Cablemas 3Q10 Net Revenue and Adjusted EBITDA Up 12.9% and 13.1% YoY, Respectively

Cablemas 3Q10 Net Revenue and Adjusted EBITDA Up 12.9% and 13.1% YoY, Respectively

MEXICO CITY, Nov. 12, 2010 /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 nine-month periods ending September 30, 2010.

Commenting on the results, Carlos Alvarez, Chief Executive Officer said, "Performance remained strong this quarter with year-on-year increases of 12.9% in revenue and 13.1% in EBITDA."

"In fact, we expanded our subscriber base across the board while reducing churn rates. The number of television subscribers rose by 8.2%, high-speed Internet subscribers by 26.9% and telephony lines by 57.6%. These gains together with the ongoing benefit from our cost cutting programs resulted in a slight increase in the EBITDA margin to 36.5%," continued Mr. Alvarez.

"Continued growth in revenues and EBITDA coupled with stable debt levels contributed to improvement in Cablemas' financial profile. As a result, on October 5, 2010 Fitch Ratings upgraded Cablemas' local and foreign currency Issuer Default Ratings to 'BB' from 'BB-'; and the national scale long-term rating to 'A+(mex)' from 'A(mex)', with a Stable Outlook. Fitch also upgraded Cablemas' US$175 million 9.375% coupon Senior Guaranteed Notes due in 2015 to 'BB' from 'BB-'."

"We also continued to make progress in our strategy to digitize our cable television network and have launched this service in Tijuana, Cuernavaca and Cancun. We will continue rolling out this service in the coming months as we seek to further improve customer satisfaction and maintain our competitive position," concluded Mr. Alvarez.

Financial and Operational Highlights
------------------------------------

(in million Mexican
Pesos) 3Q10 3Q09 % Chg.
------------------- ---- ---- ------
Financial Highlights
--------------------
Net revenue 1,018.1 901.5 12.9%
Operating profit 131.1 125.2 4.7%
Adjusted EBITDA 371.4 328.2 13.1%
Net income 9.1 63.4 -85.6%
---------- --- ---- -----
-101
Operating margin 12.9% 13.9% bps
Adjusted EBITDA
margin 36.5% 36.4% +7 bps
-614
Net income margin 0.9% 7.0% bps
----------------- --- --- -----
Total Debt 3,096.2 3,039.0 1.9%
Net Debt 2,956.8 2,753.2 7.4%
Total Debt/ LTM Adj.
EBITDA 2.1x 2.5x
Net Debt/ LTM Adj.
EBITDA 2.0x 2.3x
EBITDA/ Net interest
expense 4.0x 4.1x
--------------------
Operational
Highlights
-----------
Homes passed 2,829,020 2,696,640 4.9%
Cable Television
subscribers 963,662 890,270 8.2%
High-speed internet
subscribers 338,673 266,824 26.9%
Telephony lines 187,732 119,144 57.6%
--------------- ------- ------- ----

(in million Mexican
Pesos) 9M10 9M09 % Chg.
------------------- ---- ---- ------
Financial Highlights
--------------------
Net revenue 2,994.9 2,698.8 11.0%
Operating profit 411.9 357.1 15.4%
Adjusted EBITDA 1,102.8 929.9 18.6%
Net income (14.8) (220.1) n/a
---------- ----- ------ ---
Operating margin 13.8% 13.2% +52 bps
Adjusted EBITDA
margin 36.8% 34.5% +237 bps
Net income margin -0.5% -8.2% +766 bps
----------------- ---- ---- --------
Total Debt 3,096.2 3,039.0 1.9%
Net Debt 2,956.8 2,753.2 7.4%
Total Debt/ LTM Adj.
EBITDA 2.1x 2.5x
Net Debt/ LTM Adj.
EBITDA 2.0x 2.3x
EBITDA/ Net interest
expense 4.5x 3.9x
--------------------
Operational
Highlights
-----------
Homes passed 2,829,020 2,696,640 4.9%
Cable Television
subscribers 963,662 890,270 8.2%
High-speed internet
subscribers 338,673 266,824 26.9%
Telephony lines 187,732 119,144 57.6%
--------------- ------- ------- ----

To obtain the full text of this earnings release, please visit our Investor Relations website at http://www.cablemas.com.mx/investorRelation/pressRelease.jsp 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.

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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