Entel books 3% revenue growth amidst ‘challenging’ conditions in domestic market

9 May 2017

Chilean telecoms group Entel has reported total turnover of CLP477 billion (USD705 million) for the first three months of 2017 – an increase of 3% compared to the same period of 2016 – fuelled by a 29% increase in revenue from its Peruvian division (32% in the local currency), which offset lacklustre performance in its domestic market. EBITDA for the period under review was up 1% year-on-year to CLP110 billion although EBITDA margin dropped by one percentage point to 23%. Net profit, meanwhile, was CLP14 billion, down from CLP24 billion in Q1 2016. Entel attributed the decline to a 71% decrease in tax credits, related to the decline in Chilean peso/US dollar exchange rate which affected table investments in foreign subsidiaries.

In its domestic market, Entel booked a 2% y-o-y decline in revenue to CLP378 billion amidst declines in mobile subscriptions and ARPU. Describing the Chilean mobile sector as ‘challenging’ due to the high levels of competition and slow economy, the operator registered a 5% decline in its wireless subscriber base to 9.4 million, whilst ARPU dipped from CLP8,604 to CLP8,305. The operator did report growth elsewhere, however, registering 451,000 RGUs related to its ‘Entel Hogar’ residential multi-play services, compared to 396,000 RGUs in March 2016. Entel Peru, meanwhile, reported a mobile subscriber total of 5.1 million at end-March 2017, up from 3.7 million twelve months earlier, although ARPU fell by USD1 over the same period to USD8.8. Consequently, revenue grew from USD123 million to USD162 million.

Chile, Peru, Entel Chile, Entel Peru