Megacable Holdings

Good morning. Welcome to Megacable's fourth quarter 2025 earnings conference call. With us this morning we have Mr. Enrique Yamuni, CEO, Mr. Raimundo Fernandez, Deputy CEO, and Mr. Luis Eter, 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 owner takes no obligation to update or revise any forward-looking statement. I will now turn the call over to Mr. Enrique Yamuni. Sir, you may begin.

Good morning, everyone, and thank you for joining us today. As we close our 2020 fight, we remain focused on our long-term strategy, expanding and modernizing our network by migrating our base towards Calgary. Strengthening our value proposition through quality service and competitive pricing. And most importantly, transitioning from a phase of high investment in construction to a period of consolidation, efficiency, and stronger cash flow generation. Beyond the numbers, our execution is showing up in places that matter most. We continue to gain share, grow ahead of the market, and reinforce Megacali's position as one of the most reliable telecom operations in Mexico. While delivering continued revenue growth, margin expansion, and a very strong balance sheet. A major driver of our performance over the past quarters has been the scale and pace of our network deployment. When we announced this expansion, it was an ambitious commitment. Today, the results speak for themselves. We successfully took our footprint beyond 19 million homes past. This milestone matters because it marks the beginning of an intensified consolidation phase, where we will increasingly capture the returns from the footprint we have already deployed. Unfortunately, we keep solid momentum across both our expansion territories and our legacy footprint. Broadband remains the engine of our portfolio, and we once again close the quarter within the 100,000 to 150,000 quarterly net ads range we have consistently communicated over the last two years. At the same time, we saw a sequentially lower churn while Alarhu reached one of its highest levels, reflecting the effectiveness of our bundling strategy in driving retention and growth. In parallel, we continue strengthening our fiber footprint, reaching 84% of our subscribers, served through fiber technology at the end of the quarter. With this level of penetration, we are firmly positioned as a fiber-based company, while limited legacy technologies remaining only in transition areas. This position positions us to deliver superior service quality, higher bandwidth capabilities, and a scalable operating platform to meet growing demand for high-speed connectivity. These results were delivered in a market that remains price sensitive and closely tied to macro conditions, particularly across lower and middle income households. Even so, we continue to compete effectively with by combining service quality, competitive pricing, and a portfolio that meets evolving customer needs. From a financial perspective, the operational momentum continued to translate into solid top-line growth and improving profitability. As you will hear from Liz, the mass market segment again delivered strong performance broadly consistent with what we have seen through the year. While the corporate segment remained softer, resulting in higher single-digit consolidated revenue growth, and also improved reflecting operating efficiencies and the continued maturation of newer territories. On capital allocation, we closed the year fully aligned with the discipline we committed to at the start of 2025. CAPEX intensity finished below the target we set for the year, representing a meaningful step down versus prior years. This confirms the shift we have been executing from heavy investment towards a more normalized and efficient investment profile. As a result, cash flow generation continues to strengthen and it remains one of the most important near-term objectives. We are closing the year with a very solid cash flow profile, supported by improving profitability and lower capital intensity. Looking ahead, we are increasingly confident in our ability to convert earnings into sustainable cash generation as we move through to 2026. On the balance sheet, our focus remains on preserving flexibility and maintaining one of the strongest leverage profiles in the industry. This quarter, net debt and leverage ratio continue to trend favorably, and we expect this to remain the case in the coming quarters as profitability improves and CAPEX continues to normalize. This reinforces the strength and prudence of our capital structure and supports our long-term strategy without compromising financial stability. The quarter's key message is clear. We are seeing the benefits of the investment made over the last four years, not only in subscriber growth and profitability, but also in our ability to deliver what we said we would deliver. And more, that track record is important because it builds confidence in what comes next. What comes next? as we move into 2026 our priorities are clear consolidate growth in the territories we built keep advancing our fiber strategy drive operational efficiency and above all maximize free cash flow generation while maintaining our investment grade profile and executing with the same consistency that has defined this cycle with that I will now pass the call over to Raimundo for operational remarks. Please, Raimundo, go ahead.

Thanks, Enrique, and good morning, everyone. During the fourth quarter, our operating efforts remain focused on consolidating both the expansion of our footprint and the ongoing evolution of our network. These initiatives continue to support improvements in service quality and operational efficiency, while reinforcing our ability to compete effectively across markets, prioritizing value creation and sustainable subscriber growth. Within this framework, by the end of this quarter, our network infrastructure reached more than 108,000 kilometers, representing 7% annual growth and enabling coverage of 19.2 million homes, a 10% increase year over year. Together with the continued migration of legacy infrastructure, these efforts have resulted in 84% of our footprint being served by fiber to the home as of the end of the quarter, compared to 75% in fourth quarter 2024. With this level of penetration, Megacable is firmly positioned as a predominantly fiber-based operator. with only a limited portion of its network relying on legacy technologies. Starting with our subscriber base, during fourth quarter 2025, we added 107,000 unique subscribers sequentially, ending the quarter with more than 5.9 million unique subscribers, reflecting continued traction across both our expansion and organic territories. Breaking down the mass segment services, internet remained the main growth driver. By quarter end, internet subscribers reached 5.8 million, up 9% year-over-year, or 494,000 net additions. Sequentially, we delivered 133,000 net additions in the quarter, maintaining a clear growth trend and staying in line with our expected range. In telephony, we ended four quarter 2025 with 5.1 million subscribers of 8% year over year, representing 372,000 net additions. Sequentially, we added 56,000 subscribers in line with the role of telephony within our bundle value proposition to enhance the overall customer offering. In the same line, Our MVNO base reached 679,000 lines at quarter end, representing an annual increase of 23%. We added 39,000 lines sequentially and 125,000 year-over-year, continuing the growth trend we have observed since first quarter 2023 while maintaining the focus on post-paid services. In our video content segment, We closed the quarter with 4 million unique subscribers, comprised of 3.9 million traditional video users and 151,000 apps-only users. Both of these services accounted for nearly 2 million active streaming app subscriptions at quarter end, up 99% year-over-year or 990,000 subscribers. thousand net additions, reflecting subscribers' preference to complement their video service with more than one digital app. This consolidated video reflects our strategy to further evolve the content segment into the combination of traditional paid TV with a more digitally integrated offering, increasingly aligned with changing consumption preferences. The continued expansion of our subscriber base translates into an increase in our use, which reached nearly 15 million, represented an 8% year-over-year growth. As anticipated, the short rate declined sequentially this quarter across the three mass segment services, reaching 2% for internet, 2.3% for video, and 2.6% for telephony. Regarding ARPU, It is important to mention that starting this quarter, we report ARPU based on internet subscribers, allowing comparison with the rest of the industry. Under this methodology, broadband ARPU stood at 439.8 pesos in this period, while ARPU per unique subscriber was 426.3 pesos, one of the highest levels in second quarter 2022, mainly reflecting the price increases implemented during the year. Turning briefly to the corporate segment, results remained soft during the quarter, and continued market caution. While we did some sequential improvement, year-over-year performance remained under pressure, mainly in the corporate and carrier segment. However, we continued to focus on execution, prioritizing service quality, operational efficiency, and a disciplined commercial approach. Going forward, as Enrique outlined, Our priorities remain consistent, consolidate the expansion and modernization projects already deployed, continue deepening penetration in newer territories, provide the highest quality service to our subscribers, and drive cash generation. In parallel, we will maintain a disciplined commercial approach, mindful of the challenges inherent in a highly competitive market and a slower economic growth. Thank you for your attention. I will now turn the call over to Luis for the financial review.