Megacable Holdings (MEGACPO) Q4 2025 earnings summary

Executive summary

• Transitioned from high investment to consolidation and efficiency, focusing on fiber network expansion and competitive pricing, with strong subscriber growth across Internet, Telephony, and Video services.

• Achieved over 19 million homes passed and 84% of subscribers served via fiber, reinforcing a fiber-based strategy.

• Maintained robust revenue growth in the mass market segment for the third consecutive quarter, while the corporate segment remained soft but improved in profitability.

• Net income surged 74.2% year-over-year, driven by operating efficiencies and improved financial results.

• Ended the year with a solid balance sheet, lower CapEx intensity, and strengthened cash flow.

Financial highlights

• Q4 2025 revenues reached MXN 9.2 billion, up 8.2% year-over-year; full-year revenues were MXN 35.4 billion, up 8%.

• Mass segment revenues grew 10.3% year-over-year, offsetting a 3.3% decline in corporate telecom revenues.

• EBITDA for Q4 was MXN 4.5 billion (44% margin), up 15% year-over-year; full-year EBITDA was MXN 15.9 billion (45% margin), up 11%.

• Net income for Q4 was MXN 721 million, up 74.2% year-over-year; full-year net income was MXN 2.8 billion, up 20%.

• Cash generation rose from MXN 1.75 billion in 2024 to MXN 4.68 billion in 2025, a 1.6x increase.

Outlook and guidance

• CapEx to revenue ratio expected to continue declining, with 2026 guidance at 24%-26% and lower for 2027.

• Focus remains on consolidating growth, advancing fiber strategy, and maximizing free cash flow while maintaining investment-grade profile.

• EBITDA margin expected to expand by 50 basis points per year, reaching 47%-48% by 2028.

• Continued focus on expanding fiber coverage and digital content offerings to sustain subscriber and revenue growth.

• Corporate segment expected to recover to 2024 levels by 2026 as managed services mature.