Megacable Holdings (MEGACPO) Q1 2026 earnings summary

Executive summary

• First quarter 2026 delivered record consolidated revenues of MXN 9.4 billion, up 9% year-over-year, driven by mass market segment growth and strong subscriber additions.

• Net income reached MXN 841 million, the highest in two years, increasing 16% year-over-year.

• Continued subscriber growth in broadband and mobile, with successful expansion into new and legacy territories.

• Dividend of MXN 3.2 billion approved, reflecting confidence in cash generation and commitment to shareholder value.

• Transitioned from an infrastructure-intensive phase to capitalizing on investments, focusing on free cash flow and value proposition.

Financial highlights

• Mass market revenues reached MXN 8 billion, up 11% year-over-year, setting a quarterly record.

• EBITDA rose 9% to over MXN 4.3 billion, with a margin of 46.2%, consistent with last year.

• Operating profit increased 7% to MXN 1.8 billion; gross profit up 9% to MXN 6.9 billion.

• CapEx for the quarter was MXN 2 billion, down 14% year-over-year, representing 21.3% of revenues, the lowest in five years.

• Net debt stood at MXN 20.4 billion, down 3% year-over-year, with cash and investments at MXN 5.6 billion.

Outlook and guidance

• Full-year 2026 CapEx expected at 24%-27% of revenues, with flexibility to adjust for geopolitical or trade-related cost pressures.

• CapEx as a percentage of revenues projected to decline further in 2027 and 2028.

• Focus shifting from intensive investment to operational efficiency, consolidation, and digitalization.

• Margin improvement of about half a percentage point expected in 2026, with further gains anticipated next year.

• Emphasis on consolidating new territories and maximizing value from fiber infrastructure.