Telefonica Chile S.A. Series A

—

What it is

Telefónica Chile S.A. and its subsidiaries provide telecommunications services in Chile, covering fixed telephony (voice and broadband), pay television, enterprise communications and data, and other services. It sells all of these under the Movistar brand, which was launched nationally in October 2009.

The company operates through Fixed Telephony, Communications and Company Data, Television Services, and Others segments. Its infrastructure roots are among the oldest in Latin America: shares trade on the Bolsa de Comercio de Santiago under the ticker “CTC,” and the company is headquartered on Avenida Providencia 111 in Santiago.

Who owns it

At 31 December 2024, Telefónica Chile S.A.’s capital comprised 1,305,263,872 ordinary shares, all with voting rights and fully subscribed. One shareholder, Telefónica Móviles Chile S.A., held approximately 99.39% of all shares, with the remaining fraction spread across 8,364 minority shareholders.

That near-total concentration is why the stock, though still listed, has had no effective stock-market trading presence, as defined by CMF rules, since at least 2023.

Then, in a landmark deal, the entire chain of ownership changed. Telefónica Spain concluded 35 years of history in Chile by completing the sale of its Chilean assets to a consortium of French holding NJJ Holding and Luxembourg-based Millicom for a fixed price of USD 1.215 billion.

Under the agreed structure, NJJ — led by French billionaire Xavier Niel — controls 51% of the operation, while Millicom holds 49%. An earn-out of up to USD 150 million is conditional on certain events in the Chilean telecoms market.

Who runs it

Following the February 2026 ownership change, Telefónica Chile has a new chief executive: Carolina Vallejo Londoño, an executive with a track record inside Millicom who previously served as CEO of Tigo in El Salvador. She replaced Juan Vicente Martín Fontelles, who had also served as board chair and had been brought in specifically to manage the sale process.

Under the company’s statutes, the board consists of five members serving three-year terms, renewable indefinitely. The CFO is not disclosed in available sources.

The money, in plain words

In 2024, the company took in CLP 924.8 billion (about USD 1.005 billion) in sales — a revenue fall of 4.0% from the CLP 963.2 billion (US$1.0 bn) recorded in 2023 (our calculation from audited accounts). Part of the drop reflects one-off revenues recorded in 2024 from inventory sales tied to the shut-down of the copper fixed-line network; stripping those out, the underlying revenue decline was a more modest 1.1% year-on-year.

The company kept none of those sales as profit — it lost money. The net loss attributable to controlling-interest shareholders reached CLP 63.9 billion (about USD 69.4 million), a net margin of –6.9% (our calculation).

A significant driver was a goodwill impairment charge of CLP 21.6 billion (US$23 mn) recorded at 31 December 2024. Total assets stood at CLP 1.753 trillion (about USD 1.905 billion) at year-end 2024.

What it is doing now

The defining event is the change of ownership completed on 10 February 2026. The transaction excluded the wholesale fibre-optic network ON*NET Fibra, which Telefónica transferred to a related entity — Inversiones Telefónica Internacional Holding SpA — before the sale closed.

The new owners inherit a business that has run at a loss for several years and faces a heavy network modernisation bill.

Millicom CEO Marcelo Benítez, after acquiring the Chilean operations, stated that his primary goal is to reverse the losses before anything else. The company has been raising investment in its mobile network — 4G and 5G — by 35.4% year-on-year through September 2025, while simultaneously accelerating depreciation of legacy copper assets.

What to watch

• Path to profitability: the new owners have promised to turn the red ink to black in 2026; whether they can do so — against continued revenue pressure — is the central test.
• Copper shutdown legacy: the migration from copper to fibre has already distorted revenue comparisons; how cleanly the transition completes will clarify the true underlying trend.
• Millicom buyout option: Millicom holds an option to acquire NJJ’s 51% stake between the fifth and sixth year after closing, priced at Millicom’s market multiples less a 10% discount, payable in Millicom shares. If exercised, it would make Millicom the sole owner.
• Regulatory concession transfers: spectrum licences and other concessions still need to be formally transferred to the new owners, a process that remains ongoing.

—

This is news, not investment advice.