Here's a heads-up no number-cruncher can ignore: Total Play just dropped their financials for the second quarter of 2026, and it's a mixed bag from any angle you squint at it. On one hand, they wrangled in 121,572 new subscribers, proving their fiber optic network is one hell of a product. Folks in Mexico clearly want what they're laying down, which means something, folks, when the world can't stop talking about connectivity.
Subscription Climb But Revenue Scramble
Let's talk Total Play's strategy trade-offs. While the subscriber gains are impressive, revenue from services stumbled down 2% from last year's Ps.11,551 million to this year’s Ps.11,360 million. Now, you might think a leap in subscribers would equal a revenue boost, but hold your horses. The numbers took a hit because while the residential segment grew by 1%, enterprise revenue nosedived by 16%, thanks to some projects reaching the finish line too soon.
Fiber Advantage and Subscriber Dynamics
This swell in subscriber numbers is primarily fueled by Total Play leveraging its heavyweight fiber optic backbone to accommodate more customers without expanding its coverage area—it's a clever move, cost-effective, slick, even enviable. They’re sitting on 19.5 million homes passed by their network, up from 17.6 million a year ago, though penetration slid from 30.4% to 29.1% due to more homes being passed, diluting the percentage with newer expansions.
Capex Control and Financial Churn
EBITDA stood at Ps.5,074 million, a drop from last year’s Ps.5,399 million, pulling the EBITDA margin down to 45%. Don’t forget they had a 2% rise in total costs—improving service costs and higher overall expenses, fueled by heftier personnel and promo fees. Subtract Capex and interest, though, and they managed a decent Ps.769 million. That’s no small feat in a market where capital discipline is often more fantasy than reality.
Debt and Cash Strategies: Razor Sharp
But here's where Total Play earns kudos: they've slashed debt with cost by 5%. Yep, chopping liabilities seems to be a theme here—be it debt, lease liabilities, or trade payables, all taking noteworthy cuts. They’ve cleared US$31 million of Senior Secured Notes due 2028 and previously tackled US$56 million of notes due 2025. This financial trimming trims the paths for future financial resilience, even if they’ve ended up with a net loss of Ps.362 million this quarter.
“Reducing debt while managing OPEX and subscriber growth is like walking a tightrope, but if balanced, it leads to bullish stability.”
Looking Forward: Opportunity and Risk
Even though Total Play marked a net loss and a revenue dip, it’s not all doom and gloom. That stable fiber network keeps pulling subscribers like bears to honey. Although Average Revenue Per User (ARPU) took a nudging, slipping to Ps.580 from Ps.607, largely due to a rise in double-play over triple-play subscribers, it’s a reinvestment puzzle worth solving.
- Enterprise setbacks: concluded projects mean Total Play needs to reload deals smart.
- Subscriber base: growing, but the challenge is turning numbers into revenue.
Balance Sheet Considerations
Their net debt dropped to Ps.50,519 million, alongside a lower cash equivalent, due to debt repayment schedules. They've maneuvered hard amidst current assets dipping 10% and non-current following suit at 8%. Their performance screams prudent moves but begs new strategies to swing that performance pendulum back up next quarter.
In a nutshell, Total Play's diving into a critical phase where growth isn’t just about subscribers but making every peso work harder. In a telecommunications world bracing for faster speeds and higher demands, they've set the stage with fiber—now, they gotta fan the revenue flames with everything they’ve got.
