Red is the new black: CTC posts 2002 results

28 Jan 2003

Chilean incumbent Telefónica CTC Chile [NYSE: CTC] has published fourth quarter and full-year 2002 financials, reporting an annual net loss of CLP17.7 billion (USD24 million), compared with CLP4.2 billion profit in 2001. The bulk of the loss was generated by a CLP15.2 billion restructuring charge in the fourth quarter, which also involved 1,100 job cuts, but the company also took a CLP7.57 billion hit as a result of a fall in value of its Terra Lycos ISP subsidiary. EBITDA for the year was down 1.4% to CLP391.5 million on revenues of CLP863 billion, a decline of 6.2%; turnover fell by 12.5% year-on-year in the October-December period alone. Fixed telephony contributed CLP381 billion, or 44.2% of the total, down 7.6% on 2001, while turnover from long-distance services – including domestic and international long-distance traffic carried by 188 Telefónica Mundo and Globus 120, as well as rental charges paid by alternative telcos – represented 8.7% of the total with CLP74.7 million. CTC fared better in the mobile sector, with full-year revenues increasing by 12.4% to CLP206.9 million, on the back of strong subscriber growth; the company ended the year with 1.85 million mobile customers, an increase of 17.8% over twelve months. Corporate communications witnessed the greatest growth, with turnover up 19.2% to CLP86.2 million, or 10% of the company’s total.