| Title of each class: |
Trading symbol |
Name of each exchange on which registered | ||
| 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 2029 |
AMX29 |
New York Stock Exchange | ||
| 2.875% Senior Notes Due 2030 |
AMX30 |
New York Stock Exchange | ||
| 6.375% Notes Due 2035 |
AMX35 |
New York Stock Exchange | ||
| 6.125% Notes Due 2037 |
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 |
| ||||
| 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 |
|||||
✓ |
Large accelerated filer | Accelerated filer | Non-accelerated filer |
Emerging growth | ||||||||||||
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 Rule 12b-2 of the Exchange Act). |
Yes |
|
No |
✓ |
TABLE OF CONTENTS | ||||
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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. |
(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. |
(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. |
| • | Mexico Wireless; |
| • | Mexico Fixed; |
| • | Brazil; |
| • | Colombia; |
| • | Southern Cone (Argentina, Chile, Paraguay and Uruguay); |
| • | Andean Region (Ecuador and Peru); |
| • | Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama); |
| • | the Caribbean (the Dominican Republic and Puerto Rico); and |
| • | Europe (Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia). |
COUNTRY |
PRINCIPAL BRANDS |
SERVICES AND PRODUCTS | ||
Mexico |
Telcel | Wireless voice | ||
| Wireless data | ||||
| Telmex Infinitum | Fixed voice | |||
| Fixed data | ||||
Europe |
A1 | Wireless voice | ||
| Wireless data | ||||
| Fixed voice | ||||
| Fixed data | ||||
| Pay TV | ||||
| • | Subscription video on demand, providing unlimited access to a catalogue of over 20,900 titles for a fixed monthly subscription fee; |
| • | Transactional video on demand and electronic sell-through, offering the option to rent or buy new content releases; and |
| • | Add-on services such as subscription and other OTT services through a platform payment system, including access to FOX, HBO, Noggin and Paramount+, among others. |
WIRELESS VOICE, DATA AND VALUE ADDED SERVICES (1) |
FIXED VOICE, BROADBAND, DATA AND IT SERVICES (2) |
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 |
🌑 |
🌑 | ||||||
(1) Includes voice communication and international roaming services, interconnection and termination services, SMS, MMS, e-mail, mobile browsing, entertainment and gaming applications.(2) Includes local calls, national and international long distance.(3) Includes ClaroVideo and ClaroMúsica.(4) Services provided by non-concessionaire subsidiaries. | ||||||||
• |
Cell sites: spin-off of our towers and related passive infrastructure in Latin America outside of Mexico. See “Acquisitions, Other Investments and Divestitures.” |
• |
Fiber-optic network: |
• |
Submarine cable systems: AMX-1 submarine cable that extends 18,300 km and connects the United States to Central and South America with 13 landing points and also the South Pacific Submarine Cable that extends 7,300 km along the Latin American Pacific coast, connecting Guatemala, Ecuador, Peru and Chile with 5 landing points. Both systems provide international connectivity to all of our subsidiaries in these geographic areas. |
• |
Satellites: |
• |
Data centers: |
Service (“IAAS”), Software as a Service (“SAAS”), security solutions and unified communications. |
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 | % | - | |||||||||
| • | On September 13, 2020, we entered into an agreement to sell our wholly-owned subsidiary TracFone to Verizon. On November 23, 2021, we completed the sale of TracFone to Verizon. We received the closing consideration of U.S.$3,625.7 million in cash, which included U.S.$500.7 million of customary adjustment for TracFone’s cash and working capital and 57,596,544 shares of Verizon’s common stock, par value U.S.$0.10 per share. Verizon has asserted post-closing claims under the adjustments and other provisions of this agreement, which may result in payments by us. Subject to TracFone continuing to achieve certain operating metrics (earn-out), Verizon will be required pay up to an additional U.S.$650 million of cash consideration within two years from November 23, 2021. |
| • | In December 2020, our Brazilian subsidiary, Claro S.A. (“Claro Brasil”), together with two other offerors, won a competitive bid to acquire the mobile business owned by Oi Group in Brazil. Pursuant to the transaction, Claro Brasil will pay R$3.6 billion for 32% of Oi Group’s mobile business and approximately 4.7 thousand mobile access sites (representing 32% of Oi Group’s mobile business access sites). Claro Brasil also committed to enter into long term |
agreements with Oi Group for the supply of data transmission capacity. This transaction closed on April 20, 2022. |
| • | In February 2021, our Board of Directors approved a plan to spin off our telecommunications towers and other related passive infrastructure in Latin America outside of Mexico. The spin-off was approved by our shareholders in an extraordinary shareholders’ meeting on September 29, 2021. In the spin-off and the associated corporate restructuring, we will contribute to Sitios a portion of our capital stock, assets and liabilities, mainly consisting of the shares of our subsidiaries holding telecommunications towers and other associated infrastructure in Latin America outside of Mexico, other than Colombia and our telecommunications towers existing in Peru prior to the spin-off. This operation is intended to maximize the infrastructure’s value, as the resulting entity, to be named Sitios Latinoamérica, S.A.B. de C.V. (“Sitios”), will be separate from América Móvil and will have its own management and personnel, who will be exclusively focused on developing, building and leasing telecommunications towers for wireless services. We will have master services agreements with subsidiaries of Sitios under which we will have access to and use of the tower space to provide wireless services. Completion of the spin-off is subject to the fulfillment of conditions that are typical in these type of transactions, as well as the implementation of several previous steps in several of the countries involved in the transaction, including receipt of confirmation from the Mexican Tax Administration Service (Servicio de Administración Tributaria spin-off and the transactions contemplated thereby, among other things, comply with all requirements under Mexican tax law and regulations so that the spin-off and the corporate reorganization arising from it are considered neutral for Mexican tax purposes, and the receipt of all necessary approvals in the applicable countries and the expiration of all legal or statutory waiting periods for its effectiveness in all applicable countries, all of which are outside of our control. |
| • | On September 15, 2021, we announced that we entered into an agreement with Cable & Wireless Panama, S.A., an affiliate of Liberty Latin America LTD., to sell 100% of our interest in our subsidiary Claro Panama, S.A. The transaction excludes (i) all telecommunication towers owned indirectly by América Móvil in Panama and (ii) the Claro trademarks. The agreed purchase price is U.S.$200 million on a cash/ debt free basis. The closing of the transaction is subject to customary conditions for this type of transactions, including obtaining required governmental approvals, and we expect closing to occur during the first half of 2022. |
| • | On September 29, 2021, we announced an agreement with Liberty Latin America LTD. to combine our respective Chilean operations, VTR Communicaciones SpA (“VTR”) and Claro Chile, to form a 50- 50 joint venture. The proposed transaction combines the complementary operations of VTR, a leading provider of high-speed consumer fixed products, such as broadband and Pay TV services, where it connects close to 3 million subscribers nationwide, and Claro Chile, one of Chile’s leading telecommunications service providers with over 6.5 million mobile customers. Completion of the transaction is subject to certain customary closing conditions, including obtaining required regulatory approvals, and we expect closing to occur during the second half of 2022. |
| • | intense competition, with growing costs for marketing and subscriber acquisition and retention, as well as declining customer prices; |
| • | developments in the telecommunications regulatory environment; |
| • | growing demand for data services over fixed and wireless networks, as well as for smartphones and devices with data service capabilities; |
| • | declining demand for voice services; |
| • | increasing capital expenditures in line with our historical capital expenditure levels after a decrease in capital expenditures in 2020 due to pressures from the COVID-19 pandemic; |
| • | our continued strategic focus on controlling operating costs in view of pressures from costs of customer care, the growing size and complexity of our infrastructure and general price inflation; and |
| • | instability in economic conditions caused by political uncertainty, inflation and volatility in financial markets and exchange rates. |
| 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, 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% |
||||||||||
• |
Capital expenditures - COVID-19 outbreak. Our capital expenditures for 2021 and our budgeted capital expenditures for 2022 are in line with our historical capital expenditure levels. |
• |
Acquisitions - |
• |
Short-term debt and contractual obligations - |
• |
Long-term debt and contractual obligations - |
| 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. |
• |
Dividends - |
• |
Share repurchases - |
| |
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 | ||||||||
| • | provide higher handset subsidies; |
| • | offer higher commissions to retailers; |
| • | provide free airtime or other services (such as internet access); |
| • | offer services at lower costs through double, triple and quadruple play packages or other pricing strategies; |
| • | expand their networks faster; or |
| • | develop and deploy improved technologies faster, such as 5G LTE technology. |
| • | physical damage to access lines and fixed networks; |
| • | power surges or outages; |
| • | natural disasters; |
| • | climate change; |
| • | malicious actions, such as theft or misuse of customer data; |
| • | limitations on the use of our radio bases; |
| • | software defects; |
| • | human error; and |
| • | other disruptions beyond our control, including as a result of civil unrest in the regions where we operate. |
| • | significant governmental influence over local economies; |
| • | substantial fluctuations in economic growth; |
| • | high levels of inflation, including hyperinflation; |
| • | changes in currency values; |
| • | exchange controls or restrictions on expatriation of earnings; |
| • | high domestic interest rates; |
| • | price controls; |
| • | changes in governmental economic, tax, labor or other policies; |
| • | imposition of trade barriers; |
| • | changes in law or regulation; and |
| • | overall political, social and economic instability and civil unrest. |
| • | AA Shares; |
| • | A Shares not represented by ADSs; or |
| • | L Shares not represented by ADSs. |
PAYMENT DATE |
PESOS PER SHARE |
DOLLARS PER SHARE |
||||||
| November 8, 2021 |
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 | U.S.$ 0.0085 | ||||||
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 | ||
| • | whose shares were not acquired through the Mexican Stock Exchange or other markets authorized by the Ministry of Finance and Public Credit ( Secretaría de Hacienda y Crédito Público |
| • | of shares or ADSs that control us; |
| • | that holds 10.0% or more of our shares; |
| • | that is part of a group of persons for purposes of Mexican law that controls us (or holds 10.0% or more of our shares); or |
| • | that is a resident of Mexico or is a corporation resident in a tax haven (as defined by the Mexican Income Tax Law). |
| • | a citizen or resident of the United States of America, |
| • | a corporation (or other entity taxable as a corporation) organized under the laws of the United States of America or any state thereof or |
| • | otherwise subject to U.S. federal income taxation on a net income basis with respect to the shares or ADSs. |
| • | establishes that it is an exempt recipient, if required, or |
| • | provides an accurate taxpayer identification number on a properly completed Internal Revenue Service Form W-9 and certifies that no loss of exemption from backup withholding has occurred. |
| • | gain is effectively connected with the conduct by the holder of a U.S. trade or business or |
| • | in the case of gain realized by an individual holder, the holder is present in the United States for 183 days or more in the taxable year of the sale and certain other conditions are met. |
| CARLOS SLIM DOMIT | ||
| Chairman of the Board and the Executive Committee | ||
| Born: |
1967 | |
| First elected: |
2011 | |
| Term expires: |
2023 | |
| Principal occupation: |
Chairman of the Board of América Móvil | |
| Other directorships: |
Chairman of the Board of Grupo Carso and its affiliates | |
| Business experience: |
Business administration; Chief Executive Officer of Sanborn Hermanos | |
| PATRICK SLIM DOMIT | ||
| Vice Chairman and Member of the Executive Committee | ||
| Born: |
1969 | |
| First elected: |
2004 | |
| Term expires: |
2023 | |
| Principal occupation: |
Vice Chairman of our Board of Directors | |
| Other directorships: |
Director of Grupo Carso and its affiliates | |
| 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 | ||
| Born: |
1966 | |
| First elected: |
2000 | |
| 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 | |
| LUIS ALEJANDRO SOBERÓN KURI | ||
| Director | ||
| Born: |
1960 | |
| First elected: |
2000 | |
| Term expires: |
2023 | |
| Principal occupation: |
Chief Executive Officer and Chairman of the Board of Serinem México (a subsidiary of Corporación Interamericana de Entretenimiento) | |
| Other directorships: |
Director of CIE; Director of Grupo Financiero Citibanamex | |
| Business experience: |
Business administration; Various positions at CIE | |
| FRANCISCO JOSÉ MEDINA CHÁVEZ | ||
| Director | ||
| Born: |
1956 | |
| First elected: |
2018 | |
| Term expires: |
2023 | |
| Principal occupation: |
Chief Executive Officer and Chairman of Grupo Fame, and Chairman of Grupo Altozano | |
| Other directorships: |
Director of Banco Nacional de México and Grupo Chedraui | |
| Business experience: |
Real estate; Director of Aeroméxico and Mitsui Mexico | |
| ERNESTO VEGA VELASCO | ||
| Director, Chairman of the Audit and Corporate Practices Committee | ||
| Born: |
1937 | |
| First elected: |
2007 | |
| Term expires: |
2023 | |
| Principal occupation: |
Retired. Member of the Board of Directors and audit and corporate practices, planning and finance and evaluation and compensation committees of certain companies. | |
| Other directorships: |
Director of Kuo and its affiliates, Inmuebles Carso and its affiliates, and Industrias Peñoles | |
| Business experience: |
Accounting and business administration; Various positions in Desc Group, including Corporate Vice- President | |
| RAFAEL MOISÉS KALACH MIZRAHI | ||
| Director and Member of the Audit and Corporate Practices Committee | ||
| Born: |
1946 | |
| First elected: |
2012 | |
| Term expires: |
2023 | |
| Principal occupation: |
Chairman and Chief Executive Officer of Grupo Kaltex | |
| Other directorships: |
Director of Grupo Carso and its affiliates | |
| Business experience: |
Accounting and business administration; various positions in Grupo Kaltex | |
| ANTONIO COSÍO PANDO | ||
| Director | ||
| Born: |
1968 | |
| First elected: |
2015 | |
| Term expires: |
2023 | |
| Principal occupation: |
Vice President of Grupo Hotelero las Brisas, Compañía Industrial Tepeji del Río, and Bodegas de Santo Tomás | |
| Other directorships: |
Director of Grupo Carso and its affiliates, Corporación Actinver, and Grupo Aeromexico | |
| Business experience: |
Engineer; various positions in Grupo Brisas and Compañía Industrial Tepeji del Río | |
| OSCAR VON HAUSKE SOLÍS | ||
| Director | ||
| Born: |
1957 | |
| First elected: |
2011 | |
| Term expires: |
2023 | |
| 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 | |
| VANESSA HAJJ SLIM | ||
| Director | ||
| Born: |
1997 | |
| First elected: |
2018 | |
| Term expires: |
2023 | |
| DAVID IBARRA MUÑOZ | ||
| Director | ||
| Born: |
1930 | |
| First elected: |
2000 | |
| 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 Nacional Financiera and Secretary of Finance and Public Credit of Mexico | |
| GISSELLE MORÁN JIMÉNEZ | ||
| Director | ||
| Born: |
1974 | |
| First elected: |
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 | ||
| Born: |
1967 | |
| First elected: |
2007 | |
| Term expires: |
2023 | |
| Principal occupation: |
Chief Executive Officer of Kimberly Clark de México | |
| Other directorships: |
Director of Kimberly Clark de México, Grupo Sanborns and Grupo Lala | |
| Business experience: |
Various positions in the Kimberly Clark Corporation and Kimberly Clark de México | |
| CLAUDIA JAÑEZ SÁNCHEZ | ||
| Director | ||
| Born: |
1971 | |
| First elected: |
2021 | |
| Term expires: |
2023 | |
| Principal occupation: |
Independent Director | |
| Other directorships: |
Director of Bolsa Mexicana de Valores and Board Member of Grupo Industrial Saltillo, HSBC Mexico and Impulsora de Desarollo y de Empleo en América Latina | |
| Business experience: |
Chairman of DuPont Latin America and Chairman of the Executive Council of Global Companies | |
| 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 Board | |
| 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 Condumex; Director of Telmex, Telmex Internacional, Empresa Brasileira de Telecomunicaçőes S.A. (“Embratel”), and Net Serviços de Comunicaçăo S.A. (“Net Serviços”); Member of Telekom Austria’s Supervisory Board | |
| RAFAEL COUTTOLENC URREA | ||
| Chief Wireless Operations Officer | ||
| Appointed: |
2021 | |
| Business experience: |
Various positions in América Móvil | |
| • | honest and ethical conduct; |
| • | full, fair, accurate, timely and understandable disclosure in reports and documents that we file with, or submit to, the SEC and other authorities; |
| • | compliance with applicable governmental laws, rules and regulations; the prompt internal reporting of violations of the Code of Ethics and the ICP; |
| • | accountability for adherence to the Code of Ethics. |
FREQUENCY |
COVERAGE AREA |
INITIAL DATE |
TERMINATION DATE | |||
| Band A (1900 MHz) | Nationwide | Sep. 1999 | Oct. 2039 | |||
| Band D (1900 MHz) | 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 (1900 MHz) | 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) | 98.94% of the population (2) |
Jul. 2017 | Sep. 2020 (1) – Nov. 2028 – Oct. 2040 – May 2041, Nov. 2041 | |||
| Band 3.5 GHz (3) |
Nationwide | 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. | ||||||
| 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 | ||
| FREQUENCY |
BANDWIDTH |
TERMINATION DATE | ||
| 850 MHz |
25 MHz | Mar. 2024 | ||
| 1900 MHz |
10 MHz | Dec. 2039 | ||
| |
5 MHz | Oct. 2041 | ||
| |
15 MHz | Mar. 2024 | ||
| 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 | ||
| COUNTRY |
FREQUENCY |
TERMINATION DATE | ||
| AUSTRIA |
800 MHz | 2029 | ||
| |
900 MHz | 2034 | ||
| |
1500 MHz | 2044 | ||
| |
1800 MHz | 2034 | ||
| |
2100 MHz | 2044 | ||
| |
2600 MHz | 2026 | ||
| |
3500 MHz | 2039 | ||
| COUNTRY |
FREQUENCY |
TERMINATION DATE | ||
| BELARUS |
900 MHz | Not applicable | ||
| |
1800 MHz | Not applicable | ||
| |
2100 MHz | Not applicable | ||
| BULGARIA |
900 MHz | 2024 | ||
| |
1800 MHz | 2024 | ||
| |
2100 MHz | 2025 | ||
| |
3500 MHz | 2041 | ||
| CROATIA |
700 MHz | 2036 | ||
| |
800 MHz | 2024 | ||
| |
900 MHz | 2024 | ||
| |
1800 MHz | 2024 | ||
| |
2100 MHz | 2024 | ||
| |
3500 MHz | 2036 | ||
| |
26000 MHz | 2036 | ||
| NORTH MACEDONIA |
800 MHz | 2033 | ||
| |
900 MHz | 2023 | ||
| |
1800 MHz | 2033 | ||
| |
2100 MHz | 2028 | ||
| COUNTRY |
FREQUENCY |
TERMINATION DATE | ||
| SERBIA |
800 MHz | 2026 | ||
| |
900 MHz | 2026 | ||
| |
1800 MHz | 2026 | ||
| |
2100 MHz | 2026 | ||
| 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 |
• Concessions in the AWS and 1800 MHz bands that expire in 2032 • Concessions in the 2100 MHz band that expire in 2026 • License to operate Pay TV services using DTH technology that will expire in 2026 | ||
| EL SALVADOR |
Electricity and Telecommunications Superintendency ( Superintendencia General de Electricidad y Telecomunicaciones |
• Concession of 50 MHz in the 1900 MHz band of which 30 MHz that expire in 2038, 10 MHz that expire in 2041 and 10 MHz that expire in 2028 • Concession to provide public telephone service that expires in 2027 • Licenses to provide Pay TV Services through HFC and DTH technologies have an indefinite term • Concession of 40 MHz in 1700/2100 MHz bands (AWS) that will expire in 2040. | ||
| GUATEMALA |
Guatemalan Telecommunications Agency ( Superintendencia de Telecomunicaciones |
• Licenses (Frequencies Usufruct Rights) to use 12 MHz in the 900 MHz band, 120 MHz in the 1900 MHz band and 175 MHz in the 3.5 GHz band that all expire in 2033 and were granted for the provision of any type of telecommunications service. | ||
| NICARAGUA |
Nicaraguan Telecommunications and Mailing Institute ( Instituto Nicaragüense de Telecomunicaciones y Correos |
• Concessions in the 700 MHz, 850 MHz, 1900 MHz and 1700/2100 MHz bands that all expire in 2042 • Concession of 50 MHz in the 3.5 GHz band that will expire in 2042 • Licenses to provide DTH technology that will expire in January 2028 and Pay TV services that has an indefinite term | ||
| HONDURAS |
Honduran National Telecommunications Commission ( Comisión Nacional de Telecomunicaciones |
• Concessions to use 80 MHz in the 1900 MHz PCS band and 40 MHz in the LTE-4G 1700/2100 MHz band that all expire in 2033• Licenses to operate Pay TV services through (i) HFC technology that will expire in 2027 and (ii) DTH technology that will expire in 2030 | ||
| PANAMA |
National Authority of Public Services ( Autoridad Nacional de los Servicios Públicos |
• License to use 40 MHz in the 1900 MHz and 20 MHz in the 700 MHz bands that all expire in 2028 • Licenses to provide fixed local and long-distance services that expire in 2030 | ||
| COUNTRY |
PRINCIPAL REGULATORY AUTHORITIES |
CONCESSION AND LICENSES | ||
| |
|
• License to provide internet service that expires in 2033 • Licenses to provide international long-distance, value-added services, interactive television, and Pay TV service through DTH and IPTV technologies, which expire in 2028, 2030, 2037 and 2034, respectively • License to provide Pay TV service through optical fiber that expires in 2037. • License for data transportation, Service No. 200, which expires in 2023 | ||
| DOMINICAN REPUBLIC |
Dominican Institute of Telecommunications ( Instituto Dominicano de las Telecomunicaciones |
• Concession to provide fixed and wireless services, internet and pay TV services through DTH and IPTV technologies that expire in 2030 • Licenses to use 25 MHz in the 800 MHz band, 30 MHz in the 1900 MHz band, 80 MHz in the 2.5/2.7 GHz band, 30 MHz in the 3.5 GHz band and 40 MHz in the 1.7/2.1 GHz (AWS) band that expire in 2030 | ||
| PUERTO RICO |
Federal Communications Commission (FCC) and the Telecommunications Bureau of Puerto Rico | • Concessions to use the 700 MHz, 1900 MHz and the 28 GHz bands that expire in 2021 (currently pending renewal application extending to 2031), 2027 and 2029, respectively • Concessions to use the 800 MHz bands that expire in 2026, 2028, 2030 and 2031. • Concessions to use the AWS-1 and AWS-3 bands (1.7/2.1 GHz) that expire in 2026 and 2028, respectively.• Concessions to use the 3.5 GHz band that expires in 2030. • Long-term transfer lease concessions to use 35.6 MHz of the 2.5 GHz band that expire in 2022, 2023, 2025, 2026 and 2030. • Franchise to operate Pay TV services using IPTV technology that expires in 2030. | ||
| 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. |
8.1 |
||
12.1 |
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
12.2 |
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
13.1 |
Certification pursuant to Section 906 of the Sarbanes- Oxley Act of 2002. | |
15.1 |
Code of Ethics. | |
15.2 |
Consent of independent registered public accounting firm. | |
17.1 |
Subsidiary Guarantors | |
101.INS |
Inline XBRL Instance Document. | |
101.SCH |
Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
101.DEF |
Inline XBRL Taxonomy Extension Definition Document. | |
104 |
Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document). | |
| • | projections of our commercial, operating or financial performance, our financing, our capital structure or our other financial items or ratios; |
| • | statements of our plans, objectives or goals, including those relating to acquisitions, competition and rates; |
| • | statements concerning regulation or regulatory developments; |
| • | the impact of COVID-19; |
| • | statements about our future economic performance or that of Mexico or other countries in which we operate; |
| • | competitive developments in the telecommunications sector; |
| • | other factors and trends affecting the telecommunications industry generally and our financial condition in particular; and |
| • | statements of assumptions underlying the foregoing statements. |
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 | 6 | |||
| |
3B Capitalization and indebtedness | Not applicable | — | |||
| |
3C Reasons for the offer and use of proceeds | Not applicable | — | |||
| |
3D Risk factors | Risk factors | 36 | |||
4 |
INFORMATION ON THE COMPANY |
|
| |||
| |
4A History and development of the Company | Information on the Company | 9 | |||
| |
|
Note 10—Property, Plant and Equipment, net | F-44 | |||
| |
|
Liquidity and capital resources | 31 | |||
| |
|
Additional Information | 85 | |||
| |
4B Business overview | Information on the Company | 9 | |||
| |
|
Regulation | 70 | |||
| |
4C Organizational structure | Exhibit 8.1 | — | |||
| |
4D Property, plant and equipment | Information on the Company | 9 | |||
| |
|
Note 10—Property Plant and Equipment, net | F-44 | |||
| |
|
Liquidity and capital resources | 31 | |||
| |
|
Regulation | 70 | |||
| |
4A Unresolved staff comments | None | — | |||
5 |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
|
| |||
| |
5A Operating results | Overview | 23 | |||
| |
|
Results of operations | 25 | |||
| |
|
Regulation | 70 | |||
| |
|
Liquidity and capital resources | 31 | |||
| |
5B Liquidity and capital resources | Note 14—Debt | F-56 | |||
| |
5C Research and development, patents and licenses, etc. | Not applicable | — | |||
| |
5D Trend information | Overview | 23 | |||
| |
|
Results of operations | 25 | |||
| |
5E Critical Accounting Estimates | Not applicable | — | |||
6 |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
|
| |||
| |
6A Directors and senior management | Management | 59 | |||
| |
6B Compensation | Management | 59 | |||
| |
6C Board practices | Management | 59 | |||
| |
|
Management | 59 | |||
| |
6D Employees | Employees | 86 | |||
| |
6E Share ownership | Major shareholders | 49 | |||
| |
|
Management | 59 | |||
7 |
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 | ||||
| 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 | |
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. |
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 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 | — |
— |
||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||||
| 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. |
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 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 | ) | — |
— |
|||||||||||
| 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. |
| • | Voice services provided by the Company, both wireless and fixed, mainly include the following: airtime, local, domestic and international long-distance services, and network interconnection services. |
| • | Data services include value added, corporate networks, data and Internet services. |
| • | Pay TV represents basic services, as well as pay per view and additional programming and advertising services. |
| • | AMX provides other related services to advertising in telephone directories, publishing and call center services. |
| • | The Company also provides video, audio and other media content that is delivered through the internet directly from the content provider to the end user. |
| 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 | % | — | ||||||||
| 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. |
| • | all monetary assets and liabilities were translated at the closing exchange rate of the period; |
| • | all non-monetary assets and liabilities at the closing exchange rate of the period; |
| • | equity accounts are translated at the exchange rate at the time the capital contributions were made and the profits were generated; |
| • | revenues, costs and expenses are translated at the average exchange rate of the period, except for the operations of the subsidiaries in Argentina, whose economy is considered hyperinflationary since 2018; |
| • | the consolidated statements of cash flows presented using the indirect method were translated using the weighted-average exchange rate for the applicable period (except for Argentina), and the resulting difference is shown in the consolidated statements of cash flows under the heading “Adjustment to cash flows due to exchange rate fluctuations, net”. |
| • | Adjustment of the historical cost of non-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. |
| • | The gain on the net monetary position caused by the impact of inflation in the year is included in the consolidated statements of comprehensive income as part of the caption “ Valuation of derivatives, interest cost from labor obligations and other financial items, net ” . Items in the statement of comprehensive income and in the statements of cash flows are adjusted by the inflation index since their origination, with a balancing entry, and a reconciling item in the statements of cash flows, respectively. |
| • | All items in the financial statements of the Argentine company are translated at the closing exchange rate, which at December 31, 2020 and 2021 were 0.2371 and 0.2004, respectively, per argentine peso per Mexican peso. |
| (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 |
Network infrastructure |
5%-33% | |||
Buildings and leasehold improvement |
2%-33% | |||
Other assets |
10%-50% |
| • | Current subscribers and expected growth. |
| • | Type of subscribers (prepaid, postpaid, fixed line, multiple services) |
| • | Market environment and penetration expectations |
| • | New products and services |
| • | Economic environment of each country |
| • | Expenses for maintaining the current assets |
| • | Investments in technology for expanding the current assets |
| • | Market consolidation and synergies |
| • | Margin on EBITDA is determined by dividing EBITDA (operating income plus depreciation and amortization) by total revenues. |
| • | Margin on CAPEX is determined by dividing capital expenditures (“CAPEX”) by total revenues. |
| • | Pre-tax weighted average cost of capital (“WACC”) is used to discount the projected cash flows. |
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% |
|||||||||
| i) | Right-of-use assets |
| 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. |
| • | Financial assets at amortized cost (debt instruments) |
| • | Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments) |
| • | Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments) |
| • | Financial assets at fair value through profit or loss |
| • | The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows, and |
| • | The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding |
| • | The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling, and |
| • | The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding |
| • | The rights to receive cash flows from the asset have expired, or |
| • | The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset |
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) | Year-end rates are used for the translation of revenues and expenses if IAS 29 “Financial Reporting in Hyperinflationary Economies” |
(2) |
Includes U.S.A., Ecuador, El Salvador, Puerto Rico and Panama. |
| (i) | The date of the plan amendment or curtailment, and |
(ii) |
The date that the Company recognizes restructuring-related costs |
| • | When the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the sales tax is recognized as part of the cost of acquisition of the asset or as part of the expense item, as applicable. |
| • | Receivables and payables that are stated with the amount of sales tax included. |
| (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. |
| • | It is expected to be settled in the normal operating cycle. |
| • | It is held primarily for the purpose of trading. |
| • | It is due to be settled within twelve months after the reporting period. |
| • | There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. |
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 |
— | — | 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 |
— | — | 26,294,422 | |||||||||
| |
|
|
|
|
|
|||||||
| Net profit for the year from discontinued operations |
Ps. | 9,844,889 | Ps. |
16,992,625 | Ps. |
121,710,718 | ||||||
| |
|
|
|
|
|
|||||||
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, |
||||||||||||
| 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 |
||||||||||||
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 |
||||
| |
|
|
|
|||||
| 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. |
— | 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 |
||||
| |
|
|
|
|||||
| 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 2021, this amount includes Ps. |
| ii) | In 2021, this amount includes Ps. |
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, |
||||||||||||||||
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 | — |
— |
|||||||||||
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 |
— | — | € |
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 | ) | — |
— |
||||||||||
Call option |
— | — | € |
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 |
2022 |
2023 |
2024 |
2025 |
2026 Thereafter |
||||||||||||||||||
Assets |
||||||||||||||||||||||||
Swaps US Dollar-Mexican Peso |
US$ |
— | — | — | — | 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 | — | — | ||||||||||||||||||
| 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. |
||||||
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. As of December 31, 2020 and 2021, the amount for these deposits is Ps. 15,402,840 and Ps. 14,583,504, respectively for Brazil. Based on its evaluation of the underlying contingencies, the Company believes that such amounts are recoverable. |
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. |
— |
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 |
) |
— |
(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 |
) |
— |
(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 |
) |
— |
(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. |
— |
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. |
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, |
||||||||||||
| 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 |
% | ||||||
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 | ) |
— |
— |
— |
(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 | ) |
— |
— |
— |
(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 | ) |
— |
(2,984,770 | ) |
13,104,110 | |||||||||||||||||||
| Accumulated amortization |
(7,704,803 | ) |
— |
— |
(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 | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(1) |
Includes disposals related to the sale of TracFone. See Note 2Ac. |
| 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 | — |
||||||
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 |
|||||||
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, |
||||||||||||
| 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 |
|||||||
| |
|
|
|
|
|
|||||||
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) |
— | — | (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. |
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 |
% | ||||||
| (1) | As of December 31, 2020 and 2021, the balance included the effects of hyperinflation and revaluation of telecommunications towers. |
| 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 | ) | — |
|||||||
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 |
|||||||
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 |
||||||
| 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, 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 |
||||||||||||
| |
|
|||||||||||||
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 |
||
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. |
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, |
||||||||
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, |
||||||||
| 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 | |||||||||||||||||||||||||||
| Asset retirement obligations |
Ps. | 15,816,744 | Ps. | — | 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. |
— |
Ps. |
(910,181 |
) |
Ps. |
1,273,201 |
Ps. |
(148,634 |
) |
Ps. |
(1,350,154 |
) |
Ps. |
16,752,223 |
|||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 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 |
||
| |
|
|||
| • | Ps. (Imposto sobre a Circulação de Mercadorias e Prestação de Serviços or “ICMS” ) assessments; |
• |
Ps. 18,360,489 (R$ 4,977,808) aggregate contingencies and Ps. 3,228,656 (R$ 875,338) provisions related to social contribution on net income (Contribuição Social sobre o Lucro Lĺquido or “CSLL”) and corporate income tax (Imposto de Renda sobre Pessoa Jurĺdica or “IRPJ”) assessments; |
| • | Ps. provisions related to the social integration program (Programa de Integração Social or “PIS”) and the contribution for social security financing (Contribuição para o Financiamento da Seguridade Social or “COFINS”) assessments; |
• |
Ps. 11,684,785 (R$ 3,167,923) aggregate contingencies and Ps. 1,396,376 (R$ 378,579) provisions mainly related to an allegedly improper exclusion of interconnection revenues and costs from the basis used to |
| calculate Fund for Universal Telecommunication Services (Fundo de Universalização dos Serviços de Telecomunicações or “FUST”) obligations, which are being contested; |
| • | Ps. provisions related to an alleged underpayment of obligations to the Telecommunications Technology Development Fund (Fundo para o Desenvolvimento Tecnológico das Telecomunicações or “FUNTTEL”), which are being challenged and for which a final resolution is pending; |
| • | Ps. provisions related to the alleged nonpayment of Services Tax (Imposto Sobre Serviços or “ISS”) over several communication services, including Pay TV services, considered taxable for ISS by the Municipal Revenue Services, which are being challenged and for which a final resolution is pending; |
| • | Ps. provisions arising from, among other , things the alleged underpayment of IRRF and CIDE taxes and on remittances made to foreign operators as remuneration for completing international calls abroad (outgoing traffic); and |
| • | Ps. provisions related to the requirement to contribute to the Promotion of Public Radio Broadcasting (“EBC”). |
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 |
— | 15,751 | 19,081 |
|||||||||
| Nicaragua |
— | 3,711 | 18,561 |
|||||||||
| Honduras |
— | — | 4,718 |
|||||||||
| |
|
|
|
|
|
|||||||
| Total |
Ps. | 16,609,565 | Ps. | 18,085,954 | Ps. |
18,688,374 |
||||||
| |
|
|
|
|
|
|||||||
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 |
|||||||
| |
|
|
|
|
|
|
|
|||||||||
| 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 |
% | |||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
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 202 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. |
32,094,727 | Ps. |
(22,626,321 | ) | |||
| Health care cost trend rat |
Ps. |
(431,724 | ) | Ps. |
499,356 | |||
| 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 |
||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
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 |
— | — | 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, 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 |
||||||||
| |
|
|
|
|
|
|
|
|||||||||
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, |
||||||||||||
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 |
||||||
| (i) | Includes discontinued operations of Tracfone (See note 2, Ac) |
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 | ) | — | |||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||
| 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 |
) |
— |
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| 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 |
||||||||||||||||||||||||||||||||
• |
To require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest |
• |
To permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued |
• |
To provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component |
• |
What is meant by a right to defer settlement |
• |
That a right to defer must exist at the end of the reporting period |
• |
That classification is unaffected by the likelihood that an entity will exercise its deferral right |
• |
That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification |
