Mexican portal and ISP Todito (www.todito.com) posted revenues of 27.4mn pesos (US$3mn) in 1Q02, up 50% compared to the 18.3mn pesos in the same period last year, due mainly to uptake of prepaid services and advertising sales, Todito said in a statement.
Cash sales of 23.9mn pesos were up 47% compared to the same period last year, and represented 87% of total sales. Non-cash sales of 3.5mn pesos took the form of online advertising, which Todito exchanged for goods and services necessary for its operations, such as bandwidth, printed advertising and online publicity.
The 50% increase in the company's sales was primarily due to the success of advertising sales, thanks to the close synergies with shareholder TV Azteca, Todito COO Adrian Gonzalez told BNamericas, adding there is greater interest among advertisers to use the Internet as an advertising medium.
Ebitda for 1Q02 was 8.3mn pesos, up 83% compared to 4.5mn pesos in 1Q01.
Operating expenses totaled 19.1mn pesos, of which 81% were cash costs and the rest traded for the services mentioned above. Cash costs, totaling 15.6mn pesos were up 33% compared to 1Q01, mainly because of increased sales commission obligations arising from higher online advertising, as well as sales commissions and bandwidth costs relating to internal sales of Todito's Internet connection service.
Internet access sales, in the form of the Todito Card prepaid system and Todito En Linea subscription service, totaled 3.1mn pesos, up 6.5% compared to 1Q01. Advertising sales grew 33% to reach 21.7mn pesos, compared to 16.3mn pesos in 1Q01.
Gonzalez confirmed the company sold more Todito Cards in 1Q02 than in all of 2000 and that it has expanded coverage of its ISP service from 14 cities in 2001 to 200 cities today.
Todito is a joint venture between Mexico's Grupo Dataflux and local media group TV Azteca (NYSE: TZA).