Empresa Nacional de Telecomunicaciones (ENTEL) Q1 2025 earnings summary

Executive summary

• Achieved strong first quarter 2025 results with 9% revenue growth and robust customer base expansion in both Chile and Peru, despite a highly competitive environment.

• Added 1,044k postpaid subscribers year-over-year (+8.7%), reinforcing leadership in postpaid across both markets.

• Strategic partnership with Starlink approved, enabling satellite direct-to-cell deployment in H2 2025, and successful SMS pilot completed.

• Recognized for best customer experience and ESG leadership, including top rankings in ISO, S&P, and Merco ESG indices.

• Launched a CLP $618 billion capex plan for 2025, focused on network leadership, fiber expansion in Chile, and growth in Peru.

Financial highlights

• Consolidated revenues grew 9% year-over-year in Q1 2025, driven by both mobile and fixed segments.

• Adjusted EBITDA grew 11% year-over-year, with margin at 28.5% after excluding one-time severance costs.

• Net income reached CLP 23,000 million, a turnaround from a loss in 1Q 2024, attributed to higher mobile revenues and cost efficiencies.

• Positive operating and free cash flow, with improved working capital management and stable capex.

• Dividend of CLP 179 per share paid, yielding 6.8%.

Outlook and guidance

• 2025 capex plan set at CLP $618 billion, prioritizing 5G/4G network, fiber expansion in Chile, and growth in Peru.

• CapEx for 2025 expected to be below initial guidance, revised to around 19% of revenues due to slower fiber deployment.

• Dividend yield target set at 8-10% over the medium term, with policy reaffirmed at up to 80% of distributable net profit.

• Committed to sustaining healthy leverage metrics and investment grade ratings.

• Continued focus on margin sustainability and healthy growth in both markets.