407,458,440 | 135,862,040 | 133,232,525 | 95,719,937 | 101,725,955 | 102,949,901 | 210,944,575 | (693,615,163 | ) | 1,689,649,849 | ||||||||||||||||||||||||||||||||
Plant, property and equipment, net | 50,420,866 | 118,056,718 | 153,607,199 | 64,864,986 | 48,888,907 | 34,395,339 | 42,407,727 | 41,601,009 | 79,764,422 | (983,169 | ) | 633,024,004 | ||||||||||||||||||||||||||||||||
Revalued of assets | — | — | 33,004,669 | 6,159,077 | 10,266,464 | 8,389,460 | 9,113,632 | 2,564,149 | 28,675,224 | — | 98,172,675 | |||||||||||||||||||||||||||||||||
Goodwill | 26,965,618 | 215,381 | 15,335,322 | 5,191,841 | 11,685,585 | 4,688,154 | 6,002,380 | 14,186,723 | 52,307,190 | — | 136,578,194 | |||||||||||||||||||||||||||||||||
Trademarks, net | 90,673 | 149,865 | — | — | — | — | — | 229,000 | 2,822,625 | — | 3,292,163 | |||||||||||||||||||||||||||||||||
Licenses and rights, net | 11,081,972 | 129,233 | 39,620,009 | 13,791,003 | 11,384,533 | 5,502,139 | 5,220,437 | 10,847,685 | 25,709,849 | — | 123,286,860 | |||||||||||||||||||||||||||||||||
Investment in associated companies | 4,725,279 | 522,403 | 65,699 | (34,401 | ) | 351 | — | 26,348 | — | — | (2,253,198 | ) | 3,052,481 | |||||||||||||||||||||||||||||||
Liabilities by segments | 679,954,783 | 176,177,522 | 273,655,967 | 72,702,285 | 65,631,866 | 44,676,727 | 42,823,861 | 53,885,848 | 134,357,142 | (308,257,878 | ) | 1,235,608,123 |
IFRS 16, Leases
Current or Non-current
IFRS 16 replaces IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease,SIC-15 Operating Leases- Incentives andSIC-27 Evaluating the Substance of Transactions Involving the Legal Formterms of a Lease. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a singleon-balance sheet model similar to the accounting for finance leases under IAS 17. liability not impact its classification
Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognize the amount of the remeasurement of the lease liability as an adjustment to theright-of-use asset.
Lessor accounting under IFRS 16 is substantially unchanged from today’s accounting under IAS 17. Lessors will continue to classify all leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases.
IFRS 16, which isamendments are effective for annual periods beginning on January 1, 2019, requires lessees and lessors to make more extensive disclosures than under IAS 17.
Transition to IFRS 16
The Company will adopt the IFRS 16 using the modified retrospectively method with the date of initial applications on January 1, 2019. Moreover, the Company will apply the new requirements regarding IFRS 16 to all contracts identified as leases under the current accounting standard and reassessed all services, in order to identify lease components or an implicit accounting lease within these contracts.
The Company will elect to use the exemptions applicable to the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application, and lease contracts for which the underlying asset is of low value. The Company has leases of certain office equipment (i.e., personal computers, printing and photocopying machines, mainly) that are considered low value assets.
The Company identified a significant number of lease assets such as towers, physical facilities (office buildings, stores and sites, mainly), circuits, among others. The implementation of IFRS 16 required a significant effort due to the fact of the need to make certain estimates, such as the leases term, based on thenon-cancelable period and the periods covered by options to extend the lease. AMX extended the lease terms beyond thenon-cancelable period only when it was reasonably certain to extend it. The reasonability of the extension is affected on several factors, such as regulation, business model, and geographical business strategies.
AMX expects that the changes in the implementation of IFRS 16 will have a significant impact on its financial statements from the date of adoption. The Company expects that the opening balances at the date of initial application will increase in right of use assets and lease liabilities between Ps.113,000,000 and Ps.132,000,000 without a material impact in equity.
Estimated initial impact are based on the assessment conducted to date and could have a difference because of the lease borrowing rate and the volume of contracts considered in the implementation process. The new accounting policies will not be final until the Company presents its first financial statements subsequent to the effective date of IFRS 16.
IFRS 17 Insurance Contracts
In May 2017, the IASB issued IFRS 17Insurance Contracts (IFRS 17), a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4Insurance Contracts (IFRS 4) that was issued in 2005. IFRS 17 applies to all types of insurance contracts (i.e., life,non-life, direct insurance andre-insurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. A few scope exceptions will apply. The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. In contrast to the requirements in IFRS 4, which are largely based on grandfathering previous local accounting policies, IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects. The core of IFRS 17 is the general model, supplemented by:
A specific adaptation for contracts with direct participation features (the variable fee approach)
A simplified approach (the premium allocation approach) mainly for short-duration contracts
IFRS 17 is effective for reporting periods beginning on or after January 1, January 2021, with comparative figures required.
Early application2023 and must be applied retrospectively. The Company is permitted, providedcurrently assessing the entity also applies IFRS 9impact the amendments will have on current practice and IFRS 15 on or beforewhether existing loan agreements may require renegotiation; however, the date it first applies IFRS 17.
The company is evaluating the effects, however, it doesamendments are not expect the adoption of this standardexpected to have a significant impact.
IFRIC Interpretation 23 Uncertainty over Income Tax Treatment
material impact on the Company.
The Interpretation specifically addressesbe capable of operating in the following:
Whethermanner intended by management. Instead, an entity considers uncertain tax treatments separately
recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The assumptions an entity makes about the examination of tax treatments by taxation authorities
How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates
How an entity considers changes in facts and circumstances
An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty should be
followed. The interpretationamendment is effective for annual reporting periods beginning on or after January 1, January 2019, but certain transition reliefs are available. The Company will apply the interpretation from its effective date. The Company will establish the processes2022 and procedures to obtain the necessary information to apply the Interpretation in a timely manner.
The company estimates that the adoption of this standard will not have a significant impact on its consolidated financial statements.
Amendments to IFRS 9: Prepayment Features with Negative Compensation
Under IFRS 9, a debt instrument can be measured at amortized cost or at fair value through other comprehensive income, provided that the contractual cash flows are ‘solely payments of principal and interest on the principal amount outstanding’ (the SPPI criterion) and the instrument is held within the appropriate business model for that classification. The amendments to IFRS 9 clarify that a financial asset passes the SPPI criterion regardless of the event or circumstance that causes the early termination of the contract and irrespective of which party pays or receives reasonable compensation for the early termination of the contract.
The amendments shouldmust be applied retrospectively to items of property, plant and are effective from 1 January 2019, with earlier application permitted. These amendments have no impact on the consolidated financial statements of the Company.
Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
The amendments address the conflict between IFRS 10 and IAS 28 in dealing with the loss of control of a subsidiary that is sold or contributed to an associate or joint venture. The amendments clarify that the gain or loss resulting from the sale or contribution of assets that constitute a business, as defined in IFRS 3, between an investor and its associate or joint venture, is recognized in full. Any gain or loss resulting from the sale or contribution of assets that do not constitute a business, however, is recognized only to the extent of unrelated investors’ interests in the associate or joint venture. The IASB has deferred the effective date of these amendments indefinitely, but an entity that early adopts the amendments must apply them prospectively. The Company will apply these amendments when they become effective.
Amendments to IAS 19: Plan Amendment, Curtailment or Settlement
The amendments to IAS 19 address the accounting when a plan amendment, curtailment or settlement occurs during a reporting period. The amendments specify that when a plan amendment, curtailment or settlement occurs during the annual reporting period, an entity is required to:
Determine current service costequipment made available for the remainder of the period after the plan amendment, curtailment or settlement, using the actuarial assumptions used to remeasure the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event.
Determine net interest for the remainder of the period after the plan amendment, curtailment or settlement using: the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event; and the discount rate used to remeasure that net defined benefit liability (asset).
The amendments also clarify that an entity first determines any past service cost, or a gain or loss on settlement, without considering the effect of the asset ceiling. This amount is recognized in profit or loss.
An entity then determines the effect of the asset ceiling after the plan amendment, curtailment or settlement. Any change in that effect, excluding amounts included in the net interest, is recognized in other comprehensive income.
The amendments apply to plan amendments, curtailments, or settlements occurringuse on or after the beginning of the earliest period presented when the entity first annual reporting period that beginsapplies the amendment. The amendments are not expected to have a material impact on or after 1 January 2019, with early application permitted. These amendments will apply only to any future plan amendments, curtailments, or settlements of the Company.
37
contract.
The amendments should be applied retrospectively and are effective from 1 January 2019, with early application permitted. Since the Company does not have such long-term interests in its associate and joint venture, the amendments will not have an impact on its consolidated financial statements.
Annual Improvements 2015-2017 Cycle (issued in December 2017)
These improvements include:
• IFRS 3 Business Combinations
The amendments clarify that, when an entity obtains control of a business that is a joint operation, it applies the requirements for a business combination achieved in stages, including remeasuring previously held interests in the assets and liabilities of the joint operation at fair value. In doing so, the acquirer remeasures its entire previously held interest in the joint operation.
An entity applies those amendments to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 January 2019, with early application permitted.
These amendments will apply on future business combinations of the Company.
• IFRS 11 Joint Arrangements
A party that participates in, but does not have joint control of, a joint operation might obtain joint control of the joint operation in which the activity of the joint operation constitutes a business as defined in IFRS 3. The amendments clarify that the previously held interests in that joint operation are not remeasured.
An entity applies those amendments to transactions in which it obtains joint control on or after the beginning of the first annual reporting period beginning on or after 1 January 2019, with early application permitted. These amendments are currently not applicable to the Company but may apply to future transactions.
• IAS 12 Income Taxes
The amendments clarify that the income tax consequences of dividends are linked more directly to past transactions or events that generated distributable profits than to distributions to owners. Therefore, an entity recognizes the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognized those past transactions or events.
An entity applies those amendments for annual reporting periods beginning on or after January 1, January 2019, with early application is permitted. When an entity first applies those2022. The Company will apply these amendments to contracts for which it applies them to the income tax consequences of dividends recognized on or afterhas not yet fulfilled all its obligations at the beginning of the earliest comparative period. Sinceannual reporting period in which it first applies the Company´s current practiceamendments.
• IAS 23 Borrowing Costs
2018-2020 annual improvements to IFRS standards process the IASB issued amendment to IFRS 9. The amendments clarifyamendment clarifies the fees that an entity treats as partincludes when assessing whether the terms of general borrowings any borrowing originally made to develop a qualifying asset whennew or modified financial liability are substantially alldifferent from the terms of the activities necessary to prepare that asset for its intended useoriginal financial liability. These fees include only those paid or sale are complete.
received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf. An entity applies those amendmentsthe amendment to borrowing costs incurredfinancial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies those amendments. An entity applies those amendmentsthe amendment.
24. Subsequent Events
(a) On January 24, 2019,Brazilian subsidiary, Claro S.A. (“Claro”), agreed to extend and amend the Company acquired frombinding offer submitted, jointly with Telefónica Brasil S.A. (“Telefonica”) and certain of its affiliatesTIM S.A. (“Telefónica”TIM”), 100% of Telefónica Móviles Guatemala, S.A. (“Telefónica Guatemala”), and has entered into an agreement to acquire 99.3% of Telefónica Móviles El Salvador, S.A. de C.V. (“Telefónica El Salvador”). The Telefónica Guatemala acquisition has been completed on this date. The completion offor the acquisition of Telefónica El Salvadorthe mobile business owned by Oi Group, in the amount of R
(b)line with current regulation. On March 18, 2019,February 9, 2022, the Company announced that it hasBrazil’s antitrust authority had approved the sale.
The completion of, on the acquisitiondate on which Sitios is subject to certain customary closing conditions, including regulatory approval from Agência Nacional de Telecomunicações — Anatel and Conselho Administrativo de Defesa Econômica — CADE. The transaction is also subjectduly incorporated in accordance with Mexican law, pursuant to the approval at a stockholders meeting of NIIresolutions approved by the shareholders holding a majority of the outstanding shares of NII. The agreed purchase price for Nextel Brazil is Ps. 17,487,578 (US$905,000) on a cash free / debt free basis.
Nextel Brazil provides nationwide mobile telecommunications services.
25. Supplemental Guarantor Information
Condensed Consolidating Financial Information
The following consolidating information presents condensed consolidating statements of financial position as of December 31, 2017 and 2018 and condensed consolidating statements of comprehensive income and cash flows for each of the three years in the period ended December 31, 2018 of the Company in the extraordinary shareholders’ meeting dated as of September 29, 2021, the Company will be released from its obligations under the Sitios Credit Facility and Telcel (the “wholly-owned Guarantor Subsidiary”). The unconsolidated financial statementsall liabilities with respect thereto will be transferred to Sitios, and Sitios will assume all of our obligations thereunder. After such date, Torres will continue to be a co-borrower under the Sitios Credit Facility and Torres do Brasil S.A. will become a guarantor thereunder.
The Company’s consolidating condensed financial information forCompany with respect to the (i) Company; (ii) its wholly-owned guarantor subsidiary Telcel (on standalone basis), which isSitios notes will be extinguished.
Condensed consolidating statementsloan of financial position
As of December 31, 2017 | ||||||||||||||||||||
Parent | Wholly-owned Guarantor Subsidiary | Combined non-guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
Assets: |
| |||||||||||||||||||
Cash and cash equivalents | Ps. | 7,018,559 | Ps. | 3,553,352 | Ps. | 13,698,562 | Ps. | — | Ps. | 24,270,473 | ||||||||||
Equity investments at fair value through OCI and other short-term investments | 10,303,535 | — | 48,817,141 | — | 59,120,676 | |||||||||||||||
Accounts receivable and derivative financial instruments | 9,874,652 | 24,064,936 | 167,873,940 | — | 201,813,528 | |||||||||||||||
Related parties | 208,240,067 | 957,704 | 503,895,549 | (712,225,090 | ) | 868,230 | ||||||||||||||
Inventories, net | 264,649 | 16,700,837 | 21,844,079 | — | 38,809,565 | |||||||||||||||
Other current assets | 17,805,747 | 922,245 | (1,375,246 | ) | — | 17,352,746 | ||||||||||||||
Property, plant and equipment, Net | 1,996,721 | 24,287,904 | 650,058,573 | — | 676,343,198 | |||||||||||||||
Investments in associated companies | 747,771,790 | 35,569,788 | 3,457,152 | (783,063,558 | ) | 3,735,172 | ||||||||||||||
Intangible assets and other non- current assets, net | 4,104,268 | 73,557,904 | 386,236,092 | — | 463,898,264 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets | Ps. | 1,007,379,988 | Ps. | 179,614,670 | Ps. | 1,794,505,842 | Ps. | (1,495,288,648 | ) | Ps. | 1,486,211,852 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: |
| |||||||||||||||||||
Short-term debt and current portion of long-term debt | Ps. | 34,345,398 | Ps. | — | Ps. | 17,400,443 | Ps. | — | Ps. | 51,745,841 | ||||||||||
Current liabilities | 161,940,198 | 41,304,845 | 797,880,314 | (639,534,701 | ) | 361,590,656 | ||||||||||||||
Long-term debt | 547,728,176 | — | 98,410,882 | — | 646,139,058 | |||||||||||||||
Othernon-current liabilities | 69,201,904 | 132,728,838 | 40,909,234 | (76,737,196 | ) | 166,102,780 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities | Ps. | 813,215,676 | Ps. | 174,033,683 | Ps. | 954,600,873 | Ps. | (716,271,897 | ) | Ps. | 1,225,578,335 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Equity attributable to equity holders of the parent | 194,164,312 | 5,580,987 | 741,988,231 | (747,569,218 | ) | 194,164,312 | ||||||||||||||
Non-controlling interests | — | — | 97,916,738 | (31,447,533 | ) | 66,469,205 | ||||||||||||||
Total equity | 194,164,312 | 5,580,987 | 839,904,969 | (779,016,751 | ) | 260,633,517 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities and equity | Ps. | 1,007,379,988 | Ps. | 179,614,670 | Ps. | 1,794,505,842 | Ps. | (1,495,288,648 | ) | Ps. | 1,486,211,852 | |||||||||
|
|
|
|
|
|
|
|
|
|
Condensed consolidating statements1,640.8 million reais maturing in 2023 at a rate of financial position
As of December 31, 2018 | ||||||||||||||||||||
Parent | Wholly-owned Guarantor Subsidiary | Combined non-guarantor Subsidiaries | Eliminations | Consolidated Total | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | Ps. | 8,335,101 | Ps. | 1,745,895 | Ps. | 11,578,966 | Ps. | — | Ps. | 21,659,962 | ||||||||||
Equity investments at fair value through OCI and other short-term investments | 9,511,368 | — | 39,504,566 | — | 49,015,934 | |||||||||||||||
Accounts receivable and derivative financial instruments | 31,462,176 | 35,671,582 | 154,380,710 | — | 221,514,468 | |||||||||||||||
Related parties | 199,566,671 | 1,144,534 | 560,142,367 | (759,589,967 | ) | 1,263,605 | ||||||||||||||
Inventories, net | 215,055 | 18,495,502 | 21,594,805 | — | 40,305,362 | |||||||||||||||
Other current assets | — | 1,218,764 | 14,077,429 | — | 15,296,193 | |||||||||||||||
Property, plant and equipment, Net | 1,340,358 | 23,192,546 | 615,467,816 | — | 640,000,720 | |||||||||||||||
Investments in associated companies | 734,944,344 | 88,070,845 | 16,926,615 | (836,809,097 | ) | 3,132,707 | ||||||||||||||
Intangible assets and other non- current assets, net | 4,113,902 | 26,176,381 | 406,744,158 | — | 437,034,441 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets | Ps. | 989,488,975 | Ps. | 195,716,049 | Ps. | 1,840,417,432 | Ps. | (1,596,399,064 | ) | Ps. | 1,429,223,392 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Short-term debt and current portion of long-term debt | Ps. | 52,827,411 | Ps. | — | Ps. | 43,403,223 | Ps. | — | Ps. | 96,230,634 | ||||||||||
Current liabilities | 153,489,868 | 72,282,238 | 597,174,025 | (452,085,876 | ) | 370,860,255 | ||||||||||||||
Long-term debt | 456,918,590 | — | 85,773,229 | — | 542,691,819 | |||||||||||||||
Othernon-current liabilities | 130,257,461 | 109,368,210 | 242,232,897 | (308,290,306 | ) | 173,568,262 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities | Ps. | 793,493,330 | Ps. | 181,650,448 | Ps. | 968,583,374 | Ps. | (760,376,182 | ) | Ps. | 1,183,350,970 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Equity attributable to equity holders of the parent | 195,995,645 | 14,065,601 | 760,485,332 | (774,550,933 | ) | 195,995,645 | ||||||||||||||
Non-controlling interests | — | — | 111,348,726 | (61,471,949 | ) | 49,876,777 | ||||||||||||||
Total equity | 195,995,645 | 14,065,601 | 871,834,058 | (836,022,882 | ) | 245,872,422 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities and equity | Ps. | 989,488,975 | Ps. | 195,716,049 | Ps. | 1,840,417,432 | Ps. | (1,596,399,064 | ) | Ps. | 1,429,223,392 | |||||||||
|
|
|
|
|
|
|
|
|
|
Condensed consolidating statements
Condensed consolidating statements
Condensed consolidating statements
Condensed consolidating statements
Condensed consolidating statements
Condensed consolidating statements