Axtel first-quarter profit back in the black

30 Apr 2010

Mexican alternative fixed line operator Axtel has revealed that it returned to first-quarter profitability for the three months ended 31 March 2010, posting a net profit of MXN45.86 million (USD3.8 million) compared to an MXN348.6 million loss in the same period last year. The telco attributed the improved results to foreign exchange gain, which helped offset weak operating results. In the three-month period Axtel generated turnover of MXN2.47 million, down 12% year-on-year, while adjusted earnings before interest, tax, depreciaton and amortisation (EBITDA) tumbled 29% compared to 1Q 2009 at MXN679 million. Operating expenses meanwhile were up 9% at MXN1.09 million. The operator has said that it is reinforcing a number of productivity measures aimed at improving its financial performance; among them it has said it will reduce its workforce and implement efficiency initiatives related to rents and outsourcing activities that should reduce operating expenses by MXN15 million to MXN20 million per month starting in May 2010.

At end-March 2010 Axtel reported a total of 984,000 lines in service, up 67,000 against the 917,000 it had a year earlier, with residential lines accounting for 67% of the total. Broadband subscriber numbers also increased, up 64% y-o-y at 186,000, with the telco attributing the growth to new commercial offers introduced during the three-month period, in addition to the functionality and bandwidth capacity offered via its WiMAX network.

Mexico, Axtel