Telefonica Chile sees third quarter net profit slide

26 Oct 2007

Chile’s largest telco by lines in service, Telefonica Chile, has posted a year-on-year 62.5% drop in third quarter net profit to CLP4.95 billion (USD9.9 billion). Revenues remained flat at CLP156 billion. According to BNamericas, CTC attributes the declining profits to a 6.2% increase in operating costs coming from the policy of migrating customers at internet unit Terra to ADSL, and from content purchase agreements to support Telefonica’s TV and triple play business lines. The company ended the quarter with 607,000 ADSL accounts, up 31% year-on-year, which according to TeleGeography’s GlobalComms database translates to a market share of close to 50%. Telephony lines in service fell 3% year-on-year to 2.18 million.

Chile, Telefonica Moviles Chile (Movistar)