FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of
April 2009Commission File Number: 333-13580
TELÉFONOS DE MÉXICO, S.A.B. DE C.V. (Exact Name of the Registrant as Specified in the Charter) |
Telephones of Mexico (Translation of Registrant's Name into English) |
Parque Vía 190 Colonia Cuauhtémoc México City 06599, México, D.F. (Address of principal executive offices) |
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F.... .....Form 40-F.........
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No... ..
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
-----------------------------------------------------------------------------------------------------------------------------------------------------
Highlights
First Quarter 2009
Estimated Telephony Market Share in Mexico - March 2009
Type of service |
||
Users |
Market share |
|
Mobile Telephony TELMEX Other fixed line services |
78.4 million 17.5 million 3.4 million |
79.0% 17.6% 3.4% |
Total |
99.3 million |
100.0% |
(1) EBITDA: defined as operating income plus depreciation and amortization. Go to www.telmex.com in the Investor Relations section where you will find the reconciliation of EBITDA to operating income.
(2) One ADR represents 20 shares.
(3) Net debt is defined as total debt less cash and cash equivalents and marketable securities.
Relevant Events
March 3, 2009 Ordinary Shareholders' Meeting
On March 3, 2009 the Ordinary Shareholders' Meeting resolved to increase the amount of funds that can be allocated to purchase the Company's own shares by 10 billion pesos. The amount takes into consideration, retained earnings as of December 31, 2008.
Annual Shareholders' Meetings Calling
The Board of Directors, at its meeting held on March 18, 2009, resolved to call for series "L" Special and Annual Shareholders' Meetings, to be held on April 28, 2009, in order to appoint the members of the Board of Directors pertaining to Series "L" shares and to declare a cash dividend of 0.46 Mexican pesos per outstanding share in four equal payments of 0.1150 Mexican pesos per outstanding share, resulting from the net tax profit account. Dividend payments were proposed to be made in México on June 18, 2009, on September 18, 2009, on December 17, 2009 and on March 26, 2010.
Operating Results
Lines in service and local traffic
At the end of the first quarter, the number of lines in service was 17 million 514 thousand, 75 thousand lower than December of 2008. The number of disconnections is occurring mainly as a result of competition from fixed, mobile and pay TV companies.
Of our lines in service, approximately 10.1 million are in areas that interest competitors and where they also have presence. However, 7.4 million lines are in areas that hold no interest to competitors. In the quarter, these lines generated revenues of approximately 4.699 billion pesos and an operating loss of 778 million pesos.
Local traffic volume continues to be affected mainly by customers' changing consumption habits as a result of competition from cellular telephony, local and pay TV companies. During the first quarter, local traffic decreased 9.9% compared with the same period of 2008, totaling 5.245 billion local calls.
Long distance
From January to March, domestic long distance (DLD) traffic increased 5.0% compared with last year's first quarter, totaling 4.939 billion minutes, due to more multi-service package offerings that include DLD minutes and higher traffic from long distance operators, offset by the decrease in termination traffic with cellular operators.
We consider that the effect of the world wide economic crisis and resulting decrease in the nation's industrial activity was present in the international long distance traffic volumes. In the first quarter of 2009, outgoing international long distance (ILD) traffic decreased 29.3% compared with last year's first quarter, totaling 375 million minutes. Incoming international long distance traffic decreased 6.2% compared with the same period of the previous year, totaling 1.466 billion minutes. The incoming-outgoing ratio was 3.9x.
Interconnection
In the first quarter, interconnection traffic totaled 10.670 billion minutes, 6.1% lower than the same quarter of 2008. Calling party pays traffic decreased 11.2% because of the increase of cellular services. Interconnection traffic with local, long distance and cellular telephony operators decreased 4.5%.
Internet access
At TELMEX, one of our main commitments is to promote broadband penetration to drive the digital culture and the technological development in the country. During the first quarter of 2009 we continued the growth trend of broadband Infinitum services (ADSL) with a gain of 512 thousand services reaching a total of 5.52 million customers. In the last 3 years, we have increased the number of broadband customers at an annual average rate of 65.7%.
TELMEX significant investments in capacity have produced one of the most advanced networks worldwide allowing us to continue promoting broadband penetration in the country. Additionally, the company has sold almost 2 million computers in instalments for the last ten years, which has contributed to the increase of computers penetration and Mexico's dynamic broadband growth.
In 2009, we will continue our offering of multi-service packages. They include several telecommunications services with substantial discounts of up to 42%, thereby accelerating access to broadband services and other voice services. These packages are designed to serve families and small and medium-sized business, and they have grown in recent years because of their attractive features. Similarly, companies and other major customers have plans tailored to satisfy their needs.
Financial Results
The following financial information for 2009 and 2008 is presented in nominal pesos, according to Mexican Financial Reporting Standards.
Revenues: In the first quarter, revenues totaled 30.0 billion pesos, a decrease of 3.6% compared with the same period of the previous year. These results include decreases of 9.0% in local service revenues, 8.2% in long distance service revenues and 13.1% in interconnection revenues. The decrease in interconnection revenues reflected a decline of 6.7% in the average revenue of calling party pays services, partially offset by increases of 32.0% in Internet access revenues and 9.0% in corporate networks revenues.
Costs and expenses: In the first quarter, total costs and expenses were 20.400 billion pesos, at a similar level as the same period of 2008, mainly due to initiatives carried out to optimize resource use and the 9.9% decrease in the amount paid to cellular operators for calling party pays services, offset by the increase in the reserve for uncollectables, to higher commissions related to growth in broadband services charges and higher charges related to labor costs.
EBITDA (1) and operating income: EBITDA (1) totaled 14.087 billion pesos in the first quarter, a decrease of 7.0% compared with the same period of last year. The EBITDA margin was 46.9%. Operating income totaled 9.617 billion pesos in the first quarter and the operating margin was 32.0%.
Financing cost: In the first quarter, financing cost produced a charge of 2.393 billion pesos. This resulted from: i) a net interest charge of 1.825 billion pesos, 11.1% less than the charge registered in the same period of 2008, mainly due to the decrease in paid interest for lower debt and the recognition of the market value of interest rate swaps; and ii) a net exchange loss of 568 million pesos from the first-quarter exchange rate devaluation of 0.7934 pesos per dollar, offset by 4.661 billion dollars in dollar-peso hedges.
Majority net income: In the first quarter, majority net income totaled 4.759 billion pesos, 14.6% lower than the same period of the previous year. Earnings per share were 26 Mexican cents, a year-over-year decrease of 10.3%, and earnings per ADR (2) were 36 US cents, a decrease of 33.3% compared with the same period of 2008.
Investments: In the first quarter, capital expenditures (capex) were the equivalent of 224 million dollars, of which 80.6% was used for growth projects in the voice, data and transport infrastructure and the rest for other projects.
Debt: Total debt at March 31 was the equivalent of 7.585 billion dollars, of which 65.1% is long-term, 35.0% has fixed rate and 82.0% is in foreign currency, equivalent to 6.217 billion dollars. To minimize risks from variations in the exchange rate, we have dollar-peso hedges for 4.661 billion dollars.
Total net debt (3) decreased during the last 12 months the equivalent of 1.209 billion dollars, reducing the total to 6.748 billion dollars. TELMEX has a solid and healthy financial structure that allows us to maintain state-of-the-art-technology and support the development of telecommunications in the country.
Repurchase of shares: During the first quarter, the company used 872 million pesos to repurchase 76 million 409 thousand of its own shares.
Relevant Figures |
|||||||
( In millions of Mexican pesos, unless otherwise indicated) |
|||||||
% |
|||||||
1Q2009 |
1Q2008 |
Inc. |
|||||
Revenues |
Ps. |
30.017 |
Ps. |
31.122 |
(3,6) |
||
EBITDA (1) |
14.087 |
15.151 |
(7,0) |
||||
EBITDA margin (%) |
46,9 |
48,7 |
(1,8) |
||||
Operating income |
9.617 |
10.630 |
(9,5) |
||||
Operating margin (%) |
32,0 |
34,2 |
(2,2) |
||||
Majority net income |
4.759 |
5.574 |
(14,6) |
||||
Earnings per share (pesos) |
0,26 |
0,29 |
(10,3) |
||||
Earnings per ADR (dollars) (2) |
0,36 |
0,54 |
(33,3) |
||||
Outstanding shares (millions) |
18.479 |
19.111 |
(3,3) |
||||
Equivalent ADRs (millions) (2) |
924 |
956 |
(3,3) |
||||
(1) EBITDA: defined as operating income plus depreciation and amortization. Go to www.telmex.com in the Investor |
|||||||
Relations section where you will find the reconciliation of EBITDA to operating income. |
|||||||
(2) One ADR represents 20 shares. |
|||||||
Income Statements |
|||||
Income Statements |
|||||
[ In millions of nominal Mexican pesos ] |
|||||
% |
|||||
1Q2009 |
1Q2008 |
Inc. |
|||
Revenues |
|||||
Local |
Ps. |
11.546 |
Ps. |
12.693 |
(9,0) |
Domestic long distance |
3.716 |
4.144 |
(10,3) |
||
International long distance |
2.009 |
2.095 |
(4,1) |
||
Interconnection |
4.165 |
4.791 |
(13,1) |
||
Corporate networks |
3.270 |
3.001 |
9,0 |
||
Internet |
3.836 |
2.907 |
32,0 |
||
Others |
1.475 |
1.491 |
(1,1) |
||
Total |
30.017 |
31.122 |
(3,6) |
||
Costs and Expenses |
|||||
Cost of sales and services |
7.992 |
7.779 |
2,7 |
||
Commercial, administrative and general |
4.953 |
4.731 |
4,7 |
||
Interconnection |
2.985 |
3.461 |
(13,8) |
||
Depreciation and amortization |
4.470 |
4.521 |
(1,1) |
||
Total |
20.400 |
20.492 |
(0,4) |
||
Operating income |
9.617 |
10.630 |
(9,5) |
||
Other expenses, net |
250 |
401 |
(37,7) |
||
Financing cost |
|||||
Interest, net |
1.825 |
2.053 |
(11,1) |
||
Exchange loss, net |
568 |
514 |
10,5 |
||
Total |
2.393 |
2.567 |
(6,8) |
||
Equity interest in net income (loss) of affiliates |
(1) |
11 |
NA |
||
Income before income tax |
6.973 |
7.673 |
(9,1) |
||
Income tax |
2.213 |
2.100 |
5,4 |
||
Income before noncontrolling interest |
4.760 |
5.573 |
(14,6) |
||
Noncontrolling interest, net |
(1) |
1 |
NA |
||
Majority net income |
Ps. |
4.759 |
Ps. |
5.574 |
(14,6) |
EBITDA (1) |
Ps. |
14.087 |
Ps. |
15.151 |
(7,0) |
EBITDA margin (%) |
46,9 |
48,7 |
(1,8) |
||
Operating margin (%) |
32,0 |
34,2 |
(2,2) |
||
Exchange rate at March 31, 2009: 14.3317 pesos vs dollar |
|||||
(*) higher than 1000% |
|||||
NA not applicable |
|||||
|
Balance Sheets |
||||
[ In millions of nominal Mexican pesos ] |
||||
March 31, |
March 31, |
|||
2009 |
2008 |
|||
Assets |
||||
Cash and cash equivalents |
Ps. |
11.987 |
Ps. |
7.141 |
Other current assets |
44.524 |
25.675 |
||
Plant, property and equipment, net |
111.688 |
117.500 |
||
Other assets |
6.309 |
5.667 |
||
Net prepaid benefit obligation |
14.214 |
14.504 |
||
Total assets |
Ps. |
188.722 |
Ps. |
170.487 |
Liabilities and stockholders' equity |
||||
Current portion of long-term debt |
Ps. |
37.983 |
Ps. |
12.088 |
Other current liabilities |
20.624 |
19.808 |
||
Long-term debt |
70.718 |
80.167 |
||
Labor obligations |
4.420 |
5.353 |
||
Deferred taxes |
15.465 |
16.086 |
||
Deferred credits |
395 |
453 |
||
Total liabilities |
149.605 |
133.955 |
||
Stockholders' equity |
||||
Majority stockholders' equity |
39.071 |
36.489 |
||
Noncontrolling interest |
46 |
43 |
||
Total stockholders' equity |
39.117 |
36.532 |
||
Total liabilities and stockholders' equity |
Ps. |
188.722 |
Ps. |
170.487 |
Exchange rate at March 31, 2009: 14.3317 pesos vs dollar |
||||
Operating Results |
||||||||
% Inc. vs. |
||||||||
1Q 2009 |
4Q 2008 |
3Q 2008 |
2Q 2008 |
1Q 2008 |
1Q 2008 |
|||
Lines in service (thousand units) |
17.514 |
17.589 |
17.673 |
17.660 |
17.795 |
(1,6) |
||
Local traffic (million units) |
||||||||
Local calls |
5.245 |
5.419 |
5.699 |
5.644 |
5.820 |
(9,9) |
||
Interconnection minutes (A) (B) |
10.670 |
11.453 |
11.704 |
11.482 |
11.364 |
(6,1) |
||
Long distance traffic (million minutes) |
||||||||
Domestic long distance (A) |
4.939 |
4.920 |
4.946 |
5.119 |
4.702 |
5,0 |
||
International long distance |
||||||||
(incoming and outgoing) (B) |
1.841 |
2.192 |
2.260 |
2.188 |
2.093 |
(12,0) |
||
Internet (thousands) |
5.699 |
5.217 |
4.600 |
4.075 |
3.648 |
56,2 |
||
Prodigy (Dial-up) |
177 |
207 |
238 |
271 |
332 |
(46,7) |
||
Infinitum (ADSL) |
5.522 |
5.010 |
4.362 |
3.804 |
3.316 |
66,5 |
||
(A) Includes domestic long distance calling party pays traffic |
||||||||
(B) Includes international long distance calling party pays traffic |
||||||||
Mexico Local and Long Distance Accounting Separation |
||||||
Based on Condition 7-5 of the Amendments of the Concession Title of Teléfonos de México, the |
||||||
commitment to present the accounting of the local and long distance services is presented |
||||||
below for the first quarter of 2008 and 2008. |
||||||
Mexico Local Service Business |
||||||
Income Statements |
||||||
[ In millions of nominal Mexican pesos ] |
||||||
% |
||||||
1Q2009 |
1Q2008 |
Inc. |
||||
Revenues |
||||||
Access, rent and measured service |
Ps. |
11.440 |
Ps. |
12.485 |
(8,4) |
|
LADA interconnection |
1.351 |
943 |
43,3 |
|||
Interconnection with operators |
440 |
378 |
16,4 |
|||
Interconnection with cellular operators |
2.775 |
3.127 |
(11,3) |
|||
Other |
3.689 |
3.636 |
1,5 |
|||
Total |
19.695 |
20.569 |
(4,2) |
|||
Costs and expenses |
||||||
Cost of sales and services |
5.832 |
5.504 |
6,0 |
|||
Commercial, administrative and general |
4.540 |
4.265 |
6,4 |
|||
Interconnection |
1.812 |
2.108 |
(14,0) |
|||
Depreciation and amortization |
2.671 |
2.881 |
(7,3) |
|||
Total |
14.855 |
14.758 |
0,7 |
|||
Operating income |
Ps. |
4.840 |
Ps. |
5.811 |
(16,7) |
|
EBITDA (1) |
Ps. |
7.511 |
Ps. |
8.692 |
(13,6) |
|
EBITDA margin (%) |
38,1 |
42,3 |
(4,2) |
|||
Operating margin (%) |
24,6 |
28,3 |
(3,7) |
|||
Mexico Long Distance Service Business |
||||||
Income Statements |
||||||
[ In million of nominal Mexican pesos ] |
||||||
% |
||||||
1Q2009 |
1Q2008 |
Inc. |
||||
Revenues |
||||||
Domestic long distance |
Ps. |
4.244 |
Ps. |
4.818 |
(11,9) |
|
International long distance |
1.961 |
Ps. |
2.148 |
(8,7) |
||
Total |
6.205 |
Ps. |
6.966 |
(10,9) |
||
Costs and expenses |
||||||
Cost of sales and services |
1.451 |
1.445 |
0,4 |
|||
Commercial, administrative and general |
1.347 |
1.279 |
5,3 |
|||
Interconnection to the local network |
1.993 |
1.876 |
6,2 |
|||
Depreciation and amortization |
521 |
541 |
(3,7) |
|||
Total |
5.312 |
5.141 |
3,3 |
|||
Operating income |
Ps. |
893 |
Ps. |
1.825 |
(51,1) |
|
EBITDA (1) |
Ps. |
1.414 |
Ps. |
2.366 |
(40,2) |
|
EBITDA margin (%) |
22,8 |
34,0 |
(11,2) |
|||
Operating margin (%) |
14,4 |
26,2 |
(11,8) |
|||
Statement of cash flows |
||
[ In millions of nominal Mexican pesos ) |
||
Three months |
||
ended |
||
March 31, 2009 |
||
Operating activities |
||
Income before income tax: |
Ps |
6.973 |
Depreciation and amortization |
4.470 |
|
Interest expense |
2.034 |
|
Other items not requiring the use of cash |
2.294 |
|
Total |
15.771 |
|
Cash flows used by operating activities |
(1.843) |
|
Net cash flows provided by operating activities |
13.928 |
|
Investing activities |
||
Acquisitions of plant, property and equipment |
(4.082) |
|
Other investments |
203 |
|
Net cash flows used in investing activities |
(3.879) |
|
Excess of cash flows before financing activities |
10.049 |
|
Financing activities |
||
Repayment of loansAmortizaciones de financiamientos |
(3.059) |
|
Acquisition of own shares |
(872) |
|
Dividen paid |
(1.808) |
|
Interest paid |
(1.542) |
|
Derivative financial instruments |
3.082 |
|
Net cash flows used in financing activities |
(4.199) |
|
Net increase in cash and cash equivalents |
5.850 |
|
Cash and cash equivalents at begining of periord |
6.137 |
|
Cash and cash equivalents at end of periord |
$ |
11.987 |
Financial Statements Mexico |
||||||||
Income Statements of Communities with and without Presence |
||||||||
of the Competition at March 31, 2009. |
||||||||
[ In millions of nominal Mexican pesos ) |
||||||||
Communities |
Communities |
|||||||
with presence of |
without presence of |
|||||||
competition * |
competition * |
Total |
||||||
Revenues |
||||||||
Local |
$ |
7.826 |
$ |
3.720 |
$ |
11.546 |
||
Domestic long distance |
3.511 |
205 |
3.716 |
|||||
International long distance |
1.748 |
261 |
2.009 |
|||||
Interconnection |
3.793 |
372 |
4.165 |
|||||
Corporate networks |
3.270 |
0 |
3.270 |
|||||
Internet |
3.731 |
105 |
3.836 |
|||||
Other |
1.439 |
36 |
1.475 |
|||||
Total revenues |
25.318 |
4.699 |
30.017 |
|||||
Costs and expenses |
||||||||
Operating costs and expenses |
9.160 |
3.785 |
12.945 |
|||||
Interconnection |
2.688 |
297 |
2.985 |
|||||
Depreciation and amortization |
3.075 |
1.395 |
4.470 |
|||||
Total |
14.923 |
5.477 |
20.400 |
|||||
Operating income |
$ |
10.395 |
$ |
(778) |
$ |
9.617 |
||
EBITDA (1) |
$ |
13.470 |
$ |
617 |
$ |
14.087 |
||
EBITDA margin (%) |
53,2 |
13,1 |
46,9 |
|||||
Operating margin (%) |
41,1 |
(16,6) |
32,0 |
|||||
* Figures are estimated |
||||||||
-----------------------------------------------------------------------------------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: April 27, 2009. |
TELÉFONOS DE MÉXICO, S.A.B. DE C.V. By: /s/__________________ Name: Adolfo Cerezo Pérez |
Ref: TELÉFONOS DE MÉXICO, S.A.B. DE C.V.
- Telmex Press Release: Highlights First Quarter 2009.