Q2 2025 Megacable Holdings SAB de CV Earnings Call Transcript
Key Points
- Megacable Holdings SAB de CV (MHSDF) reported a strong quarter with significant growth in the mass market, adding 130,000 broadband and 45,000 video subscribers.
- The company achieved a 10% growth in the mass market segment, outperforming the industry average growth rate of 2.5% to 3%.
- EBITDA grew at a near double-digit annual rate, supported by disciplined cost optimization and operational efficiencies.
- The company has successfully transitioned over 80% of its subscribers to fiber, positioning itself as a leading full fiber operator by 2028.
- Megacable Holdings SAB de CV (MHSDF) distributed a dividend of approximately MXN2.9 billion, maintaining one of the highest yields in the Mexican market.
- There was a slight increase in churn rates, attributed to competitive pressures and recent price increases.
- Revenues from the Corporate Telecom segment declined year-over-year due to a strategic focus on higher-margin products and a shift from infrastructure sales to managed services.
- The company experienced a temporary reduction in cash and a slight uptick in leverage following the dividend distribution.
- ARPU per unique subscriber showed only a slight increase due to a higher proportion of subscribers on promotional and double-play packages.
- The Corporate segment faced challenges with softer results this quarter, impacted by a decline in government sector contracts and a shift to longer-term managed services.
Good Morning. Welcome to Megacable's second quarter 2025 earnings conference call. With us this morning, we have Mr. Enrique Yamuni, CEO; Mr. Raymundo Fernandez, Deputy CEO; and Mr. Luis Zetter, CFO. Let me remind you that the information discussed at 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 statements. I will now turn the call over to Mr. Enrique Yamuni. Sir, you may begin.
Good morning, everyone. Thank you for joining us today. We are pleased to report one of the strongest quarters in recent history, driven by solid growth in the mass market with net additions rounding the 130,000 for broadband and 45,000 for video. Result of the performance across both legacy and newly entered territories.
In an industry where average growth rates around 2.5% to 3%, our 10%
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