Axtel reports revenue declines in 4Q12

20 Feb 2013

Mexican alternative fixed line operator Axtel has released its financial results for the final quarter of 2012, with the company revealing that revenues fell by 13% year-on-year, while EBITDA slumped 36%. In the three months to 31 December 2012 Axtel recorded a total turnover of MXN2.418 billion (USD185.7 million), down from MXN2.768 million in the same period of 2011, with the telco registering a 57% annual decline in revenues from international traffic alone, which it attributed to a blended 44% decline in prices and a 23% reduction in volume. Local and long-distance revenues meanwhile fell by 6% and 3% to MXN876 million and MXN276 million respectively. The only area in which the operator saw revenue growth was from data and network services, which increased by 8% against 4Q11 to MXN716 million. Adjusted EBITDA in 4Q12 stood at MXN572 million, down from MXN891 million in the corresponding period of 2011, while net losses widened from MXN279 million in the last quarter of 2011 to MXN415 million a year later.

In terms of accesses, as at end-December 2012 Axtel had a total of 493,000 broadband subscribers on its books, representing a 13% increase against end-2011, though customer numbers only rose by 3,000 in the last quarter of 2011, compared to a 29,000 increase in 4Q11. Of the company’s broadband subscribers, 377,000 are connected via WiMAX technology, up from 368,000 at December 2012, while fibre-to-the-home (FTTH) connections numbered 100,000 at end-2012. Axtel noted that the slower rate of customer growth in 4Q12 could be explained by ‘the acceleration of WiMAX disconnections that cannot be totally compensated by the acquisition of new FTTH subscribers.’ Meanwhile fixed voice accesses totalled 997,000 at 31 December 2012, down 42,000 from 1.039 million a year earlier.

Mexico, Axtel