Snapshot: Peru's telecoms market

Telefónica (Movistar) was Peru’s top mobile company in revenue terms from January to September 2022, generating 5.36bn soles (US$1.42bn), up 3% year-on-year and holding 36.7% of the market, according to latest data by regulator Osiptel.

Second player Claro (América Móvil) generated 4.84bn soles, up 6.3%, gaining 33.1% market share. With 12.33mn users versus 12.38mn, Claro practically closed the gap with Movistar, each holding 30% of the market.

Entel’s revenues grew 4.4% to 2.98bn soles, followed by Viettel with 4.1% and 1.08bn soles.

DirecTV’s revenues fell 0.8% to 330mn soles and Americatel's 15.1% to 38mn soles.

Claro invested 690mn soles during the period, up 25.5%, followed by Telefónica with 291mn soles, down 34.9%. And even though Entel reduced investments by 34.4%, it still spent 317mn soles. Viettel increased investment by 36% to 180mn soles.

DirecTV boosted investments by 69.7%, spending 28mn soles. Argentine group Werthein recently acquired a DirectTV stake.

FINANCIAL PERFORMANCE

According to Osiptel’s report, Telefónica reduced operating expenses mainly due to lower personnel restructuring expenses. Its Ebitda margin was 18.9% compared to 12.8%.

Claro’s opex rose 11.3% and Ebitda was 25.7% down from 30.6%, but still remaining profitable.

Entel’s operating expenses increased 5.6% but Ebitda rose 18.9%. “The company continued to present negative financial results, due to its higher financial expenses; although, at better levels than those registered in the same period of the previous year,” Osiptel said.

Viettel’s operational and financial profitability improved, reaching the highest Ebitda margin in the market, 40.4%.

THE MARKET

Revenues from the main telcos grew 4.3%, mainly due to a 9.2% expansion of mobile services, accounting for 47% of market revenues, or 6.9bn soles, according to Osiptel.

Equipment sellers registered the second highest growth, as revenues increased 1.7% to 3.28bn soles, for a 22.4% share.

Fixed internet increased by 3.1% to 1.74bn soles, helped by a 5.1% increase in connections to 3.22mn.

Previously, Osiptel registered highest growth among new fiber operators. Wi-Net consolidated its position, capturing 7.9% of the market, up 4.6 percentage points.