Telmex Internacional posts 13.6% net income growth for 4Q 2008

19 Feb 2009

Mexico-based Telmex Internacional (Telint), the Latin American and US fixed line and broadband group created following a split from Mexican dominant fixed line incumbent Telmex in June 2008, has reported its financial results for the three months ended 31 December 2008. Net profit for the group rose 13.6% to MXN1.25 billion (USD91.6 million), up from MXN1.10 billion a year earlier, based on pro-forma results. Telint attributed the increase to tax gains, including a one-off tax refund of MXN844 million, which helped offset foreign exchange losses across the group’s subsidiaries. Despite growth for the quarter, the group’s net profit for the twelve months ended 31 December 2008 fell 14.4% to MXN5.54 billion as a result of higher costs coupled with foreign exchange loss of MXN1.88 billion over the year; group-wide operating costs rose 16.8% in 2008 to MXN67.1 billion. Revenues for Telint increased year-on-year in the fourth quarter, although less than expected, rising 11.8% to MXN19.47 billion for the quarter, while full-year revenue increased 12.2% to MXN76 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the three-month period meanwhile were up 5.2% y-o-y at MXN4.32 billion, compared to MXN4.11 billion for the same period the year before.

Telint also announced plans to invest USD1.1 billion across all its subsidiaries in fiscal 2009, compared to USD1.6 billion spent in 2008. It also noted that this amount could decrease further subject to global economic conditions. The group’s operations in Brazil and Colombia saw the bulk of capital expenditure during 2008, with 61% of capital expenditure directed at the Brazilian market and 14% set aside for Colombia. Telint also has operations in Chile, Peru, Ecuador, Argentina and the USA.

Mexico, Telmex Internacional