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 B2B connectivity and innovation for financial sustainability over the next four to five years.

• Sustained market leadership in mobile, with a five-point market share gain since 2020 and a premium ARPU 45% above the industry, supported by low churn and high NPS.

• Ambitious growth targets in Peru: aiming to increase mobile revenue share by 3–5 points, reach 28–30% EBITDA margin, and capture 15–20% of the home fiber market.

• Digital transformation is a core pillar, with the launch of Entel Digital to drive B2B and B2C solutions, targeting 10% of group revenue and double-digit EBITDA margins.

• Sustainability and social inclusion are integrated into the business model, with targeted programs for elderly digital inclusion and a focus on ESG impacts.

Financial performance and guidance

• Consolidated revenue grew 4.6% LTM, with 20 million customers and a 30.7% EBITDA margin; Peru now represents 33% of sales and 30% of EBITDA.

• Efficiency program (Entel Plus Reloaded) targets $80–$120 million in annual run-rate savings, with $40 million expected in 2024 and full impact from 2025.

• CapEx intensity is expected to peak near 19.7% of revenue in 2024, then decline to 18.5–19% by 2027, returning to pre-5G/fiber expansion levels.

• Free cash flow remains sound, with debt reduction ongoing and a stable dividend yield of 7.5%; the goal is to reach a 10% annual yield through continued investment and efficiency.

• Risk management includes active hedging against exchange rate volatility and improved credit risk analytics to mitigate bad debt, especially in Peru.

Technology, innovation, and operational excellence

• Advanced digital architecture, cloud migration, and SaaS adoption are enabling greater agility and IT development across business units.

• AI initiatives include 155 identified use cases, with 31 in pilot or implementation, expected to deliver $3–$5 million in benefits by end-2024, mainly in customer service and productivity.

• Exclusive partnership with Starlink to extend coverage to remote areas, targeting two million users by end-2025 and differentiating the service offering.

• Operational excellence is driven by a culture focused on customer experience, talent retention, and continuous transformation, with a strong workplace NPS and industry-leading employee satisfaction.

• Strategic use of partnerships and a scalable digital portfolio are key to expanding in IoT, cloud, and managed services, with double-digit growth in emerging digital businesses.