América Móvil SAB de CV

07/16/2021 | Press release | Distributed by Public on 07/16/2021 04:02

Material Event (Form 6-K)

Carlos Garcĺa-Moreno

Chief Financial Officer

[email protected]

Daniela Lecuona Torras

Investor Relations Office

[email protected]

América Móvil's second quarter of

2021 financial and operating report

Mexico City, July 13th, 2021 - América Móvil, S.A.B. de C.V. ('América Móvil') [BMV: AMX] [NYSE: AMX, AMOV], announced today its financial and operating results for the second quarter of 2021.

2Q21

•   We added 4.2 million wireless subscribers in the second quarter, more than 2.0 million were postpaid subscibers. Brazil accounted for 1.1 million postpaid net adds.

4.2M wireless net adds

•   On the fixed-line platform we added 128 thousand broadband accesses. All in all, we had net RGU disconnections of 132 thousand accesses.

128k new broadband clients

•   Second quarter revenues, 253 billion pesos, were slightly higher than in the year-earlier quarter in nominal peso terms. At constant exchange rates, service revenue increased 5.3% year-on-year and 1.8% over the quarter.

Service revenues

+5.3% YoY at constant Fx

•   Mobile and fixed-line service revenue were up both on an annual basis and sequential basis at constant exchange rates. In the case of mobile, the increases were 7.2% and 2.2%, respectively; in the case of fixed-line, 1.5% and 0.6%, respectively. The expansion of mobile service revenues was driven by prepaid services, up 9.5% and 3.7%, respectively.

Mobile & fixed service revenues were up on an annual & sequential basis

•   EBITDA came in at 84.9 billion pesos, a 2.8% increase in nominal peso terms from the year-earlier quarter. At constant exchange rates it increased 11.9%. However, adjusted for carrier discounts from Tracfone obtained then, EBITDA showed a strong performance, rising 14.6%.

Adjusted EBITDA +15% YoY at constant Fx

•   Our 44.7 billion pesos operating profit was up 9.3% in nominal peso terms. At constant exchange rates, correcting for the carrier discounts referred to above, the annual increase in our operating profit would have been 23.7%.

Operating profit up

9.3% YoY

•   We obtained a comprehensive financing income in the amount of 17.2 billion pesos on the back of foreign exchange gains. It helped bring about a net profit for the quarter of 42.8 billion pesos that more than doubled that of the year-earlier quarter.

Net profit of MxP 43Bn pesos

•   Our operating cash flow allowed us to fund capital expenditures in the amount of 57.4 billion pesos in the six months to June, reduce debt in the amount of 36.9 billion pesos and buy back shares in the amount of 11.0 billion pesos.

CapEx of MxP 57Bn pesos

•   We bought back 765.1 million shares, more than any amount repurchased in each of the last six years.

•   At the end of June, our net debt stood at 591 billion pesos including 103 billion in capitalized leases; it was equivalent to 1.64 times LTM EBITDA under IAS 17.

Net debt to EBITDA at 1.64x

We will host our conference call to discuss 2Q21 financial and operating results on July 14th at 9:00 am Mexico City time. To access the call please log on to www.americamovil.com/investors

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América Móvil Fundamentals

2Q21 2Q20

Earnings per Share (Mex$) (1)

0.65 0.30

Earning per ADR (US$) (2)

0.64 0.25

EBITDA per Share (Mex$) (3)

1.28 1.25

EBITDA per ADR (US$)

1.28 1.07

Net Income (millions of Mex$)

42,816 19,500

Average Shares Outstanding (billion)

66.30 65.97

Shares Outstanding End of Period (billion)

66.10 65.94

(1) Net Income / Average Shares Outstanding

(2) 20 shares per ADR

(3) EBITDA / Average Shares Outstanding

América Móvil's Subsidiaries as of June 2021

Country Brand Business

Equity

Participation

Mexico

Telcel wireless 100.0%
Telmex wireline 98.8%
Sección Amarilla other 100.0%
Telvista other 90.0%

Argentina

Claro wireless 100.0%
Telmex wireline 100.0%

Brazil

Claro wireless/wireline 99.6%

Chile

Claro wireless 100.0%
Telmex wireline 100.0%

Colombia

Claro wireless/wireline 99.4%

Costa Rica

Claro wireless 100.0%

Dominicana

Claro wireless/wireline 100.0%

Ecuador

Claro wireless/wireline 100.0%

El Salvador

Claro wireless/wireline 95.8%

Guatemala

Claro wireless/wireline 99.3%

Honduras

Claro wireless/wireline 100.0%

Nicaragua

Claro wireless/wireline 99.6%

Panama

Claro wireless/wireline 100.0%

Paraguay

Claro wireless/wireline 100.0%

Peru

Claro wireless/wireline 100.0%

Puerto Rico

Claro wireless/wireline 100.0%

Uruguay

Claro wireless/wireline 100.0%

USA

Tracfone wireless 100.0%

Netherlands

KPN wireless/wireline 20.9%

Austria

Telekom Austria wireless/wireline 51.0%
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The reported figures for Argentina corresponding to the second quarter of 2021 are presented in accordance with a) IAS29 reflecting the effects of the adoption of inflationary accounting that became mandatory after the Argentinean economy was deemed to be hyperinflationary in the third quarter of 2018 and b) IAS21 translated to Mexican pesos using the end-of-period exchange rate.

All comparisons at constant exchange rates for América Móvil's consolidated figures will exclude Argentina to ensure consistency.

Relevant Events

On May 7th, we informed that a Tribunal from the International Center for Settlement of Investment Disputes ('ICSID') issued an award in the arbitration proceeding initiated in August 2016 against the Republic of Colombia pursuant to the Free Trade Agreement between Mexico and Colombia. The ICSID Tribunal held that certain measures adopted by Colombia in relation with the concessions terminated in 2013 by Comunicación Celular, S.A. (COMCEL), subsidiary of AMX, did not represent an expropriation of AMX's investments in COMCEL.

On May 28th we entered into a committed five-year revolving credit facility (RCF) in an amount in euros equivalent to 1.5 billion U.S. dollars, which replaced an older one. Including this one and one entered into at the level of Telekom Austria, we have three committed RCFs in place for a total amount of 5 billion U.S. dollars that are important liquidity buffers for América Móvil. For the first time, we introduced ESG metrics in the facility, which may result in improved terms in its pricing.

Access Lines

We added 4.2 million wireless subscribers in the second quarter including 1.4 million in Brazil, 870 thousand in Argentina, approximately 430 thousand in each of Mexico and Colombia and approximately 300 thousand in each of Peru and Austria. Just over half of the net adds were postpaid with Brazil accounting for 1.1 million postpaid net adds. Our postpaid subscriber base increased 10.7% and our prepaid one 5.6% year-on-year. We ended the quarter just shy of 300 million wireless subscribers.

Postpaid base up 11% YoY

On the fixed-line platform we added 128 thousand broadband accesses. All in all, we disconnected 132 thousand RGUs. At the end of June we had 80.5 million RGUs.

128k new broadband accesses
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Wireless Subscribers as of June 2021

Total(1)(Thousands)
Country Jun '21 Mar '21 Var.% Jun '20 Var.%

Argentina, Paraguay and Uruguay

25,541 24,618 3.8% 24,259 5.3%

Austria & CEE

22,325 21,932 1.8% 21,208 5.3%

Brazil

67,772 66,337 2.2% 58,520 15.8%

Central America

15,912 15,569 2.2% 14,541 9.4%

Caribbean

6,713 6,562 2.3% 6,087 10.3%

Chile

6,746 6,581 2.5% 6,793 -0.7%

Colombia

33,844 33,461 1.1% 31,535 7.3%

Ecuador

8,308 8,104 2.5% 7,878 5.5%

Mexico

78,742 78,311 0.5% 75,378 4.5%

Peru

11,501 11,181 2.9% 10,387 10.7%

USA

20,334 20,883 -2.6% 20,918 -2.8%

Total Wireless Lines

297,737 293,538 1.4% 277,503 7.3%

(1) Includes total subscribers of all companies in which América Móvil holds an economic interest; does not consider the date in which the companies started being consolidated.

Fixed-Line and Other Accesses (RGUs) as of June 2021

Total(1) (Thousands)
Country Jun '21 Mar '21 Var.% Jun '20 Var.%

Argentina, Paraguay and Uruguay

1,679 1,527 10.0% 1,278 31.4%

Austria & CEE

6,072 6,079 -0.1% 6,105 -0.5%

Brazil

31,926 32,273 -1.1% 33,260 -4.0%

Central America

4,327 4,291 0.8% 4,379 -1.2%

Caribbean

2,615 2,586 1.1% 2,509 4.2%

Chile

1,372 1,376 -0.3% 1,401 -2.1%

Colombia

8,673 8,527 1.7% 7,938 9.3%

Ecuador

493 476 3.6% 454 8.5%

Mexico

21,536 21,739 -0.9% 21,961 -1.9%

Peru

1,855 1,805 2.8% 1,707 8.7%

Total RGUs

80,547 80,680 -0.2% 80,993 -0.6%

(1) Fixed Line, Broadband and Television (Cable & DTH). Central America figures have been adjusted in accordance with the methodology used for all AMX operations.

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América Móvil Consolidated Results

As the U.S. economy recovered rapidly, signs of higher inflation towards the latter part of the second quarter created uncertainty and confusion and drove price corrections in some segments of the financial markets. The yield on three-year Treasury notes, for instance, rose 15 basis points-the equivalent of a 50% increase in yield-as the market brought forward the expected path of increases in interest rates by the Fed. In several Latin American countries inflation exceeded expectations and pushed some central banks-notably in Brazil and Mexico-to begin to hike interest rates. Foreign exchange volatility increased throughout Latin America.

At 253 billion pesos, our revenue was slightly higher, 0.4% than in the year-earlier quarter in nominal peso terms, with service revenue declining 4.6% and equipment revenue jumping 34.0% on the face of greater commercial activity. At constant exchange rates, service revenue actually increased 5.3% year-on-year and, importantly, was up 1.8% on a sequential basis. It is to be noted that the second quarter of 2020 was the one in which the effects of the pandemic both in terms of commercial activity and revenue were more deeply felt, so the annual comparison may be somewhat misleading. But the first quarter of 2020 was largely free of the effects of the pandemic and happens to be a good reference: in the first quarter of this year, service revenue had risen 1.2% from the prior year.

Service revenues +5.3% YoY at constant Fx

Nominal peso revenue growth turned out to be significantly lower than that at constant exchange rates due to the fact that in the reference period the Mexican peso appreciated vs. all other currencies in our operations bar none. The value of the Mexican peso rose 16.3% vs. the U.S. dollar, 6.3% vs. the euro; 14.7% vs. the Brazilian real and 12.0% vs. the Colombian peso, appreciating even more vs. the Peruvian sol, 28.6%, and the Argentinean peso, 61.6%. The above means that the revenue of our combined international operations came down in Mexican peso terms, dragging with it the total amount of nominal peso revenue.

2Q21 Service Revenues(1)

(%)

Mobile and fixed-line service revenues were up both on an annual basis and on a sequential basis at constant exchange rates. In the case of mobile, the

(1) Includes Fixed-Broadband, Pay-TV and Fixed Voice in double or triple play bundles.

Prepaid revenues up 9.5% YoY and 3.7% QoQ at constant Fx

increases were 7.2% and 2.2% respectively; in the case of fixed-line, 1.5% and 0.6%. The expansion of mobile service revenues was driven by prepaid services, up 9.5% and 3.7% respectively, with postpaid service revenues expanding 4.4% and 0.5%. The high sequential increase in prepaid revenue goes to show the strength of the recovery currently underway in Mexico and the U.S., but also in Central America/Caribbean and Eastern Europe, regions where prepaid services are relatively more important.

page 6

On the fixed-line platform both broadband and corporate network services also presented annual and sequential revenue increases: 7.0% and 0.9% for broadband, and 3.9% and 1.1% for corporate networks. PayTV and wireline voice were the only business lines that exhibited declines both on an annual and sequential basis, at -5.3% and -2.3%, and -6.4% and -0.9% respectively.

Broadband & corporate network services presented annual and sequential increases

América Móvil's Income Statement Millions of Mexican pesos

2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Service Revenues

209,466 219,457 -4.6% 416,575 428,970 -2.9%

Equipment Revenues

41,137 30,699 34.0% 80,352 70,179 14.5%

Total Revenues*

252,507 251,583 0.4% 500,693 501,645 -0.2%

Cost of Service

74,807 77,298 -3.2% 149,999 152,774 -1.8%

Cost of Equipment

41,232 35,341 16.7% 81,737 75,729 7.9%

Selling, General & Administrative Expenses

50,004 55,142 -9.3% 99,434 110,708 -10.2%

Others

1,517 1,154 31.5% 2,920 2,199 32.8%

Total Costs and Expenses

167,560 168,935 -0.8% 334,090 341,410 -2.1%

EBITDA

84,947 82,648 2.8% 166,603 160,236 4.0%

% of Total Revenues

33.6% 32.9% 33.3% 31.9%

Depreciation & Amortization

40,241 41,740 -3.6% 80,750 80,417 0.4%

EBIT

44,706 40,908 9.3% 85,853 79,819 7.6%

% of Total Revenues

17.7% 16.3% 17.1% 15.9%

Net Interest Expense

8,363 8,972 -6.8% 17,105 18,352 -6.8%

Other Financial Expenses

-4,447 1,339 n.m. 6,300 -21,753 129.0%

Foreign Exchange Loss

-21,077 1,371 n.m. -4,716 94,099 -105.0%

Comprehensive Financing Cost (Income)

-17,161 11,682 -246.9% 18,689 90,698 -79.4%

Income & Deferred Taxes

17,762 8,156 117.8% 20,320 -3,864 n.m.

Net Income before Minority Interest and Equity Participation in Results of Affiliates

44,104 21,070 109.3% 46,845 -7,015 n.m.

Equity Participation in Results of Affiliates

3 -286 100.9% 16 -284 105.7%

Minority Interest

-1,291 -1,284 -0.6% -2,235 -2,063 -8.3%

Net Income

42,816 19,500 119.6% 44,626 -9,362 n.m.

*Total revenues include Other Revenues.

n.m. Not meaningful.

page 7

Selling and marketing expenses were up 9.6% year-on-year and 2.2% quarter-over-quarter at constant exchange rates, with the cost of equipment rising 26.7% and 2.7% respectively. Bad debt provisions, for their part, plummeted 51.2% on an annual basis and -2.0% sequentially. The cost of service increased 7.3% annually principally on account of there having been some carrier discounts applied last year for the benefit of Tracfone. In the absence of these discounts the cost of service would have increased 4.7% year-on-year.

Bad debt was down 51% YoY at constant Fx

Second quarter EBITDA came in at 84.9 billion pesos, a 2.8% increase in nominal peso terms from the year-earlier quarter. At constant exchange rates it increased 11.9%. However, adjusted for the carrier discounts mentioned above, EBITDA had a strong performance, increasing 14.6%. The EBITDA margin was 33.6%, a 0.8 percentage points increase from a year before in spite of the greater commercial activity.

Adjusted EBITDA +15% YoY at constant Fx

Our operating profit increased 9.3% to 44.7 billion pesos. Depreciation and amortization charges held steady at 19% of service revenues, resulting-given the increase in EBITDA-in an operating profit that was up 17.9% at constant exchange rates on an annual basis and 6.2% quarter-over-quarter. Correcting for the carrier discounts referred to above, the annual increase in our operating profit would have been 23.7%.

Adjusted operating profit +24% YoY at constant Fx
Balance Sheet - América Móvil ConsolidatedMillions of Mexican Pesos
Jun '21 Dec '20 Var.% Jun '21 Dec '20 Var.%

Current Assets

Current Liabilities

Cash, Marketable Securities & Other Short Term Ivestments

100,140 90,554 10.6% Short Term Debt* 117,890 148,083 -20.4%

Accounts Receivable

216,088 228,906 -5.6% Lease-Related Debt 27,683 25,068 10.4%

Other Current Assets

16,991 10,385 63.6% Accounts Payable 265,329 237,287 11.8%

Inventories

31,699 30,377 4.4% Other Current Liabilities 94,515 96,872 -2.4%
364,919 360,223 1.3% 505,418 507,311 -0.4%

Non Current Assets

Non Current Liabilities

Plant & Equipment, gross

1,368,727 1,355,801 1.0% Long Term Debt 470,360 480,300 -2.1%

-Depreciation

659,395 632,871 4.2% Lease-Related Debt 75,518 84,259 -10.4%

Plant & Equipment, net

709,332 722,930 -1.9% Other Liabilities 239,291 238,061 0.5%

Rights of Use

94,481 101,977 -7.4% 785,169 802,620 -2.2%

Investments in Affiliates

1,776 1,830 -2.9%

Deferred Assets

Goodwill (Net)

140,665 143,053 -1.7%

Intangible Assets

128,308 133,457 -3.9% Shareholder's Equity 316,493 315,118 0.4%

Deferred Assets

167,599 161,579 3.7%

Total Assets

1,607,080 1,625,048 -1.1% Total Liabilities and Equity 1,607,080 1,625,048 -1.1%

Includes current portion of Long Term Debt.

page 8

We registered a net comprehensive income in the amount of 17.2 billion pesos, as foreign exchange gains, 21.1 billion pesos, and gains in other financial expenses, 4.4 billion pesos, more than offset our net interest expense of 8.4 billion pesos.

Comprehensive financing income of MxP 17Bn

Our net profit totaled 42.8 billion pesos in the second quarter, more than doubling that of the year-earlier quarter on the back of strong EBITDA growth and our net comprehensive financing income. It was equivalent to 65 peso-cents per share or 64 dollar-cents per ADR.

Net profit of MxP 43Bn

In the six months to June our operating cash flow allowed us to fund capital expenditures in the amount of 57.4 billion pesos; reduce net debt in the amount of 36.9 billion pesos and buy back shares in the amount of 11.0 billion pesos. In addition, we reduced by 5.6 billion pesos our labor obligations.

CapEx of MxP 57Bn

Our share buy-backs through June, 765.1 million shares, topped those of each of the last six years.

Largest share buy-backs in six years

At the end of June our net debt stood at 591 billion pesos, including 103 billion in capitalized leases. It was equivalent to 1.64 times LTM EBITDA.

Net debt to EBITDA at 1.64x
Financial Debt of América Móvil* Millions
Jun -21 Dec -20

Peso - denominated debt (MxP)

64,250 78,383

Bonds(1)

51,450 51,283

Banks and others

12,800 27,100

U.S. Dollar - denominated debt(USD)

9,376 9,351

Bonds

9,351 9,351

Banks and others

25 0

Euro - denominated Debt (EUR)

9,282 9,780

Bonds

9,197 8,100

Commercial Paper

85 1,680

Banks and others

0 0

Sterling - denominated Debt (GBP)

2,200 2,200

Bonds

2,200 2,200

Reais - denominated Debt (BRL)

7,375 8,475

Bonds

7,375 8,475

Banks and others

0 0

Debt denominated in other currencies(2) (MxP)

30,920 32,610

Bonds

6,359 6,590

Banks and others

24,561 26,020

Total Debt (MxP)

588,250 628,383

Cash, Marketable Securities and Short Term Financial Investments (MxP)

100,140 90,554

Net Debt (MxP)

488,110 537,829

* This table does not include the effect of forwards and derivatives used to hedge our foreign exchange exposure. It includes financial debt of Telekom Austria.

(1)

Includes the effect of inflation-linked debt.

(2)

Includes Peruvian soles and Chilean pesos.

page 9

Mexico

We added 430 thousand wireless subscribers in the second quarter, all of them prepaid, to finish June with 78.7 million subscribers, increasing the activation of new lines partly as a result of more availability of handsets since supply had been very limited. On the fixed-line platform we disconnected 204 thousand accesses, of which 165 thousand were land-lines. We have made significant progress in the modernization of our customer care systems, moving to an omnichannel platform for on-line services.

430k mobile net adds

Revenues rose 19.7% year-on-year to 75.3 billion pesos, as equipment revenues shot up 79.8% and service revenues expanded 7.4%. Quarter-over-quarter, equipment revenues were up 16.2% while service revenues increased 2.2%. On the mobile platform service revenues climbed 11.9% on an annual basis and 3.6% on a sequential basis, driven by prepaid revenues that soared 17.7% and 5.2%, respectively. ARPU increased 7.9% and 3.3% respectively, to reach 157 pesos in the second quarter. The sequential improvements are linked to greater mobility and economic activity.

Service revenues +7.4% YoY and +2.2% QoQ

On the fixed-line platform service revenues declined slightly, -0.4%, on the back of voice revenues that were down 5.3% and broadband revenues that rose 4.1%, with corporate network revenues increasing 1.6%. Streaming plans with Netflix and Disney+, as well as HBO Max have gained significant traction in the market.

Broadband revenues +4.1% YoY

EBITDA jumped 20.6% from the year-earlier quarter to 29.5 billion pesos-having increased 2.4% sequentially. At 39.1%, the EBITDA margin was 0.3 percentage points higher than a year before. As for our operating profit, it totaled 21.7 billion pesos, a 30.5% increase in the year.

EBITDA up 21% YoY and 2.4% QoQ

Telcel has been expanding its coverage throughout the country looking to reach more remote and marginalized areas.

INCOME STATEMENT - MexicoMillions of MxP

2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Total Revenues*

75,291 62,884 19.7% 146,757 136,066 7.9%

Total Service Revenues

55,743 51,920 7.4% 110,261 106,520 3.5%

Total Equipment Revenues

18,579 10,332 79.8% 34,566 28,438 21.5%

Wireless Revenues

55,223 43,095 28.1% 106,561 96,490 10.4%

Service Revenues

36,760 32,854 11.9% 72,239 68,409 5.6%

Equipment Revenues

18,464 10,241 80.3% 34,322 28,081 22.2%

Fixed Line Revenues

19,098 19,158 -0.3% 38,267 38,468 -0.5%

Service Revenues

18,984 19,066 -0.4% 38,022 38,110 -0.2%

Equipment Revenues

115 91 25.5% 244 357 -31.6%

EBITDA

29,450 24,420 20.6% 58,209 52,191 11.5%

% total revenues

39.1% 38.8% 39.7% 38.4%

EBIT

21,727 16,655 30.5% 42,784 36,692 16.6%

%

28.9% 26.5% 29.2% 27.0%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

page 10

Mexico Operating Data

2Q21 2Q20 Var.%

Wireless Subscribers (thousands)

78,742 75,378 4.5%

Postpaid

14,556 14,452 0.7%

Prepaid

64,185 60,926 5.3%

MOU

546 537 1.8%

ARPU (MxP)

157 146 7.9%

Churn (%)

3.5% 4.1% (0.6)

Revenue Generating Units (RGUs) *

21,536 21,961 -1.9%

Fixed Lines

11,582 12,100 -4.3%

Broadband

9,954 9,861 0.9%

* Fixed Line and Broadband.

Argentina

For comparison purposes all comments in this section related to annual variations of the presented period for Argentina refer to figures in constant peso terms, that is, adjusted for inflation in accordance to NIC 29. Information for Uruguay and Paraguay is not presented in the table.

We added 777 thousand prepaid and 93 thousand postpaid wireless subscribers in the second quarter. It was the strongest performance in commercial activities in well over a year, particularly regarding prepaid. We are focused on reducing mobile churn by improving the customer experience, delivering on quality and speed as well as customer care. We are enhancing our digital channels to be closer to our clients.

777k prepaid netadds

On the fixed-line platform we connected 62 thousand broadband accesses, 20 thousand PayTV clients and 59 thousand landlines, for a total of 141 thousand fixed-line RGUs.

We connected 62kbroadband clients

In the second quarter, service revenues totaled 29.5 billion Argentinean pesos, with mobile prices remaining unchanged in the second quarter. Prepaid revenues fell 1.9% quarter-over-quarter while postpaid was practically flat.

Mobile pricesremainedunchanged

Fixed-line service revenue increased 7.1% annually (7.4% sequentially) with broadband revenue up 33.3% and PayTV revenues that expanded 63.3%, mostly on the back of IPTV. We will continue to develop our presence in the corporate and SME segments of the market.

Fixed-line servicerevenues up 7.1%YoY and 7.4% QoQ

EBITDA came in at 14.2 billion Argentinean pesos, down 3.3% annually in real terms. The margin for the period stood at 39.7%, 1.6 percentage points higher than a year before.

EBITDA margin at40% of revenues
page 11

INCOME STATEMENT -ArgentinaMillions of Constant ARS of June 2021

2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Total Revenues*

35,820 38,600 -7.2% 72,147 78,503 -8.1%

Total Service Revenues

29,535 33,821 -12.7% 58,874 66,814 -11.9%

Wireless Revenues

31,675 34,468 -8.1% 64,211 70,762 -9.3%

Service Revenues

25,510 30,063 -15.1% 51,103 59,519 -14.1%

Equipment Revenues

6,165 4,405 40.0% 13,108 11,244 16.6%

Fixed Line Revenues

4,025 3,758 7.1% 7,771 7,295 6.5%

EBITDA

14,222 14,700 -3.3% 28,616 29,688 -3.6%

% total revenues

39.7% 38.1% 39.7% 37.8%

EBIT

11,226 11,298 -0.6% 22,414 22,994 -2.5%

%

31.3% 29.3% 31.1% 29.3%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

Argentina Operating Data

2Q21 2Q20 Var.%

Wireless Subscribers (thousands)(1)

22,697 21,564 5.3%

Postpaid

8,642 8,359 3.4%

Prepaid

14,055 13,205 6.4%

MOU

82 95 -14.2%

ARPU (ARP)

378 305 24.2%

Churn (%)

1.2% 1.9% (0.7)

Revenue Generating Units (RGUs) *

1,362 962 41.6%

* Fixed Line, Broadband and Television.

(1) Hybrid subscribers are now included in our postpaid figures.

page 12

Brazil

In the second quarter Claro added 1.4 million wireless subscribers, 1.1 million of them postpaid, ending June with 67.8 million subscribers. Our postpaid base was up 22.9% year-on-year, a more rapid pace than the one shown the prior quarter. As was the case then, Claro kept a positive balance from Mobile Number Portability, porting-in 700 thousand clients in net terms. On the fixed-line platform we disconnected 347 thousand accesses in the quarter, including 148 thousand PayTV clients and 152 thousand land-lines.

1.1M posptaid netadds

Second quarter revenues increased 2.3% from a year before, reaching 9.8 billion reais, with service revenues rising 1.0%. Those from mobile jumped 10.2% and those on the fixed-line platform declined 5.8%. On mobile, postpaid services won the day, climbing 11.2% on an annual basis and 2.2% quarter-over-quarter, with Claro continuing to lead market share growth in the sector. Prepaid services for their part held firm at 6.6% year-on-year revenue growth and 1.0% sequentially.

Postpaid revenues+11% YoY and 2.2%QoQ

On the fixed-line platform PayTV services declined 12.7% and voice revenues 21.0%, with broadband service revenues decelerating to a 4.9% pace from 7.2% the prior quarter. We held on to our leadership position in the ultrabroadband segment.

Leaders in theultrabroadbandsegment

EBITDA rose 2.6% from the year-earlier quarter to 3.9 billion reais with the EBITDA margin expanding 0.1 percentage points to 40.1% helped along by reductions in bad debt provisions and other administrative expenses. EBITDA was up 0.3% sequentially.

EBITDA +2.6% YoY

Claro was the first operator to launch 5G network services in Brazil, currently available in 15 cities delivering connection speeds that are 12x faster than conventional 4G. Claro also has the best coverage with 4.5G, reaching nearly 80% of the population.

Claro first operatorin Brazil to launch5G networkservices

INCOME STATEMENT - BrazilMillions of BrL

2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Total Revenues*

9,755 9,536 2.3% 19,529 19,327 1.0%

Total Service Revenues

9,427 9,333 1.0% 18,907 18,854 0.3%

Wireless Revenues

4,685 4,160 12.6% 9,249 8,502 8.8%

Service Revenues

4,375 3,969 10.2% 8,665 8,051 7.6%

Equipment Revenues

310 191 61.8% 584 451 29.6%

Fixed Line Revenues

5,052 5,364 -5.8% 10,242 10,803 -5.2%

EBITDA

3,916 3,816 2.6% 7,821 7,525 3.9%

% total revenues

40.1% 40.0% 40.0% 38.9%

EBIT

1,383 1,571 -12.0% 2,638 3,000 -12.1%

%

14.2% 16.5% 13.5% 15.5%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

page 13

Brazil Operating Data

2Q21 2Q20 Var.%

Wireless Subscribers (thousands)

67,772 58,520 15.8%

Postpaid

39,134 31,852 22.9%

Prepaid

28,638 26,668 7.4%

MOU(1)

160 186 -14.4%

ARPU (BrL)

22 23 -6.1%

Churn (%)

3.2% 4.1% (1.0)

Revenue Generating Units (RGUs) *

31,926 33,260 -4.0%
*

Fixed Line, Broadband and Television.

(1)

We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

Colombia

In a more complicated commercial environment-a new mobile competitor launched their operations in the quarter-Claro maintained a strong position in the market, adding 382 thousand mobile subscribers of which 159 thousand were postpaid subscribers. We gained 75 thousand subscribers in the quarter through the Number-Portability scheme. Claro's commercial offerings have significantly increased the data allowances per plan, helping the company remain competitive in spite of the more aggressive commercial pressures it faced. Our convergent platform has been key in helping us drive increased data traffic on our network. On the fixed-line platform we gained 146 thousand RGUs in the quarter, including 62 thousand broadband accesses and 34 thousand PayTV clients.

In spite of new

competitor, we

added 382k

wireless subscribers

Revenues were up 14.1% year-on-year to 3.6 trillion Colombian pesos with service revenues expanding 8.9%, partly reflecting the revenue decline a year before; quarter-over-quarter service revenues were practically flat, -0.3%. On the mobile segment, service revenues increased 6.9% on the back of postpaid revenues that expanded 8.1% from the year-earlier quarter.

Mobile service

revenues +6.9% YoY

Fixed-line service revenues decelerated somewhat, to 12.2% from 13.7% in the first quarter, mainly reflecting the slowdown in broadband revenue growth, although quarter over quarter they rose 1.7%. PayTV revenues accelerated to a 14.6% pace. We launched our 500 Mbps broadband plan during the quarter, as well as the Claro Vox plan on PayTV, which is compatible with Android TV.

Fixed-line service

revenues 12% YoY

Second quarter EBITDA increased 15.6% from the year-earlier quarter to 1.5 trillion Colombian pesos, its best performance in years. It was slightly down, -0.3%, on a sequential basis, with first quarter EBITDA having risen 10.3%-prepandemic-on an annual basis. The EBITDA margin for the period was equivalent to 42.8% of revenues, slightly better than a year before in spite of the much greater commercial activity.

EBITDA +16% YoY

We continue to add capacity to our network anticipating strong demand for data services. Our convergent platform allows us to significantly expand our data capabilities in cost-efficient terms.

page 14

INCOME STATEMENT - ColombiaBillions of COP

2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Total Revenues*

3,573 3,131 14.1% 7,122 6,361 12.0%

Total Service Revenues

2,785 2,556 8.9% 5,579 5,146 8.4%

Wireless Revenues

2,368 2,114 12.0% 4,734 4,353 8.7%

Service Revenues

1,662 1,555 6.9% 3,352 3,174 5.6%

Equipment Revenues

707 559 26.3% 1,382 1,180 17.2%

Fixed Line Revenues

1,152 1,005 14.6% 2,285 1,980 15.4%

EBITDA

1,529 1,323 15.6% 3,062 2,712 12.9%

%

42.8% 42.2% 43.0% 42.6%

EBIT

910 727 25.1% 1,820 1,542 18.1%

%

25.5% 23.2% 25.6% 24.2%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

Colombia Operating Data

2Q21 2Q20 Var.%

Wireless Subscribers* (thousands)

33,844 31,535 7.3%

Postpaid

8,078 7,422 8.8%

Prepaid

25,765 24,113 6.9%

MOU(1)

294 336 -12.3%

ARPU (COP)

16,545 16,670 -0.7%

Churn (%)

3.9% 4.5% (0.6)

Revenue Generating Units (RGUs)**

8,673 7,938 9.3%

*Due to differences in the policy for accounting active subscribers, the figures in this report are different from those published by the Ministry of Communications of Colombia (MinTIC). **Fixed Line, Broadband and Television.

(1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

Chile

Chile was hardly hit by a second wave of contagion that resulted in a strict lockdown in the second quarter. We gained 128 thousand postpaid and 37 thousand prepaid subscribers in the second quarter, with fixed-line RGUs roughly flat.

128k postpaid net

adds

Revenue totaled 194.4 billion Chilean pesos, up 6.6% year-on-year as service revenues expanded 2.3% and equipment revenues shot up 35.0%. Fixed-line revenues had a good performance as demand for connectivity remains strong, with service revenues expanding 7.6% from the year-earlier quarter on the back of PayTV revenues, up 20.0%, with broadband revenues staying flat and voice revenues declining 13.4%. Mobile service revenues were down 1.8% annually, with postpaid revenues declining slightly, -0.5%.

Service revenues

up 2.3% YoY

Second quarter EBITDA of 39.4 billion Chilean pesos was up slightly in annual terms, 0.5%, with the EBITDA margin representing 20.3% of revenues.

EBITDA margin at

20% of revenues

In the quarter we acquired from Entel 30MHz of spectrum in the 3.5GHz band.

page 15

INCOME STATEMENT - ChileMillions of ChPL

2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Total Revenues*

194,423 182,354 6.6% 394,515 381,703 3.4%

Total Service Revenues

162,097 158,450 2.3% 325,100 324,204 0.3%

Wireless Revenues

119,074 112,377 6.0% 243,699 237,711 2.5%

Service Revenues

86,900 88,536 -1.8% 175,499 180,575 -2.8%

Equipment Revenues

32,174 23,841 35.0% 68,200 57,137 19.4%

Fixed Line Revenues

75,197 69,914 7.6% 149,602 143,629 4.2%

EBITDA

39,395 39,187 0.5% 83,923 82,180 2.1%

% total revenues

20.3% 21.5% 21.3% 21.5%

EBIT

-20,801 -18,445 -12.8% -29,359 -26,503 -10.8%

%

-10.7% -10.1% -7.4% -6.9%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

Chile Operating Data

2Q21 2Q20 Var.%

Wireless Subscribers (thousands)

6,746 6,793 -0.7%

Postpaid

2,617 2,276 15.0%

Prepaid

4,129 4,517 -8.6%

MOU

179 178 0.5%

ARPU (ChP)

4,553 4,782 -4.8%

Churn (%)

4.8% 6.2% (1.4)

Revenue Generating Units (RGUs) *

1,372 1,401 -2.1%

* Fixed Line, Broadband and Television.

Ecuador

The economic conditions in Ecuador in the aftermath of the Covid-19 crisis have shifted more clients to prepaid; we gained 204 thousand new subs in the quarter, of which 187 thousand were prepaid subscribers. On the fixed-line platform we picked up 17 thousand RGUs.

187k prepaid net

adds

Mobile revenues increased 4.5% annually to 225 million dollars, with prepaid revenues rising 15.4% and postpaid revenues falling 16.4%. Sequentially they declined 1.2% and 2.6% respectively.

Prepaid revenues

+15% YoY

As a challenger in the fixed-line segment we increased the pace of fiber roll-out. We ended June with 300 thousand broadband accesses, 21.3% more than a year before. This brought about an increase in broadband revenues of 10.3%. Overall, fixed-line service revenues were up 2.1% year-on-year but, importantly, they shot up 4.8% quarter-over-quarter.

300k new

broadband

accesses

EBITDA declined 5.3% from the year before to 115 million dollars but relative to the prior quarter it was up 4.7%. The EBITDA margin for the period was equivalent to 45.5% of revenues.

EBITDA down 5.3% YoY

page 16

INCOME STATEMENT - EcuadorMillions of Dollars

2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Total Revenues*

252 242 4.2% 506 549 -7.9%

Total Service Revenues

224 234 -4.1% 451 496 -9.0%

Wireless Revenues

225 216 4.5% 453 497 -8.8%

Service Revenues

198 208 -4.8% 400 445 -10.1%

Equipment Revenues

27 7 266.7% 53 51 3.0%

Fixed Line Revenues

27 27 1.2% 52 52 0.0%

EBITDA

115 121 -5.3% 224 250 -10.4%

% total revenues

45.5% 50.0% 44.4% 45.6%

EBIT

60 65 -8.0% 115 139 -16.8%

%

23.8% 26.9% 22.8% 25.2%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

Ecuador Operating Data

2Q21 2Q20 Var.%

Wireless Subscribers (thousands)

8,308 7,878 5.5%

Postpaid

2,048 2,548 -19.6%

Prepaid

6,260 5,329 17.5%

MOU

335 475 -29.5%

ARPU (US$)

8 9 -6.0%

Churn (%)

3.4% 5.4% (2.0)

Revenue Generating Units (RGUs) *

493 454 8.5%

* Fixed Line, Broadband and Television.

Peru

Peru was amongst the countries with more stringent lockdown measures at the beginning of the pandemic. Even though some areas still have restrictions in terms of mobility and curfews, we had a considerable annual swing in top line as well as sequential improvements in both fixed and mobile platforms. Net wireless subscriber additions came in at 320 thousand-38% more than in the first quarter-of which 234 thousand were postpaid, whereas on the fixed-line platform we obtained 50 thousand RGUS, half of them broadband accesses.

320k wireless net adds

Revenue expanded 43.8% year-on-year to 1.5 billion soles, with service revenues rising 13.7%, up from 7.7% in the prior quarter, and equipment revenues jumping five times. Equipment revenues had their worst quarter ever in 2Q20 and have returned to pre-pandemic levels. We have resumed commercial efforts and launched 5G services in Lima.

Service revenues +14%YoY

Mobile service revenues were 10.4% higher than a year before driven by postpaid revenues that increased 10.6%. Quarter-over-quarter they increased 3.7% and 5.1% respectively. Prepaid revenues increased 9.9% in the period and were flat sequentially. On the fixed-line platform service revenues were booming, up 24.1% on the back of strong demand for connectivity which led to an increase of 41.4% in broadband revenues. PayTV revenues increased 4.6% after four quarters of declines as we improved our IPTV offer.

Postpaid revenues up 11% YoY and

5.1% QoQ

page 17

EBITDA increased 47.3% from the year-earlier quarter to 575 million soles; the EBITDA margin was equivalent to 38.5% of revenues, nearly one percentage point more than a year before in spite of the comeback in commercial activity. To note, relative to service revenues, EBITDA shot up 12.1 percentage points from a year before. Compared to the previous quarter EBITDA rose 5.4% in absolute terms and 0.7 percentage points relative to revenues.

EBITDA margin at 39% of revenue

INCOME STATEMENT - PeruMillions of Soles

2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Total Revenues*

1,493 1,038 43.8% 2,936 2,333 25.9%

Total Service Revenues

1,088 957 13.7% 2,134 1,928 10.7%

Wireless Revenues

1,201 806 49.1% 2,368 1,870 26.6%

Service Revenues

804 728 10.4% 1,579 1,472 7.3%

Equipment Revenues

398 78 nm 789 398 98.2%

Fixed Line Revenues

284 229 24.1% 555 456 21.6%

EBITDA

575 391 47.3% 1,121 791 41.8%

% total revenues

38.5% 37.6% 38.2% 33.9%

EBIT

286 128 123.7% 552 268 105.8%

%

19.2% 12.3% 18.8% 11.5%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

Peru Operating Data

2Q21 2Q20 Var.%

Wireless Subscribers (thousands)

11,501 10,387 10.7%

Postpaid

4,659 4,064 14.6%

Prepaid

6,842 6,323 8.2%

MOU

379 385 -1.7%

ARPU (Sol)

24 22 6.2%

Churn (%)

3.9% 5.2% (1.2)

Revenue Generating Units (RGUs) *

1,855 1,707 8.7%

* Fixed Line, Broadband and Television.

page 18

Central America

Although there are still certain mobility restrictions in the Central American countries, very mild in general except for Panama where measures are still restrictive, we were able to add 344 thousand wireless subscribers, of which 321 thousand were prepaids. We gained 36 thousand fixed-line RGUs, including 20 thousand broadband accesses.

321k prepaid net

adds

Second quarter revenues, just shy of 600 million dollars, were 12.2% higher than a year before boosted by equipment revenues, up 83.6%. Service revenues increased 6.2% annually and 1.3% on a sequential basis with mobile service revenues rising 2.2%. Prepaid services were the main growth driver with revenue growth of 20.0% year-on-year and 3.7% sequentially. On the fixed-line platform service revenues expanded 1.2% annually and declined 0.4% relative to the first quarter as broadband and PayTV failed to compensate for the reduction in legacy services.

Service revenues

up 6.2% YoY and

1.3% QoQ

EBITDA was up 21.3% annually and 6.7% sequentially to 256 million dollars. It was equivalent to 42.7% of revenues, which compares to 39.5% in the second quarter of 2020.

EBITDA up 21% YoY and 6.7% QoQ

INCOME STATEMENT - Central AmericaMillions of Dollars

2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Total Revenues*

599 534 12.2% 1,179 1,116 5.7%

Total Service Revenues

519 489 6.2% 1,032 1,003 2.9%

Wireless Revenues

408 346 17.8% 797 738 7.9%

Service Revenues

338 310 9.0% 669 643 4.1%

Equipment Revenues

69 36 94.3% 127 95 33.6%

Fixed Line Revenues

187 184 1.4% 374 371 0.8%

EBITDA

256 211 21.3% 495 429 15.3%

% total revenues

42.7% 39.5% 42.0% 38.5%

EBIT

115 62 85.2% 215 140 53.8%

%

19.3% 11.7% 18.3% 12.5%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

Central America Operating Data

2Q21 2Q20 Var.%

Wireless Subscribers (thousands)

15,912 14,541 9.4%

Postpaid

2,314 2,459 -5.9%

Prepaid

13,599 12,082 12.6%

MOU(1)

170 179 -4.5%

ARPU (US$)

7 7 1.5%

Churn (%)

5.9% 6.7% (0.9)

Revenue Generating Units (RGUs) *

4,327 4,379 -1.2%

* Fixed Line, Broadband and Television. Figures have been adjusted in accordance with the methodology used for all AMX operations.

(1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

page 19

Caribbean

Dominicana continued to improve on the back of its strong competitive position and our ability to cope with client's needs in what has been a fairly restricted market in terms of sanitary measures. We added 126 thousand new wireless clients in the period, 3% more than in the first quarter and connected 14 thousand new broadband accesses. Service revenues increased 14.8% year-on-year (3.0% sequentially) to 12.9 billion dominican pesos, with mobile service revenues expanding 18.2% (2.5% sequentially). Prepaid service revenues, which had taken a hit in the second quarter of 2020, posted a 26.6% annual increase, and a 2.9% sequential rise. Postpaid service revenues started to pick up: they rose 9.2% and 2.1%, respectively. EBITDA was up 27.8% and 3.2%. The sequential increases across the board in revenue and EBITDA foretell the strength of the economic recovery in the island.

126k wireless net adds in Dominicana

In Puerto Rico commercial activity remained subdued, with few client additions on both the fixed and the mobile platforms. Revenues of 227 million dollars were up 13.5% year-on-year on the back of a 33.4% increase in equipment revenues and an 8.1% rise in service revenues. Mobile service revenues were up 17.2% with fixed-line service revenues declining 2.8% on an annual basis. Sequentially mobile service revenues were up 1.7% and those from the fixed-line platform down 1.2%.

Mobile service

revenues +17% YoY

and 1.7% QoQ in

Puerto Rico

EBITDA totaled 47 million dollars having risen 24.3% annually and 1.8% sequentially. The EBITDA margin, 20.8%, was 1.8 percentage points higher than a year before.

EBITDA up 24% YoY

and 1.8% QoQ in

Puerto Rico

INCOME STATEMENT - CaribbeanMillions of Dollars

2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Total Revenues*

467 405 15.4% 919 840 9.4%

Total Service Revenues

405 362 12.0% 799 750 6.6%

Wireless Revenues

295 241 22.2% 581 505 15.1%

Service Revenues

235 199 18.0% 464 417 11.4%

Equipment Revenues

59 42 42.0% 117 88 32.5%

Fixed Line Revenues

171 165 3.8% 339 339 0.1%

EBITDA

169 133 27.1% 333 274 21.4%

% total revenues

36.3% 32.9% 36.2% 32.6%

EBIT

84 51 65.9% 165 110 50.1%

%

18.0% 12.5% 17.9% 13.1%

*Revenues reflect eliminations derived from both the overlap of fixed and mobile operations as well as international intercompany transactions. Total revenues include other income.

page 20

Caribbean Operating Data

2Q21 2Q20 Var.%

Wireless Subscribers (thousands)

6,713 6,087 10.3%

Postpaid

2,112 2,013 4.9%

Prepaid

4,601 4,073 13.0%

MOU(1)

216 232 -6.7%

ARPU (US$)

12 11 9.6%

Churn (%)

2.1% 3.8% -1.7

Revenue Generating Units (RGUs) *

2,615 2,509 4.2%
*

Fixed Line, Broadband and Television.

(1)

We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

United States

As the vaccination process progressed, many U.S. states eliminated some or all the sanitary measures. This has brought about a surge of confidence and with it, a change in the spending pattern of U.S. consumers. Additionally, contrary to what happened at the peak of the pandemic where wireless subscribers felt more comfortable taking prepaid plans, we are now seeing stronger demand for postpaid which has intensified due to the strong commercial activity and promotions in that segment. These trends, coupled with the limited supply of handsets, resulted in net disconnections of 549 thousand in the quarter, approximately two thirds of which were Safelink clients.

549k net disconnections due to strong demand

for postpaid

The strength of the economic recovery under way also manifested itself in the spending by our subscribers, with service revenues climbing 5.3% year-on-year, their best performance in at least a year. They were 4.3% higher than in the preceding quarter.

Service revenues

+5.3% YoY

EBITDA of 272 million dollars was down 13%; the annual comparison is affected by an extraordinary credit booked in the second quarter of last year linked to negotiations of carrier discounts, adjusting for which EBITDA would have grown 25.9%. The EBITDA margin was equivalent to 12.9% of revenues.

Adjusted EBITDA up 26% YoY

INCOME STATEMENT - United States Millions of Dollars

2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Total Revenues

2,101 2,087 0.7% 4,163 4,073 2.2%

Service Revenues

1,822 1,729 5.3% 3,569 3,421 4.3%

Equipment Revenues

279 357 -22.0% 594 652 -8.9%

EBITDA

272 313 -13.0% 457 429 6.6%

% total revenues

12.9% 15.0% 11.0% 10.5%

EBIT

264 294 -10.2% 441 392 12.5%

%

12.6% 14.1% 10.6% 9.6%
page 21

United States Operating Data

2Q21 2Q20 Var.%

Wireless Subscribers (thousands)

20,334 20,918 -2.8%

Straight Talk

9,717 9,743 -0.3%

SafeLink

1,656 2,008 -17.5%

Other Brands

8,961 9,167 -2.3%

MOU

663 677 -2.1%

ARPU (US$)

29 28 5.6%

Churn (%)

4.2% 3.3% 0.9

A1 Telekom Austria Group

We finished June with 22.3 million wireless subscribers, 5.3% more than a year before. Postpaid net additions of 355 thousand were fueled by mobile WiFi routers. In the prepaid segment we gained 38 thousand subscribers; we had 14 thousand disconnections in Austria where we are experiencing migrations from prepaid to postpaid. Fixed-line RGUs were roughly flat in the quarter.

355k postpaid net

adds

Altogether, revenues increased 6.4% annually, with service revenues up 3.9% (5.0% at constant FX) on the back of service revenue growth in all markets-except for Slovenia that was flat-and equipment revenues that grew 22%.

Service revenues

+5.0% YoY at

constant Fx

The first quarter still reflected the impact of severe lockdowns across our footprint, but sanitary measures began to be eased in the second quarter which helped bring about a sequential increase of service revenues of 2.2% supported by roaming revenues that picked up as travel restrictions eased.

Sequential increase

of service revenues,

+2.2% YoY

On the mobile front, on a group level service revenues increased 4.5% over the year and 2.6% sequentially. We had strong growth in Austria, Bulgaria, Croatia and Serbia driven by mobile WiFi. Fixed-line service revenues were up 3.3%-1.7% sequentially-with growth in all segments, especially Austria and Bulgaria as demand for connectivity and solutions remained strong.

Mobile service

revenues +4.5% YoY

EBITDA reached 428 million euros and was up 9.6% over the year; before restructuring charges it rose 8.1%-9.5% at constant exchange rates. On a sequential basis, EBITDA was up 7.4% with Austria expanding 8.8%. The EBITDA margin stood at 36.7% of revenues, 1.1 percentage points higher than a year before.

Adjusted EBITDA

9.5% YoY at

constant Fx

Telekom Austria group has been a top performer in revenue and EBITDA growth within the European telecom sector during the last three years.

page 22

INCOME STATEMENT (In accordance with IFRS 16) - A1 Telekom Austria Group

Millions of Euros
2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Total Revenues

1,166 1,096 6.4% 2,301 2,222 3.6%

Total service revenues

976 939 3.9% 1,932 1,889 2.3%

Wireless service revenues

532 510 4.5% 1,051 1,030 2.0%

Fixed-line service revenues

444 430 3.3% 881 859 2.6%

Equipment revenues

167 137 22.0% 329 295 11.6%

Other operating income

23 19 15.9% 40 38 7.1%

EBITDA

428 390 9.6% 826 771 7.2%

% total revenues

36.7% 35.6% 35.9% 34.7%

Adjusted EBITDA(1)

449 415 8.1% 868 812 6.9%

% total revenues

38.5% 37.9% 37.7% 36.5%

EBIT

187 152 23.6% 351 299 17.3%

% total revenues

16.1% 13.8% 15.2% 13.5%

For further detail please visit www.a1.group/en/investor-relations

(1) Does not include restructuring charges in Austria.

A1 Telekom Austria Group Operating Data

2Q21 2Q20 Var.%

Wireless Subscribers (thousands)

22,325 21,208 5.3%

Postpaid

18,368 17,195 6.8%

Prepaid

3,956 4,013 -1.4%

MOU(1)

429 440 -2.6%

ARPU (Euros)

8 8 0.0%

Churn (%)

1.2% 1.4% (0.2)

Revenue Generating Units (RGUs)*

6,072 6,105 -0.5%

*Fixed Line, Broadband and Television. (1) We modified the methodology for calculating MOUs. We no longer include M2M subscribers.

page 23

Exchange Rates Local Currency Units per MxP

2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Euro

End of Period

0.0426 0.0388 9.9% 0.0426 0.0388 9.9%

Average

0.0414 0.0389 6.5% 0.0411 0.0420 -2.1%

U.S.

End of Period

0.0505 0.0435 16.0% 0.0505 0.0435 16.0%

Average

0.0499 0.0428 16.5% 0.0496 0.0463 7.0%

Brazilean Real

End of Period

0.2526 0.2384 6.0% 0.2526 0.2384 6.0%

Average

0.2645 0.2302 14.9% 0.2669 0.2275 17.3%

Argentinean Peso

End of Period

4.8337 3.0673 57.6% 4.8337 3.0673 57.6%

Average

4.6912 2.8962 62.0% 4.5250 2.9908 51.3%

Chilean Peso

End of Period

36.7505 35.7500 2.8% 36.7505 35.7500 2.8%

Average

35.7278 35.2478 1.4% 35.6841 37.6392 -5.2%

Colombian Peso

End of Period

189.7049 163.6336 15.9% 189.7049 163.6336 15.9%

Average

184.1971 164.7386 11.8% 179.5143 170.8649 5.1%

Guatemalan Quetzal

End of Period

0.3911 0.3352 16.7% 0.3911 0.3352 16.7%

Average

0.3853 0.3297 16.9% 0.3835 0.3560 7.7%

Peruvian Sol

End of Period

0.1952 0.1541 26.6% 0.1952 0.1541 26.6%

Average

0.1895 0.1469 29.0% 0.1849 0.1582 16.8%

Dominican Republic Peso

End of Period

2.8890 2.5484 13.4% 2.8890 2.5484 13.4%

Average

2.8519 2.4555 16.1% 2.8536 2.5763 10.8%

page 24

Exchange Rates Local Currency Units per USD

2Q21 2Q20 Var.% Jan-Jun 21 Jan-Jun 20 Var.%

Euro

End of Period

0.8433 0.8902 -5.3% 0.8433 0.8902 -5.3%

Average

0.8301 0.9082 -8.6% 0.8298 0.9075 -8.6%

Mexican Peso

End of Period

19.8027 22.9715 -13.8% 19.8027 22.9715 -13.8%

Average

20.0438 23.3567 -14.2% 20.1751 21.5954 -6.6%

Brazilean Real

End of Period

5.0022 5.4760 -8.7% 5.0022 5.4760 -8.7%

Average

5.3008 5.3759 -1.4% 5.3842 4.9135 9.6%

Argentinean Peso

End of Period

95.7200 70.4600 35.9% 95.7200 70.4600 35.9%

Average

94.0292 67.6456 39.0% 91.2931 64.5869 41.3%

Chilean Peso

End of Period

727.7600 821.2300 -11.4% 727.7600 821.2300 -11.4%

Average

716.1197 823.2708 -13.0% 719.9293 812.8329 -11.4%

Colombian Peso

End of Period

3,756.6700 3,758.9100 -0.1% 3,756.6700 3,758.9100 -0.1%

Average

3,692.0052 3,847.7428 -4.0% 3,621.7134 3,689.8891 -1.8%

Guatemalan Quetzal

End of Period

7.7440 7.7003 0.6% 7.7440 7.7003 0.6%

Average

7.7233 7.7011 0.3% 7.7376 7.6890 0.6%

Peruvian Sol

End of Period

3.8660 3.5410 9.2% 3.8660 3.5410 9.2%

Average

3.7980 3.4314 10.7% 3.7298 3.4174 9.1%

Dominican Republic Peso

End of Period

57.2100 58.5400 -2.3% 57.2100 58.5400 -2.3%

Average

57.1628 57.3524 -0.3% 57.5708 55.6356 3.5%
page 25

Glossary of Terms

ARPU

Average Revenue per User. The ratio of service revenues in a given period to the average number of wireless subscribers in the same period. It is presented on a monthly basis.

ARPM

Average Revenue per Minute. The ratio of service revenues to airtime traffic.

Capex

Capital Expenditure. Accrued capital expenditures related to the expansion of the telecommunications infrastructure.

Churn

Disconnection Rate. The ratio of wireless subscribers disconnected during a given period to the number of wireless subscribers at the beginning of that period.

EBIT

Earnings Before Interest and Taxes, also known as Operating Profit.

EBIT

margin

The ratio of EBIT to total operating revenue.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization.

EBITDA

margin

The ratio of EBITDA to total operating revenue.

EPS

(Mexican

pesos)

Earnings per share. Total earnings in Mexican pesos divided by total shares.

Earnings

per ADR

(US$)

Total earnings in U.S. dollars divided by total ADRs equivalent.

Gross

additions

Total number of subscribers acquired during the period.

Licensed

pops

Licensed population. Population covered by the licenses that each of the companies manage.

LTE

Long-term evolution is a 4th generation standard for wireless communication of high-speed data for mobile phones and data terminals.

Market

share

A company's subscriber base divided by the total number of subscribers in that country.

MBOU

Megabytes of Use per subscriber. The ratio of wireless data in a given period to the average number of wireless subscribers in that same period. It is presented on a monthly basis.

MOU

Minutes of Use per subscriber. The ratio of wireless traffic in a given period to the average number of wireless subscribers in that same period. It is presented on a monthly basis.

Net

subscriber

additions

The difference in the subscriber base from one period to another. It is the different between gross additions and disconnections.

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Net debt

Total short and long term debt minus cash and marketable securities.

Net debt

/ EBITDA

The ratio of total short and long term debt minus cash and securities to trailing 12-month income before interest, taxes, depreciation and amortization.

Prepaid

Subscriber that may purchase airtime to recharge a cellular phone. The client does not hold a contract with the company for voice and data services.

Postpaid

Subscriber that has a contract for the use of airtime. The client has no need of activating airtime, it is done so immediately.

SMS

Short Message Service.

SAC

Subscriber Acquisition Cost. The sum of handset subsidies, marketing expenses and commissions to distributors for handset activation. Handset subsidy is calculated as the difference between equipment cost and equipment revenues.

Wireless

penetration

The ratio of total wireless subscribers in any given country divided by the total population in that country.