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Total Play Announces a 63% Increase in EBITDA, to Ps. 2,676 Million in the First Quarter of 2021
[April 28, 2021]

Total Play Announces a 63% Increase in EBITDA, to Ps. 2,676 Million in the First Quarter of 2021


MEXICO CITY, April 28, 2021 /PRNewswire/ -- CIBANCO, S.A, Institución de Banca Múltiple, as Trustee of the CIB/3370 Trust, announces that Total Play Telecomunicaciones, S.A. de C.V. ("Total Play"), provider of triple play services in Mexico, announced today its first quarter 2021 financial results.

First quarter results

"We continued with the strong geographic growth in Totalplay Residencial in the period, through our 100% fiber optic network direct to home, unparalleled in Mexico. At the same time, we significantly increased penetration, which allowed us to reach an increasing number of households with the company's world-class telecommunications services, with the highest speed internet, the best streaming quality and the most advanced entertainment options — from Video on Demand and Anytime TV, to applications with the most innovative content globally," commented Eduardo Kuri, CEO of Total Play. "The dynamic growth in the number of subscribers, translated into a solid increase in revenues, EBITDA and Operating Income for Total Play in the quarter."

Revenue for the period totaled Ps.6,356 million, 44% above the Ps.4,402 million in the same quarter of the previous year. Total costs and expenses were Ps.3,680 million, compared to Ps.2,759 million from the previous year.

As a result, Total Play's EBITDA grew 63%, to Ps.2,676 million, from Ps.1,643 million a year ago; the EBITDA margin for the quarter was 42%, five percentage points higher than the 37% of the previous year. The company recorded operating income of Ps.658 million, compared to operating income of Ps.268 million a year ago.

Total Play reported a net loss of Ps.216 million, from a net loss of Ps.370 million in the same period of 2020.






   1Q 2020

   1Q 2021

   Change




Ps.

%






Revenue from services

$4,402

$6,356

$1,954

44%






EBITDA      

$1,643

$2,676

$1,033

63%






Operating result

$268

$658

$390

----






Net result

$(370)

$(216)

$154

42%







Amounts in millions of pesos.

EBITDA: operating income before depreciation and amortization

Revenue from services

The company's revenue grew 44%, as a result of a 67% increase in sales from the residential segment, and a 2% increase in revenue from the enterprise business.

Totalplay Residencial's revenue growth, to Ps.4,789 million, compared to Ps.2,869 million from the previous year, results from a 66% increase in the number of subscribers to the company's services, to 2'695,532.

Revenue generating units (RGUs) grew 66%, to 7'120,000 at the end of the quarter, compared to 4'292,523 the previous year. The number of data RGUs grew 66%, to 2'695,532, those of voice 74%, to 2'628,528, and those of video increased 55%, to 1'795,940.

The dynamism of Totalplay Residencial reflects the preference of thousands of users for the solid offer of broadband services with speeds of up to 500 Mbps, content on applications and linear TV attributes that optimize the customer's entertainment experience, as well as voice solutions with worldwide coverage from the mobile application. In this context, the disconnection rate was 1.0% at the end of the quarter, compared to 1.5% a year ago, and the average revenue per subscriber (ARPU) for the period was Ps.611 — outstanding level in the market — from Ps.614 from the previous year.

Given the notable demand for Total Play services, the company makes investments to increase geographic coverage and further expand the subscribers base. The number of homes passed across the country grew 9%, to 10.7 million at the end of the quarter, from 9.8 million a year ago.

Penetration — proportion of homes passed by Total Play that have the company's telecommunications services — continued its solid growth and reached 25.3% at the end of the quarter, 8.7 percentage points above the 16.6% a year ago.

Revenue from the enterprise segment was Ps.1,567 million, compared to Ps.1,534 million from the previous year, largely as a result of higher revenues from government clients.

The demand for the company's high-capacity internet services, video surveillance and cloud and management solutions is solid and growing, by a large number of the most important companies in Mexico and by public entities. Total enterprise segment customer services grew 25% to 109,873 at the end of the quarter, compared to 87,719 the previous year.

Costs and expenses

Total costs and expenses grew 33%, as a result of a 30% increase in service costs and a 37% increase in general expenses. The increase in costs, to Ps.1,627 million, from Ps.1,256 million in the previous year, results mainly from the acquisition of telecommunications equipment for enterprise clients, licenses, content purchases, commissions and the acquisition of connection links for optimal network operation.

The increase in expenses, to Ps.2,053 million, from Ps.1,503 million, reflects higher personnel, maintenance, advertising and promotion expenses, within the framework of growing operations in Total Play.

EBITDA and net result

Total Play's EBITDA was Ps.2,676 million compared to Ps.1,643 million from the previous year. The company recorded operating income of Ps.658 million, from operating income of Ps.268 million in the first quarter of 2020.

The main variations below EBITDA were the following:

An increase of Ps.641 million in depreciation and amortization, as a result of investments in the coverage of the fiber optic network, and a greater number of telecommunications equipment, in the context of the robust growth of the company.

An increase of Ps.370 million in interest charges, mainly derived from an increase in long-term financial debt.

Total Play recorded a net loss of Ps.216 million, from a net loss of Ps.370 million a year ago.

Balance Sheet

As of March 31, 2021, the company's debt with cost was Ps. 27,846 million, compared to Ps.15,932 million from the previous year. The balance of cash and cash equivalents at the end of the quarter totaled Ps.46 million, from Ps.168 million a year ago; as a result, net debt was Ps.27,800 million, compared to Ps.15,764 million in the previous year.

The growth of the debt balance is related to the successful placement of Senior Notes for US$575 million in international markets in the previous quarter, with an interest rate of 7.5%, due in 2025.

The Senior Notes — which were rated B2 by Moody's and BB- by Fitch — are used to increase the company's geographic coverage, as well as to refinance liabilities, in order to reduce the cost of debt and improve its maturity profile.

The financial lease liability was Ps.2,500 million, compared to Ps.3,046 million from the previous year.

Cash Flow

As of March 31, 2021, Total Play used cash flows in investment activities for Ps. 3,808 million, which were directed, to a great extent, to the geographic expansion of the fiber optic network across the country, as well as the purchase of telecommunications equipment to connect a growing number of users to the company's triple play services.

This amount was partially offset by the generation of cash flow from operating activities of Ps.2,356 million and cash flow from financing activities of Ps.282 million.

As a result, the company's cash and cash equivalents balance decreased by Ps.1,741 million in the period.

About Total Play

Total Play is a leading Triple Play provider in Mexico that, thanks to the widest direct-to-home fiber optic network in the country, offers entertainment and technologically advanced services with the highest quality and speed in the market. For the latest news and updates about Total Play, visit: www.totalplay.com.mx

Total Play is a Grupo Salinas company (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 standards of living; social value to improve community wellbeing; and environmental value by reducing the negative impact of its business activities. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. The group of companies shares a common vision, values and strategies for achieving 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 uncertainty that may cause actual results to differ materially from those projected. Other risks that may affect Total Play and its subsidiaries are presented in documents sent to the securities authorities.

Investor Relations:

Bruno Rangel

Rolando Villarreal

Samantha Pescador

+ 52 (55) 1720 9167

+ 52 (55) 1720 9167

+52 (55) 3032 3639

jrangelk@totalplay.com.mx

rvillarreal@totalplay.com.mx

samantha.pescador@totalplay.com.mx

Press Relations:

Luciano Pascoe
Tel. +52 (55) 1720 1313 ext. 36553
lpascoe@gruposalinas.com.mx

 

TOTALPLAY TELECOMUNICACIONES, S.A. DE C.V. AND SUBSIDIARIES

CONSOLIDATED QUARTERLY INCOME STATEMENTS

(Millions of Mexican pesos)






















1Q20


1Q21


Change



$

%


$

%


$

%












Revenue from services

4,402

100%


6,356

100%


1,954

44%












Cost of services

(1,256)

(29%)


(1,627)

(26%)


(371)

(30%)












Gross profit

3,146

71%


4,729

74%


1,583

50%












General expenses

(1,503)

(34%)


(2,053)

(32%)


(550)

(37%)












EBITDA

1,643

37%


2,676

42%


1,033

63%












Depreciation and amortization

(1,378)

(31%)


(2,019)

(32%)


(641)

(47%)


Other income (expenses) - Net

3

0%


1

0%


(2)

67%












Operating profit (loss)

268

6%


658

10%


390

146%












Financial cost:










Interest revenue

10

0%


14

0%


4

40%


Accrued interest expense

(192)

(4%)


(562)

(9%)


(370)

(193%)


Other financial (expenses) income - Net

(32)

(1%)


(43)

(1%)


(11)

34%


Foreign exchange (loss) gain - Net

(418)

(9%)


(274)

(4%)


144

34%












Profit (loss) before income tax provision

(364)

(8%)


(207)

(3%)


157

(43%)












Income tax provision

(6)

(0%)


(9)

(0%)


(3)

(50%)












Net income (loss) for the period

(370)

(8%)


(216)

(3%)


154

(42%)






















 

TOTALPLAY TELECOMUNICACIONES, S.A. DE C.V. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Millions of Mexican pesos)















As of March 31,







2020



2021



Change




$

%


$

%


$

%


Assets











CURRENT ASSETS











Cash and cash 


168

0%


46

0%


(122)

(73%)


Customers - net


2,066

6%


2,348

5%


282

14%


Other receivables and recoverable taxes


2,393

6%


3,667

7%


1,274

53%


Other financial assets


1,120

3%


1,097

2%


(22)

(2%)


Inventories


1,528

4%


1,601

3%


73

5%


Prepaid expenses


174

0%


410

1%


237

136%


Total current assets


7,448

20%


9,170

18%


1,722

23%













NON-CURRENT ASSETS











Property, plant and equipmente - Net


24,317

66%


35,141

71%


10,824

45%


Rights-of-use assets -Net


3,838

10%


3,896

8%


57

1%


Other non-current assets


1,366

4%


1,481

3%


114

8%


Total non-current assets


29,522

80%


40,517

82%


10,996

37%


Total assets


36,969

100%


49,687

100%


12,717

34%













Liabilities and Stockholders' Equity











SHORT-TERM LIABILITIES











Short-term financial debt


1,592

4%


989

2%


(603)

(38%)


Trade payables


6,403

17%


7,635

15%


1,232

19%


Other payables and taxes


1,353

4%


1,976

4%


622

46%


Derivative financial instruments


-

0%


75

0%


75

n.m.


Lease liabilities


1,598

4%


1,466

3%


(133)

(8%)


Total short-term liabilities


10,947

30%


12,140

24%


1,193

11%













LONG-TERM LIABILITIES











Long-term financial debt


14,340

39%


26,857

54%


12,517

87%


Trade payables


64

0%


16

0%


(48)

(75%)


Other long-term payables


317

1%


108

0%


(209)

(66%)


Lease liabilities


2,888

8%


2,743

6%


(144)

(5%)


Total long-term liabilities


17,609

48%


29,725

60%


12,116

69%


Total liabilities


28,556

77%


41,865

84%


13,309

47%













STOCKHOLDERS' EQUITY


8,414

23%


7,822

16%


(592)

(7%)


Total stockholders' equity and liabilities


36,969

100%


49,687

100%


12,717

34%













 

TOTAL PLAY TELECOMUNICACIONES, S.A. DE C.V. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Millions of Mexican pesos)











Years ended 





March 31,





2020

2021

Operating activities:






(Loss) income before income tax provision



(370)

(216)

Items not requiring the use of resources:





   Depreciation and amortization




539

707

   Subscriber acquisition cost




839

1,312

   Employee benefits




4

5

Items related to investing or financing activities:




    Accrued interest income




(10)

(14)

    Accrued interest expense and other financial transactions

192

562





1,195

2,356

Resources (used in) generated by operating activities:




   Customers and unearned revenue



90

29

   Other receivables




4

(160)

   Related parties, net




46

(46)

   Recoverable taxes 




(348)

(211)

   Inventories




(268)

20

   Prepaid expenses




(31)

(3)

   Trade payables




1,789

(374)

   Other payables




33

175







Cash flows generated by operating activities



2,510

1,785







Investing activities: 






Acquisition of property, plant and equipment


(2,472)

(3,838)

Other assets




20

15

Collected interest




10

14







Cash flows (used in) investing activities



(2,441)

(3,808)







Financing activities:






Loans received




810

1,310

Reverse factoring




92

(324)

Interest payment




(474)

(483)

Leasing cash flows




(457)

(395)

Fiduciary rights




(99)

174







Net cash flows generated by financing activities


(128)

282







Increase in cash and cash equivalents



(59)

(1,741)

Cash and cash equivalents at the beginning of the year 


227

1,787







Cash and cash equivalents at the end of the year 


168

46







 

Cision View original content:http://www.prnewswire.com/news-releases/total-play-announces-a-63-increase-in-ebitda-to-ps-2-676-million-in-the-first-quarter-of-2021--301279499.html

SOURCE Total Play Telecomunicaciones, S.A. de C.V.


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