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.