Mon Feb 8, 2010 9:35pm IST
* What: Telmex Internacional fourth-quarter results
* When: Feb. 11
* Analysts expect 48 pct jump in net
MEXICO CITY, Feb 8 (Reuters) - Latin American telecoms
operator Telmex Internacional's net profit likely surged in the
fourth quarter, helped by strong growth at its Brazilian unit
and by exchange rate gains.
Mexico City-based Telmex Internacional (TELINTL.MX)
(TII.N), controlled by tycoon Carlos Slim, is expected to
report a 48 percent year-over-year jump in net profit to 1.858
billion pesos ($142 million), according to the average estimate
of five analysts consulted by Reuters.
Regional operator Telmex Internacional's quarterly earnings
before interest, taxes, depreciation and amortization (EBITDA)
were expected to come in at 6.358 billion pesos, up 47 percent
thanks to healthy expansion in its key Brazilian market.
"We believe that in the fourth quarter and coming quarters,
Telmex Internacional will report the most solid results in the
Latam telecom industry," BBVA analyst Andres Coello said in a
report.
Reacting to tougher competition in the region, Slim
unveiled a $21 billion plan last month to shift control of his
Mexican fixed-line operator, Telmex (TELMEXL.MX), and Telmex
Internacional, or Telint, into his flagship America Movil
(AMXL.MX).
Slim plans to absorb Telint into America Movil, the largest
cellphone operator in Latin America, and delist the fixed-line
operator from the stock exchange.
In a $16 billion spin-off, Slim created Telint in mid-2008
as a vehicle for the non-Mexican assets of Telmex.
Strong growth at Telint's Embratel in Brazil, which
contributes 80 percent of total revenue, is seen bolstering the
company's quarterly results.
"Outside of Brazil, we think Telint will see fourth-quarter
revenue expansion in local currency terms across all of its
other markets due to rising broadband usage," Morgan Stanley
said in a note to clients.
As well as Brazil, Telint has phone, cable TV and Internet
operations in Argentina, Chile, Colombia, Ecuador and Peru.
BBVA's Coello cautioned that America Movil's tender offer
for Telint limits potential gains the company's stock might
receive from an estimate-beating quarterly report.
The following table shows the analysts' average estimates
for Telint, which is expected to report on Thursday, Feb. 11.
===============================================================
2009 2008 PERCENTAGE
OCT - DEC OCT - DEC CHANGE
---------------------------------------------------------------
Revenue 26.316 bln 19.472 bln +35.15 pct
EBITDA* 6.358 bln 4.326 bln +46.97 pct
Operating profit 3.440 bln 1.999 bln +72.10 pct
Net Profit 1.858 bln 1.252 bln +48.40 pct
===============================================================
* Earnings before interest, taxes, depreciation and
amortization
($1 = 13.10 at end of December)
(Reporting by Noel Randewich; editing by John Wallace)