Axtel revenues rise in 1Q14

30 Apr 2014

Mexico’s Axtel has published its financial results for the three months ended 31 March 2014, recording a 30% increase in total turnover, which stood at MXN2.971 billion (USD224.6 million). With the company reporting a 16% year-on-year increase in revenue in the enterprise sector to MXN1.581 billion, it noted that this had offset declines in the mass market segment, where revenues had fallen by 4% to MXN3.522 million. Despite an increase in turnover from consumer broadband and video services (up 33% year-on-year), local and long-distance revenues were down by 13% and 11% respectively.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in 1Q 2014 totalled MXN728 million, up from MXN672 million in the year-ago period, but down from the MXN749 million recorded in the last quarter of 2013. Meanwhile, despite the increased revenues, Axtel posted an operating loss of MXN148 million in 1Q14, compared to an operating profit of MXN2.968 billion in the corresponding period of 2013, though it said this was predominantly due to gains related to the sale of telecommunications towers in January 2013.

At end-March 2014 Axtel’s broadband subscriber base stood at 514,000, up from 479,000 a year earlier, with the number of customers signed up to its ‘X-tremo’ branded fibre-to-the-home services rising from 109,000 to 157,000. WiMAX accesses meanwhile fell 356,000 to 347,000. Fixed voice lines in service totalled 933,000 at the end of the reporting period, representing a 2% drop from the 957,000 such connections on the operator’s books a year earlier.

Mexico, Axtel