Mexico telecom giant Telmex says profits fell 13% in 2nd quarter
Telefonos de Mexico SA, Mexico's dominant fixed-line phone operator, said that profits fell 13 per cent in the second quarter amid stronger competition.
By Agencies |
MEXICO CITY: Telefonos de Mexico SA, Mexico's dominant fixed-line phone operator, said Tuesday that profits fell 13 per cent in the second quarter amid stronger competition.
Telmex, which is owned by Mexican billionaire Carlos Slim, reported net profits fell to 6.2 billion pesos (US$612 million) for the quarter, compared with 7.1 billion pesos (US$701 million) in the same period last year.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, dropped 7.5 per cent to 14.4 billion pesos (US$1.4 billion).
Sales were 30.9 billion pesos (US$3 billion), down 6.3 per cent from 33 billion pesos (US$3 billion at 2007 rates) in the year-ago quarter.
Telmex, which controls more than 90 per cent of fixed lines in the country, said it had 17.7 million lines in service as of June 30, a drop of 3 per cent from last year. Local traffic, meanwhile, fell by 10.3 per cent.
``Local traffic volume was affected by competition from local and cellular telephony and by managed networks,'' Telmex said.
Telmex's U.S.-traded shares were down 0.55 per cent to US$24.63 in after-hours trading Tuesday. Earlier, the stock closed the regular session on the New York Stock Exchange at down nearly 1 per cent at US$24.77.
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