The growth in mobile subscribers contributed to the financial performance of Chilean operator Empresa Nacional de Telecomunicaciones S.A Entel.
The company reported that its mobile customer base increased 24% in 2011 to 9,347,434 subscribers at the end of the year. The carrier’s postpaid subscriber base (voice and mobile broadband) grew 17%, representing 30% of the total customer base, while prepaid (voice and mobile broadband) expanded 26%. Mobile broadband subscribers numbered 945,429 (including M2M data cards) at the end of 2011, a 72% increase compared with the end of 2010.
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Chile’s second largest telecom operator noted that it closed 2011 with total revenues up 14% compared to 2010, totaling $2.4 billion. Net income for the year totaled $348.16 million, a 5% increase compared to 2010. The company also reported an earnings before interest, taxes and depreciation margin of 42% in 2011 and a 79% drop in the net financing costs.
Entel CFO Felipe Ureta said the carrier captured an important part of industry growth in 2011, noting in particular the increase in mobile customers and mobile broadband users.
“Considering the quarter’s robust activity, revenues increased across all business segments, primarily driven by the mobile business (+11%), supported by customer base growth and the spread of mobile data. In addition, Chile wireline reported solid growth,” Ureta said.
For the year, mobile services accounted for the biggest part of Entel’s total revenues ($1.9 billion), a 15% increase compared with 2010. Data services (IT included) accounted for the next largest segment with revenues of $180.4 million in 2011. Entel also reported that its wireless market share increased from 37% at the end of 2010 to 40% at the end of 2011.
Entel also noted that the Secretary of Telecommunications (Subtel) has began the tendering process for three blocks of 40 megahertz spectrum licenses in the 2.6 GHz band targeting 4G network deployments.
Entel recently obtained a $200 million international credit facility from the Bank of Tokyo-Mitsubishi and Scotiabank. Proceeds were used to anticipate the payment of the first installment of a syndicated loan in an equal amount due in 2012.
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