Earnings release
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1 1Q25 – Quarterly Report Highlights In this period, Mass Segment revenues reached Ps. 7,194 million, a record figure for a quarter, representing a 9.3% increase compared to 1Q24. In the same period, total revenues for the quarter reached Ps. 8,607 million, growing 7.8%. During this quarter, the Internet and Telephony Segments added 100 thousand and 84 thousand new subscribers, respectively, while the Video Segment recorded a slight decrease. In the same line, 93 thousand net additions of unique subscribers were recorded in this period, reaching a total of 524 thousand on a year-over-year basis, representing a 10.3% increase. EBITDA for 1Q25 increased 8.2% compared to 1Q24, reaching Ps. 3,984 million, a record figure for a quarter, with a margin of 46.3%. CAPEX amounted to Ps. 2,308 million in this period, representing 26.8% of revenues for the quarter. This quarter’s results already reflect the integration of ho1a, MCM, and MetroCarrier from the Corporate Telecom segment into the Company MCM Business Tech-Co. Guadalajara, Jalisco, M exico, April 24, 2025 - Megacable Holdings S.A.B. de C.V. (“Megacable” or “ the Company”) (BMV: MEGA.CPO) announced today its financial results for the first quarter of 2025 (1Q25). Figures were prepared in accordance with International Financial Reporting Standards (IFRS). All figures are expressed in thousands of Mexican Pesos (Ps.), unless otherwise stated. Consolidated Financial and Operational Results 1Q25 1Q24 % Var Income 8,607,095 7,984,603 7.8% Mass Segment Income 7,193,594 6,581,611 9.3% EBITDA 3,983,661 3,680,604 8.2% EBITDA Margin 46.3% 46.1% Net Profit 723,295 801,279 (9.7%) Cash and short-term investments 4,589,975 6,234,970 (26.4%) Net Debt 21,075,919 19,352,038 8.9% CAPEX 2,308,045 2,354,237 (2.0%) Market Cap (Ps. Millions) 36,966 39,781 (7.1%) Subscribers Unique 5,613,431 5,089,725 10.3% Internet 5,412,101 4,872,882 11.1% Video 3,828,295 3,928,939 (2.6%) Telephony 4,850,700 4,255,172 14.0% Mobile services 575,930 461,069 24.9% Total RGUs 14,091,096 13,056,993 7.9% Other Data Home Passed 17,571,869 15,951,418 10.2% Network Kilometers 102,420 95,627 7.1% Employees 32,720 31,993 2.3%
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2 1Q25 – Quarterly Report General Remarks During this quarter we continued with the subscriber additions trend observed in previous periods, within the Company's expected ranges. While the integration of the Corporate Telecom segment is expected to yield benefits, revenues were temporarily affected by market conditions and seasonality. These factors contributed to sustained growth in both revenues and EBITDA, with margin expansion on both an annual and sequential basis, supporting the growth of net income when compared to 4Q24. As penetration continues to consolidate across expansion territories, the Company is well-positioned for sustained cash generation in the coming periods. Unique Subscribers and Revenue Generating Units (RGUs) By the end of the first quarter, the Company reached 5,613,431 unique subscribers, a 10.3% increase compared to 1Q24, representing 524 thousand net additions. Sequentially, 93 thousand new unique subscribers were added this quarter, maintaining the growth trend in both expansion territories and organic regions, although at a slightly slower pace due to the price increase implemented during the quarter. Meanwhile, RGUs were close to 14.1 million, a 7.9% increase compared to the same quarter of the previous year, driven by continued growth of subscribers in the Mass Segment. The RGU per unique subscriber stood at 2.51. Internet Subscribers At the close of the quarter, the Internet segment reached 5,412,101 subscribers, an 11.1% growth or 539 thousand net additions compared to 1Q24. During this period, 100 thousand new subscribers were recorded, in line with the Company's expectations, primarily driven by the Expansion Project. By the end of the period, 77% of subscribers receive their service through fiber technology, up from 67% in 1Q24. This is in line with the goal of becoming a full-fiber Company, offering a high-quality service with higher bandwidths. . Video Subscribers The Video segment reached 3,828,295 subscribers at the end of 1Q25, reflecting a decrease both year-over-year and sequential basis. Moreover, 3,521,180 subscribers have access to Xview. This represented a 15.0% growth and a net addition of over 458 thousand users to this platform, compared to 1Q24. Additionally, at the end of the quarter, 1.097 million subscriptions to apps were recorded, which represents a growth of 33.6%, or 276 thousand net additions, compared to the same period of the previous year.
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3 1Q25 – Quarterly Report Telephony Subscribers The Telephony segment closed 1Q25 with 4,850,700 subscribers, registering 596 thousand net additions compared to 1Q24, which represent a 14.0% increase. During this quarter, 84 thousand new subscribers were added, a 1.8% increase in the sequential comparison. The growth in this segment is attributed to the Company’s service bundling strategy. Mobile Services Subscribers At the end of the quarter, the Mobile Services Segment reached 575,930 lines, with 115 thousand new users added year- over-year and 22 thousand added in this period, continuing with the growth trend observed since 1Q23, maintaining the focus on postpaid services. Churn Rate The churn rates for all three Mass Segment services increased compared to 4Q24, mainly due to the price adjustment implemented in January, which affected the quarterly average. Revenue Total revenues for the first quarter maintained their positive trend, registering once again a record figure for the Company, reaching Ps. 8,607 million1, representing a 7.8% increase compared to 1Q24. This growth was mainly driven by a 9.3% increase in the Mass Segment, maintaining a solid growth trend, supported by a higher number of subscribers and the consolidation of new territories with a higher contribution. During the same period, revenues from the Corporate Segment remained practically at the same levels. 1 Includes Ps. 220.2 million from mobile services in 1Q25. 1Q25 4Q24 1Q24 Internet 2.1% 1.7% 1.8% Video 2.5% 2.1% 2.1% Telephony 2.5% 1.9% 2.1% 1Q25 1Q24 %Var Mass 7,193,594 6,581,611 9% Corporate 1,413,501 1,402,992 1% Total 8,607,095 7,984,603 8%
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4 1Q25 – Quarterly Report ARPU The ARPU per unique subscriber stood at Ps. 417.5, remaining practically at the same levels compared to 1Q24 and 4Q24. This was mainly due to the decline in video subscribers as a proportion of unique subscribers, despite the increase in rates and commercial strategies focused on increasing revenues. Notes: (1) ARPU, or average revenue per unit for each segment, is the result of calculating total revenue for the corresponding service during the period, divided by the average number of subscribers for the same period. (2) Mobile Services revenues are not included in the ARPU per unique subscriber calculation. Corporate Telecom Segment Revenues Corporate Telecom segment revenues remained flat compared to 1Q24. This was mainly due to a lower contribution from special projects, while the connectivity segment continued to register growth. This segment accounted for 15.3% of the Company’s total revenues, compared to 16.5% in 1Q24. Costs & Expenses During the quarter, the costs of services increased by 4.7%, which was below revenues growth, while operating expenses rose 10.2%, both compared to 1Q24. This was mainly due to higher labor costs resulting from wage and commission adjustments. Sequentially, costs & expenses decreased 2.6% and 2.3%, respectively. Operating Income remained at the same level compared to 1Q24, as a result of higher depreciation, which stemmed from investments made in previous periods. However, in the sequential comparison, it increased 13.6%. 1Q25 1Q24 % Var 4Q24 % Var ARPU (1) (Ps.) Unique subscriber (2) 417.5 421.7 -1% 421.6 -1% 1Q25 1Q24 %Var Corporate Telecom 1,314,012 1,315,376 0% PCTV 99,489 87,616 14% Total 1,413,501 1,402,992 1%
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5 1Q25 – Quarterly Report EBITDA Compared to the same quarter in the previous year, EBITDA increased 8.2% reaching Ps. 3,984 million, record figure for a quarter, with a margin of 46.3%. This growth was driven by the Company’s larger scale. On a sequential basis, a growth of 5.8% was recorded. Notes: (1) EBIT DA is calculated by adding to the net income/loss the following: depreciation and amortization, net comprehensive financing r esult, non -recurring expenses (income), total income tax, employee profit sharing, interests in affiliated and associated companies, and non-controlling interest. Net Comprehensive Financing Result During the quarter, the Company recorded a net financing expense of Ps. 610 million, the lowest amount in the last four quarters, primarily due to net interest expenses resulting from increased debt compared to 1Q24, as well as a foreign exchange loss driven by currency fluctuations during the quarter. Net Income Net Income for the quarter totaled Ps. 723 million, which represents a decrease compared to 1Q24 and a 38.1% increase compared to 4Q24. This was mainly due to a higher depreciation, in line with investments in the Expansion and Network Evolution projects of previous years, an unfavorable foreign exchange result, and an increase in financial expenses derived from higher debt compared to 1Q24. The Company continues to generate positive cash flow, regardless of business projects. 1Q25 1Q24 %Var Operating Profit 1,689,050 1,682,868 0% Depreciation and amortization 2,294,611 1,997,736 15% EBITDA (1) 3,983,661 3,680,604 8% EBITDA Margin 46.3% 46.1% 1Q25 1Q24 Net Exchange Loss (Profit) 18,680 (14,578) Interest Income 102,619 77,955 Interest Expense 694,238 631,323 Net Comprehensive Financial Cost 610,298 538,789
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6 1Q25 – Quarterly Report Net Debt Net Debt for the quarter stood at Ps. 21,076 million, increasing compared to 1Q24 and decreasing compared to 4Q24, while Total Debt remained practically unchanged compared to 1Q24. The year-over-year increase of the Net Debt is mainly explained by the lower cash available. The leverage ratio decreased compared to 4Q24 to 1.41 times, in line with the Company’s expectations. CAPEX The Company invested Ps. 2,308 million during 1Q25, representing 26.8% of revenues for the period, in line with the expected slowdown in the investment cycle for the year. The additional kilometers and homes passed recorded in this quarter reflect the deceleration in the execution of the Expansion Project. 1Q25 1Q24 4Q24 1,208,159 5,677,002 1,677,466 One year maturity of long-term bank loans 1,008,234 5,460,485 1,452,171 Short-term leases 199,925 216,518 225,294 24,457,734 19,910,006 24,510,944 Bank Loans 12,834,573 8,326,859 12,831,680 Accounts Payable 10,944,861 10,944,861 10,944,861 Long-term leases 678,301 638,286 734,403 25,665,893 25,587,009 26,188,410 4,589,975 6,234,970 4,227,504 21,075,919 19,352,038 21,960,906 Short Term Debt Long-Term Debt Total Debt Cash and Short-Term Investments Net Debt 2,354 2,748 2,755 2,483 2,308 29.5% 33.8% 33.5% 29.2% 26.8% 1Q24 2Q24 3Q24 4Q24 1Q25 CAPEX as % of Revenues
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7 1Q25 – Quarterly Report Stock Information 1Q25 Earnings Conference Call Megacable will host its 1Q25 earnings videoconference on Friday, April 25, 2025, at 10:00 am (Mexico City time) / 12:00 pm (New York Time). To access the videoconference, please register using the following link: https://us02web.zoom.us/webinar/register/WN_qTw4TDeRSuutE3TC-04nJg The audio recording of the 1Q25 earnings videoconference and prior periods is available at: https://inversionistas.megacable.com.mx/en/home Investor Relations: Alan Esaú Gallegos López IR Manager Phone. + 52 (33) 3750 0020 ext. 61091 investor.relations@megacable.com.mx Disclaimer This document contains forward-looking statements regarding the Company’s results and future prospects, which are subject to risk and uncertainty. Therefore, these results and statements may differ due to various factors. Moreover, figures in this report may vary due to rounding. For more information, please visit: https://inversionistas.megacable.com.mx/en/home Ticker MEGA.CPO CPOs "A" Series Total Shares (thousands) 853,789 1,721,356 Shares in treasury (thousands) 2,178 4,355 Mkt. Cap (In Ps. millions) 36,966$ Closing price (Ps.) * 42.95$ Free float 54% As of March 31, 2025 * Source: Refinitiv 2 "A" Series Shares = 1 CPO
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8 1Q25 – Quarterly Report Megacable Holdings, S.A.B. de C.V. Statement of Financial Position As of March 31, 2025 and 2024 2025 2024 ASSETS CURRENT ASSETS Cash and short-term investments 4,589,975 6,234,970 Accounts receivable from customers and advances to suppliers, net 3,487,371 3,590,563 Recoverable taxes 1,687,448 1,156,286 Inventories 618,453 691,831 Total Current Assets 10,383,247 11,673,650 NON-CURRENT ASSETS Accounts receivable from customers and other long-term, net - 509,327 Property, systems and equipment, net 55,687,984 53,509,953 Goodwill, net 4,366,058 4,366,058 Intangible assets by right-of-use assets 792,222 795,029 Other assets 1,443,048 1,126,405 Affiliated and associated companies 1,368,276 1,274,860 Total Assets 74,040,836 73,255,281 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES One year maturity of long-term liabilities 1,008,234 5,460,485 Suppliers 4,134,313 4,023,698 Short-term affiliated and associated companies 125,718 163,672 Accounts payable and accrued expenses payable 1,653,965 1,711,039 Short-term leases payable 199,925 216,518 Total Current Liabilities 7,122,155 11,575,412 LONG TERM LIABILITIES Bank loans 12,834,573 8,326,859 Labor obligations 437,278 408,518 Accounts payable 10,944,861 10,944,861 Deferred taxes 4,171,809 3,394,466 Affiliated and associated companies 861,107 672,374 Accrued Income 558,135 622,723 Long-term leases payable 678,301 638,286 Total Long-Term Liabilities 30,486,062 25,008,087 Total Liabilities 37,608,217 36,583,499 STOCKHOLDERS' EQUITY Capital Stock 910,244 910,244 Net Premium on the placement of shares 2,117,560 2,117,560 Retained Earnings 31,777,394 32,279,894 Minority Interest 1,068,733 864,684 Legal Reserve 558,686 499,400 Total Stockholders' Equity 36,432,618 36,671,782 Total Liabilities & Stockholders' Equity 74,040,836 73,255,281
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9 1Q25 – Quarterly Report Megacable Holdings, S.A.B. de C.V. Income Statement First Quarter 2025 and 2024 1Q25 1Q24 % Var Income 8,607,095$ 7,984,603$ 8% Cost of Services 2,273,168 2,171,706 5% Gross Profit 6,333,927$ 5,812,898$ 9% Operating and General Expenses 2,350,266 2,132,293 10% EBITDA 3,983,661$ 3,680,604$ 8% Depreciation and amortization 2,294,611 1,997,736 15% Operating Profit 1,689,050$ 1,682,868$ 0% Other income (expenses), net 29,184 20,238 44% Comprehensive Financing Income, Net 610,298 538,789 13% Income Before Income Tax and Minority Interest 1,107,936$ 1,164,317$ (5%) Income Tax 332,138 349,295 (5%) Net Profit 775,798$ 815,022$ (5%) Net income attribute to: Non-Controlling interest 52,503 13,743 NA Controlling interest 723,295 801,279 (10%) 775,798$ 815,022$ (5%)