Q2 2024 Axtel SAB de CV Earnings Call Transcript
Key Points
- Revenues and EBITDA increased year-over-year and sequentially, with a 4% revenue increase and an 8% EBITDA increase.
- Enterprise and government segments showed strong growth, with revenues increasing by 7% and 9% respectively.
- Cybersecurity, cloud, and Systems Integration Services EBITDA increased by 49% compared to the second quarter of last year.
- Axtel received recognition as the top growth partner in Latin America for sales of data protection and resiliency solutions.
- The company is on track to meet its net leverage ratio target of 2.5 times by year-end, with a current ratio of 2.6 times.
- Termination of services related to the 2019 mass-market divestment impacted second quarter results, contributing to a decline in wholesale revenues.
- Revenues from the wholesale infrastructure segment decreased by 8% year-over-year, affected by a 65% decline in continuity services.
- Legacy voice revenues declined by 4% in the enterprise segment, representing 8% of enterprise segment revenues.
- The company is not yet seeing an active pipeline of fiber to the tower projects from 5G deployments.
- Contribution margin declined by 200 basis points sequentially due to contraction in nonrecurring revenues.
Good morning. Welcome to Axte second quarter 2024 earnings webcast. I am Nancy LIovera, Axtel's Investor Relations and Corporate Finance Manager. And today I am joined by Armando La Pena, our CEO, and Adrian de los Santos, our CFO.
Financial information for both at Axtel and Controladora Axtel including the unaudited second quarter report is available on each corporate website. We will spend a few minutes reviewing the business, and then we will be happy to take your questions.
For your convenience, this webcast is being recorded and will be available on our website. The information discussed today may include forward-looking statements. These statements reflect management's current views, which are subject to certain risks and uncertainties. Axtel 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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