Technology
KYNDRYL REPORTS FOURTH QUARTER AND FULL-YEAR 2025 RESULTS
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12 months agoon
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Revenues for the quarter ended March 31, 2025 total $3.8 billion, pretax income is $118 million, net income is $68 million, adjusted EBITDA is $698 million, and adjusted pretax income is $185 millionFiscal year 2025 revenues total $15.1 billion, pretax income is $435 million, net income is $252 million, adjusted EBITDA is $2.5 billion, and adjusted pretax income is $482 millionSignings for fiscal year 2025 were a record $18.2 billion, representing a year-over-year increase of 46%Company provides fiscal year 2026 outlook for positive constant-currency revenue growth, at least $725 million of adjusted pretax income and approximately $550 million of adjusted free cash flow
NEW YORK, May 7, 2025 /PRNewswire/ — Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today released financial results for the quarter ended March 31, 2025, the fourth quarter of its 2025 fiscal year.
“Fiscal 2025 was another year of strong execution on our strategy. In addition to returning to constant-currency revenue growth in the fourth quarter, we strengthened our leadership in innovative mission-critical technology services. We expanded our capabilities in cloud, modernization, applications, AI and security, and we further differentiated our services with Kyndryl Bridge,” said Kyndryl Chairman and Chief Executive Officer Martin Schroeter.
“Our fiscal year 2026 outlook for free cash flow growth, earnings growth and constant-currency revenue growth reinforces our confidence to deliver our fiscal year 2028 objectives. Additionally, our ongoing share repurchase program reflects our commitment to returning capital to shareholders, and underscores our strong performance and confidence in the future,” Mr. Schroeter said.
Results for the Fiscal Fourth Quarter Ended March 31, 2025
For the fourth quarter, Kyndryl reported revenues of $3.8 billion, a year-over-year decline of 1% on a reported basis and a year-over-year increase of 1.3% in constant currency. The Company reported pretax income of $118 million, compared to a pretax loss of $4 million in the fourth quarter of 2024. Net income was $68 million, or $0.28 per diluted share, in the quarter, compared to a net loss of $45 million, or ($0.20) per diluted share, in the prior-year period. Cash flow from operations was $581 million.
Adjusted pretax income was $185 million, a 510% increase compared to adjusted pretax income of $30 million in the prior-year period, reflecting contributions from Kyndryl’s three-A initiatives, offset by the contractually required increase in IBM software costs. Adjusted net income was $126 million, or $0.52 per diluted share, compared to an adjusted net loss in the prior-year period. Adjusted EBITDA was $698 million, a 23% year-over-year increase. Adjusted free cash flow was $335 million in the quarter.
Results for the Fiscal Year Ended March 31, 2025
For the fiscal year ended March 31, 2025, Kyndryl reported revenues of $15.1 billion, a year-over-year decline of 6% and 4% in constant currency. The year-over-year constant-currency revenue decline reflects the Company’s progress in reducing inherited no-margin and low-margin third-party content in customer contracts. The Company reported pretax income of $435 million, compared to a pretax loss of $168 million in fiscal year 2024. Net income was $252 million, or $1.05 per diluted share, in the year, compared to a net loss of $340 million, or ($1.48) per diluted share, in the prior year. Cash flow from operations was $942 million.
Adjusted pretax income was $482 million, a 192% increase compared to adjusted pretax income of $165 million in the prior-year period, reflecting contributions from Kyndryl’s three-A initiatives, offset by the contractually required increase in IBM software costs and workforce rebalancing charges. Adjusted net income was $285 million, or $1.19 per diluted share, compared to an adjusted net loss in the prior-year period. Adjusted EBITDA was $2.5 billion, a 6% year-over-year increase. Adjusted free cash flow was $446 million in fiscal year 2025.
Signings for fiscal year 2025 were a record $18.2 billion, representing a year-over-year increase of 46%. The Company’s global signings growth spanned a broad range of industries and included a record 55 contracts in excess of $50 million.
“We delivered strong signings growth in fiscal year 2025, with attractive margins built into these signings. This demonstrates the potential our business has to continue to grow our revenue, increase our earnings and generate cash flow. Our Kyndryl Consult and managed services capabilities align with enterprise customers’ technology needs and are driving incremental, profitable growth opportunities,” said David Wyshner, Kyndryl’s Chief Financial Officer.
Recent Developments
Alliances initiative – In the fourth quarter and the full year, Kyndryl recognized $375 million and $1.2 billion, respectively, in revenue tied to cloud hyperscaler alliances. These amounts are more than double prior-year levels and allowed the Company to exceed its hyperscaler revenue target of nearly $1 billion in fiscal year 2025.Advanced Delivery initiative – The AI-enabled Kyndryl Bridge operating platform is further enhancing the world-class technology services the Company provides and creating additional revenue opportunities. It has also helped Kyndryl free up more than 13,000 delivery professionals. This has generated annualized savings of approximately $775 million as of year-end, ahead of the Company’s $750 million fiscal 2025 year-end goal.Accounts initiative – Kyndryl continued to address elements of contracts with substandard margins, bringing the total impact from this initiative to $900 million of annualized benefits, surpassing the Company’s $850 million fiscal 2025 year-end objective.Strong projected margin on recent signings – In the quarter, projected pretax income margins associated with total signings were in the high-single-digit range, in line with recent quarters, reflecting the Company’s focus on margin expansion.Double-digit growth in Kyndryl Consult – Kyndryl Consult revenues grew 45% year-over-year in the fourth quarter and grew 26% in fiscal 2025. Kyndryl Consult signings grew 37% year-over-year in the fourth quarter and grew 47% in fiscal 2025.Higher cash balance – The Company ended fiscal year 2025 with cash of $1.8 billion and debt of $3.2 billion, resulting in a net debt balance of $1.4 billion.Share repurchases – The Company repurchased 1.8 million shares of its common stock at a cost of $64 million in the fourth quarter, under the $300 million share repurchase program authorized in November 2024.
Fiscal Year 2026 Outlook
Kyndryl is providing the following outlook for its fiscal year 2026, which runs from April 2025 to March 2026:
Adjusted pretax income of at least $725 million, representing a year-over-year increase of at least $243 million.Adjusted EBITDA margin of approximately 18%, representing a year-over-year increase of approximately 130 basis points.Adjusted free cash flow of approximately $550 million, reflecting the Company’s projected adjusted pretax income less cash taxes.
The Company’s earnings and cash flow outlook only assumes constant-currency revenue growth of 1%.
Earnings Webcast
Kyndryl’s earnings call for the fourth fiscal quarter is scheduled to begin at 8:30 a.m. ET on May 8, 2025. The live webcast can be accessed by visiting investors.kyndryl.com on Kyndryl’s investor relations website. A slide presentation will be made available on Kyndryl’s investor relations website before the call on May 8, 2025. Following the event, a replay will be available via webcast for twelve months at investors.kyndryl.com.
About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world’s largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.
Forward-Looking and Cautionary Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements concerning the Company’s plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, including without limitation the outlook and financial objectives in this press release (which does not assume any future acquisitions or divestitures), are forward-looking statements. Such forward-looking statements often contain words such as “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “objectives,” “opportunity,” “plan,” “position,” “predict,” “project,” “should,” “seek,” “target,” “will,” “would” and other similar words or expressions or the negative thereof or other variations thereon. Forward-looking statements are based on the Company’s current assumptions and beliefs regarding future business and financial performance.
The Company’s actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others: failure to attract new customers, retain existing customers or sell additional services to customers; failure to meet growth and productivity objectives; competition; impacts of relationships with critical suppliers and partners; failure to address and adapt to technological developments and trends; inability to attract and retain key personnel and other skilled employees; impact of economic, political, public health and other conditions; damage to the Company’s reputation; inability to accurately estimate the cost of services and the timeline for completion of contracts; service delivery issues; the Company’s ability to successfully manage acquisitions and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities and higher debt levels; failure of the Company’s intellectual property rights to prevent competitive offerings and the failure of the Company to obtain, retain and extend necessary licenses; the impairment of our goodwill or long-lived assets; risks relating to cybersecurity, data governance and privacy; risks relating to non-compliance with legal and regulatory requirements; adverse effects from tax matters; legal proceedings and investigatory risks; the impact of changes in market liquidity conditions and customer credit risk on receivables; the Company’s pension plans; the impact of currency fluctuations; and risks related to the Company’s common stock and the securities market.
Additional risks and uncertainties include, among others, those risks and uncertainties described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024, and may be further updated from time to time in the Company’s subsequent filings with the Securities and Exchange Commission. Any forward-looking statement in this press release speaks only as of the date on which it is made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In this release, certain amounts may not add due to the use of rounded numbers; percentages presented are calculated based on the underlying amounts. Forecasted amounts are based on currency exchange rates as of April 2025.
Non-GAAP Financial Measures
In an effort to provide investors with additional information regarding its results, the Company has provided certain metrics that are not calculated based on generally accepted accounting principles (GAAP), such as constant-currency results, adjusted EBITDA, adjusted pretax income, adjusted net income, adjusted EPS, adjusted EBITDA margin, adjusted pretax margin, adjusted net margin, net debt, adjusted operating cash flow and adjusted free cash flow. Such non-GAAP metrics are intended to supplement GAAP metrics, but not to replace them. The Company’s non-GAAP metrics may not be comparable to similarly titled metrics used by other companies. Definitions of non-GAAP metrics and reconciliations of non-GAAP metrics for historical periods to GAAP metrics are included in the tables in this release.
A reconciliation of forward-looking non-GAAP financial information is not included in this release because the Company is unable to predict with reasonable certainty some individual components of such reconciliation without unreasonable effort. These items are uncertain, depend on various factors and could have a material impact on future results computed in accordance with GAAP.
Investor Contact:
investors@kyndryl.com
Media Contact:
press@kyndryl.com
Table 1
CONSOLIDATED INCOME STATEMENT
(in millions, except per share amounts)
Three Months Ended
Year Ended
March 31,
March 31,
2025
2024
2025
2024
Revenues
$
3,800
$
3,850
$
15,057
$
16,052
Cost of services
$
2,975
$
3,134
$
11,914
$
13,189
Selling, general and administrative expenses
640
714
2,591
2,773
Workforce rebalancing charges
23
23
114
138
Transaction-related costs (benefits)
2
(58)
(125)
(46)
Interest expense
23
29
100
122
Other expense
18
11
27
45
Total costs and expenses
$
3,682
$
3,854
$
14,622
$
16,221
Income (loss) before income taxes
$
118
$
(4)
$
435
$
(168)
Provision for income taxes
50
41
184
172
Net income (loss)
$
68
$
(45)
$
252
$
(340)
Earnings per share data
Basic earnings (loss) per share
$
0.30
$
(0.20)
$
1.09
$
(1.48)
Diluted earnings (loss) per share
0.28
(0.20)
1.05
(1.48)
Weighted-average basic shares outstanding
231.4
230.2
231.5
229.2
Weighted-average diluted shares outstanding
241.7
230.2
239.1
229.2
Table 2
SEGMENT RESULTS
AND SELECTED BALANCE SHEET INFORMATION
(dollars in millions)
Three Months Ended March 31,
Year-over-Year Growth
As
Constant
Segment Results
2025
2024
Reported
Currency
Revenue
United States
$
969
$
990
(2 %)
(2 %)
Japan
605
584
4 %
6 %
Principal Markets1
1,273
1,350
(6 %)
(3 %)
Strategic Markets1
953
926
3 %
8 %
Total revenue
$
3,800
$
3,850
(1 %)
1 %
Adjusted EBITDA2
United States
$
228
$
174
Japan
102
83
Principal Markets
231
166
Strategic Markets
161
166
Corporate and other3
(24)
(24)
Total adjusted EBITDA
$
698
$
566
Year Ended March 31,
Year-over-Year Growth
As
Constant
Segment Results
2025
2024
Reported
Currency
Revenue
United States
$
3,876
$
4,295
(10 %)
(10 %)
Japan
2,358
2,344
1 %
6 %
Principal Markets1
5,206
5,479
(5 %)
(4 %)
Strategic Markets1
3,617
3,934
(8 %)
(5 %)
Total revenue
$
15,057
$
16,052
(6 %)
(4 %)
Adjusted EBITDA2
United States
$
725
$
781
Japan
390
361
Principal Markets
886
677
Strategic Markets
606
642
Corporate and other3
(90)
(95)
Total adjusted EBITDA
$
2,516
$
2,367
March 31,
March 31,
Balance Sheet Data
2025
2024
Cash and equivalents
$
1,786
$
1,553
Debt (short-term and long-term)
3,172
3,238
1
Principal Markets is comprised of Kyndryl’s operations in Canada, France, Germany, India, Italy, Spain/Portugal and the United Kingdom/Ireland. Strategic Markets is comprised of Kyndryl’s operations in all other geographic locations. Kyndryl’s operations in Australia/New Zealand transitioned from Principal Markets to Strategic Markets in the quarter ended June 30, 2024; historical segment information has been updated to reflect this change.
2
In the three months ended March 31, 2025, amounts include workforce rebalancing charges of $2 million in United States, $2 million in Japan, $7 million in Principal Markets, and $12 million in Strategic Markets. In the year ended March 31, 2025, amounts include workforce rebalancing charges of $41 million in United States, $6 million in Japan, $23 million in Principal Markets, and $45 million in Strategic Markets.
3
Represents net amounts not allocated to segments.
Table 3
CONSOLIDATED STATEMENT OF CASH FLOWS
(dollars in millions)
Year Ended March 31,
2025
2024
Cash flows from operating activities:
Net income (loss)
$
252
$
(340)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization
Depreciation of property, equipment and capitalized software
660
834
Depreciation of right-of-use assets
327
319
Amortization of transition costs and prepaid software
1,278
1,256
Amortization of capitalized contract costs
420
531
Amortization of acquisition-related intangible assets
30
30
Stock-based compensation
100
95
Deferred taxes
(1)
(13)
Net (gain) loss on asset sales and other
(152)
43
Change in operating assets and liabilities:
Deferred costs (excluding amortization)
(1,762)
(1,569)
Right-of-use assets and liabilities (excluding depreciation)
(314)
(335)
Workforce rebalancing liabilities
(25)
(38)
Receivables
289
11
Accounts payable
(89)
(305)
Taxes
(1)
(2)
Other assets and other liabilities
(71)
(63)
Net cash provided by operating activities
$
942
$
454
Cash flows from investing activities:
Capital expenditures
$
(605)
$
(651)
Proceeds from disposition of property and equipment
83
138
Acquisitions and divestitures, net of cash acquired
139
—
Other investing activities, net
(20)
(40)
Net cash used in investing activities
$
(404)
$
(553)
Cash flows from financing activities:
Debt repayments
$
(148)
$
(644)
Proceeds from issuance of debt, net of debt issuance costs
—
494
Common stock repurchases
(93)
—
Common stock repurchases for tax withholdings
(45)
(22)
Other financing activities, net
—
2
Net cash used in financing activities
$
(286)
$
(170)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
$
(16)
$
(37)
Net change in cash, cash equivalents and restricted cash
$
235
$
(306)
Cash, cash equivalents and restricted cash at beginning of period
$
1,554
$
1,860
Cash, cash equivalents and restricted cash at end of period
$
1,789
$
1,554
Supplemental data
Income taxes paid, net of refunds received
$
149
$
191
Interest paid on debt
$
119
$
118
Net cash provided by operating activities was $581 million in the three months ended March 31, 2025 and $361 million in the nine months ended December 31, 2024.
Table 4
NON-GAAP METRIC DEFINITIONS AND RECONCILIATIONS
(dollars in millions, except signings)
We report our financial results in accordance with GAAP. We also present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe it enhances investors’ visibility to management decisions and their impacts on operational performance; enables better comparison to peer companies; and allows us to provide a long-term strategic view of the business going forward. Moreover, we use certain of these non-GAAP financial metrics in measuring performance under our executive compensation plans.
Constant-currency information compares results between periods as if exchange rates had remained constant period over period. We define constant-currency revenues as total revenues excluding the impact of foreign exchange rate movements and use it to determine the constant-currency revenue growth on a year-over-year basis. Constant-currency revenues are calculated by translating current period revenues using corresponding prior-period exchange rates.
Adjusted pretax income is defined as pretax income excluding transaction-related costs and benefits, charges related to ceasing to use leased / fixed assets, charges related to lease terminations, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, amortization of acquisition-related intangible assets, workforce rebalancing charges incurred prior to March 31, 2024, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries. Adjusted pretax margin is calculated by dividing adjusted pretax income by revenue.
Adjusted EBITDA is defined as net income (loss) excluding net interest expense, income taxes, depreciation and amortization (excluding depreciation of right-of-use assets and amortization of capitalized contract costs), charges related to ceasing to use leased / fixed assets, charges related to lease terminations, transaction-related costs and benefits, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, workforce rebalancing charges incurred prior to March 31, 2024, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
Adjusted net income is defined as adjusted pretax income less the reported provision for income taxes, minus or plus the tax effect of the non-GAAP adjustments made to calculate adjusted pretax income, and excluding exceptional items impacting the reported provision for income taxes. Adjusted net margin is calculated by dividing adjusted net income by revenue.
Adjusted earnings per share (EPS) is defined as adjusted net income divided by diluted weighted average shares outstanding to reflect shares that are dilutive or anti-dilutive based on the amount of adjusted net income. The weighted average common shares outstanding used to calculate adjusted earnings (loss) per share will differ from such shares used to calculate diluted earnings (loss) per share (GAAP) when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other.
Adjusted free cash flow is defined as cash flows from operating activities (GAAP) after adding back transaction-related payments, charges related to lease terminations, payments related to workforce rebalancing charges incurred prior to March 31, 2024, and significant litigation payments (collectively referred to as adjusted operating cash flow), less net capital expenditures. Management uses adjusted operating cash flow and adjusted free cash flow as measures to evaluate our operating results, plan strategic investments and assess our ability and need to incur and service debt. We believe adjusted operating cash flow and adjusted free cash flow are useful supplemental financial measures to aid investors in assessing our ability to pursue business opportunities and investments and to service our debt. Adjusted operating cash flow and adjusted free cash flow are financial measures that are not recognized under U.S. GAAP and should not be considered as an alternative to cash flows from operations or liquidity derived in accordance with U.S. GAAP.
Signings are defined by Kyndryl as an initial estimate of the value of a customer’s commitment under a contract. The calculation involves estimates and judgments to gauge the extent of a customer’s commitment. We calculate this based on various considerations including the type and duration of the agreement as well as the presence of termination charges or wind-down costs. Contract extensions and increases in scope are treated as signings only to the extent of the incremental new value. Signings can vary over time due to a variety of factors including, but not limited to, the timing of signing a small number of larger outsourcing contracts, as well as the length of those contracts. The conversion of signings into revenue may vary based on the types of services and solutions, customer decisions and other factors, which may include, but are not limited to, macroeconomic environment or external events. Management uses signings as a tool to monitor the performance of the business including the business’ ability to attract new customers and sell additional scope into our existing customer base.
Reconciliation of net income (loss)
to adjusted pretax income,
adjusted EBITDA, adjusted net
Three Months Ended
Year Ended
income (loss) and adjusted EPS
March 31,
March 31,
(in millions, except per share amounts)
2025
2024
2025
2024
Net income (loss) (GAAP)
$
68
$
(45)
$
252
$
(340)
Provision for income taxes
50
41
184
172
Pretax income (loss) (GAAP)
$
118
$
(4)
$
435
$
(168)
Workforce rebalancing charges incurred prior to March 31, 2024
—
23
—
138
Charges related to ceasing to use leased/fixed assets and lease terminations
19
14
48
39
Transaction-related costs (benefits)1
2
(58)
(125)
(46)
Stock-based compensation expense
22
22
100
95
Amortization of acquisition-related intangible assets
7
7
30
30
Other adjustments2
17
25
(6)
78
Adjusted pretax income (non-GAAP)
$
185
$
30
$
482
$
165
Interest expense
23
29
100
122
Depreciation of property, equipment and capitalized software3
186
195
656
824
Amortization of transition costs and prepaid software
304
311
1,278
1,256
Adjusted EBITDA (non-GAAP)
$
698
$
566
$
2,516
$
2,367
Net income margin
1.8 %
(1.2) %
1.7 %
(2.1) %
Adjusted EBITDA margin
18.4 %
14.7 %
16.7 %
14.7 %
Adjusted pretax income (non-GAAP)
$
185
$
30
$
482
$
165
Provision for income taxes (GAAP)
(50)
(41)
(184)
(172)
Tax effect of non-GAAP adjustments
(9)
9
(14)
(18)
Adjusted net income (loss) (non-GAAP)
$
126
$
(2)
$
285
$
(25)
Diluted weighted average shares outstanding for calculating adjusted EPS
241.7
230.2
239.1
229.2
Diluted earnings (loss) per share (GAAP)
$
0.28
$
(0.20)
$
1.05
$
(1.48)
Adjusted earnings (loss) per share (non-GAAP)
$
0.52
$
(0.01)
$
1.19
$
(0.11)
1
Kyndryl’s reported results for the year ended March 31, 2025 include a transaction-related gain of $145 million pretax ($138 million after-tax) related to the Company’s divestiture of its Securities Industry Services platform in Canada. The divestiture reduced the Company’s reported revenue from the divestiture date forward.
2
Other adjustments represent pension costs other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits, and currency impacts of highly inflationary countries.
3
Amount for the year ended March 31, 2024 excludes $10 million of expense that is included in transaction-related costs and benefits.
Reconciliation of cash flow from operations
Three Months Ended
Year Ended
to adjusted operating cash flow and
March 31,
March 31,
adjusted free cash flow (in millions)
2025
2024
2025
2024
Cash flows from operating activities (GAAP)
$
581
$
145
$
942
$
454
Plus: Transaction-related payments (benefits)
(19)
(6)
(14)
106
Plus: Workforce rebalancing payments related to
charges incurred prior to March 31, 2024
—
34
25
176
Plus: Significant litigation payments
1
6
15
61
Plus: Payments related to lease terminations
—
—
—
7
Adjusted operating cash flow (non-GAAP)
$
563
$
179
$
968
$
804
Less: Net capital expenditures
(228)
(199)
(522)
(513)
Adjusted free cash flow (non-GAAP)
$
335
$
(20)
$
446
$
291
Three Months Ended
Year Ended
March 31,
March 31,
Signings (in billions)
2025
2024
2025
2024
Signings1
$
5.5
$
3.6
$
18.2
$
12.5
1
Signings for the three months ended March 31, 2025 increased by 53%, and 55% in constant currency, compared to the three months ended March 31, 2024. Signings for the year ended March 31, 2025 increased by 46%, and 48% in constant currency, compared to the year ended March 31, 2024.
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SOURCE Kyndryl
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SEOUL, South Korea, April 24, 2026 /PRNewswire/ — SK Group announced it will collaborate with Vietnam to build the country’s artificial intelligence (AI) industry ecosystem and develop core AI infrastructure.
At the Korea–Vietnam Business Forum held in Hanoi on April 23, SK Group signed separate memoranda of understanding (MOUs) with the Nghe An Provincial Government and Vietnam’s National Innovation Center (NIC) to foster AI ecosystem development.
The signing ceremony was held in the presence of Kim Jung-kwan, Minister of Trade, Industry and Resources of Korea, and Ngo Van Tuan, Minister of Finance of Vietnam.
The Memorandum of Understanding (MOU) between the Nghe An Provincial People’s Committee and SK Group was signed by Vo Trong Hai, Chairman of the Nghe An Provincial People’s Committee; Choo Hyeong-wook, President & CEO of SK Innovation; and Jung Jai-hun, President & CEO of SK Telecom.
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Chey Tae-won, Chairman of SK Group and Chairman of the Korea Chamber of Commerce and Industry (KCCI), also attended the ceremony.
Earlier, at the Korea–Vietnam Summit, the two countries agreed to expand cooperation in future growth sectors such as AI, semiconductors, and energy. SK Group’s MOUs with Vietnam represent this bilateral cooperation being put into action by the private sector.
Through these partnerships, SK Group plans to support Vietnam’s growth as a key partner in its national AI strategy. In addition, building on AI data center development and stable power supply, SK Group is expected to lay the groundwork for the first overseas expansion of its “Korean-style AI full-stack” model, linking AI model development and validation with the rollout of industry-specific AI services.
Joint AIDC feasibility study in Nghe An linked to the Quynh Lap LNG Power Project
SK Innovation and SK Telecom signed an MOU with the Nghe An provincial government to jointly explore developing an AIDC and related infrastructure projects in the region. Nghe An is a major economic hub in north-central Vietnam and has emerged as a fast-growing region for manufacturing, energy and advanced industries, supported by its port and logistics infrastructure.
SK Innovation will explore broad cooperation opportunities in energy solutions, including supplying electricity to the data center and building dedicated generation facilities connected to the Quynh Lap LNG Power Project, for which it was recently selected as the developer.
SK Telecom plans to review options for developing, building, and operating the AIDC while also seeking to secure global demand. The Nghe An provincial government agreed to discuss support measures to help advance the partnership, including permits, administrative procedures, inter-ministerial coordination and incentive programs.
In February, SK Innovation was selected as a developer for the Quynh Lap LNG power project in Nghe An Province, together with PV Power, a power generation subsidiary of Vietnam’s state-owned oil and gas group PVN, and local company NASU. The project is a large-scale energy infrastructure initiative that includes the development of a 1,500-MW gas-fired combined cycle power plant, an LNG terminal, and a dedicated port, with construction scheduled to begin in 2027 and completion targeted for 2030. From the proposal stage, SK Innovation also presented a model to foster high value-added industries by integrating SK Group’s AI and semiconductor capabilities in areas near the power plant, thereby laying the foundation for the current partnership.
At the forum, the Nghe An government also presented the SK Innovation consortium with the Investment Registration Certificate (IRC) for the Quynh Lap Power Project, reaffirming its commitment to the development.
“Drawing on SK Group’s experience in operating large-scale power generation and diverse energy solution businesses, we will ensure the successful development of the local power infrastructure,” said Choo Hyeong-wook, President & CEO of SK Innovation, during a presentation titled “Vietnam’s Economic Leap through AI + Energy Innovation.”
Cooperation with NIC to Build Vietnam’s AI Ecosystem
SK Telecom and SK Innovation also signed a comprehensive MOU with Vietnam’s NIC to support the development of the country’s AI ecosystem.
The two sides agreed to cooperate on AIDC development, energy infrastructure development and the establishment of policy and institutional frameworks to foster the AI industry.
Under the agreement, SK Telecom will support AI ecosystem development in Vietnam through technology collaboration and investment promotion, and SK Innovation will provide energy solutions for AIDCs and related industries. The NIC will provide institutional support, such as coordinating with government agencies, improving regulations and developing policy, while also identifying and connecting local partners to facilitate project execution.
Established in 2019 by the Vietnamese government, NIC serves as the country’s national innovation hub, leading initiatives in AI, semiconductors and investment promotion. SK Group has maintained a close partnership with NIC, including a previous $30 million contribution toward its establishment.
Jung Jai-hun, President and CEO of SK Telecom, said, “AI data centers are key infrastructure that underpins the growth of the AI industry. Building on SK Group’s accumulated capabilities in the development, construction, and operation of AI data centers, we will further refine a collaboration model tailored to the Vietnamese market.”
First Overseas Expansion of Chairman Chey Tae-won’s “AI Full-Stack Provider” Vision
This partnership in Vietnam is significant as it could mark SK Group’s first overseas expansion of the “AI full-stack provider” strategy, integrating capabilities in AIDC, power, and energy solutions.
Chairman Chey Tae-won has consistently articulated his vision of transforming SK Group into an “AI full-stack provider.” Leveraging SK Group’s strengths across the AI value chain—including semiconductors, data centers, power and energy solutions, and AI services—the Group aims to build the most efficient AI infrastructure model.
Under this vision, SK Group is advancing the development of the 100-MW hyperscale “SK AI Data Center Ulsan,” targeted for completion in 2027. The Group has also been laying the groundwork for Korea to emerge as an Asia-Pacific AI hub by engaging in discussions with OpenAI on collaboration for AI data center development in Korea.
Ahead of the Korea–Vietnam Business Forum, Chairman Chey Tae-won said at a business roundtable, “AI will play a critical role in Vietnam’s continued growth. SK Group has a portfolio spanning the entire AI ecosystem—from energy and semiconductors to AI models and applications—and we will leverage this to make tangible contributions to the development of Vietnam’s AI industry.”
About SK Telecom
SK Telecom has been leading the growth of the mobile industry since 1984. Now, it is taking customer experience to new heights by extending beyond connectivity. By placing AI at the core of its business, SK Telecom is rapidly transforming into an AI company with a strong global presence. It is focusing on driving innovations in areas of AI Infrastructure, AI Transformation (AIX) and AI Service to deliver greater value for industry, society, and life.
For more information, please contact skt_press@sk.com or visit our LinkedIn page www.linkedin.com/company/sk-telecom.
About SK Innovation
Founded in 1962 as Korea Oil Corporation, SK Innovation has been at the forefront of Korea’s energy industry for over six decades. The company has pioneered numerous milestones, including Korea’s first overseas oil field development, the vertical integration of its energy and chemical businesses, the nation’s first private LNG import, and a strategic entry into the electric vehicle battery business.
Now, SK Innovation has reached a transformative turning point in its journey to become a Comprehensive Global Energy Company. Extending beyond its traditional oil business to encompass the entire energy value chain -spanning LNG & Power, Renewable Energy, and Energy Solutions- the company is driving global expansion, including in Vietnam.
For more information, please visit the official SK Innovation website at www.skinnovation.com.
View original content:https://www.prnewswire.com/apac/news-releases/sk-group-establishes-foundation-for-ai-collaboration-with-vietnam-302752442.html
SOURCE SK Group; SK Telecom
Technology
Ace Green Recycling, Inc. and Athena Technology Acquisition Corp. II Announce $32 Million PIPE Investment to Support Proposed Business Combination
Published
1 hour agoon
April 24, 2026By
Investment led by seasoned sector-focused institutional investors supports development of Ace’s Texas facility and international operations
HOUSTON, April 24, 2026 /PRNewswire/ — Ace Green Recycling, Inc. (“Ace” or the “Company”), a leading provider of sustainable battery recycling technology solutions, and Athena Technology Acquisition Corp. II (“ATEK II” or “Athena”), a publicly traded special purpose acquisition company, today announced that they have entered into securities purchase agreements with certain investors for an aggregate $32 million private investment in public equity (“PIPE”) financing to support their previously-announced proposed business combination (the “Proposed Business Combination”), with the common stock of the combined company expected to be listed on the Nasdaq Stock Market under the ticker “AGXI” following the consummation of the Proposed Business Combination.
The PIPE financing includes participation from sector-focused institutional investors, and is expected to support Ace’s differentiated recycling platform for lithium (nickel-manganese-cobalt & lithium iron phosphate) and lead batteries and its role in enabling domestic supply chains for critical battery materials supporting a circular economy for batteries. The financing is a key milestone toward the completion of the Proposed Business Combination and supports the Company’s strategy to scale its U.S. footprint, global supply chain management platform, and commercialize its next-generation battery recycling technology.
“This investment accelerates our mission to redefine battery recycling at a global scale,” said Ace CEO Nishchay Chadha. “At Ace, we are deploying GREENLEAD® and LithiumFirst™ as a new standard – fully electrified, Scope 1 emissions-free solutions designed to replace legacy processes and unlock a cleaner supply chain for critical materials. We believe that the future of electrification depends on how efficiently and sustainably we recover these resources, and this milestone brings us meaningfully closer to that future.”
Concurrent with and contingent upon the closing of the Proposed Business Combination, Ace expects to receive approximately $32 million in gross proceeds from the PIPE financing before transaction expenses. The Company expects to use these proceeds primarily to fund capital expenditures related to the development of its Texas recycling facility as well as for general corporate purposes, including supporting the expansion of operations and to fund the purchase of other companies , as described in the registration statement on Form S-4 most recently filed with the Securities and Exchange Commission by Athena and Ace on March 24, 2026.
We believe that investor participation in this PIPE reflects confidence in Athena’s ability to bring together exceptional talent and partner with high-quality companies through complex transactions and the public market process. We also believe that Ace is well positioned to support a more resilient domestic supply chain for critical battery materials, and this marks an important step toward closing the Proposed Business Combination,” said Isabelle Freidheim, Chairman and Chief Executive Officer of Athena
Advisors
Rimon P.C. is serving as legal counsel to Ace. Latham & Watkins LLP is serving as legal counsel to ATEK II.
About Ace Green Recycling
Ace Green Recycling, Inc., incorporated in Delaware, is an innovative battery recycling technology platform offering sustainable end-of-life solutions. It has deployed modular, Scope 1 carbon emissions-free recycling facilities for lithium (nickel-manganese-cobalt & lithium iron phosphate) and lead batteries used in various industries including electronics, automotive and energy storage. Ace was founded by Nishchay Chadha, Chief Executive Officer and a veteran in recycling, mining and global supply chain industries, and Dr. Vipin Tyagi, Chief Technology Officer, with extensive experience in battery materials recycling technologies. For more information, please visit www.acegreenrecycling.com.
About Athena Technology Acquisition Corp. II
Athena Technology Acquisition Corp. II is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination. Athena is part of the broader Athena platform founded by Isabelle Freidheim and supported by a senior leadership team with deep experience across public transactions, private M&A, growth investing and technology leadership. The broader Athena platform brings differentiated transaction experience, investor alignment and partnership-oriented execution to the business.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This release contains statements regarding Athena, Ace, the Proposed Business Combination and other matters that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, forward-looking statements can be identified by words such as “anticipate,” “approximate,” “believe,” “plan,” “estimate,” “expect,” “project,” “could,” “should,” “strategy,” “will,” “intend,” “may” and other similar expressions or the negative of such words or expressions. Statements in this report concerning (i) Athena’s or Ace’s expected future financial position, business strategy, production capacity, competitive positions, growth opportunities, plans and objectives of management and (ii) the expected benefits of the Proposed Business Combination, together with other statements that are not historical facts, are forward-looking statements that are estimates reflecting management’s best judgment based upon currently available information. Such forward-looking statements are inherently uncertain, and stockholders and other potential investors must recognize that actual results may differ materially from expectations as a result of a variety of factors, including, without limitation, those discussed below. Such forward-looking statements are based upon management’s current expectations and include known and unknown risks, uncertainties and other factors, many of which Athena and Ace are unable to predict or control, that may cause actual results, performance or plans to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated in these statements as a result of a number of factors, including, but not limited to:
Ace has a limited operating history at scale and is developing a flagship and new facility in the United States; scaling up its operations and expansion in the U.S. may carry uncertainties and pose liquidity risks to Ace;Ace may not be able to secure adequate capital to execute its business plan;If Ace is unable to overcome the workforce and engineering challenges arising from scaling up production from its existing capacities, it may not succeed in executing its growth and expansion plans;Successful or timely implementation of Ace’s planned U.S. facility may be delayed due to licensing or regulatory issues;A large portion of Ace’s profit is derived from a relatively small number of major customers, and its business, financial condition, and results of operations could be materially and adversely affected if its key customers fail to meet their contractual obligations;Prices for recovered materials are subject to global market fluctuations and price instability may negatively impact Ace’s financial performance;Ace relies on third-party vendors for key machineries and failure to acquire and maintain them may adversely disrupt its operations;A decline in green energy adoption may inhibit future recycling opportunities and may result in decreased demand for Ace’s products;Ace’s proprietary know-how may be rivaled by competitors, which may erode the technological edge it has established;Unfavorable economic or geopolitical conditions could constrain Ace’s expansion, inhibit its further growth and otherwise have a material adverse effect its business, results of operations, prospects and financial condition;Athena and Ace may not obtain the requisite stockholder approvals for the Proposed Business Combination;Nasdaq may not list the common stock of the surviving company following the Proposed Business Combination, which could limit investors’ ability to effect transactions following the Proposed Business Combination;An event, change or other circumstance could result in the termination of the Proposed Business Combination;A condition to the closing of the Proposed Business Combination may not be satisfied;There may be delays in completing the Proposed Business Combination;Any announcement or news coverage relating to the Proposed Business Combination could have adverse effects on the market price of Athena common stock or Ace common stock;The risk of litigation related to the merger; andOther risks and uncertainties identified in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business” sections of Athena’s most recent Annual Report on Form 10-K, and other risks as identified from time to time in its SEC reports.
All of the forward-looking statements Athena and Ace make in or in connection with this report are qualified by the information contained or incorporated by reference in a registration statement filed by Athena and Ace on Form S-4, that includes a proxy statement and a prospectus, to register the shares of Athena stock that will be issued to Ace’s stockholders (the “Registration Statement”). For additional information, see the sections entitled “Risk Factors” and “Where You Can Find More Information” beginning on pages 18 and 208, respectively, of the Registration Statement.
Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Except to the extent required by applicable law, neither Athena nor Ace undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
NO OFFER OR SOLICITATION
This press release is not intended to be, and shall not constitute, an offer to buy, subscribe for or sell or the solicitation of an offer to buy, subscribe for or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
IMPORTANT ADDITIONAL INFORMATION ABOUT THE PROPOSED BUSINESS COMBINATION AND WHERE TO FIND IT
This release is being made in respect of the Proposed Business Combination between Athena and Ace. In connection with the Proposed Business Combination, Athena and Ace filed with the SEC the Registration Statement, as well as other relevant documents regarding the Proposed Business Combination. INVESTORS ARE URGED TO READ IN THEIR ENTIRETY THE REGISTRATION STATEMENT REGARDING THE TRANSACTION THAT HAS BEEN FILED AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY CONTAIN IMPORTANT INFORMATION.
A free copy of the Registration Statement, as well as other filings containing information about Athena, may be obtained at the SEC’s website (http://www.sec.gov). You will also be able to obtain these documents, free of charge, from Athena by calling (970) 925-1572.
PARTICIPANTS IN THE SOLICITATION
Athena, Ace and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from its respective stockholders in respect of the Proposed Business Combination contemplated by the Registration Statement. Information regarding the persons who are, under the rules of the SEC, participants in the solicitation of the stockholders of Athena in connection with the Proposed Business Combination, including a description of their direct or indirect interests, by security holdings or otherwise, are set forth in the Registration Statement filed with the SEC. Information regarding Athena’s directors and executive officers is contained in its Annual Report on Form 10-K for the year ended December 31, 2025, which is filed with the SEC. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is or will be contained in the Registration Statement and other relevant materials filed or to be filed with the SEC regarding the Proposed Business Combination when such materials become available. Investors and security holders should read the Registration Statement carefully before making any voting or investment decisions. You may obtain free copies of any of the documents referenced herein using the sources indicated above.
Contacts:
Media
Media@ace-green.com
Investors
Investors@ace-green.com
Technology
TOTAL PLAY ANNOUNCES REVENUE OF Ps.11,177 MILLION AND EBITDA OF Ps.4,849 MILLION IN THE FIRST QUARTER OF 2026
Published
2 hours agoon
April 24, 2026By
—Growth of 115,020 net subscribers in Totalplay Residencial in the period strengthens the company’s service revenues—
—EBITDA less Capex and interest reached Ps.883 million, the highest level ever recorded for a first quarter—
—A 9% reduction in debt with cost from loans provides additional strength to the company’s capital structure—
MEXICO CITY, April 23, 2026 /PRNewswire/ — Total Play Telecomunicaciones, S.A.P.I. de C.V. (“Total Play”), a leading telecommunications company in Mexico, which offers internet access, pay television and telephony services, through one of the largest 100% fiber optic networks in the country, announced today financial results for the first quarter of 2026.
“The growing preference of millions of homes for our technologically advanced internet services, with superior stability and speed, resulted in a net increase of 115,020 subscribers in the quarter, which continued to drive the company’s revenue,” commented Eduardo Kuri, CEO of Total Play. “The growth of our operations was consistent with the Capex which represented only 22% of revenue, and interest payments that decreased double-digit, in the context of lower debt with cost at the company. This resulted in a 51% increase in cash generation — defined as EBITDA less Capex and interest paid — reaching a record high of Ps.883 million in the period.”
“Regarding the balance sheet, we began this quarter with the amortization schedule for the Senior Secured Notes due 2028 — through a principal payment of US$15 million for the period — which adds to the US$56 million amortization of the remaining balance of the Senior Notes due in 2025 — done in the previous quarter — which, among other debt payments, contributed to a 9% reduction in our balance of debt with cost from loans,” added Mr. Kuri. “Simultaneously, we were able to decrease our lease liabilities by 30% and our trade payables by 22%, further strengthening Total Play’s solid capital structure.”
First quarter results
Revenue for the quarter was Ps.11,177 million, 3% higher than Ps.10,843 million for the same period of the previous year. Total costs and expenses were Ps.6,328 million, compared to Ps.5,761 million in the prior year.
As a result, Total Play’s EBITDA was Ps.4,849 million, from Ps.5,082 million a year ago; the quarter’s EBITDA margin was 43%. The company reported operating profit of Ps.301 million, compared to Ps.763 million a year earlier.
Total Play reported a net loss of Ps.1,327 million from a loss of Ps.1,961 million in the same quarter of 2025.
Q1 2025
Q1 2026
Change
Ps.
%
Revenue from services
$10,843
$11,177
$334
3 %
EBITDA
$5,082
$4,849
$(233)
(5) %
Operating income
$763
$301
$(462)
(61) %
Net result
$(1,961)
$(1,327)
$634
32 %
Amounts in millions of pesos.
EBITDA: Earnings before interest, taxes, depreciation, and amortization.
Revenue from services
The company’s revenue increased 3%, as a result of 3% growth in sales in the residential segment and 4% growth in revenue from the enterprise segment.
Totalplay Residential’s revenue increase to Ps.9,848 million, up from Ps.9,570 million the previous year, is related to a 4% increase in the number of the company’s service subscribers compared to the same quarter of the previous year, reaching 5,554,374 this period — a figure that includes 67,856 small and medium-sized businesses. Compared to the previous quarter, the subscriber base increased by 115,020 users. The company believes that the number of subscribers achieved this quarter reflects its remarkable ability to offer technologically advanced internet services — with superior stability and speed — continuous innovation in its entertainment platform, and service excellence.
Average revenue per subscriber (ARPU) for the quarter was Ps.588, compared to Ps.597 a year ago. The decrease in ARPU is largely related to a growing proportion of double-play subscribers compared to triple-play subscribers within the total residential subscriber base.
The number of homes passed by Total Play in Mexico at the end of this period was 19.5 million, compared to 17.6 million a year ago.
Penetration — the proportion of homes passed by Total Play that have the company’s telecommunications services — was 28.5% at the end of the quarter from 30.2% a year ago.
Revenue from the enterprise segment was Ps.1,329 million, up from Ps.1,273 million in the previous year, as a result of contracting Total Play services for the development of corporate client projects.
Costs and expenses
Total costs and expenses increased 10% as a result of a 4% increase in service costs and a 12% increase in expenses.
The increase in costs to Ps.1,663 million from Ps.1,597 million in the previous year, results mainly from higher costs related to memberships, maintenance and support, partially offset by lower content costs — as a result of a higher proportion of double play users in the mix of residential service subscribers and the negotiation of terms, in an optimal way, with content producers —.
The increase in expenses to Ps.4,665 million from Ps.4,164 million reflects higher maintenance, personnel, advertising and promotion expenses, in the context of the company’s growing operations.
EBITDA and net result
Total Play’s EBITDA was Ps.4,849 million compared to Ps.5,082 million the previous year.
Relevant variations below EBITDA were the following:
An increase of Ps.229 million in depreciation and amortization, as a result of user acquisition costs — telecommunications equipment, labor and installation in the period.
A Decrease of Ps.189 million in accrued interest payable, in the context of reducing the company’s debt with cost balance during the period.
Changes in the fair value of financial instruments of Ps.921 million, due to costs related to hedging options in the previous year.
Other financial income of Ps.31 million, compared to other expenses of Ps.200 million in the previous year, as a result of costs related to debt issuances a year ago.
A, increase of Ps.109 million in exchange losses as a result of net liability monetary position in foreign currency, together with greater depreciation of the peso against the basket of currencies in which the company’s monetary liabilities are denominated this quarter, compared to the previous year.
Total Play reported a net loss of Ps.1,327 million from a net loss of Ps.1,961 million in the same period of 2025.
Balance sheet
As of March 31, 2026, the company’s debt with cost from loans was Ps.55,477 million, 9% lower than the Ps.60,806 million of the previous year. The reduction resulted from various debt with cost amortizations during the period, including US$15 million of the company’s Senior Secured Notes due 2028 this quarter and US$56 million of the remaining Senior Notes due 2025, done last November, partially offset by the issuance of US$200 million in Additional Notes to the Senior Secured Notes due 2032, announced in April 2025.
Lease liabilities were Ps.2,756 million, 30% lower compared to Ps.3,917 million in the previous year.
Cash and cash equivalents, as well as restricted cash in trusts, was Ps.6,477 million, compared to Ps.10,008 million a year ago. As a result, the company’s net debt was Ps.51,756 million, 5% lower compared to Ps.54,715 million in the previous year.
The debt ratio — Net Debt / EBITDA of the last two quarters annualized — was 2.62 times.
Total Play’s fixed assets — which include accumulated investment in fiber optics, telecommunications equipment and subscriber acquisition costs, among other assets — were Ps.79,312 million, compared to Ps.85,944 million a year ago.
About Total Play
Total Play is a leading Triple Play provider in Mexico that, thanks to the widest direct-to-home fiber optic network in the country, offers entertainment and technologically advanced services with the highest quality and speed in the market. For the latest news and updates about Total Play, visit: www.totalplay.com.mx.
Total Play is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic, fast-growing, and technologically advanced companies focused on creating economic value through market innovation and goods and services that improve standards of living; social value to improve community well-being; and environmental value by reducing the negative impact of its business activities. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. Each of the Grupo Salinas companies operates independently, with its own management, board of directors, and shareholders. Grupo Salinas has no equity holdings. The group of companies shares a common vision, values, and strategies for achieving rapid growth, superior results, and world-class performance.
Except for historical information, the matters discussed in this press release are concepts about the future that involve risks and uncertainty that may cause actual results to differ materially from those projected. Other risks that may affect Total Play and its subsidiaries are presented in documents sent to the securities authorities.
Investor Relations:
Bruno Rangel
Rolando Villarreal
+ 52 (55) 1720 9167
+ 52 (55) 1720 9167
jrangelk@totalplay.com.mx
rvillarreal@totalplay.com.mx
Press Relations:
Luciano Pascoe
Tel. +52 (55) 1720 1313 ext. 36553
lpascoe@gruposalinas.com.mx
TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V.
Consolidated Quarterly Income Statements
(Millions of Mexican pesos)
1Q 25
1Q 26
Change
$
%
$
%
$
%
Revenue from services
10,843
100 %
11,177
100 %
334
3 %
Cost of services
(1,597)
(15 %)
(1,663)
(15 %)
(66)
(4 %)
Gross profit
9,246
85 %
9,514
85 %
268
3 %
General expenses
(4,164)
(38 %)
(4,665)
(42 %)
(501)
(12 %)
EBITDA
5,082
47 %
4,849
43 %
(233)
(5 %)
Depreciation and amortization
(4,319)
(40 %)
(4,548)
(41 %)
(229)
(5 %)
Operating profit
763
7 %
301
3 %
(462)
(61 %)
Financial cost:
Interest revenue
56
1 %
30
0 %
(26)
(46 %)
Accrued interest expense
(1,770)
(16 %)
(1,581)
(14 %)
189
11 %
Change in fair value of financial instruments
(924)
(9 %)
(3)
(0 %)
921
100 %
Other financial (expenses) income
(200)
(2 %)
31
0 %
231
—
Foreign exchange (loss) – Net
(40)
(0 %)
(149)
(1 %)
(109)
n.m.
(2,878)
(27 %)
(1,672)
(15 %)
1,206
42 %
Loss before income tax provisions
(2,115)
(20 %)
(1,371)
(12 %)
744
35 %
Income tax provision
154
1 %
44
0 %
(110)
(71 %)
Net loss for the period
(1,961)
(18 %)
(1,327)
(12 %)
634
32 %
TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V.
Consolidated Statements of Financial Position
(Millions of Mexican pesos)
As of March 2025
As of March 2026
Cambio
$
%
$
%
$
%
ASSETS
Current Assets:
Cash and cash equivalents
7,132
6 %
4,342
4 %
(2,790)
(39 %)
Restricted cash in trusts
2,876
3 %
2,135
2 %
(741)
(26 %)
Customers – net
2,902
3 %
3,016
3 %
114
4 %
Recoverable taxes
3,365
3 %
2,293
2 %
(1,072)
(32 %)
Inventories
2,416
2 %
2,146
2 %
(270)
(11 %)
Derivative financial instruments
193
0 %
–
0 %
(193)
(100 %)
Other current assets
873
1 %
883
1 %
10
1 %
Total current assets
19,757
18 %
14,815
15 %
(4,942)
(25 %)
Non-Current Assets:
Property, plant and equipmente – Net
85,944
77 %
79,312
81 %
(6,632)
(8 %)
Rights-of-use assets -Net
2,849
3 %
1,652
2 %
(1,197)
(42 %)
Trademarks and other assets
2,620
2 %
2,464
3 %
(156)
(6 %)
Total non-current assets
91,413
82 %
83,428
85 %
(7,985)
(9 %)
Total assets
1,11,170
100 %
–
98,243
100 %
(12,927)
(12 %)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Short-Term Liabilities
Financial debt
9,240
8 %
5,435
6 %
(3,805)
(41 %)
Lease liabilities
2,367
2 %
1,749
2 %
(618)
(26 %)
Trade payables
12,719
11 %
9,913
10 %
(2,806)
(22 %)
Reverse factoring
1,483
1 %
278
0 %
(1,205)
(81 %)
Other short-term liabilities
3,814
3 %
3,255
3 %
(559)
(15 %)
Total short-term liabilities
29,623
27 %
20,630
21 %
(8,993)
(30 %)
Long-Term Liabilities
Financial debt
51,566
46 %
50,042
51 %
(1,524)
(3 %)
Lease liabilities
1,550
1 %
1,007
1 %
(543)
(35 %)
Employee benefits
101
0 %
148
0 %
47
47 %
Deferred income tax
12,950
12 %
13,741
14 %
791
6 %
Total liabilities
95,790
86 %
85,568
87 %
(10,222)
(11 %)
EQUITY:
Capital stock
8,201
7 %
8,060
8 %
(141)
(2 %)
Retained earnings
(15,836)
(14 %)
(17,171)
(17 %)
(1,335)
(8 %)
Other comprehensive income
23,015
21 %
21,786
22 %
(1,229)
(5 %)
Total equity
15,380
14 %
12,675
13 %
(2,705)
(18 %)
Total liabilities and equity
1,11,170
100 %
98,243
100 %
(12,927)
(12 %)
TOTAL PLAY TELECOMUNICACIONES, S.A.P.I. DE C.V.
Consolidated Statements of Cash Flows
(Millions of Mexican pesos)
3M 25
3M 26
$
$
Operating activities:
Loss before income tax provision
(2,115)
(1,371)
Items not requiring the use of resources:
Depreciation and amortization
4,320
4,548
Employee benefits
9
10
Items related to investing or financing activities:
Accrued interest income
(56)
(30)
Accrued interest expense
1,770
1,581
Other financial transactions
1,122
(27)
Unrealized exchange (gain) loss
(89)
262
4,961
4,973
Resources (used in) generated by operating activities:
Customers and unearned revenue
315
134
Other receivables
–
2
Related parties, net
53
(104)
Taxes to be recovered
353
260
Inventories
292
400
Advance payments
(76)
(179)
Trade payables
(906)
(1,092)
Other payables
299
434
Cash flows generated by operating activities
5,291
4,828
Investing activities:
Acquisition of property, plant and equipment
(2,601)
(2,425)
Other assets
(234)
75
Collected interest
56
31
Cash flows used in investing activities
(2,779)
(2,319)
Financing activities:
Capital repayments
–
–
Loans (paid) received
4,312
(58)
Leasing cash flows
(822)
(449)
Restricted Cash in Trusts
(488)
(371)
Reverse factoring
(107)
(80)
Derivative financial instruments
265
–
Interest payment
(1,895)
(1,541)
Cash flows used in financing activities
1,265
(2,499)
Net increase in cash and cash equivalents
3,777
10
Cash and cash equivalents at the beginning of the year
3,355
4,332
Cash and cash equivalents at the end of the year
7,132
4,342
View original content:https://www.prnewswire.com/news-releases/total-play-announces-revenue-of-ps11-177-million-and-ebitda-of-ps4-849-million-in-the-first-quarter-of-2026–302752403.html
SOURCE Total Play Telecomunicaciones, S.A.P.I. de C.V.
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