TOTAL PLAY ANNOUNCES REVENUE OF Ps.8,897 MILLION AND EBITDA OF Ps.3,805 MILLION IN THE SECOND QUARTER OF 2022
MEXICO CITY, July 28, 2022 /PRNewswire/ -- Total Play Telecomunicaciones, S.A.P.I. de C.V. ("Total Play"), a leading telecommunications company in Mexico, which offers internet access, pay television and telephone services, through one of the largest 100% fiber optic networks in the country, today announced financial results for the second quarter of 2022.
Second quarter results
Revenue for the quarter totaled Ps.8,897 million, compared to Ps.6,839 million from the previous year. Total costs and expenses were Ps.5,092 million, from Ps.3,882 million a year ago.
As a result, Total Play's EBITDA totaled Ps.3,805 million, from Ps.2,957 million in the previous year. The company posted an operating profit of Ps.734 million, compared to Ps.884 million a year ago. Total Play reported a net loss of Ps.447 million, from a profit of Ps.560 million in the same period of 2021.
Revenue from services
The growth in the company's revenue in the period results from an increase in sales in the residential segment, due to greater demand from households for Total Play's telecommunications services. The number of residential users at the end of the quarter was 4 million, compared to 2.9 million a year ago.
Costs and expenses
Total costs and expenses grew 31%, as a result of a 22% increase in service costs and a 38% increase in general expenses. The growth in costs, to Ps.2,006 million, from Ps.1,646 million in the previous year, results mainly from the purchase of content, memberships, licenses for the operation of the network and leasing of connection links.
The increase in expenses, to Ps.3,086 million, from Ps.2,236 million, reflects higher expenses for services, advertising and promotion, maintenance, as well as call center, in the context of growing operations at the company.
EBITDA and net result
Total Play's EBITDA was Ps.3,805 million compared to Ps.2,957 million in the previous year.
The main variations below EBITDA were as follows:
Growth of Ps.998 million in depreciation and amortization, as a result of subscriber acquisition costs — telecommunications equipment, labor and installation expenses — as well as investments in fiber optic network coverage.
Increase of Ps.358 million in interest expense, derived mainly from growth in long-term financial debt.
Decrease of Ps.308 million in foreign exchange gain in the period, as a result of the net liability monetary position in foreign currency, together with a lower appreciation of the exchange rate of the peso against the basket of currencies in which the monetary liabilities of the company are denominated this quarter, compared to the previous year.
Total Play reported a net loss of Ps.447 million, from a net income of Ps.560 million in the same period of 2021.
As of June 30, 2022, the company's debt with cost was Ps.44,287 million, compared to Ps.30,121 million in the previous year.
The growth of the debt balance is mainly related to the issuance of Senior Notes in international markets for US$600 million, in September 2021.
The lease liability was Ps.5,941 million, compared to Ps.4,576 million in the previous year.
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.
SOURCE Total Play Telecomunicaciones, S.A.P.I. de C.V.