Maxcom Reports Results for the Third Quarter and Nine Months of 2008 and the Appointment...

Maxcom Reports Results for the Third Quarter and Nine Months of 2008 and the
Appointment of New Chief Executive Officer

MEXICO CITY, Oct. 23 /PRNewswire-FirstCall/ -- Maxcom Telecomunicaciones,
S.A.B. de C.V. ("Maxcom," or "the Company") (NYSE: MXT; BMV: MAXCOMCPO.MX),
one of the leading integrated telecommunications companies in Mexico, today
announced its unaudited financial and operating results for the quarter ended
September 30, 2008. The company announced today that the Board of Directors
has appointed Eduardo Vazquez Arroyo as acting Chief Executive Officer
effective immediately.
NOTE: The monetary amounts presented in these tables have been prepared in
accordance with Mexican Financial Reporting Standards ("NIF" or "Mexican
GAAP"). Figures for the year 2008 are expressed in millions of historical
Mexican pesos, as explained in section "Adoption of New Accounting Standards."
Figures for the year 2007 are expressed in millions of Mexican pesos of
purchasing power at December 31, 2007. Monetary amounts may vary due to
rounding.

Results | Third Quarter 2008

Financial Highlights:
-- Third quarter 2008 revenues reached Ps. 717 million and increased by
Ps. 100 million or 16% in comparison to the third quarter of 2007.
-- EBITDA increased by 23% to reach Ps. 222 million in comparison to
the third quarter of 2007.
-- EBITDA Margin increased by 182 basis points to 31% this reporting
quarter, when compared to the same period last year.
-- The Company posted Net Income during the third quarter of
Ps. 10 million, which compares favorably to a net loss of
Ps. 8 million reported in the third quarter of 2007.

3Q08 3Q07 VAR% YTD08 YTD07 VAR%
Million Pesos
Revenues 717 617 16% 2,011 1,727 16%
EBITDA 222 180 23% 618 488 27%
EBITDA Margin 31% 29% 31% 28%
Adj. EBITDA 223 184 21% 625 498 26%
Adj. EBITDA Margin 31% 30% 31% 29%
Net Income 10 (8) N.A. 30 (25) N.A.

Pesos
Earnings per
Share Basic 0.01 - - 0.04 - -
Earnings per
Share Diluted 0.01 - - 0.04 - -

Operating Highlights:
-- Total company Revenue Generating Units or RGUs, increased to 476,216
or 38% in the third quarter of 2008 compared to the same period
last year. The Company recorded RGU net adds of 36,809 in the quarter.
-- Total company customer base increased by 11% to reach 234,670
customers.
-- Voice RGUs (formerly voice lines in service) increased 15% to
reach 375,191. Voice RGUs include residential voice, commercial voice,
public telephony lines and wholesale lines.
-- Data residential RGUs increased by 109% to 25,783.
-- The Company added 16,210 mobile RGUs to its residential and commercial
business divisions during the third quarter, which brought the mobile
RGU base to 55,725.
-- Pay TV number of RGUs reached 16,161. The Company recorded TV net
adds of 4,944 in the quarter.
-- 2,259 public telephones were installed during the quarter bringing
the number of coin operated phones to 33,551.
-- Residential RGU per customer increased from 1.1 in the third quarter
of 2007 to 1.5 in the third quarter of 2008.
-- Commercial RGU per customer increased from 11.1 in the third quarter
of 2007 to 14.9 in the third quarter of 2008.

Operating Results

3Q08 3Q07 VAR%
Residential Customers 228,984 204,517 12%
Voice 223,709 203,207 10%
Data 22,399 10,446 114%
Mobile 52,535 N.A. N.A.
TV 16,211 3,340 385%

Residential RGUs 334,399 232,663 44%
Voice 237,486 216,981 9%
Data 25,783 12,342 109%
Mobile 54,969 N.A. N.A.
TV 16,161 3,340 384%
RGU per Residential Customer 1.5 1.1

Commercial Customers 5,629 6,034 (7%)
Voice 5,385 5,930 (9%)
Data 1,408 1,245 13%
Mobile 101 N.A. N.A.
Other 165 105 57%

Commercial RGUs 83,786 67,002 25%
Voice 79,674 63,839 25%
Data 3,006 2,939 2%
Mobile 756 N.A. N.A.
Other 350 244 43%
RGU per Commercial Customer 14.9 11.1

Public Telephony RGUs 33,551 25,967 29%

Wholesale RGUs 24,480 19,006 29%

Total RGUs 476,216 344,658 38%

Voice RGUs
(voice lines in service) 375,191 325,793 15%
Total Number of Customers 234,670 210,551 11%

Revenues

Maxcom total revenues for the third quarter of 2008 were Ps. 717 million,
an increase of 16% over revenues of Ps. 617 million, recorded in the third
quarter of 2007. The following table is a breakdown of the sources of revenue
for the Company.
3Q08 Weight % 3Q07 Weight % VAR%
Residential Ps. 292 41% Ps. 228 37% 28%
Commercial 213 30% 182 29% 17%
Public Telephony 113 16% 108 18% 5%
Wholesale 95 13% 92 15% 3%
Other Revenue 4 0% 7 1% (43%)
Total Ps. 717 100% Ps. 617 100% 16%

Total revenues for the nine months ended September 30, 2008 were
Ps. 2,011 million, an increase of 16% over revenue of Ps. 1,727, million
recorded in the same period of last year. The following table is a breakdown
of the sources of revenue for the Company.

YTD08 Weight % YTD07 Weight % VAR%
Residential Ps. 821 41% Ps. 661 38% 24%
Commercial 605 30% 455 26% 33%
Public Telephony 309 15% 290 17% 7%
Wholesale 249 12% 293 17% (15%)
Other Revenue 27 2% 28 2% (4%)
Total Ps. 2,011 100% Ps. 1,727 100% 16%

Residential
Residential revenues represented 41% of the total during the third
quarter, compared with 37% in the same quarter of 2007. Revenues in the
residential business segment reached Ps. 292 million, an increase of 28% in
comparison to Ps. 228 million in the third quarter of 2007.
The 28% increase in revenues is directly related to the 44% increase in
RGUs and was mainly driven by: 1. An increase in the number of mobile RGUs
to reach 54,969,
and an increase in the number of pay TV RGUs to reach 16,161.
The Company continues to successfully upsell to its existing and
new client base the products that were launched late September and
December 2007 respectively;
2. An increase in the number of data RGUs which increased by 109% to
reach 25,783. Customers that had previously declined broadband are
revisiting their decision once they have decided on a double play
with pay TV; and,
3. A 9% increase in voice RGUs (formerly voice lines in service) in
the residential business segment to reach 237,486.

In addition, the increase in revenues is due to an agreement with
Megacable to sell Maxcom's share in approximately 10,000 subscribers of our
Toluca and Queretaro operations, for voice termination under the original
triple play agreements. The Company entered into commercial agreements with
Telemedia in Queretaro and Cablenet in Toluca during 2005 in order to provide
voice termination for triple-play customers, which has now been transferred to
Megacable. However, Megacable acquired these 2 companies during 2005 and 2008,
respectively. Megacable and Maxcom mutually agreed to terminate the strategic
alliance, and as part of the transaction, approximately 10,000 subscribers
were sold to Megacable. It is important to highlight that this transaction
does not include any transfer of infrastructure since it belongs in its
entirety to Megacable. As part of the agreement, Maxcom will continue to
provide different services in all of the cities in which it operates.
For the nine months ended September 30, 2008 revenues from the residential
business totaled Ps. 821 million, and increased by 24% from Ps. 661 million
recorded in the same period of 2007.
The takeup of products and upselling has improved the RGU per customer in
the residential business from 1.1 in the third quarter of 2007 to 1.5 RGUs per
customer in the third quarter of 2008.
Commercial
Commercial revenues represented 30% of the total during the third quarter
of 2008, and represented 29% in the in the third quarter of 2007. Revenues in
Commercial Business reached Ps. 213 million, an increase of 17% in comparison
to Ps. 182 million in the same period of 2007.
The 17% or Ps. 31 million increase in revenues during the third quarter of
2008 is mainly explained by an increase in the average revenue per customer
that the company recorded and a 25% increase in the number of RGUs. The
increase in RGUs was mainly driven by: 1. A higher number of data RGUs in
the quarter to reach 3,006;
2. A higher number of voice RGUs (formerly voice lines in service)
which have increased by 25% to 79,674; and,
3. The higher number of RGUs from other value added-services that
the Company provides, including: firewall protection, IT outsourcing,
hosting and other services.

It is important to highlight that the number of customers decreased by 7%
in comparison to the third quarter of 2007. As in the previous quarter the
Company continues to filter clients that had only one or two commercial voice
lines. However, although the number of customers is declining, the Company has
been successful in increasing its voice lines per customer numbers from 10.8
lines per customer in the third quarter of 2007 to 14.8 lines per customer in
the third quarter of 2008.
For the nine months ended September 30, 2008 revenues from the commercial
business totaled Ps. 605 million, or a 33% increase when compared to
Ps. 455 million recorded in the same period of 2007.
In addition, RGU per commercial customer increased from 11.1 in the third
quarter of 2007 to 14.9 in the third quarter of 2008.
Public Telephony
Public Telephony represented 16% of total revenues during the third
quarter of 2008. Revenues in this business unit totaled Ps. 113 million, an
increase of 5% when compared to Ps. 108 million in 2007. The increase in
revenues is attributed to the 29% growth in the base of public telephones
installed. However and partially offsetting this revenue growth, as the number
of public telephones continues to grow, the average revenue per public
telephone tends to decline. For the nine months ended September 30, 2008
revenues from the public telephony business totaled Ps. 309 million, an
increase of 7% when compared to Ps. 290 million recorded in the same period of
2007.
Wholesale
In the third quarter of 2008, Wholesale revenues increased by 3% to reach
Ps. 95 million, in comparison to the Ps. 92 million registered during the same
quarter in the previous year. The increase in the Wholesale Business revenues
was mainly driven by an increase in long distance termination and CPPN traffic
due to better call completion through Maxcom's network. For the nine months
ended September 30, 2008 revenues from the wholesale business decreased from
Ps. 293 million recorded in the nine months of 2007 to Ps. 249 million.
Other Revenue
Other revenue represented less than 1% of total revenues and reached
Ps. 4 million, in comparison to Ps. 7 million or also less than 1% of total
revenues in the previous quarter. Other revenues are primarily comprised of
lease of microwave frequencies and CPE sales. For the nine months ended
September 30, 2008 revenues from other businesses totaled Ps. 27 million, or
2% of total revenues from Ps. 28 million recorded in the same period of 2007,
or 2% of total revenues.
Network Operation Cost
Network Operation Costs in the third quarter of 2008 increased 12% or
Ps. 30 million to reach Ps. 284 million in comparison to Ps. 254 million in
the previous year, and was mainly due to a 14% increase in network operating
services and an increase in technical expenses of 4%. However and partially
offsetting this increase, installation expenses decreased by 34% due to a
reduction in the cost per single line installed and several promotional offers
with the Company's bundled products.
The increases in network operating services were mainly in:
1. The amounts paid for pay TV content and the cost of the Company's
mobile services;
2. The amounts paid for connection to internet services;
3. Higher costs in long distance interconnection;
4. The lease of circuits and ports; and,
5. The amounts paid to carriers for calling party pays.

For the nine months ended September 30, 2008 network operation costs
totaled Ps. 795 million from Ps. 725 million, a 10% increase in comparison to
the same period last year.
Gross margin for the third quarter of 2008 was 60%, the same as the gross
margin recorded in the same period of 2007. For the nine months ended
September 30, 2008 gross margin was 60%, 244 basis points higher than the 58%
gross margin recorded in the same period of 2007.
SG&A
SG&A expenses were Ps. 212 million in the third quarter of 2008, 15% above
Ps. 184 million in the same period of 2007. The Ps. 28 million increase was
mainly driven by higher bad debt expenses as a result of the deteriorating
economic environment in Mexico, higher external advisory expenses, salaries
and staff related costs, wages and benefits as a result of an increasing
headcount specifically in the residential and commercial sales forces which
have increased as a result of the increased coverage areas. In addition, to an
increase in sales commissions and marketing expenses, among others. These
increases were partially offset by lower insurance costs and stock option
compensation.
For the nine months ended September 30, 2008 SG&A expenses totaled
Ps. 599 million, 16% above Ps. 514 million reported in the same period last
year.
EBITDA and Adjusted EBITDA
EBITDA for the third quarter of 2008 was Ps. 222 million, a 23% increase
from Ps. 180 million in the same period of last year. EBITDA Margin was 31%
during the period, 181 basis points higher than 29% in the third quarter of
2007. For the nine months ended September 30, 2008, EBITDA amounted to
Ps. 618 million, 27% higher than the Ps. 488 million registered in the same
period of 2007. EBITDA margin for the nine months of 2008 was 31%, 246 basis
points higher than the 28% margin recorded in the same period of 2007.
Adjusted EBITDA for the third quarter of 2008 was Ps. 223 million, 21%
higher than Ps. 184 million in the same period of last year. Adjusted EBITDA
Margin was 31% during the period, 135 basis points higher than in the third
quarter of 2007. For the nine months ended September 30, 2008, Adjusted EBITDA
amounted to Ps. 625 million, 26% higher than the Ps. 498 million registered in
the same period of 2007. Adjusted EBITDA margin for the nine month period of
2008 was 31%, 224 basis points higher than the 29% margin reported in the same
period of 2007.
Operating Income
Operating Income for the third quarter of 2008 was Ps. 81 million, 10%
higher than Ps. 74 million in the previous year. Operating margin for the
third quarter was 11%. For the nine months ended September 30, 2008, operating
income for the Company reached Ps. 231 million, 25% higher than the result
registered in the same period of 2007 of Ps. 185 million.
Comprehensive Financial Result
During the quarter, the Company registered a Comprehensive Financial
Result of Ps. 69 million, a Ps. 36 million increase when compared to
Ps. 33 million in the same period of 2007.
3Q08 3Q07 VAR Ps. VAR%
Net Interest Expense 24 52 (28) (54%)
Exchange Rate
(Gain) Loss - Net 44 (13) 31 N.A.
Monetary Position
Gain (Loss) - (33) 33 N.A.
Total 68 33 36 109%

YTD08 YTD07 VAR Ps. VAR%
Net Interest Expense 117 145 (28) (19%)
Exchange Rate
(Gain) Loss - Net 58 (6) 64 N.A.
Monetary Position
Gain (Loss) - (38) 38 N.A.
Total 175 101 74 73%

The higher Comprehensive Financial Result was due to a net exchange rate
loss of Ps. 44 million in the third quarter of 2008, compared to a net
exchange rate gain of Ps. 13 million recognized in the same period of last
year, mainly due to the US dollar cash position of the company. At September
30, 2008 the exchange rate between the Mexican Peso and the United States
Dollar was Ps. 10.7919, compared to Ps. 10.9203 at the end of September 30,
2007.
The Company recorded a decrease of Ps. 28 million on the amount of net
interest expense when compared to the same quarter of 2007. While the amount
of interest expense increased due to the overall amount of debt in a year over
year basis (The Company reopened its Senior Notes on September 5, 2007 for an
additional US$25 million), the capitalization of interest cost on
telecommunications network infrastructure build out partially offset this
increase.
For the nine months ended September 30, 2008, comprehensive cost of
financing for the Company reached Ps. 175 million when compared to
Ps. 101 million recorded in the same period of 2007.
As a result of the change in the accounting standards in Mexico (see
"Adoption of New Accounting Standards"), inflationary accounting (NIF B-10) is
not required in a low-inflation environment. As of the third quarter of 2008
the Company prepared its financial statements in terms of historical Mexican
pesos. Therefore, the comprehensive financial result will no longer be
affected by the results in monetary position. In this case the company
recorded a monetary position loss of Ps. 33 million in the third quarter of
2007 which does not compare to the third quarter of 2008.
Taxes
During the first quarter of 2008 and according to the latest tax reform in
Mexico, asset tax was replaced with the flat corporate tax (Impuesto
Empresarial a Tasa Unica). The IETU is calculated on a cash-flow basis, with
the base determined by reducing taxable revenue (mainly income derived from
the sale of goods, the rendering of independent services and the leasing of
tangible goods) with specific deductions. Since Capex is deductible, the
Company is able to minimize tax payments given the aggressive Capex plan for
2008.
The Company recorded Ps. 8 million in taxes during the third quarter 2008,
compared to Ps. 43 million in the third quarter of 2007. For the nine months
ended September 30, 2008, the Company recorded Ps. 15 million in taxes, which
compare to Ps. 101 million recorded in the same period of 2007.
While Asset Tax, IETU and Income Tax represent cash outflows, Deferred
Income Tax is a non-cash item.
3Q08 3Q07 YTD08 YTD07
Asset Tax - 6 - 20
IETU - - 7 -
Income Tax 4 2 9 4
Deferred Income Tax 4 36 (2) 76
Total Taxes 8 43 15 101

Net Income
The company posted net income during the third quarter of 2008 of
Ps. 10 million, which compares favorably to net loss of Ps. 8 million reported
in the third quarter of 2007. For the nine months ended September 30, 2008,
the company registered a net income of Ps. 30 million in comparison to a net
loss of Ps. 25 million, in the same period of 2007.

Liquidity and Capital Sources

Quarter Ended Quarter Ended
Millions of Pesos September 30, 2008 September 30, 2007
Resources from
Operations and
Working Capital 99 (1)
CAPEX (400) (274)
Free Cash Flow (301) (275)
Financing Activities 19 365
Cash and Cash Equivalents
at the Start of
the Period 1,805 160
Cash and Cash Equivalents
at the End of
the Period 1,523 250

For the Nine Months For the Nine Months
Millions of Pesos Ended September 30, 2008 Ended September 30, 2007
Resources from
Operations and
Working Capital 255 185
CAPEX (1,114) (939)
Free Cash Flow (859) (754)
Financing Activities (158) 241
Cash and Cash Equivalents
at the Start of
the Period 2,540 763
Cash and Cash Equivalents
at the End of
the Period 1,523 250

Capital Expenditures
Capital Expenditures during the period totaled Ps. 400 million, higher
than the Ps. 275 million recorded in the third quarter of 2007. Capital
Expenditures were primarily used for telephone network systems, the build out
of new clusters, and equipment for Maxcom's network expansion. For the nine
months ended September 30, 2008 the Company recorded Ps. 1,114 million which
is greater than the Ps. 939 million recorded in the same period of last year.
Indebtedness
At September 30, 2008 the Company reported its indebtedness level at
Ps. 2,237 million. The Company's leverage ratio measured by Total Debt/EBITDA,
presented a decrease, from 3.6 times in 2007 to 2.7 times in 2008. In
addition, Net Debt/EBITDA ratio presented an even more important profile
reduction from 3.3 times in 2007 to 0.9 times in 2008, as a result of the cash
proceeds from the Company's initial public offering.
As a reminder in May 2007, the Company entered into a currency swap
transaction to minimize the exchange rate risks related to the coupon payments
with respect to US$150 million aggregate principal amount of the senior
secured notes due 2014, for payments during the period from June 2008 to
December 2010. In addition, the Company's cash position is almost entirely in
US dollars which further reduce the risk with currency fluctuations.
Adoption of New Accounting Standards
B-10: As of January 1, 2008, the company has adopted the changes to
"Inflationary Effects", B-10 in accordance with the Mexican Financial
Standards ("NIF") which establishes the rules for the recognition of
inflationary effects in the country; furthermore, it incorporates changes such
as, reclassifying accumulated results for non-monetary assets and has the
possibility of choosing between the INPC (national consumer price index) and
the value of UDIs. It has been determined that the country does not face an
inflationary environment, and therefore the company as of January 1, 2008 will
suspend the recognition of these inflationary effects in its financial
information. Consequently, the financial information corresponding to the
period ended September 30, 2007 is expressed in Millions of Mexican Pesos of
purchasing power at December 31, 2007 (date on which bulletin B-10 was still
in effect) and the financial information for September 30, 2008 is in current
Mexican Pesos.
About MAXCOM
MAXCOM Telecomunicaciones, S.A.B. de C.V., headquartered in Mexico City,
Mexico, is a facilities-based telecommunications provider using a "smart-
build" approach to deliver last-mile connectivity to micro, small and medium-
sized businesses and residential customers in the Mexican territory. MAXCOM
launched commercial operations in May 1999 and is currently offering local,
long distance, data, value-added, CATV and IP-based services on a full basis
in greater metropolitan Mexico City, Puebla, Tehuacan, San Luis, Queretaro and
Toluca, and on a selected basis in several cities in Mexico. The information
contained in this press release is the exclusive responsibility of MAXCOM
Telecomunicaciones, S.A.B. de C.V. and has not been reviewed by the Mexican
National Banking and Securities Commission (CNBV) or any other authority. The
registration of the securities described in this press release before the
National Registry of Securities (Registro Nacional de Valores) held by the
CNBV, shall it be the case, does not imply a certification of the investment
quality of the securities or of MAXCOM's solvency. The trading of these
securities by an investor will be made under such investor's own
responsibility.
This document may include forward-looking statements that involve risks
and uncertainties that are detailed from time to time in the U.S. Securities
and Exchange Commission filings of the Company. Words such as "estimate,"
"project," "plan," "believe," "expect," "anticipate," "intend," and similar
expressions may identify such forward-looking statements. The Company wants to
caution readers that any forward-looking statements in this document or made
by the company's management involve risks and uncertainties that may change
based on various important factors not under the Company's control. These
forward-looking statements represent the Company's judgment as of the date of
this document. The Company disclaims, however, any intent or obligation to
update these forward-looking statements.

MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEET

Thousand Mexican Pesos ("Ps.") and US Dollars ("$")

As of September As of September
30, 2007 30, 2008
Pesos US Dollars Pesos US Dollars
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents Ps. 234,397 $21,720 Ps. 1,523,372 $141,159
Restricted cash 15,289 1,417 - -
249,686 23,137 1,523,372 141,159
Accounts receivable:
Customers, net of
allowance 543,266 50,340 703,834 65,219
Value added tax
refundable 193,926 17,970 187,297 17,355
Other sundry debtors 46,584 4,317 68,498 6,347
783,776 72,627 959,629 88,921

Inventory 28,281 2,621 40,330 3,737
Prepaid expenses 31,715 2,939 51,886 4,808
Total current
assets 1,093,458 101,324 2,575,217 238,625

Restricted cash long term - - - -

Frequency rights, net 82,513 7,646 75,106 6,959
Telephone network
systems and equipment,
net 3,971,399 367,998 4,915,424 455,473
Pre-operating expenses,
net 71,093 6,588 61,201 5,671
Intangible assets, net 194,383 18,012 217,875 20,189
Financial instruments 14,645 1,357 5,995 556
Retirement obligations - - - -
Deposits 6,524 605 8,359 775
Prepaid expenses long
term 22,925 2,124 17,457 1,618
Other assets 6,357 589 6,357 589

Total assets Ps. 5,463,297 $506,243 Ps. 7,882,991 $730,455

LIABILITIES
CURRENT LIABILITIES:
Interest payable 74,854 6,936 72,816 6,747
Accounts payables and
accrued expenses 497,345 46,087 447,852 41,500
Bank financing - - - -
Senior notes, net - - - -
Notes payables 8,397 778 4,602 426
Commercial paper - - - -
Deferred income 1,940 180 2,628 244
Payroll and other taxes
payable 31,033 2,876 46,316 4,292
Total current
liabilities 613,569 56,857 574,214 53,209

LONG-TERM LIABILITIES:
Senior notes, net 2,218,801 205,599 2,158,380 200,000
Bank financing 108,702 10,073 - -
Notes payable 9,370 868 1,666 154
Other accounts payable 9,708 900 12,414 1,150
Deferred taxes 161,130 14,931 88,433 8,194
Pensions and
postretirement
obligations 10,812 1,002 10,824 1,003
Other long term
liabilities 68,285 6,327 65,905 6,107
Financial instruments - - - -
Total liabilities Ps. 3,200,377 $296,557 Ps. 2,911,836 $269,817

SHAREHOLDERS' EQUITY
Capital stock 3,328,141 308,392 5,410,244 501,325
Premium on capital
stock 263,497 24,416 820,123 75,994
Accumulated deficit (1,303,664) (120,800) (1,267,466) (117,446)
Net loss for the period (25,054) (2,322) 29,735 2,755
Share repurchase
program - (21,481) (1,990)
Total
shareholders'
equity (deficit) Ps. 2,262,920 $209,686 Ps. 4,971,155 $460,638

Total liabilities
and equity Ps. 5,463,297 $506,243 Ps. 7,882,991 $730,455

NOTES TO FINANCIAL STATEMENTS:
Financial statements for 2007 are reported in Mexican pesos of purchasing
power as of December 31, 2007
For readers' convenience, all Peso amounts were converted to U.S. dollars
at the exchange rate of Ps. 10.7919 per US$1.00.

MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
Thousand Mexican Pesos ("Ps.") and US Dollars ("$")

3 months ended 3 months ended
as of September as of September
30, 2007 30, 2008
US US
Pesos Dollars % Pesos Dollars %

TOTAL REVENUES Ps. 617,302 $57,200 100% Ps. 717,496 $66,485 100%

Network operating
services 213,383 19,773 35% 243,765 22,588 34%
Technical expenses 35,409 3,281 6% 36,808 3,411 5%
Installation expenses 4,854 450 1% 3,202 297 0%
Cost of network
operation 253,646 23,504 41% 283,775 26,296 40%

GROSS PROFIT 363,656 33,696 59% 433,721 40,189 60%

SG&A 184,063 17,056 30% 211,975 19,642 30%

EBITDA 179,593 16,640 29% 221,746 20,547 31%

Depreciation and
amortization 106,070 9,829 140,967 13,062

Operating income
(loss) 73,523 6,811 80,779 7,485

Comprehensive (income)
cost of financing:

*Interest expense 59,376 5,502 34,490 3,196
**Interest
(income), net (7,443) (690) (10,229) (948)
Exchange (income)
loss, net 13,461 1,247 44,244 4,100
Gain on net monetary
position (32,646) (3,025) - -
32,748 3,034 68,505 6,348

Other (income) expense 5,642 523 (5,530) (512)

INCOME (LOSS)
BEFORE TAXES 35,132 3,254 17,804 1,649

Taxes:
Asset tax 5,591 518 - -
Flat rate
corporate tax - - - -
Income tax 1,753 162 3,767 349
Deferred income tax 35,509 3,290 4,157 385
Total tax 42,853 3,970 7,924 734

NET INCOME (LOSS) Ps. (7,721) $(716) Ps. 9,880 $915

*Adjusted EBITDA 183,863 17,037 223,373 20,698
% of revenue
Adjusted EBITDA 30% 30% 31% 31%

Weighted average
basic shares 560,176 789,819
Weighted average
fully diluted 606,144 829,576

Earnings per
share basic (0.01) 0.01
Earnings per
share diluted (0.01) 0.01

NOTES TO FINANCIAL STATEMENTS:
* Interest related to Senior Notes, Banks and Vendor Financing
** Interest Income net
Financial statements for 2007 are reported in Mexican pesos of purchasing
power as of December 31, 2007
For readers' convenience, all Peso amounts were converted to U.S. dollars
at the exchange rate of Ps. 10.7919 per US$1.00.

MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
Thousand of Mexican Pesos ("Ps.") and US Dollars ("$")

9 months ended 9 months ended
on September 30, on September 30,
2007 2008
US US
Pesos Dollars % Pesos Dollars %

TOTAL
REVENUES Ps. 1,726,783 $160,007 100% Ps. 2,011,445 $186,385 100%

Network
operating
services 608,334 56,369 35% 677,822 62,808 34%
Technical
expenses 102,368 9,486 6% 102,494 9,497 5%
Installation
expenses 13,833 1,282 1% 14,592 1,352 1%
Cost of
network
operation 724,535 67,137 42% 794,908 73,657 40%

GROSS
PROFIT 1,002,248 92,870 58% 1,216,537 112,728 60%

SG&A 514,491 47,674 30% 598,961 55,501 30%

EBITDA 487,757 45,196 28% 617,576 57,227 31%

Depreciation and
amortization 302,428 28,024 386,618 35,825

Operating
income
(loss) 185,329 17,172 230,958 21,402

Comprehensive
(income) cost of
financing:

*Interest expense 174,851 16,202 166,590 15,437
**Interest
(income), net (29,959) (2,776) (49,636) (4,599)
Exchange (income)
loss, net (5,551) (514) 58,131 5,387
Gain on net
monetary position (38,144) (3,535) - -
101,197 9,377 175,085 16,225

Other (income)
expense 8,507 788 11,510 1,067

INCOME (LOSS)
BEFORE TAXES 75,625 7,007 44,363 4,110

Taxes:
Asset tax 20,409 1,891 - -
Flat rate
corporate tax - - 6,783 629
Income tax 3,890 360 9,485 879
Deferred
income tax 76,380 7,078 (1,640) (152)
Total tax 100,679 9,329 14,628 1,356

NET INCOME
(LOSS) Ps. (25,054) $(2,322) Ps. 29,735 $2,754

*Adjusted EBITDA 498,025 46,148 625,123 57,925
% of revenue
Adjusted EBITDA 29% 29% 31% 31%

Weighted average
basic shares 560,176 789,819
Weighted average
fully diluted 606,144 829,576

Earnings per
share basic (0.04) 0.04
Earnings per
share diluted (0.04) 0.04

NOTES TO FINANCIAL STATEMENTS:
* Interest related to Senior Notes, Banks and Vendor Financing
** Interest Income net

Financial statements for 2007 are reported in Mexican pesos of purchasing
power as of December 31, 2007
For readers' convenience, all Peso amounts were converted to U.S. dollars
at the exchange rate of Ps. 10.7919 per US$1.00.

MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED
STATEMENT OF CHANGES IN FINANCIAL POSITION

Thousand of Mexican Pesos ("Ps.") and US Dollars ("$")

3 months 3 months 3 months
ended ended ended
as of as of as of
September September September
30, 2007 30, 2008 30, 2008

Pesos Pesos US Dollars
Operating activities:
Net income (loss) Ps. (25,054) Ps. 29,735 $2,755

Depreciation and
amortization 93,024 140,547 13,023
Long term obligations 1,129 3,556 330
Deferred income tax 31,282 1,762 163
Stock Options 10,268 7,547 699

Subtotal 110,649 183,147 16,970

Net change in operation:
Resources provided by operation
activities (114,587) (11,659) (1,080)

Financing activities:
Senior notes 331,316 151,148 14,006
Notes payables (3,703) (1,433) (133)
Commercial paper - - -
Bank financing 108,702 - -
Capital stock 11,397 (33,750) (3,127)
Resources provided by financing
activities 447,712 115,965 10,746

Investing activities:
Frequency rights - - -
Telephone network systems and
equipment, net (242,064) (381,610) (35,361)
Preoperating expenses - - -
Intangible assets (14,324) (4,801) (445)

Resources used in investing
activities (256,388) (386,411) (35,806)

Cash and cash equivalents:
Increase / (decrease) in cash
equivalents 76,737 (282,105) (26,140)
Cash at beginning 157,660 1,805,477 167,299

Cash at end Ps. 234,397 Ps. 1,523,372 $141,159

Financial statements for 2007 are reported in Mexican pesos of purchasing
power as of December 31, 2007
For readers' convenience, all Peso amounts were converted to U.S. dollars
at the exchange rate of Ps. 10.7919 per US$1.00.

MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED
STATEMENT OF CHANGES IN FINANCIAL POSITION

Thousand of Mexican Pesos ("Ps.") and US Dollars ("$")

9 months 9 months 9 months
ended on ended on ended on
September September September
30, 2007 30, 2008 30, 2008

Pesos Pesos US Dollars
Operating activities:
Net income (loss) Ps. (25,054) Ps. 29,735 2,755

Depreciation and amortization 276,186 393,342 36,448
Long term obligations 3,917 4,750 440
Deferred income tax 74,571 (4,035) (374)
Stock Options 10,268 7,547 699

Subtotal 339,888 431,339 39,968

Net change in operation:
Resources provided by operation
activities 75,045 126,550 11,727

Financing activities:
Senior notes 446,395 46,784 4,335
Notes payables (63,015) (6,505) (603)
Commercial paper (155,639) - -
Bank financing 108,702 - -
Capital stock 793 (75,487) (6,995)
Resources provided by financing
activities 337,236 (35,208) (3,263)

Investing activities:
Frequency rights 51 - -
Telephone network systems and
equipment, net (886,895) (1,074,185) (99,536)
Preoperating expenses - - -
Intangible assets (30,331) (32,183) (2,982)

Resources used in investing
activities (917,175) (1,106,368) (102,518)

Cash and cash equivalents:
Increase / (decrease) in cash
equivalents (504,894) (1,015,026) (94,054)
Cash at beginning 739,291 2,538,398 235,213

Cash at end Ps. 234,397 Ps. 1,523,372 141,159

Financial statements for 2007 are reported in Mexican pesos of purchasing
power as of December 31, 2007
For readers' convenience, all Peso amounts were converted to U.S. dollars
at the exchange rate of Ps. 10.7919 per US$1.00.

MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES
UNAUDITED CONDENSED CASH FLOW

In Thousand Mexican Pesos ("Ps.")
3 months 3 months
ended ended
as of as of
September September
30, 2007 30, 2008 US Dollars

Operating Activities:
Income before taxes Ps. 36,685 Ps. 17,807 $1,650

Items without cash flow 320,955 89,984 8,338
Items related to investment
activities 104,395 138,461 12,830
Items related to financing
activities 62,075 34,490 3,196
Cash flow from income/loss
before taxes 524,110 280,742 26,014

Cash flow from: Accounts
receivables (409,679) (99,343) (9,205)
Inventory 5,614 (5,960) (552)
Accounts payable (136,409) (108,296) (10,035)
Other assets and
liabilities 20,966 (19,706) (1,826)
Income taxes (13,126) (6,162) (571)
Cash flow from
operation activities (532,634) (239,467) (22,189)

Net cash flow from
operating activities (8,524) 41,275 3,825

Cash flow from
capital expenditures (274,711) (399,815) (37,048)

Cash in excess/(required) to be
used in financing activities (283,235) (358,540) (33,223)

Cash flow from: Senior notes 249,146 - -
Bank financing 108,702 - -
Vendor financing (4,480) (1,752) (162)
Capital stock - - -
Additional paid
in capital (96) (7,977) (739)
Other financing
activities 11,293 28,848 2,673
Cash flow from
financing
activities 364,565 19,119 1,772

Increase (decrease) in cash and
temporary investments 81,330 (339,421) (31,451)

Exchange effects on cash
and cash equivalents 7,911 57,316 5,311

Cash and cash equivalents at
beginning of the period 160,445 1,805,477 167,299
Cash and cash equivalents at
the end of the period Ps. 249,686 Ps. 1,523,372 $141,159

Financial statements for 2007 are reported in Mexican pesos of
purchasing power as of December 31, 2007
For readers' convenience, all Peso amounts were converted to U.S. dollars
at the exchange rate of Ps. 10.7919 per US$1.00.

MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES
UNAUDITED CONDENSED CASH FLOW

In Thousand Mexican Pesos ("Ps.")

9 months 9 months
ended on ended on
September September US
30, 2007 30, 2008 Dollars

Operating Activities:
Income before taxes Ps. 77,178 Ps. 44,364 $4,111

Items without cash flow 104,410 229,560 21,272
Items related to investment
activities 278,571 346,704 32,126
Items related to financing
activities 177,550 166,590 15,437
Cash flow from income/loss before
taxes 637,709 787,218 72,945

Cash flow from: Accounts
receivables (332,607) (347,223) (32,174)
Inventory 7,618 (7,017) (650)
Accounts payables (35,351) (63,258) (5,862)
Other assets and
liabilities (78,143) (22,065) (2,045)
Income taxes (27,662) (18,663) (1,729)
Cash flow from operation
activities (466,145) (458,226) (42,460)

Net cash flow from operating
activities 171,564 328,992 30,485

Cash flow from capital
expenditures (938,875) (1,114,178) (103,242)

Cash in excess/(required) to be
used in financing activities (767,311) (785,186) (72,757)

Cash flow from: Senior notes 232,262 - -
Bank financing 108,702 - -
Vendor financing (19,475) (5,707) (529)
Capital stock 660 (7) (1)
Additional paid
in capital (27) (75,481) (6,994)
Other financing
activities (80,982) (76,791) (7,116)
Cash flow from
financing
activities 241,140 (157,986) (14,639)

Increase (decrease) in cash and
temporary investments (526,171) (943,172) (87,396)

Exchange effects on cash
and cash equivalents 13,104 (72,991) (6,763)

Cash and cash equivalents at
beginning of the period 762,753 2,539,535 235,319
Cash and cash equivalents at
the end of the period Ps. 249,686 Ps. 1,523,372 $141,159

Financial statements for 2007 are reported in Mexican pesos of purchasing
power as of December 31, 2007
For readers' convenience, all Peso amounts were converted to U.S. dollars
at the exchange rate of Ps. 10.7919 per US$1.00.
SOURCE Maxcom Telecomunicaciones, S.A.B. de C.V.

Juan-Carlos Sotomayor, Maxcom Telecomunicaciones, +011-52-55-1163-1104,
juan.sotomayor@maxcom.com