Message from the Chairman of the Board of Directors
Dear shareholders,
It is with great satisfaction that I share with you the results and achievements reached by MEGA during 2023.
Starting with the expansion project, which, since its announcement in 2021 and until the end of 2023, has allowed us to reach over 6 million additional homes passed through the construction of 28 thousand new kilometers of fiber network.
At the beginning of the year, we had a very clear goal of what we wanted to achieve in terms of infrastructure. However, given the market conditions such as foreign exchange rate levels, we achieved significant agreements that allowed us to accelerate our construction pace and successfully exceed our initial target.
We can proudly state that we are a company with national coverage, present in the 32 states of Mexico and in more than 550 municipalities. This important achievement is the result of the strong investments made in recent years and reflects the dedication and discipline of the Company in executing its projects.
Additionally, we have successfully continued the migration of our subscribers from HFC (Hybrid of Fiber-Coaxial) technology to fiber optic technology, and during these three years, we have already migrated 35 thousand kilometers of network. This process allows us to offer the highest quality services, with the best bandwidths and the latest technology, at a competitive price, at the forefront of the industry.
As a result of our network expansion and evolution projects, by the end of the year, 63% of our subscribers receive their service through fiber.
We will maintain the strategy of gradually migrating subscribers as required, according to market conditions, with the aim of improving our position in the telecommunications sector.
Both the projects of entering new territories and the network’s evolution are steering our Company towards becoming full fiber in the future and maintaining our status as a leading company in the telecommunications sector.
In terms of financial results, we had a significant 10% growth in revenues, primarily from the residential segment, due to the strong addition of subscribers. In these twelve months alone, we managed to increase more than 550 thousand new unique subscribers; the highest annual growth in the Company’s history. On the other hand, the corporate segment registered moderate results, mainly affected by the completion of ho1a’s special projects in 2022. Nevertheless, we are confident that we will regain our momentum in the corporate sector next year.
Our progress in the network evolution and expansion projects is fundamental to our long-term growth, and we are committed to continuing to advance and offer the best telecommunications service in the market.
During the year, we saw a recovery in margin due to operational efficiency shown both in existing territories, where the margin was maintained at the highest levels in the industry, and also in new cities, where the maturation level of some of the territories we opened during 2022 allowed us to have a positive margin starting from September 2023.
Likewise, during this period we remained as one of the companies with the lowest leverage in the industry, with a net debt to EBITDA financial ratio of 1.5 times, despite the high investment levels. It is noteworthy that at the end of 2023, we began the process of a new issuance of sustainability-labeled local notes, which will provide the necessary financing for the final stage of our expansion project.
