Lower first-quarter revenues hurt Telmex net profit

28 Apr 2010

First-quarter net profit for Mexican fixed line incumbent Telefonos de Mexico (Telmex) fell 2.1% year-on-year, the operator has revealed, with a drop in revenue cited as the major factor for the decline. For the three months ended 31 March 2010 Telmex posted a net profit of MXN4.66 billion (USD376.3 million) compared to the MXN4.76 billion it generated a year earlier. Revenues meanwhile totaled MXN28.6 billion, down 4.8% y-o-y; local, long-distance and interconnection revenues decreased 9.4%, 20.6% and 9.9%, respectively, although these were offset slightly by a 12.8% increase in revenue from the operator’s data services. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 14.2% against 1Q09 to MXN12.09 billion.

The decline in fixed line voice subscribers continued for the operator, with Telmex reporting that at end-March 2010 it had a total of 1.581 million fixed voice customers, down from 15.88 million in the previous quarter, and 1.75 million at March 2009 (the latter figure it noted included some 1.2 million lines that were at least two months behind on payments, while it has since stopped including these in its reported figures). Broadband uptake has been more encouraging however, and during the first quarter of 2010 its Infinitum ADSL service added 247,000 subscribers, bringing the total to 6.8 million.

Mexico, Telefonos de Mexico (Telmex)