World VoIP NewsCablemas returns to profit as first quarter revenuesCablemas returns to profit as first quarter revenues

Cablemas returns to profit as first quarter revenues

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Mexican cableco Cablemas has released its financial results for the three months ended 31 March 2010, posting an 8.7% year-on-year increase in revenue.
For the three-month period the company generated a turnover of MXN978.3 million (USD75.12 million), up from MXN899.9 million a year earlier, with revenue from high speed internet services and telephony increasing by 12.5% (MXN18.4 million) and 58.1% (MXN53.2 million) respectively. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 16.4% y-o-y to MXN352.5 million, while net income saw a dramatic improvement, with Cablemas reporting that favourable foreign exchange movements had seen it bounce back from a MXN349 million loss in 1Q 2009 to an MXN1.6 million profit in the first quarter of 2010.

In terms of subscribers, at the end of March 2010 the telco had a high speed internet subscriber base of 310,752, up 25.7% against the same date a year earlier, while its internet telephony customer base rose to 164,726, almost double the 84,680 it had at end-March 2009. The operator did, however, note that average revenue per user (ARPU) for both its high speed internet and telephony services had declined – down 8.1% and 16.7% y-o-y respectively – which Cablemas attributed to increased uptake of its double- and triple-play packages.

Commenting on the results, Carlos Alvarez, CEO of Cablemas, said: ‘The year started off very well, with revenue up 8.7% year-on-year as we continued to expand our subscriber base across our three business segments. We also reduced or maintained churn rates, despite the difficult environment ... The continued success of the ‘yoo’ advertising campaign and the ongoing improvement in customer service contributed to the stronger performance, despite the competitive environment.’

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