We maintain a low-cost structure, making important investments with one of the lowest leverages in the industry, and we continue with an attractive dividend policy, creating value for shareholders.

Message from the CEO


Dear shareholders,


During 2021, the Mexican economy showed a slight recovery compared to 2020, with annual GDP growing 5.0%1 after some of the most difficult months in recent decades due to the COVID-19 pandemic. The country maintained relative financial and fiscal stability2 during the year; despite the volatility of the Mexican currency, the peso recovered and services have begun to reactivate gradually.

The pandemic confirmed the population needs to have a reliable and robust connectivity service to carry out essential activities from home. Therefore, our Internet service is important for the Company since it is crucial for society. In 2021 we achieved outstanding financial and operating results; although we faced a complicated scenario of production and logistics chains, we took advantage of the opportunities and demonstrated the strength of our business model.

During this period, we achieved a significant increase in all mass market services, Internet, Video and fixed and mobile telephony. We reached 4’153,047 unique subscribers, 5.6% more than in 2020. In addition, RGUs3 increased 9.0% compared to 2020, surpassing 10.4 million, thus revenue-generating units per unique subscriber maintained the growth trend and reached 2.5.

This year yielded extraordinary figures for Megacable. Total revenues for the year 2021 reached Ps. 24.634 billion, 10.0% higher than in 2020. This growth was mainly achieved by the 14.0% increase in Internet and 27.0% in Telephony, as well as the 13.0% and 12.0% increase in Ho1a and MetroCarrier, respectively. Still, the outstanding results occurred in both the mass and corporate segments, with the latter standing out, which achieved a larger customer portfolio from the public and private sectors, as a result of the reduction in restrictions due to COVID-19.

Consolidated EBITDA in 2021 increased 9.5% compared to 2020, reaching Ps. 12.081 billion, with a margin of 49.0%. Adjusted EBITDA for cable operations was Ps. 11.433 billion, 10.3% increase against 2020 and with a margin of 50.9%.

During the year, we continued the project to evolve our network and migrate subscribers from HFC to fiber, aiming to offer even faster Internet services, of the highest quality and with the latest technology. This project is essential for Megacable’s development and expansion since the transition to fiber is vital for the future of our Company. We invested in CAPEX Ps. 9.466 billion, which represents 38.4% of annual revenues. Thanks to these strong investments, we completed 85.0% of the project and migrated a significant number of subscribers to fiber optics.



1 National Institute of Statistics and Geography (INEGI)
2 According to financial stability reports from the Bank of Mexico
3 Revenue Generating Units

Results by business segment

Revenue breakdown by segment

We are an innovative and cutting-edge company; we offer services of the highest quality and with the best technology to exceed our customers’ expectations.

Revenue breakdown by service

Internet


We offer high-quality Internet service with connection speeds from 20 megabits per second to 1 gigabyte per second. In addition, thanks to the project to evolve the network to GPON technology, with which we migrated part of our subscriber base to fiber, we now provide a more robust, reliable service with cutting-edge technology.

3,833,893

subscribers; +9.2% vs 2020

Ps. 8.225 billion

revenues; +14.1% vs 2020

Video


Megacable continues to provide several packages to satisfy the needs of the entire population, with a wide range of content, including linear television and integrated streaming platforms.

3,539,822

subscribers; +3.7% vs 2020

Ps. 9.486 billion

revenues; +2.5% vs 2020

Xview+


In February 2021, we launched the Next Generation Video Xview+ platform, which provides a friendly, personalized and interactive experience, merging content from traditional television, streaming platforms and video on demand in a single digital device with the latest technology. Xview+ has interactive functions such as start over –which allows the user to watch a program from the beginning–, reverse EPG –which goes back in time to see the programming of the last 48 hours– and the option to record programs from the wide selection of channels. Furthermore, with the Xview Mobile product, our subscribers can enjoy all the features and content of the traditional platform on their mobile devices.

The ability of our Xview+ product to integrate all video content on a single platform ensures an exceptional and user-friendly experience for subscribers.

This service combines traditional content transmission technology with its transmission over the Internet; therefore, the migration from HFC Internet to fiber is very significant for Video subscribers.

107.5 %

growth

1.2 million

Net adds vs. 2020

2.4 million

set top boxes in 2021

Telephony


Our cable telephony service adjusts to the needs of each market segment, offering unlimited local, national and long-distance calls to the United States and Canada, both for the residential sector and for businesses.

3,031,119

subscribers; +15.4% vs 2020

Ps. 2.350 billion

Revenues; +27.3% vs 2020

Mobile services


During 2021, we consolidated our mobile services offer, reaching 428,000 subscribers and revenues for more than Ps. 313 million.

428,000

subscribers; +146.5% vs 2020

Corporate segment


This segment’s services are based on innovative global trends, with applications to different industries and with a focus on business continuity, increased productivity and a high level of integration in hybrid multi-cloud environments.

The corporate segment was one of the most affected during the pandemic, due to the restrictions of COVID-19 and the migration to home office. However, in 2021 we achieved a significant recovery in the segment.

Revenues from the Corporate Telecom segment grew 8% compared to 2020, driven by a 13% recovery from Ho1a, due to greater dynamism in the government and corporate segments, while MetroCarrier grew 12%, driven by revenues in the connectivity segment.

The segment’s results show a trend of sustainable growth, reaching Ps. 4.198 billion; +7.5% vs 2020.

We are a responsible company; we are committed to mitigating the impact of our operations, always seeking the satisfaction of our subscribers and other stakeholders. Therefore, we have implemented initiatives to protect the environment, for example, paperless campaigns, recycling of products at the end of their life cycle and use of low energy consumption technologies.

Furthermore, we aim to increase the well-being of Mexicans being an important source of employment. We constantly seek opportunities to improve the quality of life of our employees, thereby positively impacting the communities where we operate.

Recent years have shown that our services are essential, and we will strive to connect more and more people, providing high quality products at affordable prices for all Mexicans.

In the coming years, we will continue the expansion strategy to reach more and new markets, with the goal of evolving into a national company, always focused on being an agent of change for communities, as well as maintaining our financial strength and increasing our performance and efficiency levels, creating added value for all our stakeholders.

I am grateful to all our employees, shareholders, members of the Board and customers for their support and dedication, as well as for the continued trust they place in Megacable, which drives us to be the best telecommunications company in Mexico.

Sincerely,

Enrique Yamuni Robles
Chief Executive Officer