Telmex reports revenue, net profit drops in 2Q 2011

20 Jul 2011

Mexican fixed line incumbent Telefonos de Mexico has unveiled its financial results for the three months ended 30 June 2011, with the telco posting an 11.8% drop in net income and a 2.9% fall in turnover against the same period a year earlier. The operator, which is controlled by Latin American telecoms giant America Movil, reported revenues of MXN27.614 billion (USD2.357 billion) in 2Q 2011, down from MXN28.436 billion in the same period of 2010, with Telmex citing continued declines in fixed line subscriber numbers and call traffic as contributory factors. The operator did, however, note that turnover from data services had increased over the year, rising 5.4% to MXN8.714 billion, although this failed to offset the 7.9% drop in overall voice revenue, with local, domestic long-distance and international long-distance turnover standing at MXN9.687 billion (down 5.9% y-o-y), MXN3.018 billion (down 2.6%) and MXN1.464 billion (up 5%) respectively. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile stood at MXN11.074 billion, representing a 2.5% year-on-year fall compared to MXN11.355 billion a year earlier. Net income for the three month period was MXN3.148 billion.

In operational terms, at the end of June 2011 Telmex reported a total of 12.354 million fixed line voice customers, down 1.9% against the same date a year earlier. It noted that though that this figure excluded around 1.4 million lines that are operational in rural communities and will be served by Telmex Social, as well as a further 696,000 public telephony lines and 784,000 pre-paid lines. As previously reported by CommsUpdate, in March 2011 Telmex unveiled plans to break its fixed line voice operations apart, revealing it would form two separate companies, one of which will exclusively serve rural areas in a move thought to be aimed at countering criticism of its dominant position in the fixed line voice sector.

Broadband accesses at the end of June 2011 meanwhile totalled 7.680 million, up from 6.954 million a year earlier.

Mexico, Telefonos de Mexico (Telmex)