ANNUAL INTEGRATED REPORT 2021 slide image

ANNUAL INTEGRATED REPORT 2021

5 ANNUAL INTEGRATED REPORT 2021 | AXTEL We also launched Alestra Móvil, the first mobile virtual network operator (MVNO) focused exclusively on business customers in Mexico, with which we entered the mobility market seeking to enable companies to take their fixed capabilities to a mobile device, as well as enable third-party mobile projects through our platform as a mobile virtual enabler (MVNE). Along with these initiatives, we held talks to attract potential investors for Axtel or the Infrastructure Unit. The environment of uncertainty in Mexico and in the world, as well as adjustments in the plans of industry participants in the country, among others, have influenced the prolongation of this process. We maintained a disciplined approach to our finances to continue to improve the capital structure. Axtel's debt has consistently decreased over the past five years, accumulating a 41% reduction in net debt from 2016 to 2021. Throughout the year, and supported by a solid pre-tax cash flow of $53 million dollars (result of good collection and cautious investment analysis), we managed to reduce debt by 5% and mantain the net leverage ratio at 3.1 times. In addition, during the year we obtained two committed credit lines, over three years, for about $70 million dollars. With a stable performance for Axtel Networks, our Infrastructure Unit, and mixed results for Alestra, our Services Unit, in 2021, we reported an 8% reduction in revenue, reaching Ps. 11,389 million, while the Flow decreased 10%, reaching Ps. 3,793 million. At Alestra, the solid 11% growth in digital transformation services was mitigated by the drop in voice revenue stemming from lower volume due to the adoption of collaboration tools and, also, by the still challenging government segment. While, at Axtel Networks, revenues increased 1%, even without fully reflecting the growth opportunities that we expect to materialize with investments in next- generation mobile networks and the start-up of the multiple data centers currently under construction in Mexico. =
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