In This Article:
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Consolidated Revenue: MXN8.2 billion, a 10% increase year-over-year.
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Mass Segment Contribution: 83% of consolidated revenue.
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Corporate Segment Revenue Growth: 7% year-over-year.
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OLA Service Growth: 37% increase year-over-year.
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Metrocarrier Growth: 6% annual growth.
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Cost of Services: MXN2.3 billion, a 7% increase.
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G&A Expenses: MXN2.3 billion, up 15%.
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EBITDA: Nearly MXN3.6 billion, an 8% growth with a margin of 43.6%.
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Net Income: Decreased to MXN500 million.
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Net Debt: Stable at MXN22 billion.
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CapEx: MXN2.7 billion, accounting for 33.5% of revenue.
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Net Debt to EBITDA Ratio: 1.54 times at quarter end.
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Interest Coverage Ratio: 5.5 times at quarter end.
Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Megacable Holdings SAB de CV (MHSDF) reported significant revenue growth, with a 10% increase in consolidated revenues for the third quarter, reaching MXN8.2 billion.
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The company achieved a record quarter in terms of subscriber growth, adding 581,000 internet subscribers year-over-year, surpassing the 5 million subscriber mark.
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The internet segment grew by 13% year-over-year, contributing significantly to the expansion of unique subscribers.
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Megacable Holdings SAB de CV (MHSDF) maintained a strong financial position, reinforced by the reaffirmation of their AAA credit ratings.
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The company's infrastructure now covers more than 100,000 kilometers, marking an 11% year-over-year increase, supporting nearly 17 million home passes.
Negative Points
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Net income decreased to MXN500 million this quarter, primarily due to higher depreciation from recent asset additions, increased interest expenses, and foreign exchange losses.
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The company's EBITDA margin was impacted by temporary operational costs associated with expansion projects and a higher contribution from lower-margin segments.
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Traditional pay TV subscribers decreased slightly, reflecting market trends favoring digital platforms.
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The ARPU (Average Revenue Per User) is under pressure due to a higher mix of promotional rates and a shift towards double-play bundles.
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The company's non-cable EBITDA has not grown in recent years, indicating challenges in the corporate segment and the need for strategic improvements.
Q & A Highlights
Q: Can you explain the significant increase in gross ads this quarter and its impact on margins? Also, how is the competitive environment affecting broadband churn? A: The increase in gross ads was driven by successful back-to-school campaigns and promotions in expansion projects. We aim to maintain growth at around 150,000 per quarter. This growth impacts margins due to the high cost of new customer acquisition, but our organic territories maintain a strong 49% margin. The broadband churn remains stable at 2%, which is a good level given our aggressive market promotions. We continue to capture market share effectively. - Raymundo Fernandez Pendones, Deputy General Director