Megacable Holdings, S. A. B. de C. V. (MEGACPO) Earnings Call Transcript & Summary

Good morning and welcome to Megacable's Second Quarter 2020 Earnings Conference Call. With us this morning from Megacable, we have Mr. Enrique Yamuni, CEO; Mr. Raymundo Fernández, Deputy CEO; and Mr. Luis Zetter, CFO. Let me remind you that the information discussed in today's earnings call may include forward-looking statements on the company's future financial performance and prospects, which are subject to risks and uncertainties. Megacable undertakes no obligation to update or revise any forward-looking statement. I will now turn the call over to Mr. Enrique Yamuni. Sir, you may begin.

Good morning, everyone, and thank you for joining us today. The second quarter of 2020 was marked by the challenges arising on the measures deploying to contain the COVID-19 spread highlighting the significant economic slowdown reflected in the loss of more than 900,000 formal jobs as of June 30 according to that data provided by Instituto Mexicano del Seguro Social of 12 million, including informal jobs, as indicated by the IMSS. In the 4 months in which we have experienced the pandemic, our everyday life has suffered significant and sudden changes, which we initially thought would be a lot more gradual. In this sense, it's important to highlight the resilience of the telecom sector, which is considered essential, as connectivity has become a fundamental component of our daily lives whether it is for educational, professional or recreational purposes, mainly in the current situation, where people are encouraged to stay at home and performing remotely. This, together with the timely investments in incremental capacity that we have been carrying out of several quarters, which is necessary to support the increased demand for bandwidth, contributed to our quarterly operations by dynamism, posting a resilient performance amid the current cycle. Turning to our quarterly results. Total subscribers went up in the 3 services of the massive segment, supported by our strategy towards the sale of triple-play bundles. In the same line, unique subscribers continued with a strong pace, resulting in higher RGUs per unique subscriber rate. The previously mentioned, coupled with the contribution from additional services, supported a sustained growth in the ARPU on our annual basis. Revenues for the quarter increased in its annual comparison as the income obtained from massive market segments and additional services offset the impact recorded in the corporate segment, as this presented some projects' postponements. Following a tight expense control and cost efficiencies implemented, we were able to increase the profitability metrics when compared to last year as reflected by a higher consolidated EBITDA margin for the quarter and for the first half of 2020 even in this challenging environment. Regarding the special projects that we have been carrying out, we moved forward with the network evolution project, a GPON migration endeavor that will directly influence our competitiveness in near future and ensure the successful continuity of the business as we maximize the value of investments made in past years. We continue to prioritize the most important projects of the company, carefully analyzing those that we are -- that are considered essential and postponing or modifying those whose contribution to productivity is not essential at this time. I would like take the opportunity to remind you that the incorporation of the MVNO service in our offer will bring forth a valuable opportunity to strengthen the commercialization of quadruple-play packages as we have consolidated a highly competitive offer with disruptive rates that is pretty much aligned to the rising consumption trends. Likewise, I would like to highlight the achievement of a significant milestone as our submarine cable is already 100% active, allowing us this period to generate important savings as we will no longer have to disburse excessive connection fees and benefits of our -- of the bottom line and enhance our service portfolio to the offering of more megabytes at attractive prices and diversify our revenue mix as other carriers would probably access our submarine cable towards the payments of wholesale rates. In addition, as anticipated at the end of May, we settled a dividend payment of -- for MXN 1.5 billion, reaffirming our commitment to deliver value to our investors even at the phase of the prevailing environment. Nevertheless, it is worth noting that our liquidity remains in healthy levels, allowing us to build on solid grounds towards the upcoming periods. In this pandemic, our main priority continues to be the safety of our collaborators, clients and their families. We are taking all necessary measures to keep our workplaces sanitized as well as providing materials and personal protective equipment according to the established protocols. Now I will hand the call over to Raymundo.

Thank you, and good morning. Thank you, Enrique, and good morning, everyone. As Enrique just mentioned, during the second quarter, new challenges emerged from the health contingency. Also, in the telecom sector, new opportunities also appeared, such as the surge of Internet demand as well as the need for pay-TV entertainment from both current and new subscribers. In this sense, despite the considerable rise in bandwidth demand, our network performed fast and reliable, reflecting the company's technology edge and high quality of our service, results of the investments we have done in the last period. In this context, Megacable recorded net addition of 206,000 subscribers in the Internet segment over the last 12 months, of which 83,000 were added this quarter, thus, totaling 3.2 million of active subscribers for this service. After the demand for higher speeds continues to rise, the company's ready to take on this challenge with a state-of-the-art infrastructure. As of June this year, the percentage of subscribers with the speeds of 50 megs or more have doubled when compared to a year ago, and our network has absorbed this volume without struggling. In relation to the Video segment, as of June 2020, we reached close to 3.3 million subscribers, recording net annual and sequential additions of 44,000 and 28,000 subscribers, respectively. XView was able to beat the 1 million subscriber mark as of quarter end, recording 455,000 net additions when compared to the same quarter of 2019 and 202,000 sequentially as a result of a very successful marketing campaign. We are preparing for the launch of the next generation of this platform, which will undoubtedly improve the user experience and drive growth in this segment. Likewise, our HD service reported 167,000 net additions in a sequential basis, already surpassing the 1.2 million subscribers. Meanwhile, the Telephony segment posted 2.3 million subscribers at quarter-end, rising 280,000 subscribers on an annual basis and 82,000 quarter-over-quarter. On the MVNO side, our differentiated offer and extensive marketing approach, which geared towards the sale of attractive bundles rather than the individual services, enabled us to reach 44,000 lines at the end of the second quarter, leaving us in a good position to reap the first milestone we've touched. All in all, unique subscriber rose to more than 3.7 million at quarter end, representing an annual increase of 2%. In addition, RGUs grew 7% on an annual basis, totaling 8.8 million. RGUs per unit subscriber was 2.37 as of quarter end. It is important to note that a more selective sales strategy and higher quality services, coupled with a new way of watching TV, such as XView, have positively contributed to boost customers' loyalty, as attested in the stability of the churn rate of the 3 mass segment services even at the face of COVID-19. Turning to the ARPU. ARPU per unique subscriber went from MXN 396.5 in the second quarter of 2019 to MXN 405.7 this period, a 2% annual increase, driven by our triple-play package approach, reflected in a higher number of RGUs per subscriber, the pricing upward adjustment carried out at the end of 2019 and the contribution from additional sales. On a sequential basis, ARPU per unique subscriber decreased due to the implementation of promotional rates, contingency support packages, annual growth and a comparison effect, given that there was no rate increase during this quarter, as we usually do every year. All the above mentioned, once normalized, will help us pick up the growth trend we had from previous quarters. Regarding individual ARPU, we recorded mixed results as Internet and Video remained at the same level of the second quarter 2019 while Telephony decreased 4%, following the offer of cheaper packages and retention strategy since certain clients have experienced the effects of the harsh economic environment. In relation to corporate services, revenue decreased 9% on an annual basis as some clients decided to delay decisions of projects given the uncertainty in the environment. In this sense, ho1a and Metrocarrier recorded a decrease when compared to the second quarter of last year in the amount of 24% and 13%, respectively. This is primarily explained by the delay in renewal of services and support contracts of ho1a in the government segment, which have a major weight in revenues. Additionally, there has been a delay since last year in the implementation of new projects we have in the backlog given the instability in the market. Now regarding Metrocarrier, the main impact came by the cancellation of the Mexico Conectado project as well as delayed investment decisions, mainly in the infrastructure segment. On the other hand, MCM grew 9% during the quarter, reflecting a more stable customer base with a higher component of recurring revenues. Before concluding, our commitment to remain at the forefront continues, as we have already reported a good process -- progress on the development of our GPON network evolution project as well as the second-generation of XView. This later will allow us to further strengthen our market position and differentiate us from the competition. Finally, as Enrique said, we recently launched our submarine cable project, an important milestone that we have been carefully planning and executing for approximately 2 years. This project is already generating additional revenue, cost savings and subscriber growth for the company. Additionally, it will become a launching path for Metrocarrier in this region, benefiting the carrier enterprise and mass segments. With this, I conclude my remarks. Now I would like to hand the call over to Luis, who will share broader color on financial results.

Thank you, Raymundo. Good morning, and welcome, everyone. Consolidated revenues for the second quarter totaled close to MXN 5.5 billion, which represented an increase of 2% when compared to the same quarter of 2019, excluding the nonrecurring revenue recorded in the same period of last year, as higher revenues from the massive segment were able to offset the Corporate Telecom performance. Second quarter massive segment revenues posted a 5% climb when compared to the same period of 2019, following a 7% growth in Broadband, 2% in Video and 11% in Telephony, which were all supported by a wider subscriber base. Corporate Telecom revenues scored 9% lower revenues comparing year-over-year as MCM growth was not able to offset the lower dynamism in Metrocarrier and ho1a, as Raymundo has explained. On a revenue breakdown-wise, 82% of total revenues came from the mass market, while the remaining 18% came from the Corporate Telecom. Cost of services for the quarter remained almost flat versus that of 2019. Cable operations costs increased 5%, mainly due to dollar depreciation, while the enterprise side equipment costs were reduced as a result of lower sales in ho1a when compared to the same quarter of last year. SG&A were basically flat to the second quarter of 2019. Consequently, consolidated EBITDA rose to MXN 2.7 billion, a slight increase of 1%, representing a solid margin of 49.8 %. EBITDA for cable operations totaled MXN 2.5 billion, with a growing margin of 51.2%, excluding the nonrecurring items recorded in the second quarter of 2019, of course. Consolidated EBITDA grew 4% when compared to the same quarter of last year, while EBITDA for cable operations increased 3%. Despite these positive dynamics, net profit for the quarter reached MXN 1 billion, a 17% decrease when compared to the second quarter of 2019. This is primarily explained by the noncash effect of a higher depreciation and amortization that followed the investment deployed over the last 12 months. Together with a higher net comprehensive financing results, given the effect of the Mexican peso fluctuation against U.S. dollar, the company's position in this currently created a financial loss opposite to the effect in the first quarter of this year, which represented a decent gain. At quarter end, company's net debt stood at MXN 5.4 billion, increasing MXN 1.7 billion on a sequential basis, partially reflecting the lower level of cash available, given the fulfillment of certain commitment we've had with our suppliers, as agreed since the first quarter of the year, and the dividend payment conducted this May. It is also relevant to mention that during the quarter, we carried out the amortization of roughly MXN 350 million. The sum of the abovementioned led to a net debt-to-EBITDA ratio of 0.51x and an interest coverage ratio of 22.7x, still very convenient figures. In terms of CapEx, during the second quarter, the company invested MXN 1.3 billion, equivalent to 24.5% of the quarterly revenues. This investment level does not yet reflect a large amount of the network evolution project vital to our future operations, which is expected to pick up in the second half of the year. To conclude, before, the prevailing state of the COVID-19 propagation curve in Mexico and surrounding economic uncertainty, we do not have enough elements to accurately measure the impact of the pandemic towards the second half of the year. And consequently, we are not in position to provide any guidance at the moment. Nevertheless, as you can see in our quarterly results, we are capitalizing on stable demand, the Internet services brought by the pandemic, thus, reaffirming the solid underlying fundamentals of our operations and business model. With this, I conclude my regards. Now let's turn back the call to operator to open the line for Q&A.

[Operator Instructions] Our first question is from Luis Yance from Compass.

Hope you're doing well. Two questions on my side. The first one is on ARPUs and the sequential decline that you explained. How should we think about it going forward? Should we expect another decline sequentially as people perhaps trade down to more economic packages? Or most of the impact already happened, and perhaps we could see a reversal especially because part of the impact had to do with the contingency package that you've put in place that probably no longer is there? And I guess a related question to that is whether you're planning any price increases to compensate for that in the second half of the year. So that will be my first question about ARPUs. And then the second one is on the corporate segment. You mentioned in the press release that in June, you started to see some early signs of recovery. Not enough to compensate for the quarter, but I was just wondering, going forward, whether those encouraging trends that you saw in June continue into the third quarter, and whether that means -- that sort of recovery means that you're actually growing now on a year-over-year basis or just declining less than what we saw.

Sure, Luis. This is Raymundo. Thank you for the -- for both questions. Really good questions. Regarding the ARPUs, yes, we feel that, on a sequential basis, you can -- we can reverse the trend by doing everything you're saying. Let me explain to you that during the contingency period of second quarter 2020, we could not do the normal rate increase that we have for the period as well as all the subscribers that has a promotional that were part of the growth tax for the first quarter and some of these for the fourth quarter. Normally, after you have 3 or 6 months of promotion, we do -- we take them to the regular price that they have. We felt that it was not the right thing to do for our subscribers during the most important part of the pandemic to do the rate increase or to do the promotional update of those rates increase. So we have an effect of lower ARPU for those new subscribers that we have in the package that we have. Besides that, we have -- on a very small percentage, but we also have some of the contingency packages where we lower the ARPU or the price that they were paying. It's very low. We -- our subscribers felt that what they really needed is to do an effort and try to pay for that. So we managed not to have -- we managed to have a low churn by also providing some contingency packages. But all of our subscribers pay. So what you see there in terms of churn, which is lowing the cost, the wealth of the subscribers that remain with us, they all were paying. So all those make -- they finished by third quarter and fourth quarter. So we look at coming into the future rate increase. We are taking our subscribers that have the promotion but did not have the effects of going to the regular rates they have to pay, which they did in 2019. They are taking back, and we are updating our subscribers with the contingency packages to the regular packages on the third quarter. So I will say ARPUs will do a reverse on the trends that you have. Of course, like Luis was saying in his speech, we don't have a magic ball to tell you what's coming into the future. The economic of the pandemic is there, but it's being compensated by the need of our product, both entertainment and broadband. So it looks good, in our opinion, management opinion, but there's always some uncertainty related to the future coming in 2020. Regarding your second question about the corporate, yes, we do see June -- at the end of the quarter, it was a better end of the quarter on that part. It was hard to do a sale of the presentation of our products to new subscribers during the main peak of the pandemic, which was April and May. June was already there. But also I want to explain what happened with the corporate. Corporate Metrocarrier, if you see the results for the second quarter, they were not that back or below what we were having in the first quarter. What we did have was after we see second quarter 2019, where we have the effects of government projects like the one that we will say in the Mexico Conectado, once we finish that and we take that away from our results, it seems like second quarter Metrocarrier is still -- still remain at around MXN 460 million, MXN 465 million for the third quarter, which is pretty much what we have in the first quarter on that part, okay? ho1a is on a different part because ho1a depends more on new projects to continue to increase revenues on that part. And those new projects, they were postponed like Enrique was saying on that part, both in the corporate segment and government segment. And we expect that to pick up in third and fourth quarter as well. But yes, it hit mostly on the corporate segment. What we got was hit by ho1a. You can see that MCM pretty much remained in the same levels of revenue that they will have in the first quarter. They even increased a little bit to the first quarter. So it's really focused on projects, very specific and special projects that depend on ho1a more than Metrocarrier and MCM. So we are confident that this will overcome for the second half of the 2020 as well on that part. We did not have any big government projects on a state related. We did not have that part. We expect to pick up in the majority of referral for the second half. That relates to all that. So I guess those -- that answer the 2 questions, but open to any remarks.

Great. And one follow-up, if I may. Given the strength you've seen on the subscriber growth, both Internet, Video on phone, I was wondering if you could share with us whether so far in the third quarter you continue to see that resiliency in the mass market or whether you started to feel the negative impact from the lower economic activity that we're seeing throughout the country.

Well, as we said, we cannot tell you going to the future. But yes, we can tell you that we do not feel so far any impact. What we feel is that the product, the network that we have has managed the increase of bandwidth and entertainment. We are very, very happy with the 1 million subscribers of the XView and the HD. And going forward, we're very happy of the advance that we have in the GPON evolution projects and the XView 2 platform. So the answer is we haven't seen so far any impact or anything to worry about the massive market. On the other hand, we're very happy to what we see in all our markets going forward.

Our next question is from Arturo Langa from Itaú.

Enrique, Raymundo and Luis. I'm happy to hear you guys are doing well. Two questions. First, regarding the balance sheet and the current assets, we saw a big pickup in accounts receivables and prepayments. In particular, I think the increase was related to prepayments of suppliers, around MXN 1.3 billion. I was wondering if you could comment on what that increase is related to. And then second, just your general opinion regarding what we can expect in churn, in particular, regarding the benefits that Mexican banks are granting credit card payments. And I understand a smaller percentage of your customer base is postpaid, but, on that sense, do you think that's a risk that could exist once the grace period for the banks ends towards late September this year? Those will be my question.

Sure, Arturo. Thanks for the question. And the first one, the increase you see on the balance sheet and the assets is basically the down payment that we gave out for the GPON project, which is there and is running. So that's basically the explanation for that.

I don't know if that's -- or you can want more detail on that, but, basically, it's a very a straight answer -- straightforward on that part. And the churn -- and the second part related to the churn, as I said before, we don't know still the combination of the need for the broadband compared to the economic impact of the pandemic. What we can tell you is that, so far, the need for our products has overcome by far the economic problem that might arise on the market. Also, I can tell you that within the massive market, we have the impact of the SMB. The micro businesses in Mexico are considered part of this massive market that we have. We have a bad April and May, as you are aware. They all -- it closed the stores and small restaurants. And that, right now, we have a great response of those people reconnecting and paying what they didn't have. So some of our results for the massive market in the second quarter are impacted by the micro businesses, which are not considered part of Metrocarrier. Those ones are also with a very low churn. And more than that, they are reconnecting more than we have disconnected in the past. So we're very confident that churn -- it might have to increase because of economics, but, so far, what we see is that the need for the product make the market, make the effort to pay for our services. Remember that we have one of the lowest ARPUs in the industry. So that's why we have such a strong penetration in the lower economic levels, and that's why we have such a small churn at this moment. So that will be the answer.

And just on the first part, is it in any way related prepayment with the exchange rate? Is that any consideration on why you decided to prepay some of the suppliers? Or does it really have nothing to do with that?

Well, sure, Arturo. And it was 2 reasons. One is that, that was part of the agreement we have with our suppliers. And of course, the second one is that we have the opportunity to have, let's say, a low exchange rate. At that point in time, we had some cash that we accumulated with low cost in terms of exchange rates that we use for that purpose.

Our next question is from Juan Alba from Crédit Suisse.

My first question, if I may. Just if you could please elaborate a little bit more on the positive performance of the MCM company. And also, how sustainable is that? And how sustainable are the margins for the non-cable segment EBITDA? That's my first question.

Sure, Juan. It's very sustainable. MCM is a carrier company, so the need for bandwidth in that segment has been growing. It's not -- it hasn't been decreased. That's why we are very steady in the revenues of MCM on that part. We do have some of the final corporate customers that they are acting off for delaying some payments or getting an extension of the period -- of the compromise period that they have. So what we have in MCM is a combination of carriers increasing the bandwidth and some customers asking for more time to pay on that part. So again, as I said, MCM already posted MXN 284 million for the second quarter, which was higher than the first quarter of 2020. So it's sustainable, and we're happy with the results of MCM. Regarding the mass market, the margins, yes, we are also happy with the results of the margin, and we can expect those to continue to be in those levels going forward.

What we have seen in the mass market, it has surprised us, and I'm pretty sure it has surprised other service providers. People have prioritized the payment of broadband and home entertainment because they spend so much time on home. Now -- and it will stay that way at least until the end of the year. We don't see any way of going back to normal in school or work. I think a lot of people will still do home office for the rest of the year. And maybe in the way how we see life has changed dramatically and accelerated a lot of changes that we were seeing slow in the future, it just suddenly happened. So we think it has surprised that because the levels of churn have dropped. And the quickness of the segment, when we disconnect somebody, maybe it would take them 3 days or a week to pay for the reconnection. Now they are doing it within hours. It's been a very pleasant surprise for us. We were ready to do a lot of things to prioritize the retention of subscribers. We have not had to do so many measures for that because we think that the subscriber and people at home are really needing the connections that we provide. We have been able to provide a very good quality of service with no saturation of their network, and the network has not suffered any contingencies in that aspect. So we are very, very happy how the network has been performing and the customer, too.

And if I may, one follow-up. Regarding the competitive landscape in the mass market, do you -- how are you seeing that the competitive landscape? And should we expect any price increases -- generalized price increases to be on hold until 2021? Or how are you seeing that front?

Well, the market is very competitive. It has also -- it has always been very competitive. In broadband, we have very good companies in front of us like Telmex. In some other cases, we have other broadband providers with fiber, some with fiber and some with HFC, others with copper. But we've been performing very well. And the customer has stayed with us, and we expect that -- to keep that way. And what was your other question? It's...

[indiscernible]

No, no. I mean, it will continue. Competition will continue to rise, I think, but we are very well prepared to face that.

And Juan, let me point, which is very important for us. As you and Arturo was asking about, prepaid that we did and that, we continue to do the follow-up of the GPON evolution project as well as to the second part of the XView plus NGV, or next-generation video, that we have. We will continue to provide our subscribers with the best technology and the best product. The new NGV plus that will come in the second half will completely provide our subscribers with a new integrated experience on the set-top box for all the different apps that they have in the market, the way that they will sort and interact with the subscriber with a much more powerful user interface and with a much more robust search guide. It will integrate the content coming from all the different vendors. Those vendors, as you all are aware, the Netflix, the Amazons, the HBO, the Disneys coming to the market, the quality of the economy is increasing. Like Enrique was saying, we believe that this pandemic changed the way we perceive life and we live. Some will be temporary, but some will be forever. The way that people learned to use stream, video conferences, education at a distance and the hours that they spend on the fixed unlimited broadband that we provide, so those, we're very confident that we are in a good position. Our network proves that it can get higher speeds with the same balance sheet that we have right now. And still, we continue to evolve to be much more better and ahead of everybody else on that part. So even though we have the Telmex and we have the Totalplay and we have results from other companies and competition from other markets, we've been competing with them and is still providing good results. Also, all our subscribers that you can see there on the churn that you see, all our subscribers are healthy and in good position. We provide them with the right products and package that they can pay. And we were very careful during the quarter not to allow subscribers to stay with the payment in our base. We want to help. We needed to have all the [ CPs ] for the subscribers that they couldn't afford to pay already on one in service. So we were very careful. So we are in a very good position for the second half for both for margins and for the competitive landscape that is coming. Our balance sheet also allow us to do what I'm saying. It does allow us to continue to invest in the NGV, and it does allow us to continue to invest in the GPON project. So we're very happy and confident, Juan.

Yes, we are more confident now that the move we decided to do migrating our main markets to have FTTH was the right growth. And moving all that HFC equipment to the other 50% of the network to increase, to double the capacity in the -- and have a much better network performance in the other 50% of the network, that was the smartest move we have ever made in our network. And we're going on with that. We won't stop that, and it will be finished in about 14 months.

Our next question is from Andres Coello from Scotiabank.

Well, as you know, Totalplay reported revenue growth of 36% in the second quarter. Totalplay is now around 82% of the size of Megacable. It seems that if Totalplay continues to grow at this pace within a year, Totalplay could be bigger than Megacable, right? And that's a big issue. However, Mexico is a very big country. And I have 3 specific questions for you. The first question is, if you believe that -- or if you are seeing Totalplay growing in your territories? Or are they growing in other territories? I think that's my first question. My second question has to do with what you just said. We know that you are migrating your network into FTTH. And I was wondering, in areas where you already deploy FTTH, are you seeing better results compared to Totalplay? Meaning in the same streets where you are migrating to fiber, did you see your market share more protected in those areas? And also, do you believe that by deploying fiber or by migrating to fiber in those areas, can you keep Totalplay from actually building into those streets in order to discourage them? And finally, my third question to you is regarding branding. It seems to me that the brand cable, the word cable could become stigmatized if we continue to see fiber growth. So I was wondering if the company could even think about changing its name to Megafibra from Megacable. I mean, a big transformation in technology. And those are my 3 questions.

Andres, we want you here in Megacable. We'll see what to do in the future with the branding. But it's a good point. We have thought about our branding, our position, our logo, our -- all I can tell you is that we continue to show the best perception for the people and what's the best for the market. I cannot disclose whether we are doing or not that part of our strategy, but it's always in our mind. Don't worry about that, about fiber or cable in that area. Of course, compared to Totalplay, that is always the old company to the new company. And when you say in our territory, whether they are growing or not, we are aware of the growth that they have. What we can tell you is that in our territory, the growth has not been the -- in comparison to other regions is not -- it hasn't had that impact. We are not saying that they don't have subscribers, but they don't have the amount of subscriber and the market share that you'll see in other parts. Why? I don't know. I don't want to get into that. Maybe we have a lower ARPU. It's tough for them to get here. Maybe we're more aggressive in rotation. I don't know. What we can tell you is that every subscriber that wants to be suspended, we call it because of going to competition. Or by any other reason, we do all the efforts to retain them. And one of those efforts in the areas where we have the fiber is to migrate them -- speed up the process of migrating them to fiber. I can tell you that after a year of those suspensions, by any means, not only fiber, 82%, 81% of the subscribers that try to get suspended in that part remain with us. That's why we have been able to lower the churn, not only because of the pandemic, but also because everybody who requires a better package, we provide them with a lower package. We have all different kinds of flexibilities by market to retain the subscribers. And also, we can provide them with an upgrade, not only to fiber, but there's also some parts where we do an upgrade in HFC, too, because they have a legacy set-top box, and we need to upgrade to new ones. All that is part of our jobs, and we've seen that. Compared to Totalplay and compared on Telmex in fiber, it's going to be, at the end, the one that performed the best. We can tell you that the XView surpassed the 1 million and the -- several millions, more than 40 million, 45 million of reproductions of videos that we have has been a terrific success in that part. And our network performs well. So as long as we continue to identify market opportunities with the market growth, right now, we grow in the second quarter and we identify those opportunities to continue to grow, and we collect the right amount, we believe we're doing the right thing on that part. And we will sure tell you when we decide to move our logo. Our logo, when you see the Megacable logo, it identify as well as the Coca-Cola logo in all the markets where we are because of all the time that we've been there. But still, with our cable logo, we'll talk about that over coffee when you come here.