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.
- Reuters has this article
Special Report: Wireline in the first quarter of 2011
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