Megacable Holdings

Good morning and welcome to Megacable's second quarter 2021 earnings conference call. With us this morning from Megacable, we have Mr. Enrique Iwani, CEO, Mr. Raymundo Fernandez, Deputy CEO, and Mr. Luis Zetter, CFO. Let me remind you that the information discussed in today's earnings call may include forward-looking statements on the company's future financial performance and prospects, which are subject to risks and uncertainties. Mediacable undertakes no obligation to update or revise any forward-looking statement. I will now turn the call over to Mr. Enrique Umani. Sir, you may begin.

Good morning, everyone, and thank you for joining us today.

The overall performance of the quarter was positive again, both operationally and financially. In this sense, we observed that the demand dynamics remained solid as the environment has not changed significantly compared to what we saw last quarter. Proof of this is that our net addition growth across all service segments in this period were in line versus those recorded in the first quarter. It is a fact that pandemic accelerated the adoption of technologies and services that favor remote work and learning. In that sense, our expectation is that these trends will persist and that the services we offer will continue to be fundamental to these activities. As companies, schools, and individuals' new day-to-day routine will in most cases involve hybrid schemes, mixing time in physics purposes, offices, and schools with activities from home, maintaining and increasing the need for home connectivity services. Furthermore, we believe that given the economic difficulties faced in recent months due to the pandemic, telecommunication services have gained value and relevance as much more needed services for the users. On the corporate side, connectivity services have been positioning themselves as a productivity driver. These services have been experiencing the same increase in the need to maintain their business, sometimes even higher. We have high expectations for this segment, as this trend has only just begun with companies embracing more and more IT solutions, propelling higher demand for connectivity. All in all, we are capitalizing on the opportunities that the new models are generating, while transforming those aspects of the business that we need to adapt to the new market conditions. Going to our operating and financial metrics We continue to grow subscribers in the three services in the mass market. Highlighting what we achieved on the video side, our XView Plus platform recorded its best quarter ever. It has become a very important cornerstone in the company's growth. Over this platform, we will seek to tap into the recent video consumption trends on digital media while integrating it into the linear content that we already offer. The previous mentioned coupled with the increase in ARPU per unique subscriber when compared to the same period last year helped us reach a record high figure to the company in quarterly revenues and EBITDA. Under these dynamics, quarterly revenue and EBITDA both posted double-digit growth rate. As a result, The EBITDA margin remained in the desired levels under the current conditions and course of the operation. Now, shedding some color on our projects in development, the GPON migration is moving forward, and we have already migrated over half a million subscribers to the new FTTH network. We continue to work on deploying the new infrastructure and speeding up the migration process. We remain convinced that this migration was the right call as a significant increase in bandwidth consumption due to the new content trends accelerated also by the lockdown measures. Neither bus technology platform to render the required navigation speeds as this project guarantees the coming years. Regarding the efforts to expand our network and service coverage, We will continue with our growth plans in specific regions that represent a sustainable and profitable opportunity. Such plans include increasing our presence in some areas of Mexico City where we seek to cover municipalities adjacent to our current network in the state of Mexico. Likewise, we are expanding our coverage for residential services in some nearby areas of some of our current operations like Zapopan and Monterrey. These territories have attractive market conditions that could represent a good opportunity for the company. The same is valid in the case of the corporate segments expansion plans to certain cities, including Tijuana, Chihuahua, Aguascalientes, and San Luis Potosi, among others. In this sense, our growth plans for these cities initially comprise the corporate segment, but we do not discard the possibility of venturing into the mass segment if those markets fit our long-term strategy. Here, it is important to make it clear that we will not take on any endeavor that could be unreasonable in terms of costs or in terms of the market. Every final decision we take to enter or not into a particular region is based on a true market study. To conclude, under economic recovery amid COVID-19, We will continue to consolidate the attractiveness of the product portfolio we have built. As we have been doing recently on the corporate side, we expect to continue capitalizing on the positive market circumstances to strengthen our position and continue to deliver excellent results and value to our business associates, customers, and shareholders. With this, I pass the the work to Raimundo so he can give you a more in-depth vision of the operations. Thank you. Raimundo, go ahead.