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.