Empresa Nacional de Telecomunicaciones SA, Chile’s second-largest mobile telephone operator, rose to a four-week high after reporting first-quarter earnings that surpassed some analyst estimates.
Entel, as the company is also known, advanced 2.5 percent to 9,383.6 pesos at the close of trading in Santiago, the biggest gain since April 23. The Ipsa index rose 0.3 percent.
First-quarter net income was 37.2 billion pesos ($79.1 million) and earnings before interest, taxes, depreciation and amortization was 124 billion pesos, Entel said after the close of trading yesterday. Net income fell from 52.5 billion pesos a year ago as a result of a change in the accounting method for mobile postpaid handhelds, according to a filing posted on the website of Chile’s securities regulator.
Banco Santander SA had expected Ebitda of 113 billion pesos and profit of 30.1 billion pesos, while Banco de Chile said in a note today that Ebitda was higher than expected, without providing its own estimate.
“We believe results will likely have a positive impact on the stock,” Santander analysts Nicolas Khaliliyeh and Francisco Errandonea wrote in a note today. “Moreover, the stock’s recent weakness due to its acquisition of Nextel Peru should be viewed as a buying opportunity.”
Entel said April 4 that it agreed to buy Nextel Peru for $400 million. The stock has fallen 4.2 percent since then.