Telmex profits fall 28%

14 Feb 2006

Mexican fixed line operator Telefonos de Mexico (Telmex) has posted a 28% fall in its fourth-quarter profit on the back of foreign exchange losses and lower fees for some services. Net profit for the three months ending 31 December 2005 was MXP7.78 billion (USD732 million), down from MXP10.77 billion in 4Q04, whilst revenues declined 2.6% to MXP41.33 billion. Lower sales were the result of a decline in the fees under the ‘calling party pays’ CPP system and a drop in international long distance business, the company said. Earnings before interest, tax, depreciation and amortization (EBITDA) fell 1.8% to MXP18.33 billion. Full year net income fell 0.8% to MXP28.18 billion on revenues of MXP162.95 billion, up 12.6% year-on-year.

Telmex ended 2005 with 18.375 million fixed lines in service in Mexico, up 7% on the previous year, whilst internet accounts reached 2.12 million, up 21.5% on 2004 as more Mexicans opted for broadband services.

Mexico, Telefonos de Mexico (Telmex)