Megacable Hldgs Sab Ord

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.

Thank you, Raimundo. Good morning, everyone. Before I begin, I would like to emphasize that all comparisons to 2024 numbers are made against the 2024 audited figures presented on April 29 of 2025. With that context in mind, throughout the year, The disciplined execution of our strategy focused on consolidating new territories and continuing to drive efficiencies across our legacy operations, translated into solid revenue growth, healthy profitability, and further progress in the soft landing of our investment cycle. In this sense, total revenues reached 9.2 billion pesos during the quarter, an 8% increase year-over-year, living by robust performance in our mass segment, where revenues grew 10% year-over-year and continue to be our main source of revenue. This double-digit growth more than offset a 3% contraction in corporate telecom segment revenues. Similarly, 2025, total revenues reached 35.4 billion pesos, representing an 8% increase over 2024, following a 10% year-over-year growth in the mass segment, supported by the combined effect of an expanding subscriber base and continued ARPU improvement. Before moving to cost and profitability, I would like to clarify that four quarter 2024 figures include specific extraordinary accounting adjustments made during the audit process, particularly the cancellation of account receivables with Altan, which increased the cost and SG&A base in that period, consequently affecting positively EBITDA and net income comparisons made. Now, turning to quarterly cost of services and SG&A, These amounted to 2.5 billion pesos and 2.7 billion pesos respectively, increasing 6% and 1% year-over-year, remaining below revenue growth. For 2025, cost reached 9.6 billion pesos, reflecting a 5% rise compared to 2024, while EG&A totaled 9.9 billion pesos, representing 6% year-over-year growth. These results are mainly attributable to the expansion of our network footprint and higher labor costs, which were partially upset by efficiency gains as newer territories continued to mature. Excluding the receivable write-off effect, total cost and SG&A for the quarter continued to grow at a slower pace than revenues, reframing the strength and operating discipline of our business. EBITDA totaled 4.5 billion pesos in the quarter, increasing 15% year-over-year, with a margin of 44%, favorably compared to 41.3% in the same period of last year, supported by continued efficiency improvements mainly in new territories. It's important to note that although the EBITDA margin in this quarter is the lowest of the year, this aligns with historical seasonal patterns. as the four-quarter traditional records the lowest margin. Following this performance for 2025, EBITDA grew 11% year-over-year, reaching 15.9 billion pesos, with a margin of 45%, up 120 basis points compared to the previous year. Excluding the one-off impact of SG&A, quarterly EBITDA increased 8% year-over-year, while full year EBITDA rose 9%. Net income for the quarter was 721 million pesos, increasing 15% sequentially and 74% year over year. Likewise, 2025 net income amounted to 2.8 billion pesos, representing 20% growth versus 2024. Both results reflect the strength of our operating performance and an improvement net comprehensive financial result. Quarterly net income, excluding the all-time write-off, increased by 33%, while full-year growth reached 18%. As we have already mentioned, profitability will strengthen further as depreciation continues to stabilize and the newly integrated regions mature. Turning to the balance sheet, net debt ended the year at 21.5 billion pesos, decreasing both sequentially and annually. Together with solid EBITDA generation, this contributed to the net debt to EBITDA ratio decreasing from 1.45 times in third quarter of 2025 and 1.50 times in fourth quarter 2024 to 1.35 times this period. Similarly, our interest coverage ratio stands at six times, remaining at healthy levels and providing the flexibility to meet obligations while continuing to execute our long-term strategy with discipline and consistency. As a result, we maintain one of the strongest leverage profiles in the sector, alongside a wealth balance mature structure. Capits for 2025 remain consistent with our full-year investment guidance, closing at 9.1 billion pesos, decreasing from 10.3 billion pesos in 2024. representing 25.9 percent of total revenue in line with our objective of 26 percent likewise capex to revenue ratio for the quarter declined from 29.2 percent in fourth quarter of 2024 to 28.2 percent in four quarters of 2025. This clearly reflects a deceleration versus 24 levels and reinforces the company transition to a lower investment intensity phase. As the consolidation of investment begins to be reflected in the results, cash generation driven from EBITDA minus CAPEX interest and taxes and leases show a strong performance. It rose from one point $75 billion in 2024 to $4.68 billion in 2025, representing 1.6 times increase. This progress confirms the effectiveness of the strategy focused on the company's ability to generate sustainable value. Looking ahead to 2026, we will continue balancing profitable growth with discipline and prudent capital allocation. Our priorities remain focused on delivering positive free cash flow, preserving our investment-grade credit profile, and further advancing the moderation of recent investment across bulk expansion and legacy markets while maintaining a lower investment intensity profile. In summary, we close the year with solid profitability, strong EBITDA performance, and improved leverage. All wide meeting our CAPEX targets. This strengthened operational and financial position will allow us to face future challenges from a solid foundation and generate long-term value for our shareholders. Thank you for your trust. I will now open the floor for questions.

If you have a question, please use the Raise Your Hand button of your Zoom application, or you can also type your question in the Q&A section of the Zoom platform. Please make sure that you are not muted when it is your time to participate. Our first question comes from the line of Marcelo Santos of JP Morgan. Please, Marcelo, go ahead.

Thank you. Good morning, Henrique, Raimundo, Luis, and Saul. Thanks for the opportunity. I have two questions. The first is about CAPEX outlook. So you were below your guidance, a guidance that I must say that was revised down a few times. So what is the outlook for the next couple of years? Could you provide us some color? Should this go down a bit more or should it stay at its levels? So that's the first question. And the second question is you made it very clear generating a lot of cash. That cash is increasing. What is the use of cash? Because I think you are now generating more than the minimum dividend. So what is the decision? What to do with this cash? Thank you very much.

Luis? Okay. With the CapEx Outlook, Marcelo, thanks for the questions and welcome to the call. We have been consistently delivering, and it's consistent with the message that we have established, that we are going to be reducing the capex to revenues ratio, and that will continue for the future years. Yes, there are some factors that may impact it. the speed of the reduction like the shortage of some chipsets and memories that will impact somehow the reduction of the ratio. But we are positive on the same outlook. We will continue to have a capex for 2026. We estimate between 24 and 26% and going lower than that on 2027.

Thank you. Okay. There was another question. Cash generation.

We have been established generating cash. We have to take in consideration that we have in 2027 due debt that we have to define with the board if we are going to reduce the debt or we are going to do something else with the cash generation. We are still analyzing the position, and we will define in the short term what the strategy should be. But it's a great trouble to have to define what to do with the cash generation instead of dealing with other type of situations.

Of course, it's a sweet problem. Thank you very much.

Thank you. Okay. The next question comes from the line of Fanny Kanumuri from HSBC. Fanny, please go ahead.

Hi, thank you for taking my questions. My first question is that, as you stated, the market is becoming more competitive and the consumer is weaker. So what is the strategy from your side going forward to maintain the 100 to 150K net ads? And the second question is that if you look at your net ads, the broadband net ads are higher than the unique net ads this quarter. And I was just trying to understand, like, why is that the case? And then why have you shifted your output definition to broadband net ads rather than based on broadband net ads rather than unique net ads? Thank you.

Sure, Fani. Well, our study remains focused in both expansion and organic territories. we have a great network. We put investment on the network and the product. We have a great product that we are integrated with different apps. So our strategy is to have the much more efficient price place on the products that we provide to our subscribers, increase bandwidth as we did in January. We're increasing bandwidth to our subscribers and we're providing better apps and products to them so they can get in our company the best service and the best quality. That has, with an aggressive price, proven to drive the growth of this company so far. It is good to mention that we have growth both in organic and expansion or in organic territories. It's not only coming from the new territories we have. So we're not going to move away from what we are doing right, and this is our strategy to have. the unique and the broadband, that works. We have a great growth in broadband on that part that some of them comes with double or triple play. And some of our unique subscribers that is lower on this part is because we are adding broadband to people that have video and video to people to have broadband in that sense. So we're gaining more RUs than what we have in unique subscribers. It was a unique position of this quarter. We expect to have very close growth in organic and broadband, sorry, in unique and broadband subscribers in the future to come. So that will be the answer, you know.

Yes, thank you. And maybe, I mean, just a follow-up on the question. So you had now changing the definition of R4 based on broadband subscribers rather than unique subscribers. Maybe what is the logic behind that move? Thank you.

Yes, we're trying to be more clear to everybody because unique subscriber, it might be confusing as you are having the question. Sometimes we have much more triple play service, sometimes double, and sometimes we do campaigns for broadband compared to existing subscribers. The main comparison in the market is broadband subscribers, which is the majority of the connected homes that we have. in the industry, and that's why we are trying to make a much more clear comparison on ARPU regarding other industry players.

Okay, perfect. Thank you.

Thank you, Fanny. Next question comes from Valeria Miranda from GBM. Go ahead, Valeria.

Hello, everyone. Thanks for the call and congratulations on the result. I have two questions, if I may. The first one is regarding the corporate segment. It has been decreasing for the past quarters, given the change in the commercial strategy you mentioned previously. But when do you expect revenue to normalize and how much would this impact EBITDA? And my second question is, given the increased EBITDA and free cash flow generation, coupled with declining net leverage, can we expect an increased payout in relation to EBITDA versus previous years?

Sure. Let me write. Thank you, Valeria. Regarding the corporate segment, yes, we have a tough year, as we say. But that tough year has good, positive signs also for us. We changed the way that we commercialize some of the products. So now we have a much more contribution on the profitability of that segment. We were selling a lot of infrastructure on a cash basis, and now the market drives us towards more managed services that recognizes income on time, on the future, on a period of time. So we posted a decrease in revenue with a higher margin. in that case and going forward we expect that to normalize we would pretend to have a much more better year than what we have trying to recover the levels of what we have in 2024 for that for that segment as you know we integrate and try to migrate the the strategy of a connectivity company called MetroCard to a much more solution IT infrastructure company called Ola Innovacion. We are maturing that product and that going to the market approach. And we expect 2026 to recover levels as I was saying that. The other one, I don't know, Luis, if you have it. I was writing the first one. I couldn't get the second one. Yeah, I was trying to finish the first one. Maria, can you repeat the second one, please?

Yes. Can you hear me?

Yes.

Thanks. Yeah, given the increased EBITDA and free cash flow generation coupled with the declining net leverage, if we can expect an increased dividend payout in relation to EBITDA versus previous years?

Well, as I mentioned in the previous question, additional generation of cash flow is still not defined where it will go. Our expectation is that it for sure will not reduce the dividend payout that has been given by the company. But it's still a definition from the board. So we expect at least the same approach from previous years and still to define what the outcome or the use of the additional cash flow will be.

That's the happy problem you were mentioning. That's a happy problem. We have always been, Valeria, a very conservative company in that case. We don't expect to change our dividend policies that we have right now on that, but we haven't provided a clear idea of what we're going to do in the future with the excess of cash. talk to the board on that case and do what's the best for the company and and provide a solid balance sheet for whatever it might come in the future whether to repay whether to increase dividends or whether to do something else with that so far we maintain the same conservative approach that we have in the past i i would not discard the uh uh possibility for increasing our dividend

Because if we don't find a better use for the cash, we don't see why we would not increase the dividend. Not as a consistent or as a change in our policy, but if we don't have a better use for the money, I don't think that the board would not consider that. I think that... It's not, you know, talking to experts is not a good idea to maybe get the company to zero debt. I don't know if that answers your question.

Yes, thanks for the response. Thank you. And again, congratulations on the results.

Thank you very much.

Thank you, Valeria. Thank you, Valeria. And the next question comes from Ernesto Gonzalez from Morgan Stanley. Go ahead, Ernesto.

Hi. Thank you for taking our question. It's just on how you're seeing competitive dynamics evolving in Mexico, especially if you could go into what you're seeing in legacy territories and in new territories. It would be great. Thank you.

Sure, Ernesto. As you all know, we have a very competitive market here in Mexico, and we've been having that for quite some time already. Our strategy is very simple, you know, keep the most efficient company in terms of price approach to cost and evidence while being innovative and having the great technology. That's why we put almost 85% of the... of the network is already FTTH, so we can increase the speeds whenever the market requires that, and we continue to invest in the network so we can increase speeds even if we go above the competition. But it's not only about the speed. is also about the complement of the broadband with other services that we call content video content services that's why when we talk about video we don't talk only about traditional pay tv video but we are adding apps we normally provide to our subscribers a combination of apps that makes very attractive to have content from us and that's why we have so many are used coming from video as we stand on that over 2 million apps are already spread among all the subscribers of mega cable so at the end we do a combination of great service good quality good pricing we continue to have the best price on the market while we have the best margin in all, and we're not moving to that. It's a very tight execution, and that's where we continue to focus. At the same time, we expect 2026 to make us a slight recovery for the corporate segment, and we will be focused on trying to increase the growth of that unit towards more IT solution services and not only connectivity. Those are part of the strategies that we have internally, you know. Now talking about competition, well, everybody has different positions, you know. Telmex has approached the non-increase of rates that is very similar to what we have right now, and we do compete with them in terms of providing, as I said, more products that we do have. That's how we managed to increase ARPUs slightly, but increase ARPUs while penetrating the market because we were able to sell more bandwidth and products to our existing subscribers. And at the end, when you compare to the other two competitors, they all have different particularities, you know. Total Play has a higher ARPU on that part and some financial constraints on that part that make us be more aggressive and flexible. towards that company in particular. And then INSEE continues to maintain their HFC approach with their subscribers. So it's going to cost them more to increase bandwidth compared to what we have right now. So we know what competition is tough on that part, but we know what our advantage is to all of them. even compared to other technologies like broadband, like mobile, fixed mobile, that is not done in this market because of not capacity enough from the mobile services. And satellite, which is targeted, as well as other parts of the world, is targeted at a much more higher price and aimed to rural areas and not urban. Okay, that's pretty much my vision of the competitive dynamics here in Mexico. Really clear. Thank you.

Thank you, Ernesto. And the next question comes from Luca Brandon of Tanks America. Go ahead, Luca.

Good morning, everyone. Thank you for taking my questions. I have two on my side. The first one, if you could comment a little bit on what do you expect in terms of EBITDA margin going forward? If we should continue to see a similar pace of increase for next year compared to what happened in 2025 versus 2024? And how high do you think margins can go in the long term? And then a second question, regarding the new regulator in Mexico, have you already seen any difference or something that has impacted the company that we should be aware about with the new regulator? Thank you.

About the new regulator, let me talk about the new regulator. I think the new regulator is taking a very good approach. I think that it's a good surprise for us. We think that they're very much aware of the competitive scenario or that landscape in Mexico. I think they will be a good player, let's put it this way, in the market. They will. They're very conscious of what I think. and do a good diagnosis of what's needed to get a much better competitive landscape in the market. And the other question was?

On margins. On the margins and the expectation for the future, as we have seen, The organic territories has sustained on very good levels, not at the 50% that we had in the past, but 48% to 49%. And it's very consistent. And we are also increasing the EBITDA margins on the expansion territories. So our expectation is that the margin overall is going to continue expanding. And we foresee around 50 basis points, which is consistent with the latest year's growth, 50 basis points expansion per year, and reaching 47 to 48% by 2028, more or less.

Perfect. Very clear. Thank you for the answers.

Thank you, Luca. And the next question comes from Pablo Ricalde from Itaú. Go ahead, Pablo.

Good morning, Vega. I have one question on your pricing strategy for 2026. When do you expect to raise prices? I remember last year you did the one in March, April, if I'm not mistaken. Just trying to check when do you expect to raise prices this year?

Sure, Pablo. We have one price increase already in January that we did. But the way that we do price increases is divided among all the different segments of our subscriber base. Let me explain to you. When you have new subscribers, the price increase comes when the promotional price finish. When you have all subscribers, it comes once a year. Or when you have subscribers that has been having an upgrade or downgrade, in the service, the price increase will come when that operator downgrade finish. So it is tough to say one time of the year, but the first that we had was in January, and we may have another one for another subscriber base by the third quarter of the year.

Perfect. Very clear.

Thank you, Pablo. Thank you, Pablo. Now we come for another question from Andres Ortiz from BTG. Go ahead, Andres.

Hello, gentlemen. Thank you for taking my question. I would like to double tap on the competitive environment. I recently saw that your basic plan now offers 200 mechs. I believe you are competing more in speed now, right? Yes. offerings have increased much earlier over the past years. So we just want to understand what's your view on that and what competition are you seeing? Are they following you? Is it more difficult today to increase output through this view or what should we think of that? And I will have another question after that. Thank you.

Thank you for the question, Andres. I will expand on the first explanation I did about the competitive. Yes, we increase the speeds to 200 Mbps. We have a brand new network. It doesn't require from us additional CAPEX that what we have before. All our network can be upgraded to different speeds still to our subscribers without requiring that. But it's not only bandwidth what we're providing to subscribers. As I said, we're increasing the content proposition in terms of apps and trying to maintain the proportion of double to triple play packages. That means video over broadband and telephony. We are one of the highest providers of video in the market. But all of that at a very affordable price that can help us penetrate the market. We do not increase ARPUs more significantly because we continue to grow from the expansion territories. And when you have a large base of subscribers coming from promotional or promotion prices, they have a lower ARPU. That's why Luis was explaining that we expect also as expansion continues to grow in the future, margins to come to the levels that we have. Not the 50, but levels of 47 to 48% total in the two or three years to come. That might resume the competitive landscape that we have on the bandwidth. It also remains that our technology can be upgraded, not from what we have right now in JIPON, but this ex-JIPON that we have and we can do in areas, strategic areas, where we're required for high-end customers. So we're very, very, very, very strong for the future in terms of bandwidth, and that will also help us to compete with other technologies, whether it's wireless or satellite, in the future to come. So fiber is still the name of the game for broadband, and that's part of our strategy. That's a strong part of our strategy.

Thank you. My follow-up will be exactly on margins. You mentioned that for the long-term 47%, 48% makes sense. That will be for the cable operations, right, not the consolidated business?

It will be for the whole company. It's for the whole company.

Okay. Thank you.

Thank you, Andres. At this moment, we don't have more questions in the line, but we have one question from David Seaman from Alpha Cygni. Can you please discuss the standalone streaming app economics and the strategic value to the firm of this offer? Thanks.

Sure, David. Well, as of today, we try to keep the streaming app strategy tied to our XView platform. we believe it's the best proposition for the subscriber and the best for the organization. So if somebody wants to have a big offer or a good offer on streaming, they have to be part of our XView platform so far. We have some markets and some customers that we can provide to them single apps to the broadband subscriber. But as of today, we are trying to keep all tights. and just provide a single proposition. Whether you want broadband, you have 200 megs. Whether you want broadband with content on that part, you get the best of the XQ pay TV platform, call it that way, plus streaming that is included from that price. And that's the strategy that we have so far.

And we have a follow-up from David. Luis, could you explain the expected deferred tax dynamic as CapEx begins to normalize over the next few years?

Sure. Yes, we benefited on the tax levels from the deferred taxes. And we expect a consistent slight reduction over the next few years, as he mentions that CapEx is normalizing. So we expect a slight reduction over time.

Okay. We have no more questions.

questions uh so now i'll pause the call over to mr yamuni for final remarks okay thank you very much and uh uh as always it's a pleasure to discuss our results with you please contact our investor relations department if you have any questions or concerns regarding the company uh please uh we're grateful with you for being in this conference and in the future conference and your interest in the company. As always, we will put our best effort to deliver great results to our shareholders and great results for the communities where we serve. Thank you very much and have a great weekend.

Thank you all