Q3 2024 Axtel SAB de CV Earnings Call Transcript

Oct 18, 2024 / 01:30PM GMT

Release Date Price: $0.1

Transcript

Key Points

Positve

Axtel SAB de CV (STU:4GK) reported a 5% year-over-year increase in enterprise segment revenues and a strong 15% growth in government segment revenues.
The company generated $7 million in cash flow during the quarter, reflecting the benefits of a new commercial model and more agile operations.
Cybersecurity and cloud services recorded solid results, with a 70% increase in revenue in September.
Axtel's fiber network of over 50,000 kilometers nationwide presents a unique opportunity to contribute to the evolution of AI in Mexico.
The company has a share buyback program with $60 million remaining, indicating confidence in its undervalued stock.

Negative

The infrastructure segment experienced a soft performance, with a 12% year-over-year decrease in revenues from wholesale infrastructure segment customers.
Contribution margin declined by 1.6 percentage points year over year, impacted by increased costs in the government segment.
Legacy voice revenues declined 12% in the quarter, now representing only 7% of total enterprise segment revenues.
The company faces challenges in meeting its yearly revenue guidance, with the topline performance potentially 10% below expectations.
There is uncertainty regarding the potential merger of Controladora and Axtel, with no updates or active processes reported.

Nancy Llovera Tamez;Armando de la Peha GonzÃ;lez

Axtel SAB de CV - Investor Relations Contact;Axtel SAB de CV - Chief Executive

Good morning. Welcome to Axtel's third quarter, 2024 earnings webcast. I am Nancy Yerra Axtel's Investor relations and corporate finance manager. And today I am joined by Armando de La Pena CEO and Adrian de Los Santos CFO Financial Information for both Axtel and Gondola Axtel including the unaudited third quarter report is available on each corporate website.

We will spend a few minutes reviewing the business and then we'll be happy to take your questions for your convenience. This webcast is being recorded and will be available on our website.

Information discussed today may include forward-looking statements. These statements reflect management's current views which are subject to certain risks and uncertainties as state is under no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

And now I will hand it over to Armando.

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