Mexican fixed line and broadband provider Telefonos de Mexico (Telmex) has released financial results for the three months ended 31 March 2009, reporting a 14.6% drop in net profit to MXN4.76 billion (USD341 million). The company attributed the decline to exchange rate losses and lower sales; exchange rate losses totalled MXN568 million in the quarter while revenues for the three-month period fell 3.6% year-on-year to MXN30 billion. The fall in revenue stemmed predominantly from the decline in the fixed line voice sector as fixed to mobile substitution continues and competition for the former monopoly increases. Revenues from domestic long-distance services fell 10.3% in the three-month period, while local service revenues dropped by 9%. Helping to offset the decline, revenues from the operator’s high speed internet services climbed 32% y-o-y, and it reported the addition of 512,000 subscribers over the quarter, to reach a total of 5.52 million at end-March 2008. In contrast, fixed lines in service fell 75,000 to 17.5 million at that date.