Cablemas reports 4Q net loss on the back of increased income tax

18 May 2009

Mexican cableco Cablemas has released its financial results for the three months ended 31 December 2008, posting a net loss of MXN19.8 million (USD1.38 million), down from a net profit of MXN303.3 million in the same period a year earlier. The company attributed the dramatic drop to a rise in income tax for the period to MXN263.9 million compared to MXN25.1 million a year earlier; the increase reflected higher non-cash deferred taxes for the three-month period resulting from the gains generated by the derivative instruments to hedge interest and principal payments on outstanding US dollar denominated debt. However, revenue for the operator in the quarter increased, up 18.2% year-on-year to MXN825.8 million, on the back of an increasing subscriber base. Cablemas reported that customers taking its high speed internet services had risen 6.8% y-o-y to 242,708, while VoIP subscribers reached 76,112, an 85.4% increase against end-December 2007. Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 5% at MXN257.7 million in the quarter. Commenting on the results Cablemas CEO Carlos M. Alvarez Figueroa noted: ‘Although Mexico has started to feel the effects of the global slowdown, we consider our business model to be defensive and continue to see an attractive growth potential in our markets. Nonetheless, we remain cautious and will continue implementing cost controls throughout the company while limiting capital expenditures and consolidating our current infrastructure to further support our strong balance sheet position.’

Mexico, Cablemas (Izzi/Wizz)