Telecom Argentna - TEO STOCK NEWS

Telecom Argentina (NYSE: TEO) has submitted its 2022 Annual Report on Form 20-F to the U.S. Securities and Exchange Commission (SEC) on March 20, 2023. The report contains audited financial statements as of December 31, 2022, and is available on the Company's Investor Relations website and the SEC site. The company has 2,153,688,011 issued and outstanding shares as of the end of 2022. Shareholders can request a hard copy of the report at no charge. The release includes a disclaimer about forward-looking statements and potential risks affecting future performance.

Cablevisión Holding S.A. (BCBA:CVH, LSE:CVH, Level 1: CVHSY), the controlling shareholder of Telecom Argentina S.A. (NYSE:TEO), announced its Full Year and Last Quarter 2022 Results on March 10, 2023. Total Revenues declined by 12.0% year-on-year to Ps. 729,182 million amid high inflation of 94.8%. EBITDA fell 22.6% to Ps. 199,796 million, leading to a reduced EBITDA Margin of 27.4%. The company reported a substantial Net Loss of Ps. 168,757 million, largely due to a goodwill impairment loss of Ps. 204,744 million. Despite a lower cost structure, the financial results reflect ongoing economic challenges in Argentina.

Telecom Argentina (TEO) reported a significant net loss of P$205,640 million for FY22, a stark contrast to a net income of P$19,362 million in FY21. The company’s consolidated revenues declined by 12% to P$729,182 million, driven by inflation and reduced service revenues of P$680,561 million. Operating income before depreciation decreased by 22.5% to P$200,380 million, reflecting an operating margin of 27.5%. The loss was primarily attributed to a goodwill impairment of P$243.9 million. Despite adding 116,000 mobile clients, cable TV and broadband accesses saw considerable declines. Financial metrics showed a decrease in shareholder equity by 24.5%. Investments dropped 27.1%, reaching P$147,266 million.

Telecom Argentina reported a significant net loss of P$205,640 million for FY22, a sharp decline from a net income of P$19,362 million in FY21. The loss was largely attributed to a goodwill impairment of P$243.9 billion. Consolidated revenues decreased by 12.0% to P$729,182 million, with service revenues down 11.7%. Operating income fell 22.5%, and the operating margin was 27.5%. The company's net financial debt decreased by 8.7% to P$420,446 million, while investments dropped 27.1%. Mobile clients rose to 20.2 million, but broadband accesses and cable TV subscribers declined.

Telecom Argentina reported a net loss of P$163,498 million for the first nine months of 2022, significantly down from a profit of P$1,876 million in 2021. Consolidated revenues decreased by 12.2% to P$470,960 million, with service revenues at P$440,369 million.

Key metrics included a decrease in operating income before D&A by 22.6% and a goodwill impairment of P$207,940 million due to market conditions.

Mobile clients increased by 0.5 million, while broadband accesses fell by 30,000. Investments totaled P$85,664 million, equating to 18.2% of consolidated revenues.

Telecom Argentina reported a net income of P$31,879 million for 1H22, a significant recovery from a net loss of P$2,742 million in 1H21. However, consolidated revenues dropped by 10.4% to P$264,577 million, attributed to high inflation. Service revenues also decreased by 9.7% to P$247,527 million. Mobile customers grew to 20.1 million, while cable TV subscribers fell to 3.5 million. Operating income before depreciation decreased by 19.5%. Investments in the period reached P$45,219 million, accounting for 17.1% of revenues. Net financial debt slightly increased by 0.5% to P$312,116 million.

Telecom Argentina (NYSE: TEO) reported a significant net income of P$23,745 million for Q1 2022, marking a 69.9% increase year-over-year. However, consolidated revenues dropped to P$117,372 million, an 8.3% decrease in constant currency compared to Q1 2021. Service revenues also fell by 8.6%, totaling P$109,378 million. Despite a rise in the number of mobile clients and broadband accesses, operating income before depreciation dropped by 12.7% to P$40,691 million. The company’s net financial debt decreased by 12.4%, reaching P$251,888 million, as investments declined by 38% to P$18,783 million.

Cablevisión Holding S.A. (BCBA:CVH; LSE:CVH), the controlling shareholder of Telecom Argentina S.A. (NYSE:TEO), reported its 2021 financial results showing a 6.5% decline in total revenues to Ps. 425,493 million compared to 2020. The decrease is attributed mainly to lower earnings from fixed telephony, mobile, cable TV, and internet services, with inflation rising 50.9% over the same period. EBITDA fell 14.5% to Ps. 132,482 million, resulting in a lower EBITDA margin of 31.1%. Consolidated net income was Ps. 10,252 million, showing a significant improvement from a loss in the previous year.

Telecom Argentina reported a net income of P$9,940 million for FY21, recovering from a loss of P$8,626 million in FY20. Consolidated revenues were P$425,493 million, down 6.5% year-over-year, with service revenues at P$395,697 million (-7.7%). Mobile users increased by 1.7 million to 20.1 million, while broadband accesses rose by 89,000 to 4.2 million. However, operating income fell 14.5% to P$132,767 million. The company reduced net financial debt by 11.2% to P$236,286 million, emphasizing operational resilience amidst inflationary pressures.