Q2 2024 Megacable Holdings SAB de CV Earnings Call Transcript
Key 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.
- 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%.
Good morning. Welcome to our Megacable second-quarter 2024 earnings conference call. This morning, we have Mr. Enrique Yamuni CEO; Mr. Raymundo Fernandez, Deputy CEO; and Mr. Lius Zetter CFO. Let me remind you that the information discussed in today's earnings call may include forward looking statements on the company's future financial performance and prospects, which are subject to risks and uncertainties. Megacable undertakes no obligation to update or revise any forward-looking statement.
I will now turn the call over to Mr. Enrique Yamuni. Sir, you may begin.
Good morning, everyone, and thank you for joining with us today. I wanted to start by commenting on the three strategic verticals of the company, which started the (inaudible) The actions have been taken to meet our objectives for the last few quarters. First, consolidate the legacy territories, strengthen our presence through state of the art technology, including the evolution of the HFC footprint to remain the
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