Axtel 3Q EBITDA up 13%; launches in 17th city

25 Oct 2006

Mexican wireline operator Axtel has reported a 13% rise in EBITDA for the third quarter of 2006, on the back of a steady increase in subscribers and revenues. Turnover increased to MXN1.5 billion (USD139 million) in the third quarter, from MXN1.3 billion in the same period of 2005, leading to an adjusted EBITDA of MXN526.2 million, up from MXN465.6 million a year earlier. Axtel launched fixed-wireless services in Irapuato in the quarter and now has a presence in 17 cities; it plans to have networks in 30 to 40 cities by the end of 2007. It targets markets where there is little competition in the local telephony sector other than from fixed line incumbent Telmex. At the end of September 2006 Axtel had 733,067 lines in service, up from 605,904 at the start of the year. Internet subscribers reached 61,062, of which 42,205 took high speed services.

Mexico, Axtel