MEXICO CITY, May 2, 2022 /PRNewswire/ — Total Play Telecomunicaciones, S.A.P.I. de C.V. (“Total Play”), a leading telecommunications company in Mexico, which offers internet access, pay television and telephone services, through one of the largest 100% fiber optic networks in the country, today announced financial results for the first quarter of 2022.
First quarter results
Revenue for the quarter totaled Ps.8,416 million, compared to Ps.6,356 million from the previous year. Total costs and expenses were Ps.4,688 million, from Ps.3,679 million a year ago.
As a result, Total Play’s EBITDA was Ps.3,728 million, from Ps.2,677 million the previous year. The company posted an operating profit of Ps.976 million, compared to Ps.658 million a year ago. Total Play reported net income of Ps.477 million, from a loss of Ps.216 million in the same period of 2021.
Revenue from services
The growth in the company’s revenue in the period is mainly the result of an increase in sales in the residential segment, due to greater demand from households for Total Play’s telecommunications services.
Costs and expenses
Total costs and expenses grew 27%, as a result of a 15% increase in service costs and a 37% increase in general expenses. The growth in costs, to Ps.1,870 million, from Ps.1,627 million in the previous year, results mainly from the purchase of content, leasing of connection links and licenses for the operation of the network.
The increase in expenses, to Ps.2,818 million, from Ps.2,052 million, reflects higher expenses for services, advertising and promotion, as well as maintenance, in the context of increasing coverage.
EBITDA and net result
Total Play’s EBITDA was Ps.3,728 million compared to Ps.2,677 million in the previous year.
The main variations below EBITDA were as follows:
Growth of Ps.733 million in depreciation and amortization, as a result of user acquisition costs — telecommunications equipment, labor and installation expenses — as well as investments in fiber optic network coverage.
Increase of Ps.352 million in interest expense, derived mainly from growth in long-term financial debt.
Foreign exchange gain of Ps.742 million this quarter, compared to a loss of Ps.274 million a year ago, as a result of the net liability monetary position in dollars, together with the appreciation of the exchange rate of the peso against the dollar this period, from depreciation the previous year.
Total Play reported a net income of Ps.477 million, from a net loss of Ps.216 million in the same period of 2021.
Balance Sheet
As of March 31, 2022, the company’s debt with costs was Ps.41,275 million, compared to Ps.27,503 million in the previous year.
The growth of the debt balance is mainly related to the placement of Senior Notes in international markets for US$600 million, in September 2021.
The lease liability was Ps.5,804 million, compared to Ps.4,209 million in the previous year.
About Total Play
Total Play is a leading Triple Play provider in Mexico that, thanks to the widest direct-to-home fiber optic network in the country, offers entertainment and technologically advanced services with the highest quality and speed in the market. For the latest news and updates about Total Play, visit: www.totalplay.com.mx
Total Play is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic, fast growing, and technologically advanced companies focused on creating economic value through market innovation and goods and services that improve standards of living; social value to improve community wellbeing; and environmental value by reducing the negative impact of its business activities. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. The group of companies shares a common vision, values and strategies for achieving rapid growth, superior results and world-class performance.
Except for historical information, the matters discussed in this press release are concepts about the future that involve risks and uncertainty that may cause actual results to differ materially from those projected. Other risks that may affect Total Play and its subsidiaries are presented in documents sent to the securities authorities.
Investor Relations:
Bruno Rangel
Rolando Villarreal
Samantha Pescador
- 52 (55) 1720 9167
+52 (55) 3032 3639
[email protected]
Press Relations:
Luciano Pascoe
Tel. +52 (55) 1720 1313 ext. 36553
TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V. AND SUBSIDIARIES
CONSOLIDATED QUARTERLY INCOME STATEMENTS
(Millions of Mexican pesos)
1Q21
1Q22
Change
$
%
6,356
100%
8,416
2,060
32%
Cost of services
(1,627)
(26%)
(1,870)
(22%)
(243)
(15%)
Gross profit
4,729
74%
6,546
78%
1,817
38%
General expenses
(2,052)
(32%)
(2,818)
(33%)
(766)
(37%)
EBITDA
2,677
42%
3,728
44%
1,051
39%
Depreciation and amortization
(2,019)
(2,752)
(733)
(36%)
Other income (expenses) – Net
–
0%
Operating profit (loss)
658
10%
976
12%
318
48%
Financial cost:
Interest revenue
14
Accrued interest expense
(562)
(9%)
(914)
(11%)
(352)
(63%)
Other financial (expenses) income – Net
(43)
(1%)
(138)
(2%)
(95)
(221%)
Foreign exchange (loss) gain – Net
(274)
(4%)
742
9%
1,016
371%
Profit (loss) before income tax provision
(207)
(3%)
680
8%
887
429%
Income tax provision
(9)
(0%)
(203)
(194)
(2156%)
Net income (loss) for the period
(216)
477
6%
693
321%
TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of March 31,
2021
2022
Assets
CURRENT ASSETS
Cash and cash
46
1,774
3%
1,728
3749%
Restricted cash in trusts
1,097
2%
1,463
366
33%
Customers – net
2,348
5%
4,461
2,113
90%
Other receivables and recoverable taxes
3,667
7%
3,904
237
Inventories
1,601
1,987
386
24%
Prepaid expenses
410
1%
433
23
Total current assets
9,169
18%
14,022
20%
4,852
53%
NON-CURRENT ASSETS
Property, plant and equipment – Net
35,141
71%
48,816
70%
13,675
Rights-of-use assets -Net
3,896
5,366
1,470
Other non-current assets
1,481
1,632
151
Total non-current assets
40,517
82%
55,814
80%
15,297
Total assets
49,686
69,836
20,149
41%
Liabilities and Stockholders’ Equity
SHORT-TERM LIABILITIES
Short-term financial debt
646
2,901
4%
2,255
349%
Trade payables
7,635
15%
9,085
13%
1,450
19%
Other payables and taxes
2,319
3,642
1,323
57%
Derivative financial instruments
75
573
498
n.m.
Lease liabilities
1,466
1,735
269
Total short-term liabilities
12,140
17,936
26%
5,796
LONG-TERM LIABILITIES
Long-term financial debt
26,857
54%
38,374
55%
11,517
43%
16
4
(12)
(75%)
Other long-term payables
108
642
534
493%
2,743
4,069
1,326
Total long-term liabilities
29,725
60%
43,090
62%
13,365
45%
Total liabilities
41,865
84%
61,026
87%
19,161
46%
STOCKHOLDERS’ EQUITY
7,822
16%
8,810
988
Total stockholders’ equity and liabilities
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended
March 31,
Operating activities:
(Loss) income before income tax provision
Items not requiring the use of resources:
Depreciation and amortization
2,019
2,752
Employee benefits
5
9
Items related to investing or financing activities:
Accrued interest income
(14)
Accrued interest expense and other financial transactions
562
914
Valuation of financial derivative instruments
(139)
795
2,226
5,135
Resources (used in) generated by operating activities:
Customers and unearned revenue
29
(711)
Other receivables
(18)
18
Related parties, net
(46)
8
Taxes to be recovered
(211)
399
Inventories
20
(107)
Advance payments
(3)
34
Trade payables
(375)
(227)
Other payables
164
(118)
Cash flows generated by operating activities
1,785
4,430
Investing activities:
Acquisition of property, plant and equipment
(3,838)
(5,138)
Other assets
15
Collected interest
Cash flows (used in) investing activities
(3,808)
(5,115)
Financing activities:
Loans received
1,310
(220)
Leasing cash flows
(395)
(487)
Interest payment
(483)
(969)
Restricted Cash in Trusts
174
(577)
Reverse factoring
(324)
545
Net cash flows generated by financing activities
282
(1,708)
Increase in cash and cash equivalents
(1,741)
(2,392)
Cash and cash equivalents at the beginning of the year
1,787
4,166
Cash and cash equivalents at the end of the year
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SOURCE Total Play Telecomunicaciones, S.A.P.I. de C.V.
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