Entel losses grow to CLP23.6bn in 2Q18

9 Aug 2018

Chilean telecoms group Entel reported total revenue of CLP468.54 billion (USD727.4 million) for the three months ended 30 June 2018, a decrease of 2.7% year-on-year. The decline was fuelled by falling mobile revenues in Chile, though continuing strong performance in Peru offset the dip somewhat. Chilean mobile revenue fell by 4.9% y-o-y to CLP250.03 billion as the impact of continuing price erosion lowered ARPUs and undermined the positive effect of subscriber growth and improvements in the company’s customer mix on the cellco’s top line. EBITDA for the group dipped by 4% y-o-y to CLP94.22 billion, whilst EBIT fell by 44% to CLP10.48 billion, with Entel attributing the fall to the aforementioned lower margins in Chile and a one-time charge of CLP7.7 billion in its domestic market related to selling, general and administrative expenses. Meanwhile, net losses for the period reached CLP23.64 billion compared to CLP2.64 billion a year earlier. Entel noted that the fall in net income was the result of the lower operating results as well as higher taxes, due to a higher corporate tax rate in Chile and CLP/USD exchange rate movements affecting taxable investments in foreign subsidiaries.

In operational terms, Entel reported a total of 9.33 million mobile subscribers in Chile (8.88 million in Q2 2017) including 4.173 million 4G customers, up from 2.514 million a year earlier. The company also counted some 470,801 ‘Entel Hogar’ subscriptions, 27,778 of which were fibre-to-the-home (FTTH) users. In Peru, meanwhile, Entel counted 7.35 million mobile and fixed-wireless subscriptions, up from 5.85 million twelve months earlier.

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