Empresa Nacional de Telecomunicaciones (ENTEL) Q2 2025 earnings summary

Executive summary

• Maintained leadership in Chile's 5G market with 47.8%–48% share and over 3.2 million customers, recognized as Chile's top telco for the third consecutive year.

• Advanced 5G standalone and Starlink direct-to-cell initiatives in Chile and Peru, with successful tests and pending regulatory approval.

• Launched digital B2B business in Peru, targeting 10% of local revenue by 2028.

• S&P reaffirmed BBB-/Stable rating, citing solid market position and stable leverage outlook.

• Consolidated revenue for Q2 2025 reached Ch$723.0 billion, up 6.3% year-over-year, driven by strong mobile and fiber growth in both Chile and Peru.

Financial highlights

• Consolidated revenues grew 6.3% year-over-year, led by mobile and fixed/fiber expansion in Chile and Peru.

• EBITDA rose 1.4%–3% year-over-year, with margin at 28.0%, but margin declined due to fiber expansion.

• Net income for the quarter was Ch$18.6–19 billion, down 57.9% year-over-year due to prior-year tax effects but more stable due to hedging.

• Free cash flow from operations turned positive at CLP $59.2 billion for 6M25.

• Dividend yield annualized at 6.0% for 2025.

Outlook and guidance

• CapEx/revenue target for 2025 remains at 19%, with a cautious approach to fiber deployment and focus on network leadership.

• Ongoing debt refinancing to maintain investment grade and sound financial metrics.

• Expect continued margin pressure from fiber until 2026, with EBITDA margin recovery anticipated post-2026.

• Digital B2B business in Peru expected to reach 10% of local revenue by 2028.