UPDATE 2-Mexico's Telmex net profit down, beats forecast

(Adds analysts quote, details on line losses, byline)

By Chris Aspin

MEXICO CITY, July 22 (Reuters) - Mexico's top fixed-line phone operator Telmex (TMX.N)(TELMEXL.MX) posted a 13 percent decline in second quarter net profit on Tuesday as revenue fell amid stiffer competition.

Telmex, controlled by billionaire Carlos Slim, said its April-June net profit was a better-than-expected 6.2 billion pesos ($602 million) versus 7.1 billion pesos in the same three months a year ago.

A Reuters survey of analysts had expected a net profit of 5.911 billion pesos.

Revenue for the former state monopoly declined 6.3 percent to 30.9 billion pesos and core earnings before interest, taxes, depreciation and amortization, known as EBITDA, fell 7.5 percent to 14.4 billion pesos.

Both revenue and EBITDA were lower than expectations.

"It is a normal (report for Telmex). There are slight declines in sales and EBITDA. It is a bit weak," said Martin Lara, an analyst with brokerage Vector.

Valmex analyst Andres Bezanilla said: "It is not the best company around at the moment."

Telmex dominates the fixed-line and long-distance market in Mexico, but has come under pressure in its local markets from an increase in competition.

Telmex said the number of lines in use at the end June fell to 17.7 million, down 3 percent from a year earlier.

Telmex spun off its international operations earlier this year and that company, called Telmex Internacional, will report its second quarter earnings on Wednesday.

Telmex shares closed down 1.19 percent on Tuesday at 12.49 pesos. Its New York traded stock ended off 0.96 percent at $24.77. ($1 = 10.307 pesos at end June) (Additional reporting by Tomas Sarmiento; Editing by Andre Grenon )