ANNUAL INTEGRATED REPORT 2021
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ANNUAL INTEGRATED REPORT 2021 | AXTEL
MANAGEMENT'S DISCUSSION AND ANALYSIS ON THE COMPANY'S
OPERATING RESULTS AND FINANCIAL SITUATION
Operating results for the years ended December 31, 2021, and December 31, 2020
Revenues
For the year ended December 31, 2021, total revenues were Ps. 11,389
million, an 8% decrease compared to 2020, mainly due to a 10% decline
in Alestra's revenues, partially mitigated by a 1% increase in Infrastructure
revenues.
The Company's revenues are derived from the following business units:
Infrastructure Business Unit ("Axtel Networks")
2021 revenues totaled Ps. 5,017 million, 1% higher than 2020, due to a 1%
increase in third-party revenues, mainly driven by a strong performance
of dark fiber contracts to mobile and wholesale customers. Revenues
coming from Alestra remained flat and represented 49% of total
Infrastructure Unit's revenues.
Services Business Unit ("Alestra")
Revenues for 2021 were Ps. 8,828 million; 10% lower compared to
2020; due to 4% and 33% declines in revenues from the Enterprise
and Government segments, respectively.
Enterprise segment. In 2021, revenues amounted Ps. 7,492
million, a 4% decline compared to 2020, due to a 7% decrease in
standard services, partially mitigated by an 11% increase in digital
transformation services revenues.
Standard Services. In 2021, revenues recorded Ps. 5,005
million, a 7% decrease compared to 2020, mainly due to a 23%
drop in voice revenues, as a result of its maturing technological
cycle and the adoption of collaboration solutions; as well as
a 2% decline in data and internet solutions and a 5% drop in
VPN & Ethernet, explained by a lower volume of services with
corporate clients, many of whom downsized their operations.
Value Added. 2021 revenues reached Ps. 998 million, 9% lower
than 2020, mainly due to a 12% decrease in managed services
revenues.
Digital Transformation. Revenues totaled Ps. 1,488 million, an
11% increase compared to 2020, driven by double-digit growth
in cloud, cybersecurity and managed applications services.
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