Q1 2025 Megacable Holdings SAB de CV Earnings Call Transcript
Key Points
- Megacable Holdings SAB de CV (MHSDF) reported the highest EBITDA margin in the past 10 quarters, demonstrating strong operational efficiency.
- Subscriber base grew by 10% year-over-year, reaching 5.6 million, with significant growth in Internet and telephony subscribers.
- The company successfully integrated ho1a, Metrocarrier, and MCM into NGN business Techco, aiming to generate greater synergies and maximize profitability.
- Revenue increased by 8% year-over-year, driven by solid performance in the mass market segment, particularly in Internet and telephony services.
- The company approved a dividend payment equivalent to 20% of the previous year's EBITDA, representing an attractive dividend yield of close to 8%.
- Net income decreased year-over-year, impacted by higher depreciation and interest expenses, as well as foreign exchange fluctuations.
- Churn rates increased due to a price adjustment, with Internet churn at 2.1% and telephony at 2.5%.
- Video subscribers decreased by 21,000 this quarter, reflecting a global industry trend towards double play offerings.
- The corporate segment showed only a 1% year-over-year increase, with weaker performance in the special project segment.
- CapEx to revenue ratio was lower, reflecting reduced network construction activity, which may impact future growth if not addressed.
Portions of this transcript marked (technical difficulty) indicate audio problems. The missing text will be supplied if a replay becomes available.
(technical difficulty) Megacable undertakes no obligation to update or revise any forward-looking statements. I will now turn the call over to Mr. Enrique Yamuni. Sir, you may begin.
Good morning, everyone, and thank you for joining us today. Our first quarter results once again the most strength and resilience of our business model. We continue reporting subscriber revenue growth and delivered the highest EBITDA margin in the past 10 quarters. Despite ongoing macroeconomic uncertainty, including international trade tensions and lower GDP growth, these results reflect the strategic clarity and operational discipline that have guided our company on many cycles, positioning us as one of the most consistent performance in the Mexican telecom industry.
Regarding our operating results,
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