Entel Q2 Profit Soars 39% to US$27 Million on Peru Mobile Boom
Telecom: Santiago
Key Facts
—Profit. Entel’s second-quarter 2026 net profit rose 39.4% to Ch$26 billion (about US$27 million).
—Half-year. First-half profit climbed about 29% to Ch$53.66 billion (about US$56 million).
—Revenue. Q2 consolidated revenue rose 8% to Ch$781 billion (about US$814 million), up 7.1% in Chile and 9.3% in Peru.
—EBITDA. Q2 EBITDA increased 8.4% to Ch$220 billion (about US$229 million).
—Drivers. Growth was led by postpaid mobile customers in Chile and Peru and by fibre expansion; Peru added roughly 770,000 postpaid users in 12 months.
Entel’s Q2 profit rose 39.4% to Ch$26 billion (about US$27 million), as the Chilean telecom’s mobile and fibre businesses lifted revenue across its home market and Peru.
Entel’s Profit Climbs 39.4%
Entel, Chile’s largest telecommunications company, reported second-quarter 2026 net profit of Ch$26 billion (about US$27 million), a 39.4% increase from the same period a year earlier, according to Diario Financiero.
The result extended a run of profit growth for the operator, which had posted a 20.7% rise in the first quarter. Over the first half, profit climbed about 29% to Ch$53.66 billion (about US$56 million).
Entel attributed the gains to growth in mobile-service revenue and equipment sales, alongside the continued expansion of its fibre network.
For a foreign reader, it helps to understand that Entel is not a state-owned incumbent but a publicly traded company that competes against other large regional players. Its performance is often read as a bellwether for consumer spending and infrastructure investment across Chile’s broader economy.
Mobile and Fibre Drive the Top Line
Consolidated second-quarter revenue rose 8% to Ch$781 billion (about US$814 million), with the mobile business the main engine. EBITDA increased 8.4% to Ch$220 billion (about US$229 million).
In Chile, revenue grew 7.1%, helped by more postpaid customers and by equipment sales tied to promotional offers and financing plans. Fibre-to-the-home continued to add subscribers in a competitive market.
The mix matters: postpaid and fibre customers tend to spend more and churn less than prepaid users, giving Entel a more stable, recurring revenue base as it invests in network upgrades.
EBITDA, a widely watched measure of operating profitability, strips out interest, taxes, depreciation and amortisation. When EBITDA grows faster than revenue, it often signals that a company is gaining efficiency even as it expands.
Peru Becomes a Key Growth Engine
Entel’s Peruvian operation was the standout, with revenue up 9.3% in the quarter, outpacing the 7.1% gain at home. Over the past 12 months, the unit added roughly 770,000 postpaid customers.
Peru has become central to Entel’s expansion story, offering a larger and less saturated market than Chile. The shift toward postpaid there mirrors the strategy driving margins in its home market.
Diversifying across two Andean markets also cushions Entel against country-specific swings in competition, regulation or currency.
In plain terms, a postpaid customer is one who is billed after using the service, usually under a contract, as opposed to a prepaid customer who pays upfront for credit. Postpaid relationships typically bring higher monthly revenue and longer loyalty, which is why operators prize them.
Half-Year Picture and Margins
For the first six months, Entel’s consolidated revenue rose about 7.5% and EBITDA increased 9.3%, with the EBITDA margin improving to roughly 27.8% from 27.4% a year earlier.
The margin gain, though modest, points to operating leverage: revenue is growing faster than costs as the customer base shifts toward higher-value plans.
Currency movements and tax provisions have swung Entel’s bottom line between quarters in the past, so management’s focus on EBITDA offers a cleaner read on the underlying business.
Operating leverage works like this: once a network is built, adding a new subscriber costs relatively little, so each extra peso of revenue contributes more heavily to profit. That dynamic is especially visible in fibre, where the heavy upfront investment is already sunk.
What’s Next for Entel
Entel is betting on continued migration to postpaid mobile plans and on fibre growth in Chile, paired with subscriber gains in Peru, to sustain earnings momentum through the rest of 2026.
The main risks are familiar to the sector: heavy price competition, the capital cost of network expansion and exposure to exchange-rate shifts between the Chilean and Peruvian markets.
For investors, the second-quarter numbers suggest a company converting revenue growth into faster profit growth, the balance operators need as they fund the shift to fibre and 5G.
What remains to be seen is whether Peru’s postpaid momentum can be maintained at the same pace, and how much room exists to lift margins further in Chile without triggering a price war. Another open question is how Entel will finance the next phase of its fibre build-out while keeping debt levels comfortable.
More: Chile news in English, every day from The Rio Times.
Frequently Asked Questions
How much did Entel’s profit rise in Q2 2026?
Net profit rose 39.4% to Ch$26 billion (about US$27 million), extending first-quarter growth of 20.7%.
How did Entel perform over the first half of 2026?
First-half profit climbed about 29% to Ch$53.66 billion (about US$56 million), with revenue up around 7.5% and EBITDA up 9.3%.
What is driving Entel’s growth?
Growth in postpaid mobile customers in Chile and Peru, rising equipment sales and fibre expansion, with the Peruvian unit adding about 770,000 postpaid users in a year.
Sources
Sources: Diario Financiero; La Tercera; Gestión; TeleSemana.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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