Axtel announces strong results for 2007

27 Feb 2008

Mexican fixed line telephony operator Axtel has reported solid growth in its annual results for 2007. Net income for the twelve months ended 31 December 2007 increased 121% from MXN222 million (USD20.6 million) in 2006 to MXN491 million, whilst revenues increased 82% to MXN12.1 billion (USD1.13 billion). Local services continued to be the firm’s most important revenue generator, accounting for 43% of total sales. Data and Network services contribution leapt in 2007, generating 20.6% of the total compared to just 8.7% in 2006. Adjusted EBITDA rose 76% to MXN4.08 billion (USD378 million) during the period, though EBITDA margins fell slightly to 33.5%.

At the end of 2007 Axtel reported it had 932,300 fixed lines in service, including 21,000 which it acquired as a result of its December 2006 acquisition of Avantel, which also enlarged its footprint into another ten cities. Internet subscriptions rose by 4% to 109,175 subscribers; Axtel reports that it continues to upgrade subscriptions to broadband, which represents 69% of the total.

Mexico, Axtel