Axtel reports lower profits due to personnel costs

28 Feb 2011

Mexican telco Axtel has recorded sales of MXN10.6 billion (USD900 million) for 2010, representing a fall of 3% year-on-year, largely as a result of an 11% decline in international calling revenues. Adjusted EBITDA was down 16% to MXN3.2 billion, while operating income slumped 69% to MXN241 million. The fall in profitability was largely down to higher costs as a result of an increase in wages and salaries that was granted in July 2010. At 31 December 2010 the company had just over one million voice telephony lines in service, up 8% year-on-year, while broadband subscribers had doubled to reach 315,000.

Mexico, Axtel