Good evening, welcome to Megacable's second quarter 2023 earnings conference call. With us this morning from Megacable, we have Mr. Enrique Yamuni, CEO, Mr. Raymundo Fernández, Deputy CEO, and Mr. Luis Zetter, CFO. Let me remind you that the information discussed in today's earnings call may include forward-looking statements on the company's future financial performance and prospects, which are subject to risks and uncertainties. Megacable undertakes no obligation to update or revise any forward-looking statement. I will now turn the call over to Mr. Enrique Yamuni. Sir, you may begin. Thank you very much, and good morning, thank you for joining us today. I would like to provide you with an overview of our company's performance and highlight the significant advances we've made this quarter. In terms of expansion, our growth and value maximization plan is performing as, as planned. The organization has been investing not only in the network expansion, but also in the evolution of the network of the rest of the territories during this quarter. We have added, up to now, in the whole, in, in this year, 900,000 homes passed of new builds, which put us on track to beat our initial goal of 2.5 million households passed by the end of the year. Nevertheless, in addition, we have also converted 400,000 new homes passed in the HFC footprint. As a result of the before mentioned, at quarter end, 56% of our network is already full fiber technology, not only due to the expansion, but also because of the conversion to GPON, our building capacity is a reality. In this quarter alone, we have entered seven new territories, totaling around 45 new cities for the whole project, which presented a significant challenge for the company. As we look ahead, we tend to reach more than 60 new cities overall by year-end. We remain confident in realizing the expansion, expansion's full potential revenue, profitability, and shareholder value. The revenue we are generating is in line with expectations, recording double-digit growth on a year-to-year comparison, supported by subscriber growth in the original and expansion territories. The invested CapEx so far is below the estimates we have for the year, which reflects our efficiency in terms of the cost homes passed, recording the best levels in the industry. 2022 and 2024 are expansion years with more CapEx intensity, where the company will have pressure in margins and leverage, but as we have mentioned before, this was expected and continues to be within the expected range. Looking into the future, doubling the size of the company and maintaining the debt levels of past years is more viable than ever. Moving into consolidated results. Subscriber growth continues the growing trend observed since the second half of 2022. It is important to mention that we continue to see net adds in both the expansion and the original territories, resulting in the highest quarterly RGU net adds figure in the history of the company. This was also supported by a stable churn rate despite the price adjustments we carried out last May. In terms of ARPU, the big bulk of added subs that came from the increase of gross adds, and therefore with promotional rates, were compensated by the price, by the pricing, bundling, and upgrade strategies. The corporate market is in the same line as these increases. The challenge has been enormous, we already reached more than 30,000 employees, more than 20% when compared to those of last year. Moving to financials. Revenue and EBITDA continues to grow on a year-to-year basis. We're certain that as we move ahead, higher increases will be achieved as the operations from the expansion territories improve their profitability, coupled with the existing territories that remain at very attractive margins. The strength of the balance sheet has allowed us to continue growing and remain still within reasonable levels, but this is necessary to execute the plan we have set. Despite the significant investments made since 2020, we maintain a healthy financial position that provides room for continued advances in our modernization and expansion, keeping our leverage levels at the lowest in the industry. Our ability to maintain financial stability while executing our ambitious expansion plan is reflected by Fitch Ratings, with the affirmation of our credit rating of AAA, which also highlights our positioning and operational performance relative to our peers. As we make use of our infrastructure to offer high-quality services at competitive prices without jeopardizing our profitability and value proposals. As we continue with the execution of our initiatives to take the company to a nationwide footprint. Still committed to generating value for our shareholders, in that line, during the quarter, we carried out the distribution of our annual cash distribution of more than MXN 2.5 billion, with which is a very attractive dividend yield. To conclude, our quarterly performance was positive, and we are achieving our goals in terms of subscribers, new additions, expansion and modernization at an accelerated pace, without leaving behind our original territories, which continue to grow and generate positive results. The level of investment remains reasonable, and our, and though it has led us to a more leveraged position, these resources are aimed at maximizing value for our shareholders in the previous quarter. I will turn the call over to Raymundo to discuss our practice performance. Raymundo, please go ahead. Thanks, Enrique. Good morning, everyone. The growth of our key operating metrics remain aligned to the positive trend observed in the second half of last year, showing a sequential acceleration in subscribers to reach record figures in terms of, largely driven by the investment in infrastructure and acquisition of new territories, as reflected in the numbers of added kilometers homes passed. In addition to these efforts, our network modernization initiative has allowed us to keep attracting and gaining customers in legacy markets as well. Related to the expansion, we added 5,000 km of fiber, as well as close to one homes passed in the quarter, bringing the total to nearly 1.8 million, fiber so far. The efforts and investment of the company are not only aimed at expansion. As of June, we have migrated over 2,600 km from HFC to FTTH technology. This represents 400,000 homes passed in full fiber technology, which in addition to the 45,000 km we already had, accounts for a total of 56% with fiber that can be connected. The company's commitment of providing the best service to the state of the territory will continue to drive this update, in line with the vision of becoming a full fiber-powered company. Transitioning to our results, new subscribers for the quarter is 12% year-over-year to 4.7 million, representing roughly 500,000 net additions, of which 151,000 correspond to the period. This figure not only beats the record figure of the previous quarter, but also represents a faster sequential growth rate. By segment, internet subscribers grew 14% compared to the second quarter of 2022, totaling 4.4 million, resulting in 536,000 net additions, of which 163,000 corresponded to this period. We continue to perform speed upgrades on our packages, which provide the subscribers with a better navigation experience and ultimately contributes to service differentiation. Our superior infrastructure, either state-of-the-art fiber network or enhanced HFC technology, is more than capable of handling this operation. It is worth noting that at the end of the quarter, over 80% of our subscribers, subscriber base, enjoys a speed of 50 Mbps or higher, compared to around 50% in the same period last year. At the end of the quarter, our network of more than 86,000 km cover nearly 13.5 homes passed, of which 56% is already FTTH technology. This compares to 69,000 km and 10.1 homes passed a year ago. Video subscribers reached 3.8 million, growing 9% and adding 302,000 versus the second quarter of 2022. On a sequential basis, this segment recorded nearly 84,000 net adds. At the end of the quarter, the subscriber base of our Xview platform was 2.6 million, up 42% or over 786,000 net additions compared to the same quarter of last year. In the same period, Xview set-top boxes reached more than 3.9 million. Regarding Xview platform, it continues to contribute to the video segment, maintaining Mega as one of the few companies that continue to add video subscribers. This is mainly because there is no other interactive TV platform that offers the same functionalities and exclusive benefits. As of June, this platform has more than 92 million interactions registered on a monthly basis. The telephony segment recorded 3.8 million subscribers, growing 20% compared to the second quarter 2022, representing 629,000 net additions, of which 184,000 belong to this period. At the end of this period, RGUs reached 12 million, up 14% against the 11 million of the second quarter 2022, the highest growth rate ever recorded, largely driven by the entrance into new markets. Consequently, RGUs per unique subscriber in the second quarter 2023 totaled 2.57 million, compared to 2.53 million in the same period last year, which are expected to gradually climb as we progress in our expansion. MVNO subscribers totaled 391,000, decreasing 10% over year, but increasing 4% when compared to the previous quarter. This growth resulting approximately 14,000 net additions during this period, reflecting our disciplined approach in attracting and retaining high quality postpaid customers. This service, which has proven to be an added value of our fixed segment subscribers, have stood as the one with the highest ARPU in the industry. Churn rates improved on an annual and sequential basis, with broadband at 1.7%, video at 2.0%, and telephony at 1.9%. These results is more relevant when considering the price increase performed in May. The lower churn rate is the result of our efforts towards increasing customer satisfaction, including an improved Net Promoter Score, which reflects the expanded service offering, the superior infrastructure, coupled with competitive pricing and seamless integration of our services. ARPU per unique subscriber was MXN 420.8 pesos, down year-over-year, but remaining stable on a sequential basis. As Enrique mentioned, this performance is of great significance, considering the current competitive landscape and the promotional packages, pricing strategies, and offers deployed, which were carefully implemented to tap into the comparative advantages of our portfolio. Turning to ARPU by segment, broadband and video remained stable compared to the second quarter of 2022, while telephony decreased. On a sequential basis, broadband increased 2%, while telephony decreased also by 2%, and video remained at the same level. Regarding the ARPU of the MVNO service, it increased 38% when compared to the second quarter of 2022, as a result of our strategy to drive revenue growth by focusing on quality subscribers with revenue contribution. As for the corporate telecom segment, revenue in the second quarter of 2023 posted an annual increase of 16%, with MetroCarrier, ho1a, and MCM growing 15%, 31%, and 9%, respectively. This performance was supported by special projects in both the public and private sectors. It is worth noting that we will continue to see double-digit growth in this segment due to our expansion plan in new markets. In conclusion, our strong operating performance this quarter reflects our focused efforts on expanding our infrastructure, attracting and retaining customers, and enhancing our service offering. The significant sequential growth in the number of subscribers, driven by intensified investment in infrastructure deployment, demonstrate the success of our expansion strategy. As we continue to execute our expansion plan, we anticipate further growth in ARUs and sustained improvement in the key operating metrics, while remaining committed to providing a compelling value proposal that meets the needs of our customers. With this, I conclude my remarks. Now, I would like to hand the call over to Luis, who will share further coloring on the financial results. Thank you, Raymundo. Good morning, welcome, everyone. During the second quarter of 2023, consolidated revenues reached close to MXN 7.4 billion, up 10% when compared to the same period last year, giving a strong and sustained subscriber growth recorded at all business segments, but also due to the boost of a corporate segment that continues to grow at double-digit rate. The mass segment revenue increased 9% compared to the second quarter last year, amounting to MXN 6 billion. By segment, revenue for broadband, video, and mobile services grew 12%, 9%, and 2% in a year-over-year basis, respectively, driven by a stronger subscriber growth. As for the MVNO business, revenue continued to rise, recording a 23% increase on a year-to-year basis, mainly due to a higher ARPU. The corporate segment revenue climbed 15% year-over-year, totaling close to MXN 1.4 billion, with MetroCarrier, ho1a, and MCM growing at 15%, 31%, and 9%, respectively. Meanwhile, revenue for PCTV decreased slightly when compared to the same period last year. Consequently, the mass segment contribution to the company's revenue was 82%, thus 18% came from the corporate segment. Cost of services rose 24% year-over-year, reaching nearly MXN 2.2 billion, while SG&A increased 15%, totaling less than MXN 1.9 billion. These variations largely reflected the company's continued expansion, the strong growth in labor, as well as revenues coming from ho1a, the larger component of equipment sales. Quarterly consolidated EBITDA increased 1% year-over-year, amounting to MXN 3.3 billion. EBITDA margin for the quarter stood at 44.6%, down on a sequential and annual basis. Meanwhile, quarterly EBITDA for cable operations total close to MXN 3.1 billion, with a margin of 46.1%. As mentioned in the last quarter, our margins will remain pressured by costs and expenses related to our expansion, with expectations to start a gradual recovery towards 2024. Net income in the second quarter amounted to MXN 860 million, representing a decrease compared to the same period last year. This decline is attributed to a higher net financial expense as a result of the higher debt, as well as the increased costs and expenses associated with the expansion. We would like to clarify that the level of depreciation and amortization for the quarter is lower than the one in first quarter 2023, mainly due to one-off reported in the first quarter of the year. The accrued figure for the first half now is in line with what we could expect for the coming periods. Moving into the balance sheet. As of June 30, 2023, net debt was MXN 18.3 billion, compared to MXN 7.8 billion recorded at the same period last year. This variation is attributed mainly to the issuance of a long-term local note for MXN 7 billion in July 2022, as well as additional credit facilities signed during this period to accelerate our expansion plan and refinance other maturities. Nevertheless, net debt to EBITDA ratio stood at 1.4x, well below other competitors and in line with our estimations. This levered ratio provide us with flexibility to move forward in our critical growth projects. On the other hand, interest coverage ratio for the last 12 months reached 6.0x, still at healthy levels. As for CapEx, the figure totals MXN 2.9 billion during the quarter, a total of MXN 5.2 billion during the first half of the year, representing 35.6% of the revenues for the same period. This is below the 40% mark we targeted as we continue with our investments in infrastructure. It is important to note that due to the company's operative efficiencies and the execution of these investments, we have the most efficient cost homes passed in the industry. The investments we are doing are being reflected in the cash generation of the company, which this quarter also included the dividend payment of last May. These items were almost offset by the additional debt signing during the period to refinance other maturities. The following periods should reflect less pressure figures with no other dividend payment or maturity until next year. With this, I conclude my remarks. Now let me turn back the call to the operator to open the line for Q&A. Thank you. At this time, we will be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes on the line of Vitor Tomita with Goldman Sachs. Please proceed with your question. Hello, everyone, thanks for taking our questions. Apologies if I ask anything that was answered during the opening statements. I was having some audio issues earlier in the call. Two questions from my side. The first one is if you could give us some more color on how you are seeing the competitive landscape for cable, and particularly if you have noticed any difference in competitive dynamics following Telmex recently, recent increase in fiber investment and commercial investment, or on the other hand, following Totalplay's move to slow down its growth from the second quarter onwards. Second question from our side would be following up also on a discussion from the first quarter's conference call. If you could provide an update on the maximum leverage you'd be comfortable with this year. Thank you. Yes, Vitor, this is Raymundo. I don't know if you're listening correctly. It seems that we have some problems on the audio. I hope it's correct right now, we're not aware of that. Regarding your first part of the question about the competitive landscape. Well, as you know, Telmex has already deployed fiber over big amount of kilometers that they have in the service. They announced that since previous quarters. We are used to compete with them, whether it's fiber or copper when they have it. They are target to a double play package. We have our triple play offer, which is very robust with the Xview platform. That's why we are able to capture market share in the markets, in the, in the original markets and the expansion programs that we have. As you all are, are aware, Totalplay decreased the expansion plan that they have. They stay at the number of kilometers that they already have around 17.5 homes passed that they have in that area. What they have is a slow growth compared to what we have right now. They were entering new markets, capturing subscribers from them, from Izzi and from Totalplay, from everybody. In that sense, we don't have a big difference in that area, in that part. We normally try to target areas where we feel that there is a big potential because there is only two, but in some of them, it's already three of them that we have. We're taking subscribers from all of them, and we know that Totalplay decreased the number of, let's say, growth adds that they have. They didn't have the same expansion that we have over this territory. They need to lower the increase in margin like they did and lower the expenses, they haven't got able to get the growth adds that we provide in this quarter. If you look at our numbers, we provide above 400,000 growth adds, that's how we are able to grow more than our competition in that area. Regarding Izzi, well, Izzi is in some territories where we're entering. They are still mainly focused on HFC technology, not that much in, in fiber. The number homes passed that they increase in fiber is very low compared to what we have. During this quarter, as you are aware, we put almost one million homes passed additional in new territories, but also homes passed in the existing territories in fiber. We're really, really quick turning our company to a full fiber company and increasing in a higher speed than what we have. We're very satisfied with that. How do we see the competitive? We see that we will continue to gain market share. Our main goal is to operate correctly. We increase our labor force. The number of employees that we have is above 30,000. We were 25,000 a year ago, so it is a really good effort and big challenge to increase more than 20% our labor force because we depend on labor to sell and to install. We proved that we can deliver new kilometers. Now we are increasing the number of growth adds. That's where we're focused. It is not easy to increase, but we reach, as I said, way higher growth adds than any of, of our competitors for the quarter. We will continue to maintain or to increase the number of growth adds that we have. That's, that's, that's the key. We also increase rates. We are still on an ARPU below our competition. We will continue to see an increasing, slightly increase in rates in the future, so we can compensate the, the, the offer to new, new territories. At the end, we have better network, increasing huge penetration to come. Our, our program, our expansion plan, I believe it is, it is deliverable. It is something that we announced at the end of 2021. We start building new homes at the second half, exactly third quarter of 2022. Right now, it's one year after we start the program. We continue to increase growth of subscribers, you know, bringing now above 10% revenue growth compared to last year. The pressure is inevitable. Yeah, it is still inevitable because it's normal for the expansion. Better product and the execution that we're doing, we believe we're gonna do that very good in capturing market share and market penetration, according to, like Enrique said, the plan that we have at the beginning. Luis, you feel more comfortable talking about the maximum leverage of debt that we will have? Sure, sure. The debt ratio to EBITDA that we are expecting, the net debt to EBITDA, we expect that to happen in the second quarter of 2024. We are still targeting between 1.5x and 1.7x EBITDA. Which is very manageable. Which is still very, very manageable. Very clear. Thank you very much. You, you, you have to take into consideration that our EBITDA is gonna be growing at a much higher rate in future months. Our next question comes from the line of Marcelo Santos with JP Morgan. Please proceed with your question. Hi, good morning, Enrique, Raymundo, Luis. Thanks for taking the questions. I, I wanted to ask a bit about CapEx. You are deploying very quickly. You're deploying the network in a very fast pace, and at the same time, you said you're being more efficient, you're spending less. Could you please update how should the CapEx profile look in the next couple of years, like 2023, 2024, 2025? You gave some indications in the past. Just wanted to see how this, this look now. The second is just, you mentioned that you have the lowest cost homes passed in the industry. Is there any figure that you could share, that you could discuss just for us to understand it better? Thank you. Sure, Marcelo. In respective to CapEx over revenues, and we think for the year, we are going to go below the 40% that we pronounced six months and over a year ago. We expect that to be between 36%-38% for this year. We expect to remain around the same in the following year and decreasing with a tendency or trend to decrease by the second half of 2024. I n 2025, we will of course, and we, we will stay with high 20s-low 30s. In the following years, we should be dropping to low 20s, low to mid-20s, in terms of CapEx. Okay. Thank you. Thank you very much. Our next question comes from the line of Ricardo Oviedo with GBM. Please proceed with your question. Hi, Enrique, Raymundo, Luis. Thanks for taking my questions. Recently we've seen that one of your competitors seen an increase in churn, and the other one reported net disconnections. Are you implementing any retention strategies for those that, those clients that currently have a promotion price? Are you worried overall about the competition? Secondly, Televisa management set the example by investing in their own stock. I know you're firm believers of the expansion plan, so are you planning on doing something similar? Thanks. Well, this is Enrique. I, I wish I could have bought stock before, before, before today, but I, I'm, I'm sure a buyer, a stock buyer, and I, I would think that everyone should be a stock buyer of Megacable. I mean, because the valuation is very low. When, when they did it, they announced that the management, the, the CEOs are gonna buy stock, Izzi. They're not announcing a buyback program from Televisa. We're not planning on that either. We're not planning on do a buyback. It, I mean, it's, it's up to the directors or, or, management of Megacable, whether personally they wanna buy or not. I personally would buy. Okay. No, no. Let me, let me, let me tell you my, my opinion on that part. Of course, we're buying our, our own stock. That's, that's normal. We do it all the time with the, with the ethical restraints that we have as management of the company. Why, why would we have to announce if we have a really, really competitive and really believable plan in this company? We don't need to tell you that. I mean, our plan is still to double the size of the company. As Luis mentioned, we're gonna double the EBITDA in the years to come, and we will retain CapEx leverage around below 20, or even below, if I'm being aggressive. Luis doesn't want me to go so aggressive, but that's it. We will generate free cash flow, and that's gonna be in a very short period of time. I mean, we announced the expansion program at the second half of 2021. We are at the second half of 2023. It's only been really one year of building the company into that expansion. We already have on that part. We have already built 20,000 km of fiber, of expansion. We put one homes passed just this year. I mean, we are making this to be believable, and there is no way a company like this, with the expansion and the way that we manage the company, cannot get to good financial key indicators in the years to come. So we are aware of the announce of, of, of Televisa management on that part. Really, I mean, that's them. We didn't see the announce on other companies in that part. We believe that we're doing the right thing, and the market should, should acquire that as soon as they see that it's believable, and we believe we're sending the message to be like that. The growth of subscriber is coming. The growth of revenue is coming. The CapEx that we're supposed to invest is really efficient because of the way that we manage how we build, how we invest. Also, the, the, the exchange rate help us in that part. That's for sure. You know, but we have a huge amount of the CapEx in pesos, because labor that we, we built is in pesos. If we build that 1,000 km that I said, the 10,000 km that we have already built, or the 5,000 km during the quarter, we pay that in pesos, still we managed to do and deliver that. That would be the message that I would like to send, and this is Raymundo. Now, the increasing churn of the promotional: remember that what we have is a low ARPU compared to the competition. Our promotion campaigns are aggressive, but not really so much aggressive than what we have in the legacy territories. We continue to manage the same promotion, pretty much in the majority of our markets. The only thing that we do, is after we have that promotional period, we have an increasing rate, but let's say, right calculated so we don't produce churn coming from the subscriber because of the end of that promotion. That means a subscriber that has, let's say, he's paying MXN 10, he's not gonna pay MXN 20 when he finishes the promotional. He's gonna raise from MXN 10 to MXN 12, so it's not a huge hit on that part. However, after a certain period of time, we expect those subscribers to continue to increase rates, and that's positive for the future. The huge amount of subscribers that we have, that has low ARPU and will finish the promotional campaign that will hit or get some increase on rate for them, can get another increase of rate after a year. That is strategy that we have, and that's how we will, we will manage to continue to increase our revenue, and that will improve margins in the future. Understood. Thank you very much, Enrique and Raymundo. No, thank you for the question. Our next question comes from the line of Carlos Sequeira with BTG. Please proceed with your question. Hi. Thank you. Good morning, and thank you for taking the question. Last time I remember, you talked about the penetration in your markets, which was around 13%. Can you provide an update on that, please? Secondly, I mean, following up a little on, on Ricardo's question, I, I guess the churn is impressive that it remains flat sequentially and it's actually down year-over-year significantly. Can you do you think that's attributable to the higher quality of the new product or perhaps that's you're seeing a better I don't know, the economic or disposable income in your clients? I mean, what do you think is behind this definitely positive performance in the churn rate? Thank you. Sure, Carlos. Our current level of penetration in the new markets remains at the same level of 12%, 13%. That's because we continue to add new homes passedes on that part. We're very happy with the target that we have in the much more older territories that we have on that part. As an average, you can count on the 12%, 13% on that part. And it's according to plan, I wanna say that. Now, regarding the churn, I agree with you that we have a good churn rate on that part. Remember that we have a low ARPU, low rates for those subscribers, and also we migrate to fiber. As we said, last year, we built 23,000 km of fiber of the existing territories. That was 2021 and part of 2022. This year, we're migrating another 400,000. It's not only the migration. With the network that we have, HFC, that we're taking away from the existing, from the new GPON territories, we're splitting the nodes so we can provide, as I said in my remarks. Sorry about the quality of the audio. As I said, we have more than 80% of our subscribers now above 50 Mbps, you know, and moving into 80 Mbps in the territories, and without making difference or significant difference between the HFC and the GPON. That means the quality of our network is improving and the Net Promoter Score is improving. We're facing a strong competition. We're tough on the field. That means we're going for our subscribers, and we offer them the right role, and that's how we manage to continue to have the churn. We don't expect the churn to decrease, to be honest. I expect that to remain and put some pressure, a slight pressure, you know, but that's part of competition, business, and growth that we have on that part. Thank you for that. If I may follow up, I guess, for Luis. At the CapEx level, is, is, is a lower intensity that you're expecting now for the full year, is that because of the efficiencies, or is that because the peso is stronger against the USD as compared to the start of the year? Thank you. Well, thanks for the question, Carlos, and this is a mix. Mainly it comes a lot from exchange rate, of course, but it's also due to a more efficient result in the CapEx than planned. Again, this is going as planned, and we will continue with the expansion without delay. No, that's it. Okay, I appreciate the color. Mm-hmm. Our next question comes from the line of Lucca Brendim with Bank of America. Please proceed with your question. Hi, good afternoon. Thank you for taking my question. Two here from my side. First of all, in regards to margins, I wanted to know what can we expect going forward, if this is the level that should be sustained for the next quarter, if we should see some expansion, or, with the growth, we should see further compression in margins? Second of all, in regards to the expansion to new territories, the clients that you are gaining, how much of that is coming from other players, and how much is coming from people that didn't have the service before? Thank you. Thank you, Lucca. Well, first of all, related to the margin, of course, there are pressures. Every new market we open comes with investments first and revenues later. We continue to see some pressure on that. My take is that we will continue with similar margins, with some pressure on those, and we will continue with that for the following three quarters, three to four quarters. Improving at the last of these three to four, but yes, with pressures mostly in the following two. Sure. Regarding the customers, that depends on the market we're being in. The big cities that already have above 80%, 85% penetration of broadband or homes passed, of course, we're taking the subscribers from the competition. You can count on 85% pretty much is coming from competition in an average in between the small cities with lower penetration and the high cities, the majority is coming from competition. Very clear. Thank you. Thank you, Lucca. Our next question comes from the line of Phani Kanumuri with HSBC. Please proceed with your question. Yeah, thanks for taking my question. The first question is primarily related to the process that you have. How much of the process are coming from the older cities, and just how much of them are coming from the newer cities? The second one is more accounting related. We are seeing that the depreciation has come down significantly compared to first quarter. It was, in first quarter it was at MXN 1.8 billion, now it's at MXN 1.6 billion. What is driving this? How should we think that it could be going forward? Thank you. Yeah, Phani, the majority of the subscribers is coming from the new territories on that part. Sorry. The subscribers that we have, we have around 400,000 subscribers in the new territories that we have in total, in general. Over the 163,000 that we wrote, okay? I can tell you that around 55%-60% of those are coming from the new territories, and the rest from the existing one. Our growth rate is no comparison in the expansion because the base is really low. Also, as we said in the remarks, the existing territories continue to provide growth in terms of subscribers. Of course, as we have the highest market share and a big penetration, the growth is lower, but we continue to provide, as I said, subscriber growth in those territories. You can count that 45%, 40%-45% of the growth of this quarter came from the existing territories. Phani, related to the depreciation and amortization, just take the, the average for the, for the, for this, first half per quarter, and you will be basically in, in what we expect to have for the rest of the year. Perfect. Thanks again. Thank you. Do we have any questions from the webcast? Okay, there is some question from [Leopoldo Maximberg]: Is there any reference of what ROIC should be associated to CapEx you're undertaking just to be able to add more homes passed? Sure, Leopoldo, we are expecting a ROIC between 15%-18%. That will, of course, will come basically on the speed or the subscribers adopting or the growth in subscribers that we get. The ROIC is calculated basically between 15% and 18%. Okay, a second question: Is there a particular reason that explains why RGU growth was only one third of the growth achieved in the number of homes passed during the quarter? Yeah, sure. Because of the speed that we have on the construction, and we accelerate that, that number of homes passed is higher than the capacity that we have to go for the market. It's not that the market doesn't accept that. It's, as I said before, that we need to have a higher sales force. We're already past 30,000, it's not easy to have that. We passed 400,000 growth rates in the quarter. Why we don't reach 500,000, 600,000, 700,000 is not because the market doesn't accept that. It's because we need to go and look for the subscriber, and that's where we need to increase the capacity. This proves that construction, since we start a year ago, a year and a half ago, we're at the highest peak of our, our capacity of construction, not on commercial side. It's higher, this peak on construction, that we have a commercial, and that's the only reason why we don't grow at the same pace on that part. It takes longer to get penetration than to build the areas. That will be the answer. It looks like, I'll continue with the questions over the phone. Our next question comes from the line of Alejandro Azar with GBM. Please proceed with your question. Hi, guys. Good morning, Enrique, Raymundo, Luis. Two, two quick ones. With the increasing competition, how is the behavior of your penetration in your legacy territories? That would be my first one. This is a follow-up. How has been the behavior of your new clients once the promotional period ends? How much of those clients are leaving or are becoming churned once those promotional period ends? The third one for Luis, from your MXN 5.2 billion CapEx during the first half of the year, how much of that is the expansion plan? Thank you, guys. Yes, Alejandro, thank you for the question. Regarding the penetration of that, remember that the market increases when we have competition for everybody, and also after the pandemic period, it did increase. All the markets have been increasing penetration because of the products that we manage, which is program. As I said, above 80% in the larger cities, when we were 65% to 70% a year or two years ago in that part. The market has grown a lot in the last two to three years, that part. Our penetration has not decreased, you know, the market has grown, and we managed to increase, increase subscribers. Not at the same pace that we have in other, in the expansion plans for sure. Our penetration remains the same in the majority of the markets in, in general, in the legacy territories. Now, what we have for the subscribers leaving after the promotion, you can see that the churn stays at the 1.7%-2%. It's very low, the churn that we have, and that includes everything we do as a strategy of the marketing department to keep those subscribers. That is providing the right product at the customer when we finish the promotion. The majority of the marketing, the subscribers raise the price to what they have. In some other subscribers, we might lower the product that they were higher so they can keep. At the end of our efforts, you can look at them in the chart. You don't need to be more deep into the, into the exact new subscribers or new promotion. We are very happy with the churn rate that we have. We believe we will remain very close to that, probably slightly above that, but, but, but not significantly in that part. We have the, the, the, the back to school period on that area. Summer is always difficult for telco, for internet, but back to school come back again in the right time, and we have the end of the year. We don't feel that it will hit us so much in terms of the, of after promotional period for the subscribers. Raymundo, what is a rational churn for, for, I don't know, for the industry or for Megacable? Is that between 2% and 2.5%? Well, if you, if you want me to put numbers, I would, would like to do that. In terms of numbers, we are around 2%. If you remember before, years ago, our, our churn was higher on that part. Now, it's a much more essential product for the subscriber. We depend not on the, on the customers to want the product, we depend on the, on the product itself, the quality of the service, and the capacity of the subscriber to pay for that. We have the lowest ARPU. I can tell you that between 2%-2.3% should be, should be a churn level that we still feel is manageable. I do believe that we should be between 2.1%-2.2%, no more than that, in that part. That put pressure on the growth rates, but as I said, look at how we've been increasing the growth rates, and that's a positive trend coming into the future. Okay, Alejandro, related to your last question in CapEx dedicated to the expansion project, basically it is 1.3-1.5. Half of the CapEx of this quarter was dedicated basically to what or assigned to the expansion plan. You, you have to consider that parts of the CapEx we're doing in the existing areas or the legacy areas, how you call it, is, is, is the conversion plan, is the evolution to GPON. In, in this, in this quarter, we, we managed to build 400,000 or convert 400,000 homes to GPON, homes passed to GPON. And that includes also when we, we have to migrate subscribers from the HFC network to the GPON network. That, that, that, that means that we have to invest in, in, in terminal equipment, CPEs. Let me, let me add on that part what Enrique and Luis are saying. Our CapEx over revenue, is around 36%. That's what we have. This one, when we were, announcing or forecasting, something around the 40%. Mm-hmm. Like Carlos asked us over, if we were gonna decrease or that, we've been more efficient in terms of everything that we do on that part without decreasing. More than that, we, we have huge amount of homes passed, and also we managed to increase the number of homes passed that are converted, like Enrique is saying, to GPON. Without moving our percentage of CapEx and keeping that on a very conservative level for an expansion company like ours, we will continue to convert to fiber. That will help us also to keep the churn at the levels that we have. As I said, it's a good network, it's a good product, and we're turning that into Xview. Now, the majority of the subscribers, even in video, they have Xview. 70% of our subscribers, 75% of our subscribers, has already an Xview platform at a state-of-the-art technology for video. You can expect that we will continue to convert homes passed into fiber, even from the existing territories. We're not gonna keep on the 400,000. Okay, that's very clear, guys. Thank you very much. As a final reminder, if anyone has any questions, you may press star one at this time to ask a question. Our next question comes from the line of Froylan Mendez with JP Morgan. Please proceed with your question. Hello, guys. Can, can you hear me? Sure. Go ahead, Froylan. Thank you. Hi, guys. Thank you so much for taking my question. On the overlay that you did, I was wondering what type of move in your peers' strategy would actually lead you to reuse your expansion plan and maybe focus much more on overlaying fiber into your HFC territories, much more than the phase that you mentioned this quarter? Therefore, ultimately, what percentage of the network will be under fiber technology by 2026, 2027? I have a follow-up on prices after you answer this one, if you're so kind to. Sure, Froylan. We have the plan to double the size of the company when we start this project in 2020, 2021. That was aimed to build 40,000 km of GPON of expansion by 2026, at the beginning of 2026, on that part. That will bring subscribers increase over the next five years. That was, that was in generally planned with us. We won't stop there, but we will get to the levels of CapEx that Luis mentioned to you. With the revenue and EBITDA that we are gonna generate, that will continue to put Megacable in the position that we can invest in converting network and also to continue to expand to new territories. We're not gonna stop in the 40,000. You know, you can count to 50,000 for year 2026 and 2027 on that part. We will convert it, the, the, the network to fiber at 95% by 2028. That's what we want, we want to do. What we're doing right now, since we're moving on that part and we're being very efficient with the CapEx, is we're increasing the speed that we're converting to fiber, the existing territories. With the 36% level of CapEx that you, that we're providing right now over revenue for 2023, we will more than double the amount of GPON homes passed that we have in the existing territories. I can tell you that we're gonna you will hear numbers coming and we, that 400,000 will continue to be in the quarters to come. We're not gonna stop that. The pressure on the CapEx will decrease because the revenue is increasing 10%, you know, and it's gonna increase more on that part. Also because as we increase penetration in the new territories, the margin will continue to go up on that part. Every new subscriber that we bring has a better contribution than the ones that we had before because of the fixed costs that we have to launch in new territories. The future looks pretty good. At the same, we will be a fiber company, yes, you will have the numbers of fibers in the years to come above 80%-85% in the next two to three years, on that part, with no doubt about the speed that we're building right now. Excellent. Very clear. Lastly, Totalplay announced price hikes now in, in July. You already did in May. Is there any chances to see a second increase on prices for this year? Yes. Yes, on that part, we announced the increase in May. Let me, let me explain to you why, why I say yes so fast. The, the, the increases that we do is not for the full territory at the same time. We have some subscribers that got increased at the end of last year, some subscribers that get increased because of the end of the promotional campaign, another one that got increased that we're talking right now in May. We have room to do some increase before the end of the year in some of our subscriber base. I cannot tell you that it's going to be in the full subscriber base, because that's not the way we manage, but we will continue to contribute to the ARPU, you know, and compensate the new subscribers with the promotional rate. It will be compensated with increasing rates in the months to come, yes. Excellent. Very clear. Thank you so much. Our next question comes from the line of Alejandro Gallostra with BBVA. Please proceed with your question. Hi, good morning, Enrique, Raymundo, and Luis. Given that you have a cash amount of MXN 1.2 billion, and given your current CapEx requirements of approximately MXN 3 billion per quarter, and Luis comments that you expect margins to remain under pressure for at least the next three quarters, and EBITDA of MXN 3 billion per quarter, how do you expect to finance the expansion in the next quarters? Do you expect to raise additional capital, or how do you expect to finance for the expansion in the coming quarters? Thank you. Yes. Well, Alejandro, thanks for the question. As you know, and as we mentioned, we still have some room in, in the program that for for another quarter next year, and that's our expectation. We have some maturity on our bank loans that we also have on the third quarter of next year. We are already planning on, on completing the program, and that will bring the additional cash that we need to complete the main phase of the expansion project. After that, after Q3, we don't expect or we don't have short-term liabilities, and we will be capable of building back or maintaining growth and also cash generation. That's basically how it's targeted, and then everything goes according to plan. That's it. That's it. That is according to the plan that we have as of today. Absolutely. As of today, which is expanding the company, doubling the size, and that one, we get, like Luis says, to 1.6. Mm-hmm. 1.7. We feel very comfortable. The market feels very comfortable with that. After that, we will continue to recover the, the levels that we have. We will see what, what's coming. Thank you. Thank you for that. How much debt do you expect to raise, and when, when do you expect that to happen? Well, the program was for MXN 15 million. We issued last year, MXN 7,000, sorry, MXN 7 million. We are really right now reviewing how much, and because of the elections in Mexico next year, we are not sure when it's going to happen, but of course, it's going to be before the elections. We, we are still looking for the approval from board, but it's going to be ahead of the elections in Mexico. Okay, thank you. Do you expect that capital raise to be the last one that you will need in order to complete your, your network expansion? That's the plan. That's the plan. Okay, thank you very much. Thank you, Alejandro. With no questions in the queue, the question and answer session is concluded. I will turn the call back over to Mr. Yamuni for its final, for final remarks. Thank you. As always, it's a pleasure to discuss our results with you. Please contact our investor relations department if you have any questions or concerns regarding the company. Have a wonderful day and a great weekend. Thank you, everyone. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.