Mexico’s Axtel Drops Most This Month on Third-Quarter Loss
Stock Chart for Axtel SAB de CV (AXTELCPO)
Axtel SAB, Mexico’s second-largest land-line telephone company, fell the most this month after reporting a net loss in the third quarter.
Axtel, based in San Pedro Garza Garcia, Mexico, slumped for the first time in three days, dropping 3.6 percent to 4.81 pesos in Mexico City trading, its biggest fall since Sept. 30. Today’s decline extends losses this month to 4.9 percent compared with a 9.6 percent gain for Mexico’s IPC index.
The company reported a third-quarter net loss yesterday of 1.02 billion pesos ($78 million) amid stagnant sales and declining telephone revenue, according to a regulatory filing. Axtel is studying a move into the pay television market and may expand its fiber-optic coverage, Chief Financial Officer Felipe Canales said today on a conference call.
“It was a big net loss,” Martin Lara, a telecommunications analyst at Corp. Actinver SAB in Mexico City, said today in a phone interview. The loss was “in line with expectations, but it’s still very big.”
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