Good morning, everyone, and welcome to Entel's fourth quarter and full year 2025 earnings conference call. I'm Paula Raventós, Investor Relations Officer, and I'm joined today with Marcelo Bermúdez, Entel's CFO.

Please note that this event is being recorded and that all participants will be in listen mode during the company's presentation. At the end of the presentation, we will open a question-and-answers session.

I would like to start regarding the main highlights of the year 2025. We delivered a strong performance in 2025, posting 9.7% increase in revenues and 5.9% increase in consolidated EBITDA, despite operating in a high competitive and dynamic environment in Chile and Peru.

Our ability to anticipate market shifts and move decisively has allowed us to sustain a differentiated, customer-centric value proposition supported by a disciplined and responsible financial management. In Chile, we maintained our position as the undisputed leader across all major mobile metrics that included market share, revenue share, ARPU, network quality, NPS, and brand power.

Despite another challenging year for the industry and regulatory changes, Entel delivered positive results in Chile. While Peru, despite a challenging regulatory and competitive environment, Entel Peru delivered solid performance in 2025.

Leading in network quality and NPS, we consolidate our position as the second largest mobile operator in the market. While other highlights during this year: Entel officially launched the commercial Starlink Direct to Cell service in Chile and Peru, the only two countries in Latin America and the fifth worldwide to activate this technology, supported by a network of more than 650 satellites extending coverage.

Another highlight is that Entel Peru signed a wholesale agreement with Win, gaining access to Peru largest fiber network. This transaction enable us to offer broadband services to an initial footprint of 3.1 million home passes, significantly accelerating our increase in fiber to the home.

Another highlight is that the board of directors at Entel officially appointed Carlos Hurtado as the company's new director, replacing Andrés Echeverría, an industrial civil engineer that holds an MBA from Oxford and with more than 25-year of track record in the global finance and investment sector. Another highlight also is that Moody's Ratings affirmed our long-term issuer rating.

The outlook was changed to stable from negative. Moody's mentioned in their report that this rating reflects Entel's strong market leadership, resilient operation of performance, disciplined financial management, and enhanced liquidity position.

Also, Fitch Ratings affirmed our rating as an investment grade in BBB-, as a robust also model of business. Another highlight is that during 2025, we strengthened our financial position through the execution of a comprehensive financial plan.

This process includes debt payments and amortizations, along with securing new sources of financing that allow us to shorten our average duration in 5.2 years and reduce our rate. Regarding another highlights in ESG advances during 2025, I would like to highlight that Entel secured its position among the 10 best-performing companies in the telecommunications service industry in the S&P Global Corporate Sustainability Assessment, CSA.

We achieved a total score of 82 out of 100, driven by a robust performance in social dimensional and also in corporate governance that underscored the consistent progress in overall sustainability despite the challenging benchmark for the 10th year. Other highlights regarding ESG is that Entel was recognized as the top telecommunications company in Chile, ranking seventh in the Merco Empresas Chile 2025 reputation index.

By climbing two positions, we reaffirmed our leadership and maintained our presence among the top 10 most reputable business in the country. Entel also was award to the Iniciativa Mayor 2025 prize by Sello Mayor for its dedication to improving and customer held by a segment project to become one of the first Chile's population.

The award specifically recognized impactful initiatives such as for senior citizen plan, aimed for enhancing inclusion for this important segment. Also, they award the another award regarding Excelencia Energética for the Reutiliza Chile initiative, while the Energía Circular impacting in a collective of more than 300 disused cellphones in less than two months.

Regarding with the macroeconomic environment where we operate, the economies where we operate have a slow growth. The telco industry also are with modest growth in general, both in Chile and Peru.

Chile and Peru continue to see inflation normalization, that the adjustment has been smoother and more stable in Peru, while Chile has experienced sharper swings over the past few years. Overall, we operate in an industry with modest growth, environmental of stabilization in inflation, moderate GDP recovery, and continue forex volatility.

Now, regarding our performance in and our activity, despite competition, we continue to grow in postpaid mobile and fiber during 2025. In Chile, the total mobile customer reached 10 million customers at the end of 2025, with net additions of 6.3% explained in addition in voice and IoT due to the increasing commercial activity through different sales channels and the commitment to offer the best network quality and customer experience, which has generate a 40% share of net postpaid voice growth in the industry despite this high competitive and new portability regulations that came into effect during 2025.

In prepaid, meanwhile, we have a decrease of 31% due to mainly a database cleanup performed during the current period and also explained by a regulation that came into effect that requires identity verification through biometrics face recognition. While fixed services in Chile grew 5.9% due to the expansion of fiber to the home and OTT TV.

We are growing in fiber in the home in a competitive market by implementing commercial strategies to attract convergent customers, which has allowed us to improve churn. While in Peru, in mobile customer revenues, we reached 10 million customers.

Postpaid customer base expanded 11%. The growth is a result of an effective sales management with a new channel mix focused on in-person sales and supported by onboarding models that ensure greater customer retention.

Prepaid customer base decreased 12%, mainly to the base cleanup also and the decline in wholesale channels restricted by regulation, along with a positive migration of customer to postpaid. I will now turn the call to Marcelo Bermúdez, who will continue with more details of our results.

Please go ahead, Marcelo.

Thank you, Paula. Good morning, everyone.

Paula just mentioned in mobile both in Chile and Peru a significant growth in postpaid, also in fixed relevant growth in Chile, mainly due to convergent customers, commercial strategies, and also a better performance in terms of bad debt and uncollectibles. You can see that is positively impacting our top line.

We grew 9.7% revenue on a consolidated basis during the year, which is very significant as a proof of our successful strategy in terms of capturing growth in the market. As I mentioned, for the year, with more than 7% growth in mobile services, which is very good news.

Just noting that handset revenue coming from the sale of handsets and accessories plus the revenue stream coming from interest related to the finance of those handsets has really make a difference during the year, growing more than 14%. That is a very profitable business segment for the company.

We have been implementing successful strategies to grow healthy in that segment. That is really supporting our revenue base.

On top of that, we can also see clearly that the fixed strategy, mainly the growth we deployed in Chile, allowed us to grow more than 6% during the year, and also a relevant growth in other services, mainly related to wholesale, which is also improving the top line. Same when you see the quarter compared on a year-to-year basis, you still see handsets and postpaid growing significantly, we're very proud of that.

On the right-hand side, just to know that in terms of share on revenues and also in EBITDA margin, Peru is growing. I was just remembering that last year Peru accounted for 30 32%, 33% of revenues; now is already 35%, just supporting the growth of the group as a whole.

Not much significant changes in the share for each country of B2C to B2B. B2B is still very small in Peru, 18%, compared to 35% in Chile.

We expect to grow in that market in Peru, but still the whole of B2C is very relevant, especially in Peru with 82%. In Chile, given the growth of fixed, mobile is decreasing a little bit, but B2C is also very relevant for the whole share of our revenues in Chile.

That hasn't changed in the margin because of the growth in fixed in Chile, and we expect to grow, as I mentioned, in Peru more in the B2B side in the coming years. Good news for the whole picture on top line.

The issue now is to just to try to understand what is going on more on an organic basis in EBITDA and EBITDA margin. You can see on the left-hand side on top of the chart there we put three boxes, gray boxes, with a mobile margin from 2023, '24, and '25.

That is only considering mobile, which is basically mobile service revenue plus handsets revenues are considered. We put aside everything that is related to fixed and digital business.

You can see that if we just look at the, on a consolidated basis, the mobile business, EBITDA margins kind of was very stable during '23 and '24, with a slight decrease in 2025, which is mainly explained by the impact of the agreement we made with SERNAC, which is the local customer service and is related to the price adjustment that roughly it's a figure around $10 million that we have to consider as impacting revenues for the year. This is a one-off impact that affected 2025, and that is roughly 0.3 percentage point that are impacting this mobile margin.

If you put that aside, you would say that in the last 3 years, mobile margins on a consolidated had remained kind of stable. Given that we are expanding in fixed, also we are still trying to grow profitably in digital business, what really those two main areas are dragging our margin, our EBITDA margin down.

We know, and we have expressed that in previous meetings, that is something that we expect to be transitory. We expect already in 2020 this is 2-year impacts, 2026 and 2027, continue to grow in Chile with fiber.

We will also start growing at the very end of 2026 in Peru with the recent agreement with Win in Peru. We will have until the middle of '28, if you consider Peru, of growth in fixed, which is capex involved with the last-mile connections and another interconnection that we have to include as part of the investment needed to grow in that business, plus the initial, because of the scale, negative impact in EBITDA of that growth period.

We will expect that in Chile the negative drag of EBITDA will end by the end of '27, but we still have Peru. As a whole, we were expecting that normalized situation in middle of 2028, which means positive EBITDA and still more than absorbing any capex related to the growth in fiber.

Digital, it's a different story. We're trying to improve the return in the next 2 years also of the digital area.

We expect that just given some level of guidance in that way, we expect that not only in capex, but also in EBITDA margin, we expect to have a normalized year by 2028. We have 2 years, 2.5 years of intensive capex and dragging of the EBITDA margin because of the growth in those two businesses, which we believe, especially fiber, are strategic to support also our growth and position in the mobile market.

When we consider not only the even the standalone return on fixed is still positive, but we believe that also is if we add the impact on lower churn, for example, in mobile, is very positive. We'll see that in the coming future.

It's worth noting that at least the mobile top line is growing, and also the margin, if we take out the impact of SERNAC, is still almost in the same level of 2023. The good thing about the SERNAC agreement is that leaves us with a very clear view of how the coming price adjustment will occur.

The processes that were needed to be fixed marginally in the way we deploy those price increases were already adjusted, we expect that if it's needed in the future, we'll have a clean and process of price adjustment without any issues. We'll say that's kind of a good news because the future in terms of price adjustment should not have any impact such as the one we already saw in 2025.

That's related to EBITDA and EBITDA margin. I wanted to spend a little time on that area because I think it's relevant to understand why the margins, the red line you see, are going down in the year and the quarter, what you should expect, and what's the the timing for leveling up those margins and going back to the to normal, I would say.

Going also back to the right-hand side, which is also very relevant news about the net income impact, we, if you remember, we published a was, I think, in in November when we did the transaction, it was published an explanation of the of the size of the impact. It's basically the net profit, although it was a good year and a good quarter, is impacted positively by the deferred taxes related to the transfer of shares that within within the group, within legal entities of the Chilean umbrella, I would say.

That generated deferred taxes that are accounted for as in whole during the year, actually during the third quarter fourth quarter. That, if we take out those impact, and that's depicted in in the chart, our normal net profit after taxes line instead of 191,000 million pesos would have been 108, which is worth noting the same figure as the net profit of the year 2024, also adjusted by extraordinary items.

If you just put the the organic, I would say, is we posted almost the same figure as last year taking extraordinary items, and still a little bit higher than 2023. For the quarter, the if we consider just the the organic net profit of the quarter, it's 11,000 million pesos, which is below the last year figure, which was 32,000 million pesos.

As a whole, the year was very positive and in line with with with the last year. I know the question will come, I'll answer it right away.

Normally the dividend distribution is, although we keep our dividend policy of up to 80% of the last year net income, I'm talking about the year 2025 net income, but normally the policy, and I'm sure what will be solved by the shareholders meeting at some point will consider that the recurrent profits should be taken into account for the dividend distribution. You shouldn't expect a very significant growth or triple in terms of dividends.

We should keep normals in terms of the size of the cash flow similar to other years. That should be the normal situation because, putting aside the extraordinary item, we are kind of in a normal situation compared to 2024.

Just I want to clear that up because that could be misled. Anyways, the shareholders meeting should decide that, but is hopefully what should be considered even in that meeting to be held in April.

Just a quick review of the top line and EBITDA and EBITDA margin separated by Chile and Peru. What we see still growth in terms of revenues in Chile, I mentioned mainly related to mobile service and mainly related to postpaid, which is where we're growing in Chile, also where we're growing in Peru.

Commercial strategies are oriented to high-value customers backed by, and we will see that later, a capex intensity specifically in the areas where we get mainly those customers, but always defending the rest of the market segmentation in every country. Chile and Peru is the same strategy.

Also growing in handset in Peru and Chile, which is very positive. That I mentioned already that we believe that growth is pretty healthy in terms of we are expanding our sales of handset and financing in both countries to existing customers.

Maybe we have some tailwind because of the normal and regular changes in new iPhones and Samsungs and new models that come with higher price tags, those high-value handsets also imply that we are backing and financing the regular change. Christmas season is always relevant in both countries.

This year was very good also in both countries, so that is helping to sustain the revenues and the EBITDA as a whole. I already mentioned the growth especially in fixed in Chile.

Same story in terms of margins: some decrease in EBITDA and EBITDA after leases in Chile, mainly explained by the expansion in fiber. It's also worth noting that in January, actually this January 2026 in Chile, it already started the implementation of the price increase that was communicated at the end of last year, we should expect that impact to be accounted for during 2026.

That's good news also to try to expect to support the EBITDA margins in Chile, while we grow marginally in terms of postpaid during the year. Also, we'll have the impact of a further growth in fixed in Chile, so that will drag a little bit the EBITDA margin, but assure some more EBITDA generation during the year.

In Peru, very good news, is really growing, not only in terms of revenue, but you can see that we have been able to sustain the EBITDA margin above 25%, almost 26%, with a growth of 7% year-on-year on the EBITDA, and the same in the quarter, which is very positive. It's worth noting the growth in the last quarter.

We believe that the going in or the momentum we had in the last quarter will help us to grow in Peru during the next year. The year 2025 in Peru was a very strong competition from Bitel that was growing.

Claro is always a very competitive. Peru is a very competitive market, and we need to have very dynamic commercial strategies, we expect that the next year will be a much positive year.

You never know in Peru, we try to keep up in that very competitive market, same in Chile. That level of competition is also always translated to our share in in mobile services and compared to the market share.

It's very relevant that when service share, service revenue share in mobile accounts for our market share, but reflects the pricing difference and the pricing trend we have compared to ourselves and compared to the competition. We have been able to sustain and grow in our share related to the to the whole revenues of the industry.

The rest of the players have mainly sustained their position, one of them decreasing a little bit, but we have been able to really keep our gap with the rest of industry. In Chile, it's almost 19 percentage points.

In Peru, we are below the market leader, but still at a much lower gap, which is still a significant difference, but can be reached at some point is 15 percentage points. If you compare to the market share, which does not account for for pricing difference, even in that case, the the gap we have with the rest of the industry in Chile is almost 10 percentage points, and in Peru we are much closer from the leader, it's almost seven points.

We need to tackle that in Peru specifically: try to capture more pricing, more revenue of good quality, and try to narrow the gap with the leader in Peru. In Chile, we're keeping the the gap in both measures, and in Peru we have to work on pricing, try to narrow the gap in revenue share.

This is also reflected in the port-out. We have the lowest port-out compared to the rest of the industry, which is the blue line, 0.79 in third quarter, although our gap against the industry narrowed a little bit during the year '25.

That was mainly related to the portability and biometric regulation changes, and so we expect that should really, during 2026, converge to the levels we saw in 2024. That's the picture we have as of now, which is a still very low port-out, but with some narrowing compared to the rest of the industry.

In Peru, very different market in terms of they're also some regulation issues like the anti-spam law, but still our port-out gap is very close to the market and is different than in Chile, which is a really much aggressive in terms of competition, it's very hard to really get figures too different to the one we're seeing, and we're trying to keep that. In terms of ARPU, Chile growing, sustaining the higher ARPU in the industry, 27% almost gap compared to the rest of the players.

For the fourth quarter '25, you see that we already are anticipating above 10,000 of this is Chilean pesos, some growth compared to the end of the year, but still very positive. In Peru, actually given the even lower inflation, the competitive dynamics, the pressure in ARPU is very strong, it's very hard to see any changes in ARPU, and you see very flat lines in the last several quarters.

For the fourth quarter, we just put the picture: we are a little bit above the end of the third quarter with 6.3, which is some increase, and we expect to keep that in the future. Finally, in terms of the market, just to know that in Chile, we have this picture just for Chile, mobile data is really growing.

That's also is very important. You see Entel, the share of Entel for every quarter is expanding, although the whole industry in terms of Go, this was measured in petabytes by month, is growing.

Entel is capturing a higher share of that growth. This is worth noting because of the capex intensity we'll review in the next slide.

Before, just to note that the trend in Chile and Peru of our network, is measured by the ECQ index, which is the measure basically the quality of the network, we are growing. We're growing even faster than the rest of the industry in Chile.

We are really almost in the same spot compared to the rest of the industry in Peru, but keeping a good momentum, with a very strong network and with points of presence almost 8,000 in Chile, almost 6,000 in Peru and growing, specifically in Peru, not only coverage, but also the quality of the network is certain in specific areas. We always put the spectrum disclosure, which a very strong position in spectrum, which assures our growth in the future.

Capex: this is also very relevant. This is total capex for 2024 to 2025 and '23.

We know that in 2025, even in 2024, we already were able to reduce, by the end of the year, a little bit the capex intensity, specifically in mobile, because of the competitive dynamics that already showed at the end of '24, exacerbating in 2025. We were able to post a 15.1% of revenues capex in total.

You can see how much Chile had really lowered the mobile capex and total capex is significant compared to 2023. We are in the last part of the 4/5G implementation in Chile, so that we should expect that to go down, while we are growing in Peru in mobile.

We increase already in 2024. We increase a little bit less in 2025, but we expect 2026 will be more aggressive in Peru in mobile.

On top of that, we have still in Peru and Chile to grow in fiber. In total, if you see the 15.1% 1% capex-to-revenues in 2025, we have mentioned that we should expect in 20 during the period 27 and 20 26 and 2027 in the range of 2 to 3 percentage points on top of that.

We should be, I guess, in the range of 18 and 18. something for a 2-year period, going down and converging by the year 2028 to the range of 16.5% in that area, which at the most 17%, but will be really a 2-year spike to the range of a little bit more than 18%, 18.5%, then going down to 16.5%.

I would use that as a guide for any cash flow projection, etc. Cash flow for the year: you can see the beginning of beginning cash 274,000 million pesos, ending with a 249,000 million pesos cash.

Basically, a stronger EBITDA. We had some room compared to 2024 because we have some lower capex, positive working capital, even though we grew in handset financing, which is typically requires additional working capital, very stable leases IFRS 16.

Financing was basically neutral, but we have some more net financial cost compared to last year. Just to know that those 128,000 million pesos of financial costs include 44,000 million pesos of the hedge of our exposure in Peru.

If you take that out, we still grew a little bit in net financial costs, but mainly because some lower investment base and interest income coming from that investment sources. I would say in terms of net financial cost, of interest expense, it's actually very similar to the previous year and actually lower because of the lower rate of refinancing.

Pretty stable cash flow. This is before, for sure, any other consideration, but still we ended the year with a strong cash position, which also combined with the refinancing we did of the maturities we have in '25, and we prepaid some of the '26 bond.

It allowed us to really post a very strong net debt at the end of the year, very stable compared to the end of '24. Our gross debt actually decreased to a certain extent, and with a net financial debt plus IFRS 16 to EBITDA ratio of 2.47, which is a little bit lower than the end of 2024.

This is good news. We were able to keep and sustain our investment grade with all our rating agencies, we believe that in terms of the financials, we post a very strong position.

We feel comfortable with the refinancing we performed during the year, which leave us a very healthy room in the next 2 years. The next amortization that we have to worry about is 2028.

We have time to do that, expecting very strong and good market conditions when we decide to do that. This is very good, I think, news for our balance sheet and liquidity.

To finalize, just to repeat some of the things we already mentioned: the both countries, Chile and Peru, are with four players, are strongly competitive. We face competition, and we have to be quick, we have to be really responsible, and try to focus as our commercial strategy where we can take the most significant return on that, maintain our EBITDA stable, but try to grow in the market segment where we see some room and good return, also growing in fixed in Peru and Chile just to support the mobile business.

We have to take advantage of the strong and better network we have built with the capex that we have performed during the last many years, try to monetize that in Peru. We have trying to do that.

We have to advance on that. In Chile, we're already are very comfortable with the ARPU.

We are growing in ARPU, we will continue hopefully to capture the more value in that area related to the top line. Fiber, as I mentioned, grow is very significantly, try to make it healthy, fast and healthy in the market segment that are really provide value for the company.

I already mentioned the investment grade, and the capex intensity, as I mentioned, 2 years of 2 to 3 percentage points at the most of spike, and then converging back to in the range of 16.5% for 2028. That's a summary.

I think it was a very good year, very challenging in both markets, in Chile and Peru, significant changes in the players and market strategies. We, as I mentioned, we have been trying to be very agile, anticipate the changes, and adjust our position and commercial strategies and financial strategies in that line, and I think we have been successful.

That's it for my part. Thank you.

Thank you so much, Marcelo. Now, we're going to move into the questions that you may have.

Please send us through the chat, and we will start answering. We have one question from Andrés Coello: regarding the new Direct to Cell service with Starlink, can you share some statistics regarding how many Entel customers have used the Direct to Cell service, and also how much you are charging for the service?

Oops.

We have the figures. We have very recent figures, and I think that we need more time because this is really new, Andrés.

For example, we were analyzing, and this is out of the oven, figures related to we had we just have some relevant events in Chile related to wildfires in the south, and it's very it's very relevant, the growth and the usage that we saw in those areas that are affected by the wildfire while the the regular connect connectivity was not working in certain areas. We have these statistics.

We cannot share share them right now. At some time in the future, we might share that for sure, but it's really is we are in the first weeks of really capturing the data, trying to really deploy and make the service available for our customers.

We are in the initial frictions that every handsets is has is really connected or recognized by the networks. There's so many challenges given the differences between the operating systems of the different handsets, and how we connect that those to our system to have the the sat mode connected.

We that's is is working, is advancing. Our customers are using the services, but still need more work so to have a really stabilized full access to every customer in the coming few months, I would say.

At some point in time, we'll share those statistics. In terms of pricing, we're not charging directly for, but we're monetizing that, and we can we also have the statistics in terms of the lower churn and higher and capturing high-value customers that normally wouldn't be our customers if we didn't have the the Direct to Cell service.

We are following those numbers, and we can also tie the monetization of of the Direct to Cell service the in the case, as I as I mentioned, that customer that we know that are preferring us because of that, and the lower churn. It's also can be measured.

We cannot provide figures at this point, but let me tell you in summary that it's very successful.

Very important for emergency cases like wildfires.

For sure. I'm just talking about Chile, and I think in Peru, because of the lower depth of connectivity in remote areas, would be also a very relevant differentiator to our competition in Peru.

That differentiation will definitely imply a higher market capture of customers in those areas. We will see that, I would say, during the first half of the year.

We need to stabilize the operation of the system, and we will provide to the market for sure those figures as soon as possible.

Thank you, Marcelo. We have another question from Livia: on Chile mobile margin in the fourth quarter, is a good reference for 2026?

What other element should be considered to think about the year? Can you talk about how are you seeing competition in this market?

I would use just consider that there were some extraordinary impacts in fourth quarter, but I would say just know that that does not include the price increase that is being performed in January 2026. I would be a little bit more optimistic and not use exactly the same fourth quarter mobile margin.

That's for one. The second part of the question was...

Was

about competition.

Can you talk about how you are seeing competition in Chile, I would say that if you see the slide where I show the revenue share in Chile and the market share, you would see definitely Claro, and all know that, since they got the 5G spectrum, they have been, and that's very obvious, they have been growing. Have been aggressive commercially just to use the new spectrum and the quality that it implies, I would say that they have been the drivers in terms of competition during the year.

The rest of the players, I would say more cautious, and if you see the market share, you would see the only line that really goes up during the year is the red one. That doesn't mean that that growth is captured in pricing, you have to then look at the same chart in the left-hand side, which is the revenue share.

Revenue share, most lines are really flat and Entel is growing. That is also another way to look at it, at the value that is captured after all the growth in terms of customer, because you can lose customer depending on the type of customers, and time, you can do efforts.

I would say it was a competitive year for the industry, for sure Claro, and the situation with other players is different. In Peru, as I mentioned, is always very competitive.

Bitel is growing. It's similar to situation with Claro: they got this new 5G spectrum, they have been very aggressive.

Although we have been able in Peru, it's worth noting, to grow in postpaid, in more high-value customer, but we haven't been very successful at keeping up, actually we're decreasing a little bit, in prepaid. In prepaid is where we need to put more effort.

It's going to be hard. We're not very good at prepaid in Peru, but at least we're trying to be very good in postpaid, which is the more value is.

Thank you. There's another question regarding fiber: you posted an acceleration in Chile fiber-to-the-home adds.

Can you elaborate of what are the new commercial actions implementing during the quarter? What do you expect in terms of adds to 2026?

That's very good question. The main strategy that we're implementing and pushing is convergence.

Convergence means tackle the customers that already customers in mobile, that or just with one line, two or three lines as a family, and go to those customers, since we already have the whole footprint of On Net through the country, especially in the main areas, also high-value areas. We need to capture and have a good commercial proposal for our convergent customers.

That is very important because the positive impact in churn in mobile is relevant. That's where we expect to capture a significant chunk of the profit and the return from the fixed expansion.

Also, it has to do in being competitive in terms of the rest of the competition. You can see in newspapers, TV, social media, every day all the players are really being aggressive with combos of fixed plus fiber plus TV, different channel offering.

It's a very competitive market. We need to be competitive in terms of pricing, but also focusing on the right customer.

Also, be cautious and try to manage the discounts. Typically, this industry, this business segment works a lot of with temporary discounts, and we're trying to avoid what we call the bill shock.

The bill shock is basically when you sell a customer with a 50% discount, and if you reverse the discount in the month six, the bill shock is very significant and customers tend to leave. If they leave, we lose the capex of the home connection.

We're trying to soften that, having more manageable discount rate, but also apply that in a more longer term, there is not as a bill shock that really hammers our growth, and that our growth is healthy and it's not fake, because you can grow, and then if you just lose those customers after the month six, just lose the capex. We need to avoid that.

Those are our main and being cautious also with the customer quality in terms of churn and uncollectible. Uncollectible voluntary or involuntary, which is a part of the churn, is very important, we need to avoid bringing in customers that won't pay or just will leave or that we need to force them to leave because they are not paying.

Those are the three levers I would say we have been successful. We're growing again, and growing with very good margins and very low, still we can prove, much lower churn rate than the last year.

Thanks. There's another question regarding tax effects: could you explain a little more the tax income of the fourth quarter?

This was because Entel had a tax loss in a company that didn't generate revenue, and when you transferred that loss to an operational company, now you can recognize the tax assets, or if different, what's the reason why those tax assets weren't recognized before?

To explain this very simply: the origin of that deferred taxes is that you are bringing to life a loss, actual loss we have, and it was a relevant loss that we have in our business in Peru, in Entel Peru. That since it was in two different countries, and given that the investment in Peru was mainly allocated in Entel S.A.

Entel S.A. was the original investor in that company, and the situation here is the following: if you keep the situation as it is, you cannot use in Chile the losses you already had in the previous years in your investment in Peru.

If you go and see, Peru has posted its historical loss and also has a deferred tax that is accounting for those historical losses, but those losses could not be used in Chile because where the shares of Entel Peru were allocated in Chile. What happened when this transaction that was made at market prices basically, because there's a regulation that oversees that those transactions are made and we're very cautious in that, having the right valuations and opinions from many areas, legal, tax, etc., several different and all convergence to the same idea that the idea behind this was just to put an order, I would say, to the actual way we perform business.

Just to remember that the last many quarters, I was explaining why one quarter we have a volatility in the tax line because the exchange rate dollar-peso went up or down, and that was impacting the value of our investment in Peru. One quarter was up, we're losing; down, we're gaining in terms of taxes.

That volatility was not actually part of our business. It was just accounting and it put volatility, and that's not the way we really manage our business.

What we did, we transferred the shares of Entel Peru to Entel Internacional, which is the entity which really is made for holding our international holdings. That transfer made at market price, what it makes in terms of tax-wise is really rebirth the loss, the value of the loss we had in our investment in Peru and allow us to use that loss for future tax payments in Chile.

That's why it is accounted as a deferred tax. The impact of that accounting-wise is that we recognize in the year that is generated a gain in the tax line.

In reality, what should happen in the coming years is that we have a tax credit that will reduce hopefully our tax payments in the coming years if any profit is generated that we can be deducted with this deferred tax. The idea here is that normally it is value, and we have projection that that deferred tax will be used, we need to have profits to be used, and that was already part of the review that the auditors performed during the audit process of 2025.

I don't know if I explained myself. That's mainly the reason.

It's just that we put order where we have allocated our investments, just to make the organizational structure talk to the actual business and how we perform our businesses, and that had an impact in the tax line, and because of that, because it really makes rebirth or noticeable a loss that now we can use as any loss that you can use. If you are in Chile, you have a loss one year, you can use that as a credit for coming years.

This is the same, but it was not possible because of where those shares were located, it was not possible to use that. This transaction just allow us to take use of that.

That's the simple explanation. It's not simple.

Thank you, Marcelo.

There's another question: congratulations for the results. We have been seeing numerous headlines around competition and consolidation in Chile.

What are your expectations for consolidation in Chile in 2026? How do you expect to the market to be impacted by a potential consolidation?

The answer is we don't know, and they're still four players in both markets, in Peru and Chile, different ownership. Every player really investing, improving their network.

What we're focusing really on the business as usual, trying to be leaders on that. We know that things in the headlines, but until anything is completed, I cannot comment on anything because really there's not clarity in what's going to happen.

For sure, we have been really being very outspoken in the need or the benefits of having a more stable profitability and ability to invest in the long run, and that is really capture with the going from four to three players, which is the experience that we have seen in different countries around the world. There's nothing I can comment on that for now.

Another question: some news regarding the Article 14 under discussion that would allow a partial spectrum migration from the mixed to mobile. How much capex could that imply?

We're advancing on that, we're kind of positive. That's not really very significant in terms of capex because really you just reuse what you have.

You might do some investment, but it's not very significant. I think we expect to have positive news pretty soon.

That's the only thing I can comment on that.

Thank you, Marcelo. I think we are finishing our conference call.

Thank you so much for everyone to be connected today. We can speak soon if you have any other questions.

Please contact me, and thank you so much. Have a nice day.

Thank you.

Bye-bye.