Chilean fixed line incumbent Telefonica Chile saw net profits fall 4.48% in the third quarter of 2008, mainly due to higher operating costs, the company said in a statement. Profit for the three months ended 30 September 2008 was CLP5.16 billion (USD9.4 million) compared to CLP5.41 billion a year ago. Operating costs increased 7.9% in the quarter to CLP101 billion due to a 4.2% increase in electricity costs compared with the same period last year. EBITDA fell by 13.8% to CLP66.3 billion from CLP76.9 billion in 3Q07. Revenues fell 1.9% in real terms to CLP168 billion from CLP171 billion, mainly due to a 14% decline in fixed line revenues, a 1.7% drop in revenues from minute plans and a 7.9% drop in long distance revenue. This was partially compensated by a 5.6% growth in broadband, 33.4% growth in TV and a 2% rise in corporate communications income.
Telefonica Chile will hold a shareholders’ meeting on 28 October to vote on changes to a company by-law that limits any single shareholder from owning more than 45% of stock. If approved, the change would pave the way for Telefonica Chile’s parent company, Spanish telco Telefonica to buy up the 55% of shares it does not already own.