Telmex reports Q4 profit hike

11 Feb 2008

Mexican fixed line incumbent Telmex has posted a 26.3% rise in fourth quarter net profit to MXN8.65 billion (USD803 million) compared to MXN6.85 billion in 4Q06, writes BNamericas citing a company statement. Fourth quarter revenues were MXN31.8 billion, down 2.4% from MXN32.7 billion in 4Q06. In a conference call, Telmex CFO Adolfo Cerezo said that the current economic situation in the US was partly responsible for the drop, adding that December had been the company’s worst month in five years. Despite an increase in data revenues these were unable to offset the decline in Telmex’s traditional mainstay of long-distance and local voice revenues, Cerezo said. EBITDA fell 9.3% in Q4 to MXN14.2 billion from MXN15.6 billion a year earlier. Full year net profit was up 19.7% to MXN35.5 billion although

annual EBITDA dropped 4.1% to MXN62.3 billion from MXN65 billion in 2006.

The company ended 2007 with 17.8 million fixed lines in service, down 2.5% from the previous year. Telmex CEO Hector Slim said that some 357,000 lines were cut off as the company ramped up a drive to migrate customers from dial up internet to broadband. The company claimed 3.32 million internet customers at the end of the year, of which 2.93 million were broadband ‘Infinitum’ users.

Mexico, Telefonos de Mexico (Telmex)