Total Play Reports Strong Q1 2025 Performance with Increased EBITDA and Cost Reductions

Total Play Reports Impressive Q1 2025 Financial Results



In its first quarter report for 2025, Total Play Telecomunicaciones, S.A.P.I. de C.V., a key player in Mexico's telecommunications sector, announced a revenue of Ps.10,843 million and an EBITDA of Ps.5,083 million. This demonstrates a resilient operational performance despite a slight decline in total revenue compared to the same period last year, which was Ps.11,087 million. The overall EBITDA margin also saw a positive shift, increasing by two percentage points to 47%.

Operational and Financial Highlights



The CEO of Total Play, Eduardo Kuri, shared insights into the company's robust cash flow outcomes, citing a record-high cash generation (EBITDA less Capex less interest) of Ps.587 million for the quarter, which more than doubled from Ps.237 million in 2024. This marked the fifth consecutive quarter with substantial cash generation, underscoring Total Play’s firm commitment to growth and financial health.

Interestingly, capital expenditure (Capex) for the quarter represented 24% of total revenues, a reduction from 30% a year earlier. This focus on effective cost management has bolstered profitability, leading to an improved gross margin of 85% from 79% in the previous year. Total costs and expenses also decreased by 6%, indicating the company's successful efforts to cut down service costs.

Subscriber Growth and Revenue Streams



Within its residential services, Total Play recorded an increase in revenue, reaching Ps.9,570 million, up from Ps.9,078 million dismissed a year earlier. Notably, the subscriber base grew by 9%, resulting in a total of 5,328,703 residential users, which includes a notable number of 68,036 small and medium-sized enterprises. The quarterly revenue per subscriber (ARPU) saw a slight decline to Ps.597 from Ps.617, mainly due to an increased number of users opting for double-play over triple-play packages.

In contrast, revenue from the enterprise segment suffered a setback of 37% due to the conclusion of several time-bound projects, landing at Ps.1,273 million, compared to Ps.2,009 million from the previous year. This indicates the need for continuous innovation and adaptability within this segment to meet demands.

Challenges and Future Outlook



Despite these commendable financial outcomes, Total Play faced a net loss of Ps.1,961 million, which was greater than the loss of Ps.1,164 million recorded in the previous year. The losses can be attributed to several factors, including rising financial costs and exchange losses. The company’s total debt stood at Ps.60,806 million, reflecting an increase due to new financial instruments and foreign exchange fluctuations.

Looking forward, Total Play aims to utilize the capital raised through the successful placement of additional notes worth US$200 million to improve its liquidity and pay off short-term debts. This strategic maneuver is expected to stabilize the company’s financial structure and extend its debt maturity profile.

In summary, Total Play continues to exhibit strong operational management and adaptability to market fluctuations, reinforcing its position as a leader in the Mexican telecommunications landscape. For more details on their latest offerings and updates, visit Total Play.

Topics Telecommunications)

【About Using Articles】

You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.

【About Links】

Links are free to use.