Megacable Holdings, S. A. B. de C. V.

Second-quarter consolidated revenue was MXN 9.3 billion, up 7% year over year. Mass market revenue increased nearly 8% to MXN 8 billion, corporate revenue rose about 4%, and mobile revenue reached a record MXN 274 million. EBITDA was MXN 4.2 billion, up 6% year over year, with margin at 44.9% versus 45.4% a year ago. Net income was about MXN 852 million, up 11% year over year; cost of services was MXN 2.5 billion and SG&A was MXN 2.6 billion. Internet ARPU was MXN 430.8 and declined sequentially, mainly due to a one-time promotion effect from last year’s Buen Fin campaign. CapEx was MXN 2.2 billion in the quarter, or 23.4% of revenue, and MXN 4.2 billion for the first half, or 22.3% of revenue. Cash and investments were MXN 4.7 billion, total debt was MXN 26.2 billion, net debt was MXN 21.6 billion, and net debt/EBITDA was 1.31x. For 2026, management now expects CapEx to be about 23% to 25% of revenue; for 2027, it reiterated 22% to 24%.

Enrique Yamuni framed the quarter as evidence that Megacable has moved past a major expansion phase and into a period of execution, monetization, and returns. He emphasized that the company has already expanded beyond 19 million homes passed, upgraded more than 600,000 homes from HFC to FTTH in the first half, and now has 88% of subscribers on GPON. His tone was confident and focused on operational discipline, efficiency, AI-enabled automation, and preserving financial flexibility.

Luis Zetter highlighted the financial performance: revenue of MXN 9.3 billion, EBITDA of MXN 4.2 billion, and net income of about MXN 852 million, with interest expense down more than 19% year over year. He said margin pressure came mainly from labor costs tied to minimum wage increases and staffing from the expansion phase, while CapEx totaled MXN 2.2 billion in the quarter and the 2026 CapEx forecast was reduced to 23% to 25% of revenue. He also pointed to a conservative balance sheet, with MXN 4.7 billion in cash and investments, MXN 21.6 billion of net debt, and 1.31x net debt/EBITDA.

Analysts focused on the one-time Buen Fin promotion, ARPU weakness, CapEx trends, margin recovery, and capital allocation. Management said the promotion affected May and June only, should not recur as a structural drag, and without it revenue growth would have been higher; they also said ARPU should return to slight growth rather than decline. On capital allocation, management said it is open to dividends, debt restructuring, and M&A, but it is not prioritizing debt paydown and is willing to consider control or minority stakes if those are the best options for shareholders.