Cablemas 2Q10 Net Revenue and Adjusted EBITDA Up 11.3% and 26.7% YoY, Respectively

Cablemas 2Q10 Net Revenue and Adjusted EBITDA Up 11.3% and 26.7% YoY, Respectively

MEXICO CITY, Aug. 26 /PRNewswire/ -- 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- and six-month periods ending June 30, 2010.

Commenting on the results, Carlos Alvarez, Chief Executive Officer said, "This was another good quarter, with year-on-year increases of 11.3% in revenue and 26.7% in EBITDA."

"In fact, we continued to expand our subscriber base across our three business segments while reducing or maintaining churn rates despite the slow recovering economy. Television subscribers were up by 8.4%, high-speed Internet subscribers by 29.8% and the number of telephony lines by 89.3%. The Adjusted EBITDA margin rose 462 basis points to 37.9% reflecting revenue growth and the continued success of our cost cutting efforts," continued Mr. Alvarez.

"Looking ahead, to continue improving customer satisfaction and further strengthen our competitive position we have began to digitize our cable television network in the main cities in which we offer this service," concluded Mr. Alvarez.

Financial and Operational Highlights

(in million Mexican
Pesos) 2Q10 2Q09 % Chg.
------------------- ---- ---- ------
Financial Highlights
--------------------
Net revenue 998.6 897.4 11.3%
Operating profit 148.5 127.4 16.6%
Adjusted EBITDA 378.8 298.9 26.7%
Net income (25.5) 65.4 n/a
---------- ----- ---- ---
Operating margin 14.9% 14.2% +68 bps
Adjusted EBITDA
margin 37.9% 33.3% +462 bps
Net income margin -2.6% 7.3% -985 bps
----------------- ---- --- --------
Total Debt 2,964.3 2,967.7 -0.1%
Net Debt 2,859.9 2,682.0 6.6%
Total Debt/ LTM Adj.
EBITDA 2.0x 2.6x
Net Debt/ LTM Adj.
EBITDA 2.0x 2.4x
EBITDA/ Net interest
expense 5.3x 3.8x
-------------------- ---- ----
Operational
Highlights
-----------
2
Homes passed ,796,328 2,652,226 5.4%
Cable Television
subscribers 9 53,535 879,923 8.4%
High-speed internet
subscribers 325,231 250,511 29.8%
Telephony lines 180,255 95,203 89.3%
--------------- ------- ------ ----

(in million Mexican
Pesos) 1H10 1H09 % Chg.
------------------- ---- ---- ------
Financial Highlights
--------------------
Net revenue 1,976.9 1,797.2 10.0%
Operating profit 280.9 231.8 21.2%
Adjusted EBITDA 731.4 601.6 21.6%
Net income (23.9) (283.6) n/a
---------- ----- ------ ---
Operating margin 14.2% 12.9% +131 bps
Adjusted EBITDA
margin 37.0% 33.5% +352 bps
Net income margin -1.2% -15.8% +1457 bps
----------------- ---- ----- ---------
Total Debt 2,964.3 2,967.7 -0.1%
Net Debt 2,859.9 2,682.0 6.6%
Total Debt/ LTM Adj.
EBITDA 2.0x 2.6x
Net Debt/ LTM Adj.
EBITDA 2.0x 2.4x
EBITDA/ Net interest
expense 4.8x 3.8x
-------------------- ---- ----
Operational
Highlights
-----------
Homes passed 2,796,328 2,652,226 5.4%
Cable Television
subscribers 953,535 8 79,923 8.4%
High-speed internet
subscribers 325,231 250,511 29.8%
Telephony lines 180,255 95,203 89.3%
--------------- ------- ------ ----

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/

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