Entel profits drop 96.2% on operating, finance costs

6 Aug 2015

Chilean telco Entel has registered a 96.2% slump in net profit, as increases in operational and financial costs and taxes wiped out a 7.3% increase in turnover for the three month period ended 30 June 2015. The operator reported revenue of CLP436.76 billion (USD639.8 million) in Q2 2015, with EBITDA of CLP88.68 billion – down from CLP102.46 billion in Q2 2014 – and an EBITDA margin of 20% (25% in Q2 2014). Operational costs increased by 14.0% year-on-year to CLP415.17 billion, while financing expenses rose by 49.9% to CLP29.10 billion. In its domestic market, Entel claimed 9.896 million mobile subscribers, down from 10.167 million twelve months earlier, although ARPU increased by CLP400 over the same period to CLP8,700, as the cellco continued to convert post-paid users to mobile data plans. 71% of Entel’s contract customers were on data plans at end-June 2015 compared to 60% a year previously. Entel’s fixed line services – ‘Entel Hogar’ – counted 326,000 revenue generating units (RGUs), up from 302,000 in Q1 2015 and 225,000 in Q2 2014.

Meanwhile, Entel’s recently rebranded Peruvian mobile service provider has seen a slowdown in subscriber growth, booking 2.000 million wireless users at end-June, compared to 1.960 million in March, 1.738 million in December 2014 and 1.480 million in September 2014. In its statement, the Chilean group noted that Entel Peru was on track and benefited from changes to number portability (NP) rules in H2 2014, although subscriber growth was negatively impacted by the migration and disconnection of iDEN users: Entel’s iDEN user base more than halved in the year to end-June 2015, falling from 929,000 in Q2 2014 to 435,000.

Chile, Peru,Entel Chile,

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