TOTAL PLAY ANNOUNCES REVENUE OF Ps.9,736 MILLION AND EBITDA OF Ps.4,379 MILLION IN THE FOURTH QUARTER OF 2022

MEXICO CITY, Feb. 23, 2023 /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 2022.

Fourth quarter results

Revenue for the quarter totaled Ps.9,736 million, compared to Ps.7,623 million of the previous year. Total costs and expenses were Ps.5,357 million, from Ps.4,292 million a year ago.

As a result, Total Play's EBITDA totaled Ps.4,379 million, from Ps.3,331 million the previous year. The company registered operating income of Ps.747 million, compared to Ps.824 million a year ago. Total Play reported a net loss of Ps.101 million, from a loss of Ps.1,003 million in the same period of 2021.

Revenue from services

The growth in Total Play revenue in the quarter is mainly the result of increased sales in the residential segment, due to higher household demand for the company's telecommunications services. The continuous increase in Total Play revenue is reaffirmed this period despite intense competition in the industry — which affects market prices — and the normalization of face-to-face activities throughout the country. This shows the growing preference of users for the superior attributes of our internet, pay television and telephony services, which optimally satisfy the connectivity and entertainment needs of millions of homes.

Costs and expenses

Total costs and expenses grew 25%, as a result of a 10% increase in service costs and a 33% increase in general expenses. The growth in costs, to Ps.1,729 million, from Ps.1,572 million the previous year, mainly results from the purchase of content, memberships, licenses, link rental and other interconnection services for the operation of the network.

The increase in expenses, to Ps.3,628 million, from Ps.2,720 million, reflects higher personnel, advertising and promotion, maintenance, and call center expenses, in the context of growing operations in the company.

EBITDA and net result

Total Play EBITDA was Ps.4,379 million compared to Ps.3,331 million the previous year.

Relevant variations below EBITDA were the following:

Growth of Ps.1,125 million in depreciation and amortization, as a result of user acquisition cost — telecommunications equipment, labor and installation expenses — as well as investments in fiber optic network coverage.

Increase of Ps.352 million in interest payments, mainly derived from the increase in the balance of financial debt.

Growth of Ps.280 million in other financial expenses as a result of expenses related to debt issues and derivative financial instruments.

Exchange gain of Ps.1,248 million this period, compared to a loss of Ps.50 million a year ago, as a result of the net liability monetary position in foreign currency, together with the appreciation of the peso against the basket of currencies in which the company's monetary liabilities are denominated this quarter, compared to depreciation a year ago.

Total Play reported a net loss of Ps.101 million, from a loss of Ps.1,003 million in the same period of 2021.

Balance sheet

As of December 31, 2022, the company's debt with cost was Ps.49,533 million, compared to Ps.41,496 million the previous year. The growth of the debt balance is related to the issuance of Certificados Bursátiles and loans with financial institutions during the period.

The lease liability was Ps.7,073 million, compared to Ps.5,409 million of the previous year.

The company's fixed assets — which include the accumulated investment in fiber optics, telecommunications equipment and the cost of acquiring subscribers, among other assets — was Ps.58,165 million, 27% higher than the Ps.45,851 million of 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:

Press Relations:

Luciano Pascoe
Tel. +52 (55) 1720 1313 ext. 36553
[email protected]

TOTAL PLAY TELECOMUNICACIONES, S.A.P.I.  DE C.V. AND SUBSIDIARIES
CONSOLIDATED QUARTERLY INCOME STATEMENTS
(Millions of Mexican pesos)

TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V. AND SUBSIDIARIES
CONSOLIDATED ACCUMULATED INCOME STATEMENTS
(Millions of Mexican pesos)

TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Millions of Mexican pesos)

TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of Mexican pesos)

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