Megacable Holdings

Greetings and good morning, and welcome to Megacable's fourth quarter 2021 earnings conference call. With us this morning from Megacable, we have Mr. Enrique Yamuni, 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 forelooking statements on the company's future financial performance and prospects, which are subject to risks and uncertainties. Megacable undertakes no obligation to update or revise any forward-looking statement. I'll now turn the call over to Mr. Enrique Yomun. Sir, you may begin.

Thank you very much, and good morning, everyone. Thank you all for joining us today. This quarter represents the end of another challenging year in which the health issues that we have been facing since 2020 prevailed. and in which we observed a slower economic recovery than first anticipated. However, the company continues to demonstrate its ability to adapt and execute based on the need of our subscribers. This allowed us to record quarterly need net ads in the three services of the mass segment, as well as double-digit growth in revenue EBITDA and net income in the financial side. including the best quarterly revenue figure for the corporate segment in the last two years. The preference of our subscribers is reflected on solid churn rate and ARPU quarterly figures going down. As the company remains focused on offering competitive services at an attractive rate, such as our broadband service that continues to be considered essential in our new generation video platforms. It is important to highlight that we continue to grow in the video segment, even above market levels, with XView Plus being an important contributor to this increase, as more subscribers are using the integration and interactive capabilities of the platform, reaching approximately 75 million monthly interactions. The subscribers' growth in our culture of tight cost control are the main drivers for the results in revenue and EBITDA, with each quarter, which each quarter continues to register record figures, as a consequence, we probably maintain the highest margins in the sector. On the other hand, the corporate segment continues to perform, given the good results in OLA and Metro Carrier. This period represented the best quarter figure for this segment since the end of 2019. We are confident that this growth trend will continue and the performance of these businesses will benefit from the geographical expansion of the company. Despite the softening of social distancing measures, the momentum of the business segment supported by the strong demand for connectivity services validates our strategy of investing in the expansion of our footprint into higher potential markets. Speaking of the investment in the project that we are carrying out of the Network Evolution Project is close to be completed. The migration of these territories to a state-of-the-art technology has allowed us to strengthen the service we provide and to secure our position in a very competitive environment. As we have stated before, this project represents a milestone for the evolution of the company's services. In the same line, we are also advancing in our strategy to enter new markets. We have already started to activate some of these tranches, and we are optimistic about the results that we have seen so far. The contribution to revenues and subscribers growth coming from the new footprint should be a major boost to growth generation in the coming periods. The capex figure for the quarter is in line with the projects the company is executing. These strategies will be also reflected in revenue and subscriber growth, as well as the expansion of the corporate segment to new territories, and in the case of the migration initiative to GPON technology, savings on investment in future careers. To conclude, we are very satisfied with the quarterly results, and the projects achieved in our strategic growth plans. We have a lot of work to do. at the site of the opportunities and challenges that await us in 2022. In this sense, we expect that the outlook and trajectory of our businesses in 2022 and coming years will continue to be positive, especially in terms of the additional contribution coming from the expansion into new territories. I will turn the call over to Raimundo to discuss our operational performance. Raimundo, please go ahead.

Thanks, Enrique. Good morning, everyone. As Enrique mentioned, the fourth quarter has been an extension of the excellent operating results that we have been recording throughout the year. Our focus continues to be the growth in both the mass and corporate segments and to achieve a high operating efficiency through a clear emphasis towards network evolution, the development of our video service, and the expansion into new territories. The previously mentioned, together with the constant development of our network, has helped us to position our services in the preference of these subscribers. This growth trend led us to reach close to 4.2 million unique subscribers at the quarter end, increasing 6% versus the fourth quarter, which translates into 220,000 net additions year on year, out of which 52,000 correspond on this period. By segment, The demand for bandwidth, as trends like streaming and gaming become more popular, and the fact that for many families this service is considered essential for day-to-day work and learning, have created an opportunity which the company continues to take advantage of with quality services. Broadband subscribers rose to more than 3.8 million, recording net additions of 324,000 and 81,000 compared to the fourth quarter 2020 and third quarter 2021. Video subscriber rose to more than 3.5 million, recording 127,000 net ads for a 4% growth when compared to the same quarter of last year. On a sequential basis, 24,000 net ads were recorded. Our XView platform continues to grow. going from 1.2 million subscribers at the end of the fourth quarter of 2020 to 2.4 million this period, an increase of 107.5%, or roughly 1.2 million net additions. The telephony segment recorded a little over 3 million subscribers, going 15% and 3% compared to the fourth quarter of 2020 and third quarter of 2021, respectively, and implying 404,000 net ads and 97,000 in December. The mobile subscriber totaled 428,000, with 83,000 net additions versus the previous quarter, maintaining its upward trend. The positive impact of our marketing endeavors and high level of customer satisfaction, despite a highly competitive environment, is reflected on stable short rates that remain below pre-pandemic levels. with broadband at 2%, video at 2.2%, and telephony at 2.4%. On a sequential basis, video and telephony show rates decreased, and broadband remained practically unchanged, also contributing to subscribers' growth. At the end of the quarter, REUs doubled 10.4 million, 9% more than the 9.5 million of 2020, driven by subscriber growth in the three mass segment services, also reflected in the REU's per unit subscriber, which went from 2.43 million in 2020 to 2.51 this reporting period. ARCU per unit subscriber stood at pesos 422.6, a significant growth of 4% compared to the last quarter of 2020, while on a sequential basis, it increased pesos 11.1, achieving the highest growth since the end of 2019. This was driven by the increased focus on the sale of triple-play packages, rate increases, seasonality, and the contribution of add-on services, such as the XView platform. Turning to our book by segment, all services grew on a sequential and annual basis. Broadband increased 3% and 1% compared to the fourth quarter of 2020 and third quarter of 2021, respectively. Video 1% and 3%. while telephone increased 9% and 2%. Now, regarding the YIP on migration, client perception in relation to this process has been positive, as evidenced by the evolution of churn rates, as we have improved network performance and set the appropriate infrastructure to continue growing for several years. With respect to corporate segment, the revenue figure was the highest for acquirers in the end of 2019, reflecting the growth trend we have seen in the recent quarters. This was generated mainly by OLA, which achieved 25% growth during this quarter in light of more dynamic public and private segments. In addition, MetroCard grew 20% in the same period, supported by revenue coming from small and medium enterprises. Moreover, MCM revenue posted growth when compared to the previous quarter and the same quarter of last year, as it continues its recovery trend. Towards 2022, the growth of the company will be leveraging both in the existing footprint and the new territories. Our high-quality and attractive commercial proposal will be our differentiators in very competitive markets. With this, I conclude my remarks. Now, I would like to hand the call over to Luis, who will shed broader color on the financial results.