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

Total Play Reports Impressive EBITDA Growth in Q4 2024

Total Play Telecomunicaciones, a prominent telecommunications provider in Mexico, has unveiled its financial performance for the fourth quarter of 2024, marking a significant achievement in their operational journey. The company reported an impressive 16% increase in EBITDA, reaching an outstanding Ps. 5,483 million, compared to Ps. 4,736 million in the same quarter last year. This remarkable growth reflects the company’s unwavering commitment to financial discipline and operational efficiency.

Financial Highlights

In addition to the remarkable EBITDA growth, Total Play recorded a radiant EBITDA margin of 49%, the highest level since the company commenced public debt issuance. This increase underscores Total Play's ability to optimize its profitability while navigating the challenging landscape of the telecommunications industry.

Eduardo Kuri, the company’s CEO, expressed pride in these results, emphasizing that Total Play's decision to moderate subscriber growth, while simultaneously enhancing operational efficiency and reducing costs, has fortified the company's profitability. He noted, "Our higher revenue streams, paired with effective cost management, contributed to this robust performance."

The company reported quarterly revenue of Ps. 11,176 million, reflecting a 5% increase from Ps. 10,674 million in the corresponding quarter of the previous year. In comparison, Total Play managed to lower its overall costs and expenses to Ps. 5,693 million, a reduction of 4%, from Ps. 5,938 million.

The net loss for the quarter stood at Ps. 1,519 million, albeit larger than the Ps. 1,024 million loss during the same period last year, primarily due to increases in depreciation, amortization, and interest expenses. However, the healthy cash flow generated— a result of EBITDA minus capital expenditures and interest payments—amounted to Ps. 816 million in this quarter.

Operational Strategy

As part of its growth strategy, Total Play recorded a noteworthy 8% rise in residential segment revenue, contributing Ps. 9,655 million, largely owing to a subscriber base growth of 9%, raising the total subscribers to approximately 5.2 million. This subscriber increase is attributed to the company’s commitment to providing top-notch internet services characterized by speed and stability, alongside enhancements in customer service and innovations in their entertainment platform.

However, the enterprise revenue witnessed a decline of 12%, totaling Ps. 1,521 million, primarily attributed to the conclusion of pre-defined projects.

Total Play’s capital expenditures during the quarter constituted 29% of its revenue, a decline from 36% recorded a year prior. This shift indicates a stricter approach towards capital allocation coupled with a focus on optimizing existing operational capacities rather than aggressive expansion.

Balance Sheet Assessment

On another note, as of December 31, 2024, the company witnessed its total debts narrow to Ps. 56,278 million, an increase from Ps. 52,199 million in 2023. Following a successful exchange of US$821 million regarding debt instruments, Total Play is positioned to greatly enhance its liquidity and extend its maturity profile.

The energy in financial metrics shown for Q4 2024 is not an isolated case but culminates in a twelve-month period characterized by steady operational growth. The total revenue for 2024 was reported as Ps. 44,530 million, reflecting a 10% increase from the preceding year.

In conclusion, Total Play's robust performance in Q4 2024 is a testament to the company’s strategic vision. It showcases their ability to maintain growth and profit despite the volatility in the market. The commitment to innovation and efficient operational management remains a pivotal force driving Total Play towards a prosperous future.

For more updates on Total Play, visit Total Play’s website.