Asset sales push Entel to CLP154bn annual profit

摘要

Chilean telecoms group Entel has reported total revenues of CLP738.8 billion (US$936 million) for the three months ended 31 December 2019, an increase of 46% year-on-year, whilst turnover for the full year grew by 14% to CLP2.20 trillion. EBITDA for the quarter was up 175% compared to Q4 2018 to CLP347.6 billion and, despite increases in net financing costs (up 65% to CLP33.2 billion) and taxes (CLP48.5 billion), net profit leapt to CLP154.4 billion from CLP5.3 billion a year earlier. Similarly, EBITDA for the full year grew by 80% to CLP770.4 billion, leading to a net profit of CLP154.2 billion, compared to a loss of CLP23.6 billion in 2018. Entel attributed the improvement primarily to the sale of tower assets in Chile and Peru and call center facilities in Chile - jointly accounting fora CLP207.6 billion improvement in revenue - along with organic revenue growth in Peru. Entel notes that in December 2019 it signed a sale and leaseback agreement with American Tower Company (ATC) for 3,242 non-strategic towers across Chile and Peru and closed the first tranche of the transaction with the transfer of 2,364 sites (1,275 in Chile and 1,089 in Peru).