Telmex profit drops 17 pc as sales edge down

MEXICO CITY (AP) — Mexican communications company Telefonos de Mexico says its first-quarter profit fell 16.9 percent as revenues dipped amid a drop in customers for its landline phone service.

Telmex says its profit totaled 3.76 billion pesos ($314.5 million) in the January-March period. That compares to a profit of 4.52 billion pesos in the same period of 2010.

The earnings report released Thursday says revenue decreased 3.6 percent in the first quarter, dropping to 27.55 billion pesos ($2.3 billion).

The company controlled by billionaire Carlos Slim says it had 12.5 million fixed telephone lines in service as of March 31. That is down just under 1 percent from a year earlier. Telmex controls more than 78 percent of Mexico's landline market.