Expansion in Peru steadies Entel topline

30 Jan 2015

Chilean telecoms group Entel has booked annual revenue growth of just 1%, as the negative impact of falling mobile termination rates (MTRs) in its domestic market were offset by expansion in Peru. Turnover for the year reached CLP1.668 trillion (USD2.658 billion), with revenues from its Chilean mobile division tumbling 10% year-on-year to CLP1.151 trillion, whilst revenue from its Entel Peru unit increased by 231% to CLP151.729 billion. Entel’s other major segments also saw steady growth – including data and IT services (13% y-o-y), local telephony (17%), internet (15%) and TV services (116%) – with the exception of the long distance space, which booked a 16% fall in turnover for the year. Meanwhile, EBITDA was down 21% compared to 2013, due largely to the launch of the Entel Peru brand in October 2014, with an EBITDA margin of 22% (down six percentage points). Consequently, net profit for the year fell 62% to CLP56.471 billion, from CLP146.965 billion a year earlier.

In terms of subscribers, Chile’s domestic operation counted 10.102 million mobile users at the end of 2014, down from 10.429 million at 31 December 2013 and 10.110 million at end-September 2014. On a more positive note, however, the percentage of post-paid users on its network reached 66%, up eleven percentage points from a year earlier. Revenue generating units (RGUs) for Entel’s fixed line ‘Entel Hogar’ business totalled 276,000 at the end of the year, expanding from 206,000 at the end of 2013. In Peru, meanwhile, mobile subscriptions leapt from 1.480 million at end-September 2014 to 1.738 million three months later, driven largely by the rebranding operation in Q4 2014.

Chile, Peru, Americatel Peru (Entel Empresas), Entel Chile, Entel Peru