Entel revenues reached CLP $377,646 during the first quarter of the year

Revenues of Empresa Nacional de Telecomunicaciones ("Entel") increased 11% in the first three months of this year.  Based on the consolidated information presented to the Chilean Securities and Insurance Supervisor (Superintendencia de Valores y Seguros - SVS), total revenues of the company reached CLP $377,646 millions, a bigger result compared with the CLP $ 340,321 millions of the last year. This situation could be explained by the good results in mobile and data services (including IT).

In the same period of time, total mobile customers increased 4% to 10,132,899, compared to the first quarter 2012. Post-paid subscriber base (voice and MBB) grew 9%, representing 32% of the total customer base; while prepaid (voice and MBB) increased 2%. Mobile broadband subscribers (MBB) reached 1,040,994 (including M2M data cards), increasing 2% compared to 1Q12, principally growing in M2M data cards.

In the first quarter of the year, Entel's EBITDA totalized CLP $124.1 billion, 12% lower than the first three months of 2012. Operating income reached CLP $ 52.8 billion, down 22% from a year ago. Operating income Proforma was Ch$ 71.8 billion, a 21% yoy increase.

Net income declined 29% to Ch$ 37.2 billion compared to Entel's performace of 1Q12, as a result of lower operating income caused by new accounting treatment of handsets as well as higher financial expenses from higher outstanding debt during the period.

In the statemente relased today, the company explained that consumers segment revenue grew 11% when compared to 1Q12. The growth was boosted by mobile services (+13%), as a result of customer base expansion in high-end segments (+5%), coupled with high data service adoption. Significant progress was made in monthly voice services associated with higher traffic in postpaid clients, together with VAS (including MBB) revenue, showing sustained growth in Internet mobile.

Furthermore, equipment sales increased (+36%), in line with the application of a new revenue accounting treatment, effective October 1, 2012, for postpaid handsets (including MBB). During the first quarter, the mobile customer base increased 2% to reach a total of 8,850,989 clients as of March 31, 2013, driven principally by high value clients (+9%). MBB declined (-8%), associated with higher smartphone penetration and service disconnection of prepaidcustomers.

Fixed line services revenue in the Segment increased. Principally, driven by “Entel Hogar” residential services launched during 3Q12. As of March 31 2013, residential services reached 75 thousand RGU’s . In addition, LD revenue expanded due to higher ILD traffic and tariffs.