Financial Statements - Entel

EMPRESA NACIONAL DE TELECOMUNICACIONES S.A. & SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor Transalation Purposes OnlyPROFITABILITY AND VALUE PER SHARE 12/31/2012 12/31/2011Profit per Share (Annualized) (CLP$) 707.30 764.26Dividend Yield (%) 5.61 6.12(Dividends for Last Twelve Months / Share Price at Close )Book Value 3,441.54 3,268.50(Equity / Number of Shares) (CLP$)Market Value (According to Share Price) (CLP$) 9,899.30 9,719.30EBITDA (Income before taxes, interest, adjustments and exchange rate fluctuations,depreciations, amortizations, and extraordinary items).For the purposes of this analysis, it should be noted that at the close of the financialyear ended December 31, 2012, various changes occurred in the terms andconditions of contracts in the mobile business. These changes introduced therequirement to adopt a new procedure for recording equipment provided as part ofpostpaid services from October 1, 2012, as explained in Note 22 to the FinancialStatements. It should be noted that this new accounting procedure has had no effecton the company’s cash flow or value.In line with the above, the effect of this new accounting procedure on pre-taxprofits as of December 31, 2012, was a greater net allocation against profits for thefourth quarter of the year of Th. CLP $17,119,341 (Th. CLP $13,695,473 after tax).The following tables show the accounts of the income statement affected by theapplication of the new accounting procedure.- 73 -