Megacable Holdings, S. A. B. de C. V.

Strong profitability & “quality of earnings” shift (good): - Consolidated revenue: MXN 9.5bn, +7% YoY (growth moderated vs. 2Q due to slower subscriber adds). - EBITDA: MXN 4.3bn, +10% YoY (outgrew revenue), reaching the highest level in company history. - EBITDA margin: 45.5% (+130 bps YoY and +60 bps QoQ). - Net income: MXN 813m, +30% YoY. - Implication: investors should view this quarter as proof that the company is converting network maturity into margin expansion and earnings quality, not just top-line growth.

Cash generation improved; leverage disciplined (good / watchable): - CapEx: MXN 2.4bn (= 25% of revenue); 9M CapEx MXN 6.5bn (= 23% of revenue). - CapEx guidance: company expects full-year CapEx between 23%–24% of revenue. - Cash generation: EBITDA – CapEx = MXN 2.0bn in the quarter (+25% YoY); MXN 6.3bn year-to-date (+19% YoY), consistent with 2026 cash objectives. - Balance sheet / leverage: after a MXN 1.0bn loan maturity, total debt down ~MXN 1.2bn QoQ. - Cash & investments: MXN 4.7bn (+26% YoY) - Net leverage: 1.21x EBITDA (down from 1.45x a year earlier; within management’s ~1.0x–1.3x target range) - Interest coverage: 6.8x - Credit rating: AAA reaffirmed (HR Ratings), reinforcing financial resilience. - Dividend/buyback: management explicitly said they are considering shareholder returns (including dividends and other uses of cash) but did not commit to a buyback/dividend plan in the call.

Strategy transition: from “scale” to “value” + selective subscriber growth (important): - Company says investment/buildout cycle is largely behind them; next phase is operational efficiency, higher-quality customers, and profitable cash generation. - Subscriber growth slowed by design: more selective promotions/commercial spending and churn discipline. - Customer base trends (operating highlights): - Internet: +60k subscribers in the quarter to ~6.1m (+7% YoY); broadband churn improved (1.9% vs 2.3% YoY). - Traditional video lines: declined (continued migration to digital/apps); video churn also improved. - Fixed voice: +84k lines to 5.4m (+6% YoY). - Mobile MVNO: +64k lines to 845k (+32% YoY). - Surprising/visible detail: they increased full-fiber penetration substantially (to 89% from 82% QoQ), supporting reliability and long-term economics.