ANNUAL INTEGRATED REPORT 2021
ANNUAL INTEGRATED REPORT 2021 | AXTEL
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The service segment portfolio for the business and government clients
includes advanced solutions for managed networks, collaboration
and information technology (IT) such as systems integration, cloud
services, cybersecurity, among others. On the other hand, the
connectivity solutions of the infrastructure unit for wholesale clients
or operators (including the services unit) include last-mile access,
IP transit, spectrum, fiber to the tower and fiber to the data center,
among others.
Axtel has the second largest fiber network in Mexico, with an
infrastructure of approximately 43,300 kilometers of fiber (including
11,600 kilometers of capacity), with which it has the capacity to
provide coverage to more than 90% of the Mexican market.
In addition to the two operating segments focused on the client, the
remaining operations of the Company are included in the "Unallocated
expenses" category to be included in the consolidated results of the
Company. This category includes expenses associated with centralized
functions, including procurement, supply chain and the Company's
senior management.
These operating segments are managed separately since the products
and services offered and the markets in which they are focused are
different. The resources are allocated to the operational segments
considering the strategies defined by the Company's Management.
Transactions between the operating segments are carried out at
market values.
The performance of the operating segments is measured based
on the Business Unit Contribution (BUC), defined as the operating
profit of each segment, including sales, costs per segment and direct
segment expenses, as included in internal financial reports reviewed
by the Chief Executive Officer.
The Company defines Adjusted EBITDA as the result of adding to the
operating profit (loss), depreciation and amortization, the impairment
of non-current assets and the adjusted EBITDA of the massive segment
that is presented as a discontinued operation in accordance with IFRS;
it is considered a useful measure of the operational performance of
the business since it provides a significant analysis of commercial
performance by excluding specific items reported separately due to
their nature or incidence. Income or interest expenses are not allocated
to reportable segments, since this activity is handled globally by
central treasury.
When projects are not directly attributed to a particular operating
segment, capital expenditure is allocated to each segment based on
the rate of future economic benefits estimated as a result of capital
expenditure.
Below is the consolidated financial information of the information
segments:
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