Telecom Argentina S.A. Announces Consolidated Results for the First Half ("1H24") and Second Quarter of Fiscal Year 2024 ("2Q24")**
Telecom Argentina (NYSE: TEO) announced its 1H24 and 2Q24 results, highlighting key financial metrics and operational performance. Consolidated Revenues for 1H24 were P$1,666,979 million, a decrease of 13.3% compared to 1H23. Service Revenues totaled P$1,572,594 million, down 11.7% year-over-year. The company noted high inflation, impacting performance.
Mobile accesses in Argentina increased to 21.2 million, while broadband and Pay TV subscribers saw slight declines. Operating Income before D, A & I margin improved to 29.7% in 1H24 and 29.1% in 2Q24.
Net income soared to P$859,223 million, driven primarily by exchange rate gains. Investments amounted to P$315,946 million, representing 19% of revenues. Net Financial Debt decreased by 34.2% in real terms to P$2,189,225 million.
Despite a challenging economic environment, there was a noted recovery trend in Service Revenues in 2Q24. The company remains focused on expanding its 4G and 5G networks and improving broadband services.
Telecom Argentina (NYSE: TEO) ha annunciato i risultati del 1H24 e del 2Q24, evidenziando i principali indicatori finanziari e le performance operative. Il Fatturato Consolidato per il 1H24 è stato di P$1.666.979 milioni, con una diminuzione del 13,3% rispetto al 1H23. Le Entrate da Servizi ammontano a P$1.572.594 milioni, in calo dell'11,7% rispetto all'anno precedente. L'azienda ha notato un'alta inflazione, che ha impattato le performance.
Gli accessi mobili in Argentina sono aumentati a 21,2 milioni, mentre gli abbonamenti alla banda larga e alla Pay TV hanno registrato lievi flessioni. Il Margine di Reddito Operativo prima di D, A & I è migliorato al 29,7% nel 1H24 e al 29,1% nel 2Q24.
Il reddito netto è salito a P$859.223 milioni, sostenuto principalmente da guadagni sulle variazioni dei tassi di cambio. Gli Investimenti hanno raggiunto P$315.946 milioni, pari al 19% delle entrate. Il Debito Finanziario Netto è diminuito del 34,2% in termini reali, scendendo a P$2.189.225 milioni.
Nonostante un ambiente economico difficile, è stata notata una tendenza al recupero nei Ricavi da Servizi nel 2Q24. L'azienda rimane concentrata sull'espansione delle sue reti 4G e 5G e sul miglioramento dei servizi di banda larga.
Telecom Argentina (NYSE: TEO) anunció sus resultados de 1H24 y 2Q24, destacando los principales indicadores financieros y el rendimiento operativo. Los Ingresos Consolidados para 1H24 fueron de P$1.666.979 millones, una disminución del 13,3% en comparación con 1H23. Los Ingresos por Servicios totalizaron P$1.572.594 millones, con una caída del 11,7% interanual. La compañía señaló una alta inflación, que afectó su desempeño.
Los accesos móviles en Argentina aumentaron a 21,2 millones, mientras que los suscriptores de banda ancha y de TV paga vieron ligeras caídas. El Margen de Ingresos Operativos antes de D, A & I mejoró al 29,7% en 1H24 y al 29,1% en 2Q24.
El ingreso neto se disparó a P$859.223 millones, impulsado principalmente por ganancias del tipo de cambio. Las Inversiones alcanzaron P$315.946 millones, lo que representa el 19% de los ingresos. La Deuda Financiera Neta disminuyó un 34,2% en términos reales, a P$2.189.225 millones.
A pesar de un entorno económico desafiante, se observó una tendencia de recuperación en los Ingresos por Servicios en 2Q24. La empresa sigue centrada en expandir sus redes 4G y 5G y mejorar los servicios de banda ancha.
텔레콤 아르헨티나 (NYSE: TEO)는 1H24 및 2Q24 실적을 발표하며 주요 재무 지표와 운영 성과를 강조했습니다. 통합 수익은 1H24에 P$1,666,979 백만으로, 1H23과 비교해 13.3% 감소했습니다. 서비스 수익은 P$1,572,594 백만으로, 연간 기준 11.7% 감소했습니다. 회사는 높은 인플레이션이 성과에 영향을 미쳤다고 언급했습니다.
아르헨티나의 모바일 가입자는 2,120만 명으로 증가했으며, 브로드밴드 및 유료 TV 가입자는 약간 감소했습니다. D, A & I 전 운영 소득 마진은 1H24에 29.7%, 2Q24에 29.1%로 개선되었습니다.
순이익은 P$859,223 백만으로 급증했으며, 주로 환율 이익에 의해 추진되었습니다. 투자는 P$315,946 백만에 달해 수익의 19%를 차지했습니다. 순 금융 부채는 실질 기준으로 34.2% 감소하여 P$2,189,225 백만이 되었습니다.
어려운 경제 환경에도 불구하고, 2Q24에서는 서비스 수익의 회복 추세가 감지되었습니다. 회사는 4G 및 5G 네트워크 확장과 브로드밴드 서비스 향상에 집중하고 있습니다.
Telecom Argentina (NYSE: TEO) a annoncé ses résultats pour le 1H24 et le 2Q24, mettant en lumière les principaux indicateurs financiers et la performance opérationnelle. Les Revenus Consolidés pour le 1H24 s'élevaient à P$1.666.979 millions, en baisse de 13,3% par rapport au 1H23. Les Revenus de Services totalisaient P$1.572.594 millions, soit une diminution de 11,7% d'une année sur l'autre. L'entreprise a noté une forte inflation, impactant sa performance.
Les accès mobiles en Argentine ont augmenté à 21,2 millions, tandis que les abonnements à la large bande et à la télévision payante ont légèrement diminué. La marge de Revenu Opérationnel avant D, A & I s'est améliorée à 29,7% au 1H24 et à 29,1% au 2Q24.
Le revenu net a grimpé à P$859.223 millions, principalement grâce à des gains de change. Les Investissements ont atteint P$315.946 millions, représentant 19% des revenus. La Dette Financière Nette a diminué de 34,2% en termes réels, pour atteindre P$2.189.225 millions.
Malgré un environnement économique difficile, une tendance à la reprise des Revenus de Services a été observée au 2Q24. L'entreprise reste axée sur l'expansion de ses réseaux 4G et 5G et l'amélioration des services de large bande.
Telecom Argentina (NYSE: TEO) hat seine Ergebnisse für 1H24 und 2Q24 bekannt gegeben und dabei wichtige finanzielle Kennzahlen sowie die operative Leistung hervorgehoben. Die konsolidierten Einnahmen für 1H24 beliefen sich auf P$1.666.979 Millionen, ein Rückgang von 13,3% im Vergleich zu 1H23. Die Dienstleistungserträge summierten sich auf P$1.572.594 Millionen, was einem Rückgang von 11,7% im Jahresvergleich entspricht. Das Unternehmen wies auf eine hohe Inflation hin, die die Leistung beeinträchtigt hat.
Die Mobilzugänge in Argentinien erhöhten sich auf 21,2 Millionen, während die Breitband- und Pay-TV-Abonnenten leichte Rückgänge verzeichneten. Die operative Einkommensmarge vor D, A & I verbesserte sich auf 29,7% im 1H24 und 29,1% im 2Q24.
Der Nettogewinn stieg auf P$859.223 Millionen, der hauptsächlich durch Wechselkursgewinne getrieben wurde. Die Investitionen beliefen sich auf P$315.946 Millionen, was 19% der Einnahmen entspricht. Die Nettoverschuldung sank um 34,2% in realen Begriffen auf P$2.189.225 Millionen.
Trotz eines herausfordernden wirtschaftlichen Umfelds wurde im 2Q24 ein Erholungstrend bei den Dienstleistungserträgen festgestellt. Das Unternehmen konzentriert sich weiterhin auf den Ausbau seiner 4G- und 5G-Netze sowie die Verbesserung der Breitbanddienste.
- Net income increased significantly to P$859,223 million due to exchange rate gains.
- Operating Income before D, A & I margin improved to 29.7% in 1H24.
- Net Financial Debt decreased by 34.2% in real terms to P$2,189,225 million.
- Investments grew by 3.7% to P$315,946 million, focusing on 4G and 5G expansions.
- Mobile accesses in Argentina increased to 21.2 million.
- Consolidated Revenues decreased by 13.3% to P$1,666,979 million in 1H24.
- Service Revenues dropped 11.7% year-over-year to P$1,572,594 million.
- Broadband subscribers decreased by 33.8 thousand and Pay TV subscribers dropped by 26.9 thousand in 1H24.
Telecom Argentina's financial results for 1H24 show mixed signals. While the company reported a significant net income of P$859,223 million, this was largely due to gains from exchange rate differences rather than operational improvements. The 13.3% decrease in consolidated revenues in constant currency terms is concerning, indicating challenges in maintaining real revenue growth amid high inflation.
However, there are some positive trends. The improvement in Operating Income before D, A & I margin to 29.7% (up from 28.4% in 1H23) suggests effective cost management. The 3.7% increase in investments also signals continued commitment to infrastructure development.
The 34.2% reduction in Net Financial Debt is a significant positive, improving the company's financial position. However, investors should note that this is largely due to currency effects rather than operational cash flow.
Overall, while Telecom Argentina is navigating a challenging economic environment, its ability to maintain profitability and reduce debt provides some stability. The focus should be on whether the company can translate its infrastructure investments into revenue growth in future quarters.
Telecom Argentina's operational metrics reveal both strengths and challenges in the competitive telecom landscape. The increase in mobile subscribers to 21.2 million (+578,000 vs 1H23) is a positive sign, indicating the company's ability to attract and retain customers in a saturated market. However, the 18.2% decrease in mobile ARPU is concerning, suggesting pricing pressures and potential shifts in consumer behavior towards lower-value services.
The company's broadband performance is mixed. While the subscriber base decreased slightly, the ARPU increased by 1.1% and 86% of customers now have 100Mb or higher speeds. This indicates a successful upselling strategy but potential challenges in customer acquisition or retention.
The 11% growth in Flow subscribers is encouraging, showing traction in the company's digital content strategy. However, the overall decline in Cable TV subscribers reflects broader industry trends of cord-cutting.
Telecom Argentina's investments in 5G and participation in the GSMA Open Gateway initiative demonstrate a forward-looking approach, which could position the company well for future growth opportunities in emerging technologies and services.
Telecom Argentina's results reflect the challenging macroeconomic environment in Argentina. The 271.5% year-over-year inflation rate is significantly impacting the company's real revenue growth and consumer behavior. The shift towards more prepaid mobile subscribers (+5.4%) versus postpaid (-1.2%) indicates consumers are seeking more flexible, lower-commitment options in response to economic uncertainty.
The company's fintech services show promise, with Personal Pay growing to 2.9 million customers from 1.2 million in 1H23. This rapid growth suggests potential for diversification and new revenue streams beyond traditional telecom services.
The decrease in handset sales volume by 31% is significant and may indicate consumers are holding onto devices longer or opting for lower-cost alternatives. This trend could impact future service upgrades and revenue growth if it persists.
Telecom Argentina's ability to maintain a bad debt ratio of 2.1% (improved from 2.5% in 1H23) despite the challenging economic environment is commendable and suggests effective credit management practices. However, continued vigilance will be necessary as economic pressures on consumers persist.
Market Cap (NYSE: TEO): US
Note: For the figures included in the 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 annual financial statements, interim and special periods ending as of December 31, 2018 inclusive. Accordingly, the reported figures corresponding to 1H24 include the effects of the adoption of inflationary accounting in accordance with IAS 29. Therefore, comments related to variations of results between 1H24 and 1H23 mentioned in this press release correspond to "figures restated by inflation" or "constant" figures.
It should be noted that the results presented on a comparative basis (June 2023) include the effect of the year-over-year inflation as of June 2024, which was
271.5% .The Company's Consolidated Revenues amounted to P
$1,666,979 million in 1H24 (-13.3% in constant currency compared to 1H23). Service Revenues totaled P$1,572,594 million (-11.7% vs. 1H23), in a context where year-over-year inflation remains at high levels. In 2Q24, revenues reached P$856,084 million (-8.3% vs. 2Q23) while Service Revenues totaled P$799,692 million (-6.7% vs. 2Q23 and +3.5% vs. 1Q24), indicating an improvement in the trend of these revenues in real terms.During 1H24 in Argentina, Mobile accesses increased reaching 21.2 million in 1H24 (+578 thousand vs. 1H23). In broadband 4.1 million accesses were registered (-33.8 thousand vs. 1H23). Finally, Pay TV subscribers totaled 3.1 million in the same period (-26.9 thousand vs. 1H23).
During 1H24 the margin of Operating Income before Depreciation, Amortization, and Impairments of Fixed Assets ("Operating Income before D, A & I") over revenues showed a positive trend compared to the same period of the previous year, registering
29.7% (vs.28.4% in 1H23). Additionally, in 2Q24, the margin experienced a notable improvement, reaching29.1% (+2.8 pp vs. 2Q23). This improvement is due to the effective management of Operating Costs before Depreciation, Amortization, and Impairments of Fixed Assets, which during 1H24 recorded a significant decrease in real terms (-14.9% vs. 1H23). In 1H24, Operating Income before D, A & I totaled P$495,092 million .Due to the real appreciation of the Argentine peso against the US dollar during 1H24 (due to inflation being higher than devaluation during the period), the Company recorded a net income of P
$859,223 million (compared to an income of P$146,409 million in 1H23), mainly explained by gains from exchange rate differences in real terms included in Financial Results.Investments (including right-of-use assets) amounted to P
$315,946 million in 1H24 (+3.7% in constant currency vs. 1H23), which represents19.0% of our Consolidated Revenues. CAPEX (excluding right-of-use assets) during the 1H24 represented13.5% of Consolidated Revenues.Net Financial Debt totaled P
$2,189,225 million as of June 30, 2024, decreasing in real terms (-34.2% in constant currency vs. December 31, 2023).
*Market capitalization as of August 9, 2024
**Unaudited non-financial information
BUENOS AIRES, ARGENTINA / ACCESSWIRE / August 12, 2024 / Telecom Argentina S.A. ("Telecom Argentina") - (NYSE:TEO)(BYMA:TECO2), announced today a Net Income of P
| IAS 29 |
|
| IAS 29 |
|
|
|
|
|
|
| |||||
| As of June 30, |
|
| As of June 30, |
|
|
|
|
|
|
| |||||
| 2024 |
|
| 2023 |
|
| $ Change |
|
| % Change |
| |||||
Consolidated Revenues |
|
| 1,666,979 |
|
|
| 1,921,749 |
|
|
| (254,770 | ) |
|
| -13.3 | % |
Operating Income before D, A & I |
|
| 495,092 |
|
|
| 545,272 |
|
|
| (50,180 | ) |
|
| -9.2 | % |
Operating Loss |
|
| (62,097 | ) |
|
| (89,661 | ) |
|
| 27,564 |
|
|
| -30.7 | % |
Net income before income tax expense |
|
| 1,220,731 |
|
|
| 6,743 |
|
|
| 1,213,988 |
|
|
| - |
|
Net income attributable to Controlling Company |
|
| 851,682 |
|
|
| 140,561 |
|
|
| 711,121 |
|
|
| - |
|
Shareholders' equity attributable to Controlling Company |
|
| 4,635,492 |
|
|
| 4,407,482 |
|
|
| 228,010 |
|
|
| 5.2 | % |
Net Financial Debt |
|
| (2,189,225 | ) |
|
| (2,310,774 | ) |
|
| 121,549 |
|
|
| -5.3 | % |
Investments in PP&E, intangible assets & rights of use assets ** |
|
| 315,946 |
|
|
| 304,818 |
|
|
| 11,128 |
|
|
| 3.7 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed lines in service (in thousand lines) *** |
|
| 2,755 |
|
|
| 2,937 |
|
|
| (181 | ) |
|
| -6.2 | % |
Mobile customers (in thousand) |
|
| 23,629 |
|
|
| 22,945 |
|
|
| 685 |
|
|
| 3.0 | % |
Personal (Argentina) |
|
| 21,213 |
|
|
| 20,635 |
|
|
| 578 |
|
|
| 2.8 | % |
Nucleo (Paraguay) -including Wimax customers- |
|
| 2,417 |
|
|
| 2,310 |
|
|
| 107 |
|
|
| 4.6 | % |
Broadband accesses in Argentina (in thousand) |
|
| 4,051 |
|
|
| 4,084 |
|
|
| (34 | ) |
|
| -0.8 | % |
Pay TV Subscribers (Includes Argentina, Uruguay and Paraguay - in thousand) |
|
| 3,335 |
|
|
| 3,357 |
|
|
| (23 | ) |
|
| -0.7 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue per user (ARPU) Fixed Telephony / voice (in P$ - Restated by inflation) |
|
| 7,215.4 |
|
|
| 7,369.7 |
|
|
| (154.3 | ) |
|
| -2.1 | % |
Average Revenue per user (ARPU) Mobile Services - Personal (in P$ - Restated by inflation) |
|
| 4,743.5 |
|
|
| 5,800.0 |
|
|
| (1,056.5 | ) |
|
| -18.2 | % |
Average Revenue per user (ARPU) Broadband (in P$ - Restated by inflation) |
|
| 16,034.2 |
|
|
| 15,866.2 |
|
|
| 168.0 |
|
|
| 1.1 | % |
Average Revenue per user (ARPU) Cable TV (in P$ - Restated by inflation) |
|
| 11,098.1 |
|
|
| 16,607.4 |
|
|
| (5,509.3 | ) |
|
| -33.2 | % |
*(Figures may not add up due to rounding)
** (in constant currency - includes right-of-use assets for P
*** (Includes IP telephony lines, which amounted to approximately 1.69 million and 1.29 million as of June 30, 2024, and June 30, 2023, respectively) - Not included in ARPU calculations.
It should be noted that comparative figures for the previous fiscal year have been restated by inflation so that the resulting information is presented in terms of the current measurement unit as of June 30, 2024.
The following table shows the evolution of the national consumer price index (National CPI - according to INDEC's official statistics) as of December 31, 2023, and as of June 30, 2023, and 2024, used for the restatement of figures in constant currency:
|
| As of June 30, 2023 |
|
| As of December 31, 2023 |
|
| As of June 30, 2024 |
| |||
Annual |
|
| 115.6 | % |
|
| 211.4 | % |
|
| 271.5 | % |
3-month cumulative (since March 2024) |
|
| 23.8 | % |
|
| n/a |
|
|
| 18.6 | % |
During 1H24, Consolidated Revenues amounted to P
During 1H24, Service Revenues decreased by
Consolidated Revenues
Mobile Services
As of June 30, 2024, total mobile subscribers in Argentina and Paraguay amounted to 23.6 million. In 1H24, mobile services revenues reached P
Mobile Services in Argentina
As of June 30, 2024, total mobile subscribers amounted to approximately 21.2 million (+578 thousand vs. 1H23). Throughout the period, a change in customer behavior was observed, resulting in a
In 1H24, mobile service revenues in Argentina amounted to P
During the Mobile World Congress 2024, the Company was distinguished, for the fifth consecutive time by Ookla, a global leader in network usage testing, for having the fastest mobile network in Argentina, as verified through its SpeedTest platform. Thus, it is the only operator in Latin America to achieve this accomplishment as of this date.
Personal in Paraguay ("Núcleo")
As of June 30, 2024, Núcleo's subscriber base reached 2.4 million. Of the total number of accesses,
During 1H24, Mobile service revenues in Paraguay reached P
Internet Services
Internet services revenues totaled P
Additionally, broadband ARPU (restated in constant currency as of June 30, 2024) amounted to P
As of June 30, 2024, customers with a service of 100 Mb or higher represented
Cable TV Services
Cable TV service revenues reached P
The subscriber base in Argentina amounted to 3.1 million accesses as of June 30, 2024, reflecting a
Fixed Telephony and Data Services
Revenues generated by fixed telephony and data services reached P
The monthly fixed voice ARPU (restated in constant currency as of June 30, 2024) reached P
Other Service Revenues
Other service revenues, primarily including fintech-related services, billing and collection management revenue on behalf of third parties, administrative revenue, and advertising space sales revenue, among others, reached P
The main variation is driven by the increase in fintech services in Argentina, mainly due to the growth in platform usage and the increase in the number of users.
Similarly, Personal Pay, ended the period with 2.9 million customers (vs. 1.2 million in 1H23).
Revenues from equipment sales
Equipment revenues reached P
Consolidated Operating Costs
Consolidated Operating Costs (including Depreciation, Amortization and Impairment of Fixed Assets) totaled P
The cost breakdown was as follows:
Employees benefits and severance payments: P
$394,444 million in 1H24 (-14.6% vs. 1H23). Total employees amounted to 20,809 as of June 30, 2024.Interconnection and transmission costs (including roaming, international settlement charges and lease of circuits): P
$53,353 million (-5.4% vs. 1H23).Fees for services, maintenance and materials: P
$228,973 million in 1H24 (-4.2% vs. 1H23).Taxes and fees paid to regulatory authorities: P
$129,323 million (-12.8% vs. 1H23).Commissions and advertising (commissions paid to agents, collection fees and other commissions): These costs totaled P
$86,665 million in 1H24 (-25.9% vs. 1H23).Cost of handsets sold: P
$73,847 million (-29.2% vs. 1H23). This variation is mainly due to a decrease in the number of units sold compared to 1H23.Programming and content costs: P
$93,387 million (-14.4% vs. 1H23).Other Costs totaled P
$111,895 million (-20.5% vs. 1H23), of which bad debt expenses totaled P$35,283 million (-26.4% vs. 1H23).Our bad debt ratio was
2.1% of total revenues as of June 30, 2024 (vs.2.5% in 1H23).Other operating costs, including charges for lawsuits and other contingencies, energy and other public services, insurance, rents and internet capacity, among others, totaled P
$76,612 million (-17.5% vs. 1H23).
Depreciation, amortization and impairment of fixed assets amounted to P
$557,189 million (-12.2% vs. 1H23). This charge includes the impact of the amortization of assets incorporated after June 30, 2023, partially offset by the effect of the assets that were completely amortized after such date.
Net Financial Results
Net Financial Results (including Financial Expenses on Debt and Other Financial Results) showed an income of P
In millions of $ |
|
| 1H24 |
|
|
| 1H23 |
|
| $ Change |
| |
Exchange differences |
|
| 1,400,563 |
|
|
| 62,758 |
|
|
| 1,337,805 |
|
RECPAM |
|
| 77,467 |
|
|
| 136,266 |
|
|
| (58,799 | ) |
Fair value gains/(losses) on financial assets at fair value through profit or loss |
|
| (15,077 | ) |
|
| (29,741 | ) |
|
| 14,664 |
|
Net interest |
|
| (44,901 | ) |
|
| (49,859 | ) |
|
| 4,958 |
|
Remeasurement in borrowings* |
|
| (74,013 | ) |
|
| 9,340 |
|
|
| (83,353 | ) |
Others |
|
| (58,239 | ) |
|
| (29,347 | ) |
|
| (28,892 | ) |
Total |
|
| 1,285,800 |
|
|
| 99,417 |
|
|
| 1,186,383 |
|
*Related to Notes issued in UVA
Exchange gains from exchange rate differences, measured in real terms, are the result of inflation outpacing the appreciation of the US dollar against the Argentine peso (
Income Tax
Telecom's income tax includes the following effects:
the current income tax, determined based on the current tax legislation applicable to Telecom,
the effect of applying the deferred tax method with respect to temporary differences determined by comparing our asset and liability valuation according to tax and financial accounting criteria which includes the effect of the income tax inflation adjustment.
Income tax loss amounted to P
Consolidated Net Financial Debt
As of June 30, 2024, our net financial debt (cash, cash equivalents - net of Client Funds - plus financial investments and financial NDF* minus loans) is passive and amounted to P
* Contemplates rate swaps and NDF (non-delivery forwards) agreements.
Investments in PP&E, intangible assets and rights of use assets
During 1H24, the Company invested (including rights of use assets) P
The investments were focused on:
Expansion of cable TV and internet services to improve transmission and access speed offered to customers.
Deployment and modernization of our 4G mobile access sites to improve coverage and increase mobile network capacity. The deployment of 4G/LTE reached a coverage of
98% of the population. Our mobile subscribers with access to our 4G network, according to Ookla's latest June 2024 benchmark, perceived a better service experience, reaching average speeds of 39.9Mbps, compared to 33.1Mbps during the same period in 2023.During the first months of 2024, we continued the expansion of our 5G network, with plans to add 200 sites by the end of the year.
Additionally, we continue to expand mobile site connectivity to achieve better quality and capacity by replacing radio links with high-capacity fiber optic connections. Additionally, we continued with the plan to connect remote and low-density areas through satellite backhaul.
Relevant financial events of the period
Open Gateway
Telecom is leading the GSMA Open Gateway initiative in Argentina, which aims to driveinnovation and enable developers and cloud providers to implement services quickly and in a standardized manner. In this context, Telecom has made two APIs available as part of this project, contributing to the value proposition of digital security and fraud prevention: SIM SWAP and the more recent Number Verification.
Additionally, in April, the company announced a partnership with Intraway, launching a joint digital venture focused on creating a software solution that will help communication service providers (CSPs) in Latin America accelerate the exposure and monetization of their networks in a secure and scalable manner.
Disbursement from Export Development Canada (EDC)
In June 2024, a disbursement of USD 11.6 million (equivalent to P
Issuance of Notes Class 20 and Additional
Class | Currency | Nominal Amount Issued | Date of Issuance | Maturity Date | Principal repayment | Interest rate | Interest payment |
20 | US$ linked | 59,7 (1) | 06/2024 | 06/2026 | In 1 payment at maturity date | Fixed: | Quarterly |
21,6 (2) | 06/2024 | 06/2026 | In 1 payment at maturity date | Fixed: | Quarterly |
(1) For Class 20 Notes, the subscription price was above par (
(2) For Additional Class 20 Notes, the subscription price was above par (
Relevant events after June 30, 2024
Shelf Registration Statement
On July 8, 2024, the Company filed a shelf registration statement with the Securities and Exchange Commission (SEC) under Form F-3 concerning various types of debt securities, American Depositary Shares ("ADSs"), and Class B Shares of the Company, as well as a prospectus supplement related to this form for the 198,085,167 Class B Shares underlying the ADSs held by Fintech Telecom LLC, as disclosed in the SC 13D/A form filed with the SEC on April 16, 2019.
These documents will enable the Company and its majority shareholders to conduct transactions that may qualify as public offerings of securities in the United States over the next three years. As of the date of this press release, the Company does not expect to undertake transactions that could qualify as a public offering of debt securities or shares in the United States.
Class 21 International Notes Issuance
In July 2024, the Company re-entered the international credit markets and issued its Class 21 Notes as detailed below:
Offered Nominal Value: USD 1,310,202,000
Number of Offers Received: 190
Nominal Value of Notes to be Issued: USD 500,000,000
Interest Rate:
Issue Price:
Yield:
Issuance and Settlement Date: July 18, 2024
Repayment: The principal of the Notes will be repaid in three installments as follows: (i)
The expected use of proceeds is the refinancing of existing debt and payment of the consideration for the tender offer of our Class 5 Notes maturing in 2025. This transaction allowed the company to improve its average financing cost and extend the average maturity of its debt.
Class 5 Notes maturing in 2025 Tender Offer
In August 2024, in accordance with the planned used of proceeds from the issuance of Class 21 Notes and with the aim of continuing an effective liability management policy, the Company completed an early tender offer of USD 19,849,880 nominal value of its Class 5 Notes. Following this tender offer and the principal repayment made in August 2024, USD 112,366,260 nominal value of our Class 5 Notes remains outstanding.
Class 1 Notes maturing in 2026 Exchange Offer
In August 2024, as part of the exchange offer of its Class 1 Notes for Additional Class 21 Notes, the Company completed the exchange of USD 117,217,000 nominal value of Class 1 Notes. As of the date of this report, USD 617,217,000 nominal value of Class 21 Notes (including Additional Class 21) remains outstanding. This successfully enabled Telecom to extend the average maturity of its debt profile.
Class 22 Notes Issuance
Class | Currency | Nominal Amount Issued | Date of Issuance | Maturity Date | Principal repayment | Interest rate | Interest payment |
22 | US$ Linked | 33.7 (1) | 08/2024 | 02/2026 | In 1 payment at maturity date | Fixed: | Quarterly |
(1) For Class 22 Notes, the subscription price was above par (
Main Highlights for 1H24 and 2Q24
We achieved an improvement in Operating Income before D, A & D, in a challenging environment, registering a margin of
29.7% in 1H24 (compared to28.4% in 1H23). Additionally, in 2Q24, the margin saw a significant improvement, reaching29.1% (+2.8 percentage points vs. 2Q23).We successfully increased our subscriber base in the mobile segment and stabilized our broadband and pay TV subscriber bases in a highly competitive market.
Our fintech, Personal Pay, is now a significant operator in the market, with nearly 3 million subscribers, and is the second-largest participant in terms of remunerated accounts balances.
We showed resilience in our business model, with a strong recovery in revenue and EBITDA figures measured in dollars, despite high currency depreciation and inflation.
Through our liability management transactions, we improved our debt maturity profile, extended the average maturity of our debt, and reduced our financing costs.
Telecom Argentina is a leading telecommunications company in Argentina, offering local and long distance fixed-line telephone, 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 June 30, 2024, Telecom Argentina owns 2,153,688,011 issued and outstanding shares.
For more information, please contact Investor Relations:
Luis Fernando Rial Ubago | Tomás Pellicori | Livio Gentile |
|
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.
SOURCE: Telecom Argentina
View the original press release on accesswire.com
FAQ
What were Telecom Argentina's consolidated revenues in 1H24?
How did Telecom Argentina's net income perform in 1H24?
What was the trend in Telecom Argentina's Service Revenues in 2Q24?
How did Telecom Argentina's net financial debt change in 1H24?
What investments did Telecom Argentina make in 1H24?
What was Telecom Argentina's Operating Income before D, A & I margin in 1H24?
