Telmex reports 3Q net profit drop amid increased competition

22 Oct 2008

Telmex, Mexico’s leading fixed line and broadband provider, has released its financial results for the three months ended 30 September 2008, revealing a 28% drop in net profit for the period. Net profit for the quarter stood at MXN5.43 billion (USD500 million), down from MXN7.55 billion a year earlier, with the operator citing increased competition from both fixed line and wireless operators as having impacted on the results. Revenues for the period were also down 5.7% year-on-year from MXN32.97 billion to MXN31.09 billion, while earnings before interest, tax, depreciation and amortisation (EBIDTA) also fell to MXN14.35 billion, a fall of 11.1% from the previous year. The poor fixed line results were slightly offset by continued growth in the broadband sector, with the operator reporting a 26.6% rise in revenues from internet accesses, with ADSL subscriber figures climbing 63% over the twelve months to 30 September 2008 to reach 4.36 million.

Earlier this year Telmex spun off its international assets into a separate entity, Telmex Internacional, and the new company is expected to report its financial results later this week.

Mexico, Telefonos de Mexico (Telmex)