During the first quarter of the year, Axtel’s operating flow amounted to 800 million pesos (mp), that is, an increase of 46 percent compared to the 547 million pesos in the same period last year.
“The flow growth was the result of a greater contribution to it by the business segments and lower central expenses, mitigated by the decrease in other income,” Axtel explained.
He added that his total revenues reached 2,649 million pesos in the quarter, a reduction of four percent compared to the same period in 2023, due to drops of 40 and four percent in the Government and Wholesale segments, respectively, partially mitigating a three percent increase in the Business segment.
He detailed that the income of the Business segment totaled two thousand 9 million pesos in the quarter, an increase of three percent compared to the same period last year, due to increases of two, 14 and three percent in standard services, added value and digital transformation, respectively.
Revenues from the Government segment reached 214 million pesos, a reduction of 40 percent compared to the amount a year ago due to a difficult comparable base, mainly explained by an extraordinary value-added services transaction in the previous year quarter, slightly mitigated for a 31 percent increase in digital transformation solutions.
Wholesale revenues reached 426 million pesos, four percent less compared to the same quarter of the previous year, mainly explained by a decrease in continuity services related to the disinvestment in the mass market in 2019 and in connectivity revenues with multinational operators, partially mitigated by a higher level of revenue from dark fiber contracts.
In the quarter in question, the company reported a net loss of nine million pesos, which compares negatively against 221 million pesos in the first quarter of 2023.
“We begin 2024 with positive results, in line with our budget, reflecting solid execution of our business line strategy. Likewise, we expect benefits from the attention focused on target industries, promoting use cases that support the digital transformation of our clients,” said Armando de la Peña, general director of Axtel.
He added that the consolidation of the specialization model is reflected in a “funnel” of new projects that is 65 percent greater than the average of the previous year. Revenue growth, primarily in the business segment, coupled with a leaner organization, contributed to nine percent growth in comparable Ebitda.
“The favorable results, a debt profile without relevant maturities in the coming years and better prospects, contributed to modifying Axtel’s outlook from negative to stable by the rating agencies,” said de la Peña.
“Going forward, we envision cybersecurity, cloud, and systems integration services continuing their double-digit growth trend, offsetting lower growth in mature services. In the government sector we have implemented strategies to achieve greater participation with state and municipal clients, to offset the impacts of an election year. Finally, the benefits of a more agile and efficient organization will contribute to growing Axtel’s profitability in the year,” he added.
