—Capex for the quarter was equivalent
to 29.7% of the company's revenue, compared to Capex
equivalent to 41.7% of revenue a year ago—
—The balance of EBITDA less Capex and interest
was Ps.241 million, highest figure since the company issues
public debt—
MEXICO
CITY, April 25, 2024 /PRNewswire/ -- Total Play
Telecomunicaciones, S.A.P.I. de C.V. ("Total Play"), a leading
telecommunications company in Mexico, which offers internet access, pay
television and telephony services, through one of the largest 100%
fiber optic networks in the country, announced today financial
results for the first quarter of 2024.
"Amidst Total Play's robust positive cash flow trajectory, we
have reached the pinnacle of cash generation balance this quarter –
defined as EBITDA less Capex and interest paid – since the company
issues public debt. This accomplishment stems from our commitment
to moderating the growth of the company's subscriber base, rigorous
financial discipline, and implementing initiatives aimed at
enhancing our operational efficiency. Consistent with this
strategy, EBITDA has sustained its strong momentum, experiencing a
double-digit increase, while Capex for the period accounted for
only 29.7% of revenue, which boosts the cash generation and
reaffirms the financial strength of the company," commented
Eduardo Kuri, CEO of Total Play.
On the balance sheet, Total Play announced this April that it
has significantly extended its debt profile through the successful
refinancing of 90% of its US$575
million Senior Notes due 2025 into new Senior Notes with a
final maturity in 2028," Mr. Kuri added. "The refinancing, together
with the growing cash generation, shows the solid results of our
strategy that further strengthens Total Play's capital structure
and additionally boosts its liquidity prospects."
First quarter results
Revenue for the quarter was Ps.11,087 million, 13% higher from
Ps.9,826 million of the same period of the previous year. Total
costs and expenses were Ps.6,099 million, compared to Ps.5,391
million in the previous year.
As a result, Total Play's EBITDA grew 12%, to Ps.4,988 million,
from Ps.4,435 million a year ago; EBITDA margin for the quarter was
45%. The company recorded operating income of Ps.836 million,
compared to Ps.593 million a year ago.
Total Play reported a net loss of Ps.1,164 million, from a
profit of Ps.317 million in the same quarter of 2023.
|
Q1
2023
|
Q1
2024
|
Change
|
|
|
|
Ps.
|
%
|
|
|
|
|
|
Revenue from
services
|
$9,826
|
$11,087
|
$1,261
|
13 %
|
|
|
|
|
|
EBITDA
|
$4,435
|
$4,988
|
$553
|
12 %
|
|
|
|
|
|
Operating
income
|
$593
|
$836
|
$243
|
41 %
|
|
|
|
|
|
Net
result
|
$317
|
$(1,164)
|
$(1,481)
|
----
|
|
|
|
|
|
Amounts in millions of
pesos.
|
EBITDA: Earnings before
interest, depreciation, and amortization.
|
Service revenue
The company's revenue grew 13%, driven by a 10% increase in
sales from the residential segment and a 29% growth in revenue from
the corporate business.
Totalplay Residencial's revenue growth, to Ps.9,078 million,
compared to Ps.8,273 million the previous year, is related to a 10%
increase in the number of subscribers to the company's services
compared to the same quarter of the previous year, to reach
4,907,389 —a figure that includes 68,958 small and medium-sized
companies — this period. Compared to the previous quarter, the
number of net additions grew by 127,909 subscribers, in line with
Total Play's subscriber base growth moderation strategy.
The average revenue per subscriber for the quarter — ARPU — was
Ps.617, unchanged from the same quarter of the previous year.
As previously announced, during the first quarter of 2023 the
company's investment program in geographic coverage concluded,
given that the areas in which its target market is located
throughout the country was reached. Accordingly, the number of
homes passed in Mexico at the end
of this period was 17,568,145, a figure with minor variations
compared to 17,503,742 a year ago.
Penetration — the proportion of homes passed by Total Play that
use its telecommunications services — was 27.9% at the end of the
quarter, up from 25.5% a year ago.
Revenue from the corporate segment was Ps.2,009 million, from
Ps.1,553 million the previous year. This increase is attributed to
the implementation of projects by various organizations in recent
months.
Costs and expenses
Total costs and expenses grew 13%, driven by both, a 14%
increase in service costs and a 12% rise in general expenses.
The increase in costs, to Ps.2,295 million, from Ps.2,008
million the previous year results mainly from increased costs of
content, links and business projects, partially offset by lower
membership and interconnection costs.
The increase in expenses, to Ps.3,804 million, from Ps.3,383
million, reflects higher maintenance and fee expenses — in the
context of the company´s growing operations — partially offset by
reduction in advertising and personnel expenses.
EBITDA and net result
Total Play's EBITDA was Ps.4,988 million, 12% higher compared to
Ps.4,435 million the previous year.
Relevant variations below EBITDA were the following:
Increase of Ps.310 million in depreciation and amortization,
mainly from user acquisition costs, related to telecommunications
equipment, labor, and installation expenses.
Growth of Ps.151 million in interest expenses, consistent with
the increase in the balance of financial debt.
Decrease of Ps.1,442 million in foreign exchange gains,
attributed to the net liability monetary position in foreign
currency, coupled with a more moderated appreciation of the peso
against the basket of currencies in which the company's monetary
liabilities are denominated this quarter, compared to the previous
year.
Total Play reported a net loss of Ps.1,164 million, from a
profit of Ps.317 million in the same period of 2023.
Balance sheet
As of March 31, 2024, the
company's debt with cost from loans was Ps.51,388 million, compared
to Ps.48,228 million the previous year. The growth of the debt
balance is related to loans from financial institutions during the
period.
The lease liability was Ps.5,459 million, 23% lower compared to
Ps.7,077 million the previous year.
The balance of cash and cash equivalents, including restricted
cash in trusts, totaled Ps.4,860 million, 9% higher compared to
Ps.4,445 million a year ago. Consequently, the company's net debt
was Ps.51,987 million, compared to Ps.50,860 million in the
previous year.
The debt ratio — Net Debt / EBITDA for the last two annualized
quarters — was 2.67 times, as a result of solid EBITDA growth,
together with greater relative stability of the net debt
balance.
Total Play's fixed assets — which include the accumulated
investment in fiber optics, telecommunications equipment, and the
cost of acquiring subscribers, among other assets — were Ps.61,693
million, 4% above Ps.59,227 million a year ago.
In line with the company's strategy to extend its maturity
profile, the balance of short-term debt with cost decreased 38% to
Ps.4,555 million, from Ps.7,340 million a year ago.
Additionally, as previously announced, Total Play concluded in
April a successful refinancing process of US$519 million from its US$575 million Senior Notes due in 2025,
extending the maturity to 2028, which further expands Total Play´s
debt profile.
About Total Play
Total Play is a leading Triple Play provider in Mexico that, thanks to the widest
direct-to-home fiber optic network in the country, offers
entertainment and technologically advanced services with the
highest quality and speed in the market. For the latest news and
updates about Total Play, visit: www.totalplay.com.mx.
Total Play is a Grupo Salinas company (www.gruposalinas.com), a
group of dynamic, fast-growing, and technologically advanced
companies focused on creating economic value through market
innovation and goods and services that improve standards of living;
social value to improve community well-being; and environmental
value by reducing the negative impact of its business activities.
Created by Mexican entrepreneur Ricardo B.
Salinas (www.ricardosalinas.com), Grupo Salinas operates as
a management development and decision forum for the top leaders of
member companies. Each of the Grupo Salinas companies operates
independently, with its own management, board of directors, and
shareholders. Grupo Salinas has no equity holdings. The group of
companies shares a common vision, values, and strategies for
achieving rapid growth, superior results, and world-class
performance.
Except for historical information, the matters discussed in
this press release are concepts about the future that involve risks
and uncertainty that may cause actual results to differ materially
from those projected. Other risks that may affect Total Play and
its subsidiaries are presented in documents sent to the securities
authorities.
Investor Relations:
Bruno Rangel
+ 52 (55)
1720 9167
jrangelk@totalplay.com.mx
Rolando Villarreal
+ 52
(55) 1720 9167
rvillarreal@totalplay.com.mx
Press Relations:
Luciano Pascoe
Tel.
+52 (55) 1720 1313 ext. 36553
lpascoe@gruposalinas.com.mx
TOTAL PLAY
TELECOMUNICACIONES, S.A.P.I. DE C.V. AND
SUBSIDIARIES
|
CONSOLIDATED
QUARTERLY INCOME STATEMENTS
|
(Millions of Mexican
pesos)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q23
|
|
1Q24
|
|
Change
|
|
|
$
|
%
|
|
$
|
%
|
|
$
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from
services
|
9,826
|
100 %
|
|
11,087
|
100 %
|
|
1,261
|
13 %
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
(2,008)
|
(20 %)
|
|
(2,295)
|
(21 %)
|
|
(287)
|
(14 %)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
7,818
|
80 %
|
|
8,792
|
79 %
|
|
974
|
12 %
|
|
|
|
|
|
|
|
|
|
|
|
General
expenses
|
(3,383)
|
(34 %)
|
|
(3,804)
|
(34 %)
|
|
(421)
|
(12 %)
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
4,435
|
45 %
|
|
4,988
|
45 %
|
|
553
|
12 %
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
(3,842)
|
(39 %)
|
|
(4,152)
|
(37 %)
|
|
(310)
|
(8 %)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
593
|
6 %
|
|
836
|
8 %
|
|
243
|
41 %
|
|
|
|
|
|
|
|
|
|
|
|
Financial
cost:
|
|
|
|
|
|
|
|
|
|
Interest
revenue
|
51
|
1 %
|
|
69
|
1 %
|
|
18
|
35 %
|
|
Change in fair value of
financial instruments
|
(189)
|
(2 %)
|
|
(297)
|
(3 %)
|
|
(108)
|
(57 %)
|
|
Accrued interest
expense
|
(1,326)
|
(13 %)
|
|
(1,477)
|
(13 %)
|
|
(151)
|
(11 %)
|
|
Other financial
expenses
|
(112)
|
(1 %)
|
|
(42)
|
(0 %)
|
|
70
|
62 %
|
|
Foreign exchange gain -
Net
|
1,852
|
19 %
|
|
410
|
4 %
|
|
(1,442)
|
(78 %)
|
|
|
276
|
3 %
|
|
(1,337)
|
(12 %)
|
|
(1,613)
|
n.m.
|
|
|
|
|
|
|
|
|
|
|
|
Equity interest in net
results of non-controlling entities
|
(1)
|
(0 %)
|
|
-
|
0 %
|
|
1
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
Profit (Loss) before
income tax provisions
|
868
|
9 %
|
|
(501)
|
(5 %)
|
|
(1,369)
|
(158 %)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
(551)
|
(6 %)
|
|
(663)
|
(6 %)
|
|
(112)
|
(20 %)
|
|
|
|
|
|
|
|
|
|
|
|
Net profit (Loss)
for the period
|
317
|
3 %
|
|
(1,164)
|
(10 %)
|
|
(1,481)
|
n.m.
|
|
TOTAL PLAY
TELECOMUNICACIONES, S.A.P.I. DE C.V. AND
SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS
|
(Millions of Mexican
pesos)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March
31,
|
|
|
|
|
|
|
2023
|
|
|
2024
|
|
|
Change
|
|
|
|
$
|
%
|
|
$
|
%
|
|
$
|
%
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
2,062
|
2 %
|
|
2,138
|
3 %
|
|
76
|
4 %
|
|
Restricted cash in
trusts
|
|
2,383
|
3 %
|
|
2,722
|
3 %
|
|
339
|
14 %
|
|
Customers -
net
|
|
4,650
|
6 %
|
|
4,177
|
5 %
|
|
(473)
|
(10 %)
|
|
Other accounts
receivable
|
|
174
|
0 %
|
|
182
|
0 %
|
|
8
|
5 %
|
|
Recoverable
taxes
|
|
3,885
|
5 %
|
|
4,137
|
5 %
|
|
252
|
6 %
|
|
Related
parties
|
|
325
|
0 %
|
|
319
|
0 %
|
|
(6)
|
(2 %)
|
|
Inventories
|
|
2,343
|
3 %
|
|
2,507
|
3 %
|
|
164
|
7 %
|
|
Prepaid
expenses
|
|
707
|
1 %
|
|
593
|
1 %
|
|
(114)
|
(16 %)
|
|
Total current
assets
|
|
16,529
|
20 %
|
|
16,775
|
20 %
|
|
246
|
1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Related
parties
|
|
145
|
0 %
|
|
233
|
0 %
|
|
88
|
61 %
|
|
Property, plant and
equipmente - Net
|
|
59,227
|
71 %
|
|
61,693
|
72 %
|
|
2,466
|
4 %
|
|
Rights-of-use assets
-Net
|
|
6,479
|
8 %
|
|
4,492
|
5 %
|
|
(1,987)
|
(31 %)
|
|
Trademarks and other
assets
|
|
1,453
|
2 %
|
|
2,093
|
2 %
|
|
640
|
44 %
|
|
Total non-current
assets
|
|
67,304
|
80 %
|
|
68,511
|
80 %
|
|
1,207
|
2 %
|
|
Total
assets
|
|
83,833
|
100 %
|
|
85,286
|
100 %
|
|
1,453
|
2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
SHORT-TERM
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Financial
debt
|
|
7,340
|
9 %
|
|
4,555
|
5 %
|
|
(2,785)
|
(38 %)
|
|
Lease
liabilities
|
|
2,234
|
3 %
|
|
2,457
|
3 %
|
|
223
|
10 %
|
|
Trade
payables
|
|
12,037
|
14 %
|
|
14,708
|
17 %
|
|
2,671
|
22 %
|
|
Reverse
factoring
|
|
2,424
|
3 %
|
|
1,743
|
2 %
|
|
(681)
|
(28 %)
|
|
Other payables and
payable taxes
|
|
2,097
|
3 %
|
|
1,809
|
2 %
|
|
(288)
|
(14 %)
|
|
Related
parties
|
|
615
|
1 %
|
|
1,026
|
1 %
|
|
411
|
67 %
|
|
Liabilities from
contracts with customers
|
|
775
|
1 %
|
|
471
|
1 %
|
|
(304)
|
(39 %)
|
|
Interest
payable
|
|
392
|
0 %
|
|
258
|
0 %
|
|
(134)
|
(34 %)
|
|
Derivative financial
instruments
|
|
187
|
0 %
|
|
111
|
0 %
|
|
(76)
|
(41 %)
|
|
Total short-term
liabilities
|
|
28,101
|
34 %
|
|
27,138
|
32 %
|
|
(963)
|
(3 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Financial
debt
|
|
40,888
|
49 %
|
|
46,833
|
55 %
|
|
5,945
|
15 %
|
|
Lease
liabilities
|
|
4,843
|
6 %
|
|
3,002
|
4 %
|
|
(1,841)
|
(38 %)
|
|
Derivative financial
instruments
|
|
1,822
|
2 %
|
|
-
|
0 %
|
|
(1,822)
|
(100 %)
|
|
Employee
benefits
|
|
55
|
0 %
|
|
84
|
0 %
|
|
29
|
53 %
|
|
Deferred income
tax
|
|
2,906
|
3 %
|
|
5,916
|
7 %
|
|
3,010
|
104 %
|
|
Total long-term
liabilities
|
|
50,514
|
60 %
|
|
55,835
|
65 %
|
|
5,321
|
11 %
|
|
Total
liabilities
|
|
78,615
|
94 %
|
|
82,973
|
97 %
|
|
4,358
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
5,218
|
6 %
|
|
2,313
|
3 %
|
|
(2,905)
|
(56 %)
|
|
Total liabilities
and stockholders' equity
|
|
83,833
|
100 %
|
|
85,286
|
100 %
|
|
1,453
|
2 %
|
|
TOTAL PLAY
TELECOMUNICACIONES, S.A.P.I. DE C.V. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS
OF CASH FLOWS
|
(Millions of Mexican
pesos)
|
|
|
|
|
|
|
|
|
|
|
3rd months period
ended
|
|
|
|
|
March 31,
|
|
|
|
|
2023
|
2024
|
Operating
activities:
|
|
|
|
|
|
Profit (Loss) before
income tax provision
|
|
|
|
868
|
(501)
|
Items not requiring the
use of resources:
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
3,841
|
4,152
|
Employee
benefits
|
|
|
|
7
|
9
|
Items related to
investing or financing activities:
|
|
|
|
|
|
Accrued interest
income
|
|
|
|
(51)
|
(69)
|
Accrued interest
expense and other financial transactions
|
|
|
|
1,627
|
1,816
|
Unrealized foreign
exchange gain
|
|
|
|
(1,920)
|
(187)
|
Non-Controlling
Participation
|
|
|
|
1
|
-
|
|
|
|
|
4,373
|
5,220
|
Resources (used in)
generated by operating activities:
|
|
|
|
|
|
Customers and unearned
revenue
|
|
|
|
644
|
(274)
|
Other
receivables
|
|
|
|
62
|
2
|
Related parties,
net
|
|
|
|
197
|
65
|
Taxes to be
recovered
|
|
|
|
(75)
|
4
|
Inventories
|
|
|
|
(1)
|
419
|
Advance
payments
|
|
|
|
201
|
(64)
|
Trade
payables
|
|
|
|
1,347
|
1,195
|
Other
payables
|
|
|
|
(345)
|
394
|
|
|
|
|
|
|
Cash flows generated by
operating activities
|
|
|
|
6,403
|
6,961
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Acquisition of
property, plant and equipment
|
|
|
|
(4,096)
|
(3,293)
|
Other assets
|
|
|
|
(87)
|
15
|
Collected
interest
|
|
|
|
51
|
69
|
|
|
|
|
|
|
Cash flows (used in)
investing activities
|
|
|
|
(4,132)
|
(3,209)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Loans
received
|
|
|
|
473
|
(538)
|
Leasing cash
flows
|
|
|
|
(659)
|
(601)
|
Restricted Cash in
Trusts
|
|
|
|
(396)
|
654
|
Reverse
factoring
|
|
|
|
(267)
|
(491)
|
Derivative financial
instruments
|
|
|
|
(25)
|
(1,561)
|
Interest
payment
|
|
|
|
(1,225)
|
(1,454)
|
|
|
|
|
|
|
Cahs flows used in
financing activities
|
|
|
|
(2,099)
|
(3,991)
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
|
|
172
|
(239)
|
Cash and cash
equivalents at the beginning of the year
|
|
|
|
1,890
|
2,377
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the year
|
|
|
|
2,062
|
2,138
|
View original
content:https://www.prnewswire.com/news-releases/total-play-announces-12-growth-in-ebitda-in-the-first-quarter-of-2024-at-a-record-level-of-ps4-988-million-302128119.html
SOURCE Total Play Telecomunicaciones, S.A.P.I. de C.V.