Axtel Reports 3Q11 Results

SAN PEDRO GARZA GARCIA, Mexico--(BUSINESS WIRE)-- Axtel, S.A.B. de C.V. (“AXTEL” or “the Company”), a leading Mexican fixed-line integrated telecommunications company, announced today its unaudited first quarter results ended September 30, 2011 ⁽¹⁾

For additional information, please contact Adrian de los Santos, Investor Relations Officer and Corporate Finance Director at IR@axtel.com.mx.

Highlights:

• AXTEL broadband subscribers’ base continued to grow at attractive and higher than market rates, with net additions of 31 thousand in the third quarter, or 8% higher than the previous quarter. The number of AXTEL X-tremo or FTTH customers also continued growing, now representing 8% of the 407 thousand total broadband subscribers’ base.
• International traffic revenues reported a relevant 24% increase compared to the previous quarter. This resulted from the Company’s ability to now terminate long-distance fixed-to-mobile traffic directly through mobile carriers in accordance with the June 2011 agreements signed with such operators.
• During the quarter, the Company’s EBITDA increased 10% compared to the same quarter a year earlier. This also represented an EBITDA margin increase of almost 300 basis points, reaching a level of 33.9% in this quarter. This improvement occurred despite the phasing-out of the contract with a large wholesale customer. Excluding this negative effect, EBITDA would have increased 14% year-over-year.

For a complete version of the 3Q11 Earnings Release, please visit: www.axtel.com.mx.

About AXTEL

AXTEL is a Mexican telecommunications company that provides local and long distance telephony, broadband Internet, data and built-to-suit communications solutions in 39 cities and long distance connectivity to business and residential customers in over 200 cities. AXTEL provides telecommunications services using a suite of technologies including FWA, WiMAX, copper, fiber optic, point to multipoint radios and traditional point to point microwave access, among others.

AXTELCPO trades on the Mexican Stock Exchange and is part of the IPC Index. AXTEL’s American Depositary Shares are eligible for trading in The PORTAL Market, a subsidiary of the NASDAQ Stock Market, Inc.

Visit AXTEL’s Investor Relations Center on www.axtel.com.mx.

CONTACT:

Axtel, S.A.B. de C.V.
Adrian de los Santos, +52(81) 8114-1226
Investor Relations
IR@axtel.com.mx

KEYWORDS:   United States  Mexico  North America  Central America  New York

INDUSTRY KEYWORDS:   Technology  Networks  Telecommunications  VoIP

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