- Mexican telco is optimistic that extraordinary and non-recurring revenue in 4Q24 will allow it reach the MXN 11.9bn (USD 597.5m at today’s exchange rate) revenue and MXN 3.65bn (USD 183.3m) EBITDA guidance for FY2024
- Extraordinary revenue usually complements results and that usually comes in the last quarter of the year, said CFO Adrian de los Santos
- Government sales are gaining traction and the enterprise segment usually sees a larger amount of non-recurrent transactions in 4Q
- FY2024 capex will be around 4% to 6% below the USD 78m guidance given earlier this year
- Capex in 3Q24 was USD 18m, compared to USD 20m in 3Q23
- Government sales increased 15% YoY in 3Q24, which offset softer performance in the infrastructure segment
- Growth in government driven by sales to state and local entities, which increased 68% YoY in 3Q24
- Recurring revenue in government segment up 21% YoY in 3Q24 and 24% YTD
- Legacy voice revenues down 12% YoY and voice now represents 7% of enterprise revenue, compared to 9% in 3Q23
- Excluding voice services, enterprise revenue would have increased 5% YoY
- General corporate expenses down 13% YoY due in part to the transfer of certain expenses to different business units, as well as rightsizing
- EBITDA up 6% YoY to USD 45m, due to decrease in general expenses and sales increases. Net-debt-to-comparable-EBITDA was 2.6x
- Axtel reported negative working capital of USD 4m and interest expense was USD 16m
- Cash flow totaled USD 7m in 3Q24
- Cash balance was USD 70m, compared to starting balance of USD 67m
Mexican telco Axtel said in an earnings call today (18 October) it will be a challenge to reach the FY2024 revenue and EBITDA guidance, but it’s confident that extraordinary and non-recurring sales in the fourth quarter will help it reach its goals.
CFO Adrian de los Santos said the enterprise segment usually has a larger amount of non-recurring sales in the fourth quarter, compared to the rest of the year. Capex is down 4% to 6% year to date, in line with the lower sales, and the company expects investments will end 2024 still below the USD 78m guidance by around 4% to 6%, he added.
Axtel is participating in bids to connect data centers in central Queretaro state to the northern border with the US, near Laredo and McAllen, in Texas. It’s also participating in bids to connect those data centers to the Gulf Coast state of Veracruz and to Quintana Roo state in the Yucatan peninsula, where they would link to submarine cables that reach Florida, said management.
by Xochitl Herrera, San Luis Potosi