Chile's largest fixed-line telephone company, Telefonica Chile, said late on Monday its first-half net profit fell 33.1% year-on-year due to higher commercial costs and flat revenue.
Telefonica Chile, a unit of Spain's Telefonica, said in a statement it made a net profit of 4.84 billion pesos ($9.1 million) in the six months to the end of June.
Operating costs rose 4.3% compared to the same period a year earlier, while administrative costs climbed 9.3%.
Revenue totalled 294.2 billion pesos, up 0.4% from a year earlier.
Telefonica has said reduced performance by its traditional fixed-line business is due to a rise in the use of mobile phones and Internet communications.
It is counting on its broadband and paid-television services to drive future growth.
The telephone company said last month it had captured 14% of the local paid television market, one year after entering the market, and was aiming for a 17% share by the end of 2007.
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