Good morning, welcome to Megacable's first quarter 2026 earnings conference call. With us this morning, we have Mr.

Enrique Yamuni, CEO, Mr. Raymundo Fernández, Deputy CEO, and Mr.

Luis Zetter, CFO. Let me remind you that the information discussed at today's earnings call may include forward-looking statements on the company's future financial performance and prospects, which are subject to risk and uncertainties.

Megacable undertakes no obligation to update or revise any forward-looking statements. I will now turn the call over to Mr.

Enrique Yamuni. Sir, you may begin.

Thank you, Saúl. Good morning, everyone, and thank you for joining us today.

With a solid beginning of the year, we are pleased to announce the results of the first quarter of 2026, which came in line with our expectations once again, evidencing the resilience of our operations and strength of our market position. These results reflect outstanding performance in an economic environment that presented diverse challenges at the outset of the year, marked by uncertainty around trade policy, among other factors, reaffirming our ability to create value.

In this context, we managed to present a period with continued subscriber growth, consolidating our presence in the new territories and maintaining subscriber levels in legacy territories. Outstanding mass market revenue increase including ARPU expansion, accelerated net profit growth, and a seasonal CapEx decrease supporting a higher cash generation.

Operationally, broadband remains the main driver of business growth. Net additions of internet subscribers remained within the quarterly range that we have been discussing in recent periods.

We expect to increase the pace of them in the next quarters, as a result of better services and a very competitive commercial offer. At the same time, we continue restructuring our network.

We have evolved into a predominantly fiber-based company, and the few areas that still rely on legacy infrastructure would continue to migrate over time. This advancement reflects our approach to competition, capitalizing on the quality and capabilities of our network beyond just pricing.

We are convinced that our infrastructure will continue to be one of the main sources of differentiations and sustainable value creation for Megacable. In terms of financial results, our consolidated revenues and EBITDA continue to grow at a single-high digits, while the quarterly figure for net profit recorded one of its best performances in the last 2 years.

Moreover, our balance sheet remains strong with a decreasing leverage ratio, that implies that Mega has a privileged position to take on investments opportunities that might arise. Regarding CapEx, it is worth noting that CapEx for the first half of the year is typically lower as a percentage of revenues.

This quarter CapEx as a percentage of revenues reached one of the lowest levels since the launch of our expansion and evolution projects. Despite pressures stemming from geopolitical situations and the related price increase in some inputs, we successfully offset these challenges through greater efficiency in the execution of our investment and a strategy focused on a more selective CapEx deployment in the expansion territories.

As a result of the above, we can expect 2026 full-year CapEx to be around 24% to 27% of revenues for 2026. We have demonstrated that our growth trajectory is advancing according to the 5-year plan that we set, and that we have successfully transitioned from a phase of intensive investment and growth to a phase of returns.

Our efforts continue unchanged. It is clear that the next phase will be marked by pursuing operational efficiency, consolidation, and digitalization.

Also, advances in artificial intelligence and digitalization are a core pillar of Megacable's innovation. Under our MEGA-IN concept, we are achieving efficiencies that will, with no doubt, yield significant results in the coming quarters.

These processes will make us more competitive in the market and open up new areas of opportunity. Before concluding, following the resolution approved yesterday at the shareholders' meeting, the company will distribute a dividend of 3.2 billion pesos.

This reflects our confidence in Megacable's cash generation capacity and our commitment to delivering value to our shareholders. We expect this distribution to represent one of the highest dividend yields in the market, in line with previous periods.

In summary, the first quarter was consistent with the seasonal trends we usually see at the beginning of the year. Although we faced some challenges, none have altered our confidence in the business outlook.

We remain focused on execution, capital discipline, and strengthening Megacable's competitive positions in the Mexican telecom market, reinforcing our role as a key industry player with an evolving infrastructure that supports a more connected, sustainable, and innovative future. With that, let me turn the call over to Raymundo for the operational review.

Raymundo, please go ahead.

Thanks, Enrique, and good morning, everyone. As Enrique mentioned, the first quarter developed broadly in line with the seasonal trends we usually see at the beginning of the year.

In that context, operating trends remained sound, and commercial execution continued to support growth across the business. Starting with network development, our footprint reached 19.5 million homes passed at the end of the quarter, up 11% year-over-year, while our network extended to approximately 110,000 km, an increase of 7%.

These figures reflect the scale we have built and, more importantly, the platform we now have to continue monetizing recent investments. Fiber migration also continued to advance, with approximately 86% of our subscriber base served through fiber technology at quarter-end, compared to 77% in the same period last year.

We have already reached a level of operational and commercial maturity comparable to that of pure-play fiber operator. Turning to subscriber trends, internet subscribers reached 5.9 million at quarter-end, up 9% year-over-year, equivalent to 495,000 net additions over the last 12 months.

Sequentially, we added 101,000 subscribers, consistent with the range we have communicated in previous quarters. Telephony subscribers reached 5.2 million, increasing 7% year-over-year, or 353,000 net additions over the last 12 months.

During the quarter, net additions totaled almost 65,000. Telephony continues to play an important role within our bundled offering by reinforcing the value proposition of the mass market.

In mobile, our MVNO operation continued to gain traction. We closed the quarter with 740,000 lines, representing a 29% year-over-year increase, equivalent to 164,000 net additions over the last 12 months.

Sequentially, net additions totaled 61,000 lines, making it the best performance since early 2022, result of a commercial strategy with lower ARPU, but higher load rate. We continue to see mobile as a relevant complement to our fixed services, and as an additional tool to strengthen customer loyalty, which now also contributes with a reasonable revenue stream.

In content, subscribers stood at 4 million, as we continue adapting the product mix toward a broader digital proposition that is more aligned with how customers increasingly consume video. During the quarter, 3.8 million subscribers correspond to traditional video, while the remainder was contributed by the more than 2.2 million streaming app users recorded at quarter-end.

Our focus is on building a broader content proposition that combines linear video, apps, and other non-traditional consumption models. We believe that remains an important differentiator in how we position the service, and maintain value perception at the household level.

Overall, RGUs reached 15.2 million, an increase of 8% versus the same period last year, supported by the continued expansion of the subscriber base, and the relevance of bundled services within the mass segment. Regarding churn, trends remained under control.

During the quarter, churn stood at 2.0% in internet, 2.4% in video, and 2.1% in telephony. These levels remain manageable and do not indicate any deterioration in the underlying business.

In fact, internet, video, and telephony improved versus first quarter '25, despite the price adjustments implemented during this quarter. On the revenue side, ARPU continued to trend positively, supported by the aforementioned price adjustment.

Under the new disclosure methodology adopted last quarter, ARPU calculated over internet subscriber stood at 440.9 pesos, up 2% year-over-year. We believe this methodology provides a clearer benchmark for investors and improves comparability with peers.

Finally, in the corporate segment, revenue remained softer on a year-over-year basis. The above was mainly due to the current market conditions, leading to lower average revenue, along with a more competitive environment in expansion areas, which requires us to be more creative and efficient going forward.

The underlying operations continue to execute, and we remain focused on service quality and commercial discipline that will allow us to go back to revenues levels before 2025. Overall, the first quarter was consistent with the operating trend we have seen in recent periods.

Our platform remains strong, our network continues to differentiate the company, and our priorities remain centered on improving penetration, monetizing the scale we have built, and adapting our commercial and content offerings to what customers value most. Thank you for your attention.

I will now turn the call over to Luis for the financial review.

Thank you, Raymundo, and good morning, everyone. Megacable delivered another quarter of solid top-line performance.

Total revenues reached 9.4 billion pesos during the quarter, an increase of 9% versus the same period last year. This result was mainly supported by the continuous strength of the mass market segment, where revenue rose 11% year-over-year to more than 8 billion pesos, reflecting continued subscriber growth and a positive ARPU trend.

As in prior quarters, mass market remained the main driver of the business and more than offset the softer performance in corporate. Below the revenue line, cost of services reached nearly 2.5 billion pesos, an increase of 9% compared with the first quarter of 2025, while SG&A also increased 9% year-over-year, to a little over 2.5 billion pesos.

These movements were mainly attributed to a larger operation, including higher labor costs driven by annual minimum wage adjustments and the expansion of our workforce, particularly in newer territories. From a profitability standpoint, EBITDA reached more than 4.3 billion pesos, up 9% year-over-year, with an EBITDA margin of 46.2%, in line with the same period of last year.

We expect margins to strengthen on a comparable basis as the year progresses. In this context, net income totaled 841 million pesos, increasing approximately 16% versus the same quarter of last year.

This was one of the strongest quarterly results since the second quarter of 2023, as interest rate reduced, and despite the continued impact of depreciation associated with recent infrastructure investments. Turning to the balance sheet, cash and investments closed the quarter at 5.6 billion pesos, while net debt stood at 20.4 billion pesos, down 3% year-over-year.

The debt-to-EBITDA ratio decreased from 1.41 times in the first quarter of 2025 to 1.25 times this quarter, while our interest coverage ratio closed at 6.38 times. This performance confirms that Megacable continues to operate with a strong liquidity position and a conservative balance sheet.

Our leverage profile remains one of the strongest in the sector and continues to provide high flexibility for both operations and capital allocation decisions. Quarterly CapEx totaled 2 billion pesos, a decrease of 14% compared with the same period of 2025, as we continue moving past the peak of our expansion and network evolution cycle.

In this respect, CapEx represented 21.3% of total revenues, compared with the 26.8% in the prior year. It is important to note that this figure is in line with annual seasonality, with a softer first half of the year followed by an increase in the last 6 months.

At this point, although we are maintaining our full-year CapEx guidance of 24% to 27% of revenues, we are monitoring the potential effect of geopolitical and trade-related developments on equipment and deployment costs. If those conditions persist for several months, we could see an increase versus the original CapEx plan.

Even in that scenario, we retain enough flexibility to rephrase part of the program if needed, without compromising our broader strategic objectives for 2026. Finally, regarding dividend payment approved by the shareholders' meeting, even after the distribution, we expect leverage to remain at healthy levels, with the usual temporary increase in the second quarter and subsequent normalization thereafter.

In summary, the first quarter showed resilient revenue growth, healthy profitability, strong net income generation, and continued balance sheet strength. The business remains well-positioned, focusing on improving profitability and cash flow generation.

Thank you for your trust. I will now open the floor for questions.

If you have a question, please use the raise your hand button of your Zoom application, or you can also type your question in the Q&A section of the Zoom platform. Please make sure that you are not muted when it's your time to participate.

The first question comes from the line of Marcelo Santos from J.P. Morgan.

Marcelo, go ahead.

Hi, good morning. Thanks for taking my questions.

The first question is regarding the CapEx. How do you see that progressing?

If you could provide us an update for the next couple of years, how do you see that going down? The second question would be regarding you made a comment on pursuit of consolidation.

How you're seeing this, what are the opportunities you see, what kind of consolidation would you be seeking out? Thank you very much.

Hey, Luis, you want to go ahead with the CapEx?

Yes. Thank you, Marcelo, for your question.

On the CapEx, as we have stated, we are on leaving the investment cycle of the expansion and the GPON evolution project, we are in a reduction. Also, with the revenues increasing, we for sure continue to state that CapEx will go down as a percentage of revenues.

This year we still foresee 24% to 26% or 27%, depending on inflation created by geopolitical effects. Next year, we are seeing a reduction, 22% to 24%, and thereafter also going down on 2027, 2028.

Hi. The second question was regarding consolidation.

I believe that was mentioned by Enrique in his speech. What we meant, Marcelo, is that we have a strong period of expansion investment and an investment for the GPON evolution.

Both projects have been critical, and we believe we did it in the right time. We have been able to grow in the organic markets with the GPON evolution with it, and we have expanded our footprint in the expansion territories.

What we're saying about consolidation is that the period of intensive CapEx has passed by, and now is the period to consolidate our operation into continued growth and better efficiency operation in the markets where we grow. That's what we tried to send the message is consolidate our operation with a much more efficient way after all this period of huge investment CapEx provided.

That's what we meant.

Okay. Very clear.

Thank you very much for both answers.

Thanks to you, Marcelo.

Thanks, Marcelo. The next question comes from the line of Phani Kanumuri from HSBC.

Go ahead, Phani.

Hi, thanks for taking my questions. The first one is regarding the AI impact on efficiency.

What are the areas that you are expecting to see the impact from AI on the costs, or do you see even the impact from revenues because of AI? The second one is regarding your corporate segment.

You mentioned that you need to be more creative in your offerings to go back to the revenue levels before. If you could expand on that comment, it would be great.

Thank you.

Thank you, Phani. Very, very interesting question, both, as all the questions we received.

The impact of AI is going to be strong on this, and in every industry, but it's going to be strong in our industry, too. We're very happy to the process that we have, the period that we have implementing AI within Megacable.

That's part of the consolidation I was talking before, because we are implementing AI in the majority of the functional and operational areas of the company. We already have virtual agents working in our contact center.

We already have all the knowledge of Megacable to be trained and to be interactive with our employees. We already have that to have all the analysis and analytics on the NOC and the core.

More than that, we've been having third party looking at our rate of maturity of AI within Megacable. I'm really, really proud to say that we are one of the highest in terms of implementing AI within Mega.

That what we see in the future is nothing but continue to improve our margins and EBITDA and be a much more efficient company. On the other side, the AI market will continue to improve data center, and continue to increase consumption on the cloud, and we do expect to adapt ourselves to that and bring that offer within the corporate segment that we have.

Second question, regarding the corporate segment: still, we are above the 5 billion mark per year that we have, that we passed in the 2024. We haven't decreased that in that part, even though the results are not what we wanted, are soft.

We expect that to change because we're doing some adjustments in terms of the markets that we are approaching with a new and new product offers that we are sending to the enterprise and the corporate segment. We've been soft in government sector, that's been hurting us.

We have not been able to increase the revenues coming from that segment. Overall, that's why we keep at the 5 billion level that we have.

We expect to go this year above what we have in 2025 and trying to go back to the trends that we have before. That's the explanation of the corporate and how we see the AI.

Thanks, Raymundo. Maybe can I just follow up on your comment on cloud and data centers?

Are you trying to be a reseller of the cloud, or would you also be going into building the data centers in Mexico?

Good to be clear on that. No, we're not investing into cloud.

As I said, the period of strong strong investment for Megacable has passed by. We will continue to meet what Luis was saying, a lower trend of CapEx over revenue to the future.

We already have data centers in the western part of Mexico, and we have huge amount of data center edge for the purpose of getting it to the mid to large cities that has already been invest there and ready for the future. In the years to come, data consumption will be decentralized and will come from the central part of Mexico and the US more and more into the edge, first into the north part of Mexico and then into the western part.

That one is going to give us a big value for our data center. In the next years, that one will continue to be decentralized into the regions.

Those investments has already been made, and we will be part of that data center growth, not as a significant part of Megacable, I want to say. When I meant cloud and collaboration, those are the services that we sell in MCM Telecom.

MCM Telecom not only sells connectivity or infrastructure, but also sells cloud and collaboration under a brand name of Megacable called Sinfonía. That's our product where we have the best of different suppliers to provide collaboration.

That's what I meant, that we will continue to implement AI to our customers over that cloud and collaboration segment that we have.

Perfect. Thank you for the detailed answers.

Thank you, Phani. The next question comes from Isaac Gonzalez from GBM.

Go ahead, Isaac.

Good morning, Enrique and Raymundo. I have one question only.

How much traction have you seen in your price increase, and one of your main competitors recently increased speeds without raising prices, could we interpret that margin expansion is being constrained by these competitive dynamics?

Thank you, Isaac. Yes, we know, we are aware of competition.

We keep track of them like they do of us. Let me tell you that the speed they increase, we already did that and way above what they did.

Our minimum amount that we are commercializing right now is 200 megabits, and we are the highest speed in the market for the low-entry package of any of the companies that are in the fixed segment. Speed is something that normally we are the leaders on that part, and we continue to have that for the price that we're receiving.

On the other hand, we have a price increase over this period, because we have different segments of subscriber with different packages and rates, and normally we have some space to increase rates to some of those subscribers, while keeping the lowest ARPU in the market. When we see our competitors getting into a new broadband service with a aggressive price, we already have that price, and we are commercializing on that one.

I believe we're the strongest and well-positioned company of the market right now, because we have a high speed, a good network, and the best price. Also, I'd like to say, the best service.

All our indicators continue to provide that Megacable Mega, on the mass market side, continue to improve the Net Promoter Score and the customer satisfaction. It's a killer combination when you have a good price, a good product, good service, the everything all around.

That's the secret of our success so far. We continue to provide good results in revenue and subscribers, and that's what we look into the future, Isaac.

Thank you for the question.

Thank you. Very clear.

Thank you, Isaac. The next question comes from Miriam Soto from Scotiabank.

Miriam?

She's on mute.

Miriam, you're on mute.

Maybe we go to the

next one.

She's on mute.

Thank you for taking my question. My question is regarding about if the company could consider entering the wireless business directly by acquiring AT&T, and what is your opinion on the asset valuation?

We are aware, it's public that it might be an intention of one of our competitors to enter and get into the AT&T. We are not moving from what we know how to do the best.

We believe that we have the right size and the right technology to be a good player on this one. As I said before, we are going to capitalize that into the future.

On the other hand, we are on the wireless market. We have Mega Móvil as a service only aimed to postpaid.

We have a terrific quarter, increasing our subscriber base, better it's a historical growth on that part. We almost reached the 3/4 of a million subscribers.

We expect to get close to a million by the end of the year, slightly below that part, with no CapEx for the company, getting the best of the service, the coverage coming from two companies: one is exactly AT&T, the other one is Altán. We are looking into how to integrate more players, like Telcel into the future.

Our customers will have the best of the three companies on that part and make it competitive. Without having to invest into the frequency, we already have a good MVNO in our part.

We are happy with that, and we're providing our subscribers with the quadruple play already. Thank you, Miriam.

Thank you.

The next question comes from Emilio Fuentes from GBM.

Hi, thank you for taking my question. My question is regarding your CapEx-to-sales guidance for the year around 24% to 27%.

I was wondering if the higher range already incorporates potential supply chain disruptions, or could we expect a worst-case scenario where it could go above this 27%?

As you have seen, normally the first half of the year, we have lower CapEx, and intensifies in the second half. That's why we have to be cautious on the 21.3% that appears on this first quarter.

That is pretty well aligned with the results of the year that we expect, around 24% to 26% or 27% 26%. We are just being conservative in case of additional inflation comes if the global situation does not improve in a short term.

We want to be sure that we have the right spot for our CapEx. Also, we have some buffer in the investment phase.

We don't need to spend CapEx at the same speed that we're doing in the past, we have flexibility on and leverage or wait to leverage that number, and be sure that we don't let that out.

Let me complement Luis on that part. Yes, the 24% to 26% already integrates increase that we might receive or might have in prices on the worldwide cost of products that we have.

It does include exchange rate as what we know so far. It does include the increase that we might have, and it does include the reduction of CapEx by kilometers and production that we have in the past.

You can have that 24% and 26% with a clear idea that includes everything within the reasonable amount of knowledge that we might have as of April of this year.

Thank you. Really clear.

If I may, could I ask a second question on the AI? You mentioned the benefits.

Do you have any rough estimate of the potential size and timing of those benefits, or maybe on a basis points from the margin? What can we expect from these programs you're implementing?

What you can expect, Emilio, and it's good. I don't believe everybody knows and can check the amount of what is going to happen with AI in the next 5 years or 10 years on that.

Talking about the present, what we're implementing is operational efficiency, and that aim to bring the margin of Megacable to better levels to what we have right now, even though we have the highest margin in the industry. Remember that in the last quarters that passed by, we've been having a lot of pressure into labor, as all the industry on that part, plus all the maintenance and support that we need from all the CapEx that we grow in the past.

Even though that, we've been managed to keep our margin and increase the margin. As penetration of expansion will come into the future, and AI and efficiency will come on the organic markets, our operating margin will continue to increase in the years to come, okay?

Luis, you want to complement?

No, that's okay.

Thank you.

Thank you, Emilio. The next question comes from Ernesto Gonzalez from Morgan Stanley.

Hi, thank you for taking our question. Eight, two.

The first one is in the past, you have mentioned that if some of your competitors don't raise prices, you could face a more challenging outlook or ability to increase prices going forward. I wanted to get your thoughts on this.

The second question is with all the rumors of M&A in Mexico, potentially a competitor of yours acquiring AT&T operations, does that change your outlook for fixed consolidation in Mexico? Thank you.

Thank you, Ernesto. As I said before, we have the lowest ARPU in the industry.

We still have some room to increase prices according to markets, according to packages that our subscribers has into that part. The not raising the prices, might not good to say, but it hurts the competition more than us.

There is one competitor that doesn't increase prices, which is Telmex. That's the one that's been having that, even though it has higher packages.

The one that they commercialize stay at the same price with lower speeds. What we've been doing is increasing our speed to those subscribers significantly.

We have 200 megabits on the single package, which is broadband and telephony, and that one will allow us to have a better price in that part than what we have with the competition. We will continue to increase prices at the rate that we have in the past.

Bad to say, but it's not around the 5% per year. Normally, we increase 2% to 2.5% prices.

We're more aiming to growing the EBITDA and the revenue year-over-year than just to increase prices. I believe, on a defensive move, we are the best to continue to growth, because of our market price and the structure that we have.

The other one was the question regarding the outlook of consolidation. Enrique, I don't know if you want to say something.

It's related to the AT&T on the wireless on that part, and if that is going to affect how we see everything on our position.

No, really, I don't really want to make a lot of comments about that. Obviously, the only consolidation that is in the horizon is the AT&T decision to leave the country.

They will leave the country. We don't know who's going to at the end keep that operation.

As we saw in the past also, that Telefónica finally sold its operation to a one new cover, a new player in the country. We don't see a lot of consolidation in the horizon, not at this moment, other than the AT&T and what happened about a month ago with Telefónica.

Really clear. Thank you.

Thank you, Ernesto. I'd like to add also regarding the market.

Market has been increasing the penetration of broadband on that part. We still believe there is room to grow in Mexico.

Every time that passes by is slightly, and we all know about that because of the levels of penetration. It's good to say for everybody that out of the penetration of the homes, when you see at our industry and you look at four players, because I don't believe we are five, we are four, satellite is not part of our market, it doesn't compete significantly in our market, it does sell 4G or 5G more than satellite, we respect that, we have four companies, but we don't have the same footprints.

There is one that has the largest footprint. There is a big percentage of homes in Mexico that only has one player, some percentage that has two, some three, and very few that has four.

In those markets where there is only one, we have room to grow. Some markets where it's two, with a lower and legacy technology compared to what we have, we have the ability to grow.

For Megacable, still we have room into the market to grow, too. Regardless whether consolidation or not, we are very focused into growing what we know how to do best.

I wanted to complement that, Ernesto. Thank you.

Really clear. Thank you very much.

Thank you, Ernesto. We have a follow-up from Marcelo Santos from J.P.

Morgan. Marcelo is back.

Hello. Thank you for the follow-up.

My question would be regarding the mobile operation that you have. Do you perceive important improvements in churn when you sell that mobile bundle together with your fixed-line operations?

Just wanted to get a feeling of how helpful that is to your overall operation. Thank you.

Remember that we have 740,000 subs out of the 5.9 million so far. What we know is that churn on the mobile comes from the promotions that we might be aggressive, more than the people leaving.

Yes, we have seen that those subscriber has a slightly better churn than the ones that don't have the quadruple play.

It's a slight improvement that you perceive so far on this bundled

subs. At the end, Marcelo, economics get a lot into the markets where we grow in that part.

Even though when they don't have money for the fixed, they don't have money for the mobile on their part, and they go to a prepaid. Remember that we sell postpaid.

The packages that we have cover the majority of the market, and that's how we've been so successful in the last quarter. I believe it's going to increase.

Mobile is going to be a terrific year for us, and those subscribers will help us to keep or reduce the churn that we have right now.

Okay. Very interesting.

Remember that we also have into the churn the content division that we have, the video content, which is not only focused and aimed to the traditional video, live channels and offline channels, but also to the apps, and we have a really, really good offer to the apps. That one we expect also to help us to keep and reduce the churn of the subscribers that has the triple play with us, not only the quadruple play.

Okay. The same idea, bundling in, people have more difficulties to leave.

Okay. Thank you very much.

That one is tough because we were not successful in keeping live traditional TV, as well as the whole industry, but we've been very successful in providing apps to our subscribers. Content at the end will help us if we are continue to be smart in how to market those apps and streaming to our subscribers.

All right. Thanks a lot.

Thank you, Marcelo. The next question comes from Alejandro Azar from GBM.

Go ahead, Alex.

Thank you, Saúl, and good morning, guys. A lot of questions on consolidation, and this is the last one, probably.

In the case that consolidations were to happen in the fixed market, how would you think about the competitive position of the third smaller player that is left out?

You mean what happened if one of our competitors acquires AT&T or...

No,

no, no, the

fixed,

the third smaller.

In the case that either Totalplay with you guys or with Televisa, what do you think happens with the other player?

The way I see it is that any consolidation will benefit the whole market.

Okay.

Everyone.

Everyone is going to be benefited from that, and we're...

Not only the two that consolidate, but everyone.

Perfect. Thank you, guys.

Thank you.

Thank you, Alex. Now we're going to pass some questions from the platform.

We have the first one from [Jack LeRoux?] from [Dapten?]

: "Good morning. Please, could you share the average penetration rate for the expansion regions older than 12 months?"

Thank you, Jack. The penetration that we have on expansion territories is around 14% to 15%, 16%.

We expect to reach above the 20%...

It's very variable, because it depends on the seniority of the areas. If areas where that we activated or we started to commercialize the service 2 to 3 years ago, the penetration there is about 20%,

25%. That's why...

In the average, since we've been adding new areas, the average is around 14%.

That's why we aim to have above 20% penetration, as long as those neighborhoods and areas continue to mature.

The next question comes also from [Jack LeRoux?] : "You mentioned that your strong balance sheet offers you flexibility to pursue investment opportunities.

Are you targeting any specific opportunities at the moment?"

Nope. We're targeting to improve, still sequentially, our revenues, EBITDA, and CapEx over revenue and free cash flow that looks really, really good for 2026 and 2028 and above.

That doesn't mean if any opportunities arise, we will look at them. That's what we mean is that if anything arises, we

are open. Now we have a question from Marco Battaglia from [Simafin?]

Fund Management: "Can you quantify how much margin improvement you expect this year?"

We have been mentioning that as the expansion territories improve on the margin, it will impact the overall margin for the company. The organic territories stay with the same margin as they were before.

We basically are expecting a half a point improvement on the margins for 2026, and also for maybe a little bit higher for next year.

We have a final question: "What adaptations have you made to your expansion strategy as you have progressed in terms of regions, target customers, and pricing?"

Oh, the adaptations that we have is we have special offers over in the expansion territories. We have special motivation to the sales force and different channels that we have right now.

We're adapting on that. The segment that we're adapting more is corporate, because corporate has a stronger competition in the expansion territory, and that's why we haven't grown at the same speed that we have in the mass market.

That's where we create new products, low-end products for the enterprise, SMBs, that includes cloud and collaboration. In the mass market, our strategy continued to be the same: the best speed, 200 megabits, better than the competition, with aggressive price entry that increases into the future, and symmetry into the broadband that we have there.

That's our strategy.

We have no more questions in the queue, I pass the line to Mr. Enrique Yamuni for final remarks.

Thank you, Saúl. As always, it is a pleasure to discuss our results with you.

Please contact our Investor Relations department if you have any more questions or concerns regarding the company. Please have a wonderful day and weekend, very, very nice weekend.

Thank you.

Thank you, all. Bye.