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Megacable benefits from upsurge in RGUs

Bnamericas Published: Tuesday, April 26, 2016

Mexican cable operator Megacable posted a 35% year-on-year rise in net profit and 22% revenue growth for the first quarter, attributing the performance to a surge in RGUs stemming from video, internet and telephony services.

The company had 5.8mn RGUs last quarter, up 4% sequentially and up 23% year-on-year, according to a results statement.

Megacable pulled in 4.06bn pesos (US$234mn) in revenue, compared with 3.34bn pesos for the same period in 2015. Net profit was 1.09bn pesos, compared with 809mn pesos.

SUBSCRIBERS

The company now has 1.81 RGUs per unique subscriber, which totaled 3.2mn. RGUs per unique subscriber was up 5% and 19% compared with 4Q15 and 1Q15, respectively.

Telephony subscribers, Megacable said, grew 2% sequentially because of long-distance call rates being eliminated, a reduced mobile calling rate and a drop in interconnection revenues. Year-on-year, this segment grew 20% in 1Q16.

Internet subscribers rose 5% sequentially to 1.92mn, or by 94,000. Year-on-year, the subscriber base grew 32%, or by 471,000.

Video also saw an increase, reaching nearly 3mn subscribers in the quarter, or an additional 5% over 4Q15. Year-on-year, video subscribers grew 19%.

CONTINUED GROWTH

Megacable has been on a positive growth curve for some time now, achieving a 26.3% year-on-year increase in service revenues and a 30% increase in net profit for 4Q15.

Mexican telecom watchdog IFT denied the operator's request to extend concessions to install, operate and exploit public networks last month, so it remains to be seen if it can maintain this pace.

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