Cablemas reports net loss in 3Q

2 Dec 2008

Mexican cableco Cablemas has reported its financial results for the three months ended 30 September 2008, revealing a net loss of MXN64.3 million (USD4.76 million) compared to an MXN31.9 million profit in the same period last year amid rising costs. Costs of services in the three-month period rose 21.1%, with the bulk of the rise attributed to higher costs in cable TV programming. Net revenues for the operator rose year-on-year however, climbing 16.8% to MXN792.8 million, with revenues from VoIP services increasing 98.4% y-o-y to MXN62.3 million. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) reached MXN277 million, a 12.5% increase against the previous year. Subscribers to both VoIP and high speed internet services rose over the quarter by 112.4% and 10.4% respectively, bringing the total to 73,284 for VoIP and 235,422 for broadband. Commenting on the results Cablemas CEO Carlos Alvarez said, ‘Despite the overall challenging global environment, we continue to see an attractive growth potential in our markets as our service offering has demonstrated to be quite defensive in prior economic downturns.’ Cablemas CFO Rafael Lira claimed that the operator had invested MXN588 million on network infrastructure during the quarter, with the network increasing by 651km to reach 14,533km. CAPEX for 2009 is expected to be lower due to the economic downturn.

Mexico, Cablemas (Izzi/Wizz)