Second Quarter 2012 Results - Entel

Second Quarter 2012 ResultsAugust 6, 2012EBITDA margin in 2Q12 was 39%, lower than the 44% posted in 2Q11. Operating income in thequarter totaled Ch$ 58.8 billion, declining 11% when compared to 2Q11 figures, mainly due toincreased mobile equipment depreciation associated with higher penetration of high-endhandsets (smartphones) along with the postpaid customer base expansion.For the first half 2012, EBITDA increased 5%, while Operating Income declined 5%. EBITDAmargin reached 40%, a decrease from the 45% reported in the same period 2011.Financial Expenses ResultsNet Financing Cost and OthersNet Financial ExpensesForeign Exchange Fluctuation & Readjustment2Q12 2Q11 % Var. 1Q12 6M12 6M11 % Var(5.524) (5.551) 0% (5.519) (11.043) (8.145) -36%(2.345) (1.623) -44% (2.282) (4.627) (2.883) -60%(3.178) (3.928) 19% (3.238) (6.416) (5.262) -22%Net Financing Costs and Others in 2Q12 totaled a Ch$ 5.5 billion loss, flat when compared to2Q11. This was attributable to lower price level restatements due to lower inflation, offset byincreased net interest expenses, in-line with lower interest income driven by lower average cashinvested, coupled with higher interest expenses due to increased Libor rate.Net IncomeNet Income in the period was Ch$ 42.9 billion, a reduction when compared to the Ch$ 51.4billion reported in 2Q11, impacted by lower operating results and a higher effective tax rate.For the first half 2012, Net Income declined 8%, reaching Ch$ 95.4 billion compared to 2011.6