Yahoo Finance

• Consolidated Revenue: MXN8.1 billion, a 10% increase year over year.

• Mass Segment Revenue: MXN6.7 billion, an 11% growth.

• Internet Revenue Growth: 15% year over year.

• Video Revenue Growth: 4% year over year.

• Fixed Telephony Revenue Growth: 11% year over year.

• MVNO Revenue Growth: 13% year over year.

• Corporate Segment Growth: 7% year over year.

• EBITDA: MXN3.6 billion, a 10% increase year over year.

• EBITDA Margin: 44.3%, slightly down from 44.6% in the previous year.

• Net Income: MXN571.3 million, down from MXN867.8 million last year.

• Net Debt: MXN22.01 billion, a 14% sequential increase.

• CapEx: MXN2.7 billion for the quarter, MXN5.1 billion for the first half of the year.

• Subscriber Base: 5.2 million, a 10% year-over-year growth.

• Internet Subscribers: 515,000 net additions, 91,000 in the reporting period.

• Video Subscribers: 3.9 million, a 1% year-over-year increase.

• Telephony Subscribers: 4.4 million, a 16% year-over-year growth.

• MVNO Subscribers: 469,000, a 20% year-over-year increase.

• ARPU per Unique Subscriber: MXN421.9, with Internet and video segments growing by 5% and 3% respectively.

• Warning! GuruFocus has detected 6 Warning Signs with MHSDF.

Release Date: July 26, 2024

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

Positive Points

• Megacable Holdings SAB de CV (MHSDF) achieved a significant milestone by expanding its network to over 98,000 kilometers, marking a year-over-year growth of 23%.

• The company successfully increased its fiber footprint to 72% of its network, enhancing its ability to meet current and future bandwidth demands.

• Megacable Holdings SAB de CV (MHSDF) reported a 10% year-over-year increase in consolidated revenues, reaching MXN8.1 billion, driven by strong performance in both mass and corporate segments.

• The company maintained a solid financial profile with a reasonable leverage ratio, despite a temporary increase in leverage due to investments.

• Megacable Holdings SAB de CV (MHSDF) paid dividends of MXN2.7 billion, maintaining its position as one of the top five companies with the highest dividend yield in the country.

Negative Points

• The company faced a challenging macroeconomic environment, including high interest rates, persistent inflationary pressures, and FX rate volatility.

• There was a slower pace of net subscriber additions due to a weak start of the quarter and a higher churn rate in April, influenced by a pricing adjustment and vacation period.

• EBITDA margin slightly declined to 44.3% from 44.6% in the second quarter of 2023, primarily due to increased costs and a temporary slowdown in revenues.

• Net income decreased to MXN571.3 million from MXN867.8 million in the same period last year, impacted by foreign exchange losses, higher interest payments, and increased depreciation costs.

• The company experienced increased churn rates, particularly in the video segment, rising from 2% to 2.6%, and in the Internet segment, from 1.9% to 2.1%.