Axtel expects revenue boost from Red Compartida
Mexican operator Axtel expects its investments in the deployment of Mexico's wholesale network Red Compartida to lead to additional revenues of over 250mn pesos (US$13mn) in 2018.
In its Q3 results, the company said it has made significant progress as a vendor of the Red Compartida by providing metropolitan links, fiber capacity and datacenter services to support the network's goal of covering 30% of the country's population by March 2018, as part of the project's first stage and the start of commercial operations.
Of the aforementioned 30% coverage, 15% should comprise town with populations under 10,000 residents and 28 towns belonging to the Pueblos Mágicos tourism promotion program.
Axtel is a minority shareholder in Altán Redes, the consortium that is carrying out the project, with non-voting shares of 4%.
FINANCIAL RESULTS
The operator obtained revenues of 3.76bn pesos in the period, down 2% from a year earlier, driven by lower wireless services income.
However, Axtel underscored that recurring business and government clients caused its revenues for these segments to increase 5%. Axtel reported revenues of 2.48bn pesos from the business segment and 540mn from the government segment. The consumer market resulted in revenues of 742mn.
Additionally, Axtel informed that it completed the second tranche of a tower sale to American Tower Corporation (ATC). The transaction resulted in a net benefit of 162mn pesos in the period.
The company expects to obtain the regulatory approvals to complete the transaction in the fourth quarter of this year.
Ebitda reached 1.31bn pesos, up 4% from a year earlier. When excluding the ATC transaction and expenses related to the merger of Axtel and Alestra, Ebitda totaled 1.26bn or 5% lower than in 3Q16.
SETTING THE RECORD STRAIGHT
Amidst rumors of Axtel looking to sell the company, the operator said it has indeed hired financial consultants but with the goal of seeking counsel to divest assets such as the towers sold to ATC.
Axtel underscored in a statement sent to the Mexican Stock Exchange (BMV) that neither the telco nor its parent company Alfa is assessing a potential sale, nor have they received any offers.
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