Axtel, S.A.B. de C.V. Reports Fourth Quarter 2012 Results

  Axtel, S.A.B. de C.V. Reports Fourth Quarter 2012 Results

Business Wire

SAN PEDRO GARZA GARCIA, Mexico -- February 18, 2013

Axtel, S.A.B. de C.V. (“AXTEL” or “the Company”), a leading Mexican fixed-line
integrated telecommunications company, announced today its unaudited fourth
quarter results ended December 31, 2012^(1).

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

Highlights:

  *On January 31, 2013, AXTEL successfully completed the execution of its
    recapitalization plan, divesting 883 tower sites for $249 million, and
    exchanging existing debt for new secured and convertible debt and a cash
    payment. On a pro forma basis, as of December 31, 2012, AXTEL reduced its
    net debt leverage ratio from 4.0x to 2.4x.
  *During the fourth quarter, AXTEL reinforced its productivity initiatives
    by downsizing its organization in approximately 1,350 collaborators, which
    will be reflected in savings of approximately 15% on its personnel
    expenses. AXTEL will now have a leaner and more focused organization
    concentrated in the implementation of its key strategic initiatives.
  *On January 30, 2013, the Company launched its “AXTEL TV” pay television
    service in Mexico City, Guadalajara and Monterrey. This represents a key
    step in AXTEL´s competitive position in the mass market segment. AXTEL
    TV’s image quality and innovative features are the result of the capacity
    and reliability of the Company’s end-to-end fiber network.
  *AXTEL’s operating performance in the fourth quarter was negatively
    impacted by certain extraordinary expenses, as well as lost revenues due
    to the uncertainty surrounding the successful execution of its
    recapitalization plan. This revenue loss is expected to be gradually
    recovered as the recapitalization plan was successfully completed.

For a complete version of the 4Q12 Earnings Release, please visit:
www.axtel.com.mx

1) We are presenting financial information based on International Financial
Reporting Standards (IFRS) in nominal pesos for the following periods:

  *Consolidated income statement information for the three-month periods
    ending on December 31 and September 30, 2012, and December 31, 2011; and
    twelve-month period ending on December 31, 2012 and December 31, 2011, and
  *Balance sheet information as of December 31, 2012 and 2011; and September
    30, 2012.

About AXTEL

Axtel is a Mexican telecommunications company with a significant growth in the
broadband segment, and one of the leading companies in information and
communication technologies solutions in the corporate, financial and
government sectors. The Company serves all market segments -corporate,
financial, government, wholesale and residential with the most robust offering
of integrated communications services in Mexico. Its world-class network
consists of different access technologies like fiber optic, fixed wireless
access, point to point and point to multipoint links, in order to offer
solutions tailored to the needs of its customers.

AXTELCPO trades on the Mexican Stock Exchange since 2005. 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.
Investor Relations
Adrian de los Santos
+52(81) 8114-1226
IR@axtel.com.mx
 
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