Telecom Argentina S.A. announces consolidated annual results ("FY21") and fourth quarter of fiscal year 2021 ("4Q21")**
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.
- Net income of P$9,940 million for FY21 (vs. loss of P$8,626 million in FY20)
- Mobile customers increased by 1.7 million to 20.1 million
- Broadband accesses grew by 89,000 to 4.2 million
- Reduced net financial debt by 11.2% to P$236,286 million
- Consolidated revenues decreased by 6.5% to P$425,493 million
- Service revenues fell by 7.7% to P$395,697 million
- Operating income decreased by 14.5% to P$132,767 million
BUENOS AIRES, March 9, 2022 /PRNewswire/ --
Note: For the figures included in their FFSS, the Company has accounted for the effects of inflation adjustment adopted by Resolution 777/18 of the Comisión Nacional de Valores ("CNV"), which establishes that the restatement will be applied to the annual financial statements, for intermediate and special periods ended as of December 31, 2018 inclusive. Accordingly, the reported figures corresponding to FY21 include the effects of the adoption of inflationary accounting in accordance with IAS 29. Finally, comments related to variations of results of FY21 and vs. FY20 mentioned in this press release correspond to "figures restated by inflation" or "constant".
- For comparative purposes, it is important to highlight that the results adjusted by inflation corresponding to December 2020 contain the effect of the year over year inflation as of December 2021, which amounted to
50.9% . - Consolidated Revenues amounted to P
$425,493 million in FY21. Service Revenues totaled P$395,697 million (-7.7% in constant currency vs. FY20), in a context where inflation is still high. Service revenues for 4Q21 totaled P$95,735 million (-1.9% in constant currency vs 4Q20). - Mobile clients in Argentina reached 20.1 million in FY21 (+1.7 million vs. FY20), cable TV subscribers totaled approximately 3.6 million (+17 thousand vs. FY20), while broadband accesses amounted to almost 4.2 million (+89 thousand vs. FY20). Consequently, all these segments have verified an increase in the number of clients versus 2020.
- Operating Income before Depreciation and Amortization amounted to P
$132,767 million in FY21 (-14.5% vs. FY20). - The Company's Net Income amounted to P
$9,940 million in FY21 (vs. a loss of$7,704 million in FY20). Net financial results were positive and totaled P$45,649 million , which were partially offset by an income tax expense of$33.31 7 million. - Investments (including rights of use assets) reached P
$103,704 million in FY21, equivalent to24.4% of Consolidated Revenues. - Net Financial Debt amounted to P
$236,286 million in FY21 (-11.2% in constant currency vs. FY20).
*Market Cap as of March 8th, 2022
**Unaudited non financial data
(in million P$ adjusted by inflation, except where noted)** | IAS 29 | IAS 29 | ||||||
As of December 31, | As of December 31, | Δ $ | Δ % | |||||
2021 | 2020 | |||||||
Consolidated Revenues | 425,493 | 455,234 | (29,741) | - | ||||
Operating Income before D&A | 132,767 | 155,301 | (22,534) | - | ||||
Operating (loss) Income | (2,787) | 30,632 | (33,419) | - | ||||
Net income before income tax expense | 43,257 | 4,750 | 38,507 | - | ||||
Net income (loss) attributable to Controlling Company | 8,665 | (8,626) | 17,291 | - | ||||
Shareholders' equity attributable to Controlling Company | 541,423 | 577,285 | (35,862) | - | ||||
Net Financial Debt | (236,286) | (266,225) | 29,939 | - | ||||
Investments in PP&E, intangible assets & rights of use assets * | 103,704 | 100,755 | 2,949 | |||||
Fixed lines in service (in thousand lines) *** | 2,417 | 2,821 | (404) | - | ||||
Mobile customers (in thousand) | 22,348 | 20,649 | 1,699 | |||||
Personal (Argentina) | 20,130 | 18,433 | 1,697 | |||||
Núcleo (Paraguay) -including Wimax customers- | 2,218 | 2,216 | 2 | |||||
Broadband accesses in Argentina (in thousand) | 4,248 | 4,158 | 89 | |||||
Pay TV Subscribers (in thousand) | 3,563 | 3,546 | 17 | |||||
Average Billing per user (ARBU) Fixed Telephony / voice (in P$ - Restated by inflation) | 777.2 | 866.9 | (89.7) | - | ||||
Average Revenue per user (ARPU) Mobile Services - Personal (in P$ - Restated by inflation) | 617.0 | 658.4 | (41.4) | - | ||||
Average Revenue per user (ARPU) Broadband (in P$ - Restated by inflation) | 1,727.1 | 1,918.5 | (191.4) | - | ||||
Average Revenue per user (ARPU) Cable TV (in P$ - Restated by inflation) | 1,883.2 | 2,086.3 | (203.1) | - | ||||
* (in constant measuring unit – includes | ||||||||
**(Figures may not sum up due to rounding) | ||||||||
*** (does not include IP telephony lines, which as of December 31, 2021 amounted to approximately 721 thousand) |
Telecom Argentina S.A. ('Telecom Argentina') - (NYSE: TEO; BYMA: TECO2), announced today a net income of P
It is worth mentioning that the comparative figures for the previous fiscal year have been restated so that the resulting comparative information is presented in terms of the current measurement unit as of December 31, 2021.
The following table shows the evolution of the consumer price index (National CPI - according to INDEC's official statistics) for the last two fiscal years and as of December 31, 2020 and 2021, which were used to restate the figures in constant currency:
As of December 31, 2019 | As of December 31, 2020 | As of December 31, 2021 | |
Price Index Variation | |||
Annual | |||
3 month cumulative | n/a | n/a |
During FY21, Consolidated Revenues amounted to P
Consolidated Operating Revenues
Mobile Services
As of December 31, 2021, total mobile clients in Argentina and Paraguay amounted to 22.3 million. In FY21, total mobile services revenues represented P
Mobile Services in Argentina
As of December 31, 2021, total mobile subscribers amounted to more than 20.1 million (+1.7 million vs. FY20). Postpaid clients represented
In FY21, mobile service revenues in Argentina amounted to P
Commercial Initiatives
During the fourth quarter, the deployment of the first 5G networks continued. 10 mobile sites were deployed in the Atlantic Coast and in the cities of Mar del Plata, Pinamar, and Cariló.
Personal Pay (Personal's virtual wallet) concluded the first stage of its beta development and its app is now available for Android users, including a wide range of benefits and discounts.
Personal increased the data quota in certain high-end postpaid mobile plans (from 12 to 15GB and from 20 to 25GB) with no additional cost to customers, allowing an increased consumption of data through the internet.
Personal in Paraguay ('Núcleo')
As of December 31, 2021, Núcleo's subscriber base reached 2.2 million clients. Prepaid and postpaid customers represented
Núcleo´s mobile service revenues during FY21, amounted to P
Cable TV Services
Cable TV service revenues reached P
Flow continued to strengthen its content offer, incorporating new products mainly in music, national and international productions, and gaming.
Fixed Telephony and Data Services
Revenues generated by fixed telephony and data reached P
As a result, the monthly fixed voice ARPU (restated in constant currency as of December 31, 2021) reached P
Two new services were launched during the last part of 2021:
- Virtual Assistant, a solution designed to enhance the digital evolution, processes and automation of customer service of each company, and
- Google Workspace, a suite of productivity apps and tools to streamline workflows, reduce task duration, and improve team productivity.
The 2021 "Telecom SummIT" closed with two final editions focused on the topics of Cybersecurity and Multicloud Solutions.
Internet Services
Internet services revenues totaled P
Additionally, broadband ARPU (restated in constant currency as of December 31, 2021) amounted to P
The average monthly churn rate for the FY21 was
Revenues from equipment sales
Equipment revenues amounted to P
Consolidated Operating Costs
Consolidated Operating Costs (including D&A and impairment of fixed assets) totaled P
Costs breakdown was as follows:
- Employees benefits and severance payments: P
- Interconnection and transmission costs (including roaming, international settlement charges and lease of circuits) totaled P
- Fees for services, maintenance, materials and supplies: P
- Taxes and fees paid to regulatory authorities: P
- Commissions and advertising (commissions paid to agents, collection fees and other commissions): P
- Cost of handsets sold: P
- Programming and content costs: P
- Other Costs totaled P
Our bad debt ratio was
Other operating costs (including charges for lawsuits and other contingencies, energy and other public services, insurance, rents and internet capacity) totaled P
- Depreciation, amortization and impairment of fixed assets amounted to P
Net Financial Results
Net Financial Results (including Financial Expenses on Debt and Other Financial Results) generated an income of P
in million of P$ | FY20 | FY21 | Var |
FX results | (2,943) | 53,740 | 56,683 |
RECPAM | 8,450 | 17,163 | 8,713 |
Net Interests | (22,784) | (17,579) | 5,205 |
Debt refinancing results | (5,198) | (2,152) | 3,046 |
Results of investments | 1,411 | 1,420 | 9 |
Others | (5,567) | (6,943) | (1,376) |
Total | (26,631) | 45,649 | 72,280 |
Income Tax
Income tax loss amounted to P
Consolidated Net Financial Debt
As of December 31, 2021, our net financial debt (cash, cash equivalents plus financial investments and financial NDF & interest rate swaps minus loans) totaled P
Investments in PP&E, intangible assets and rights of use assets
During FY21, the Company invested (including rights of use assets) P
- Projects related to the expansion of TV and internet services to improve our transmission and access speeds.
- Deployment and modernization of our 4G access mobile sites, supporting the growth in our coverage of our mobile network.
- Extension of our transmission and transport networks in order to unify the different access technologies. We consolidated the deployment of last-mile networks with FTTH (Fiber to the home) architecture thus improving the possibility of offering high-speed services.
- Investments in our customer contact systems.
Relevant Financing Matters
IFC and IDB loans refinancings
On December 15, 2021, we refinanced the loan with the International Finance Corporation ("IFC") dated October 5, 2016, for a total amount of US
The outstanding amount as of December 31, 2021 for said loan was US
We also refinanced the two loan agreements entered into between the Company and the Inter-American Investment Corporation, acting on its own behalf and as agent of the Inter-American Development Bank:
(i) loan agreement dated April 7, 2017, for a total amount of US
(ii) loan agreement dated May 29, 2019, for a total amount of US
Debt maturing in 2022 and 2023 was extended to years 2024 and 2027. The outstanding amount as of December 31,2021 for these two loans was US
Export credit line guaranteed by Export Development Canada (EDC).
On January 3, 2022, we closed an export credit line for a total amount of US
The Facility will be guaranteed by the Export Development Canada ("EDC"), subject to the terms and conditions established by EDC.
The proceeds of the loans made under the Facility will be used to:
(A) finance up to
(B) finance up to
(C) the payment of the applicable premium due to EDC.
Issuance of Class 12 and 13 Local Notes
Class 12
Issuance Date: March 9, 2022.
Amount Issued: US
Maturity Date: March 9, 2027.
Amortization: Bullet.
Interest Rate and payments:
Class 13
Issuance Date: March 9, 2022.
Amount Issued: P
Maturity Date: September 9, 2023.
Amortization: Bullet.
Interest Rate and payments: BADLAR +
Telecom Argentina is a leading telecommunications company in Argentina, where it offers, either itself or through its controlled subsidiaries local and long distance fixed-line telephony, cellular, data transmission, and pay TV and Internet services, among other services. Additionally, Telecom Argentina offers mobile, broadband and satellite TV services in Paraguay and pay TV services in Uruguay. The Company commenced operations on November 8, 1990, upon the Argentine government's transfer of the telecommunications system in the northern region of Argentina.
As of December 31, 2021, Telecom Argentina had 2,153,688,011 shares issued and outstanding.
For more information, please contact Investor Relations:
Fernando Balmaceda (5411) 4968 5222 | Luis Fernando Rial Ubago (5411) 5112 7218 | Tomás Pellicori (5411) 5524 7692 |
For information about Telecom Argentina's services, visit:
www.telecom.com.ar
www.personal.com.ar
www.personal.com.py
Disclaimer
This document may contain statements that could constitute forward-looking statements, including, but not limited to (i) the Company's expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; (ii) the continued synergies expected from the merger between the Company and Cablevisión S.A. (or the Merger); (iii) the implementation of the Company's business strategy; (iv) the changing dynamics and growth in the telecommunications and cable markets in Argentina, Paraguay, Uruguay and the United States; (v) the Company's outlook for new and enhanced technologies; (vi) the effects of operating in a competitive environment; (vii) the industry conditions; (viii) the outcome of certain legal proceedings; and (ix) regulatory and legal developments. Forward-looking statements may be identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "will," "may" and "should" or other similar expressions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. In addition, certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Many factors could cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by forward-looking statements. These factors include, among others: (i) the Company's ability to successfully implement our business strategy and to achieve synergies resulting from the Merger; (ii) the Company's ability to introduce new products and services that enable business growth; (iii) uncertainties relating to political and economic conditions in Argentina, Paraguay, Uruguay and the United States, including the policies of the new government in Argentina; (iv) the impact of political developments, including the policies of the new government in Argentina, on the demand for securities of Argentine companies; (v) inflation, the devaluation of the peso, the Guaraní and the Uruguayan peso and exchange rate risks in Argentina, Paraguay and Uruguay; (vi) restrictions on the ability to exchange Argentine or Uruguayan pesos or Paraguayan guaraníes into foreign currencies and transfer funds abroad; (vii) the impact of currency and exchange measures or restrictions on our ability to access the international markets and our ability to repay our dollar-denominated indebtedness; (viii) the creditworthiness of our actual or potential customers; (ix) the nationalization, expropriation and/or increased government intervention in companies; (x) technological changes; (xi) the impact of legal or regulatory matters, changes in the interpretation of current or future regulations or reform and changes in the legal or regulatory environment in which the Company operates, including regulatory developments such as sanctions regimes in other jurisdictions (e.g., the United States) which impact on the Company's suppliers; (xii) the effects of increased competition; (xiii) reliance on content produced by third parties; (xiv) increasing cost of the Company's supplies; (xv) inability to finance on reasonable terms capital expenditures required to remain competitive; (xvi) fluctuations, whether seasonal or in response to adverse macro-economic developments, in the demand for advertising; (xvii) the Company's ability to compete and develop our business in the future; (xviii) the impact of increased national or international restrictions on the transfer or use of telecommunications technology; and (xix) the impact of the outbreak of COVID-19 on the global economy and specifically on the economies of the countries in which we operate, as well as on our operations and financial performance. Many of these factors are macroeconomic and regulatory in nature and therefore beyond the control of the Company's management. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended, planned or projected. The Company does not intend and does not assume any obligation to update the forward-looking statements contained in this document. These forward-looking statements are based upon a number of assumptions and other important factors that could cause our actual results, performance or achievements to differ materially from our future results, performance or achievements expressed or implied by such forward-looking statements. Readers are encouraged to consult the Company's Annual Report on Form 20-F and the periodic filings made on Form 6-K, which are periodically filed with or furnished to the United States Securities and Exchange Commission, as well as the presentations periodically filed before the Argentine Securities and Exchange Commission (Comisión Nacional de Valores) and the Buenos Aires Stock Exchange (Bolsas y Mercados Argentinos), for further information concerning risks and uncertainties faced by the Company.
Contacts: Fernando Balmaceda (5411) 4968 5222 Luis Fernando Rial Ubago (5411) 5112 7218
| Market Cap (NYSE: TEO): US
|
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SOURCE Telecom Argentina S.A.