Entel 2Q earnings drop 6%

Chilean telco Entel posted a net profit of CLP33.3 billion (USD61.7 million) in the second quarter of 2009, down 6% from CLP35.4 billion in the same quarter a year ago, writes BNamericas citing a company statement. For the first six months of the year earnings were CLP64.5billion, also down 6% from CLP68.4 billion a year ago. Total revenues for the quarter were CLP239 billion, up only 1% compared to CLP236 billion in 2Q08. Sales were impacted by a 45% drop in mobile interconnection rates that came into effect earlier this year. Speaking during a conference call with investors, Entel’s CFO Felipe Ureta said the global economic crisis was responsible for a weaker economic environment, which in turn had impacted results. Nonetheless, he said he expects demand to pick up in the third quarter of the year. ‘Despite the 45% decline in mobile interconnection rates and a weaker domestic economic environment, consolidated revenues for the quarter increased 1%. This result was principally driven by higher revenues in the Chile wireline business, fueled by data and IT services,’ Ureta said. Mobile phone subscribers rose 2% to 5.95 million, representing a 39% market share. Post-paid subscribers increased by 15% to represent 31% of the total customer base, compared to 28% a year earlier.