Mexican duo report first quarter financials

29 Apr 2009

Mexican fixed line and broadband provider Axtel and wireless operator Iusacell have released financial results for the three months ended 31 March 2009.

Axtel, the country’s largest alternative telephony operator by subscribers, revealed a net loss for the period of MXN349 million (USD24.9 million), down from a net profit of MXN88 in the same quarter a year earlier. Revenues for the three-month period also fell from MXN2.85 billion in 1Q 2008 to MXN2.79 billion in 1Q 2009, attributed to a drop in local and long-distance calls. Axtel reported that revenues from local call services fell 9% year-on-year to MXN1.17 billion, noting that reduced traffic from one of its largest wholesale customers was a significant factor. Long-distance revenues fell 7% in the period to MXN307 million. Data services and international traffic helped to offset the decline however, reporting revenue growth of 4% and 25% respectively. The number of fixed lines in service for Axtel declined to 917,000 from 965,000 a year earlier, while customers taking the company’s high speed internet services rose 29% y-o-y to 104,000.

Meanwhile, cellco Iusacell announced that, despite a 5% rise y-o-y in revenue for the period, it had posted a net loss of MXN678 million, down from a net loss of MXN279 a year earlier. The company attributed the result primarily to foreign exchange losses as a result of the depreciation of the peso during the quarter. Revenues for the three-month period were MXN2.89 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) were MXN489 million, down from MXN575 million in 1Q 2008. The operator also reported its subscriber base had fallen to 3.536 million. It noted, however, that the decline could be attributed to a change in reporting method; during the quarter it updated its figures to reflect only those pre=paid subscribers that are currently active, meaning that they have recently acquired pre-paid air time and still receive calls. Pre-paid subscribers were down 19% to 2.383 million against the same period last year, while post-paid subscribers rose 12% to 1.153 million.

Mexico, Axtel, Iusacell (inc. Unefon)