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Telecom Argentina S.A. Announces Consolidated Results for the Nine-Month Period (“9M24”) and Third Quarter of Fiscal Year 2024 (“3Q24”)

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Telecom Argentina reported financial results for 9M24, with consolidated revenues of P$2,852,341 million, showing a 10.4% decrease in constant currency compared to 9M23. Service revenues totaled P$2,682,307 million (-9.1% vs 9M23). The company recorded a net income of P$951,912 million, mainly due to exchange rate gains. Mobile subscribers in Argentina increased to 21.4 million (+668 thousand vs 9M23), while cable TV subscribers grew to 3.2 million. Operating margin before D,A&I remained stable at 28.8%. CAPEX represented 13.0% of revenues, with investments amounting to P$538,119 million. Net Financial Debt decreased 37.6% in constant currency to P$2,325,294 million.

Telecom Argentina ha reso noti i risultati finanziari per i primi 9 mesi del 2024, registrando ricavi consolidati di P$2.852.341 milioni, con una decremento del 10,4% in valuta costante rispetto ai primi 9 mesi del 2023. I ricavi dei servizi hanno raggiunto P$2.682.307 milioni (-9,1% rispetto ai primi 9 mesi del 2023). L'azienda ha riportato un utile netto di P$951.912 milioni, principalmente a causa di guadagni da cambi. Gli abbonati mobili in Argentina sono aumentati a 21,4 milioni (+668 mila rispetto ai primi 9 mesi del 2023), mentre gli abbonati alla TV via cavo sono cresciuti fino a 3,2 milioni. Il margine operativo prima di D,A&I è rimasto stabile al 28,8%. Gli investimenti (CAPEX) hanno rappresentato il 13,0% dei ricavi, con investimenti per un montante di P$538.119 milioni. Il debito finanziario netto è diminuito del 37,6% in valuta costante, attestandosi a P$2.325.294 milioni.

Telecom Argentina informó los resultados financieros para los primeros 9 meses de 2024, con ingresos consolidados de P$2.852.341 millones, mostrando una disminución del 10.4% en moneda constante en comparación con los primeros 9 meses de 2023. Los ingresos por servicios totalizaron P$2.682.307 millones (-9.1% frente a 9M23). La compañía reportó un ingreso neto de P$951.912 millones, principalmente debido a ganancias por tipo de cambio. Los suscriptores móviles en Argentina aumentaron a 21.4 millones (+668 mil con respecto a 9M23), mientras que los suscriptores de TV por cable crecieron a 3.2 millones. El margen operativo antes de D,A&I se mantuvo estable en 28.8%. La inversión (CAPEX) representó el 13.0% de los ingresos, con inversiones por un total de P$538.119 millones. La deuda financiera neta disminuyó un 37.6% en moneda constante a P$2.325.294 millones.

텔레콤 아르헨티나는 2024년 9개월간의 재무 결과를 보고하며, 총 수익이 P$2,852,341백만으로, 2023년 9개월 대비 10.4% 감소한 것으로 나타났습니다. 서비스 수익은 P$2,682,307백만으로 (-9.1% vs 9M23) 집계되었습니다. 회사는 주로 환율 차익 덕분에 순이익 P$951,912백만을 기록했습니다. 아르헨티나의 모바일 가입자는 2140만명(+668천명 vs 9M23)으로 증가했으며, 케이블 TV 가입자는 320만명으로 증가했습니다. D,A&I 전 운영 마진은 28.8%로 안정세를 유지했습니다. 자본 지출(CAPEX)은 수익의 13.0%를 차지하였고, 투자 금액은 P$538,119백만이었습니다. 순 금융 부채는 상수 통화 기준으로 37.6% 감소하여 P$2,325,294백만에 달했습니다.

Telecom Argentina a publié des résultats financiers pour les 9 premiers mois de 2024, avec des revenus consolidés de P$2.852.341 millions, affichant une diminution de 10,4% en monnaie constante par rapport aux 9 premiers mois de 2023. Les revenus des services se sont élevés à P$2.682.307 millions (-9,1% par rapport aux 9M23). L'entreprise a enregistré un revenu net de P$951.912 millions, principalement en raison de gains de change. Le nombre d'abonnés mobiles en Argentine a augmenté pour atteindre 21,4 millions (+668 000 par rapport aux 9M23), tandis que le nombre d'abonnés à la télévision par câble a crû à 3,2 millions. La marge opérationnelle avant D,A&I est restée stable à 28,8%. Les investissements (CAPEX) ont représenté 13,0% des revenus, avec des investissements s'élevant à P$538.119 millions. La dette financière nette a diminué de 37,6% en monnaie constante pour atteindre P$2.325.294 millions.

Telecom Argentina hat die Finanzzahlen für die ersten 9 Monate 2024 bekannt gegeben, mit konsolidierten Einnahmen von P$2.852.341 Millionen, was einen Rückgang von 10,4% in konstanter Währung im Vergleich zu den ersten 9 Monaten 2023 darstellt. Die Service-Einnahmen beliefen sich auf P$2.682.307 Millionen (-9,1% im Vergleich zu 9M23). Das Unternehmen verzeichnete ein Nettoeinkommen von P$951.912 Millionen, hauptsächlich aufgrund von Wechselkursgewinnen. Die Mobilfunk-Abonnenten in Argentinien stiegen auf 21,4 Millionen (+668 Tausend im Vergleich zu 9M23), während die Abonnenten des Kabel-TV auf 3,2 Millionen wuchsen. Die operative Marge vor D,A&I blieb stabil bei 28,8%. Die Investitionen (CAPEX) machten 13,0% der Einnahmen aus, mit Investitionen in Höhe von P$538.119 Millionen. Die Nettoverschuldung fiel in konstanter Währung um 37,6% auf P$2.325.294 Millionen.

Positive
  • Net income increased significantly to P$951,912 million from P$263,157 million in 9M23
  • Mobile subscribers grew by 668,000 to 21.4 million in Argentina
  • Cable TV subscribers increased by 49,500 to 3.2 million
  • Net Financial Debt decreased by 37.6% in constant currency
  • Service Revenues showed recovery trend in 3Q24 (+2.5% vs 2Q24)
Negative
  • Consolidated revenues decreased 10.4% to P$2,852,341 million
  • Service revenues declined 9.1% compared to 9M23
  • Mobile ARPU decreased 14.3% to P$5,458.9
  • Cable TV ARPU fell 30.1% to P$12,698.6
  • Broadband subscribers decreased by 46,900 to 4.0 million

Insights

Telecom Argentina reported mixed results for 9M24 with some concerning trends but also signs of recovery. Consolidated revenues declined -10.4% to P$2.85 trillion, though service revenues showed sequential improvement in Q3. The company achieved subscriber growth in key segments with mobile users up 668K and cable TV up 49.5K year-over-year.

The most significant development was a substantial net income of P$951.9 billion, primarily driven by FX gains due to inflation outpacing peso depreciation. However, underlying operational metrics were weaker, with ARPU declining across most segments and a -13.7% drop in depreciation/amortization charges suggesting reduced infrastructure investment.

Positively, net financial debt decreased 37.6% vs Dec 2023 and bad debt ratios improved to 2.1% of revenues. The nullification of Decree 690/2020 also removes regulatory price controls, providing more pricing flexibility going forward.

The infrastructure investment trends raise some concerns, with CAPEX declining to 13% of revenues and total investments falling 7% YoY. While 4G coverage remains strong at 98% of population with improved speeds of 66.1 Mbps, the modest addition of only 112 5G sites suggests a cautious approach to next-gen network deployment.

The company's strategic focus on API development through Open Gateway and OpenXpand platforms represents a positive pivot toward network monetization and B2B opportunities. However, the reduction in infrastructure spending amid high inflation could impact long-term competitive positioning if sustained.

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 9M24 include the effects of the adoption of inflationary accounting in accordance with IAS 29. Therefore, comments related to variations of results between 9M24 and 9M23 mentioned in this press release correspond to "figures restated by inflation" or "constant" figures.

  • For analysis purposes, it should be noted that the results presented on a comparative basis (September 2023) include the effect of the year-over-year inflation as of September 2024, which was 209%.

  • The Company's Consolidated Revenues amounted to P$2,852,341 million in 9M24 (-10.4% in constant currency compared to 9M23). The evolution of Service Revenues shows a trend of recovery in real terms that consolidated during 3Q24 (+2.5% and +6.0% compared to 2Q24 and 1Q24, respectively). Meanwhile, Service Revenues during the first nine months of 2024 totaled P$2,682,307 million (-9.1% compared to the first nine months of 2023), in a context where year-over-year inflation remains at high levels.

  • During 9M24, the customer base in Argentina showed growth: mobile accesses increased to 21.4 million (+668 thousand compared to 9M23). Meanwhile, cable TV subscribers also increased, totaling 3.2 million in the same period (+49.5 thousand compared to 9M23). Finally, broadband totaled 4.0 million accesses (-46.9 thousand compared to 9M23).

  • During 9M24 the margin of Operating Income before Depreciation, Amortization, and Impairments of Fixed Assets ("Operating Income before D, A & I") over revenues registered 28.8%, stable when compared with 9M23. During 9M24, Operating Income before D, A & I totaled P$822,296 million.

  • Due to the real appreciation of the Argentine peso against the US dollar during 9M24 (due to inflation being higher than devaluation during the period), the Company recorded a net income of P$951,912 million (compared to an income of P$263,157 million in 9M23), mainly explained by gains from exchange rate differences in real terms included in Financial Results.

  • CAPEX (excluding right-of-use assets) during the 9M24 represented 13.0% of Consolidated Revenues. Investments (including right-of-use assets) amounted to P$538,119 million in 9M24 (-7.0% in constant currency vs. 9M23), which represents 18.9% of our Consolidated Revenues.

  • Net Financial Debt totaled P$2,325,294 million as of September 30, 2024, decreasing in real terms (-37.6% in constant currency vs. December 31, 2023).

BUENO AIRES, ARGENTINA / ACCESSWIRE / November 7, 2024/ Telecom Argentina S.A. ("Telecom Argentina") - (NYSE:TEO)(BYMA:TECO2), announced today a Net Income of P$951,912 million for the nine-month period ended September 30, 2024, mainly explained by gains from exchange rate differences in real terms included in Financial Results. The Net Income attributable to the controlling company was P$938,639 million.

ACCESSWIRE | Article Logo

IAS 29

IAS 29

As of
September 30,

As of
September 30,

2024

2023

$

%

Consolidated Revenues

2,852,341

3,185,094

(332,753

)

-10.4

%

Operating Income before D, A & I

822,296

918,826

(96,530

)

-10.5

%

Operating Loss

(106,366

)

(157,687

)

51,321

-32.5

%

Net income before income tax expense

1,374,004

28,746

1,345,258

-

Net income attributable to Controlling Company

938,639

251,230

687,409

-

Shareholders' equity attributable to Controlling Company

5,138,576

5,036,375

102,201

2.0

%

Net Financial Debt

(2,325,294

)

(2,443,710

)

118,416

-4.8

%

Investments in PP&E, intangible assets & rights of use assets **

538,119

578,684

(40,565

)

-7.0

%

Fixed lines in service (in thousand lines) ***

2,692

2,916

(224

)

-7.7

%

Mobile customers (in thousand)

23,914

23,136

778

3.4

%

Personal (Argentina)

21,424

20,756

668

3.2

%

Nucleo (Paraguay) - including Wimax customers-

2,490

2,380

110

4.6

%

Broadband accesses in Argentina (in thousand)

4,044

4,091

(47

)

-1.1

%

Pay TV Subscribers (Includes Argentina, Uruguay and Paraguay - in thousand)

3,413

3,360

53

1.6

%

Average Revenue per user (ARPU) Fixed Telephony / voice (in P$ - Restated by inflation)

8,187.3

8,326.0

(138.7

)

-1.7

%

Average Revenue per user (ARPU) Mobile Services - Personal (in P$ - Restated by inflation)

5,458.9

6,367.0

(908.1

)

-14.3

%

Average Revenue per user (ARPU) Broadband (in P$ - Restated by inflation)

18,657.7

17,604.7

1,053.0

6.0

%

Average Revenue per user (ARPU) Cable TV (in P$ - Restated by inflation)

12,698.6

18,158.4

(5,459.8

)

-30.1

%

*(Figures may not add up due to rounding)
** (in constant currency - includes right-of-use assets for P$166,117 million as of September 30, 2024 and for P$123,767 million as of September 30, 2023)
*** (Includes IP telephony lines, which amounted to approximately 1.78 million and 1.42 million as of September 30, 2024, and September 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 September 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 September 30, 2023, and 2024, used for the restatement of figures in constant currency:

As of
September 30, 2023

As of
December 31, 2023

As of
September 30, 2024

Annual

138.3

%

211.4

%

209.0

%

3-month cumulative (since June 2023/2024)

34.8

%

n/a

12.1

%

During 9M24, Consolidated Revenues amounted to P$2,852,341 million, from which Service Revenues totaled P$2,682,307 million.

During 9M24, Service Revenues decreased by 9.1% compared to 9M23, mainly due to the net effect of the price increases implemented by the Company on revenues being lower than the year-on-year inflation rate, which stood at 209.0%. This is considering the discounts that were granted to customers to maintain the client base amid intense market competition. However, a trend of recovery in Service Revenues in real terms has been observed, strengthening during 3Q24 (+2.5% vs. 2Q24 - see chart No. 2 on page No. 2).

Consolidated Revenues

Mobile Services

As of September 30, 2024, total mobile subscribers in Argentina and Paraguay amounted to 23.9 million. In 9M24, mobile services revenues reached P$1,154,984 million (- P$137,447 million or -10.6% vs. 9M23),obtaining the highest share in terms of service revenues (representing 43.1% and 43.8% of service revenues in 9M24 and 9M23, respectively). In 3Q24, mobile service revenues amounted to P$401,005 million (-4.3% vs. 3Q23). Mobile internet revenues in 9M24 and 9M23 were equivalent to 95% of the total revenues for these services.

Mobile Services in Argentina

As of September 30, 2024, total mobile subscribers amounted to approximately 21.4 million (+668 thousand vs. 9M23). During 9M24, a recovery in the postpaid base was observed, which increased by 0.5% vs. 9M23. Meanwhile, the prepaid base recorded a 5.4% increase, continuing a favorable trend. As of September 30, 2024, postpaid accesses represented 38% of our mobile subscriber base.

In 9M24, mobile service revenues in Argentina amounted to P$1,051,194 million (-P$134,993 million or -11.4% vs. 9M23). The average monthly revenue per user ("ARPU") amounted to P$5,458.9 during 9M24 (vs. P$6,367.0 in 9M23). The effect generated by the restatement in terms of the current measurement unit as of September 30, 2024, included in the ARPU amounted to P$876.0 and P$4,903.5 for 9M24 and 9M23, respectively. The average monthly churn rate was 1.5% in 9M24 (compared to an average of 1.8% in 9M23).

Personal in Paraguay ("Núcleo")

As of September 30, 2024, Núcleo's subscriber base totaled 2.5 million. Of the total number of accesses, 74% correspond to prepaid plans and 26% to postpaid plans, whereas as of September 30, 2023, prepaid accesses represented 78% and postpaid accesses represented 22%.

During 9M24, Mobile service revenues in Paraguay reached P$103,790 million (- P$2,454 million or -2.3% vs. 9M23), due to a decrease in ARPU, mainly due to higher discounts granted and migration to lower-value plans.

Internet Services

Internet services revenues reached P$725,497 million during 9M24 (+P$41,097 million or +6% vs. 9M23). In 3Q24, Internet services revenues totaled P$256,708 million (+14.5% vs. 3Q23) showing strong growth in real terms. Total broadband base reached 4.0 million subscribers in 9M24 (-47 thousand vs. 9M23). The monthly churn rate of Internet services was 1.9% and 1.8% as of September 30, 2024, and 2023, respectively.

Additionally, broadband ARPU (restated in constant currency as of September 30, 2024) amounted to P$18,657.7 in 9M24 (vs. P$17,604.7 in 9M23). The effect generated by the restatement in terms of the measuring unit as of September 30, 2024, included in the ARPU amounted to P$2,970.2 and P$13,534.6 for 9M24 and 9M23, respectively.

As of September 30, 2024, accesses with a service of 100 Mb or higher represented 87% of the total customer base (vs. 84% as of September 30, 2023). In 9M24, accesses with this speed or higher amounted to 3.5 million (+2.8% compared to 9M23).

Cable TV Services

Cable TV service revenues reached P$413,757 million in 9M24 (-P$159,069 million or -27.8% vs. 9M23). In 3Q24, cable TV service revenues were P$141,214 million (-20.9% vs. 3Q23). Cable TV subscribers, including Uruguay and Paraguay, exceeded 3.4 million (+53 thousand vs. 9M23). The monthly Cable TV ARPU (restated in constant currency as of September 30, 2024) reached P$12,698.6 during 9M24 (vs. P$18,158.4 in 9M23). The effect generated by the restatement in terms of the measuring unit as of September 30, 2024, included in the ARPU amounts to P$2,078.8 and P$14,009.8, for 9M24 and 9M23, respectively.

The subscriber base in Argentina reached 3.2 million accesses as of September 30, 2024, reflecting a 1.6% increase compared to 9M23, driven by the Flow Full and Flow Flex products. Starting in 3Q24, Flow Flex, which is 100% digital (no decoder or installation required), began being marketed as the main product. Of this customer base, 1.5 million subscribed to Flow, and premium subscriptions as of 9M24 totaled 1.2 million, decreasing 7.7% compared to 9M23. The monthly churn for cable television stood at 2.1% as of September 30, 2024, compared to 1.8% as of September 30, 2023.

Fixed Telephony and Data Services

Revenues generated by fixed telephony and data services reached P$357,666 million in 9M24 (-P$17,533 million or -4.7% vs. 9M23). In 3Q24, fixed telephony and data services revenues were P$109,506 million (-11.9% vs. 3Q23)

The monthly fixed voice ARPU (restated in constant currency as of September 30, 2024) reached P$8,187.3 in 9M24 (vs. P$8,326.0 in 9M23). The effect generated by the restatement in terms of the measuring unit as of September 30, 2024, included in the ARPU amounted to P$1,470.9 and P$6,511.9 for 9M24 and 9M23, respectively.

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$30,403 million (+P$3,541 million or +13.2% compared to 9M23). In 3Q24, other service revenues were P$10,509 million (+10.9% vs. 3Q23).

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 3.3 million customers (vs. 1.6 million in 9M23).

Revenues from equipment sales

Equipment revenues reached P$170,034 million (-P$63,342 million or -27.1% vs. 9M23). This variation is mainly due to a 22% decrease in the quantity of handsets sold compared to 9M23. In 3Q24, equipment sales were P$64,199 million (-14% vs. 3Q23).

Consolidated Operating Costs

Consolidated Operating Costs (including Depreciation, Amortization and Impairment of Fixed Assets) totaled P$2,958,707 million in 9M24 (-P$385,074 million or -11.5% vs. 9M23). Excluding Depreciation, Amortization and Impairment of Fixed Assets, operating costs experienced a reduction of 10.4% in real terms during the same period.

The cost breakdown was as follows:

  • Employee benefits and severance payments: P$694.524 million in 9M24 (-9.4% vs. 9M23). Total employees amounted to 20,247 as of September 30, 2024.

  • Interconnection and transmission costs (including roaming, international settlement charges and lease of circuits): P$85,295 million (-8.4% vs. 9M23).

  • Fees for services, maintenance and materials: P$384,474 million in 9M24 (-4.0% compared to 9M23).

  • Taxes and fees paid to regulatory authorities: P$222,875 million (-9.3% vs. 9M23).

  • Commissions and advertising (commissions paid to agents, collection fees and other commissions): These costs totaled P$155,421 million in 9M24 (-19.4% vs. 9M23).

  • Cost of handsets sold: P$131,773 million (-22.0% vs. 9M23). This variation is mainly due to a decrease in the number of units sold compared to 9M23.

  • Programming and content costs: P$161,655 million (-9.6% vs. 9M23).

  • Other Costs totaled P$194,028 million (-11.8% vs. 9M23), of which bad debt expenses totaled P$58,695 million (-20.1% vs. 9M23).

    • Our bad debt ratio continued its favorable trend: it represented 2.1% of total revenues as of September 30, 2024 (vs. 2.3% in 9M23).

    • Other operating costs, including charges for lawsuits and other contingencies, energy and other public services, insurance, rents and internet capacity, among others, totaled P$135,333 million (-7.6% vs. 9M23).

  • Depreciation, amortization and impairment of fixed assets amounted to P$928,662 million (-13.7% vs. 9M23). This charge includes the impact of the amortization of assets incorporated after September 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$1,488,554 million in 9M24 (vs. an income of P$190,073 million in 9M23), mainly due to:

In millions of $

9M24

9M23

$

Exchange differences

1,689,524

57,796

1,631,728

RECPAM

108,816

250,303

(141,487

)

Fair value gains/(losses) on financial assets at fair value through profit or loss

(44,741

)

(40,043

)

(4,698

)

Net interest

(71,539

)

(70,241

)

(1,298

)

Remeasurement in borrowings*

(86,875

)

46,220

(133,095

)

Others

(106,631

)

(53,962

)

(52,669

)

Total

1,488,554

190,073

1,298,481

*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 (101.6% vs. 20.0%, respectively in the 9M24).

Income Tax

Telecom's income tax includes the following effects:

  1. the current income tax, determined based on the current tax legislation applicable to Telecom,

  2. 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$422,092 million in 9M24 (vs. an income of P$234,411 million in 9M23). The loss related to item (i) above amounted to P$21,991 million in 9M24 (vs. a loss of P$3,575 million in 9M23) and the income tax effect related to the application of the deferred tax method described in item (ii) above is a loss of P$400,101 million in 9M24 (vs. an income of P$237,986 million in 9M23).

Consolidated Net Financial Debt

As of September 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$2,325,294 million, which represents a decrease of P$1,403,062 when compared to the net financial debt as of December 31, 2023, restated by inflation.

* Contemplates rate swaps and NDF (non-delivery forwards) agreements.

Investments in PP&E, intangible assets and rights of use assets

During 9M24, the Company invested (including rights of use assets) P$538,119 million (-7.0% vs. 9M23). Said investments represented 18.9% of consolidated revenues in 9M24. As of September 30, 2024, investments without considering right of use of assets totaled P$372,002 million (-18.2% vs. 9M23).

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 September 2024 benchmark, perceived a better service experience, reaching average speeds of 66.1Mbps, compared to 34.3Mbps during the same period in 2023.

  • During the first nine months of 2024, we continued the expansion of our 5G network with the addition of 112 sites.

  • Additionally, we continue to expand mobile site connectivity to achieve better quality and capacity by replacing radio links with high-capacity fiber optic connections.

Relevant financial events of the period

IFC Prepayment

On August 15, 2024, the Company applied part of the proceeds from the placement of Class 21 Notes issued on July 18, 2024, as follows:

  • the sum of US$38,250,000.00 for the total prepayment of the outstanding principal under the loan agreement dated March 4, 2019, between Telecom Argentina and the International Finance Corporation ("IFC"), in accordance with clause 2.6(a) of said agreement; and

  • the sum of US$125,000,060.00 for the partial prepayment of the outstanding principal under the loan agreement dated June 28, 2022, between Telecom Argentina and IFC, in accordance with clause 2.6(a) of said agreement.

IDB Prepayment

On September 3, 2024, the Company applied part of the proceeds from the placement of Class 21 Notes issued on July 18, 2024, for the partial prepayment of the outstanding principal under the loan agreement dated May 29, 2019, between Telecom Argentina and the Inter-American Investment Corporation, in accordance with clause 2.6(a) of said agreement, for the sum of US$135,000,000.

Resolution - Nullity of Decree 690/2020

On September 25, 2024, the Company was notified of the decision by Chamber II of the Federal Court of Appeals on Administrative Litigation Matters, which withdrew the extraordinary appeals filed by the Executive Power and ENACOM against the ruling of the aforementioned Court of Appeals dated June 6, 2024, which upheld the first instance judgment that declared Decree 690/2020 and ENACOM Resolutions N° 1466/2020 and 1467/2020 null.

Additionally, on October 16, 2024, the Company was notified of the decision of the Federal Administrative Court No. 8 to consider the case concluded and to be kept in records.

Open Gateway and OpenXpand

Telecom continued advancing its API deployment roadmap, as the leader in the country's GSMA Open Gateway initiative, which drives innovation by enabling developers and cloud providers to quickly implement services in a standardized manner, while proposing a new paradigm that allows for the monetization of network assets.

In addition to the already launched SIM SWAP and Number Verification APIs, Telecom added two new APIs, Device Location and Device Status, which also contribute to the security and anti-fraud value proposition.

Recently, as a new step in its partnership with Intraway, the Company introduced OpenXpand, a new digital platform whose purpose is to position itself as the primary partner for telecommunications operators in the Latin American region to accelerate the adoption of the new business paradigm proposed by Open Gateway. OpenXpand is a cloud-native, secure, and scalable platform that allows telecommunications operators in Latin America to expose and monetize their networks through standardized APIs. These APIs enable applications across various industries, such as fintech or e-commerce, to improve their digital workflows quickly and efficiently.

Investor Day - NYSE

During this period, the Company celebrated three uninterrupted decades of listing on the NYSE, where it began trading on December 9, 1994. As part of its anniversary at the NYSE, the Company held an Investor Day and had the opportunity to welcome financial analysts from international markets to present its business strategy.

Telecom is one of the 20 Argentine companies listed on the world's largest financial center and the only technology company to have completed 30 years of uninterrupted listing there.

Relevant events after September 30, 2024

Additional Class 21 International Notes Issuance

In October 2024, the Company re-entered the international credit markets again, reopening its Class 21 Notes as detailed below:

Offered Nominal Value: USD 275,530,000
Number of Offers Received: 75
Nominal Value of Notes to be Issued: USD 200,000,000
Interest Rate: 9.5% nominal annual, semiannual payments
Issue Price: 103.286% of the Nominal Value of the Notes
Yield: 8.75%
Issuance and Settlement Date: October 29, 2024
Repayment: The principal of the Notes will be repaid in three installments as follows: (i) 33% of the principal on July 18, 2029; (ii) 33% of the principal on July 18, 2030; (iii) 34% of the principal on the Maturity Date, July 18, 2031.

The expected use of proceeds is the refinancing of existing debt. This transaction, along with other liability management transactions carried out during the quarter, has allowed the Company to improve its average financing cost and extend the average maturity of its debt.

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 September 30, 2024, Telecom Argentina owns 2,153,688,011 issued and outstanding shares.

For more information, please contact Investor Relations:

Luis Fernando Rial Ubago
lfrialubago@teco.com.ar

Tomás Pellicori
tlpellicori@teco.com.ar

Livio Gentile
lagentile@teco.com.ar

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 S.A.



View the original press release on accesswire.com

FAQ

What was Telecom Argentina's (TEO) net income for 9M24?

Telecom Argentina reported a net income of P$951,912 million for the nine-month period ended September 30, 2024.

How much did TEO's consolidated revenues decline in 9M24?

Telecom Argentina's consolidated revenues decreased by 10.4% to P$2,852,341 million compared to 9M23.

What was TEO's mobile subscriber growth in Argentina during 9M24?

Mobile subscribers in Argentina increased by 668,000 to reach 21.4 million compared to 9M23.

How much did TEO's Net Financial Debt decrease in 9M24?

Net Financial Debt decreased by 37.6% in constant currency to P$2,325,294 million as of September 30, 2024.

Telecom Argentina S.A.

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