Total Play Reports Strong Financial Growth
Total Play Telecomunicaciones, S.A.P.I. de C.V. has announced an impressive 6% growth in EBITDA, reaching Ps.5,399 million in the second quarter of 2025. This growth highlights the company’s continued strength in the telecommunications sector, specifically within internet access, pay TV, and telephony services.
Highlights of the Financial Results
Gross Profit and Margin
The gross profit increased by 11% to Ps.9,921 million, signaling robust demand for the company's services. Additionally, the gross margin improved by six percentage points to an impressive 86%.
Operational Cash Flow
EBITDA less Capex and interest also saw positive results, growing by 9% to Ps.1,006 million. This marks the sixth consecutive quarter of solid cash generation for the company, reflecting effective financial management and operational efficiencies.
Driving Factors Behind Growth
Eduardo Kuri, CEO of Total Play, attributes the rise in revenue to significant improvements in subscriber satisfaction. The migration of their more than five million customers to next-generation symmetrical telecommunications services has been pivotal, providing superior quality and speed. The company has prioritized efficient resource use, emphasizing the expansion of their fiber optic network, which had optimal geographic coverage achieved in 2023, minimizing the need for additional infrastructure investment while enhancing user penetration.
Quarterly Performance Analysis
Revenue Insights
For the second quarter, Total Play reported revenues of Ps.11,551 million, a 4% increase compared to Ps.11,150 million from the previous year. This growth was primarily driven by an increase in residential revenues, particularly from satisfied customers appreciating the quality of service. Meanwhile, revenues from the enterprise sector decreased by 16% due to the completion of various projects.
Cost Management
Total costs and expenses rose only slightly, increasing by 2% to Ps.6,152 million. Such containment of costs, alongside effective financial discipline, has supported the rise in profitability this quarter. A notable reduction of service costs by 25% contributed significantly to the financial results.
Net Income and Future Outlook
Total Play reported a net income of Ps.180 million, a substantial rebound from a net loss of Ps.3,733 million reported during the same quarter in 2024. This turnaround speaks volumes about the strategic decisions implemented by the management and their positive reception among consumers.
Balance Sheet Strength
The company’s financial health remains robust, with total liabilities reported at Ps.86,377 million and assets increasing to Ps.105,410 million. The ongoing investments in infrastructure and technology ensure that Total Play is well-positioned to capitalize on demand growth in the telecommunications sector.
Querencia for Growth
Total Play maintains its strong commitment to delivering high-quality services and exploring new growth opportunities. The management is focused on leveraging its advanced fiber optic infrastructure and enhancing service features, setting the stage for continued success in the coming quarters.
About Total Play
Total Play is a leading triple play service provider, emphasizing innovation and quality in its telecommunications services. Keeping pace with industry trends ensures they remain a competitive force in the market.
Frequently Asked Questions
What are the key financial results for Total Play in Q2 2025?
Total Play reported a 6% increase in EBITDA to Ps.5,399 million and a net income of Ps.180 million.
How did Total Play increase its gross profit margin?
The company improved its gross profit margin by enhancing operational efficiencies and delivering high-quality services, leading to increased customer satisfaction.
What factors contributed to Total Play's revenue growth?
Revenue growth was driven by increasing satisfaction among residential subscribers and migration to next-generation services.
What strategic initiatives is Total Play undertaking?
Total Play is focusing on efficient resource usage and further optimizing its fiber optic network without significant infrastructure investment.
What is the outlook for Total Play based on current performance?
With a strong financial performance and ongoing focus on service quality, Total Play is well-positioned for sustained future growth.
