Megacable Grows 11.6% in Subscribers in 4Q24, Income Drops 19%

Megacable reported an 11.6% growth in its subscriber base in the fourth quarter of 2024, reaching 5.5 million unique users. However, its net income fell 19% due to higher operating costs, including salary adjustments and headcount expansion.

"Total investment reached US$517 million, representing 31.5% of 2024 revenues," reads Megacable financial report, noting the impact of its investments on its cost structure.

Since 2020, Megacable’s investment strategy has focused on the expansion of its fiber optic infrastructure. The increase in demand for digital services during the pandemic drove this process, allowing the company to strengthen its coverage and capture new customers, writes Expansión. However, since 2023, the company has shifted its focus, reducing the pace of investment and prioritizing operational efficiency.

In its financial report, Megacable explains that infrastructure deployment has been a key factor in user growth, but it has also generated pressure on operating costs. In addition, the macroeconomic environment has impacted the company's expense structure, resulting from salary increases and personnel expansion.

In 4Q24, Megacable reported revenues of US$425 million, an increase of 8.3% year-over-year. This growth was driven by the addition of users and increased demand for its services. Despite the increase in revenues, the company's net income decreased to US$26 million, representing a 19% drop compared to the US$32 million recorded in 4Q23. The company attributed this decrease to the 2.6% increase in service costs, due to salary adjustments and personnel hiring. In addition, the impact of the depreciation of investments made in previous years also affected financial results.

In terms of infrastructure investment, Megacable allocated US$124 million in the last quarter of 2024, representing a 37.8% reduction compared to the same period of the previous year. Throughout the year, total investment reached US$517 million, equivalent to 31.5% of the company's annual revenues.

During the period, Megacable added 574,000 new customers, reaching a total of 5.5 million unique subscribers. This growth represents an 11.6% increase compared to the same period of 2023.

The company's EBITDA reached US$188 million, reflecting a 10.9% growth in annual terms. This indicator, which measures operating profitability, shows a positive performance driven by user growth and service diversification. However, rising costs and asset depreciation pressure have impacted the company's net profitability.