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

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