Megacable40 rev. MXN9.20B, est. MXN9.15B

Megacable40 rev. MXN9.20B, est. MXN9.15B

Megacable Reports MXN9.20B Revenue, Slightly Above Estimated MXN9.15B
February 19, 2026

Mexican telecommunications provider Megacable (Megacable40) reported revenue of MXN9.20 billion for the period, exceeding the estimated MXN9.15 billion. The company's performance reflects its ongoing strategic focus on internet services and network modernization, which have driven recurring revenue and operational resilience.

Megacable operates a hybrid coaxial cable and fiber network, reaching 11.5 million homes passed and serving 4.4 million unique subscribers as of 2022. Its triple-play bundles (internet, pay-TV, and wired phone) account for 57% of its subscriber base, reducing churn and enhancing revenue stability. Internet services now represent 33% of retail revenue, up from lower video and wired phone contributions (36% and 9%, respectively).

A key driver of growth has been the completion of the GPON Evolution project in 2022, which migrated 40% of subscribers to a fiber network (FTTH), enabling higher-speed internet offerings. The company also announced the MEGA 2024 initiative to expand national coverage, adding over 9,500 km of network in 2022. These investments align with its strategy to capitalize on rising broadband demand, as Mexico's internet adoption reached 75% by 2022.

Financially, Megacable trades at a low valuation multiple of 3.9x EV/EBITDA, reflecting its unlevered balance sheet and cash-generative business model. However, profitability metrics remain modest, with a return on invested capital (ROIC) averaging 13% historically, constrained by declining margins in pay-TV and wired phone segments.

Risks include regulatory shifts that could disrupt bundled service offerings and ongoing competition from DTH providers like SKY and América Móvil in internet and pay-TV markets. Despite these challenges, Megacable's recurring revenue model and fiber-first strategy position it to benefit from long-term bandwidth demand trends.

Dola Capital, Megacable – Analysis and Valuation (2022): Dola Capital, Megacable – Analysis and Valuation (2022).