Megacable Holdings (MEGACPO) Q2 2025 earnings summary

Executive summary

• Achieved record total revenues of Ps. 8,700 million in 2Q25, up 6.9% year-over-year, driven by Mass Segment growth and subscriber additions.

• Net income rose to Ps. 768 million, up 634% year-over-year, supported by margin expansion, currency gains, and lower financing expenses.

• Subscriber base grew by 565,000 net unique additions year-over-year, reaching 5.74 million unique subscribers.

• Over 80% of internet subscribers now served via fiber, with network footprint reaching 18 million homes passed.

• Share price rose 55% to MXN 52.59 as of June 30, 2025, with market capitalization at MXN 45.3 billion.

Financial highlights

• EBITDA increased 9.7% year-over-year to nearly MXN 4 billion, with margin expanding to 45.4% from 44.3% in Q2 2024.

• Mass Segment revenues reached Ps. 7,394 million, up 10.6% year-over-year; Corporate Segment revenues declined 10%.

• ARPU per unique subscriber was Ps. 421, stable year-over-year.

• Net debt increased to Ps. 23,446 million, with a leverage ratio of 1.56x.

• Dividend of MXN 2.9 billion distributed in April/May, about 20% of 2024 EBITDA.

Outlook and guidance

• Expecting to maintain quarterly net additions of 100,000–150,000 broadband subscribers for the next 2–3 years.

• CapEx to revenue ratio targeted at 27–29% for 2024, with a long-term goal to reduce below 20% by 2028.

• Expects continued deceleration in CAPEX investment pace for the remainder of the year.

• Maintains focus on expanding fiber coverage and digital offerings to align with subscriber preferences.

• Outlook for 2025 remains unchanged, with strong mass market growth and expanding margins.