Chilean telecoms group Entel has booked consolidated net earnings of CLP4.4 billion (USD6.2 million) for the three months ended 30 June 2019, reversing a net loss of CLP23.6 billion in Q2 2018, with the company attributing the improvement to higher operating income and lower tax costs. Total revenue for the period grew by 4% year-on-year to CLP485.4 billion, and tax costs dropped by 91% from CLP10.6 billion to CLP928 million. EBITDA grew by 46% over the same period from CLP94.2 billion to CLP137.7 billion, although Entel notes that this is part due to its adoption of the IFRS 16 accounting standard. Excluding this change, EBITDA would have risen by 24% to CLP116.9 billion.
In its domestic market, Entel reported a 3% drop in turnover y-o-y to CLO338.2 billion, on the back of flat mobile subscriptions and a drop in mobile termination rates (MTRs) in January 2019. Efficiency improvements, however, combined with subscriber and turnover growth from its fixed and Digital and IT divisions, led to a 12% increase in EBITDA to CLP123.9 billion (4% to CLP 115.3 billion excluding IFRS 16). Entel counted a total of 9.29 million mobile subscribers at 30 June 2019, including 4.99 million 4G users.
Elsewhere, its Peruvian subsidiary continued to see growth, recording a 15% y-o-y increase in turnover to USD215.9 million, whilst EBITDA reached USD18.5 million compared to a loss of USD26.9 million in Q2 2018. The cellco’s subscriber base grew to 8.08 million from 7.35 million a year earlier, but was down q-o-q from 8.16 million at end-March 2019.