Mexican fixed line duo report second quarter financials

23 Jul 2009

Mexican fixed line incumbent Telefonos de Mexico (Telmex) has posted a 4.3% drop in net profit to MXN5.92 billion (USD450 million) for the three months ended 30 June 2009 on the back of continued subscriber decline. Telmex also reported that total revenue had fallen 3.7% year-on-year to MXN29.79 billion, with long-distance and interconnection revenue falling 16.8% and 11.3% respectively. The operator attributed the decline in interconnection revenue falling average revenue of calling party pays services, although it did note that this had been offset somewhat by an increase in revenue from internet access and corporate services. Fixed line subscribers fell to 17.42 million, down from 17.51 at the end of the previous quarter, and down by around 245,000 compared to the same quarter in 2008. As the incumbent turns its attention to its high speed internet services to offset the decline associated with its fixed line voice business, at end-June 2009 it had 5.9 million ADSL subscribers, up 55.1% compared to end-June 2008.

Telmex rival Axtel has also released its financial results for the same three-month period, also reporting a drop in revenue for the quarter to MXN2.75 billion. In a bid to expand revenue opportunities the telco said it will consider participating in Mexico’s upcoming wireless spectrum auctions. More positively, however, Axtel said it had almost doubled net profit compared to the same period a year earlier, posting net profit of MXN486 million for 2Q 2009 compared to MXN240 million in 2Q 2008. The operator attributed the improvement to comprehensive financing gains.

Mexico, Axtel, Telefonos de Mexico (Telmex)