Total Play Announces Revenue Of Ps.7,270 Million and EBITDA Of Ps.3,056 Million In The Third Quarter Of 2021

News provided by

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

Oct 28, 2021, 20:12 ET

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

Third quarter results

Revenue for the quarter totaled Ps.7,270 million, compared to Ps.5,004 million for the same period of the previous year. Total costs and expenses were Ps.4,214 million, compared to Ps.3,274 million from the previous year.

As a result, Total Play's EBITDA was Ps.3,056 million, from Ps.1,730 million a year ago. The company recorded operating profit of Ps.753 million, compared to Ps.30 million a year ago. Total Play reported net loss of Ps.836 million versus a loss of Ps.258 million in the same period of 2020.

Revenue from services

The growth in the company's revenue in the period is the result of an increase, both in the residential and the enterprise segments sales, due to greater demand from users for Total Play's telecommunications services.

Costs and expenses

Total costs and expenses grew 29%, as a result of a 24% increase in service costs and a 32% increase in general expenses. The increase in costs, to Ps.1,635 million, from Ps.1,322 million in the previous year, results mainly from the acquisition of content, cost of sales of telecommunications equipment for business customers, commissions, leasing of connection links and licenses for the optimal operation of the network.

The increase in expenses, to Ps.2,579 million, from Ps.1,952 million, reflects higher services, advertising and promotion expenses, as well as maintenance costs.

EBITDA and net result

Total Play's EBITDA was Ps.3,056 million compared to Ps.1,730 million from the previous year.

The main variations below EBITDA were the following:

Ps.603 million increase in depreciation and amortization, as a result of investments in coverage of the fiber optic network and user acquisition cost — telecommunications equipment, labor and installation expenses.

Ps.512 million growth in interest expense, mainly derived from growth in long-term financial debt.

Ps.623 million losses in foreign exchange this quarter, compared to a profit of Ps.112 million a year ago, as a consequence of a dollar net liability monetary position in conjunction with the depreciation of the exchange rate of the peso against the dollar this period, compared with appreciation the previous year.

Total Play reported net loss of Ps.836 million, from a loss of Ps.258 million in the same period of 2020.

Balance Sheet

As of September 30, 2021, the company's debt with cost was Ps.40,671 million, compared to Ps.19,532 million from the previous year.

The growth of the debt balance is related to two successful placements of Senior Notes in international markets, i) the first one for US$575 million in November 2020, and ii) the second one for US$600 million in September 2021.

The lease liability was Ps.4,738 million, compared to Ps.4,380 million from 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.

Investor Relations:

Investor Relations:




Bruno Rangel

Rolando Villarreal

Samantha Pescador

+ 52 (55) 1720 9167

+ 52 (55) 1720 9167

+52 (55) 3032 3639

[email protected] 

[email protected]

[email protected]




Press Relations:

Luciano Pascoe

Tel. +52 (55) 1720 1313 ext. 36553

[email protected]


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


CONSOLIDATED QUARTERLY INCOME STATEMENTS


(Millions of Mexican pesos)

























3Q20


3Q21


Change




$

%


$

%


$

%














Revenue from services

5,004

100%


7,270

100%


2,266

45%














Cost of services

(1,322)

(26%)


(1,635)

(22%)


(313)

(24%)














Gross profit

3,682

74%


5,635

78%


1,953

53%














General expenses

(1,952)

(39%)


(2,579)

(35%)


(627)

(32%)














EBITDA

1,730

35%


3,056

42%


1,326

77%














Depreciation and amortization

(1,700)

(34%)


(2,303)

(32%)


(603)

(35%)



Other income (expenses) - Net

-

0%


-

0%


-

0%














Operating profit (loss)

30

1%


753

10%


723

2410%














Financial cost:











Interest revenue

13

0%


11

0%


(2)

(15%)



Accrued interest expense

(390)

(8%)


(902)

(12%)


(512)

(131%)



Other financial (expenses) income - Net

(15)

(0%)


(72)

(1%)


(57)

380%



Foreign exchange (loss) gain - Net

112

2%


(623)

(9%)


(735)

656%














Profit (loss) before income tax provision

(250)

(5%)


(833)

(11%)


(583)

233%














Income tax provision

(8)

(0%)


(3)

(0%)


5

63%














Net income (loss) for the period

(258)

(5%)


(836)

(11%)


(578)

224%



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


CONSOLIDATED QUARTERLY INCOME STATEMENTS


(Millions of Mexican pesos)

























Accumulated


Accumulated







9M20


9M21


Change




$

%


$

%


$

%














Revenue from services

13,881

100%


20,465

100%


6,584

47%














Cost of services

(3,709)

(27%)


(4,908)

(24%)


(1,199)

(32%)














Gross profit

10,172

73%


15,557

76%


5,385

53%














General expenses

(5,301)

(38%)


(6,868)

(34%)


(1,567)

(30%)














EBITDA

4,871

35%


8,689

42%


3,818

78%














Depreciation and amortization

(4,621)

(33%)


(6,395)

(31%)


(1,774)

(38%)



Other income (expenses) - Net

-

0%


-

0%


-

na














Operating profit

250

2%


2,294

11%


2,044

818%














Financial cost:











Interest revenue

31

0%


32

0%


1

3%



Accrued interest expense

(903)

(7%)


(2,074)

(10%)


(1,171)

(130%)



Other financial expenses

(61)

(0%)


(195)

(1%)


(134)

(220%)



Foreign exchange gain (loss) - Net

(263)

(2%)


(529)

(3%)


(266)

101%














Profit (loss) before income tax provision

(946)

(7%)


(472)

(2%)


474

(50%)














Income tax provision

(21)

(0%)


(20)

(0%)


1

(5%)














Net income (loss) for the period

(967)

(7%)


(492)

(2%)


475

(49%)


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

CONSOLIDATED BALANCE SHEETS

(Millions of Mexican pesos)















As of September 30,







2020



2021



Change




$

%


$

%


$

%


Assets











CURRENT ASSETS











Cash and cash


113

0%


6,932

11%


6,819

6035%


Restricted cash in trusts


1,430

3%


1,118

2%


(312)

(22%)


Customers - net


2,647

6%


3,391

5%


744

28%


Other receivables and recoverable taxes


2,926

7%


4,324

7%


1,398

48%


Inventories


1,042

2%


1,552

2%


510

49%


Prepaid expenses


557

1%


612

1%


55

10%


Total current assets


8,715

20%


17,929

27%


9,214

106%













NON-CURRENT ASSETS











Property, plant and equipmente - Net


29,433

67%


41,928

64%


12,495

42%


Rights-of-use assets -Net


4,169

10%


4,368

7%


199

5%


Other non-current assets


1,395

3%


1,620

2%


225

16%


Total non-current assets


34,997

80%


47,916

73%


12,919

37%


Total assets


43,712

100%


65,845

100%


22,133

51%













Liabilities and Stockholders' Equity











SHORT-TERM LIABILITIES











Short-term financial debt


1,840

4%


1,414

2%


(426)

(23%)


Trade payables


9,877

23%


7,575

12%


(2,302)

(23%)


Other payables and taxes


1,998

5%


3,046

5%


1,048

52%


Derivative financial instruments


7

0%


-

0%


(7)

n.m.


Lease liabilities


1,627

4%


1,481

2%


(146)

(9%)


Total short-term liabilities


15,349

35%


13,516

21%


(1,833)

(12%)













LONG-TERM LIABILITIES











Long-term financial debt


17,692

40%


39,257

60%


21,565

122%


Trade payables


28

0%


4

0%


(24)

(86%)


Other long-term payables


151

0%


81

0%


(70)

(46%)


Lease liabilities


2,753

6%


3,257

5%


504

18%


Total long-term liabilities


20,624

47%


42,599

65%


21,975

107%


Total liabilities


35,973

82%


56,115

85%


20,142

56%













STOCKHOLDERS' EQUITY


7,739

18%


9,730

15%


1,991

26%


Total stockholders' equity and liabilities


43,712

100%


65,845

100%


22,133

51%


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



CONSOLIDATED STATEMENTS OF CASH FLOWS



(Millions of Mexican pesos)













Years ended





September 30,





2020

2021

Operating activities:






(Loss) income before income tax provision




(946)

(471)

Items not requiring the use of resources:






   Depreciation and amortization




4,620

6,395

   Employee benefits




14

362

Items related to investing or financing activities:






    Accrued interest income




(31)

(32)

    Accrued interest expense and other financial transactions




903

2,075

Valuation of financial derivative instruments




9

(406)





4,569

7,923

Resources (used in) generated by operating activities:






   Customers and unearned revenue




(491)

(1,015)

   Other receivables




5

(23)

   Related parties, net




230

(88)

   Taxes to be recovered




(858)

(638)

   Inventories




218

70

  Advance payments




(414)

(204)

   Trade payables




5,126

(680)

   Other payables




268

879







Cash flows generated by operating activities




8,653

6,224







Investing activities:






Acquisition of property, plant and equipment




(9,667)

(12,094)

Other assets




(9)

(112)

Collected interest




31

32







Cash flows (used in) investing activities




(9,645)

(12,174)







Financing activities:






Loans received




4,411

14,478

Leasing cash flows




(1,684)

(1,232)

Interest payment




(1,557)

(2,214)

Restricted Cash in Trusts




(483)

153

Reverse factoring




191

(90)







Net cash flows generated by financing activities




878

11,095







Increase in cash and cash equivalents




(114)

5,145

Cash and cash equivalents at the beginning of the year




227

1,787







Cash and cash equivalents at the end of the year




113

6,932

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