Q2 2026 Empresa Nacional de Telecomunicaciones SA Earnings Call Transcript
Key Points
- Consolidated revenues and EBITDA grew 8% and 8.4% year-on-year, with net income up 39% to CLP26 billion.
- Postpaid mobile and fiber broadband continue to drive growth, with postpaid subscribers up 4.9% in Chile and 15% in Peru.
- Strategic partnership with Starlink makes Entel the first in Latin America to offer direct-to-cell satellite connectivity, attracting 10% of new port-in customers.
- Fiber customer base grew 24% year-on-year, with churn reduced by 68 basis points due to convergence and improved customer experience.
- Strong cash position expected by year-end, with CapEx guidance of 16-17% of revenues and stable net debt-to-EBITDA ratios.
- Prepaid subscriber base continues to decline, down 16% in Chile and 18% in Peru, due to regulatory changes and SIM cleanup.
- Fixed-line business in Chile still reports negative EBITDA, with breakeven not expected until early 2028.
- Handset sales saw a 9% quarter-on-quarter contraction due to increased chipset costs, impacting market volumes.
- Working capital use increased significantly to CLP99 billion, driven by CLP54 billion in additional handset inventories.
- Intense competition in both Chile and Peru persists, with aggressive discounting and market share battles among operators.
Good morning and welcome to Entel's second quarter 2026 results conference call. Thank you for all of you for joining us today, August 24, 2026. I'm Paola Raventos, Investor Relations Officer; and joining me today is Marcelo Hermudez, our Entel CFO. Please note that this event is being recorded. (Operator Instructions)We delivered a solid second quarter 2026, with revenues and EBITDA growing 8% and 8.4% respectively.
And net income reached CLP26 billion, up 39% year on year despite a highly competitive and dynamic environment in Chile and Peru. EBITDA marketing reached 28.1% and earnings per share came at CLP315 in the last 12 months, excluding extraordinary gains. Post-paid voice and fiber broadband continue to be the engines of our growth, supported by the differentiated customer-centric and value proposition. Taking the first half as a whole, revenues increased 7.4%, EBITDA grew 9.3% and net income 29% up.
One of the most distinctive milestones on the period is our leadership in direct-to-cell
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