Entel Soars to New Heights: 97% Profit Surge in Q2 2024

In a remarkable display of financial prowess, Entel, the renowned telecommunications and technology company in Chile, has reported a staggering 97% increase in profits for the second quarter of 2024. This impressive feat, announced to the Financial Market Commission, underscores the company’s unwavering commitment to growth and operational excellence.

The positive performance during the period was fueled by a confluence of factors, chief among them being the robust growth in the postpaid subscriber base, both in Chile (+4.5%) and Peru (+5.8%). Additionally, the company’s relentless focus on cost-control measures across all areas of operation has yielded significant efficiencies, further bolstering the bottom line.

Delving deeper into the numbers, the second-quarter revenues for Entel’s Chilean operations represent the highest growth in mobile subscribers over the past twelve months. Complementing this impressive subscriber growth, the company also witnessed a 28.3% surge in mobile device and terminal sales, as well as a 4.2% increase in fixed-line services.

Peruvian Operations Shine Bright

Entel’s success story extends beyond its Chilean operations, as the company’s Peruvian arm has also delivered remarkable results. In the second quarter of 2024, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in Peru grew by 35%, reaching a record-high margin of 27.5%, marking the fifth consecutive quarter of growth.

This impressive performance in Peru was driven by the aforementioned increase in the postpaid customer base, a 16% rise in mobile service revenues, and the favorable impact of currency exchange rates and cost efficiencies.

Fiber Optic Expansion in Chile

Entel’s success story extends beyond its core mobile operations, as the company has also witnessed a remarkable 30% growth in its new fiber optic home broadband business in Chile during the second quarter. This surge in growth comes on the heels of the company’s commercial deployment agreement with OnNet, which has resulted in a total customer base of 309,000 connected clients.

Consolidated Financial Performance

At the consolidated level, Entel’s revenues experienced a 10.2% increase, reaching $680 billion, compared to the same period in the previous year. However, the company’s consolidated EBITDA growth of 3.5% was impacted by external factors, such as higher foreign exchange rates, inflation, and energy costs, which offset the stronger performance in Chile.

Despite these challenges, Entel’s financial strength remains robust, as evidenced by its debt-to-EBITDA ratio of 2.57x, in line with its investment-grade ‘BBB-‘ rating from S&P Global Ratings. Furthermore, the company’s cumulative performance for the first half of 2024 showcases a 9.3% increase in revenues and a 19.2% surge in EBITDA, reaching $1.345 billion and $387 billion, respectively.

Conclusion

Entel’s remarkable financial results in the second quarter of 2024 are a testament to the company’s unwavering commitment to operational excellence, strategic growth, and cost optimization. With its impressive subscriber growth, diversified revenue streams, and strong financial position, Entel is poised to continue its trajectory of success, solidifying its position as a leading player in the dynamic telecommunications and technology landscape of Chile and Peru.

As Entel celebrates its 60th anniversary this month, this remarkable performance serves as a testament to the company’s ability to adapt, innovate, and thrive in an ever-evolving industry, delivering exceptional value to its customers and shareholders alike.