Empresa Nacional de Telecomunicaciones (ENTEL) Q2 2026 earnings summary

Executive summary

• Revenues and EBITDA grew 8% and 8.4% year-over-year in Q2 2026, with net income up 39.4% to CLP 25.9 billion, driven by mobile and fiber growth in both Chile and Peru, despite competitive markets.

• Maintained leadership in Chile's mobile market and strengthened position in Peru, with both markets contributing to profitability and margin expansion.

• Mobile customer base reached 20.25 million, with strong postpaid growth offsetting prepaid declines.

• Sustainability achievements include continued inclusion in Dow Jones Best in Class Chile and MILA indices, and top ESG rankings.

• Disciplined financial management reduced leverage and gross debt, with net financial debt/EBITDA improving to 1.67x.

Financial highlights

• Consolidated revenues reached CLP 781 billion (+8.0% YoY); EBITDA grew 8.4% to CLP 220 billion; net income rose 39.4% to CLP 25.9 billion.

• EBITDA margin expanded to 28.1%; EBIT margin improved to 8.8%; EPS up 39.4% YoY.

• CAPEX for H1 2026 was 14% of revenues, with full-year guidance at 16%-17%.

• Net financial debt/EBITDA improved to 1.67x, with gross financial debt reduced by Ch$365.1 billion YoY.

• Positive free cash flow from operations, though net cash flow was modestly negative due to working capital and hedge settlements.

Outlook and guidance

• CapEx guidance for 2026 is 16%-17% of revenues, with similar or slightly lower levels expected in 2027.

• Fiber rollout in Peru set to begin in late 2026 following a partnership agreement.

• Breakeven in Chile's fixed segment expected by early 2028 as scale improves.

• Cash flow expected to remain balanced or slightly positive, with strong liquidity and no surprises in net debt/EBITDA ratios.

• Strategic focus on maintaining mobile leadership in Chile, scaling Peru operations, and expanding FTTH market share.