Megacable 4Q net income MXN720.8M

Megacable 4Q net income MXN720.8M

Megacable Reports Fourth-Quarter Net Income of MXN723.3 Million

Megacable reported a net income of MXN723.3 million for the fourth quarter of 2024, marking a significant increase from MXN523.8 million in the prior quarter. This represents the highest quarterly net income in over two years, reflecting improved operational performance despite ongoing capital expenditures and debt management challenges.

Total revenues for the quarter reached MXN8.6 billion, up from MXN8.5 billion in the previous quarter, with the Mass Segment contributing MXN7.2 billion, or 83.4% of total revenue. EBITDA for the period totaled MXN3.98 billion, with an EBITDA margin of 46.3%, slightly above the 44.3% recorded in the same period of 2023. The margin expansion suggests improved cost control or pricing stability in key segments.

However, net debt remained elevated at MXN21.1 billion, down marginally from MXN22.0 billion in the third quarter. The company's capital expenditures (CAPEX) for the quarter were MXN2.3 billion, a decrease from MXN2.5 billion in the prior quarter, indicating a potential moderation in investment pace. Annual CAPEX for 2024 totaled approximately MXN34.3 billion, reflecting continued focus on network expansion and service upgrades.

Net income growth in 4Q24 followed a volatile trend in 2024, with results fluctuating between MXN571.3 million and MXN801.3 million across previous quarters. The year-over-year increase in EBITDA—up MXN715 million from 4Q23—highlights resilience in core operations, though net income remains sensitive to interest expenses and tax adjustments.

Investors will be monitoring debt reduction progress and CAPEX efficiency as key metrics for 2025, with the company's ability to sustain profitability amid competitive pressures in the telecommunications sector remaining critical.

Data sources: Megacable's quarterly financial disclosures (https://inversionistas.megacable.com.mx/en/information-financial-quarterly).

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