Empresa Nacional de Telecomunicaciones (ENTEL) Investor Day 2024 summary

Strategic priorities and business outlook

• Focus on leading the mobile business in Chile, expanding in Peru, and accelerating fiber deployment in both countries, with a strong emphasis on financial sustainability and innovation over the next four to five years.

• Operational efficiency programs, such as Entel Plus Reloaded, target $80–$120 million in annual run-rate savings, mainly from OpEx, with full impact expected from 2025 onward.

• CapEx intensity is expected to remain elevated through 2026 due to 5G and fiber investments, then converge to around 19% of revenue by 2027, similar to 2021 levels.

• The company aims for a dividend yield of 10% annually, supported by stable cash flow and a balanced debt profile.

• Strategic partnerships, such as with Starlink, will expand connectivity, especially in remote areas, and support growth in both mobile and fixed segments.

Financial performance and guidance

• Consolidated revenue reached nearly $2.6 billion CLP, up 4.6% year-over-year, with EBITDA margin stable around 30%.

• Peru now represents 33% of consolidated sales and nearly 30% of EBITDA, with a margin of 26.2% and a target to approach 30%.

• Free cash flow remains sound, with sufficient liquidity to cover CapEx for the next two years and ongoing debt reduction.

• The efficiency plan is expected to deliver $40 million in savings by year-end, with a run-rate impact of $50–$60 million annually from 2025.

• Dividend policy remains at approximately 70% of results, supported by asset sales and strong EBITDA.

Market positioning and growth drivers

• Maintains leadership in Chile’s mobile market, growing market share from 34.8% to 40.8% since 2020, and achieving a 45% ARPU premium over competitors.

• In Peru, now the second-largest mobile operator, with a 19-point revenue share gain over ten years and a focus on profitability and network expansion.

• Fiber business is scaling rapidly, with market share growing by 1% per quarter and a target of 15–20% share in both Chile and Peru.

• Digital business ambitions include reaching 10% of group revenue, with double-digit growth in IoT and cloud services, and a focus on B2B and emerging tech partnerships.

• Customer experience, brand strength, and low churn rates are key differentiators, with NPS and loyalty metrics significantly above industry averages.