2015 was an extraordinary period for Megacable; therefore, I take this opportunity to present to you the steps taken and the results obtained during this cycle.

All our services re ected performance above average in the industry. In 2015 alone, the number of Internet subscribers grew by 38% en subscribers, whereas video and telephony users increased by 18% and 24%, respectively. These indicators reaffirm the clear upward trend we have been reporting in recent years and that allows us to be one of the three main competitors in the Mexican market.

The RGU (revenue generating units) continue to show a positive trend. We achieved an increase of 25% in RGUs, which translates into 5,561,433. Our subscribers alone registered a 19% increase and their respective RGUs increased from 1.74 to 1.82, which represents a 5% improvement.

In order to improve our customer satisfaction indicators, in 2015 we implemented a change in the structure of this area, which also underwent a review and modi cation process of its procedures to simplify them, as well as to achieve a greater identification with and approach towards customers. In this regard, we engaged an consulting firm expert in quality issues, with which we completed a customer service transformation project focused entirely on direct contact areas. We implemented this effort in 18 of the Company’ most important cities of operation. Our commitment for 2016 is to replicate this model in all our operations locations.

addition to these great actions and results, I must also mention the Operating Results by business unit::

Our Video segment has maintained double-digit annual growth, which is above market. In 2015, the segment achieved a total of 2,834,151 subscribers, which represents an increase of 18% in comparison with 2014. The average revenue per user (ARPU) was Ps. 222.6. Our revenue in this business unit increased by 11% in the period.

The digitalization process continues to re ect healthy growth: in 2015, it increased by 24%; i.e., 393,980 more subscribers than in 2014. At the end of the year, a total of 2 million main digital decoders and approximately 2.3 million additional boxes were installed

Our goal for 2016 is to install one million more boxes and thus continue with the migration of our SD-channel users to HD. We currently offer 80 High De nition channels; 10 more in comparison with 2014

In 2016, we will give a greater impetus to the digital video strategy with our most innovative product: Next Generation Video, which includes the HD channels and three interactive television services that provide better and greater interactivity, as well as being able to watch all the channels on any device at home, computer, tablet or cell phone.

Our objective in our Internet service is to provide the best offer in terms of speed and price. This characteristic has positioned us as one of the best providers with 1,830,966 subscribers, 38% more than last year, which means an increase in the segment’s revenue of 39% and an average income per subscriber of Ps. 183.1.

This business segment has been a driver in the contracting of most of our packages because this is the product in telecommunications industry that has grown the most in the market in recent years, not to mention the price and stability in the service we offer, which re ects the experience we have acquired over time.

The growth gures achieved in 2014 and 2015 were historical in the Internet market. In the coming year, we must continue to re ect net additions of similar subscribers.

Thanks to our sales strategy, Megacable’s telephony service has grown by 24% in comparison with the prior year by reaching an total of 896,316 subscribers. In this caption, we increased our revenues by 8% and we increased our market share in telephony to 19%, even though the industry in Mexico has only grown by 6%.

Next year, we are betting on a similar growth in this segment with a new promotion that will meet the needs of our subscribers by attractively integrating the three services.

In the corporate market, we posted income of Ps. 2,672 million in the year; a 100% growth. With these figures, we have achieved that this business unit currently represents 18% of our total revenues. Micro-businesses represent a potential market in which we can grow even more. That is why we have implemented a special sales structure, the first results of which we will report in the coming quarters.

his year also represented an important change for MetroCarrier because it renewed its corporate image as part of its strategy to be recognized as a more state-of-the-art, innovative and dynamic company. Today it offers connectivity in 25 States of the Mexican Republic through more than 71 thousand kilometers of ber optic and coaxial cable that forms a network with the latest- generation technology. In 2015, it achieved a revenue growth of 60%, one of its most outstanding projects being with the Federal Government (“Mexico Connected”) that gained more than 30 thousand Internet sites. New telecommunications solutions have also been developed and implemented, which will enable MetroCarrier to reach new business areas and customers, as well as to continue expanding its network and infrastructure.

Thanks to the implementation of new strategies focused on customer service and the quality of the services we offered in 2015, we achieved a growth of 27% compared to 2014, which represents income of Ps. 14,557 million for services.

Due to ef cient management and administration of the Company’s expenses, in terms of cable operations, the EBITDA margin was 44.5%, whereas the Consolidated EBITDA margin was 40.1%, reaching the amount of Ps. 5,836 million.

Net income increased by 26%, to reach the amount of Ps. 3,124 million. These results were achieved thanks to the improvements in our operation, the high level of acceptance of our Internet product, the signi cant growth of the corporate segment and the effects gained from the Reform to the Telecommunications Law.

Megacable’s balance sheet shows great strength. In 2015, we achieved an increase of 12% in current assets, while total assets reached Ps. 29,010 million, which represented in increase of 14%, due mainly to the increase in our investments both in our network and equipment for subscribers.

Short-term liabilities amounted to Ps. 5,370 million, 121% above the figure reported in 2014. This was due to the recognition of the syndicated loan, the increase of supplier leverage, and the Federal Electricity Commission (CFE) project.

Total liabilities closed at Ps. 8,710 million; i.e., 19% more than the prior period. This increase is due to the acquisition of new bank loans applied mainly to the Federal Electricity Commission (CFE) project.

The Company’s stockholders’ equity showed satisfactory results. It achieved a growth of 13%, resulting from the increase in retained earnings in the amount of Ps. 2,130 million or an increase of 15%.

In 2015, our CAPEX investment recorded an increase of 60% compared to the prior year, to reach an amount of Ps. 3,765 million. This investment has been allocated mainly to the construction of kilometers of network, the acquisition of terminal equipment for subscribers, both for the digitalization project and for the growth of Internet/telephony subscribers and the modernization of the Company’s cable network.

The strategies have been changing in the same manner as the market. Today, our priority is greater investment in open, user-friendly technologies focused on providing services based on our subscribers’ needs, which has made us more competitive in the market.

Our network currently covers more than seven million homes with and extension of 52 thousand kilometers; figures that represent an increase of 4% in terms of homes compared to the figures reported in 2014. Even so, our capital investment ratio against the revenues in one of the lowest in the industry. On average, over the last three years this gure has been 22%, which demonstrates our ef ciency and enables us to generate a greater free cash ow.

For Megacable, it is of the utmost important to foster the personnel and professional development of all our employees because we know that their work is fundamental to the growth of the Company.

We have annual training, life and career plans that allow our human capital to grow in terms of knowledge, category and in turn, income. This year we achieved that our human and technical capital increased its productivity considerably by 10%, which helped us to meet our objectives in 2015. We ended the year with a total of 16,010 employees and the creation of 1,533 new jobs.

The quality of our services and on-going improvements to customer service have contributed to our growth. Today, we are one of the main players in the eld of telecommunications in the country by creating value for our customers, suppliers and stockholders.

Sincerely,

Chairman of the Board of Directors

Secretary of the Board of Directors