Megacable Holdings (MEGACPO) Q3 2025 earnings summary

Executive summary

• Achieved strong subscriber growth, reaching 5.86 million unique subscribers, up 9% year over year, and became the second largest broadband operator in Mexico, with RGUs surpassing 14.7 million.

• Mass market segment drove revenue and EBITDA growth, with record Mass Segment revenues of Ps. 7,595 million, up 11.2% year over year, while the corporate segment remained soft due to economic slowdown and increased competition.

• Net income rose 25.5% year over year to Ps. 628 million, driven by higher operating profit and improved financing results.

• Maintained disciplined execution of expansion and network evolution projects, with 82% of the base now served by fiber.

Financial highlights

• Total revenues reached Ps. 8,921 million, up 8.6% year over year, driven by 11.2% growth in the mass market segment.

• EBITDA increased 10.2% year over year to Ps. 3,946 million, with margin improving to 44.2%.

• Net income for the quarter was Ps. 628 million, up 25.5% year over year.

• ARPU per unique subscriber rose to Ps. 422.3, up from Ps. 418.9 last year.

• Operating profit grew 5% year over year to Ps. 1,505 million.

Outlook and guidance

• CapEx is expected to decline to 24%-26% of revenues in 2026 and further to 21%-23% in 2027, as major expansion and migration projects wind down.

• Subscriber growth is forecasted to continue at 100,000-150,000 net additions per quarter through 2026 and 2027.

• Focus remains on maximizing free cash flow, maintaining investment-grade credit, and maturing recent investments.

• Continued deceleration in CAPEX investment pace is expected, following the achievement of doubling homes passed since the expansion project began.

• Focus remains on expanding fiber coverage and digital content offerings to align with subscriber preferences.