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Mexican telco Axtel experienced notable income growth in the third quarter as a result of its strong focus on ICT business solutions.
Axtel reported revenues of 3.83bn pesos (US$206mn), up 63% from 3Q15.
The company's activities in the business and government segments was a catalyst for growth, as telecom solutions for these markets accounted for earnings of 2.49bn pesos, 86% more than the same period a year earlier, according to a press release from Axtel.
Revenues from data and internet solutions jumped 270%, while revenues from network administration increased 56% compared to last year's third quarter.
The IT solutions business line totaled 568mn pesos during the third quarter, up 182% from the previous year. Cloud and hosting solutions for clients in the aforementioned segments were the drivers that fueled growth.
In the mass market, the company reported revenues of 778mn pesos, which were driven by a 17% increase in the sale of solutions provided through Axtel's direct fiber optic (FFTx).
Axtel posted net income of 2.98bn pesos in 3Q16, up 55% from the same period of last year. Ebitda totaled 1.265bn pesos, a 32.3% increase year-on-year.
The number of broadband clients reached 258,000 subscribers in the third quarter, considerably higher than the 186,000 in the same quarter of 2015. The telco's pay TV service totaled 123,000 subscriptions, expanding from 103,000 subscriptions a year ago.