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]

Group 1 - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1]

Financial Performance - Telecom Argentina's 9M25 adjusted EBITDA reached US$41 billion, a 73% increase compared to 9M24[12] - The company's 9M25 revenues showed an EBITDA margin of 305%, compared to 288% in 9M24[12] - Service revenues increased by 5% to P$3,860 million in 9M25, compared to P$3,679560 million in 9M24[24] - The company's 9M25 CAPEX was US$615 million, focused on mobile and FTTH network deployment[12] - Free cash flow generation for 9M25 was US$402 million[76] Operational Highlights - The company has a leading position in the market with 32 million Pay TV subscribers and 203 million Mobile subscribers[13] - Broadband subscribers increased to 41 million[14] - Personal Pay onboarded approximately 44 million clients[14] - Mobile ARPU increased by 10% for TEO and 5% for TMA[26] - Broadband ARPU increased by 3% for TEO and 14% for TMA[26] - Pay TV ARPU increased by 2% for TEO and 19% for TMA[26] Debt and Leverage - Net debt to estimated proforma EBITDA LTM9M25 was 19x[12] - Total funds raised in 2025 amounted to US$27 billion[92]

Core Insights - Telecom Argentina S.A. (NYSE:TEO) is preparing to release its quarterly earnings on November 11, 2025, with an anticipated earnings per share (EPS) of -$0.49 and projected revenue of approximately $1.54 billion [1][5] Financial Metrics - The company has a negative price-to-earnings (P/E) ratio of -245.48, indicating ongoing losses, while the price-to-sales ratio of 1.41 suggests some investor confidence in revenue generation [2][5] - The enterprise value to sales ratio is 2.20, and the enterprise value to operating cash flow ratio is 10.44, indicating that while TEO generates cash flow, it may not be sufficient to cover its valuation comfortably [3] - TEO's debt-to-equity ratio is approximately 0.76, indicating a moderate level of debt compared to equity, but the current ratio of 0.43 points to potential liquidity issues [4][5]

Core Insights - Telecom Argentina reported a consolidated net loss of P$272,543 million for the nine-month period ended September 30, 2025, compared to a net income of P$1,254,213 million in the same period of the previous year [2][3] - Consolidated revenues reached P$5,622,561 million, reflecting a 50.7% increase compared to the same period last year, driven by the inclusion of Telefónica Móviles Argentina (TMA) revenues [2][8] - The company experienced a significant increase in operating income before depreciation, amortization, and impairment, totaling P$1,716,387 million, which is a 58.4% increase year-over-year [2][3] Revenue Performance - Service revenues amounted to P$5,327,305 million, with mobile service revenues contributing P$2,735,909 million, marking a 79.8% increase compared to the previous year [9][12] - The average revenue per user (ARPU) for mobile services (excluding TMA) was P$8,171.1, reflecting a 13.6% increase in real terms [13] - Internet service revenues reached P$1,235,080 million, growing by 29.2% compared to the previous year, with a subscriber base of 4.1 million [17][18] Customer Base Dynamics - Telecom's total mobile accesses (excluding TMA) decreased by 5.0% to 20.3 million, while TMA's mobile accesses increased by 1.6% to 19.1 million [10][11] - Fixed broadband accesses grew by 2.5%, totaling 4.1 million, while pay TV subscribers increased to 3.2 million, a 1.4% rise [2][17] - The average monthly churn for mobile services was 2.1% for Telecom (excluding TMA) and 1.8% for TMA [13][11] Financial Position - Consolidated net financial debt reached P$4,433,988 million, an increase of 44.3% in real terms compared to December 31, 2024, primarily due to financing for the acquisition of TMA [3][42] - Consolidated operating costs, including depreciation, amounted to P$5,270,240 million, reflecting a 35.2% increase year-over-year [34][35] - The company recorded a consolidated loss of P$685,200 million in net financial results, a significant decline from a gain of P$1,961,278 million in the previous year [37][39] Capital Expenditures and Investments - Consolidated CAPEX totaled P$849,370 million, a 73.3% increase compared to the previous year, with a focus on expanding both fixed and mobile data services [43][45] - Investments in property, plant, and equipment, intangible assets, and rights of use assets amounted to P$989,760 million, including P$279,459 million from TMA [43][45] Market Capitalization - As of November 7, 2025, Telecom Argentina's market capitalization was reported at US$5,121.5 million [2]

Core Insights - The article provides a market analysis focusing on major indices such as Nasdaq 100 and S&P 500, as well as specific companies like MercadoLibre Inc and Telecom Argentina SA ADR [1] Group 1: Market Indices - Nasdaq 100 and S&P 500 are highlighted as key indicators of market performance, reflecting overall investor sentiment and economic conditions [1] Group 2: Company Analysis - MercadoLibre Inc is discussed in terms of its growth potential and market position within the e-commerce sector, indicating strong performance metrics [1] - Telecom Argentina SA ADR is analyzed regarding its operational challenges and market dynamics, which may impact its future performance [1]

Financial Performance - Total revenues for the six-month period ended June 30, 2025, increased to ARS 3,357,004 million, up from ARS 2,324,104 million in the same period of 2024, representing a growth of 44.4%[21] - Operating income for the six-month period was ARS 176,027 million, compared to a loss of ARS 86,575 million in the same period of 2024, indicating a significant turnaround[21] - Net loss for the three-month period ended June 30, 2025, was ARS 174,361 million, compared to a net income of ARS 82,068 million in the same period of 2024, reflecting a decline of 312.5%[24] - As of June 30, 2025, the net income (loss) for the period was a loss of ARS 75,554 million, compared to a net income of ARS 1,197,930 million for the same period in 2024[30] - Total cash flows from operating activities for the six-month period ended June 30, 2025, were ARS 686,868 million, an increase from ARS 458,218 million in 2024[30] - The company reported total comprehensive income of ARS (67,448) million for the six-month period ended June 30, 2025, compared to ARS 1,029,254 million in 2024[30] - Total financial results, net for the six-month period ended June 30, 2025, were $(215,364) million, a decrease from $1,792,664 million in the same period of 2024[121] Assets and Liabilities - Total assets as of June 30, 2025, amounted to ARS 14,558,789 million, an increase from ARS 12,593,626 million as of December 31, 2024, representing a growth of 15.6%[19] - Current liabilities increased to ARS 3,218,296 million as of June 30, 2025, from ARS 2,254,072 million at the end of 2024, marking a rise of 42.8%[19] - Equity attributable to the controlling company decreased slightly to ARS 6,224,353 million as of June 30, 2025, from ARS 6,244,016 million at the end of 2024, a decline of 0.3%[19] - The company reported a net liability of $4,251,122 million in foreign currencies as of June 30, 2025, compared to $2,615,556 million at the end of 2024, reflecting a rise of approximately 62.5%[105] - The company reported a net carrying value of intangible assets at $2,569,533 million, up from $2,267,701 million, reflecting a 13.3% increase[81] Employee Expenses - Employee benefit expenses for the six-month period ended June 30, 2025, rose to ARS 803,339 million, compared to ARS 549,934 million in the same period of 2024, an increase of 46.1%[21] - Employee benefit expenses and severance payments increased to $803,339 million in the first half of 2025, up from $549,934 million in 2024, reflecting a rise of about 46%[158] Capital Expenditures - CAPEX for the six-month period ended June 30, 2025, totaled ARS 481,189 million, up from ARS 313,127 million in the same period of 2024, representing a growth of approximately 53.7%[62] - The company’s CAPEX for the first half of 2025 was $430,744 million, up from $289,612 million in 2024, indicating a 48.8% increase in capital expenditures[79] Acquisitions and Consolidation - The acquisition of TMA was completed on February 24, 2025, leading to the establishment of a new reportable segment, "ICT Services provided in Argentina – TMA Networks"[47] - The company acquired 99.999625% of TMA's capital on February 24, 2025, leading to the consolidation of TMA's results from the acquisition date[157] - The acquired business generated revenues of $968,814 million and a net loss of $13,761 million from the acquisition date to June 30, 2025[136] Revenue Breakdown - Mobile services revenue for the three-month period ended June 30, 2025, was $947,429 million, up from $477,381 million in 2024, indicating an increase of about 98.5%[116] - Revenues from customers in Argentina for the three-month period ended June 30, 2025, were $1,821,984 million, compared to $1,105,186 million in 2024, showing an increase of about 65%[62] - Internet services revenues grew by 27.7% to $744,556 million in 1H25, with TMA contributing $131,955 million to this segment[171][172] - Cable television services revenues increased by 14.1% to $386,699 million in 1H25, driven by a 5.3% rise in ARPU and a 2.3% increase in customer base[176][177] Operating Costs - Operating expenses for the six-month period ended June 30, 2025, totaled $3,180,977 million, an increase from $2,410,679 million in the same period of 2024, representing a year-over-year growth of approximately 32%[120] - Total operating costs without depreciation, amortization, and impairment reached $2,349,851 million in 1H25, reflecting a $716,005 million or 43.8% increase from 1H24[189] Regulatory and Legal Matters - The company has ongoing administrative proceedings regarding the integration with TMA, with a provisional measure in place for six months[139] - The Company has appealed a resolution from the Secretary of Industry and Commerce regarding the acquisition, which was granted by the Federal Court of Appeals[140] Inflation and Economic Indicators - The National Consumer Price Index (CPI) showed an annual variation of 39.4% as of June 30, 2025, down from 271.5% in 2024, indicating a significant decrease in inflation rates[68]

Financial Performance - Telecom Argentina's 1H25 adjusted EBITDA reached $399 million, a 54% increase compared to 1H24[12] - The company reported a 30% EBITDA margin in 1H25, compared to 29.7% in 1H24[12, 28] - Telecom Argentina's 1H25 CAPEX totaled $359.336 million[81] - Telecom Argentina raised a total of approximately $2.6 billion in USD equivalent through various transactions[105] Telefónica Móviles Argentina (TMA) Acquisition - The acquisition of TMA contributed to a proforma revenue of $4.009 billion and EBITDA of $1.129 billion for FY24[24] - TMA's 1H25 figures include just four months of contribution to Telecom Argentina's consolidated results[24] - Actions are being taken to improve TMA's EBITDA margin, targeting an 11% margin as reported in 1H25[33] Operational Highlights - Personal Pay, Telecom Argentina's digital wallet, has onboarded over 4.2 million clients, representing a 44% year-over-year increase[12, 64] - Mobile ARPU evolution in US$ increased by 15% for TMA and 19% for TEO[48] - Broadband ARPU evolution in US$ increased by 12% for TMA and 22% for TEO[48] Debt Management - Successful issuance of Class 24 Notes for $800 million in May and a tap for $200 million in July, reducing the bond's average financing cost from 9.50% to 9.36%[12] - The company has a balanced debt maturity profile, with approximately 72% of debt in US dollars, RMB, and Guaraní[111] Regulatory and Environmental - Telecom Argentina submitted its comments to the CNDC regarding the June 19 technical opinion[37] - Telecom Argentina's near-term science-based targets have been approved, reinforcing the company's environmental commitments[115]