Everything to serve ends, says the popular saying, and in the case of Axtel, the termination of contracts with the government affected its financial results for the third quarter.
From July to September, Axtel’s revenue fell 1% to 2,736 million pesos. Its operating flow (Ebitda) fell 13% to 790 million pesos and had a net loss of 115 million pesos compared to the loss of 302 million pesos recorded in the same period last year.
The drop in Axtel’s revenues is due to the performance of its Alestra unit, whose revenues also registered a 1% drop, mainly due to an 18% drop in revenues from the government segment “as a result of the termination of contracts with federal entities ”, indicated the firm in its report.
“We are expanding the customer base to states of the republic where we did not have a presence and that represent attractive opportunities, as well as strengthening relationships with new and existing federal entities,” reported Armando de la Peña, CEO of Axtel.
The business segment had a 1% increase in revenues due to a 12% increase in digital transformation services.
Revenues from Axtel’s other business unit, Axnet , “recorded a slight increase, mainly due to an increase in dark fiber contracts,” the company said, which offset the drop in connectivity revenues from wholesale clients.
“Among different initiatives and actions to boost revenue growth, we are reinforcing the attributes that the Alestra and Axnet brands represent beyond traditional connectivity, towards specialized services, such as cybersecurity , consulting and hybrid cloud solutions,” said De la Peña. .
In this quarter, the firm concluded its spin-off from Alfa and the process to list Holding Axtel on the Mexican Stock Exchange is expected to be completed in the coming months.