Core Viewpoint - Telecom Argentina reported a significant increase in consolidated revenues and service revenues, primarily driven by the acquisition of Telefónica Móviles Argentina (TMA), marking a return to real growth in service revenues for the legacy business [2][4][6]. Financial Performance - Consolidated revenues exceeded $5.7 billion, reflecting a 53% year-over-year increase in constant Argentine pesos, with service revenues surpassing $5.4 billion, up 55% year-over-year in real terms [2][6]. - The consolidated EBITDA margin improved to approximately 30.3%, with a nominal EBITDA margin of 31.7% for 2025, indicating a margin expansion of over 200 basis points compared to 2024 [5][10]. - The company reported a consolidated net loss of approximately ARS 145 million in 2025, a decline from a net income of almost ARS 1.4 trillion in 2024, attributed to foreign exchange losses [14]. Subscriber Trends - Broadband accesses increased by 3.2% year-over-year to 4.2 million, driven by FTTH adoption, while Pay TV subscribers rose by 1.4% to nearly 3.3 million [8][9]. - Mobile subscribers saw a decline, with prepaid accesses falling 10.7% year-over-year, attributed to updated disconnection criteria, while postpaid accesses decreased by 3.2% [8][9]. Capital Expenditures and Investments - Capital expenditures totaled almost ARS 1.5 trillion (over $1 billion), representing 17.8% of revenues and a 98% year-over-year increase in constant pesos, focusing on FTTH and 5G deployment [15][17]. - The company prioritized investments in FTTH expansion and 5G rollout, with significant network upgrades and new site deployments [17]. TMA Acquisition Impact - TMA contributed nearly $1.9 billion in consolidated revenues and over $0.4 billion in consolidated EBITDA during 2025, with standalone service revenues growing 4% in real terms to approximately $2.1 billion [6][12]. - TMA's efficiency plan aims to improve its margin closer to Telecom's, with a reported EBITDA margin of approximately 26% excluding severance charges, up from 11% in fiscal 2024 [11]. Cash Flow and Debt Management - Free cash flow before dividends and interest payments was over $0.6 billion in 2025, with year-over-year expansion exceeding $0.2 billion [18]. - Net debt to estimated pro forma EBITDA was about 1.7x in 2025, improving from 2024, with gross debt of $3.7 billion and cash and equivalents over $0.5 billion [19][21].

Economic Conditions - The Argentine Peso depreciated approximately 41.0% against the U.S. dollar from P$1,032 per dollar on December 31, 2024, to P$1,455 per dollar on December 31, 2025, with a monthly depreciation rate of about 3.0%[132]. - Inflation in Argentina reached 211.4% in 2023, with a notable decrease to 117.8% in 2024 and 31.5% in 2025, indicating a volatile economic environment[165]. - The Argentine economy contracted again in 2023 and 2024, with expectations of returning to growth in 2025[170]. - The ongoing geopolitical conflicts and global economic conditions may negatively impact the Argentine economy and the company's operations[171][174]. - Argentina's ability to obtain financing from international markets remains limited, affecting its capacity for economic growth[186]. Regulatory Environment - The Argentine government declared a public emergency in various sectors until December 31, 2025, which may impact the company's operations and regulatory framework[146]. - The company is subject to compliance with anti-corruption and anti-money laundering laws, which could result in penalties affecting its reputation and financial condition[127]. - The company is subject to significant regulatory risks in Argentina, which could adversely affect operations and financial condition due to changing laws and local regulations[214]. - The company faces potential regulatory or antitrust requirements that could impose conditions or require divestitures, impacting its business strategy and financial condition[213]. - The Argentine Government established the Argentine National Competition Authority (ANC) on November 17, 2025, which now oversees the regulatory review of the acquisition[209]. Financial Performance - In 2025, Telecom Argentina's revenues amounted to P$8,328,814 million, with a net loss of P$145,304 million and Adjusted EBITDA of P$2,525,535 million[318]. - As of December 31, 2025, the company's total indebtedness was P$5,436,615 million, a 43.6% increase from P$3,785,000 million in 2024[271]. - The company incurred US$1,170 million in debt financing for the acquisition of TMA, which may impact its financial flexibility and ability to make strategic investments[276]. - The market price of the company's ADSs decreased by approximately 8% in 2025, following increases of 79% in 2024 and 39% in 2023[284]. - As of December 31, 2025, the company recorded provisions estimated to cover probable contingencies, but increased risks from various proceedings could adversely affect financial results[246]. Competition and Market Dynamics - Telecom Argentina's operations are significantly affected by the economic and political conditions in Argentina, including high inflation and currency devaluation risks[128]. - The company faces challenges from increased competition and the rapid adoption of OTT and satellite internet services, which are eroding traditional revenue streams[127]. - The emergence of low-Earth orbit (LEO) satellite service providers is creating a structural shift in competitive dynamics, posing a direct challenge to traditional fixed-line networks[226]. - The competitive landscape is further intensified by the expansion of fixed wireless access (FWA) services, which compete for the same customer base in the internet market[226]. - The company faces intense competition from global players in the telecommunications and fintech sectors, which could erode its market position and revenue streams[221][222]. Currency and Foreign Exchange Risks - As of December 31, 2025, the company had P$5,436,854 million in liabilities denominated in foreign currencies, exposing it to significant foreign exchange risks[142]. - The company is highly exposed to the risks associated with the fluctuation of the Argentine Peso, which could adversely affect its financial condition and results of operations[142]. - The company has entered into DFI agreements and futures contracts to hedge some of its exposure to foreign currency fluctuations, but remains vulnerable to risks[142]. - Restrictions on foreign exchange and capital repatriation may impair the company's ability to pay dividends and fulfill commitments[288]. - The company faces potential restrictions on transferring funds abroad, which could hinder its ability to pay dividends and meet foreign currency obligations[142]. Acquisition and Investment - The company completed the acquisition of TMA for a purchase price of US$1,245 million (P$1,660,045 million) on February 24, 2025[206]. - The acquisition included assuming a debt owed to TMA of US$126 million (P$167,887 million) and paying US$1,119 million (P$1,492,158 million) in cash[206]. - The acquisition is subject to regulatory approval from ENACOM and the ANC, with ongoing evaluations and potential objections from the Secretary of Industry and Commerce[207][208]. - The company may face challenges in obtaining expected benefits from the acquisition of TMA due to integration difficulties[275]. - Future sales of substantial amounts of Class B Shares and ADSs may depress their market prices[286]. Operational Risks - The company faces significant cybersecurity risks, with potential interruptions to operations and financial losses due to cyberattacks, which are not covered by current insurance policies[250][248]. - The adoption of AI technologies presents risks, including potential inaccuracies and compliance challenges, which could adversely affect customer interactions and operational efficiency[252][253]. - Climate change poses risks to infrastructure and operations, potentially increasing costs and disrupting service delivery, although current impacts are not deemed significant[255]. - The company relies on strategic suppliers for equipment and materials, exposing it to risks related to compliance and potential disruptions in service quality[265][266]. - Increased churn rates in mobile telephony, cable television, and internet services could materially impact the company's revenues and operational results[233]. Stakeholder and Governance - Telecom Argentina is one of the largest private-sector companies in Argentina in terms of revenues, net income, capital expenditures, and number of employees[316]. - CVH owns 28.16% of Telecom Argentina's total capital stock, while GC Dominio owns 26.44% of CVH, representing 64.24% of its voting stock[308]. - Telecom Argentina's status as a foreign private issuer allows it to follow alternate corporate governance standards, which may limit investor protections[304]. - The company has a Voting Trust Agreement that influences shareholder decisions on significant matters affecting Telecom Argentina[310]. - Stakeholders' expectations regarding ESG practices may lead to additional costs and regulatory requirements, impacting the company's reputation if not adequately addressed[256][257].

Telecom Argentina (NYSE:TEO) Q4 2025 Earnings call March 11, 2026 11:00 AM ET Company ParticipantsFederico Pra - Interim CFOLuis Rial Ubago - Head of Investor RelationsLuis Rial UbagoGood morning. On behalf of Telecom Argentina, I would like to thank everybody for participating in this conference call. The participants of today's conference call are Roberto Nóbile, Chief Executive Officer, Federico Pra, Interim Chief Financial Officer, and myself, Luis Rial Ubago, Head of Investor Relations. The purpose of ...

Financial Data and Key Metrics Changes - Telecom's consolidated revenues totaled over $5.7 billion, up 53% year-over-year in constant Argentine pesos, primarily driven by the incorporation of TMA results [5] - Consolidated EBITDA margin reached over 30.3%, an increase of over 200 basis points compared to the same period in 2024, with a comparable EBITDA margin of 33.7% excluding TMA contributions [6][21] - Consolidated CapEx amounted to approximately $1.0 billion, an 88% increase in pesos versus fiscal year 2024, focusing on the expansion of fixed and mobile access networks [7][29] - Net debt to estimated pro forma EBITDA leverage ratio improved to around 1.7x in fiscal year 2025, reflecting a solid credit profile [8][34] Business Line Data and Key Metrics Changes - Service revenues reached over $5.4 billion, increasing 55% year-over-year in real terms, with mobile, broadband, and Pay TV service revenues growing at a weighted average growth rate of 7% [11][12] - Mobile subscriber bases of Telecom and TMA reached 19.9 million and 19.1 million accesses respectively, consolidating market leadership [10] - Broadband subscriber base increased by 3.2% year-over-year, reaching 4.2 million accesses, driven by higher FTTH adoption [14] - Pay TV subscriptions grew for the second consecutive year, with Personal Flow's unique customers increasing by over 490,000 or 33% compared to the previous year [16] Market Data and Key Metrics Changes - In Paraguay, revenues grew almost 7% year-over-year in U.S. dollars, with EBITDA increasing 12% year-over-year, reaching $115 million [18] - In Uruguay, the broadband market is developing, with potential for growth as customer additions began at the end of 2024 [19] Company Strategy and Development Direction - The company continues to prioritize the expansion of its 5G and FTTH networks, achieving record levels of deployment during the year [40] - A joint venture with Banco Macro was created to accelerate the growth of Personal Pay and expand its product offerings [20] - TMA is executing an efficiency plan to align its EBITDA margin with Telecom's margin, focusing on cost optimization and operational improvements [25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business model and the effectiveness of cost efficiency initiatives, with a strong improvement in EBITDA margin [40] - The company remains focused on sustaining long-term growth while maintaining sound financial management and a solid cash position [41][42] Other Important Information - The company was recognized with multiple awards for its financial strategy and execution, including the Southern Cone Deal of the Year for the acquisition of TMA [9][37] - Free cash flow reached over $0.6 billion in fiscal year 2025, with a cash position exceeding $0.5 billion at year-end [41] Q&A Session All Questions and Answers Question: What are the expectations for subscriber growth in the broadband segment? - The company noted a continued recovery in broadband demand dynamics, supported by FTTH expansion and improved customer acquisition strategies [40] Question: How is the integration of TMA progressing? - The integration is on track, with TMA showing significant improvements in profitability and operational efficiency, aligning its EBITDA margin closer to Telecom's [25] Question: What are the company's plans for future investments? - Future investments will focus on enhancing network quality and expanding digital financial services, with a strong emphasis on 5G and FTTH deployment [40]

Financial Data and Key Metrics Changes - Telecom Argentina's consolidated revenues reached over $5.7 billion, a 53% year-over-year increase in constant Argentine pesos, primarily due to the incorporation of Telefónica Móviles Argentina (TMA) results [5] - The consolidated EBITDA margin improved to over 30.3%, an increase of over 200 basis points compared to the previous year, with a comparable EBITDA margin of 33.7% excluding TMA contributions [6][20] - Consolidated CapEx was approximately $1.0 billion, an 88% increase in pesos compared to fiscal year 2024, focusing on expanding fixed and mobile access networks [7] Business Line Data and Key Metrics Changes - Service revenues reached over $5.4 billion, a 55% year-over-year increase in real terms, incorporating TMA's contribution [11] - Excluding TMA, total service revenues grew by 4% year-over-year in real terms, with mobile, broadband, and Pay TV service revenues growing at a weighted average rate of 7% [12] - The mobile subscriber base for Telecom and TMA reached 19.9 million and 19.1 million accesses respectively, consolidating market leadership [10] Market Data and Key Metrics Changes - In Paraguay, revenues grew almost 7% year-over-year in US dollars, with EBITDA increasing by 12% to $115 million [17] - The broadband customer base in Paraguay reached 345,000, while Pay TV subscribers amounted to 110,000 [17] - Personal Pay onboarded nearly 1 million clients in Paraguay, reflecting strong market performance [17] Company Strategy and Development Direction - The company continues to prioritize the expansion of its fiber to the home (FTTH) network and 5G infrastructure, marking the largest FTTH rollout since the Telecom-Cablevisión merger [29] - A joint venture with Banco Macro was created to enhance Personal Pay's growth and product offerings, aiming to deepen customer engagement across connectivity and financial services [19] - TMA is executing an efficiency plan to align its EBITDA margin with Telecom's, focusing on cost optimization and operational improvements [24] Management's Comments on Operating Environment and Future Outlook - Management highlighted the recovery in service revenues and ARPU growth across all segments, reflecting disciplined pricing and improved commercial execution [39] - The company expressed confidence in its ability to sustain long-term growth through strategic investments in network quality and digital financial services [38] - Management noted that the acquisition of TMA did not negatively impact the leverage ratio, indicating a solid balance sheet and resilience to FX fluctuations [33] Other Important Information - The company recorded a consolidated net loss of approximately ARS 145 million in fiscal year 2025, compared to a net income of ARS 1.4 trillion in fiscal year 2024, primarily due to FX exchange losses [27][28] - Free cash flow reached over $0.6 billion, with a cash position exceeding $0.5 billion at year-end, providing financial flexibility [39] Q&A Session All Questions and Answers Question: What are the expectations for subscriber growth in the broadband segment? - The company noted a return to customer growth in broadband for the first year since 2021, supported by FTTH expansion and solid commercial performance [10] Question: How is the integration of TMA progressing? - Management indicated that TMA's efficiency plan is delivering meaningful improvements, with a significant recovery in EBITDA margin [24] Question: What is the outlook for the company's financial position? - The company emphasized its strong cash flow generation and improved debt maturity profile, positioning it well for sustained long-term growth [40]

March 2026 Telecom Argentina 4Q25 & FY25 Earnings Release 1 Disclaimer This presentation does not constitute an offer to sell or the solicitation of any offer to buy any securities of Telecom Argentina S.A. (the "Company"), in any jurisdiction. Securities may not be offered or sold in the United States absent registration with the U.S. Securities Exchange Commission ("SEC"), the Comisión Nacional de Valores (Argentine National Securities and Exchange Commission, or "CNV") or an exemption from such registrat ...

Core Insights - Telecom Argentina S.A. reported a consolidated net loss of P$145,304 million for FY25, a significant decline from a net income of P$1,359,230 million in FY24, primarily due to higher exchange rate losses and depreciation of the Argentine peso [1][2][3] - Consolidated revenues for FY25 reached P$8,328,814 million, reflecting a 54.7% increase compared to FY24, driven by the inclusion of ten months of results from Telefónica Móviles Argentina (TMA) [1][2][3] - The company’s operating income before depreciation, amortization, and impairment increased by 64.8% to P$2,525,535 million, with an operating margin of 30.3% [1][2][3] Financial Performance - Service revenues totaled P$7,902,043 million in FY25, with mobile service revenues accounting for P$4,092,162 million, marking an 85.2% increase compared to FY24 [2][3] - The average revenue per user (ARPU) for mobile services increased by 15.8% in real terms, reaching P$9,081.9 [2][3] - Consolidated CAPEX for FY25 was P$1,485,577 million, representing a 98.3% increase from FY24, with a focus on expanding both fixed and mobile data services [1][2][3] Customer Base and Market Position - The total mobile customer base for Telecom (excluding TMA) decreased by 7.8% to 19.9 million, primarily due to disconnections of inactive prepaid lines [1][2][3] - TMA's mobile subscribers increased by 1.6% to 19.1 million, with a notable growth in postpaid customers [2][3] - The fixed broadband segment saw a 3.2% increase in accesses, totaling 4.2 million, while TV accesses increased by 1.4% to 3.3 million [1][2][3] Operational Highlights - The company’s operating costs, including depreciation and amortization, rose by 39.8% to P$7,878,767 million, with labor costs increasing significantly due to TMA's consolidation [4][5] - Telecom Argentina's headcount (excluding TMA) was reported at 18,690 employees as of December 31, 2025 [4][5] - The company was recognized for having the fastest 5G network in Argentina, enhancing its competitive position in service quality [2][3] Strategic Developments - A merger by absorption of TELEDIFUSORA SAN MIGUEL ARCANGEL S.A. (TSMA) was approved, effective January 1, 2026, consolidating operations under Telecom Argentina [5][6] - The company consolidated its commercial brands under the Personal brand, streamlining its market presence across various segments [5][6] - An agreement with Banco Macro S.A. was established to promote the growth of Micro Sistemas, enhancing the Personal Pay platform [5][6]

Core Viewpoint - Telecom Argentina Stet - France Telecom S.A. (TEO) has reached a significant support level, indicating a potential bullish breakout from a technical perspective due to a "golden cross" formation [1] Technical Analysis - TEO's 50-day simple moving average has recently crossed above its 200-day moving average, signaling a bullish trend [1] - A golden cross consists of three stages: a downtrend that bottoms out, a crossover of the shorter moving average above the longer one, and continued upward momentum [2] Performance Metrics - TEO shares have increased by 12.2% over the past four weeks, suggesting positive momentum [3] - The company currently holds a 3 (Hold) rating on the Zacks Rank, indicating potential for further gains [3] Earnings Expectations - There has been one upward revision in earnings expectations for the current quarter, with no downward revisions in the past 60 days, supporting the bullish outlook [3] - The Zacks Consensus Estimate for TEO has also moved upward, reinforcing investor confidence in the stock's upward trend [3][4]

Core Insights - The article emphasizes the importance of identifying undercovered stocks in Brazil and Latin America, suggesting that the best investment opportunities may not be immediately obvious [1]. Group 1: Company Focus - The analyst covers stocks primarily in Brazil and Latin America, indicating a specialized focus on these markets [1]. - There is a mention of occasional analysis on global large-cap stocks, suggesting a broader perspective when necessary [1]. Group 2: Analyst's Position - The analyst has no current stock or derivative positions in the companies mentioned, indicating an unbiased perspective [2]. - There are no plans to initiate any positions within the next 72 hours, reinforcing the independence of the analysis [2]. Group 3: Disclosure and Transparency - The article is written solely by the analyst, expressing personal opinions without external compensation, which adds credibility to the insights provided [2]. - The disclosure notes that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [3].

Financial Performance - Revenues for the three-month period ended September 30, 2025, reached ARS 2,065,211 million, a 59.5% increase compared to ARS 1,295,358 million for the same period in 2024[23] - The net loss for the nine-month period ended September 30, 2025, was ARS 272,543 million, compared to a net income of ARS 1,254,213 million for the same period in 2024, indicating a significant decline[23] - Total revenues for the nine-month period ended September 30, 2025, reached $5,622,561 million, a 49.5% increase from $3,758,165 million in the same period of 2024[121] - The net loss for 9M25 was $272,543 million, compared to a net income of $1,254,213 million in 9M24, representing (4.8)% of revenues[162] - Adjusted EBITDA for 9M25 totaled $1,716,387 million, representing 30.5% of revenues, up from $1,083,434 million or 28.8% of revenues in 9M24[163] Assets and Liabilities - As of September 30, 2025, total assets increased to ARS 15,630,443 million, up from ARS 13,345,219 million at the end of 2024, representing a growth of approximately 17.2%[21] - Total current liabilities increased to ARS 3,325,458 million as of September 30, 2025, compared to ARS 2,388,597 million at the end of 2024, reflecting a rise of approximately 39.2%[21] - The company’s equity attributable to the controlling company decreased to ARS 6,436,731 million as of September 30, 2025, down from ARS 6,616,647 million at the end of 2024, a decline of approximately 2.7%[21] - The company reported a total of $421,050 million in current assets at fair value as of September 30, 2025, compared to $127,508 million as of December 31, 2024[116] Operating Results - Operating income for the three-month period ended September 30, 2025, was ARS 165,788 million, recovering from an operating loss of ARS 48,404 million in the same period of 2024[23] - Total operating costs without depreciation reached $3,906,174 million in 9M25, an increase of 46.0% compared to 9M24, largely due to TMA's consolidation[196] - Employee benefit expenses for the nine-month period totaled $(1,358,615), reflecting the company's commitment to workforce management[58] - Operating expenses for the nine-month period ended September 30, 2025, totaled $5,270,240 million, compared to $3,898,310 million in 2024, reflecting a 35.2% increase[126] Cash Flow and Investments - Operating activities generated cash flows of ARS 1,296,377 million for the nine-month period ended September 30, 2025, an increase from ARS 631,125 million in 2024[32] - Cash flows used in investing activities totaled ARS 2,065,653 million for the nine-month period ended September 30, 2025, compared to ARS 329,121 million in the previous year[32] - Total investments amounted to $302.55 million as of September 30, 2025, compared to $57.56 million in the previous period[76] Borrowings and Financial Results - Financial results from borrowings showed a loss of ARS 679,159 million for the nine-month period ended September 30, 2025, compared to a gain of ARS 1,779,364 million in the same period of 2024[23] - Total borrowings rose to $5.12 billion as of September 30, 2025, up from $3.51 billion at the end of the previous year[89] - The company reported financial results from borrowings of $(679,159) for the nine-month period, impacting overall profitability[58] Acquisition and Market Expansion - The acquisition of TMA was completed on February 24, 2025, for a total purchase price of $1,245 million, which includes assuming a debt of $126 million[136][138] - The company financed the acquisition of TMA through two loans totaling US$1,170 million, net of issuance costs amounting to US$1,142 million[95] - The acquisition of TMA and other subsidiaries has expanded the company's service offerings in the ICT sector, enhancing its market position in Argentina[42] Customer and Service Performance - Mobile services revenue for the three-month period ended September 30, 2025, was $1,035,232 million, up 96.1% from $528,354 million in 2024[121] - Internet services revenues amounted to $1,235,080 million in 9M25, a 29.2% increase compared to $955,895 million in 9M24[175] - The customer base for mobile services in Argentina decreased to 20.3 million as of September 30, 2025, down from 21.4 million in 2024, with a churn rate of 2.1%[171] Regulatory and Compliance - The company has established obligations to comply with certain financial ratios, calculated quarterly based on contractual definitions[99] - The company complies with the financial ratios established in the loan agreements, including the EBITDA/Interest Net ratio and the Net Debt/EBITDA ratio[101] Future Outlook - Future outlook includes a focus on market expansion and potential new product developments to enhance revenue streams[58]