2018 Outlook

As in 2017, a main challenge for Entel will be materializing growth in the Peruvian market amid tougher competition and strong investments to increase subscribers. In Chile, the challenge will be retaining its customer base with the entry of new market competitors and aggressive marketing campaigns. All this would be focused on data segment, where a decline in the prepaid and mobile broadband segments continues. However, we expect a ~1 million increase in consolidated subscribers for 2017 and 2018 and improved results by year-end 2018.

For Sonda, growth perspectives will be driven by potential M&A thus any announcements of such nature will generate upward pressures on the company’s stock, increasing its appeal. This is compounded by new public policies boosting new contracts, such as Brazil with Temer and in Chile with a potential new pro-market government.

Risks

• Tougher competitive conditions, considering high levels of mobile penetration, particularly in the Chilean market where new industry players are reconfiguring the current scenario.
• Slow recovery of local economies could affect evolution of operations in the region.

Peers