Empresa Nacional de Telecomunicaciones (ENTEL) Q3 2024 earnings summary

Executive summary

• Consolidated revenue for Q3 2024 reached Ch$673.4 billion, up 9.1% year-over-year, driven by strong mobile (+9.3%) and fixed (+12.4%) revenue, with FTTH revenue in Chile up 41.6% year-over-year.

• Net income was Ch$41.2 billion, a turnaround from a Ch$12 billion loss in the same quarter last year.

• Mobile customer base reached 20.45 million, with postpaid net additions (+771k) and prepaid disconnections (-678k) year-over-year.

• Fiber homes passed tripled year-over-year to 3.7 million, with 347k homes connected (+42.3% YoY).

• New tariff rates implemented from July 30, 2024, to offset inflation and stabilize ARPU.

Financial highlights

• Consolidated EBITDA for Q3 2024 was Ch$194.7 billion (+2.4% YoY), with an EBITDA margin of 28.9%.

• Operating income (EBIT) was Ch$52.3 billion, down 13.6% year-over-year.

• Net financing costs and others increased 18.9% to Ch$28.8 billion, mainly due to higher inflation and financial expenses.

• CAPEX for the quarter was Ch$109.3 billion, focused on fiber connections in Chile.

• Net debt stood at Ch$1,352.9 billion, with a net debt/EBITDA ratio of 2.59x.

Outlook and guidance

• Fiber connectivity expected to continue growing, supported by the Onnet agreement and mass commercial offering of FTTH services.

• New tariff rates and cost efficiencies are expected to help offset inflationary pressures and support ARPU stabilization.