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 FOURTH QUARTER OF 2016Mexico City, February 1st, 2017. - Maxcom Telecomunicaciones, S.A.B. de C.V. (OTCQX: MXMTY, BMV: MAXCOM CPO) ("Maxcom" or "the Company"), an integrated telecommunications company in Mexico, announced today its unaudited financial and operating results for the fourth quarter ended on December 31, 2016.
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 TELECOMUNICA CIONES, S.A.B. DE C.V. A ND SUBSIDIA RIES FINA NCIA L A ND OPERATING HIGHLIGHTS
Figures in millions of pesos, except operating data
Item | 4Q16 | 3Q16 | % var |
Total Revenues | 712 | 712 | - |
EBITDA | 72 | 97 | (26%) |
EBITDA margin (%) | 10% | 14% | |
Net income (loss) | (1,358) | (461) | (195%) |
Net margin (%) | (191%) | (65%) | |
Cash and financial instruments 1 | 862 | 686 | 26% |
CAPEX | 107 | (245) | (144%) |
Debt 2 | 2,708 | 2,609 | 4% |
Net debt / LTM EBITDA (X) | 5.3 | 5.1 | 4% |
Customers | 112,406 | 118,798 | (5%) |
RGUs 3 | 367,288 | 380,832 | (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
Maxcom continues the migration of customers to Megacable´s network, according with the transition plan in the cities of Puebla, Queretaro and Tehuacan, to ensure the continuity of telecommunications services to the customers. At the end of the quarter, Maxcom continues to serve its residential customers in San Luis Potosi, Mexico Metropolitan Area, while implementing cost efficiencies thus improving margins (in the remaining clusters).
Maxcom has started to execute a "wind-down" process with the residential business unit, in order to be more efficient and cash flow positive. Nevertheless, we continue open to analyze any potential offers for strategic transactions.
Business Management: Operating HighlightsTotal Revenue Generating Units or RGUs, decreased 33% to reach 367,288 in 4Q16 compared to the same period of last year. The Company registered negative RGU net additions of 178,584 during the period. The total Company customer base decreased by 47% to reach 112,406 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 significant decrease in gross additions in the residential segment
When compared to the same period of last year, voice RGUs decreased 23% reaching 238,363. Voice RGUs include residential voice, commercial voice and wholesale lines.
Data residential RGUs decreased 43% to reach 92,607 compared to 162,457 in 4Q15, while data RGUs in the commercial segment increased 14% to 3,361.
Total mobile RGUs reached 2,494 units which is 76% lower than the number registered in 4Q15.
Pay TV RGUs reached 30,195 units which represents a decrease of 48% with respect to the figure recorded in 4Q15.
The RGUs per residential customer rate increased to 2.0, slightly above at the reported in 4Q15.
The RGUs per commercial customer rate went from 47.7 in 4Q15 to 59.9 at the end of 4Q16.
4Q16 | Item | 4Q15 |
110,275 | Residential Customers | 211,343 |
93,304 | Voice | 173,789 |
92,435 | Data | 161,192 |
2,087 | Mobile | 10,357 |
30,325 | TV | 58,194 |
220,568 | Residential RGUs | 408,884 |
95,296 | Voice | 177,601 |
92,607 | Data | 162,457 |
2,470 | Mobile | 10,559 |
30,195 | TV | 58,267 |
2.0 | RGUs per Residential Customer | 1.9 |
2,131 | Commercial Customers | 2,462 |
1,826 | Voice | 2,152 |
1,093 | Data | 1,223 |
7 | Mobile | 8 |
160 | Other | 164 |
127,648 | Commercial RGUs | 117,382 |
123,995 | Voice | 114,153 |
3,361 | Data | 2,938 |
24 | Mobile | 30 |
268 | Other | 261 |
59.9 | RGUs per Commercial Customer | 47.7 |
- Public Telephony RGUs -
19,072 Wholesale RGUs 19,606
367,288 Total RGUs 545,872
238,363 | Voice RGUs (lines in service) | 311,360 |
112,406 | Total Number of Customers | 213,805 |
Revenues
Revenues reported in 4Q16 amounted to Ps.712 million, it presents an increase of 26% against 4Q15. Total revenues for the twelve months ended on December 31, 2016 reached Ps.2,552 million, which represents an increase of 8% with respect to revenues of Ps.2,369 million recorded in the same period of 2015. Higher revenues in wholesale segment during the quarter explains this increase.
4Q16 | 3Q16 | QoQ % | 4Q15 | YoY % | ||
Residential | Ps. | 110 Ps. | 171 | (36%) Ps. | 188 | (42%) |
Commercial | 170 | 173 | (2%) | 156 | 8% | |
Public Telephony | - | - | (100%) | 6 | (100%) | |
Wholesale | 432 | 368 | 17% | 217 | 99% | |
Total | Ps. | 712 Ps. | 712 | - Ps. | 567 | 26% |
Wholesale 61%
Residential 15%
Commercia l 24%
12M16 | % | 12M15 | % | |||
Residential | Ps. | 650 | 25% | Ps. | 773 | 33% |
Commercial | 671 | 26% | 592 | 25% | ||
Public Telephony | - | - | 61 | 3% | ||
Wholesale | 1,231 | 48% | 943 | 40% | ||
Total | Ps. | 2,552 | 100% | Ps. | 2,369 | 100% |
Residential
This segment represents 15% of total revenues generated during the 4Q16, a lower figure than the percentage reported in the 4Q15 and below the 3Q16. When compared to 4Q15, revenues in this business unit had a decrease of 42% or Ps.78 million. For the twelve months ended December 31, 2016, revenues from the residential business totaled Ps.650 million, a decrease of 16% compared to Ps.773 million in 2015. 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. Sequentially, revenues for this business unit decreased Ps.61 million.
Maxcom Telecomunicaciones SAB de CV published this content on 01 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 02 February 2017 01:32:01 UTC.
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