Megacable Holdings

Good morning. Welcome to Megacable's third quarter 2025 earnings conference call. With us this morning, we have Mr. Enrique Yamuni, CEO, Mr. Raimundo Fernandez, Deputy CEO, and Mr. Luis Zetter, CFO. Let me remind you that the information discussed at today's earnings call may include forward-looking statements on the company's future financial performance and prospects, which are subject to risk and uncertainties. Megacable undertakes no obligation to update or revise any forward-looking statement. I will now turn the call over to Minister Enrique Yamuni. Sir, you may begin.

Thank you, Saúl. Good morning, everyone, and thank you for joining us today. During the quarter, we remained firmly aligned with our strategy and continued with the execution of our expansion and network evolution projects as planned. This disciplined approach has enabled us to sustain subscriber growth above market level, positioning Megacable as the second largest operator in the country by number of broadband subscribers. The achievement reflects our commitment to becoming a leader player in Mexico's telecommunications sector. A key driver of this progress has been the expansion of our infrastructure, During this period, we successfully reached our goal of doubling our infrastructure by number of homes passed compared to those at the expansion announcement, making a significant milestone three years into the execution of this initiative. Today, our network is capable of serving 82% of our subscriber base through Fiverr, a tangible result of our strategic investments. We have already captured over 50% of the subscribers originally targeted in those territories, and we continue working diligently to increase penetration and reach the next set of objectives. In parallel, we have made substantial progress in our network evolution project, migrating subscribers to a state-of-the-art fiber network. This effort is part of our clear vision to become a full fiber operator in the medium term, enhancing our competitive edge. We are proud to offer a robust service portfolio with competitive pricing, bandwidth, tailored to evolving needs of our customers, and outstanding customer service. This is evidenced by our performance in key indicators, such as Net Promoter Score, which continues to improve quarter over quarter. Operationally, we remain focused on driving value to quality service and fair prices. In this sense, ARPU increased both sequentially and for the first time in the last 12 months on a yearly basis, thus reflecting the strength of our value proposition and the positive impact of recent commercial adjustments. From a financial standpoint, subscriber growth has consistently translated into revenue growth. Our mass market segment has maintained high single-digit growth with an acceleration observed during this period. Likewise, consolidated EBITDA has increased its growth pace, resulting in margins expansion on a year-over-year basis, a trend we expect to sustain in the coming quarters. Our capital investment levels are showing a clear deceleration trend, excluding extraordinary investment projects. Our organic capex has declined to meet teams, aligning with global best-in-class telecom operators and aligning the foundation for a more efficient investment structure going forward. As a result of this lower capex intensity and continued EBITDA growth, We are approaching our cash generation target this year. We expect to be cash flow positive before dividends payments and very close to achieving net cash flow even after dividends. It is also worth noting that throughout this investment cycle, our debt levels have not increased significantly. We maintain a solid balance sheet with one of the lowest leverage ratios in the market. This highlights the efficiency with which we have executed our initiatives and positioned us well to capitalize on future strategy investment opportunities. Our financial strength has been recognized again by the rating agencies, as HR Ratings Confirms referenced our AAA rating this quarter, following futures rate confirmation in the second quarter. These rating actions reflect the quality of our balance sheet, the consistency of our performance and strength of our long-term outlook. As we approach the final quarter of the year, we remain committed to execute our fiber deployment strategy, consolidate growth in new territories, and drive operational efficiency. Above all, Our focus is on maximizing free cash flows and solidifying our position as Mexico's most reliable telecommunications platform to preserve the strength of the Mega Cable brand, which millions of households and businesses across Mexico have come to rely on connectivity and entertainment. All this said, now I pass the call over to Raimundo for operational remarks. Please, Raimundo, go ahead.

Thanks, Enrique, and good morning, everyone. As Enrique just noted, this was another quarter of steady progress. Our results reflect the continued momentum of the core business, reaffirming this trend of our strategy and our ability to adapt to shifting market dynamics and evolving customer expectations. Our subscriber base continues to grow, both in new territories and in expansion areas, where penetration levels keep increasing. And more importantly, this growth in our base has consistently translated into revenue increases, particularly during this period where mass market segment revenues accelerated. Let me walk you through the key operational metrics of the quarter. We ended the quarter with nearly 5.9 million unique subscribers and an increase of 9% year over year, equivalent to 506,000 net additions. In this quarter alone, Net additions reached 122,000, slightly below last quarter's, but well within internal expectations, in line with the consistency of our performance. In the internet segment, subscribers totaled almost 5.7 million, up 10% versus third quarter 24, representing 528,000 net additions, of which 129,000 were at this quarter. This performance reflects strong demand for high speed connectivity, even following the price adjustment implemented at the start of the quarter, highlighting the continued relevance of our value proposal, particularly in price sensitive markets. Regarding our video segment, we closed the quarter with nearly 4 million unique content subscribers, including 3.9 million of linear TV and 124,000 users with streaming service coupled only with our broadband solution. Within the linear TV segment, XView continued to expand, reaching almost 3.7 million users as 9.9% year-over-year increase with 333,000 net additions. In telephony, we surpassed the 5 million subscriber mark up 11% versus the prior year, equivalent to 490,000 net additions with 98,000 net additions during the quarter. While this service remains primarily complementary within our bundles, its expansion contributes significantly to customer retention. Turning to our mobile virtual network operator business, our MVNO, Total lines reached 640,000 with 21,000 net ads this quarter and 128,000 over the last 12 months. Growth remains focused on post-paid offerings, continuing the upward trend since early 2023. We closed the quarter with 14.6 million RUs of 8% year-over-year, driven by a steady subscriber growth in the mass market. Whilst revenue-generating units per unique subscriber stood at 2.49, ARPU improved to 422.3 pesos, up from 418.9 pesos in the same period last year and 421 pesos last quarter. This figure reflects pricing optimization, despite a bundle mix more inclined towards double play. Our expansion and modernization of network continues to be core drivers of our growth. Our infrastructure now extends to 107,000 kilometers, allowing to serve over 18.7 million homes, up 10% from last year. As of quarter end, over 82% of our subscriber base was already connected via fiber, compared to 73% in the same period last year. a clear indicator of the progress made towards becoming a full fiber operator. Shorn levels stood at 2.3% for internet, 2.7% for video, and 2.7% for telephony, reflecting the price adjustment carried out at the beginning of the quarter, and despite the upward fluctuation within reasonable levels. It is important to mention that based on seasonal patterns, we anticipate Shorn to improve toward next quarters. In a nutshell, our mass market segment remains the primary engine of growth and profitability, driven by expanding coverage and improved operational leverage in both legacy and developing markets. By contrast, the corporate segment remains soft, consistent with trends seen earlier this year, mostly attributed to an economic slowdown in the corporate segment. Undoubtedly, competitive conditions in this market have intensified. With greater fiber availability, there has been an increase in the supply of available services, which has negatively impacted market prices for these services. On the positive side, the integration of the corporate segment has progressed steadily under the business tech model. As part of this merger, we have focused on evolving the business model, shifting from generating most of our revenue from equipment sales to managed service models, which generate a larger recurring revenue base. This has had a temporary effect on the results of these nine months of 2025. However, we expect greater stability and recurrence in revenue as this consolidation matures. Before I close, I want to emphasize that these quarterly results were achieved through disciplined execution and quality service, despite an increasingly competitive and price-sensitive market, as our network reliability, coverage expansion, and bundles continues to differentiate our value also. Looking ahead, we remain focused on preserving momentum to the fourth quarter. which Sean expected to soften in the next waters, territory penetration to move forward, and infrastructure deployment to meet customer needs, we are confident in our ability to deliver resilient results as of year-end. Thank you for your attention. I will now turn the call over to Luis for the financial review.