Entel books 2% dip in revenue as lockdown impacts sales

5 Aug 2020

Chilean telecoms group Entel has reported a 2% year-on-year dip in total revenue for Q2 2020, recording turnover of CLP476.1 billion (USD623 million) for the three months ended 30 June 2020. The operator noted that lockdown restrictions imposed to control the COVID-19 pandemic had disrupted activity, in particular in Peru, where sales activity was halted until mid-May and regulatory authorities barred the disconnection of customers until mid-June. Entel added that handset revenue had fallen by around 46%, but this was partially offset by higher service revenue and the sale of 167 tower sites to American Tower Corporation (ATC) for CLP14.8 billion. Quarterly EBITDA was up 19% y-o-y to CLP163.6 billion, as a result of organic growth and the aforementioned tower sale. Consequently, net income rose from CLP4.4 billion to CLP22.5 billion, with Entel adding that the figure was bolstered by higher tax credits resulting from the impact of foreign exchange movements on its taxable investments in foreign subsidiaries.

In operational terms, the company continued to see a decline in pre-paid mobile accounts in Chile, partially offset by growth in the post-paid segment. As such, the company claimed a total of 8.775 million mobile subscribers in its domestic market, of which 4.631 million were post-paid, compared to 9.290 million and 4.046 million a year earlier. ARPU was up y-o-y from CLP6,767 to CLP7,168, whilst its 4G user base grew to 5.533 million (from 4.986 million in Q2 2019) and monthly average data use per user grew to 13.97GB from 10.35GB a year earlier. In Peru, meanwhile, Entel’s mobile user base fell from 8.340 million to 8.000 million quarter-on-quarter, with the company recording 388,000 net pre-paid disconnections. Mobile ARPU was down q-o-q and y-o-y, dipping USD4.91 from USD4.95 in Q2 2019 and USD5.06 in Q1 2020.

Chile, Peru, Entel Chile, Entel Peru