Telmex CEO Adolfo Cerezo has railed at the delay by Mexican authorities to allow his company to offer TV services as one of the main factors that damaged the company’s results.
Cerezo said that it had been almost four years since the publication of the…
Telmex CEO Adolfo Cerezo has railed at the delay by Mexican authorities to allow his company to offer TV services as one of the main factors that damaged the company’s results.
Cerezo said that it had been almost four years since the publication of the convergence agreement in October 2006 which set out three conditions Telmex had to meet in order to be entitled to have its concession license modified to allow it to offer TV.
The executive said the company has met the conditions of number portability, interconnectivity and interoperability but seen no sign the government will change its mind. He added that the decision has been unfair and only damages customers.
Telmex announced a 39.7% drop in net earnings in the Q2’10 to Ps3.57bn (US$280m). Mexico’s largest fixed-line telecommunications company blamed a trend of fixed-to-mobile line migration and loss of subscribers to triple-play service companies for its subdued performance.
Revenues were Ps28.4bn (US$2.2bn), down 4.6% year-on-year. Subscribers at the end of the quarter fell by 1.7m to 15.7myear-on-year, leaving the company with a 79.5% market share of the country’s fixed-line market.
Capex for Q2 was US$168m, 70.4% of which went towards infrastructure projects for the data business. Ebitda was Ps11.3bn (US$88.5m), down 13.5% year-on-year. The margin was 39.6%, down 4.1% from 43.7% a year ago.
