Telmex obtained net profits for US$ 801 million in the first quarter, an increase of 9.1 percent as regards profits of the same period last year. The profits per share grew  4 cents, 15.8 percent compared with the first quarter of 2006. The company’s total income rose to US$ 4.09 billion, 2.5 percent more than in the year-to-year comparison. Of the total profits, US$ 2.95 billion belong to Mexico, US$ 1.04 billion to Brazil’s operations and US$ 104 million to the rest of Latin America.

Consolidated EBITDA in the first three months of the year was reduced 2.2 percent up to US$ 1.77 billion. The fall was mainly caused by the rise of Mexico’s interconnection expenses related to the implementation of the “national and and international he who calls pays” service in mobile telephony. Telmex’s consolidated debt level grew US$ 127 million in the first quarter to add a total of US$ 7.64 billion. The consolidated investment in the period reached the US$ 267 million while the purchase of its own stake demanded an expense of US$ 139 million.

Mexico is Telmex’s main market; in March the company registered a total of 18.4 million landlines, which represents more than 93 percent of the local market. Broadband service Prodigy Infinitum (ADSL) customers reached to 2.1 million. Between January and March, Telmex incorporated  304,000 new ADSL accounts, 75.3 percent more in comparison with March 2006. The company supported the business growth with the financing of computers sale.

In March, Telmex anounced that it expects to invest around US$ 1.9 million this year. Of the total amount, US$ 1.1 million will be for Mexico and US$ 800 million for the rest of its operations in Latin America without having eventual investment in Telecom Italia, if it finally acquires the control over the Italian holding. The company will invest US$ 600 million in Brazil and US$ 200 million divided among the subsidiaries of Chile, Colombia, Argentina and Peru. The expansion of Telmex’s Latin American operations will continue to be focused on the Andean region.

The company became consolidated as the first cable television operator in Colombia after having entered into an agreement to purchase 100 percent of Colombian cable operators Cablecentro and Satelcaribe. The two companies are added to TV Cable, Superview and Cable Pacífico, acquired by Telmex between October last year and February 2007. Moreover, it is negotiating to acquire Teledinámica and Promisión. With the new purchase, Telmex will have 760,557 subscribers, which represents 51.78 percent of the Colombian cable TV market.

In Ecuador, Telmex purchased all of Ecuador Telecom’s (Ecutel) stake; it is an operator providing wireless fixed telephony to 5,000 customers in the whole country. In Chile, it has officially started marketing its WiMax network. In Peru, it is very close to purchase Boga Comunicaciones, that offers cable television under the brand Cable Express.