Telmex Internacional Third Quarter 2008

Friday, October 24th, 2008

In the third quarter Telmex Internacional (Mexico:TELINTL; NYSE:TII) consolidated revenues totaled 19.573 billion pesos, an increase of 14.4% compared with the same period of 2007. This result reflected increases of 39.7% in local service revenues, 24.1% in revenues from the Internet access business, 7.3% in domestic long distance revenues and 241.5% in cable TV revenues. International long distance revenues decreased 12.6%.


At the end of September 2008, Net Fone (triple play), offered though Net Serviços, served 1 million 532 thousand customers. This service represents an important growth opportunity, since Net Serviços network currently passes approximately 9.5 million homes and more than 73.6% of its network is bi-directional.

Net currently serves close to 2.9 million pay TV users and 2.1 million broadband Internet users.


Colombia’s network currently passes 4.4 million homes and 40.6% of its network is bi-directional. Additionally, at the end of September we had 2.4 million access RGUs in the market in Colombia, an increase of 52.5% during the last 12 months.


Revenues from the operations in Chile reached 29.8 billion Chilean pesos, 46.8% more than the third quarter of 2007 due to the incorporation of revenues from Pay TV services, which totaled 9.7 billion Chilean pesos, and to the increase in the corporate networks and Internet access businesses of 17.6%, while local services revenues increased 19.3%.


In the third quarter, costs and expenses increased 48.6%, reflecting increases of 82.3% in commercial, administrative and general expenses for the integration of the acquired cable TV companies.

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