Third Quarter 2012

Third Quarter 2012
Alestra S. de R.L. de C.V.
Third Quarter 2012
Alestra S. de R.L. de C.V.
Alestra
Telecommunications and Information Technologies
» Operations
During 3Q12, we continued to sell more specialized telecom and IT services as a part of the
package we offer to our customers. To do so, we leverage our strong infrastructure, which consists of
more than 17,000 km of fiber optics, plus metro rings and dedicated microwave spectrum in Mexico’s
main cities. Value Added Services (VAS) volume totaled 1,012,000 E0s (equivalent of customer‐access
circuits providing services), a 14% year‐on‐year increase. Legacy long distance services represented only
17% of the total revenues for the quarter, compared to 19% in the same period of the prior year.
We are committed to providing services with the highest standards. Recently, we obtained the
recertification as Cisco’s Gold Partner in recognition of its competitive advantages in training, expertise
and service quality. In addition, Alestra is the first 100% Mexican company to receive Cisco’s Managed
Services Channel Provider (MSCP) certification for the quality of its services. These two certifications are
further proof of the quality of Alestra’s Operation Centers.
Financial Results
3Q12 revenues were U.S. $87 million, down 11% from 3Q11. When measured in dollars, the
decline was primarily due to the 8% average peso depreciation between the quarters under comparison,
which impacted all Mexican companies exposed to the local currency when reporting in dollar terms. In
peso terms, 3Q12 revenues were only 4% lower than in 3Q11. In addition, the lower revenues reflected
the absence in AGN services, which have been mostly offset by the increase of other domestic revenues.
During 3Q12, VAS represented 83% of total revenues which compares to 81% in 3Q11. On a
cumulative basis, revenues for the year amounted to U.S. $263 million, a 10% decrease when compared
to the same period last year, for the same reasons. In peso terms, cumulative revenues were only 1%
lower than 2011.
Along with the reduction of interconnection costs, we have been implementing several actions to
increase efficiency and reduce costs and expenses. The most important has been the expansion of our
optic fiber network enabling us to reach the same or more places without leasing lines. As a result, 3Q12
costs and expenses were 15% lower when compared to 3Q11.
Operating income for the quarter was U.S. $16 million, flat in dollars over the same period in
2011, but up 8% in peso terms.
Year‐to‐date, operating income amounted to U.S. $56 million, 24% above the same year‐ago
period due to one‐time profit reported in 1Q12 resulting from the cancellation of interconnection fees we
had been provisioning in past years.
Alestra- Public Use Information
Third Quarter 2012
Alestra S. de R.L. de C.V.
3Q12 EBITDA totaled U.S. $32 million, down 4% year‐on‐year, but up 4% in peso terms. EBITDA
margin was 37% during 3Q12, above the 34% reported in 3Q11. This is the result of an improved revenue
mix, with more VAS than legacy LD services, and lower interconnection costs. On a cumulative basis,
EBITDA amounted to U.S. $104 million, a 6% year‐to‐date increase but 16% higher in peso terms.
» Capital Expenditures and Net Debt
Capital expenditures for the quarter were U.S. $19 million, for a cumulative of U.S. $41 million.
Funds have been mainly used to expand the optic fiber network and to increase capacity at data centers.
At the end of the quarter, our Net Debt was U.S. $131 million. Financial ratios improved: Net Debt to LTM
EBITDA was 1.0 times; Interest Coverage was 5.2 times. These figures compare to 1.3 times and 4.8 times,
respectively, in 3Q11.
TABLE 1 |
REVENUES
(%) 3Q12 vs.
3Q12
2Q12
3Q11 2Q12
3Q11
YTD’12
YTD’11
Ch.%
1,161
87
1,160
86
1,209
99
0
2
(4)
(11)
3,489
263
3,511
292
(1)
(10)
958
72
945
70
974
79
1
3
(2)
(9)
2,840
214
2,793
232
2
(8)
203
15
83
214
16
82
234
19
81
(5)
(4)
(14)
(20)
649
49
81
719
60
80
(10)
(18)
Total Revenues
Ps. Millions
U.S. $ Millions
Data, Internet and Local Services (VAS)
Ps. Millions
U.S. $ Millions
Long Distance Services
Ps. Millions
U.S. $ Millions
Data, Internet and Local Services / Total (%)
TABLE 2 |
OPERATING INCOME AND EBITDA
(%) 2Q12 vs.
Operating Income
Ps. Millions
U.S. $ Millions
EBITDA
Ps. Millions
U.S. $ Millions
3Q12
2Q12
3Q11
2Q12
3Q11
YTD’12
YTD’11
Ch.%
214
16
199
15
198
16
8
9
8
0
741
56
546
45
36
24
426
32
417
31
411
34
2
4
4
(4)
1,381
104
1,187
99
16
6
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Third Quarter 2012
Alestra S. de R.L. de C.V.
TABLE 3 |
SELECTED BALANCE SHEET INFORMATION & FINANCIAL RATIOS (U.S. $ MILLIONS)
Assets
Liabilities
Stockholders’ Equity
Net Debt
Net Debt/LTM EBITDA*
Interest Coverage*
3Q12
2Q12
3Q11
YTD’12
YTD’11
560
325
235
131
1.0
5.2
547
333
214
138
1.0
5.1
530
326
204
168
1.3
4.8
560
325
235
131
1.0
5.2
530
326
204
168
1.3
4.8
* LTM: last 12 months for 2012. Annualized basis for 2011.
Contact:
Sergio Bravo
+ (5281) 86252201
sbravo@alestra.com.mx
Rosa Vargas
+ (5281) 86252321
rvargasl@alestra.com.mx
Alestra- Public Use Information