[October 21, 2009] Mexico's Telmex says profits down 11.9 pct in 3Q Tweet (Associated Press Via Acquire Media NewsEdge) MEXICO CITY_Telecommunications giant Telefonos de Mexico SA posted a 11.9 percent drop in third-quarter profits on Wednesday, saying increased competition and an economic slump hurt sales. Telmex said in an earnings report that net income was 4.79 billion pesos ($354 million), compared to 5.43 billion pesos in the third quarter of 2008. The company, owned by Mexican billionaire Carlos Slim, said revenue was 29.5 billion pesos, a 5 percent drop from 31 billion pesos in the year-earlier period. It blamed decreasing sales in part on Mexico's worst recession in more than a decade, which has penny-pinching customers making fewer calls. Telmex also cited customers switching from landlines to cell phones or to cable companies offering so-called triple play service: bundled phone, TV and Internet packages. Telmex, which controls about 85 percent of Mexico's fixed phone lines, said it operated 17.3 million fixed telephone lines as of the end of September, down 69,000 from at the previous quarter's close. The company's broadband Internet business did better, however, adding 403,000 customers during the third quarter to reach a total of 6.3 million. Broadband revenue rose 18 percent in the quarter, Telmex said. Telmex shares fell 1.1 percent to close at 11.34 pesos Wednesday before the report was released. (c) 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. [ Back To TMCnet.com's Homepage ]