Cia de Telecom de Chile SA (ADR) (CTMCY.PK)
The Company provides a range of telecommunications and other services throughout Chile.
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metro has extended to mexico!
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makes sense, every year the nations of the world become more "connected." And this company sells the stuff to do that, plus they seem to have the ability to make contracts to do it.
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I believe with improvement in the US economy, more dollars and commerce will flow to Chile, improving their business climate. In addition the wealth effect for Chileans will free up cash to buy broadband, pay TV and business creation will require more telephone lines. However, I think land lines will decrease due to more mobile phone only service in households and CTC is out of the mobile phone market.
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well 2 of my other picks --(coin) & (tisi) where not excepted & are good picks i put this one in.
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Compania de Telecomunicaciones de Chile S.A. provides a range of telecommunications and other services to individuals and companies in Chile.
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Understanding the guide to growth can no more be fixed-line, is what Telefónica CTC Chile has understood. Chile’s largest fixed-line telephone company is rapidly diversifying its business to broadband and pay-television services. Company recently announced its plans to invest $221 million in 2007 in its broadband and pay-television services in a bid to recast the company as a multi-service provider. The CEO said its strategy is to invest two of every three dollars toward growing the company's broadband and television businesses and the packaging of those services.
For the three months ended March 2007, revenues decreased by 1% due to lower proceeds from basic telephone services, long distance and corporate communications. Net income increased by 40% benefited from significantly lower other non-operating expense, reduced goodwill & interest expense, increased interest income offsetting reduced gross margin. Broadband business showed positive signs, but it was not enough to offset the decline in the fixed line telecommunications and corporate business areas, which have been hit by rapid growth in mobile phone services and increasing competition.
Company’s average number of lines in service is continuously declining, but the TV customers and ADSL connections are on a sharp rise. A recent growth in paid television was noteworthy, where it attained a 10% market share after only six months, which it projects to be in the range of 15 to 20 % by the end of 2007. Internet and paid television along with service packages represented 69 % of the company’s sales of $1.08 billion last year, which is estimated between 80 to 85 % of sales for the coming year.
CTC has recently planned to change its policy, which calls for 100% of net profit to be paid in dividends. This change would enable company to retain more cash which could be utilized for further growth. The company is generating free cash flow and reducing debt to improve financial stability. Although the company has not done convincingly well during recent times, the outlook still seems attractive given the diversification strategy falls in place.
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They are paying off their debt quickly, have stabilized their business costs, and seem to be turning a corner.
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It got a good rally, buy competition is fierce. Local investors do not like it. Ratios not very appealing
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Company has restructed itself, and is now ready to attain its profit potential, with a growing economy
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beaten down, great yield
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went back and forth between this and NZT before ultimately deciding NZT was a better choice at the time. Now, I think CTC would be better
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Include dividends in this call
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one word "dividend"

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