Customer growth bolsters Megacable’s fourth quarter financials

28 Feb 2012

Mexican alternative fixed line and broadband operator Megacable has released its financial results for the last three months of 2011, revealing a 4% year-on-year rise in net profit on the back of higher service revenues. For the three months ended 31 December 2011 Megacable posted net profits of MXN417 million (USD22.9 million), up from MXN400 million in the corresponding period a year earlier, while service revenues rose by 10% compared to 4Q 2011 to reach MXN2.17 billion. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA), meanwhile, stood at MXN891 million for the quarter, representing an increase of 18% when compared to the year-ago period, and surpassing the operator’s estimates.

Megacable pointed to continued subscriber growth as one reason for the positive financial report, noting that revenue generating units (RGUs) had increased by 11% against end-2010, mainly driven, it said, by ‘successful publicity campaigns, the introduction of new packages and higher quality sales despite exchange rate volatility’. At end-December 2011 Megacable reported a high speed internet customer base of 682,726, up 15% against the 594,048 registered a year earlier, while fixed voice subscribers totalled 495,205, up 7% year-on-year.

The cableco also highlighted the fourth-quarter acquisition of the Salamanca network, located in Guanajuato state, which it said added around 3,000 internet subscribers and 2,000 fixed voice access. The infrastructure itself, Megacable said, added nearly 200 network kilometres to its cable distribution, covering some 28,000 homes.

Mexico, Megacable