Empresa Nacional de Telecomunicaciones (ENTEL) Q2 2024 earnings summary

Executive summary

• Celebrated 60 years in Chile and 10 years in Peru, highlighting strong market presence, technological leadership, and brand recognition.

• Achieved robust consolidated performance in Q2 2024, with revenue and net income growth driven by both Chile and Peru.

• Initiated shutdown of the 2G network in Chile, pioneering this process and supporting ESG goals.

• Implemented new tariff rates in July 2024 to offset inflation and stabilize ARPU.

• Recognized for best board, ESG program, investor relations, and as Chile's most valued telco brand.

Financial highlights

• Consolidated revenues grew 10.2% year-over-year to CLP $681 billion for Q2 2024, led by mobile and handset sales.

• EBITDA increased 18.3% year-over-year, mainly driven by Peru; consolidated margin at 29.3% for Q2.

• Net income rose 97.3% year-over-year to CLP $64 billion, aided by lower financial costs and FX gains.

• EBITDA margin slightly below last year due to higher costs and a greater share of lower-margin handset sales.

• Cash flow before financing was negative CLP $190.9 billion, impacted by higher capex and dividends.

Outlook and guidance

• Efficiency plan targets USD 80–120 million in annualized opex/capex savings by 2025, with USD 15 million already captured.

• CapEx to remain near 20% of revenues through 2025, then decline to 18–18.5% as fiber deployment winds down.

• Dividend policy maintained at up to 80% of net profits, with potential for higher extraordinary dividends post-2026.

• Full run-rate impact of efficiency initiatives expected in 2025, with acceleration in 2H 2024.

• Fiber connectivity expected to grow, leveraging Onnet agreement to reach 4.3 million households.