Entel Net Profits Up 38%
Chilean fixed line and mobile operator Entel posted a net profit of 100bn pesos (US$183mn) in 2006, up 38% compared to 72.5bn pesos in 2005, the company said in a statement.
Revenues reached 809bn pesos, up 3.4% compared to 782bn pesos in 2005.
"The improved results were largely due to an increase in our mobile telephony client base, plus growth in the sales of data transmission and IT services. The 11% increase in local telephony also contributed, boosted by a higher number of lines and the penetration of our new NGN service," Entel CFO Felipe Ureta said in the earnings report.
The mobile unit, Entel PCS, closed 2006 with over 4.1 million subscribers, with revenues growing 19% to 558bn pesos compared to 468bn pesos in 2005.
The IT services division saw sales rise 22% to 56.3bn pesos compared to 46.3bn pesos in 2005.
Entel's results were above market expectations, Santander Investments analyst Francisco Errandonea told BNamericas.
"In the fourth quarter we expected the entrance of competitor Claro to have some type of effect on mobile telephony, but that did not occur," Errandonea said.
Claro, which was formerly CDMA operator Smartcom, was acquired by Mexico's América Móvil in 2005. AMX migrated it to GSM and relaunched it under the Claro brand in August.
"The company's Ebitda is growing at 23%, which for a company with such large competitors is really positive. Entel's margins and market share have not been affected [after Claro entered the Chilean market]," he added.
Errandonea said the company's recently launched products over the new next generation network (NGN) and HSDPA 3.5G network are not products that appeal to the wider public and so did not make an impact on overall sales. Nonetheless they are a strong complement to Entel's portfolio.
Of Entel's international branches, Americatel Perú's revenues dropped 2% to 17.9bn pesos from 18.3bn pesos in 2005. In mid-2006 Entel sold its share in Americatel's subsidiaries in the US, El Salvador, Guatemala and Honduras.
In early 2007, Entel also sold its Americatel branch in Venezuela to Double E Investments."
Posted to the site on 31st January 2007