Q2 2025 Axtel SAB de CV Earnings Call Transcript
Key Points
- Axtel SAB de CV (MEX:AXTELCPO) achieved revenue and EBITDA growth of 11% and 17%, respectively, in the second quarter.
- The company prepaid $54 million in debt during the first half of the year, contributing to a total of $90 million over the past nine months.
- Revenue growth was driven by a 44% increase in the Government segment and a 21% increase in the Axnet segment.
- Axtel SAB de CV secured a major contract with a Wholesale customer, boosting Axnet's performance.
- The company expanded its fiber optic network significantly, adding over 1,000 kilometers to connect Mexico and Texas, enhancing capacity for global carriers and hyperscalers.
- New acquisitions were impacted by global uncertainty, leading to delays in customer decision-making.
- Voice service revenues declined by 4% in the Enterprise segment, representing a smaller portion of total revenue.
- The cost of revenues increased by 12% year-on-year, primarily due to higher costs in the Government segment.
- General corporate expenses rose by 8% compared to the previous year, driven by higher personnel and maintenance costs.
- The share buyback program has been inactive since December, with no immediate plans for reactivation.
Good morning, and welcome to Axtel's second quarter 2025 earnings webcast. I am Nancy Llovera, Axtel's Investor Relations 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 second quarter report, is available on our corporate website. 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 the 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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