Entel, Chile’s second largest wireless provider by subscribers, has reported a 36.1% year-on-year drop in fourth quarter net profits. The telco recorded revenues of CLP333.4 billion (USD667.23 million) for Q4 2011, up from CLP300.9 billion twelve months earlier, but increased spending saw profit fall to CLP30.8 billion, compared to CLP48.2 billion in the year-ago period. Net income for the twelve months ended 31 December 2011 was CLP180.8 billion, having grown by 4.5% from CLP173.0 billion the previous year. Earnings before interest, tax, depreciation and amortisation (EBITDA) dipped slightly y-o-y, falling 0.3% to CLP115.2 billion.
As previously reported by CommsUpdate, Entel recently failed to acquire local rival, Grupo GTD. Conditions imposed by the competition regulator on the takeover proved unacceptable to Grupo GTD’s majority shareholder, who subsequently withdrew his support, and the deal promptly collapsed.