Cablemas 2Q09 Net Revenue and Adjusted EBITDA Up 16.6% and 4.3% YoY, Respectively

Cablemas 2Q09 Net Revenue and Adjusted EBITDA Up 16.6% and 4.3% YoY, Respectively

MEXICO CITY, Aug. 28 /PRNewswire-FirstCall/ -- Cablemas, S.A. de C.V., (Cablemas), the second-largest cable television operator in Mexico based on number of subscribers and homes passed, today announced results for the three-month period ending June 30, 2009.

Cablemas CEO Carlos Alvarez commented, "Revenue growth remained resilient this quarter as we continued to expand our subscriber base in all business segments. Cable television subscribers increased by 9.3%, high-speed internet subscribers rose 11.4% and telephony lines were up by 42.1% year-on-year. This was achieved despite the continued challenging economic environment and the negative impact of the H1N1 virus which halted overall business activity in Mexico for two weeks in May."

"EBITDA rose 4.3% year-on-year this quarter. The Adjusted EBITDA margin, however, stood at 33.3% continuing to reflect higher programming costs. EBITDA margin was also negatively impacted by the depreciation of the Mexican Peso over the last twelve months which affects approximately 30% of the Company's overall costs. This more than offsets the benefits of the cost reduction initiatives implemented during the quarter. In fact, SG&A as a percentage of sales, declined to 26.2% from 28.7% in 2Q08 and 26.9% in 1Q09," continued Mr. Alvarez.

"Performance this quarter also reflects the positive effect on revenue of a new advertising campaign launched in May in conjunction with Cablevision, Cablevision of Monterrey and Megacable. The campaign, designed to further promote double and triple-play services, consists of a triple-play package starting at Ps.499 per month and double-play offerings beginning at Ps.360 per month. This campaign, together with the Company's overall marketing efforts, has allowed Cablemas to continue to increase and maintain its subscriber base, despite the challenging economic environment in Mexico," closed Mr. Alvarez.

Financial and Operational Highlights(1)
---------------------------------------
(in
million
Mexican % %
Pesos) 2Q08 2Q09 Chg. 1H08 1H09 Chg.
-------- ---- ---- ---- ---- ---- ----
Financial
Highlights
-----------
Net
revenue 769.6 897.4 16.6% 1,540.5 1,797.2 16.7%
Operating
profit 122.8 127.4 3.8% 270.6 231.8 -14.3%
Adjusted
EBITDA(2) 286.6 298.9 4.3% 586.9 601.6 2.5%
Net
income 41.5 65.4 57.6% 74.7 (283.6) n/a
------- ---- ---- ---- ---- ------ ---
Operating
margin 16.0% 14.2% -176 bps 17.6% 12.9% -467 bps
Adjusted
EBITDA
margin(2) 37.2% 33.3% -393 bps 38.1% 33.5% -463 bps
Net
income
margin 5.4% 7.3% +190 bps 4.8% -15.8% -2063 bps
------- --- --- -------- --- ----- ---------
Total
Debt 2,329.0 2,967.7 27.4% 2,329.0 2,967.7 27.4%
Net Debt 1,875.4 2,682.0 43.0% 1,875.4 2,682.0 43.0%
Total
Debt/
LTM Adj.
EBITDA(2) 2.2x 2.6x 2.2 2.6
Net Debt/
LTM Adj.
EBITDA(2) 1.7x 2.4x 1.7 2.4
EBITDA/ Net
interest
expense 3.5x 3.9x 3.5x 3.9x
----------- ---- ---- ---- ----
Operational
Highlights
-----------
Homes
passed 2,322,186 2,652,226 14.2% 2,322,186 2,652,226 14.2%
Cable
Television
sub-
scribers 805,390 879,923 9.3% 805,390 879,923 9.3%
High-speed
internet
sub-
scribers 224,799 250,511 11.4% 224,799 250,511 11.4%
Telephony
lines 67,012 95,203 42.1% 67,012 95,203 42.1%
--------- ------ ------ ---- ------ ------ ----

To obtain the full text of this earnings release, please visit our Investor Relations website at www.cablemas.com/investor-relations under the Press Releases section.

This document may contain certain forward-looking statements concerning Cablemas' operations, performance, business, financial condition and growth prospects. These statements are based upon beliefs of management as well as a number of assumptions and estimates, which are inherently subject to significant uncertainties, many of which are beyond Cablemas' control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Mexican economy, including changes in inflation rates or exchange rates, changes in political conditions and government policies in Mexico, increased competition, regulatory developments and customer demand. These statements are made as of the date of this press release and Cablemas undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise in light of these risks and uncertainties, there can be no assurances that the events described or implied in the forward-looking statements contained in this document will in fact transpire.

Source: Cablemas, S.A. de C.V.

CONTACT: In Mexico, Cablemas: Allan Ituarte Hesles, Planning & IR
Manager, (5255) 41-21-83-35, aituarte@cablemas.com.mx, or In the United
States: Breakstone Group, Susan Borinelli, +1-646-330-5907,
sborinelli@breakstone-group.com

Web Site: http://www.cablemas.com/investor-relations

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