Q3 2024 Megacable Holdings SAB de CV Earnings Call Transcript
Key Points
- 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.
- 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.
- The internet segment grew by 13% year-over-year, contributing significantly to the expansion of unique subscribers.
- Megacable Holdings SAB de CV (MHSDF) maintained a strong financial position, reinforced by the reaffirmation of their AAA credit ratings.
- The company's infrastructure now covers more than 100,000 kilometers, marking an 11% year-over-year increase, supporting nearly 17 million home passes.
- Net income decreased to MXN500 million this quarter, primarily due to higher depreciation from recent asset additions, increased interest expenses, and foreign exchange losses.
- The company's EBITDA margin was impacted by temporary operational costs associated with expansion projects and a higher contribution from lower-margin segments.
- Traditional pay TV subscribers decreased slightly, reflecting market trends favoring digital platforms.
- The ARPU (Average Revenue Per User) is under pressure due to a higher mix of promotional rates and a shift towards double-play bundles.
- The company's non-cable EBITDA has not grown in recent years, indicating challenges in the corporate segment and the need for strategic improvements.
(audio in progress) significant revenue growth with an investment that has already been made.
And finally, regarding our financial profile, as we near the completion, the completion of the expansion plan, our capex to revenue ratio significantly increased from 41 occurred as of September last year to approximately 32% in the first nine months of 2024.
As we continue to consistently increase revenue and IDA cash flow generation will improve in the coming periods.
We will maintain this opinion or capital allocation with no large scale projects planned for the coming years and financial position that will lead us to cash generation in the near terms.
Our solid financial position is reinforced by the recent reaffirmation of our AAA credit ratings from hr ratings in line with the reaffirmation granted by fixed ratings in May.
Regarding results, we are recording one of the best quarters ever in terms of subscriber growth. A confirmation that the site that is like the deceleration
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