Chilean telco VTR cuts losses in Q2

Chilean telco VTR managed to improve its revenues and reduce its losses in Q2.

However, in the first six months, the company’s losses rose to 127bn pesos (US$136mn) compared to 52.2bn pesos in the same period last year.

Net losses in the quarter fell 56% compared to Q1 to 39.1bn pesos.

América Móvil, which will increase its stake in the ClaroVTR joint venture to 91%, recently expressed confidence in the financial situation of the Chilean company and stated that it will not need to add more capital.

According to its financial statements published on Friday, VTR believes it has sufficient resources to meet its debt and liquidity needs in the next 12 months. In the case of debt maturing in 2028-29, the company anticipated that it will seek refinancing to extend payment terms.

VTR's revenues in the second quarter grew 1.6% on Q1 but fell 1.3% year-on-year to 108bn pesos. 

An improved marketing plan allowed the telco to reduce fixed video service disconnections by 9% from the same period last year, while postpaid mobile services increased 24% and residential internet subscribers fell 1%, it said.

VTR ended Q2 with 4.57mn households covered by fixed networks and 2.35mn income-generating units. Of these, 1.08mn correspond to broadband services, 866,700 to video subscribers, 403,600 to fixed telephone lines and 452,200 to mobile subscribers.

The company recorded revenues of 93bn pesos from residential fixed services and 9.8bn from residential mobile services.