Net loss for Axtel in 2Q due to forex losses, higher interest payments

27 Jul 2010

Axtel, Mexico’s second largest fixed line provider by subscribers, has released its financial results for the three months ended 30 June 2010, posting a net loss of MXN220.4 million (USD17.3 million) on the back of foreign exchange losses related to the depreciation of the Mexican peso and higher interest payments on its debt. By comparison in the same period a year earlier the telco registered a net profit of MXN485.8 million. Revenues for the company’s second fiscal quarter of the 2010/11 financial year stood at MXN2.76 billion, almost unchanged from the MXN2.74 billion generated a year earlier, while adjusted earnings before interest, tax, depreciation and amortisation (EBTIDA) fell 8.2% to MXN920 million.

In operational terms, at end-June 2010 Axtel reported a fixed line subscriber base of just over one million, up around 10% on the same date a year earlier, while its broadband customer base saw a more marked increase, rising 81% against end-June 2009 to 223,000. In addition the operator revealed that its WiMAX subscriber base had risen to 270,000.

Mexico, Axtel