TOTAL PLAY ANNOUNCES REVENUE OF Ps.7,624 MILLION AND EBITDA OF Ps.3,345 MILLION IN THE FOURTH QUARTER OF 2021
MEXICO CITY, Feb. 25, 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 fourth quarter of 2021.
Fourth quarter results
Revenue for the quarter totaled Ps.7,624 million, compared to Ps.5,676 million from the previous year. Total costs and expenses were Ps.4,279 million, from Ps.3,211 million a year ago.
As a result, Total Play's EBITDA totaled Ps.3,345 million, from Ps.2,465 million the previous year. The company posted an operating profit of Ps.838 million, compared to Ps.646 million a year ago. Total Play reported a net loss of Ps.163 million, from a profit of Ps.420 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 33%, as a result of a 19% increase in service costs and a 43% increase in general expenses. The growth in costs, to Ps.1,573 million, from Ps.1,322 million in the previous year, results mainly from the purchase of content, cost of sales of telecommunications equipment for business customers, leasing of connection links and licenses for the operation of the network.
The increase in expenses, to Ps.2,706 million, from Ps.1,889 million, reflects higher expenses for services, advertising and promotion, as well as maintenance.
EBITDA and net result
Total Play's EBITDA was Ps.3,345 million compared to Ps.2,465 million in the previous year.
The main variations below EBITDA were the following:
Ps.688 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.401 million growth in interest expense, mainly derived from growth in long-term financial debt.
Ps.49 million losses in foreign exchange this quarter, compared to a profit of Ps.263 million a year ago, as a result of exchange rate volatility this period together with flows of monetary assets in dollars, compared to the appreciation of the exchange rate of the peso against the dollar a year ago and net liability monetary position in dollars.
Total Play reported net loss of Ps.163 million, from a net income of Ps.420 million in the same period of 2020.
Balance Sheet
As of December 31, 2021, the company's debt with cost was Ps.41,496 million, compared to Ps.26,193 million in the previous year.
The growth of the debt balance is mainly related to the placement of Senior Notes in international markets for US$600 million, in September 2021.
The lease liability was Ps.5,409 million, compared to Ps.4,429 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.
Investor Relations: | ||
Bruno Rangel | Rolando Villarreal | Samantha Pescador |
+ 52 (55) 1720 9167 | + 52 (55) 1720 9167 | +52 (55) 3032 3639 |
Press Relations: | ||
TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V. AND SUBSIDIARIES | |||||||||
CONSOLIDATED QUARTERLY INCOME STATEMENTS | |||||||||
(Millions of Mexican pesos) | |||||||||
4Q20 | 4Q21 | Change | |||||||
$ | % | $ | % | $ | % | ||||
Revenue from services | 5,676 | 100% | 7,624 | 100% | 1,948 | 34% | |||
Cost of services | (1,322) | (23%) | (1,573) | (21%) | (251) | (19%) | |||
Gross profit | 4,354 | 77% | 6,051 | 79% | 1,697 | 39% | |||
General expenses | (1,889) | (33%) | (2,706) | (35%) | (817) | (43%) | |||
EBITDA | 2,465 | 43% | 3,345 | 44% | 880 | 36% | |||
Depreciation and amortization | (1,819) | (32%) | (2,507) | (33%) | (688) | (38%) | |||
Other income (expenses) - Net | - | 0% | - | 0% | - | 0% | |||
Operating profit (loss) | 646 | 11% | 838 | 11% | 192 | 30% | |||
Financial cost: | |||||||||
Interest revenue | 14 | 0% | 22 | 0% | 8 | 57% | |||
Accrued interest expense | (538) | (9%) | (939) | (12%) | (401) | (75%) | |||
Other financial (expenses) income - Net | (74) | (1%) | (35) | (0%) | 39 | 53% | |||
Foreign exchange (loss) gain - Net | 263 | 5% | (49) | (1%) | (312) | 119% | |||
Profit (loss) before income tax provision | 311 | 5% | (163) | (2%) | (474) | 152% | |||
Income tax provision | 109 | 2% | - | 0% | (109) | 100% | |||
Net income (loss) for the period | 420 | 7% | (163) | (2%) | (583) | 139% | |||
TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V. AND SUBSIDIARIES | |||||||||
CONSOLIDATED ACCUMULATED INCOME STATEMENTS | |||||||||
(Millions of Mexican pesos) | |||||||||
Accumulated | Accumulated | ||||||||
12M20 | 12M21 | Change | |||||||
$ | % | $ | % | $ | % | ||||
Revenue from services | 19,557 | 100% | 28,089 | 100% | 8,532 | 44% | |||
Cost of services | (5,031) | (26%) | (6,481) | (23%) | (1,450) | (29%) | |||
Gross profit | 14,526 | 74% | 21,608 | 77% | 7,082 | 49% | |||
General expenses | (7,190) | (37%) | (9,574) | (34%) | (2,384) | (33%) | |||
EBITDA | 7,336 | 38% | 12,034 | 43% | 4,698 | 64% | |||
Depreciation and amortization | (6,440) | (33%) | (8,902) | (32%) | (2,462) | (38%) | |||
Other income (expenses) - Net | - | 0% | - | 0% | - | na | |||
Operating profit | 896 | 5% | 3,132 | 11% | 2,236 | 250% | |||
Financial cost: | |||||||||
Interest revenue | 45 | 0% | 54 | 0% | 9 | 20% | |||
Accrued interest expense | (1,441) | (7%) | (3,013) | (11%) | (1,572) | (109%) | |||
Other financial expenses | (135) | (1%) | (230) | (1%) | (95) | (70%) | |||
Foreign exchange gain (loss) - Net | - | 0% | (578) | (2%) | (578) | 0% | |||
Profit (loss) before income tax provision | (635) | (3%) | (635) | (2%) | - | 0% | |||
Income tax provision | 88 | 0% | (20) | (0%) | (108) | 123% | |||
Net income (loss) for the period | (547) | (3%) | (655) | (2%) | (108) | (20%) | |||
TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V. AND SUBSIDIARIES | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(Millions of Mexican pesos) | ||||||||||
As of December 31, | ||||||||||
2020 | 2021 | Change | ||||||||
$ | % | $ | % | $ | % | |||||
Assets | ||||||||||
CURRENT ASSETS | ||||||||||
Cash and cash | 1,787 | 4% | 4,166 | 6% | 2,379 | 133% | ||||
Restricted cash in trusts | 1,272 | 3% | 887 | 1% | (385) | (30%) | ||||
Customers - net | 2,376 | 5% | 3,749 | 5% | 1,373 | 58% | ||||
Derivative financial instruments | - | 0% | 221 | 0% | 221 | 0% | ||||
Other receivables and recoverable taxes | 3,388 | 7% | 4,272 | 6% | 884 | 26% | ||||
Inventories | 1,621 | 3% | 1,880 | 3% | 259 | 16% | ||||
Prepaid expenses | 407 | 1% | 467 | 1% | 60 | 15% | ||||
Total current assets | 10,851 | 22% | 15,642 | 23% | 4,791 | 44% | ||||
NON-CURRENT ASSETS | ||||||||||
Property, plant and equipmente - Net | 32,756 | 67% | 45,841 | 67% | 13,085 | 40% | ||||
Rights-of-use assets -Net | 4,142 | 8% | 4,997 | 7% | 855 | 21% | ||||
Other non-current assets | 1,497 | 3% | 2,085 | 3% | 588 | 39% | ||||
Total non-current assets | 38,395 | 78% | 52,923 | 77% | 14,528 | 38% | ||||
Total assets | 49,246 | 100% | 68,565 | 100% | 19,319 | 39% | ||||
Liabilities and Stockholders' Equity | ||||||||||
SHORT-TERM LIABILITIES | ||||||||||
Short-term financial debt | 443 | 1% | 2,615 | 4% | 2,172 | 490% | ||||
Trade payables | 8,336 | 17% | 8,767 | 13% | 431 | 5% | ||||
Other payables and taxes | 1,777 | 4% | 2,984 | 4% | 1,207 | 68% | ||||
Derivative financial instruments | 214 | 0% | - | 0% | (214) | n.m. | ||||
Lease liabilities | 1,681 | 3% | 1,651 | 2% | (30) | (2%) | ||||
Total short-term liabilities | 12,451 | 25% | 16,017 | 23% | 3,566 | 29% | ||||
LONG-TERM LIABILITIES | ||||||||||
Long-term financial debt | 25,750 | 52% | 38,881 | 57% | 13,131 | 51% | ||||
Trade payables | 14 | 0% | 4 | 0% | (10) | (71%) | ||||
Other long-term payables | 104 | 0% | 50 | 0% | (54) | (52%) | ||||
Lease liabilities | 2,748 | 6% | 3,758 | 5% | 1,010 | 37% | ||||
Total long-term liabilities | 28,616 | 58% | 42,693 | 62% | 14,077 | 49% | ||||
Total liabilities | 41,067 | 83% | 58,710 | 86% | 17,643 | 43% | ||||
STOCKHOLDERS' EQUITY | 8,179 | 17% | 9,855 | 14% | 1,676 | 20% | ||||
Total stockholders' equity and liabilities | 49,246 | 100% | 68,565 | 100% | 19,319 | 39% | ||||
TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V. AND SUBSIDIARIES | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
(Millions of Mexican pesos) | |||||
Years ended | |||||
December 30, | |||||
2020 | 2021 | ||||
Operating activities: | |||||
(Loss) income before income tax provision | (516) | (635) | |||
Items not requiring the use of resources: | |||||
Depreciation and amortization | 6,440 | 8,902 | |||
Employee benefits | 11 | 19 | |||
Items related to investing or financing activities: | |||||
Accrued interest income | (45) | (54) | |||
Accrued interest expense and other financial transactions | 1,441 | 3,012 | |||
Valuation of financial derivative instruments | 216 | (436) | |||
7,547 | 10,808 | ||||
Resources (used in) generated by operating activities: | |||||
Customers and unearned revenue | (220) | (1,373) | |||
Other receivables | (2) | (103) | |||
Related parties, net | 54 | (207) | |||
Taxes to be recovered | (1,342) | (742) | |||
Inventories | (361) | (258) | |||
Advance payments | (264) | (59) | |||
Trade payables | 3,106 | 773 | |||
Other payables | 98 | 1,090 | |||
Cash flows generated by operating activities | 8,616 | 9,929 | |||
Investing activities: | |||||
Acquisition of property, plant and equipment | (14,201) | (17,950) | |||
Other assets | (111) | (130) | |||
Collected interest | 45 | 54 | |||
Cash flows (used in) investing activities | (14,267) | (18,026) | |||
Financing activities: | |||||
Loans received | 11,072 | 15,303 | |||
Leasing cash flows | (2,035) | (1,671) | |||
Interest payment | (2,158) | (3,240) | |||
Restricted Cash in Trusts | (325) | 384 | |||
Reverse factoring | 657 | (352) | |||
Capital contributions | - | 5,052 | |||
Contributions for future capital increases | 0 | (5,000) | |||
Net cash flows generated by financing activities | 7,211 | 10,476 | |||
Increase in cash and cash equivalents | 1,560 | 2,379 | |||
Cash and cash equivalents at the beginning of the year | 227 | 1,787 | |||
Cash and cash equivalents at the end of the year | 1,787 | 4,166 | |||
SOURCE Total Play Telecomunicaciones, S.A.P.I. de C.V.
Share this article