In front of more than a hundred analysts and investors, and celebrating 60 years in Chile and 10 years in Peru, Entel held a new edition of its Investor Day, where it presented its main strategic lines of growth and key goals for each business area. At the event, held at its offices in Santiago, the company's executive team highlighted its expansion plans, focused on the growth of the mobile business in Peru and the deployment of residential fiber optics in Chile and Peru.
Regarding the mobile business in Peru, Entel expects to increase its revenue share by 3 to 5 points, seeking to reach an EBITDA margin of 28-30% in the next 4 to 5 years. It also announced that it intends to open more than 200 express stores in the country under the franchise model by 2025, in order to increase its market share and strengthen the conversion of prepaid to postpaid users.
Regarding the mobile business in Chile, the company announced its goal of increasing its share of service revenues by 1 to 2 percentage points over the next 4 to 5 years, while maintaining a return on net assets of between 11% and 13%.
In the fiber optic business, the company stated that its goal is to reach a 20%-25% market share in Chile and 15%-20% in Peru by 2028, with an EBITDA margin of 20%-25% in that business. The Chilean operation already has a market share of 10.2% as of the second quarter of 2024. The Peruvian operation is in its final stages before start-up, following approval from the Peruvian regulator.
“This Investor Day was an excellent opportunity to share with the market our goals and growth strategies. We were able to detail the guidelines for each area and our objectives to maintain mobile leadership in Chile and continue to gain scale in Peru. We want to capitalize on the leadership we have because that has a financial reward, that is, better margins and a better return for our investors with a solid financial position. Thus, we see the mobile business in Peru as a key growth engine, together with the fiber home business in Chile and Peru” , said Marcelo Bermúdez, Entel's vice-president of Corporate Finance.
Regarding the situation of the mobile market in Chile, Bermúdez stated that “Entel has been able to capture more than half of the customers who have switched companies during the first half of 2024, which shows that our value proposition is also a solid business and growth strategy, especially in a highly competitive industry like the Chilean one”.
In addition, Bermúdez emphasized that “at Entel, financial discipline has been key. Each line of growth announced has a strategic financial backing that is aligned with our objective of offering exceptional service, maintaining solid indicators, protecting our investment grade and shareholder remuneration”.
In this regard, the company presented progress on its cost efficiency plan, with which it seeks to position itself in the first quartile of the most efficient telcos globally. This program will enable annual savings of between US$80 and US$120 million through more than 200 initiatives. Entel highlighted its solid financial health and announced the payment of close to US$180 million in debt payments during October. Regarding capital expenditures, the company indicated that this year capex over revenues would close at 19.7%, while by 2027 this indicator would fall to 19%.
The company also highlighted progress in the digital business, with a significant 28% growth in revenues compared to the previous year. The company reaffirmed its commitment to triple the revenues of this unit, with the goal of achieving an EBITDA-CAPEX margin of 12%.
In the area of sustainability, Entel highlighted some of the initiatives that place the company as a global benchmark. In the latest S&P Corporate Sustainability Assessment (CSA), the company scored 80 points, representing a significant improvement over the previous year. In addition, the GSMA highlighted the process of shutting down Entel's 2G network as a benchmark initiative worldwide.
Finally, in line with its transition from telco to techco, the company revealed that it is currently piloting 31 technology initiatives, focused on areas such as customer service, credit risk assessment and sales, through the integration of artificial intelligence.
About Entel
Entel is a company with 60 years of experience, leader in technology and telecommunications with operations in Chile and Peru, countries where it has more than 20 million mobile subscribers.
The company offers mobile and fixed connectivity services, as well as a wide range of IT and digital services for individuals, businesses and large corporations, in addition to wholesale and call center services. In each of its lines of business, products and services, it delivers simple, close and surprising experiences, supported by a robust, state-of-the-art infrastructure and a strong brand image and customer service.
24 Oct, 2024
In front of more than a hundred analysts and investors, and celebrating 60 years in Chile and 10 years in Peru, Entel held a new edition of its Investor Day, where it presented its main strategic lines of growth and key goals for each business area. At the event, held at its offices in Santiago, the company's executive team highlighted its expansion plans, focused on the growth of the mobile business in Peru and the deployment of residential fiber optics in Chile and Peru.
Regarding the mobile business in Peru, Entel expects to increase its revenue share by 3 to 5 points, seeking to reach an EBITDA margin of 28-30% in the next 4 to 5 years. It also announced that it intends to open more than 200 express stores in the country under the franchise model by 2025, in order to increase its market share and strengthen the conversion of prepaid to postpaid users.
Regarding the mobile business in Chile, the company announced its goal of increasing its share of service revenues by 1 to 2 percentage points over the next 4 to 5 years, while maintaining a return on net assets of between 11% and 13%.
In the fiber optic business, the company stated that its goal is to reach a 20%-25% market share in Chile and 15%-20% in Peru by 2028, with an EBITDA margin of 20%-25% in that business. The Chilean operation already has a market share of 10.2% as of the second quarter of 2024. The Peruvian operation is in its final stages before start-up, following approval from the Peruvian regulator.
“This Investor Day was an excellent opportunity to share with the market our goals and growth strategies. We were able to detail the guidelines for each area and our objectives to maintain mobile leadership in Chile and continue to gain scale in Peru. We want to capitalize on the leadership we have because that has a financial reward, that is, better margins and a better return for our investors with a solid financial position. Thus, we see the mobile business in Peru as a key growth engine, together with the fiber home business in Chile and Peru” , said Marcelo Bermúdez, Entel's vice-president of Corporate Finance.
Regarding the situation of the mobile market in Chile, Bermúdez stated that “Entel has been able to capture more than half of the customers who have switched companies during the first half of 2024, which shows that our value proposition is also a solid business and growth strategy, especially in a highly competitive industry like the Chilean one”.
In addition, Bermúdez emphasized that “at Entel, financial discipline has been key. Each line of growth announced has a strategic financial backing that is aligned with our objective of offering exceptional service, maintaining solid indicators, protecting our investment grade and shareholder remuneration”.
In this regard, the company presented progress on its cost efficiency plan, with which it seeks to position itself in the first quartile of the most efficient telcos globally. This program will enable annual savings of between US$80 and US$120 million through more than 200 initiatives. Entel highlighted its solid financial health and announced the payment of close to US$180 million in debt payments during October. Regarding capital expenditures, the company indicated that this year capex over revenues would close at 19.7%, while by 2027 this indicator would fall to 19%.
The company also highlighted progress in the digital business, with a significant 28% growth in revenues compared to the previous year. The company reaffirmed its commitment to triple the revenues of this unit, with the goal of achieving an EBITDA-CAPEX margin of 12%.
In the area of sustainability, Entel highlighted some of the initiatives that place the company as a global benchmark. In the latest S&P Corporate Sustainability Assessment (CSA), the company scored 80 points, representing a significant improvement over the previous year. In addition, the GSMA highlighted the process of shutting down Entel's 2G network as a benchmark initiative worldwide.
Finally, in line with its transition from telco to techco, the company revealed that it is currently piloting 31 technology initiatives, focused on areas such as customer service, credit risk assessment and sales, through the integration of artificial intelligence.
About Entel
Entel is a company with 60 years of experience, leader in technology and telecommunications with operations in Chile and Peru, countries where it has more than 20 million mobile subscribers.
The company offers mobile and fixed connectivity services, as well as a wide range of IT and digital services for individuals, businesses and large corporations, in addition to wholesale and call center services. In each of its lines of business, products and services, it delivers simple, close and surprising experiences, supported by a robust, state-of-the-art infrastructure and a strong brand image and customer service.
In front of more than a hundred analysts and investors, and celebrating 60 years in Chile and 10 years in Peru, Entel held a new edition of its Investor Day, where it presented its main strategic lines of growth and key goals for each business area. At the event, held at its offices in Santiago, the company's executive team highlighted its expansion plans, focused on the growth of the mobile business in Peru and the deployment of residential fiber optics in Chile and Peru.
Regarding the mobile business in Peru, Entel expects to increase its revenue share by 3 to 5 points, seeking to reach an EBITDA margin of 28-30% in the next 4 to 5 years. It also announced that it intends to open more than 200 express stores in the country under the franchise model by 2025, in order to increase its market share and strengthen the conversion of prepaid to postpaid users.
Regarding the mobile business in Chile, the company announced its goal of increasing its share of service revenues by 1 to 2 percentage points over the next 4 to 5 years, while maintaining a return on net assets of between 11% and 13%.
In the fiber optic business, the company stated that its goal is to reach a 20%-25% market share in Chile and 15%-20% in Peru by 2028, with an EBITDA margin of 20%-25% in that business. The Chilean operation already has a market share of 10.2% as of the second quarter of 2024. The Peruvian operation is in its final stages before start-up, following approval from the Peruvian regulator.
“This Investor Day was an excellent opportunity to share with the market our goals and growth strategies. We were able to detail the guidelines for each area and our objectives to maintain mobile leadership in Chile and continue to gain scale in Peru. We want to capitalize on the leadership we have because that has a financial reward, that is, better margins and a better return for our investors with a solid financial position. Thus, we see the mobile business in Peru as a key growth engine, together with the fiber home business in Chile and Peru” , said Marcelo Bermúdez, Entel's vice-president of Corporate Finance.
Regarding the situation of the mobile market in Chile, Bermúdez stated that “Entel has been able to capture more than half of the customers who have switched companies during the first half of 2024, which shows that our value proposition is also a solid business and growth strategy, especially in a highly competitive industry like the Chilean one”.
In addition, Bermúdez emphasized that “at Entel, financial discipline has been key. Each line of growth announced has a strategic financial backing that is aligned with our objective of offering exceptional service, maintaining solid indicators, protecting our investment grade and shareholder remuneration”.
In this regard, the company presented progress on its cost efficiency plan, with which it seeks to position itself in the first quartile of the most efficient telcos globally. This program will enable annual savings of between US$80 and US$120 million through more than 200 initiatives. Entel highlighted its solid financial health and announced the payment of close to US$180 million in debt payments during October. Regarding capital expenditures, the company indicated that this year capex over revenues would close at 19.7%, while by 2027 this indicator would fall to 19%.
The company also highlighted progress in the digital business, with a significant 28% growth in revenues compared to the previous year. The company reaffirmed its commitment to triple the revenues of this unit, with the goal of achieving an EBITDA-CAPEX margin of 12%.
In the area of sustainability, Entel highlighted some of the initiatives that place the company as a global benchmark. In the latest S&P Corporate Sustainability Assessment (CSA), the company scored 80 points, representing a significant improvement over the previous year. In addition, the GSMA highlighted the process of shutting down Entel's 2G network as a benchmark initiative worldwide.
Finally, in line with its transition from telco to techco, the company revealed that it is currently piloting 31 technology initiatives, focused on areas such as customer service, credit risk assessment and sales, through the integration of artificial intelligence.
About Entel
Entel is a company with 60 years of experience, leader in technology and telecommunications with operations in Chile and Peru, countries where it has more than 20 million mobile subscribers.
The company offers mobile and fixed connectivity services, as well as a wide range of IT and digital services for individuals, businesses and large corporations, in addition to wholesale and call center services. In each of its lines of business, products and services, it delivers simple, close and surprising experiences, supported by a robust, state-of-the-art infrastructure and a strong brand image and customer service.