New markets help boost Entel revenues by 17%

31 Jan 2014

Chile’s Entel Group has registered a 17% year-on-year increase in revenues for Q4 2013, booking turnover of CLP461.8 billion (USD842.5 million). Entel’s earnings were bolstered by a 6% annual increase in revenues from its domestic mobile services and a 23% expansion in turnover from its data and IT services. Entel’s purchase of Peruvian cellco Nextel del Peru brought in new revenues of CLP34.0 billion – although financing costs more than doubled y-o-y to CLP15.9 billion as a result of the takeover – whilst the group’s other Peruvian unit, Americatel, booked a 22% increase in revenues to CLP5.8 billion, derived from integrated services for the enterprise segment and higher turnover from its wholesale business and higher traffic. Meanwhile, Entel’s nascent TV offerings brought in revenues of CLP3.9 billion, compared to CLP220 million in Q4 2012, with the service reaching 80,000 revenue generating units (RGUs). EBITDA for the three-month period was CLP107.4 billion, down 5% compared to the year-ago period. A reduction in depreciation costs, however, led to an increase in operating income (EBIT) to CLP49.2 billion (+46%). Net profits for the quarter expanded by 31% to CLP30.8 billion.

In its domestic market, Entel saw an increase 2% y-o-y in mobile subscribers to 9.044 million subscribers, including 996,000 mobile broadband (MBB) customers connecting via USB modems and mobile routers, although this latter figure was down from 1.043 million a year earlier due to increasing customer preference for smartphone and tablet devices. Mobile ARPU in Chile also increased, edging up to CLP9,500 per month from CLP9,200 in Q4 2012.