Jan. 31 (Bloomberg) -- Empresa Nacional de Telecomunicaciones SA fell the most among members of Chile’s benchmark stock index after profit fell more than analysts forecast amid rising competition.
Entel, as Chile’s second-biggest mobile telephone operator is known, lost 1.8 percent to 8,946.4 pesos, the lowest closing price since Aug. 18. Chile’s Ipsa index gained 0.9 percent.
Fourth-quarter net income slumped 36 percent to 30.8 billion pesos ($62.7 million), from 48.2 billion pesos a year ago, according to Bloomberg calculations based on annual results released after the close of trading yesterday. That missed Banco Santander SA’s estimate by 30 percent as increased spending on promotions narrowed profit margins.
“Results were below our estimates and market consensus,” Santander analyst Francisco Errandonea wrote in an e-mailed note. Results reflect “the competitive environment expected for 2012, with higher churn rates and higher costs due to promotions, in line with the start of the implementation of number portability and the entrance of new players,” he said.
--Editors: Glenn Kalinoski, Brendan Walsh
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