Axtel, S.A.B. de C.V. Reports Fourth Quarter 2012 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 fourth quarter results ended December 31, 2012(1).
For additional information, please contact Adrian de los Santos, Investor Relations Officer and Corporate Finance Director at IR@axtel.com.mx
On January 31, 2013, AXTEL successfully completed the execution of its recapitalization plan, divesting 883 tower sites for $249 million, and exchanging existing debt for new secured and convertible debt and a cash payment. On a pro forma basis, as of December 31, 2012, AXTEL reduced its net debt leverage ratio from 4.0x to 2.4x.
During the fourth quarter, AXTEL reinforced its productivity initiatives by downsizing its organization in approximately 1,350 collaborators, which will be reflected in savings of approximately 15% on its personnel expenses. AXTEL will now have a leaner and more focused organization concentrated in the implementation of its key strategic initiatives.
On January 30, 2013, the Company launched its "AXTEL TV" pay television service in Mexico City, Guadalajara and Monterrey. This represents a key step in AXTEL´s competitive position in the mass market segment. AXTEL TV's image quality and innovative features are the result of the capacity and reliability of the Company's end-to-end fiber network.
AXTEL's operating performance in the fourth quarter was negatively impacted by certain extraordinary expenses, as well as lost revenues due to the uncertainty surrounding the successful execution of its recapitalization plan. This revenue loss is expected to be gradually recovered as the recapitalization plan was successfully completed.
For a complete version of the 4Q12 Earnings Release, please visit:www.axtel.com.mx
1) We are presenting financial information based on International Financial Reporting Standards (IFRS) in nominal pesos for the following periods:
Consolidated income statement information for the three-month periods ending on December 31 and September 30, 2012, and December 31, 2011; and twelve-month period ending on December 31, 2012 and December 31, 2011, and
Balance sheet information as of December 31, 2012 and 2011; and September 30, 2012.
Axtel is a Mexican telecommunications company with a significant growth in the broadband segment, and one of the leading companies in information and communication technologies solutions in the corporate, financial and government sectors. The Company serves all market segments -corporate, financial, government, wholesale and residential with the most robust offering of integrated communications services in Mexico. Its world-class network consists of different access technologies like fiber optic, fixed wireless access, point to point and point to multipoint links, in order to offer solutions tailored to the needs of its customers.
AXTELCPO trades on the Mexican Stock Exchange since 2005. 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, S.A.B. de C.V.
Adrian de los Santos
KEYWORDS: Mexico Central America
The article Axtel, S.A.B. de C.V. Reports Fourth Quarter 2012 Results originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.