The depreciation of the peso drags down Megacable’s profits

In its financial report, issued to the Mexican Stock Exchange, it detailed that its profits were impacted by the exchange rate in the investment of the fiber optic deployment project at a national level, whose input is acquired in dollars. Added to a higher financial expense for the issuance of stock certificates carried out in March.

Since 2020, Megacable has implemented a strategy based on the deployment of fiber optics nationwide with the mission of improving its services and integrating more consumers into its operations. From April to June of this year alone, it invested 2,748 million pesos, which represents 33.8% of the income it received in that period. As of June, it has 98,068 kilometers of fiber optics.

And despite the drop in profits, the company’s sales for the quarter were able to offset its finances. In the second quarter of this year, the company headed by Enrique Yamuni earned 8,136 million pesos, which implies an increase of 10.3%, compared to the 7,373 million pesos it earned in the same quarter of the previous year. This result was driven by the 515,000 Internet additions for a total of 4.9 million users.

Meanwhile, its EBITDA, a financial indicator of companies’ gross profit, registered 3,605 million pesos, an increase of 10% compared to 3,287 million pesos.