Q3 2025 Axtel SAB de CV Earnings Call Transcript
Key Points
- Axtel SAB de CV (FRA:4GK) reported a robust 7% year-over-year revenue growth, driven by strong performances in the Infrastructure and Enterprise segments.
- The Infrastructure segment achieved an outstanding performance with revenue growth exceeding 30%, highlighting the company's leadership in connectivity and fiber optic services.
- The company generated $40 million in cash flow year-to-date and increased quarterly EBITDA by 7%, reflecting disciplined management and efficient cash flow generation.
- Axtel SAB de CV (FRA:4GK) advanced in the expansion and modernization of its fiber optic infrastructure, including a new 1,100-kilometer corridor between Queretaro and Texas, enhancing its strategic position.
- The company signed an agreement with Trans-Americas Fiber to introduce TAM1, a next-generation submarine cable system, expected to be operational in the first quarter of next year, providing scalable infrastructure for cloud and AI-driven business models.
- The Government segment experienced a softer performance due to ongoing constraints in federal and local spending, impacting overall revenue growth.
- Market uncertainty has led to delays in decision-making for customers, affecting the timing and execution of projects, particularly in the enterprise segment.
- Voice revenues continued to decline, dropping 4% in the quarter and accumulating a 5% year-to-date decline, following a secular downward trend.
- Commercial and operational expenses increased by 10% during the quarter, mainly due to higher operational personnel expenses and an increase in the allowance for doubtful collections in the government sector.
- The company's net debt stood at $488 million, with a net debt to EBITDA ratio of 2.3 times, indicating a need for continued focus on debt reduction.
Good morning, and welcome to Axtel's third quarter 2025 earnings webcast. I am Nancy Llovera, Axtel's IR and Corporate Finance Manager, and today I am joined by Armando De La Pena, Axtel's CEO; and Adrian De Los Santos, CFO.
Financial information for both Axtel and Controladora Axtel, including the unaudited third-quarter report is available on our corporate websites. We will begin with an overview of our business performance, followed by a Q&A session.
For your convenience, this webcast is being recorded and will be available on our website. Please note that information discussed today may include forward-looking statements. These statements reflect management's current views and are subject to certain risks and uncertainties. Axtel is under no obligation to update or revise any forward-looking statements, whether due to new information, future events, or otherwise.
And now I will hand it over to Armando.
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