Oct 30, 2026 earnings call — AT&T Mexico deal and quarter performance
Agreement to acquire AT&T's wireless business in Mexico for $2 billion, creating combined assets with over 24 million wireless subscribers.
Revenue $0.8B (est $0.8B) · EPS $0.09 (est $0.03)
Key quotes
"After closing, our combined assets would include over 24 million wireless, 5.7 million broadband and 6.3 million video subscribers."
"Our operating segment income margin of 42.6%, expanded by 380 basis points year-on-year, making it the best quarter over the last three years in terms of profitability."
"During the quarter, Mexico's revenue surged by 51% year-on-year to $665 million, driven by a strong conclusion of the FIFA World Cup, while in the U.S., revenue of $715 million fell by 14%, reflecting anticipated domestic advertising softness."
Analyst Q&A 5
broadband growth and World Cup effect
Q (Marcelo Santos · JPMorgan): He asked for an update on competitive dynamics in broadband. He also asked why residential revenues slowed versus the first quarter and whether the World Cup explains it.
A: Management said the broadband market is very competitive with pressure on speeds and prices. They said as penetration rises, growth moves to low single digits. They added the first half was boosted by World Cup packages started in January 2026, which explains the decline versus the first half.
"The decline when you compare to the first and second half is because we started the World Cup campaign in January 2026." — Francisco Valim Filho (CEO)
AT&T synergies and disclosure
Q (Emilio Fuentes · GBM): He asked how synergies from the AT&T deal will be recognized under the equity method and whether any benefits could flow into the company's EBITDA. He also asked how AT&T Mexico’s standalone financials and pro forma metrics will be disclosed.
A: They said they plan to implement synergies right after close, most likely in January, using services agreements. They explained synergies will flow both ways: bundled revenue across AT&T and izzi and cost synergies via an agreement with the 50% shareholder, which will show on both companies' P&Ls. They also noted AT&T Mexico currently reports under U.S. GAAP and they will need to convert to IFRS; they do not plan to make AT&T Mexico financials public in the initial phase.
"On the cost side, like Alfonso mentioned, we have a very robust agreement with our 50% shareholder in AT&T that allows us to implement all of the cost synergies that you would see." — Francisco Valim Filho (CEO)
margins, cash use, AT&T capital
Q (Phani Kumar Kanumuri): He asked what drove the 42.6% margin and where margins will trend. He also asked if any additional contributions to AT&T are expected beyond the $400 million and what they will do with remaining cash.
A: They said the margin reflects efficiency measures and the integration synergies from combining Sky and izzi. They said 42.6% includes Sky and is a high margin for this business, and they do not expect to increase profitability further. They said they do not expect more equity contributions beyond the $400 million; AT&T is planned to be on a stand-alone capital structure, and the company will use cash for sector opportunities and to reduce leverage.
"And on the margin, I think that the 42.6% is considering that we have Sky embedded into those numbers." — Francisco Valim Filho (CEO)
one-off other expenses and CapEx timing
Q (Lucca Brendim · BoA): He asked whether the higher other expenses and legal/advisory costs are one-offs. He also asked why CapEx was lower this quarter despite fiber upgrades and whether CapEx will stay at this level.
A: They said most of the other expenses were noncash and nonrecurring, tied to an impairment of technical equipment, and that legal and advisory costs related to recent transactions are not expected to recur. They said CapEx varied by quarter due to timing of imports and materials for fiber deployment, and they expect year-end CapEx to finish in the low 20s.
"It has to do with the carrying value of technical equipment. We had to do the impairment." — Carlos Phillips Margain (CFO)
Univision political ad targeting capability
Q (Matthew Harrigan · StoneX): He asked whether Univision can add value to political advertisers through targeting using ViX, social, and tech, versus just mass on-air ads.
A: Management began saying they have a very good offering through their stations and U.S. network and noted they are the #1 Hispanic company. The answer was cut off and no further detail was provided on targeting capabilities.
"Matthew, we have a very good offering in terms of our stations and our network in the United States." — Alfonso de Angoitia Noriega (CEO)