Telmex domestic ops see 1Q net profit plunge 27%

Mexican fixed line operator Telmex posted a 26.7% drop in first quarter net profit from its domestic operations in the first quarter of 2008. Profit for the three months ended 31 March 2008 slipped to MXP5.573 billion (USD526 million) amid tougher competition at home from the likes of Axtel and Maxcom. Revenue slipped 5.5% to MXP31.12 billion, while EBITDA fell 7.7% to MXP15.151 billion. Telmex is in the process of spinning off its international operations in Argentina, Brazil, Chile, Colombia and Peru and has begun to report the results of the two units separately. Telmex Internacional reported a first quarter net profit of MXP1.937 billion, up 3.7% from a year earlier. Revenues jumped 11.5% to MXP18.415 billion, but higher costs kept a lid on EBITDA growth, only up 2.6%.