Mexican cable operator Megacable has released its financial results for the three months ended 31 March 2014, with net service revenues rising 12% against the corresponding quarter of 2013. In the period under review Megacable generated turnover of MXN2.696 billion (USD203.8 million), up from MXN2.401 billion a year earlier, with revenues from pay-TV services remaining the largest contributor, accounting for MXN1.525 billion of the total, up 6% y-o-y. While turnover from fixed voice services also rose slightly, up by 2% from MXN299 million in 1Q13 to MXN305 million, the increase in internet service revenues was more notable, climbing MXN507 million in the year ago period to MXN591 million, driven by a surge in customer uptake. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) was up 15% year-on-year at MXN1.194 billion, while net income rose by 10% to MXN582 million.
With Megacable having added 37,000 new telephony subscribers in the first three months of 2014, it had 614,497 such accesses on its books at 31 March 2014, up from 568,442 a year earlier. The company, meanwhile, was keen to highlight significant growth in its internet subscriber base, with net additions of 81,000 in the first quarter of 2014, and customer numbers rising by 18.7% year-on-year. As at end-March 2014 the cableco had exceeded one million broadband subscribers (1.032 million), with the solid growth rate attributed to ‘very competitive rates and the fastest connection speed in the market’.
In terms of network development, Megacable said it was continuing to expand its ?bre-optic and coaxial networks, which cover over 48,000km and pass 6.6 million homes, reaching 98% bi-directionality. Having increased its capacity of internet data transportation by 40%, which it said guaranteed a better quality for its services, the cableco also said its digitisation project continued, reaching 34,000 new subscribers over the quarter, representing a 3% increase compared to 4Q13.