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Cablevision Holding SA (CVHSY) Q4 2024 Earnings Call Highlights: Navigating Economic Challenges ...

In This Article:

  • Dividends Collected: ARS45.2 billion or USD39.1 million from Telecom.

  • Gross Dividend: ARS246.49 per share or USD0.20602 per GDR.

  • Revenue in Constant Pesos: Decreased 7.7% year-over-year to ARS4,137.6 billion.

  • EBITDA: ARS1,155.5 billion in constant currency, an 8.1% decrease from 2023.

  • EBITDA Margin: 27.9% compared to 28.1% in 2023.

  • Net Income: Profit of ARS1,024.7 billion from a net loss of ARS537.5 billion in 2023.

  • Fourth Quarter Revenue Increase: 1.3% in real terms.

  • Mobile Revenue: 40.9% of total revenues, increased 5.2% in real terms in Q4 2024.

  • Broadband Subscribers: Decreased 1.1% to 4 million.

  • CapEx as Percentage of Revenue: 21.3% or 15.9% before rights of use for leases.

  • Total Financial Debt: ARS2,878 billion, net debt of ARS2,468.2 billion (USD2.4 billion).

  • Net Debt-to-Adjusted EBITDA Ratio: 2.1 times as of December 2024.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Cablevision Holding SA (CVHSY) achieved a fiscal surplus for the first time in over a decade, driven by a significant reduction in public spending.

  • The company maintained a healthy cash position with most liquidity in US dollar accounts, providing financial stability.

  • EBITDA margin remained stable due to effective cost management and pricing policies, despite challenging macroeconomic conditions.

  • Mobile revenues increased by 5.2% in real terms in Q4 2024, driven by higher ARPU and increased mobile internet usage.

  • The company successfully applied bonds collected to pay dividends in kind to shareholders, demonstrating effective financial management.

Negative Points

  • Revenues for 2024 dropped 7.7% in constant currency, mainly due to lower service revenues.

  • Net income was negatively impacted by a change in fiscal authority criteria regarding personal asset tax calculations.

  • The GDP of 2024 averaged a decline of around 1.8%, indicating a challenging economic environment.

  • ARPU in real terms decreased by 10.4% for mobile services, reflecting competitive pressures and inflationary challenges.

  • Cable TV ARPU decreased by 26.3% in 2024, highlighting challenges in the pay TV segment due to changing consumer habits.

Q & A Highlights

Q: Can you provide an overview of the macroeconomic environment and its impact on Cablevision Holding SA? A: Julian Brescia, Senior Analyst of Investor Relations, explained that the government achieved better-than-expected results with a fiscal surplus for the first time in over a decade. This was due to a significant cut in public spending and stabilization measures. Inflation decreased significantly, allowing for lower monetary policy rates. However, GDP declined by 1.8% in 2024, with agriculture and energy sectors performing well, while industry, construction, and retail lagged.