MAXCOM TELECOMUNICACIONES S.A.B. DE C.V. MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V.
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MAXCOM REPORTS RESULTS FOR THE SECOND QUARTER OF 2017Mexico City, July 20, 2017. - Maxcom Telecomunicaciones, S.A.B. de C.V. (OTCQX: MXMTY, BMV: MAXCOM A) ("Maxcom" or "the Company"), an integrated telecommunications company in Mexico, announced today its unaudited financial and operating results for the second quarter ended on June 30, 2017.
NOTE: The monetary amounts in this report have been presented in accordance with International Financial Reporting Standards (IFRS). Unless otherwise specified, the amounts are expressed in millions of current Mexican Pesos.
MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES FINANCIAL AND OPERATING HIGHLIGHTSFigures in millions of pesos, except operating data
Item | 2Q17 | 1Q17 | % var |
Total Revenues | 638 | 731 | (13%) |
EBITDA | 72 | 83 | (13%) |
EBITDA margin (%) | 11% | 11% | |
Net income (loss) | 73 | 177 | (59%) |
Net margin (%) | 11% | 24% | |
Cash and financial instruments 1 | 563 | 675 | (17%) |
CAPEX | 66 | 58 | 14% |
Debt 2 | 2,133 | 2,514 | (15%) |
Net debt / LTM EBITDA (X) | 4.8 | 5.3 | (9%) |
Customers | 97,850 | 104,742 | (7%) |
RGUs 3 | 337,799 | 352,860 | (4%) |
1 Includes long- term restric ted cash.
2 Debt is considered at face value and includes interest payable as of the end of the period
3 Revenue generating units
Relevant Events
Pursuant to the "Partial Cash Tender Offer" launched on April 25, 2017, the Company purchased USD$13.1 million principal amount of its Step-Up Senior Notes 2020 at an average price of USD$60 for each USD$100. The outstanding balance of Step-Up Senior Notes 2020 as of June 30, 2017 amounts to USD$112.4 million.
In order to develop the Mobile Virtual Network Aggregator and Operator project or MVNA/MVNO through Celmax Móvil,
de C.V. ("Celmax"), subsidiary of Maxcom, on June 30, 2017 concluded the increase in the variable portion of the capital stock of Celmax, in accordance with the resolution approved by the General Ordinary Shareholders' Meeting of Celmax held on April 27, 2017. As a result of this transaction, Maxcom currently holds 51% of the capital stock of Celmax and the new investors who participated in the capital increase hold 49%.
Business Management: Operating HighlightsTotal Revenue Generating Units or RGUs, decreased 35% to reach 337,799 in 2Q17 compared to the same period of last year. The Company registered negative RGU net additions of 179,640 during the period. The total Company customer base decreased 49% to reach 97,850 customers.
The main factors that explain these movements are:
The sale of customers to Megacable
The cancelation of low-margin accounts from the residential segment
The Company's decision not to sell more products in the residential segment, in line with the "wind down" process
When compared to the same period of last year, voice RGUs decreased 24% reaching 228,145. Voice RGUs include residential voice, commercial voice and wholesale lines.
Data residential RGUs decreased 48% to reach 79,739 compared to 152,551 in 2Q16, while data RGUs in the commercial segment decreased 4% to 3,320.
Total mobile RGUs reached 1,327 units which is 79% lower than the number registered in 2Q16.
Pay TV RGUs reached 24,988 units which represents a decrease of 53% with respect to the figure recorded in 2Q16.
The RGUs per residential customer rate remained flat at 2.0 year-over-year.
The RGUs per commercial customer rate went from 53.9 in 2Q16 to 69.1 at the end of 2Q17.
2Q17 | Item | 2Q16 | 2Q17 | Item | 2Q16 |
95,949 | Residential Customers | 189,486 | 131,359 | Commercial RGUs | 125,085 |
79,180 | Voice | 157,277 | 127,737 | Voice | 121,326 |
79,001 | Data | 151,439 | 3,320 | Data | 3,467 |
1,120 | Mobile | 5,263 | 22 | Mobile | 28 |
23,664 | TV | 53,320 | 280 | Other | 264 |
69.1 | RGUs per Commercial Customer | 53.9 | |||
187,368 | Residential RGUs | 372,748 | |||
81,336 | Voice | 160,505 | - | Public Telephony RGUs | - |
79,739 | Data | 152,551 | |||
1,305 | Mobile | 6,321 | 19,072 | Wholesale RGUs | 19,606 |
24,988 | TV | 53,371 | |||
2.0 | RGUs per Residential Customer | 2.0 | 337,799 | Total RGUs | 517,439 |
1,901 | Commercial Customers | 2,320 | 228,145 | Voice RGUs (lines in service) | 301,437 |
1,237 | Voice | 1,971 | 97,850 | Total Number of Customers | 191,806 |
954 | Data | 1,181 | |||
6 | Mobile | 8 | |||
133 | Other | 163 |
Revenues
Revenues reported in 2Q17 amounted to Ps.638 million, an increase of 9% compared to 2Q16. Total revenues for the six months ended on June 30, 2017 reached Ps.1,370 million, which represents an increase of 21% with respect to revenues of Ps.1,128 million recorded in the same period of 2016. This resulted mainly from higher revenues in the wholesale segment which more than offset the revenue decrease in the residential business unit. Sequentially, revenues registered a decrease of 13%, due to lower revenues in the residential and wholesale business units.
2Q17 | 1Q17 | QoQ % | 2Q16 | YoY % | ||
Residential | Ps. | 94 Ps. | 104 | (10%) Ps. | 182 | (48%) |
Commercial | 173 | 170 | 2% | 166 | 4% | |
Wholesale | 371 | 457 | (19%) | 236 | 57% | |
Total | Ps. | 638 Ps. | 731 | (13%) Ps. | 584 | 9% |
WEIGHT (%) 2Q17 Wholesale 58% Residential 15% Commercial 27% | WEIGHT (%) 2Q16 Wholesale 41% CommercialResidential 28% 31% |
6M17 % 6M16 % Residential Ps. 199 15% Ps. 369 33% Commercial 343 25% 328 29% Wholesale 828 60% 431 38% Total Ps. 1,370 100% Ps. 1,128 100% | |
Residential
This segment represents 15% of total revenues generated during 2Q17, a lower figure than the percentage reported in 2Q16 and slightly above 1Q17. When compared to 2Q16, revenues in this business unit had a decrease of 48% or Ps.88 million. For the six months ended June 30, 2017, revenues from the residential business totaled Ps.199 million, a decrease of 46% compared to Ps.369 million in 2016. This decrease in revenues is the result of the reduction in the customer base experienced during the year mainly explained by the sale of customers to Megacable at the end of 3Q16 and the strategically managed "wind-down" process of the residential business unit that started in late 2016. Sequentially, revenues from this business unit decreased Ps.10 million.
It is worth mentioning that both the migration of customers to the Megacable network and the process of disincorporation of the residential business go according to plan. Both initiatives will allow the Company to focus on the lines of business that generate greater value.
Maxcom Telecomunicaciones SAB de CV published this content on 20 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 July 2017 20:39:20 UTC.
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