Entel reported profits of Ch$44 billion at the end of the second quarter of the year. This figure represents an increase of 97% over the same period of the previous year, as reported by the telecommunications and technology company to the Financial Market Commission.
The positive performance of the period was mainly driven by the growth of the Peruvian operation, where EBITDA grew 14% organically, discounting seasonal effects. Additionally, an 11.2% increase in the sale of mobile equipment in Chile, a 2.4% increase in mobile service revenues in Peru, and a favorable exchange rate effect contributed to the result.
On the other hand, the company's revenues also grew, reaching Ch$700 billion, an increase of 11.5% compared to the same period of the previous year. However, consolidated EBITDA recorded a slight decline of 2.6%, mainly due to lower performance in the corporate segment.
"We recorded very positive performance in almost all areas: profit growth, revenues, number of mobile and fixed subscribers. We have good numbers in both Chile and Peru. This is the result of an operation of excellence that is able to offer a value proposition that allows us to move forward, despite the high competition in the market", said the Vice President of Corporate Finance, Marcelo Bermúdez.
Furthermore, the company reported that the Peruvian operation recorded an EBITDA of USD 66 million in the period, thus completing its fifth consecutive quarter with an increase in EBITDA. As a result, EBITDA recorded an organic increase of 14%, after deducting the adjustment for bad debts in the first quarter of 2023.
In addition, the company reported solid growth in its new fiber optic home business line in Chile. Since the start of its commercial deployment in March, following the agreement with OnNet, this segment has experienced an 11.2% increase in the second quarter, reaching a total of 438,000 connected customers.
"This quarter has been particularly relevant for us for two main reasons. First, the solid performance of our operation in Peru, where we have managed to consolidate our position as the second-largest operator in the market in only 10 years. Second, we are very pleased with the rapid growth of our fiber optic business in Chile. This is a reflection that our value proposition makes sense in this segment, again, despite the high competition that this market also has", said Bermúdez.
Finally, the IFRS16-adjusted debt/EBITDA ratio stood at 2.57x, experiencing a slight increase compared to the previous quarter when it was 2.38x. This increase is explained by the dividend payment made in April and the payment of financial obligations. Despite this adjustment, the company's financial strength remains stable and healthy, as confirmed by the 'BBB-' investment grade rating granted by S&P Global Ratings.
Corporate reputation and sustainability
The impact of Entel's work has been recognized in various measurements. According to the recent Merco Responsabilidad ESG Chile 2023-2024 report, which analyzed 44,024 surveys conducted nationwide, the technology and telecommunications company once again ranked first in its industry in terms of ethical behavior, transparency, good governance, and employee responsibility. It also became the Latin American leader in its category in S&P Global's prestigious sustainability yearbook, "The Sustainability Yearbook 2024," where more than 9,400 companies were evaluated, and only 759 were considered worldwide.
9 Ago, 2024
Entel reported profits of Ch$44 billion at the end of the second quarter of the year. This figure represents an increase of 97% over the same period of the previous year, as reported by the telecommunications and technology company to the Financial Market Commission.
The positive performance of the period was mainly driven by the growth of the Peruvian operation, where EBITDA grew 14% organically, discounting seasonal effects. Additionally, an 11.2% increase in the sale of mobile equipment in Chile, a 2.4% increase in mobile service revenues in Peru, and a favorable exchange rate effect contributed to the result.
On the other hand, the company's revenues also grew, reaching Ch$700 billion, an increase of 11.5% compared to the same period of the previous year. However, consolidated EBITDA recorded a slight decline of 2.6%, mainly due to lower performance in the corporate segment.
"We recorded very positive performance in almost all areas: profit growth, revenues, number of mobile and fixed subscribers. We have good numbers in both Chile and Peru. This is the result of an operation of excellence that is able to offer a value proposition that allows us to move forward, despite the high competition in the market", said the Vice President of Corporate Finance, Marcelo Bermúdez.
Furthermore, the company reported that the Peruvian operation recorded an EBITDA of USD 66 million in the period, thus completing its fifth consecutive quarter with an increase in EBITDA. As a result, EBITDA recorded an organic increase of 14%, after deducting the adjustment for bad debts in the first quarter of 2023.
In addition, the company reported solid growth in its new fiber optic home business line in Chile. Since the start of its commercial deployment in March, following the agreement with OnNet, this segment has experienced an 11.2% increase in the second quarter, reaching a total of 438,000 connected customers.
"This quarter has been particularly relevant for us for two main reasons. First, the solid performance of our operation in Peru, where we have managed to consolidate our position as the second-largest operator in the market in only 10 years. Second, we are very pleased with the rapid growth of our fiber optic business in Chile. This is a reflection that our value proposition makes sense in this segment, again, despite the high competition that this market also has", said Bermúdez.
Finally, the IFRS16-adjusted debt/EBITDA ratio stood at 2.57x, experiencing a slight increase compared to the previous quarter when it was 2.38x. This increase is explained by the dividend payment made in April and the payment of financial obligations. Despite this adjustment, the company's financial strength remains stable and healthy, as confirmed by the 'BBB-' investment grade rating granted by S&P Global Ratings.
Corporate reputation and sustainability
The impact of Entel's work has been recognized in various measurements. According to the recent Merco Responsabilidad ESG Chile 2023-2024 report, which analyzed 44,024 surveys conducted nationwide, the technology and telecommunications company once again ranked first in its industry in terms of ethical behavior, transparency, good governance, and employee responsibility. It also became the Latin American leader in its category in S&P Global's prestigious sustainability yearbook, "The Sustainability Yearbook 2024," where more than 9,400 companies were evaluated, and only 759 were considered worldwide.
Entel reported profits of Ch$44 billion at the end of the second quarter of the year. This figure represents an increase of 97% over the same period of the previous year, as reported by the telecommunications and technology company to the Financial Market Commission.
The positive performance of the period was mainly driven by the growth of the Peruvian operation, where EBITDA grew 14% organically, discounting seasonal effects. Additionally, an 11.2% increase in the sale of mobile equipment in Chile, a 2.4% increase in mobile service revenues in Peru, and a favorable exchange rate effect contributed to the result.
On the other hand, the company's revenues also grew, reaching Ch$700 billion, an increase of 11.5% compared to the same period of the previous year. However, consolidated EBITDA recorded a slight decline of 2.6%, mainly due to lower performance in the corporate segment.
"We recorded very positive performance in almost all areas: profit growth, revenues, number of mobile and fixed subscribers. We have good numbers in both Chile and Peru. This is the result of an operation of excellence that is able to offer a value proposition that allows us to move forward, despite the high competition in the market", said the Vice President of Corporate Finance, Marcelo Bermúdez.
Furthermore, the company reported that the Peruvian operation recorded an EBITDA of USD 66 million in the period, thus completing its fifth consecutive quarter with an increase in EBITDA. As a result, EBITDA recorded an organic increase of 14%, after deducting the adjustment for bad debts in the first quarter of 2023.
In addition, the company reported solid growth in its new fiber optic home business line in Chile. Since the start of its commercial deployment in March, following the agreement with OnNet, this segment has experienced an 11.2% increase in the second quarter, reaching a total of 438,000 connected customers.
"This quarter has been particularly relevant for us for two main reasons. First, the solid performance of our operation in Peru, where we have managed to consolidate our position as the second-largest operator in the market in only 10 years. Second, we are very pleased with the rapid growth of our fiber optic business in Chile. This is a reflection that our value proposition makes sense in this segment, again, despite the high competition that this market also has", said Bermúdez.
Finally, the IFRS16-adjusted debt/EBITDA ratio stood at 2.57x, experiencing a slight increase compared to the previous quarter when it was 2.38x. This increase is explained by the dividend payment made in April and the payment of financial obligations. Despite this adjustment, the company's financial strength remains stable and healthy, as confirmed by the 'BBB-' investment grade rating granted by S&P Global Ratings.
Corporate reputation and sustainability
The impact of Entel's work has been recognized in various measurements. According to the recent Merco Responsabilidad ESG Chile 2023-2024 report, which analyzed 44,024 surveys conducted nationwide, the technology and telecommunications company once again ranked first in its industry in terms of ethical behavior, transparency, good governance, and employee responsibility. It also became the Latin American leader in its category in S&P Global's prestigious sustainability yearbook, "The Sustainability Yearbook 2024," where more than 9,400 companies were evaluated, and only 759 were considered worldwide.