Maxcom Reports Results For The Second Quarter And First Half Of 2008

Thursday, July 24th, 2008
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Pay TV number of RGUs reached 11,217. The Company recorded TV net adds of 3,034 in the quarter

MEXICO CITY — Maxcom Telecomunicaciones, S.A.B. de C.V. (“Maxcom”, or “the Company”) (NYSE: MXT) (BMV: MAXCOM CPO), one of the leading integrated telecommunications companies in Mexico, today announced its unaudited financial and operating results for the quarter ended June 30, 2008.

Residential

Residential revenues represented 41% of the total during the second quarter, compared with 38% in the same quarter of 2007. Revenues in the residential business segment reached Ps. 272 million, an increase of 24% in comparison to Ps. 219 million in the second quarter of 2007.

The 24% increase in revenues is directly related to the 41% increase in RGUs and was mainly driven by:

  1. An increase in the number of mobile RGUs to reach 38,421, and an increase in the number of pay TV RGUs to reach 11,217. The Company is now offering its bundled products to most of the customer base given the promotional offers, attractive pricing, additional digital services and expanding coverage;
  2. An increase in the number of data RGUs which increased by 97% to reach 20,354; and,
  3. A 14% increase in voice RGUs (formerly voice lines in service) in the residential business segment to reach 235,387.

For the six months ended June 30, 2008 revenues from the residential business totaled Ps. 529 million, or 41% of total revenues from Ps. 432 million recorded in the same period of 2007.

Our sales force has successfully been able to up sell different products and services as well as bundled products under double, triple and quadruple play. This quarter RGU per customer increased from 1.1 in the second quarter of 2007 to 1.4 in the second quarter of 2008.

                           2Q08      2Q07     Δ%
                        -------   -------   ----
Residential Customers   224,690   194,775    15%
Voice                   220,991   194,036    14%
Data                     17,272     8,761    97%
Mobile                   36,595         -   N.A.
TV                       11,217         -   N.A.

More: 2Q08 Earnings Report