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Edited Transcript of MEGACPO.MX earnings conference call or presentation 30-Apr-19 4:00pm GMT

Q1 2019 Megacable Holdings SAB de CV Earnings Call

Guadalajara May 7, 2019 (Thomson StreetEvents) -- Edited Transcript of Megacable Holdings SAB de CV earnings conference call or presentation Tuesday, April 30, 2019 at 4:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Enrique Yamuni Robles

Megacable Holdings, S. A. B. de C. V. - CEO, MD & Director

* Luis Antonio Zetter Zermeño

Megacable Holdings, S. A. B. de C. V. - Chief Financial & Administrative Officer and Finance Director

* Raymundo Fernández Pendones

Megacable Holdings, S. A. B. de C. V. - Deputy CEO

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Conference Call Participants

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* Carlos Antonio de Legarreta Diaz

GBM Grupo Bursátil Mexicano, S.A. de C.V. Casa de Bolsa, Research Division - Research Analyst

* Guilherme Haguiara

Banco Bradesco BBI S.A., Research Division - Research Analyst

* Marcelo Peev dos Santos

JP Morgan Chase & Co, Research Division - Senior Analyst

* Kenia Vargas-Trent

i-advize Corporate Communications Inc. - Senior Associate

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Presentation

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Operator [1]

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Good morning. My name is Caralina, and I will be your conference operator. At this time, I would like to welcome everyone to the Megacable's earnings conference call. (Operator Instructions) Thank you.

I will now turn the call over to Kenia Vargas with i-advize Corporate Communications for opening remarks.

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Kenia Vargas-Trent, i-advize Corporate Communications Inc. - Senior Associate [2]

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Thank you, and welcome to Megacable's First Quarter 2019 Conference Call. At this time, I would like to introduce Megacable's management and today's presenters. Mr. Enrique Yamuni Robles, Chief Executive Officer; Mr. Raymundo Fernández, Deputy Chief Executive Officer; and Mr. Luis Zetter, Chief Financial and Administrative Officer. They will be discussing the quarterly results before moving on to the Q&A session.

It is important to mention that certain comments made today may constitute forward-looking statements, which do not account for future economic circumstances, the company's performance or financial results. These are subject to various conditions and could materially change throughout the year. Please review the complete disclaimer presented in the financial earnings report that was issued yesterday. You may contact us at (212) 406-3696 if you did not receive the quarterly report or if you need any assistance.

At this point, I will turn the call over to Mr. Enrique Yamuni to begin his presentation. Please go ahead, Mr. Yamuni.

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Enrique Yamuni Robles, Megacable Holdings, S. A. B. de C. V. - CEO, MD & Director [3]

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Thank you very much, and good morning, everyone, and thank you for joining us today as we review the results for the first quarter. During this challenging economic environment, we took advantage of the dynamism of our operations by optimizing our processes and making the necessary modifications to our (inaudible). This enabled Megacable to report increases in revenues, driven by solid ARPU growth.

Regarding the challenges that faced -- that we face today, the economy has not recovered at the pace we expected since the second half of last year, impacting the pace of public and private investments. However, the company has counteracted by focusing commercial efforts on those subscribers with higher ARPU contribution. We are happy to report that this has resulted in another record high number of ARPU per single subscriber.

On the other side, the above mentioned generated lower-than-expected subscriber growth in the 3 market segments. Nonetheless, we believe that it was a necessary measure to guarantee the quality of the net additions and optimal churn rate levels for future periods.

Regarding XView, during the last 12 months, we have doubled the number of subscribers with this service. As stated previously, our objective is to make this service available for our entire base. Thus we're starting to offer this product even in the lower level packages. We're confident that the features and capabilities of this platform will be the differentiator and the main driver for the prevalence of the company in the video and pay television service.

The Corporate Telecom segment continues to perform very well, recent revenue increases during the quarter. In particular, it's important to highlight the growth of Metrocarrier, which continues to increase its footprint in the on-net and off-net series of the company as well as to expand its portfolio of solutions, plus it's now able to offer more integrated services tailored to the needs of each customer.

Moving on to financials. In addition to double-digit growth in revenues, the company recorded the largest consolidated EBITDA figure ever in its history. This was a result of a quarter of responsible investment and expenses control.

Regarding the MBNL, we believe that the promotion period we announced last January was successful and led us to reach more than 62,000 product users. We continue to analyze all the moving parts for this product to be successful, including making sure, before they had launched, which niches and regions we can efficiently target.

During the quarter, we continued with healthy levels of CapEx, while we also successfully carry on with our special projects that soon will reach their final phases included -- includes the submarine cable, the growth of nation-wide links and our first data center with the highest levels of operations to serve our subscribers and the public.

Finally, I'm pleased to announce that at the general ordinary shareholders' meeting, a dividend payment for MXN 1.8 billion was approved, representing 20% of the 2018 consolidated EBITDA, as has been the case in recent years. This amount is larger than the figures stipulated in our dividend policy. The payment will be carried out in one installment in May 2019.

The financial strength we have historically demonstrated as well as our operational flexibility and experienced team will continue to support us as we take on these challenges we come across in the operating environment. This will enable us to grow as an organization and create growth for our shareholders.

Thank you for your attention. At this point, I would turn the call over to Raymundo and Luis so that they may provide us with additional details regarding the company's operating and financial results. Please go ahead, Raymundo.

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Raymundo Fernández Pendones, Megacable Holdings, S. A. B. de C. V. - Deputy CEO [4]

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Thank you, Enrique, and good morning, everyone. Now we will review the operating results for the quarter.

The market studies carried out by the company shows that there is a slowdown in the economy with minimal growth in the massive market and also that the reason why our subscribers don't maintain our service is mainly economic. All this, an effect mainly reflected on the lower social economic levels.

In addition to the aforementioned and after the fourth quarter of 2018 in which we -- the company focused primarily on customer recovery during this quarter, we performed a debugging of our subscriber base. We identified those subscribers with low contribution and not a healthy track record and focusing the ones that will have a better return for the company. This is a common process and has been done before. When the economic situation results in subscriber additions, that does not have a positive contribution to the company.

The company seek to be more selective in terms of its growth also, given the economic situation that affect [the fluctuations] in the consumer base. Thus our aim is to return to the growth at levels seen in the first 6 months of last year, but with a higher quality base of subscribers. Disconnection rates, however, increased due to the economic slowdown and the debugging of subscribers aforementioned reached 2.8% in Video, while Broadband rose to 2.7% and Telephony to 3.9%, with [churn] rates to go back to normal levels seen in the past quarters. Regardless of the external factors, this strategy was successful and reflected in the revenues and viewership during the quarter as well as the highest ARPU per unique subscriber ever.

Now moving on to results. At the end of the quarter, we recorded more than 8 million RGUs, a 9% increase when compared to the first quarter of last year as a result of subscriber increase year-to-year across all 3 segments of the massive market. Video reported a 3% subscriber increase, while Broadband grew 8% and Telephony an outstanding 23%. As a result, we reached 2.25 RGUs per unique subscriber compared to the 2.13 reported in the first quarter of last year.

The Video segment rose to 3.2 million subs at the end of the first quarter, recording net adds of 96,000 or 3% increase when compared to the same quarter of last year. On a sequential basis, subscribers remain at the same level. Regarding XView, during the quarter, we achieved more than 60,000 net adds, a 14% sequential increase to reach 500,000 subs. That is double our number from a year ago. We're currently working in increasing available content as well as taking advantage of the integration capabilities of the platform in the near future.

Broadband rose to more than 2.9 million subs at the end of first quarter '19, recording 218,000 net adds or 8% increase when compared to the same quarter of last year. On a sequential basis, a 11,000 net adds were recorded when compared to fourth quarter 2018. At the end of this period, 58% of our subscriber base had a minimum speed of 20 megabits compared to 57% in the first quarter of 2018.

The Telephony segment continues to perform well, reaching 352,000 net adds on a yearly basis or a 23% increase to reach 1.9 million subs. On a sequential basis, a 5% increase or 94,000 net adds were recorded. Our strategy here remains to offer an attractive bundling package in which Telephony benefits from triple play sales as a secondary service in a decelerated market. The broad mix continues to achieve, given the bundling strategy that drives our commercial efforts. Triple play packages now represent 47% of the total portfolio compared to 39% at the end of 2017. Double and single play packages now account for 31% and 22%, respectively, compared to 34% and 27% at the end of the previous year.

In terms of ARPU per unique subscriber, for the third consecutive quarter, we recorded a record high MXN 390, which is 4% growth when compared to the same quarter of the previous year. The increase was driven by higher RGUs per unique subscriber, coupled with the contribution from add-on services and rate adjustments on existing clients.

Regarding ARPU per services, [starting] this year, we revised our income allocation policy to better reflect the value that the market and the consumer gives to the market segment [problems]. As a result, Telephony's ARPU decreased by 23% when compared to the first quarter of last year. We believe this value now reflects more accurately the price we charge for these services.

About the network, as I stated previous quarter, the company is firmly committed to constantly updating its network, and is currently working to getting fiber closer to our subscribers, while using a state-of-the-art equipment that allow us to manage several technologies within our network. In that spirit, during the first quarter, the network expanded to more than 60,000 kilometers through which we serve a little less than 8.6 million combined.

Now in the Corporate Telecom segment, we were able to reach and increase across the 3 companies that comprise the segment, despite the economic situation and the government extended restrictions. Starting with Metrocarrier. It continues to improve its position in the current market, and during the quarter, it positioned the SD-WAN service within its portfolio of solutions. The growth of this quarter comes from both the on-net and off-net series, which doubled their contribution to revenues this quarter compared to the same quarter of 2018. We are sure that Metrocarrier will continue to grow in this market hand-in-hand with innovative solutions and highly focused customer service towards the particular needs of each client.

ho1a also experienced a better first quarter than last year. And it is important to mention that despite the lower level of public investment, we have managed to increase our revenues by shifting our commercial efforts toward the private segment and decreasing our exposure to government expenditures in that company.

Now Luis will take you through the financial highlights.

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Luis Antonio Zetter Zermeño, Megacable Holdings, S. A. B. de C. V. - Chief Financial & Administrative Officer and Finance Director [5]

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Thank you, Raymundo. Good morning, everyone. I will now give you more details regarding the financial results before taking your questions.

Consolidated revenues for the first quarter rose to MXN 5.1 billion, recording 10% increase when compared to the same quarter of 2018. This was mainly due to an increase in Video and Broadband revenues in the massive market as well as the higher revenues coming from the Corporate segment. In the massive segment, revenue grew 8% when compared to the first quarter of 2018, with Video going up 9%, Broadband also rose 9% and Telephony decreased 5% as a consequence of a larger subscriber base.

Corporate Telecom revenues increased 20% when compared to the first quarter of last year. Metrocarrier continues to expand its product portfolio, which supported its 24% increase when compared to the first quarter of 2018, while MCM increased 16% and ho1a grew 13% as a result of security and connectivity projects carried out during the quarter and a higher mix of sales from private sector.

In terms of the revenue breakdown, Video contributed 43% of total revenue, Broadband 31%, Corporate 18%, Telephony 7% and the others category only 1%. Cost of services during the quarter increased 17% mainly due to higher content cost in the massive market with nonlinear content that we have been adding in the last 12 months. Together with higher energy rates and increase in capacity offered to our broadband subscribers and some direct level cost on lower capitalization due to lower gross adds.

While cost for the enterprise segment increased only 10%, consolidated SG&A for the quarter increased only 7% below revenues and RGU growth. All the above resulted in a MXN 2.5 billion consolidated EBITDA, representing a 7% increase when compared to the first quarter of 2018 with a consolidated margin of 49.5%. On the other hand, EBITDA for cable operations accounted for almost MXN 2.4 billion, increasing 5% when compared to the same period of last year, reaching a 51% margin.

Since it is important to consider that given the entry of IFRS 16, with respect to leases, EBITDA has a benefit related to the new accounting standard, which accounts for approximately MXN 40 million reduction on lease expenses for this period. Excluding the fact of this accounting change, the growth of the consolidated EBITDA would have been 6% with a consolidated margin of 48.7% or MXN 2,510 million.

Net profit for the quarter reached MXN 1.2 billion, representing a 2% increase when compared to the first quarter of 2018. The lower growth than EBITDA levels was mainly due to a higher depreciation component, given the investments carried out in the last few years, [the accelerated] depreciation pertaining to last year accounting policy change and depreciation corresponding to the IFRS 16 policy we just mentioned.

The company's debt reached 12 -- net debt reached MXN 12 million, well below the MXN 573 million recorded in the fourth quarter of last year, mainly due to the cash flow generation of the company. As a result of the above, the net debt-to-EBITDA ratio is now lower 20x EBITDA, while interest coverage ratio reached 24x. It's important to mention that the lease liability of MXN 328 million at net present value we are reflecting in our balance sheet is not being considered for the net debt. If we included the net debt will have been MXN 340 million or 0.04x EBITDA of our last 12 months.

Regarding CapEx, in the first quarter, the company invested nearly MXN 1.4 billion, which represented 26.9% of revenues for the quarter. We continue to invest in network capacity, construction of new kilometers and the acquisition of subscriber equipment.

Thank you for your attention. At this moment, we will now move to the Q&A session. Operator, please go ahead.

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Questions and Answers

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Operator [1]

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(Operator Instructions) And your first question comes from Guilherme Haguiara with Bradesco.

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Guilherme Haguiara, Banco Bradesco BBI S.A., Research Division - Research Analyst [2]

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My first question is about churn. We saw churn picking up quite significantly from a record low in the fourth quarter, and we understand that there is part of it that's related to your subscriber base cleanup. And we just wanted to understand better how much of this increase was related to the cleanup and what would be sort of a normalized churn level, not only for the first quarter, but where do you expect this to stabilize going forward?

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Enrique Yamuni Robles, Megacable Holdings, S. A. B. de C. V. - CEO, MD & Director [3]

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Sure, Guilherme. Regarding the churn, normally, the fourth quarter of the year, that's where people in Mexico receive more money. So we have normally a low churn for the fourth quarter. That's the seasonal effect that we have. In this first quarter, we identified those subscriber that does not provide a steady return for the company and we debugged them, like we said. We expect that and you can account that if we are in the churn level, as I said, of 2.8%, 2.7% depending on the service, whether it's Video or it's Broadband, we expect that to go back to the levels of 2.4%, 2.3% in Broadband, 2.5% in Video for the quarters to come. That's what we call normalized. We -- that's what we did. So if you subtract one from the other one, that will be the affected debugging of what we did during the quarter. Our normal churn rate should be around 2.3% to 2.5% depending on the service that we have or we're talking about. So does that answer the question?

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Guilherme Haguiara, Banco Bradesco BBI S.A., Research Division - Research Analyst [4]

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Yes, yes. That's very helpful. And just a second question on the margin side. I appreciate the clarifications on the accounting change in effect. And just to give us further details on the margin pressure, how much of these additional costs should we expect to persist going forward in the year and what are your strategies to offset this while resuming a faster subscriber growth on the commercial side?

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Enrique Yamuni Robles, Megacable Holdings, S. A. B. de C. V. - CEO, MD & Director [5]

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Sure. Guilherme, we are taking actions regarding energy cost and other aspects where we can certainly have some savings in the future, and we are cutting some of those as we speak. We are doing some actions on that. We expect, nevertheless, on the last year change in the policy below EBITDA, we think, that, that's not going to be a different scenario for the following in the future because of the change from the policy last year. We are capitalizing the cost of labor and materials. And of course, we have to write them off during the life of our subscribers. So that's not taking that in 10 years, but in 3, 4 years. And that's basically why we started suffering a little bit higher depreciation this year. But that will be basically the impact you saw already is the one that you're going to see for the future.

And in terms of the new change, the IFRS 16, basically the impact that you saw in this quarter is going to be the same for the following quarters, maybe slowing down a little bit by the end of the year, but basically, it's going to be about MXN 40 million per quarter.

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Guilherme Haguiara, Banco Bradesco BBI S.A., Research Division - Research Analyst [6]

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Okay. Okay. So just to make sure I understood correctly that aside from the accounting change, the other pressures you face from costs should continue throughout the rest of the year with some initiatives mainly on the energy side?

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Enrique Yamuni Robles, Megacable Holdings, S. A. B. de C. V. - CEO, MD & Director [7]

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Yes. Energy and some other expenses that we think we can start paperless and stuff like that, that we are implementing.

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Luis Antonio Zetter Zermeño, Megacable Holdings, S. A. B. de C. V. - Chief Financial & Administrative Officer and Finance Director [8]

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And also depends on the -- we have some costs that affect during the quarter that will not be affecting because of the comparison to the last year like Broadband expense. Broadband -- we increased our Broadband expenses pretty much in the second quarter, third quarter -- second quarter of last year. So now compared to last year, we have a difference in cost, but it's because of the comparison. If programming costs, as we declare there, we have some pressure on that, and that one got the increase pretty much at the end of 2018 and will continue for the next 2 quarters as the cost -- that cost level will remain the same. But we also expect to increase part of the Video ARPU, we're expecting the cost to not to go up, but to remain pretty much in the (inaudible) segments for the quarters to come.

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Operator [9]

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(Operator Instructions) Your next question comes from Carlos Legarreta with GBM.

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Carlos Antonio de Legarreta Diaz, GBM Grupo Bursátil Mexicano, S.A. de C.V. Casa de Bolsa, Research Division - Research Analyst [10]

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(inaudible) I did miss the introductory remark. So I hope that these questions were not addressed. The first one would be regarding the -- you guys mentioned an increase in the nonlinear programming. Could you guys elaborate on that, please?

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Enrique Yamuni Robles, Megacable Holdings, S. A. B. de C. V. - CEO, MD & Director [11]

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Sure. The programming cost is a compound of the growth of subscribers, increasing rates and increasing additional products that are not related to the subscriber growth itself. The nonlinear costs come from providing a VOD and other services to the XView and advanced premium services that we have there. So pretty much the nonlinear accounts for 3% of the increase in costs. Year-over-year, it puts some pressure. We expect that to be less in proportion as soon as we continue to grow XView, because some of them are per subscriber, some of them are pretty much on a bulk, a certain number of movies and series. So you can account for 3 points of the programming cost coming from nonlinear, a concrete answer for that.

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Carlos Antonio de Legarreta Diaz, GBM Grupo Bursátil Mexicano, S.A. de C.V. Casa de Bolsa, Research Division - Research Analyst [12]

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That's very helpful. And the second question regarding MVNO. I think you guys mentioned in the past conference call that you were targeting around 80,000 subscribers for the quarter. I don't know if you did mention something about that and what's that looking like?

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Raymundo Fernández Pendones, Megacable Holdings, S. A. B. de C. V. - Deputy CEO [13]

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Yes. Enrique mentioned in the opening, as we said, on that part, we were on the process we launched that trial. We have 62,000 to be precise MVNO trial users on that part. And it's been successful, because it's helping us to manage and see the initiatives and the product and the processes to be successful for the (inaudible) launch. So as of today, we can announce that we have 60,000 trial users, that's what we offered in the statement.

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Operator [14]

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(Operator Instructions) And you do have a follow-up question from Guilherme Haguiara with Bradesco.

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Guilherme Haguiara, Banco Bradesco BBI S.A., Research Division - Research Analyst [15]

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I have one more question regarding competition. We saw some of the competitors mentioning that the fixed telecom services has been more aggressive in Mexico. And we are curious to know how you're seeing competition in the regions you operate and what do you see in terms of opportunities to balance price increases and continued subscriber net adds over the course of 2019.

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Enrique Yamuni Robles, Megacable Holdings, S. A. B. de C. V. - CEO, MD & Director [16]

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Sure, Guilherme. The way we see it in the markets and if you know what other telecom companies report, the number of subscribers increase that we have from Broadband in our market are very similar. If you take the number that, for example, (inaudible) Telmex reported and you take that into the markets where we are, we're pretty much on a market that has growth or is very steady as of today because of the economic situation. We -- all the studies that we have show that the churn came from the lower economic level and from people that cannot afford to pay and is not really going to the competition. We expect that to change if the economy changed. Why? Because every advanced economy, which is above 90% penetration of fixed broadband or an emerging that is around 70%, 75% are still above what we have in Mexico.

So competition did not take away market share from us, it's more of an economic affecting the lower economic level. It's a macroeconomic situation affecting the lower economic level that we expect to change. If you see, for example, other broadband services like (inaudible) from Sky, in that part, we don't see the growth of those. Actually, what we see is a decrease of video subscribers from Sky in our market, and we don't see any [group] telecom in our existing areas. They might be growing, those 70,000 broadband subscribers that they grow in the quarter might come from areas where Sky has good penetration and we don't reach, but not really coming from our areas. Even though that they charge you a lower rate than we have, that rate is really, really limited in capacity and does not provide unlimited at the same level that we provide, having us at the best price.

So in general, we don't have that problem. We need to be smart to grow and to be more efficient in Video. [Video doesn't grow]. But at the end, we need to grow more, because satellites -- the pressure is on satellite. We need to be smart on that part. But as we said during the quarter, we debugged some of the subscribers that cannot afford to pay. So we're confident that the -- having the economic situation turnaround as soon as the government starts spending again and probably getting revenue to the lower economic classes, we do expect to get back on track in the quarters to come, mostly for the second half of 2018.

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Guilherme Haguiara, Banco Bradesco BBI S.A., Research Division - Research Analyst [17]

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That's clear. And one last question from me. And could you just give us a reminder about how you're thinking about the economics of the MVNO initiatives? I mean, what can we expect in terms of revenue and EBITDA contribution, let's say, in year 1, year 3 and year 5? And what's the traffic strategy to reach this level?

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Enrique Yamuni Robles, Megacable Holdings, S. A. B. de C. V. - CEO, MD & Director [18]

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What we can tell you is that we are on trial users still, looking to find or to adjust to the right strategies to launch. We expect that, in the quarters to come, to do that. We do not have a pressure in CapEx. We have a business plan that provides a marginal increase in -- not marginal, increase in EBITDA, not in margin of that product. And of -- those normal for the quarters, we are still adjusting some of them. We'll provide some of the -- of what we expect to begin. We say MXN 1 million. It will be something that it will come in the years, and it will depend on the strategy that we have regarding what niche that we have.

We are targeting some of them for Metrocarrier, some of them for MCM, for the small enterprises. Some might be like izzi. izzi launched a product called (inaudible), which is just a data product coming. We're adjusting to see what series that we launch that make economic sense because of the coverage on that. We're looking into the right way to approach with the good equipment, telephones, because we depend on the frequency and we depend on the -- some things that we're adjusting to do a current launch. You won't feel this, to be honest, in this year. We'll have the launch -- we expect to launch something in the second half, but it won't affect your numbers for the forecast or the numbers that you are projecting for 2019. In the years to come, we can have a conference, Guilherme, and tell you once we have the exact numbers.

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Operator [19]

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And your next question comes from Marcelo Santos with JPMorgan.

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Marcelo Peev dos Santos, JP Morgan Chase & Co, Research Division - Senior Analyst [20]

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I just wanted to see if you could provide some update on the outlook -- on the financial outlook for the year. So I remember in the fourth quarter, you said something regarding revenues growing from 10% to 11% and margin, excluding IFRS 16, something like flat. So could you provide some updates on this, please?

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Enrique Yamuni Robles, Megacable Holdings, S. A. B. de C. V. - CEO, MD & Director [21]

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Sure, Marcelo. At this time, we are reviewing our numbers. We are not decided to still change the outlook in our guidance. We still think that the revenues we're going to be reaching the same around 10% revenue growth. And EBITDA, which is going to be a stretch, we still see ways to recover and get in line with what we established. We are just giving a little bit more time, waiting for recovery in the economy as well. And we need a little bit more time before making any change in the outlook for the year. That's basically what we have analyzed.

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Raymundo Fernández Pendones, Megacable Holdings, S. A. B. de C. V. - Deputy CEO [22]

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And also our numbers do reflect -- as we said during this quarter, we have a debugging of some subscribers that does not imply any area of contribution or revenue growth. So at the end, we provide really good results for the first quarter. We meet pretty much for the year. We believe we can get to that revenue that you explained. Also, the EBITDA margin, that's what all the organization, management, we believe, we can do. We have a good CapEx for the quarter 2. All our financials go online. We still currently figure the increasing rate. Our increasing rates was at the end of the quarter, so pretty much hasn't [fell]. So we have room for our strategy of lower economic levels and increased XView premium product. And that's the reason why we like to stay where we are at this point.

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Operator [23]

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(Operator Instructions) And there are no further questions at this time. I will now turn the call back to Mr. Yamuni for any closing remarks.

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Enrique Yamuni Robles, Megacable Holdings, S. A. B. de C. V. - CEO, MD & Director [24]

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Thank you very much. It has been a pleasure to discuss the results with you. We will continue with our commitment to achieve our long-term goals, and we'll make sure to keep you posted on the progress we make. Please contact our Investor Relations department if you have any questions or concerns regarding the company. Have a wonderful afternoon. Raymundo and Luis?

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Raymundo Fernández Pendones, Megacable Holdings, S. A. B. de C. V. - Deputy CEO [25]

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No, thank you, everyone. As we say, I think we have very clear and we appreciate your questions and all the interest in our organization. And we'll be open to any calls that you want to do. Luis, myself, we're open.

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Luis Antonio Zetter Zermeño, Megacable Holdings, S. A. B. de C. V. - Chief Financial & Administrative Officer and Finance Director [26]

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Sure. Any questions you may have, you know where to find us. Thank you very much.

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Enrique Yamuni Robles, Megacable Holdings, S. A. B. de C. V. - CEO, MD & Director [27]

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Thank you very much.

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Operator [28]

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And this concludes today's call. Thank you for your participation. You may now disconnect.