MEXICO CITY, May 2, 2022 /PRNewswire/ — Total Play Telecomunicaciones, SAPI de CV (“Total Play”), a leading telecommunications company in Mexicowhich offers Internet access, pay TV and telephony services, via one of the largest 100% fiber optic networks in the country, today announced its financial results for the first quarter of 2022.
First quarter results
Revenue for the quarter totaled Ps8,416 million, compared to Ps6,356 million a year earlier. Total costs and expenses amounted to 4,688 million pesos, compared to 3,679 million pesos a year ago.
As a result, Total Play’s EBITDA amounted to Ps3,728 million, compared to Ps2,677 million the previous year. The company recorded an operating profit of 976 million pesos, compared to 658 million pesos a year ago. Total Play reported a net profit of 477 million pesos, compared to a loss of 216 million pesos in the same period of 2021.
Service revenue
The company’s revenue growth during the period was primarily the result of increased sales in the residential segment, driven by increased household demand for Total Play’s telecommunications services.
Costs and expenses
Total costs and expenses increased by 27%, due to a 15% increase in service costs and a 37% increase in overhead. The increase in costs, to 1,870 million pesetas, compared to 1,627 million pesetas the previous year, results mainly from the purchase of content, rental of feeder links and network operating licenses.
The increase in spending, to 2,818 million pesos from 2,052 million pesos, reflects higher spending on services, advertising and promotion, and maintenance, amid growing coverage.
EBITDA and net income
Total Play’s EBITDA was Ps3,728 million, compared to Ps2,677 million the previous year.
The main variations under EBITDA are as follows:
Growth of 733 million pesos in depreciation and amortization, due to user acquisition costs – telecommunications equipment, labor and installation expenses – as well as investments in fiber optic network coverage.
Increase of 352 million pesos in interest charges, mainly due to the growth of long-term financial debt.
Foreign exchange gain of 742 million pesos this quarter, compared to a loss of 274 million pesos a year ago, due to the net monetary position of the dollar liabilities, as well as the appreciation of the peso exchange rate by compared to the dollar this period, of the amortization of the previous year.
Total Play reported net income of 477 million pesos, compared to a net loss of 216 million pesos in the same period of 2021.
Balance sheet
From March 31, 2022the company’s debt with costs was 41,275 million pesos, compared to 27,503 million pesos the previous year.
The growth in the debt balance is mainly linked to the placement of Senior Notes on the international markets for $600 millionin September 2021.
The lease liability amounted to 5,804 million pesos, compared to 4,209 million pesos the previous year.
About Total Game
Total Play is one of the leading providers of Triple Play in Mexico which, thanks to the largest direct-to-home fiber optic network in the country, offers entertainment and technologically advanced services with the best quality and speed on the market. For the latest news and updates on Total Play, visit: www.totalplay.com.mx
Total Play is a company of Grupo Salinas (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 standard of living ; social value to improve community well-being; and environmental value by reducing the negative impact of its business activities. Created by a Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision-making forum for key executives of member companies. Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas does not hold any participation. The group of companies shares a common vision, values and strategies to achieve 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 uncertainties that could cause actual results to differ materially from those projected. The other risks that could affect Total Play and its subsidiaries are presented in documents addressed to the securities authorities.
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TOTAL PLAY TELECOMUNICACIONES, SAPI DE CV AND SUBSIDIARIES |
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CONSOLIDATED QUARTERLY INCOME STATEMENTS |
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(Millions of Mexican pesos) |
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|
1T21 |
1Q22 |
Switch |
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|
$ |
% |
$ |
% |
$ |
% |
|||
|
Service revenue |
6,356 |
100% |
8,416 |
100% |
2,060 |
32% |
||
|
Cost of benefits |
(1,627) |
(26%) |
(1,870) |
(22%) |
(243) |
(15%) |
||
|
Gross profit |
4,729 |
74% |
6,546 |
78% |
1,817 |
38% |
||
|
Overheads |
(2,052) |
(32%) |
(2,818) |
(33%) |
(766) |
(37%) |
||
|
EBITDA |
2,677 |
42% |
3,728 |
44% |
1,051 |
39% |
||
|
Depreciation and amortization |
(2,019) |
(32%) |
(2,752) |
(33%) |
(733) |
(36%) |
||
|
Other income (expenses) – Net |
– |
0% |
– |
0% |
– |
0% |
||
|
Operating profit (loss) |
658 |
ten% |
976 |
12% |
318 |
48% |
||
|
Financial cost: |
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|
Interest income |
14 |
0% |
14 |
0% |
– |
0% |
||
|
Accrued interest |
(562) |
(9%) |
(914) |
(11%) |
(352) |
(63%) |
||
|
Other financial income (expenses) – Net |
(43) |
(1%) |
(138) |
(2%) |
(95) |
(221%) |
||
|
Foreign exchange gain (loss) – Net |
(274) |
(4%) |
742 |
9% |
1,016 |
371% |
||
|
Profit (loss) before provision for income tax |
(207) |
(3%) |
680 |
8% |
887 |
429% |
||
|
Provision for income tax |
(9) |
(0%) |
(203) |
(2%) |
(194) |
(2156%) |
||
|
Net profit (loss) for the period |
(216) |
(3%) |
477 |
6% |
693 |
321% |
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TOTAL PLAY TELECOMUNICACIONES, SAPI DE CV AND SUBSIDIARIES |
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CONSOLIDATED RESULTS |
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(Millions of Mexican pesos) |
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|
As of March 31, |
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|
2021 |
2022 |
Switch |
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|
$ |
% |
$ |
% |
$ |
% |
||||
|
Assets |
|||||||||
|
CURRENT ASSETS |
|||||||||
|
Cash and cash |
46 |
0% |
1,774 |
3% |
1,728 |
3749% |
|||
|
Restricted cash in trust |
1,097 |
2% |
1,463 |
2% |
366 |
33% |
|||
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Customers-net |
2,348 |
5% |
4,461 |
6% |
2,113 |
90% |
|||
|
Other receivables and recoverable taxes |
3,667 |
7% |
3,904 |
6% |
237 |
6% |
|||
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Inventories |
1,601 |
3% |
1,987 |
3% |
386 |
24% |
|||
|
Prepaid expenses |
410 |
1% |
433 |
1% |
23 |
6% |
|||
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Total current assets |
9,169 |
18% |
14,022 |
20% |
4,852 |
53% |
|||
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NON-CURRENT ASSETS |
|||||||||
|
Property, plant and equipment – Net |
35 141 |
71% |
48,816 |
70% |
13,675 |
39% |
|||
|
-Net Asset Use Rights |
3,896 |
8% |
5,366 |
8% |
1,470 |
38% |
|||
|
Other non-current assets |
1,481 |
3% |
1,632 |
2% |
151 |
ten% |
|||
|
Total non-current assets |
40,517 |
82% |
55,814 |
80% |
15,297 |
38% |
|||
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Total assets |
49,686 |
100% |
69,836 |
100% |
20,149 |
41% |
|||
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Liabilities and equity |
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CURRENT LIABILITIES |
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|
Short-term financial debts |
646 |
1% |
2,901 |
4% |
2,255 |
349% |
|||
|
Payables |
7,635 |
15% |
9,085 |
13% |
1,450 |
19% |
|||
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Other debts and taxes |
2,319 |
5% |
3,642 |
5% |
1,323 |
57% |
|||
|
Derivative financial instruments |
75 |
0% |
573 |
1% |
498 |
nm |
|||
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Rental debts |
1,466 |
3% |
1,735 |
2% |
269 |
18% |
|||
|
Total current liabilities |
12,140 |
24% |
17,936 |
26% |
5,796 |
48% |
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LONG-TERM LIABILITIES |
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|
Long-term financial debts |
26,857 |
54% |
38,374 |
55% |
11,517 |
43% |
|||
|
Payables |
16 |
0% |
4 |
0% |
(12) |
(75%) |
|||
|
Other long-term debts |
108 |
0% |
642 |
1% |
534 |
493% |
|||
|
Rental debts |
2,743 |
6% |
4,069 |
6% |
1,326 |
48% |
|||
|
Total long-term liabilities |
29,725 |
60% |
43,090 |
62% |
13,365 |
45% |
|||
|
Total responsibilities |
41,865 |
84% |
61,026 |
87% |
19,161 |
46% |
|||
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EQUITY |
7,822 |
16% |
8,810 |
13% |
988 |
13% |
|||
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Total equity and liabilities |
49,686 |
100% |
69,836 |
100% |
20,149 |
41% |
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TOTAL PLAY TELECOMUNICACIONES, SAPI DE CV AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(Millions of Mexican pesos) |
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|
Years completed |
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|
March, 31st, |
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|
2021 |
2022 |
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Operating activities: |
|||||
|
(Loss) profit before provision for income tax |
(207) |
680 |
|||
|
Items that do not require the use of resources: |
|||||
|
Depreciation and amortization |
2019 |
2,752 |
|||
|
Social advantages |
5 |
9 |
|||
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Items related to investing or financing activities: |
|||||
|
Accrued interest |
(14) |
(14) |
|||
|
Accrued interest and other financial transactions |
562 |
914 |
|||
|
Valuation of derivative financial instruments |
(139) |
795 |
|||
|
2,226 |
5,135 |
||||
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Resources (used in) generated by operations: |
|||||
|
Unearned Customers and Revenue |
29 |
(711) |
|||
|
Other receivables |
(18) |
18 |
|||
|
Related parties, net |
(46) |
8 |
|||
|
Taxes to be recovered |
(211) |
399 |
|||
|
Inventories |
20 |
(107) |
|||
|
Advanced payments |
(3) |
34 |
|||
|
Payables |
(375) |
(227) |
|||
|
Other debts |
164 |
(118) |
|||
|
Cash flow generated by operating activities |
1,785 |
4,430 |
|||
|
Investing activities: |
|||||
|
Acquisition of property, plant and equipment |
(3,838) |
(5,138) |
|||
|
other assets |
15 |
8 |
|||
|
Interest received |
14 |
14 |
|||
|
Cash flows (used in) investing activities |
(3,808) |
(5,115) |
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|
Fundraising activities: |
|||||
|
Loans received |
1,310 |
(220) |
|||
|
Rental cash flow |
(395) |
(487) |
|||
|
Interest payment |
(483) |
(969) |
|||
|
Cash restricted in trust |
174 |
(577) |
|||
|
Reverse factoring |
(324) |
545 |
|||
|
Net cash flow 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 |
46 |
1,774 |
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SOURCE Total Play Telecomunicaciones, SAPI de CV