#Mexico #Mexico City #Total Play #EBITDA #Mexico Telecom

Total Play's Financial Highlights for 2025

Total Play Telecomunicaciones, S.A.P.I de C.V., a prominent telecommunications provider in Mexico, has made a noteworthy announcement regarding its financial performance for the year 2025. The company reported an impressive revenue of Ps.45,550 million, with EBITDA standing at Ps.20,608 million. This financial growth showcases Total Play's solid position in the competitive telecommunications market.

Gross Profit and Revenue Analysis

Total Play's gross profit saw a healthy uptick, increasing by 7% to reach Ps.38,940 million. This growth can be credited to a robust revenue generation coupled with effective cost management strategies. A remarkable gross margin improvement of three percentage points, leading to an 85% gross margin, further reflects the company's operational efficiency.

Revenue growth in 2025 was primarily driven by an increase in the residential service segment, where revenue surged 5%. However, the enterprise segment experienced an 11% decline, impacting overall results. Residential revenue increased from Ps.9,655 million in the previous year to Ps.9,967 million in 2025.

Additionally, Total Play's average revenue per user (ARPU) was Ps.595, slightly decreasing from Ps.607 the previous year, a change largely attributed to a growing customer base opting for double-play services instead of triple-play options.

Operational Efficiency and Cost Management

Despite facing rising costs, which increased by 6% to Ps.24,942 million, Total Play managed to maintain its strong financial performance. The increase in costs can be traced back to a 19% rise in expenses, reflecting a strategy to invest in organizational projects aimed at enhancing operational capabilities and customer service.

Total Play's strong focus on cost control has allowed it to allocate only 23% of revenues towards capital expenditures, which has enabled sustained investments in enhancing its extensive fiber optic network across the country. This strategic approach has considerably strengthened the company's cash flow.

CEO Eduardo Kuri remarked, "We further strengthened our robust cash flow generation, defined as EBITDA less Capex and interest paid, which reached a record high of Ps.2,955 million for the year." The effective management of costs, paired with revenue growth, solidifies Total Play's market position.

Fourth Quarter Results 2025

In the fourth quarter, Total Play reported revenues of Ps.11,856 million, marking a 6% increase compared to Ps.11,176 million from the same period in the previous year. However, the company experienced a decline in EBITDA, which totaled Ps.5,029 million down from Ps.5,478 million a year ago, reflecting a 42% EBITDA margin for the quarter.

Interestingly, Total Play's net loss reduced significantly to Ps.767 million, a vast improvement from a loss of Ps.1,516 million during the same quarter of the previous year. This demonstrates a positive trend in controlling losses and moving towards profitability.

Balance Sheet Strength

As of December 31, 2025, Total Play's debt with cost was Ps.55,319 million, a slight decrease from Ps.56,278 million in 2024. This positive shift was largely due to amortizations during the period, which included the full repayment of outstanding Senior Notes due in 2025 worth US$56 million. This proactive financial management has significantly contributed to enhancing Total Play's liquidity and capital structure.

Additionally, the company reported a 35% reduction in lease liabilities alongside a 20% decline in accounts payable. Cash and cash equivalents were up 6%, further emphasizing the overall financial health of Total Play.

In conclusion, Total Play's positive financial trajectory marks a significant milestone in its journey towards industry leadership in Mexico's telecommunications sector. The company's ability to navigate operational challenges while optimizing costs and expanding its service reach amidst a competitive landscape bodes well for its future performance and growth prospects.