Oct. 27 (Bloomberg) -- Telefonos de Mexico SAB, the nation’s largest phone carrier, said third-quarter profit fell as more customers shut off their land lines to switch to cable providers or to mobile devices.
Net income dropped 3.8 percent to 3.59 billion pesos ($268 million) from 3.73 billion a year earlier, Mexico City-based Telmex said yesterday. Sales fell 2.9 percent to 27.8 billion pesos, compared with the 27.4 billion-peso average estimate of four analysts compiled by Bloomberg.
Telmex’s parent company, billionaire Carlos Slim’s America Movil SAB, is offering to buy the 40 percent of the phone carrier it doesn’t already own. The companies seek to retain more customers by combining America Movil’s wireless services with Telmex’s voice and Internet plans.
Telmex lost 127,000 phone lines in the third quarter, ending the period with 15.1 million. Cable providers such as Grupo Televisa SA have lured clients with packages that combine phone, Internet and video services. Telmex’s requests for a license to offer pay-TV service have been denied by Mexico’s government.
High-speed Internet customers rose by 143,000 to 7.8 million in the quarter, Telmex said.
Minority shareholders have until Nov. 11 to accept America Movil’s offer for 10.50 pesos per Telmex share, according to documents filed with Mexico’s stock exchange earlier this month. America Movil will delist Telmex from the exchange if the parent company acquires enough shares, it said.
Telmex slid less than 1 percent to 10.46 pesos in Mexico City yesterday before the results were released. The shares have gained 4.5 percent this year.
(Telmex plans to hold a conference call today at 10 a.m. New York time. To listen, call +1-866-825-1692 from the U.S. or +1-617-213-8059 outside the U.S. and use the password “Telmex.”)
--Editors: Donna Alvarado, Stephen West
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