Ezentis shifts focus to Latin America, helped by $64M Telefónica Peru contract


A recent U.S.$64 million (€48 million)  contract with Telefónica in Peru may be a good sign for Eventis. The Spanish company, which focuses on technology, telecommunications and infrastructure, is looking for growth in Latin America, and in early January, Eventis’ Peruvian arm, Calatel, signed a four-year contract with Telefónica Peru to provide outside services to support its telecommunications business.

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Eventis turned its focus toward gaining ground in the Latin American region after refinancing debt last year to help turn its business around. The company posted a loss of approximately U.S.$1.5 million (€1.1 million) in the first nine months of 2012, compared with a $134 million (€101 million) loss in 2011.

In an open letter, Eventis CEO Manuel García-Durán de Bayo said that currently the company is focused on Latin America, “where demand for its services is high, with a strong balance sheet and all areas of business profitability.”

Ezentis’ strategic plan looks at achieving a turnover of  about U.S.$531 million-$557 million (€400 million-€420 million) in 2015 and an EBITDA of around U.S.$47.8- $53.1 million (€36 million- €40 million) of which 90% is expected to come from outside Spain.

Ezentis public relations officials explained to RCR Wireless News that the company’s strategy is to grow in the four countries where it is already located: Argentina, Peru, Chile and Jamaica, as well as initiate activity in new countries with a focus on Brazil, Colombia and Mexico. Ezentis wants to grow both organically and inorganically in the region.

Ezentis said it plans to invest about U.S.$26.5 million-$31.9 million (€20 million-€24 million) in Latin America with a priority on countries where it wants to begin operating, namely Brazil, Colombia and Mexico, targeting the telecom and energy sectors. According to Ezentis, it will investment in these countries by taking controlling stakes in local companies and self-funding, among other methods. That’s one of the reasons the multimillion-dollar contract with Telefónica is so important. In addition, Ezentis has won an electricity contract worth U.S.$37.2 million (€28 million) in Argentina.

When asked about Ezentis major goals, company officials said it aims to get more involved in the growth of the broadband and mobile markets, aiming to increase its business related to fixed and mobile networks and the deployment of broadband footprint with satellite services.

In the region, Ezentis already has a presence in the telecom and ICT sectors in Chile, Peru, Argentina and Jamaica.

In Argentina, the company plans to grow its current business and enter into new business areas, including telecom (optical fiber deployment and mobile towers), mining (industrial services), technology, energy, and oil and gas.

In Chile, Ezentis is strengthening its focus on the telecom, energy, water management and mining areas, as well as boosting activity in service design; implementation and maintenance of telecommunication and electrical networks for various operators; corporate and managed services to carriers; and services for implementing special security facilities.

Ezentis is also seeking growth through telecom (fiber optic and mobile towers) and new businesses in security, with improved margins. In Peru, the goal is to strengthen activity in the maintenance and installation of fixed and low voltage networks.

The company is the process of starting operations in new countries as well. In Brazil, Ezentis is already in initial negotiations with local electricity and telecom companies. In Colombia and Mexico, the idea is also to seek local partners and grow both organically and inorganically.

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