Telmex sees 11.9% drop in net profit in 3Q 2009

22 Oct 2009

Mexico’s fixed line incumbent Telefonos de Mexico (Telmex) has released its financial results for the three months ended 30 September 2009, posting a 11.9% decline in net profit as a result of dwindling fixed line numbers, with increased competition from mobile services and poor economic conditions in the country both cited as factors. In the three-month period net profit fell to MXN4.79 billion (USD355 million), while total revenue also dropped, down 5% year-on-year to MXN29.5 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile was MXN12.9 billion, down almost ten percentage points against the same period a year earlier.

In the fiscal quarter Telmex lost a total of 69,000 fixed lines, bringing the total down to 17.35 million, with the operator estimating that following the decline its market share of the fixed line sector had fallen to approximately 83%. The operator however continues to focus its attention on broadband services as it looks to offset the declines stemming from its fixed line voice business. In 3Q 2009 Telmex added 403,000 ADSL subscribers, lifting its subscriber base to 6.3 million, up 44.5% compared to end-September 2008.

Mexico, Telefonos de Mexico (Telmex)