Axtel, S.A.B. de C.V. Reports Unaudited Third Quarter Results

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Axtel, S.A.B. de C.V. Reports Unaudited Third Quarter Results

SAN PEDRO GARZA GARCIA, Mexico--(BUSINESS WIRE)-- Axtel, S.A.B. de C.V. ("AXTEL" or "the Company"), a leading Mexican fixed-line integrated telecommunications company, announced today its unaudited third quarter results ended September 30, 2012(1).

For additional information, please contact Adrian de los Santos, Investor Relations Officer and Corporate Finance Director at IR@axtel.com.mx


Highlights:

  • During the quarter, AXTEL's core businesses continued to report revenue growth trends. Mass market grew 6% supported by the fiber-to-the-home initiative. Enterprise segment revenues increased 9% despite delays in certain contracts with federal government entities.

  • EBITDA margin in the third quarter reached 27.3%, a 115 bps increase compared to 2Q12, reflecting improved gross margins in core segments and productivity initiatives, which resulted in a reduction of operating expenses.

  • The International traffic segment continued to unfavorably impact third quarter results. However, the relevance of this business has significantly declined, and now represents only 1% of the Company's total gross margin, compared to 9% in third quarter 2011. Therefore, this business's decline, as well as the phase-out of one of AXTEL's major wholesale customer contract, should not be material going forward.

For a complete version of the 3Q12 Earnings Release, please visit:www.axtel.com.mx

About AXTEL

AXTEL is a Mexican telecommunications company that provides local and long distance telephony, broadband Internet, data and built-to-suit communications solutions in 39 cities and long distance connectivity to business and residential customers in over 200 cities. AXTEL provides telecommunications services using a suite of technologies including FWA, WiMAX, copper, fiber optic, point to multipoint radios and traditional point to point microwave access, among others.

AXTELCPO trades on the Mexican Stock Exchange and is part of the IPC Index. AXTEL's American Depositary Shares are eligible for trading in The PORTAL Market, a subsidiary of the NASDAQ Stock Market, Inc.

Visit AXTEL's Investor Relations Center on www.axtel.com.mx



AXTEL
Investor Relations
Adrian de los Santos, +52(81) 8114-1226
IR@axtel.com.mx

KEYWORDS: Mexico Central America

INDUSTRY KEYWORDS:

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