Brazilian fixed line operator Embratel Participações, a unit of Mexico’s Telmex, has reported first quarter net profits of BRL132 million (USD65 million), a 3% rise on the corresponding period of 2006. Net revenues rose by 3.8% from BRL2.04 billion to BRL2.11 billion on the back of a rise in local calling revenues and rising handset sales. In the fiscal first quarter Embratel said revenues from data communications increased by 2.6% year-on-year to BRL568 million, partially offsetting a 12.4% decline in long-distance call revenues to BRL128 million. EBITDA was up 1.4% at BRL535 million however, although the EBITDA margin slipped from 25.9% in Q12006 to 25.3% a year later. Operating profit (EBIT) stood at BRL230 million, down from BRL241 million in the corresponding period of 2006. According to BNamericas, CAPEX was BRL218 million, split mainly between access, infrastructure and local services (32.4%), network infrastructure (27.2%), and data and internet services (25%).