Telmex 4Q net profit drops

13 Feb 2007

Telmex has posted a 13.8% fall in fourth quarter net profit on the back of a rise in connection charges and a jump in financial provisions. Net profit for the three months ended 31 December 2006 fell to MXP7.401 billion (USD685 million), partly due to a 9.4% rise in overall costs to MXP33.148 billion and an increase in provisions for taxes and employee profit-sharing schemes to MXP4.331 billion from MXP2.922 billion a year earlier. Revenue for the period increased slightly to MXP44.8 billion (USD4.14 billion), up 1.7% compared to the same quarter of 2005. Telmex, majority-owned by Carlos Slim, the world’s third richest man, ended December with 18.25 million fixed lines in service, down 124,000 lines from a year earlier.

Mexico, Telefonos de Mexico (Telmex)