Cablemas 1Q10 Net Revenue and Adjusted EBITDA Up 8.7% and 16.4% YoY, Respectively

Cablemas 1Q10 Net Revenue and Adjusted EBITDA Up 8.7% and 16.4% YoY, Respectively

MEXICO CITY, May 20 /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-month period ending March 31, 2010.

Commenting on the results, Carlos Alvarez, Chief Executive Officer said, "The year started off very well, with revenue up 8.7% year-on-year as we continued to expand our subscriber base across our three business segments. We also reduced or maintained churn rates, despite the difficult environment."

"During the quarter the number of cable television subscribers rose by 6.9%, high-speed Internet subscribers by 25.7% and the number of telephony lines by 94.5%. At the same time, churn levels remained relatively stable. The continued success of the yoo® advertising campaign and the ongoing improvement in customer service contributed to the stronger performance, despite the competitive environment," continued Mr. Alvarez.

"EBITDA increased 16.4% during the year, while the Adjusted EBITDA margin rose 239 basis points to 36.0% reflecting revenue growth and the continued success of our cost cutting efforts," concluded Mr. Alvarez.

Financial and Operational Highlights

(in million Mexican
Pesos) 1Q10 1Q09 % Chg.
------------------- ---- ---- ------
Financial Highlights
--------------------
Net revenue 978.3 899.9 8.7%
Operating profit 132.3 104.4 26.8%
Adjusted EBITDA 352.5 302.7 16.4%
Net income 1.6 (349.0) n/a
---------- --- ------ ---
Operating margin 13.5% 11.6% +193 bps
Adjusted EBITDA margin 36.0% 33.6% +239 bps
+3895
Net income margin 0.2% -38.8% bps
----------------- --- ----- ------
Total Debt 2,853.0 3,242.2 -12.0%
Net Debt 2,598.8 2,831.8 -8.2%
Total Debt/ LTM Adj.
EBITDA 2.1x 2.9x
Net Debt/ LTM Adj. EBITDA 1.9x 2.5x
EBITDA/ Net interest
expense 4.3x 3.7x
--------------------
Operational Highlights
----------------------
Homes passed 2,759,827 2,619,654 5.4%
Cable Television
subscribers 934,676 874,696 6.9%
High-speed internet
subscribers 310,752 247,237 25.7%
Telephony lines 164,726 84,680 94.5%
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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: Allan Ituarte Hesles, Planning & IR Manager,
Cablemas, (5255) 41-21-83-35, aituarte@cablemas.com.mx; or In the United
States: Susan Borinelli, Breakstone Group, +1-646-330-5907,
sborinelli@breakstone-group.

Web Site: http://www.cablemas.com/

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