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.