Mexico’s Telmex sees weaker Internet growth in ’11

* Only growing business segment set to slow down

* Company looking to pay down more debt

MEXICO CITY, Oct 26 (BestGrowthStock) – Billionaire Carlos Slim’s
Telmex said it expects growth in its Internet business to slow
further in 2011 due to limited purchasing power from Mexican
clients, crimping the only blooming part of its business.

Telmex is the country’s dominant fixed-line and Internet
provider. Revenue from the Internet access and data business
rose 12 percent in the third quarter, but the pace of new
subscriber adds has gradually slowed in recent years.

“We see growth in the next year, yes, I don’t have any
doubts. As aggressive as we have seen this year and last year,
no, I don’t think so. I think we should be prudent,” Chief
Financial Officer Adolfo Cerezo told analysts during a call on
Tuesday.

Telmex reported on Monday a 21.5 percent drop in third
quarter net income and a 3.2 percent slide in quarterly
revenues as sales from local, long-distance and interconnection
traffic all fell. [ID:nN25139969]

The former monopoly lacks permission to sell video and is
facing rising competition from cable companies offering
television, phone service and Internet access in cheap bundled
packages.

Cerezo said the company would likely look to keep paying
down debt, rather than using cash for an extraordinary
dividend. Net debt decreased by $945 million since the end of
the third quarter last year to $5.539 billion at the end of
September.

Cerezo said that the rate of capital expenditures would
tick up in the fourth quarter to bring investment for the year
to around 11 billion pesos ($871 million).

Telmex (TELMEXL.MX: ) shares slipped 0.74 percent to 9.39
pesos in the Mexican stock exchange, while its New York-traded
stock (TMX.N: ) fell 0.97 percent to $15.19.

($1 = 12.6250 at end Sept)
(Reporting by Michael O’Boyle; editing Gunna Dickson)

Mexico’s Telmex sees weaker Internet growth in ’11