Empresa Nacional de Telecomunicaciones (ENTEL) Q4 2024 earnings summary

Executive summary

• Maintained leadership in Chile's mobile market and consolidated second place in Peru, with strong growth in postpaid and fiber segments, expanding the mobile base by over 904,000 YoY and tripling fiber homes passed to 3.7 million.

• Achieved solid financial performance in 2024, with consolidated revenue up 7.4% YoY to CLP 2,765 billion and EBITDA up 3.4% to CLP 789 billion, despite inflation and FX pressures.

• Recognized for management, governance, and sustainability, including top rankings in Institutional Investor, Merco Empresas Chile, Dow Jones Sustainability Index, and Conecta Latam awards.

• Continued investment in network quality, digital transformation, and launched neutral fiber optic networks and 5G expansion in Chile.

• Paid off 2013 bond in full, totaling $246 million, and sustained a dividend policy distributing up to 80% of prior year profits.

Financial highlights

• Consolidated revenues reached CLP 2,765 billion (+7.4% YoY), EBITDA at CLP 789 billion (+3.4% YoY), and net profit at CLP 67.7 billion for 2024.

• EBITDA margin at 28.5%; CAPEX at CLP 477 billion (17.3% of revenues); dividend yield at 9.7%; EV/EBITDA at 3.9x.

• Net profit decreased 23.9% YoY, mainly due to prior year extraordinary fiber sale and FX impacts.

• Net financial debt/EBITDA at 2.53x; market cap close to CLP 900 billion.

• Positive free cash flow from operations, excluding fiber impact.

Outlook and guidance

• Expect increased CapEx in 2025 and 2026 for 5G and fiber expansion, with a decline in 2027.

• Efficiency program targets USD 80–120 million OpEx/CapEx savings in 2025, building on USD 63 million achieved in 2024.

• Full FX hedging of Peru exposure from January 2025 should stabilize bottom line.

• Focus on sustainable innovations, digital transformation, and further EBITDA growth.

• Continued investment in network quality and fiber expansion in both Chile and Peru.