TOTAL PLAY ANNOUNCES REVENUES OF Ps.8.416 MILLION AND EBITDA OF Ps.3.728 MILLION IN THE FIRST QUARTER OF 2022

MEXICO CITY, May 2, 2022 /PRNewswire/ — Total Play Telecomunicaciones, SAPI de CV (“Total Play”), a leading telecommunications company in Mexicowhich offers Internet access, pay TV and telephony services, via one of the largest 100% fiber optic networks in the country, today announced its financial results for the first quarter of 2022.

First quarter results

Revenue for the quarter totaled Ps8,416 million, compared to Ps6,356 million a year earlier. Total costs and expenses amounted to 4,688 million pesos, compared to 3,679 million pesos a year ago.

As a result, Total Play’s EBITDA amounted to Ps3,728 million, compared to Ps2,677 million the previous year. The company recorded an operating profit of 976 million pesos, compared to 658 million pesos a year ago. Total Play reported a net profit of 477 million pesos, compared to a loss of 216 million pesos in the same period of 2021.

Service revenue

The company’s revenue growth during the period was primarily the result of increased sales in the residential segment, driven by increased household demand for Total Play’s telecommunications services.

Costs and expenses

Total costs and expenses increased by 27%, due to a 15% increase in service costs and a 37% increase in overhead. The increase in costs, to 1,870 million pesetas, compared to 1,627 million pesetas the previous year, results mainly from the purchase of content, rental of feeder links and network operating licenses.

The increase in spending, to 2,818 million pesos from 2,052 million pesos, reflects higher spending on services, advertising and promotion, and maintenance, amid growing coverage.

EBITDA and net income

Total Play’s EBITDA was Ps3,728 million, compared to Ps2,677 million the previous year.

The main variations under EBITDA are as follows:

Growth of 733 million pesos in depreciation and amortization, due to user acquisition costs – telecommunications equipment, labor and installation expenses – as well as investments in fiber optic network coverage.

Increase of 352 million pesos in interest charges, mainly due to the growth of long-term financial debt.

Foreign exchange gain of 742 million pesos this quarter, compared to a loss of 274 million pesos a year ago, due to the net monetary position of the dollar liabilities, as well as the appreciation of the peso exchange rate by compared to the dollar this period, of the amortization of the previous year.

Total Play reported net income of 477 million pesos, compared to a net loss of 216 million pesos in the same period of 2021.

Balance sheet

From March 31, 2022the company’s debt with costs was 41,275 million pesos, compared to 27,503 million pesos the previous year.

The growth in the debt balance is mainly linked to the placement of Senior Notes on the international markets for $600 millionin September 2021.

The lease liability amounted to 5,804 million pesos, compared to 4,209 million pesos the previous year.

About Total Game

Total Play is one of the leading providers of Triple Play in Mexico which, thanks to the largest direct-to-home fiber optic network in the country, offers entertainment and technologically advanced services with the best quality and speed on the market. For the latest news and updates on Total Play, visit: www.totalplay.com.mx

Total Play is a company of Grupo Salinas (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 standard of living ; social value to improve community well-being; and environmental value by reducing the negative impact of its business activities. Created by a Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision-making forum for key executives of member companies. Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas does not hold any participation. The group of companies shares a common vision, values ​​and strategies to achieve 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 uncertainties that could cause actual results to differ materially from those projected. The other risks that could affect Total Play and its subsidiaries are presented in documents addressed to the securities authorities.

TOTAL PLAY TELECOMUNICACIONES, SAPI DE CV AND SUBSIDIARIES

CONSOLIDATED QUARTERLY INCOME STATEMENTS

(Millions of Mexican pesos)




















1T21


1Q22


Switch


$

%


$

%


$

%










Service revenue

6,356

100%


8,416

100%


2,060

32%










Cost of benefits

(1,627)

(26%)


(1,870)

(22%)


(243)

(15%)










Gross profit

4,729

74%


6,546

78%


1,817

38%










Overheads

(2,052)

(32%)


(2,818)

(33%)


(766)

(37%)










EBITDA

2,677

42%


3,728

44%


1,051

39%










Depreciation and amortization

(2,019)

(32%)


(2,752)

(33%)


(733)

(36%)

Other income (expenses) – Net

0%


0%


0%










Operating profit (loss)

658

ten%


976

12%


318

48%










Financial cost:









Interest income

14

0%


14

0%


0%

Accrued interest

(562)

(9%)


(914)

(11%)


(352)

(63%)

Other financial income (expenses) – Net

(43)

(1%)


(138)

(2%)


(95)

(221%)

Foreign exchange gain (loss) – Net

(274)

(4%)


742

9%


1,016

371%










Profit (loss) before provision for income tax

(207)

(3%)


680

8%


887

429%










Provision for income tax

(9)

(0%)


(203)

(2%)


(194)

(2156%)










Net profit (loss) for the period

(216)

(3%)


477

6%


693

321%










TOTAL PLAY TELECOMUNICACIONES, SAPI DE CV AND SUBSIDIARIES

CONSOLIDATED RESULTS

(Millions of Mexican pesos)













As of March 31,






2021



2022



Switch



$

%


$

%


$

%

Assets










CURRENT ASSETS










Cash and cash


46

0%


1,774

3%


1,728

3749%

Restricted cash in trust


1,097

2%


1,463

2%


366

33%

Customers-net


2,348

5%


4,461

6%


2,113

90%

Other receivables and recoverable taxes


3,667

7%


3,904

6%


237

6%

Inventories


1,601

3%


1,987

3%


386

24%

Prepaid expenses


410

1%


433

1%


23

6%

Total current assets


9,169

18%


14,022

20%


4,852

53%











NON-CURRENT ASSETS










Property, plant and equipment – Net


35 141

71%


48,816

70%


13,675

39%

-Net Asset Use Rights


3,896

8%


5,366

8%


1,470

38%

Other non-current assets


1,481

3%


1,632

2%


151

ten%

Total non-current assets


40,517

82%


55,814

80%


15,297

38%

Total assets


49,686

100%


69,836

100%


20,149

41%











Liabilities and equity










CURRENT LIABILITIES










Short-term financial debts


646

1%


2,901

4%


2,255

349%

Payables


7,635

15%


9,085

13%


1,450

19%

Other debts and taxes


2,319

5%


3,642

5%


1,323

57%

Derivative financial instruments


75

0%


573

1%


498

nm

Rental debts


1,466

3%


1,735

2%


269

18%

Total current liabilities


12,140

24%


17,936

26%


5,796

48%











LONG-TERM LIABILITIES










Long-term financial debts


26,857

54%


38,374

55%


11,517

43%

Payables


16

0%


4

0%


(12)

(75%)

Other long-term debts


108

0%


642

1%


534

493%

Rental debts


2,743

6%


4,069

6%


1,326

48%

Total long-term liabilities


29,725

60%


43,090

62%


13,365

45%

Total responsibilities


41,865

84%


61,026

87%


19,161

46%











EQUITY


7,822

16%


8,810

13%


988

13%

Total equity and liabilities


49,686

100%


69,836

100%


20,149

41%











TOTAL PLAY TELECOMUNICACIONES, SAPI DE CV AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Millions of Mexican pesos)











Years completed





March, 31st,





2021

2022

Operating activities:






(Loss) profit before provision for income tax




(207)

680

Items that do not require the use of resources:






Depreciation and amortization




2019

2,752

Social advantages




5

9

Items related to investing or financing activities:






Accrued interest




(14)

(14)

Accrued interest and other financial transactions




562

914

Valuation of derivative financial instruments




(139)

795





2,226

5,135

Resources (used in) generated by operations:






Unearned Customers and Revenue




29

(711)

Other receivables




(18)

18

Related parties, net




(46)

8

Taxes to be recovered




(211)

399

Inventories




20

(107)

Advanced payments




(3)

34

Payables




(375)

(227)

Other debts




164

(118)







Cash flow generated by operating activities




1,785

4,430







Investing activities:






Acquisition of property, plant and equipment




(3,838)

(5,138)

other assets




15

8

Interest received




14

14







Cash flows (used in) investing activities




(3,808)

(5,115)







Fundraising activities:






Loans received




1,310

(220)

Rental cash flow




(395)

(487)

Interest payment




(483)

(969)

Cash restricted in trust




174

(577)

Reverse factoring




(324)

545







Net cash flow generated by financing activities




282

(1,708)







Increase in cash and cash equivalents




(1,741)

(2,392)

Cash and cash equivalents at the beginning of the year




1,787

4,166







Cash and cash equivalents at the end of the year




46

1,774







SOURCE Total Play Telecomunicaciones, SAPI de CV

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