Good morning. Welcome to Entel's Second Quarter 2025 Earnings Conference Call. I'm Paula Raventós, Investor Relations Officer at Entel, and joining me today is Marcelo Bermúdez, Entel CFO. Please note that this event is being recorded and that all participants will be in listen mode only during the company's presentation. At the end of the presentation, we will open a question and answer session. Let's start by outlining today's agenda. We will begin with our review of the most significant and recent events, followed by the overview of Entel Group results. Then we will zoom into Chile and Peru operations and cover also ESG initiatives. Finally, with final remarks and Q&A session. I will now turn the call over to Marcelo Bermúdez, Entel CFO. Please go ahead, Marcelo.
Thank you, Paula. Good morning, everyone. Let's start with the main events we've experienced this first half of the year in Entel, which has been a very interesting year so far, already in the half of the financial period. I would say as of June will be very challenging, but still we have very good news in certain areas. Specifically, I want to start with just noting that we continue to lead the 5G market with almost a 48% share. That's also very interesting for the future deployment of our network in Chile, as well as in Peru, as you know. This is interesting also because we are one of the pioneers in the country in the 5G standalone technology. This technology, just to remember, will allow in the future to provide a more low latency signal and network to our customers.
Also provide slicing, which allows us to really use one network with different features for different customers. This is very important for certain services like, for example, telesurgery or any other service that requires really undisrupted capabilities in order to provide control, for example, robots and other services. This is a really interesting technology that we are partnering with Ericsson to provide services for our customers. We will continue to deploy that or to advance in the first steps of the 5G SA, and it will be very interesting how we can develop that and monetize it in the future. Also, we have been named the most valued company, the Telco in Chile, for the third year in a row. This is a very relevant recognition for our company. This is backed by Opensignal.
It basically provides assurance that we are the company that provides the fastest 5G speed and good mobile experience in the country. We are very proud of that, and we will continue to improve that connectivity for our customers in the future. We've talked about this before, but the project we have been conducting with Starlink is really advancing. We already started the first, I was testing Peru with direct-to-cell using the Starlink connectivity. It was a very successful initiative in Peru. It was proved that we can provide a stable, basically, background for the technology. Specifically, starting, we will talk about that later with messages initially. In Peru, we'll basically do the same as we will do in Chile, and this is already on its way. Also, note that S&P Global Ratings reaffirmed the BBB Minus rating with a stable outlook for the future.
We're very proud of that and it backs our strategy in terms of financial stability that we have been performing. Finally, Entel launched the digital B2B business in Peru. It's a very interesting market. We already started with all the commercial first steps in the market, trying to mimic what we have in Chile. I'm sure that will be very successful and will support our strategy to increase the share of digital solutions in our revenues. We also expect to have a 10% share of the revenues in Peru, similar to what we expect in Chile in the coming years. It's very interesting to see how that will evolve in the future. Just to know, I already mentioned a little bit what we did in Peru with the test, but basically, we're still advancing in the Starlink contract, that we said, basically.
We have already everything set up and prepared to provide, as soon as possible, the messaging services in the country, in Chile. We are just in the final step of approval, formal approval from the authorities. Today it basically requires some final review from the National Controller. It's a state agency that is still reviewing that. Hopefully, if that is approved, we will be able to provide and initiate messaging services during the year. We don't have a specific date. Hopefully, it would be soon. It could be, I don't know if it will be August, but it could be August, September. As soon as we have the approval, we'll be starting to provide the service. Everything is set up to just turn that on and start providing that very awaited service for our customer base.
It will be really something important to improve our services and have a positive impact also in churn rates for at least the coming years. Going to what has changed in our shareholder structure, just noting that we have an increase in the share of foreign investors. That's been adding 2.5 percentage points as of June compared to the August quarter-on-quarter. Mainly, pension funds reducing their position a little bit in favor of foreign investors, but we don't see much change besides that. Almendral is still the controller shareholder with 54.86% of the company. In terms of stock price, we've seen at least some increase in terms of volume traded in the last few months. That has supported a little bit the trend of the stock price trying to convert to something similar to the IBSA return of the year. We're lagging a little bit behind yet.
That's at least good news in the short run. We would see what's coming in for the rest of the year. Just going to consolidate the figures, when we see the, at least in terms of mobile users, what we see in general is that we have been at least posting some increase that is relevant to note in what is postpaid, growing year-on-year, 8.4%. Though prepaid has shown both in quarter-to-quarter figure, year-on-year. A decrease is mainly due to a cleanup of the customer base that it was performing in February 2025. After that, we expect to continue to grow in the postpaid business mainly. Although during the first quarter and second quarter, we have been facing some challenges, mainly due to the regulation that mandates that we perform biometric clearance for our new customers.
Basically, any new customer that purchases same services or SIM card needs to be authenticated by its biometric face recognition or digital print. That has reduced a little bit the, I would say, the turnover in the industry. We'll see later that even the portal rates have decreased during the second quarter, given this new regulation. Also in Peru, there is some effect also related to the anti-spam law, which basically had reduced the or not allowing the calling our customers or customers from other companies to promote telco services or between any companies. That is forbidden, and that's also had an impact on the, what we call, the turnover rate also in Peru. When you combine those two effects, which are mainly driven by regulation, you see a decline in the mobile users as a whole compared to the previous quarter and the quarters before that.
In general, the industry after this adjustment is still growing, mainly related to postpaid. In fixed business, if we see the RDUs also growing very rapidly in fiber, you can see 25% year-on-year. We have been reducing this growth speed in the last quarter in fiber. We'll touch that in a few slides later. Still, compared to last year, we have improved significantly in terms of fiber. Also, as you know, given that it's an older technology, decreasing our share in fiber and hybrid fiber coaxial networks. We will continue to see that declining, the non-fiber and just growing in fiber. In terms of consolidated revenues and EBITDA and net income, we can see that in general, the quarter-to-quarter, we have a slight reduction, but still growing more than 6% in overall revenues compared to last year.
Growth has been driven very markedly in the last quarter by handset revenues. Also, if you compare to last year, to the same quarter-on-quarter, we still are showing some increase, close to 5% in what are mobile services. Combining a stable and slightly growing mobile services and a very strong handset revenues and handset financing, we have been really in the mobile business pretty active. Fixed business is still contributing with 8.5% year-on-year and some growth close to 3% quarter-on-quarter. We're growing on fiber a little less than we had expected. We're going to talk about that later, but still good, decent growth in mobile and a very strong growth in handset revenues and financing.
If you would translate that into EBITDA and EBITDA margin, what you see is that still the EBITDA is growing compared to last year and last quarter, kind of in the range of 3% in both figures. EBITDA margin is decreasing. We have anticipated this since last year. We know that the deployment of fiber will impact our margins both in 2025 and 2026. That's why we also noted in the slide, you can see in the right-hand side in the upper chart, just the mobile margin for the second quarter 2024 and the same margin for the second quarter 2025. That is not including fiber, just mobile. You see a 0.4% or a decrease in the margin just in mobile.
The 1.4% decrease compared to last year as a whole in the margin is mainly coming, one point of those 1.4% is coming from the fiber deployment and just 0.4% from the mobile business as a whole. This is consolidated both Peru and Chile. We're going to see what are the reasons driving a little bit less margin in mobile, but it's mainly the fixed that is really dragging the margin down. This will be just for, as we have mentioned, for two years. We believe that is a strategic move in terms of to defend our mobile business. That's why we're investing in fixed. In terms of EBIT, still year-on-year, almost no growth, just slightly 0.2%. Quarter- on- quarter, a little bit 1% decrease. In terms of net income, we posted CLP 19 billion, which is still lower than the first quarter.
The important thing here is that every quarter we are not seeing what we saw last year, which is all the impact of the exchange rate impacting our investment in Peru. Having that impact of our investment in Peru related to the exchange rate already hedged in our P&L, we have seen a more stable quarter-on-quarter net profit. That is why it's not very comparable to the last year net profit that really varied a lot quarter-on-quarter. We still see a pretty good year for the rest of the quarters in terms of net profit. You can see a stable business growing, not that much in mobile services, very levered in both in fixed and handset sales and financing. Margins, given that, as we have mentioned several times, the industry is still facing very stiff competition, a strong competition both in Chile and Peru.
This year, we have expected more competition in Chile, given that one was backed in the industry. You know that Claro also got their 5G spectrum. We were expecting this year to be more active in terms of competition in Chile. That is occurring a little bit more responsible, I would say, than previous years. In Peru, it's still very aggressive. You know that Claro and Bitel are very relevant in their specific market segments. In Peru, it's still a very competitive market. Although Telefónica in both countries has been less present, it's still a challenging year because there are four players in each market. That's very relevant to understand. That's why 28% margin in total, 29% if we take out the fiber deployment, is still a good margin for this competitive environment.
We are far away from other benchmarks that you can see in other markets that are two or three players. We are being able to defend our position and still keep up with this margin level. Real quick, there's not much change. We haven't seen different effects that we saw last year in terms of inflation, exchange rates. It's mainly still good business performance. If we see quarter-on-quarter in terms of EBITDA, this is including the dragging of the EBITDA from the fixed business that is included in the area, really offsetting the kind of strong performance of mobile. For the six-month accumulated figures, pretty much the same. Business is still strong. Taking into account that last year we performed several efficiencies that still are included in this year in expanding those efficiencies, those are really supporting our business that is still very competitive in terms of pricing.
It's actually, it's very good news that we can really perform in our organic business positively both in the quarter figure or in the six-month accumulated figure. We always see what's going on with CapEx. We have been posting a little bit or a figure that is a bit lower than we anticipated for this year and for the first half. You know that given the competition in fiber, given the results and the churn rate in fibers, we have taken that into consideration and we have reduced a little bit the speed of we are expanding and in which market segment we are expanding in fiber.
That means that we're focusing on high-value customers, trying to be cautious and responsible because every customer we connect is very significant in terms of CapEx because we need to connect, do the fill expense in terms of connections, the last mile what it's called, and also expand or do invest CapEx in the equipment of the fiber. It's roughly $180- $100 per customer. We're very cautious to really deploy that CapEx where we see incremental value. That's why the lower speed of deployment of the fiber business has also resulted in lower CapEx. Also, the level of competition, normally, we are able to take that into consideration in terms of mobile, how the competitive environment is in that sense. We have been adjusting CapEx a little bit. Normally, the first half of the year is lower in CapEx.
There's some speed up at the end of the year, but still, we believe that we will be roughly in the overall figure of 19% to revenues by the end of the year. Today, you can see that as of June, we still have 15.5%, which is a low figure. We should speed up a little bit for the rest of the year, but we are maintaining the last quarter view to reach 19% at the end of the year. As you can see, mainly it's related to fixed, which is the green line. The blue one, which is mobile, is in Chile really in 14.6% for the first half of the year. Peru is speeding up the 5G and 4G deployment and increasing coverage in different areas, Lima and outside Lima. That's why that figure as of June is still high compared to its revenues in Peru.
The expectation for the rest of the year is at the most reaching 19%. We will depend on how the competition really evolves for the second half of the year. This translates into a cash flow that, compared to last year, is stronger in terms of cash flow from operations. You can see almost CLP 60,000 million compared to a negative cash flow last year for the first six months related to a better working capital, lower CapEx also, as I was just explaining, that have resulted or coupled with a strong EBITDA have improved our position during the first half of the year. Also, the net financial expenses, this is not including the impact of the first half related to the hedge of the investment in Peru. This is just net financial interest expenses and interest income without that effect.
It's a little bit higher than last year, mainly because we had a lower cash that has been invested because last year we have in the first half a lot of cash coming from the sale of the fiber business the previous year. That cash has been used. We used it the second half of last year to pay down debt, but mainly we're paying $150 million in a bond that expired in the second half of the year. Besides that, the cash has been really used for the normal operations and also to finance some part of the financial costs and dividends.
As a whole, cash for if you compare to the beginning cash, which is for this year CLP 233,000 million, we ended almost in the same figure, though we are including CLP 56,000 million of net financing activities, which is mainly the bond issue we did in April, which provided a little bit below CLP 8,000 million. We deducted from that line the impact of the hedging of the investment in Peru, which is negative CLP 41,000 million. Instead of including that hedge in the net financial costs, we are including that as part of the net financial activities. As a whole, it looks like a balanced cash flow, very dependent, of course, on what happens for the rest of the year in CapEx, as I already mentioned.
If we keep CapEx related to the trend in EBITDA, we should be able to keep a balanced total net cash position at the end of the year. It might be a little bit negative depending on how the rest of the year evolves, but still, as of June, it's pretty stable. Finally, for the consolidated, still very stable and I would say at an adequate level, the main financial indicators, financial debt, net financial debt growing a little bit during the last quarter. As I mentioned, we issued a new bond coupled with the increase of the impact of the hedge of the Peruvian operation. That implies a negative impact of CLP 41,000 million. That impact is very important to understand.
The hedging of Peru, if you see the FECU, it's included in interest expenses as in higher interest expenses, but it's netted in the tax line with more positive taxes, which are those effects that are the same, are netted, and that accounts for the hedging we're doing. When you see the balance sheet, it implies that we are posting a higher debt, basically of CLP 41,000 million, just because of the hedge. On top of that hedge, we also issue a CLP 80,000 million bond, but we also pay two loans in the first half of the year for roughly CLP 35,000 million, which was the banks KFW and BCP in Peru. Those three effects, the new bond, debt reduction, plus the impact of the hedging account for the CLP 90,000 million that the net financial debt is increasing. That's the main explanation.
Sorry, compared to the last quarter, it's CLP 60,000 million, but compared to the end of the year, it's CLP 100,000 million. Net financial debt EBITDA, pretty stable ratio, and that also has allowed us to keep the credit rating as of now with still positive or neutral in terms of Fitch rating and S&P stable outlook for the rest of the period. We have been also posting a dividend yield annualized of 6%, a little bit lower than the previous quarter, but it's still in a positive area. Quickly going to Chile, pretty much the same that we saw in the consolidated figure.
Mobile user base decreasing based on not only the cleanup that was performed in prepaid, but also the biometric and portability regulation that started in the second quarter of 2025 or impacted mainly in the second quarter of 2025 that affected the levels of portability and sales in the postpaid market. In spite of that, we were able to increase compared to the last quarter in 1% our customer base. We will expect at least if there will be a positive contribution for the coming quarter. Given the lower portability ratios, at least the churn rate also should be impacted positively. We will see in the industry, I would say, some change in the turnover of the customer base among the different operators. If you see in the last quarters, we still don't have the second quarter figures.
We really saw Entel leading in the last quarters, every quarter, the net share of the market growth. Although in the last, I would say, in the last quarter, first quarter 2025, Claro improved and got the pole position, but still Entel got a really significant chunk of the market growth. Telefónica also improved compared to what we saw last year, which is the green boxes there. And Walmart is still very shy, depending on the quarter, some slightly positive or in the last quarter slightly negative. Just to note that in the second quarter 2025, we got a 33% positive net adds in that quarter. We still have the rest of the industry figures. The revenues in Chile, pretty much in the same line as the consolidated. Year on year, in general, we are growing 4%, but just seeing the quarter figures, really no growth in terms of revenues.
We are really seeing some level of growth in fixed, which is the business that we're really focusing on speeding up the growth, but still helping, but not enough to really offset the adjustment we see in the mobile services. Mobile services, although the customer base is kind of stable, we are seeing some level of competition, higher discounts in the second quarter that are driving a little bit the ARPU down. We'll see in a chart in a different slide. That is mainly the impact for the second quarter. As a whole, it's pretty stable. We should continue to see in terms of handset and handset financing, strong figures we've seen compared to last year, still 4% growth with pretty strong and good, but debt is really controlled. We haven't seen yet any negative impact. It's a little bit better than last year in terms of uncollectibles.
We're seeing a stable financing business growing at a certain extent compared to last year. In the EBITDA margin, same figures, a little bit almost a point or 0.9 compared to last year, all of lower EBITDA margin. As you see, mobile is really stable in the same 37.1 in both 2024 and 2025. As I mentioned, the decrease is driven by the expansion of fiber. In terms of more detail, when you see mobile, as I already mentioned, this is mainly both the handset business and the accessories that are growing. Everything that is related to services is with a slow decline compared to the last quarter, but still growing compared to last year. As I mentioned, that's mainly a result of the competitive dynamic in the second quarter and discount provided to customers.
Still, as you can see, brand power Entel is continuing to lead the industry with a significant gap of more than nine points to the second, which is a second player. Still on postpaid, as you see also in NPS, we're leading with more than 20 points gap compared to the second operator. Another measure that we like a lot, which is the ECQ, which is really a blend of different ways to perceive the quality of the network in terms of speed, latency, and other features. We really keep a significant gap within the rest of the industry. We also saw in the first quarter a decline for most of the operators that is related to some heavy storms we had in the country that impacted Entel, but also the rest of the industry. We were able to recover from that and really maintain a gap against the industry.
There are some players, you can see the red one that is Claro that is improving in terms of quality. That's for sure since they have access to a better 5G network. Still, compared to the other players, we still keep a very strong gap. More in detail, the mobile service revenue share, 42.3%, widening the gap compared to the rest of the industry. As I mentioned before, in the chart at the middle of the slide, we can see a steady growth in ARPU compared to the first quarter of last year, although we will see in the second quarter a slight decrease mainly because of additional discounts and competition in the country. We also know that the green operator there in this fourth quarter of last year, they performed a base cleanup that really made the ARPU of that operator jump in the last quarter of last year.
That has been maintained for sure during this first quarter. In terms of port out rate, you can see we are, as the other quarters, almost doubling the or half, I mean, half the rate of port out of the rest of the industry. We are keeping that leading position very wide against the other operators. For the second quarter of 2025, we put a note there, which is we are keeping the 0.77 gap. Actually, the rate is 0.77, and we're keeping, I guess, the same gap against the rest of the industry. Real quick, to finalize, Chile fixed business accounts for 29% of the revenues, growing compared to the last year and the last quarter, mainly in fiber. There's the detail. Fiber, which is the orange one or your red one, is growing at 36% year-on-year, with a more modest growth in the last quarter.
The rest of the services related to IT, digital solutions, are with mixed results. IT growing 3% year-on-year, but digital solutions with a slight decrease during the quarter. In general, what we see is B2B business in general is performing pretty well during this year and growing in general. Quick summary of how we have been expanding in fiber. We already reached almost a 13% share in terms of connections, being one of the only companies that are really growing in the market, given our footprint related to the on-net connection deployment. That has allowed us to really grow in the last year every quarter. I would say that that growth will continue in the coming quarters, as I mentioned, but cautiously trying to really speed up the profit goal in the fiber business.
This is really the net adds, how the market has been evolving in the last quarters. You see the first quarter, we happened in the other quarters the last year, actually, Entel is the only one growing. Mundo, which is the yellow one, sped up since the last year, first fourth quarter last year and first quarter this year, sped up and is really growing a little bit, similar to Entel in the first quarter. Also, Claro is already using the on-net network. They are moving customers to fiber, which is something that is expected. We are the three doing some revolving and getting customers, the new customers in the last quarters. This is also important. We are showing the trend in revenues related to fiber and the costs and expenses related to the same business.
As you see, we are still growing, but this is a business that is really related to scale. In this first stage, we have always thought about that we're not below the revenues in terms of cost. This is really the explanation why we have one percentage point of margin erosion because of growth in fiber. We expect at the beginning, we'll say at the very end of 2026 or beginning of 2027, having really positive results in terms of EBITDA. That is tied to continue to grow and gain the scale to really provide and dilute a fixed cost in our larger customer base. With that all, we see also in the right-hand side the CapEx related to fiber. Normally, CapEx is related to installation and the equipment that is installed in every home. Basically, the cost per unit is not that unchanged.
You can see in the second quarter a drop of 22% in the CapEx. That is, I would say, is a one-time effect related to the refurbishment of some equipment of old customers that were reutilized for new customers. I would say that normally we will see a very stable CapEx figure per customer installed in the range of $180- $100 at the most, including everything. That's for Chile. Paula, you can go with Peru.
Thank you, Marcelo. Moving to Peru results, the strong competition continues, but it has this quarter been mitigated since the anti-spam law came into effect, which regulates the sending of advertising messages and requires prior user authorization. We've been able to increase the postpaid customer base in this quarter by 11% year- over- year and 2% compared to the second quarter of 2025. In prepaid also, we decreased a little bit of 1.3%, but it's mainly because due to the migrations that have secured towards two postpaid customer bases. Here we can see that despite this high competitive environment, we have been able to continue growing our postpaid share. We have maintained a positive growth trend with more than 100,000 additions in this second quarter, capturing 38% of the share of the expose.
This increase we have seen that it's in the customer base attributed to the strengthening of both in-person and remote sales channel. Also, two additional lines have shown greater growth compared to the second quarter of 2024, and because of the quality admissions that we have kept churn under control, contributed to the base growth with good B2C acquisition and greater B2B consistency over in the different segments. Regarding the results of Entel Peru during this quarter, sales reached $277 million, growing 5.5%, mainly due to the significant growth that we can see in sales of mobile equipment and services. The changing strategy allows us to maintain the tariff structure while controlling promotional discounts and reducing participation in the dynamics of in-person discounts.
Regarding our EBITDA, we reached $70 million during this quarter, a little bit down compared to the second quarter of 2024, where growth in service and equipment margins could not offset higher advertising costs due to this anti-spam law, which requires additional advertising efforts and increase in sales channel costs. Also, we have some increase in channel costs in marketing campaigns to promote our best network regarding the increase that we're doing in coverage over this year. Despite this slight increase, we have been able to maintain a stable EBITDA margin of 25%. Regarding our EBITDA, it has been in line with recent quarters and has remained stable.
Moving deeper to the mobile revenues, as you can see, we grew 77.7%, mainly due to the equipment sales that grew 17%, and also due to the successful commercial strategy that has aligned the sales volume with the commercial plan, achieving a significant markup in the selling price and recovering the substantial market share. Also, due to the market share context that we have been in, it has been favorable to us due to the reducing participation in other operators. Also, regarding mobile service revenue increase, explained due to lower customer acquisition discounts and due to the growth in our customer base. We've been leading in our network quality.
We have been making progress improving our network in presence and also in 4G and 5G coverage with a significant growth plan out of Lima, leading in an excellent consistency quality from Tudela, which is a key performer that evaluates the average download or the speed upload and latency. Also, according with Opensignal and Opensignal, Entel has best 5G network quality. Regarding brand power, Entel has maintained the second place with a significant growth in Lima and out of Lima in customer service benefits, innovations, and attributes that have been increasing over the last quarter. Also, we have seen some important recognitions over this quarter. For example, we obtained the first place in customer experience in telco sector by ISO in Peru. Also, we obtained the first place in quality ranking on mobile internet indicators.
Also, we obtained the first place in telco sector from attracting and developing talent by Mercotalent. We've been able also to maintain good satisfaction levels for our customers in NPS in postpaid. Also, this has been in line with the commercial strategy that we have been implementing to get closer to our customers with benefits and loyalty plans for our users. Also, regarding our revenue share, we have been maintaining our second position in revenue share with this significant presence and participation in mobile services, especially in Lima. Also, we have obtained important growth in the revenue share with handset revenue. Despite these high competitive and strong promotions and discounts, we have been able to grow in our ARPU, reducing because mainly the reduction of the in-person channel discounts. Regarding port out rate, the entire industry during this second quarter has the effects of the anti-spam laws.
However, Entel has been able to increase the port out gap compared to the industry average. Now, I will move forward to our ESG main events and highlights during the second quarter. It's important to highlight that Entel has received the Energy Excellence Seal for Rehutiliza por Chile, that it's an initiative of Energy Excellence Seal for the recycling program, thanks to the positive environmental impact and the use of an electric truck and collection of more than 130 tons of electronic waste. Also, we have obtained the 76% of Entel stakeholders' rate in ESG performance favorable, according to the ESS Index 2024 survey, where obtained has an important performance with this 76% of evaluation, with an important best rating in the corporate governance of 77%.
Also, we have been highlighted the last Entel recycling initiative with more than 1,600 unused phones with this recycling initiative collective in under the two months. That is an initiative that has been a program that we started over the last year, and our goal is to recycle the 20% of the phones' cells annually by 2030. Now, we will move forward to our final remarks with Marcelo. Please go ahead.
Just to finalize, and before going to the open questions section, just really remarking and noting that even that, as I mentioned this at the beginning of the presentation, that we are in a very highly competitive environment. The telco landscape has not changed in the last year in Chile and Peru. Although we may have some players that have been exposed to a challenging financial situation, they are still in the market, still doing commercial promotions. Some of them trying to really survive for a while, some other more aggressive because they need to really speed up the deployment of additional network related to bandwidth acquisitions. The market is still moving a lot. That's really important to understand. Even in this scenario, we have been able to grow in the margin in service revenues, keeping up ARPU's steady growth in ARPU.
If you compare for the last two years, we have been able at least to cope for inflation in these two years while keeping expenses down. That has been the key to really keep a stable EBITDA margin that is being dragged down temporarily because of the expansion in fiber. That's mainly the thing that I want to note. We have been able to really swim in these waters that are really a turmoil pretty successfully, I would say. Although the cash flow has been tight, we have also been able to finance the company, refinance some amortizations that are key for the future. We're very, very happy with that.
CapEx also, as I noted at the beginning, we have been also managing very cautiously, very responsibly the aggressiveness of our CapEx, not only in mobile, but also in fiber, trying to really be careful in terms to balance our cash flow, really focus the investment where we see the value, where the most value for our customers, also where the most margin for the company is located. That's why we are focusing in certain areas in Lima, really focusing in certain specific regions of higher values outside Lima, and still improving our network in Chile. That's very important. Those are the main keys of our focus today in this moving environment. This has allowed us to keep and maintain our investment grade, which is really important for us and ensure our financial sustainability and funding for the coming years. As I already mentioned, fiber, we will continue to grow.
We will continue to grow in Chile, and we have a plan to grow in Peru, beginning in any month of 2026. We're really making efforts to make that happen, but always grow really carefully, watching for keeping expenses, being very careful with the cash deployment, basically, and CapEx. I would say that summarizes where we're at, the strategy, how we are dealing with this environment, and before going to the open questions. That's it.
Thank you, Marcelo. Now we will move to the questions. Please, you can send it through the chat, and we will wait a couple of minutes. We have a first question from Andrés Coelho. Hi, can you comment on the competitive environment in Peru now that the new entrant has operated for around six months? Are you interested in buying Telefónica in Chile? Thanks. Thank you, Andrés, for your question. Regarding the competitive environment, as I comment, over the first six months of this year, what we have seen is that all the industry has faced the effects of the anti-spam laws. In most cases, there was not much change regarding Telefónica with this new controller that it has. They still are offering promotions and discounts. What we have seen is that they've been reducing and decreasing their service revenue share in equipment and handsets.
Over the rest, we have seen that it's declining and mainly on the trend that we have seen over the last year.
I can answer the interest in Peru. It's very relevant to know that Integra Tech, Integratel, which is called today, is actually not necessarily a long-term operator. There could be interest at some point in really divesting that operation in Peru. We're always looking for opportunities. We cannot rule that out, not only in Peru, but also in Chile. In Chile, it's tougher because of the regulation. The only thing I can say is that we always are looking and analyzing different alternatives, not only in Chile, but also in Peru. We will continue to do that. Hopefully, we get some results, but it depends on the analysis and authorization of the different authorities.
Thank you. We have another question from Fernand Gonzalez. What is the cost of providing direct-to-cell service to each client?
Yeah, we cannot comment on the details of that contract, but what I can tell you is that we have already paid the part of that contract. It's already as an asset, and we will start to amortize that asset when we start the service provision. The details on the cost per user, I cannot really answer that. What I do can say in this matter is that as soon as we get the authorization, we have already a different set of alternatives to monetize that directly and indirectly. Hopefully, we will be really tapping and getting a competitive advantage, at least for a while, against the other operators. This is a service approach that is really, the customers are waiting for it, and we know that it will be very successful. We have a commercial plan of deployment and monetization.
Can you go up, please? We have two more questions. We have two questions regarding our capital market access. Could you please comment on your capital market access plans, including refinancing the upcoming maturity of 2026? What is the refinancing upcoming maturities?
Yeah, I can answer that, Paula. There is already a plan in process to refinance. We already just paid at the beginning of August, a few days ago, one of the amortizations of that bond, which was $180 million. The second amortization, the last one, which is in August 2026, we are expected to refinance that during this month of September. This signal already? Okay, yeah. It's well. The way we have a really short disruption session. I will repeat it. We are already planned and in the process of refinancing the bond amortization that is due in August 2026. This September 2025, we already have the financing. We went to the market. I will go in detail, but basically, we have secured roughly a little bit below $500 million of financing in average six years bullet, if you consider all the different alternatives.
We're using that secured finance to refinance the next year amortization plus other general uses. What you see is that already in the next financial quarter, the financial statements of September, we will have all that already refinanced to the long term. During this process, which is really interesting, during this process of going to the market, basically, I'm talking about the bank market, national and international bank facilities. We also were able to get non-committed lines for roughly $380 million on top of the funding I already mentioned we have secured. We see that in general, besides going at the beginning of the year to the local bond market, going to the local and international bank system with tenors that are pretty good, six-year bullets at very good rates also, it's really showing that still the financial community is backing the prospect growth of Entel.
We haven't tapped yet the international bond market, which is always available for different alternatives that might happen in the coming month of year.
Thank you, Marcelo. We have another question for Victor Tomita. On the new identification regulation in Chile, we were wondering if this was more relevant for volumes or also on the revenue side. Looking at revenue from mobile services specifically that decelerated this quarter, would you say that that has more to do with regulation or with the impact of discounts and competition on postpaid ARPU?
Regulation or with the impact of discount competition on postpaid ARPU?
It's more the second one.
Yes. It's a tough question. I would say the regulation or the rules for that regulation in Chile is just to avoid misuse of the different plans and SIM cards and all the fraud that it was occurring. Going forward, since that the regulation was passed and was implemented, what we would see, I would guess, is it will reduce the churn rate or the revolving rate among the different industry operators. That may have an impact or stabilize net pricing. I would say the aggressiveness of discount could be, at a certain extent, reduced. I don't think it would be very relevant, but I think that that might occur at a certain extent. In terms of ARPU, what we have seen is we've seen a positive trend, although the last measure of the last quarter is a little bit below what we had because of some level of competition.
We see coming forward possibilities to really at least pass every year figures similar to inflation to our pricing. I'm pretty confident that this regulation would also help a little bit in the margin to improve that ARPU going forward.
We have another question from Victor. Also, could you give some extra color on what kind of discounts and promotions have been getting more common in the market, if there are discounts for portability or discounts for the first 12 months or bundle with handsets, for example? How have you been thinking in terms of balancing customer acquisition discounts versus profitability? This is mainly on fiber.
You can go with it, Paula, if you want. It's on fiber.
This is mainly on, I would say, Victor, on fiber business. What we have been doing, as also as we mentioned during the first quarter, is that we have moved discounts from six months to 12 months, with a lower amount of discounts for more in the range of 20% of discounts for the first 12 months. These actions have allowed us also to improve in better quality of customer acquisitions. Here also in Chile, we are not allowed to bundle offers with mobile. It is also discounts and promotions in the fixed business.
Yeah. I will provide some other, just in fixed, what Paula was referring to. We saw the last several quarters that the bill shock that customers experienced once the initial discount, six months discount, was over, was really one of the main reasons for the higher churn rates we were getting. The strategy there was to reduce the discount by reducing a little bit the discount in terms of percentage, but also making it go from six months to 12 months.
We had a lower bill shock after that was over. If the question also was touching a little bit the mobile services, really, we don't do much bundling with handsets. These are different businesses we can do. We cannot do bundling in Chile, although in Peru it's allowed. Mainly our discounts are targeted to certain, really certain price segments and not very massive in our mobile customer base. We always try to go to more higher income segments, more really pricing brackets where we really can make a difference given our service that we provide. We do not compete a lot with discounts in the lower, in the lower part of the pricing table.
Although we are with certain strategies, with additional lines and competing in that area, we try to be very cautious not to work a lot in that area and focus on what is our competitive advantage, which is service in the most, the value customers we have.
Also, we have another question. Could you please comment if the competition environment in Chilean mobile persists in the third quarter of this year? What we have seen, we only have July ended internal figures, but what we have seen is that Entel has maintained between the 33% and the 35% net share of the growth in postpaid. What we have seen is that we've been a little bit increasing our net ads during this beginning of the third quarter. Also, there's another question. Can the regulatory changes in Peru anti-spam led to a structural decline in churn rates and challenge your longer-term market share goal?
I can answer that. Yeah, you're right. That's a challenge given that we're not the leading player in Peru. If we add this regulation in Chile, it would be different, I guess. Since we're the new entrant and we are challenging the leader in Peru, this is a regulation that makes it harder for sure. The way we compete in Peru, similar to Chile, is by really having the best network. We're really focusing on having the best network in every area of Lima and also being a very strong competition to the leader in the main cities, also Lima. Despite normally all this regulation and the revolving market is in a certain segment of the pricing scheme, that is where we try not to compete in the lower part of the bracket. We will continue to grow. We need to grow.
We're trying to balance growth, capturing these three, four additional points of revenue shares in the coming years. For sure, that is harder when we are trying not to really go into the lower price segments, you know, to the middle to upper one. The way to do it is really going to high-value customers, having the best network and providing services like, for example, Starlink that makes a difference. That's the strategy. We're not really going deep in the segment that we're not really making a difference because it's more price than quality. That's not our main goal.
Yes. We have a final question. Are these CLP loans? What kind of rates did you get?
Yeah, inevitably, we're taking all these in nominal pesos or swapped those loans to nominal pesos. As a whole, I would say overall Chilean pesos is 6.48. It's a little bit below 6.5 as a blended average of the different alternatives. We are taking, I will mention really shortly, it's one local bank, one large international bank, and also we are doing the recoupling of an existing cross-currency swap related to a bond expiring in 2032. The combined rate of that is in the range of 6.5% in pesos, a little below that.
Thank you. That concludes our questions and conference call presentation. Before this, I would like to cordially invite you to participate in our next Investor Day that is going to be held on October 23 in Santiago. In the coming days, we will send you a formal invitation and more information about this important event. Thank you so much for joining us today and have a good day.
Thank you.
Bye.