Teléfonos de Mexico S.A. de C.V.'s (Telmex) 2Q 09 results witnessed a y-o-y decline, with weak performances from local and long distance services, which accounted for the majority of revenues. Revenues from the Data related segment continued to witness robust growth, partially offsetting weak performances from the company's key revenue generating segments. Although we expect Telmex's wireline services to continue to be impacted by the increasing migration…

Telmex is Mexico’s largest fixed-line player with close to 17.6 mn lines in operation, translating into an approximately 90% national market share. Voice revenues, which are Telmex’s core area of operation (74.7% of total revenues) have been experiencing a slowdown due to migration of subscribers towards wireless services and rising competition from pay TV operators engaged in providing telephone servies…

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Teléfonos de Mexico S.A. de C.V.’s (Telmex) common stock has witnessed a 20% depreciation in price since our previous report, mainly on account of the ongoing financial crisis and volatility in global equity markets, coupled with concerns of a slowdown in the Mexican economy. Hence, although at current levels our target price does not support a HOLD rating, we are not likely to change our rating until we reassess our estimates and…