The drop in Axtel’s income is due to the performance of its unit Alestrawhose revenues also registered a 1% drop, mainly due to an 18% drop in revenues from the government segment “as a result of the termination of contracts with federal entities,” the firm said in its report.
“We are expanding customer base towards states of the republic where we did not have a presence and that represent attractive opportunities, as well as strengthening relationships with new and existing federal entities”, informed Armando de la Peña, CEO of Axtel.
The business segment had a 1% rise in revenues due to a 12% increase in digital transformation services.
The income of the other business unit of Axtel, axnet“recorded a slight increase, mainly due to an increase in dark fiber contracts,” the company said, which offset the drop in connectivity revenue from wholesale customers.
“Among different initiatives and actions to boost revenue growth, we are reinforcing the attributes that represent the Alestra and Axnet brands beyond traditional connectivity, towards specialized services, such as cyber security, consultancy and solutions of hybrid cloud”, indicated Of the Pena.
In this quarter, the firm concluded its spin-off from Alfa and the process to list Holding Axtel on the Mexican Stock Exchange is expected to be completed in the coming months.
