Megacable’s profits fall 5.8% due to its fiber optic expansion plan

The company explained in its financial report corresponding to the third quarter of 2024 that the drop in its profits is due to its nationwide fiber optic expansion project that began in 2021, whose plan has involved a strong outpouring of investments.

Although in the first years the capex invested in the strategy did not take its toll on the company, since this year its profits began to decrease. The general director of Megacable himself, Enrique Yamuni, had previously commented to the press that this year the company would begin to see declines in its operating status, but then it would achieve a balance.

“Even the company significantly reduced its capital investment, reaching 2,755 million pesos, which represents 33.5% of income. In addition, net leverage decreased to 1.54 times, in line with the Company’s projections,” Megacable said in its financial report.

However, its revenues reached 8,216 million pesos in the third quarter of the year, which means an increase of 9.7% compared to the same period last year, driven mainly by the growth of the mass segment, which registered 6,827 million pesos. The company added 561,000 net additions to reach more than 5.3 million customers, representing a growth of 11.7% compared to the same period in 2023.

While EBITDA grew by 8.2%, reaching 3,578 million pesos.