Cablemas returns to profit as first-quarter revenues, EBITDA climb

21 May 2010

Mexican cableco Cablemas has released its financial results for the three months ended 31 March 2010, posting an 8.7% year-on-year increase in revenue. For the three-month period the company generated a turnover of MXN978.3 million (USD75.12 million), up from MXN899.9 million a year earlier, with revenue from high speed internet services and telephony increasing by 12.5% (MXN18.4 million) and 58.1% (MXN53.2 million) respectively. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 16.4% y-o-y to MXN352.5 million, while net income saw a dramatic improvement, with Cablemas reporting that favourable foreign exchange movements had seen it bounce back from a MXN349 million loss in 1Q 2009 to an MXN1.6 million profit in the first quarter of 2010.

In terms of subscribers, at the end of March 2010 the telco had a high speed internet subscriber base of 310,752, up 25.7% against the same date a year earlier, while its internet telephony customer base rose to 164,726, almost double the 84,680 it had at end-March 2009. The operator did, however, note that average revenue per user (ARPU) for both its high speed internet and telephony services had declined – down 8.1% and 16.7% y-o-y respectively – which Cablemas attributed to increased uptake of its double- and triple-play packages.

Commenting on the results, Carlos Alvarez, CEO of Cablemas, said: ‘The year started off very well, with revenue up 8.7% year-on-year as we continued to expand our subscriber base across our three business segments. We also reduced or maintained churn rates, despite the difficult environment … The continued success of the ‘yoo’ advertising campaign and the ongoing improvement in customer service contributed to the stronger performance, despite the competitive environment.’

Mexico, Cablemas (Izzi/Wizz)