Entel swings to net loss in 2Q17 despite strong performance in Peru

9 Aug 2017

Chilean telecoms group Entel has booked a 5% year-on-year increase in second quarter turnover, but flat EBITDA, lower tax credits and an increase in financing costs saw the operator swing to a net loss of CLP2.64 billion (USD4.0 million) from a profit of CLP8.80 billion in Q2 2016. Revenue for the period was CLP481.35 billion, up from CLP459.00 billion, with expansion fuelled by strong performance in the Peruvian mobile market, offsetting declines in Chile’s local and long distance telephony segments. EBITDA was largely unchanged at CLP98.62 billion, but EBIT fell to CLP18.62 billion from CLP23.75 billion a year earlier. Meanwhile, financing costs grew to CLP26.42 billion from CLP24.76 billion and tax credits nearly halved to CLP5.15 billion from CLP9.81 billion.

In Chile, Entel’s mobile operations continued to report subscriber losses, though this was counteracted by an increase in ARPU, leading to flat turnover from the segment. Wireless subscriptions fell from 9.702 million in Q2 2016 to 8.880 million at end-June 2017, though the losses were primarily from its pre-paid user base. Over that period, ARPU increased from CLP8,341 to CLP8,769. In Peru, however, the situation was reversed, with Entel Peru adding more than a million subscribers to its user base – which grew to 5.824 million from 4.184 million – but recording a drop in ARPU from USD9.0 to USD8.0 over the same period.

Chile, Peru,Entel Chile, Entel Peru,

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