Mexican telco Megacable slims capex in Q2

Mexico’s Megacable invested 2.75bn pesos (US$150mn) during the second quarter, 6.2% less than in the same period last year.

The disbursement is in line with the slowdown in the investment cycle expected for this year.

“The number of kilometers and additional houses passed for the quarter reflect a slower pace in the execution of the expansion project,” the company said in its results report.

Megacable closed the quarter with 16.5mn homes passed, growth of 22.7%. The network expanded 13.7% to 98,068km.

In the first quarter, the Mexican operator had invested 2.35bn pesos and for full year 2023, the amount was 12.9bn.

Megacable reported record Q2 revenues of 8.14bn pesos, up 10.3% year-on-year. Revenues for the mass market segment increased 11% and enterprise services 7.7%.

As of June, the company registered 5.18mn unique subscribers, growth of 10.4% compared to end-2Q23. Income generating units reached 13.2mn, up 9.5% compared to the same time 2023.

The company increased its internet subscribers by 11.6% to 4.96mn, 71% of whom receive the service through fiber optics, up 16 percentage points on a year before.

At the end of June, the company had 3.87mn video subscribers and 4.37mn telephone subscribers, growth of 0.6% and 16%, respectively.

Mobile service subscribers – the company operates as a virtual mobile operator – grew almost 20% to 468,685.