Telmex revenues dip 3.6 percent in Q1 2011

Telmex (NYSE: TMX), Mexico's dominant telco, saw the pains of declining local and long distance telephony drive down its Q1 2011 revenue 3.6 percent to 27.54 billion pesos ($2.39 billion).

Operating revenue for Telmex declined from 7.66 billion pesos ($665 million) in Q1 2010 to 6.65 billion pesos ($577 million). Profit decreased by 16.7 percent to 3.75 billion pesos ($325 million).

A big contributor to the revenue issues in Q1 were declines in both local and long distance voice revenues to a growing base of cable and foreign operators like Telefonica (NYSE: TEF). During the quarter, local voice revenues declined 6.7 percent and long distance declined 2.8 percent. Meanwhile, wholesale interconnections fell 16.8 percent.

On a slightly positive side, data and broadband revenues were up in Q1. Broadband subscribership rose 7 percent to 7.65 million pesos ($664,782)), up from 6.88 million pesos ($597,780) in Q1 2010.

For more:
- Reuters has this article

Special Report: Wireline in the first quarter of 2011

Related articles:
Telmex to create division targeting rural areas
Telmex Q4 net profit dips with higher tax bill
Cofetel wants Telmex to reduce phone service prices further

Suggested Articles

LF Edge, an umbrella organization that's part of the Linux Foundation, announced the second release of its Akraino Edge Stack.

Chris Young is leaving his role as CEO of cybersecurity firm McAfee to become a senior advisor with TPG Capital, which has a majority stake in McAfee.

CenturyLink wins a $1.6 billion contract with the U.S. Department of Interior to upgrade its network services and modernize its IT solutions.