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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of August 2025 Commission File Number: 001-13464 Telecom Argentina S.A. (Translation of registrant's name into English) General Hornos, No. 690, (C1272ACK) Autonomous city of Buenos Aires, Republic of Argentina (Address of principal executive offices) Indicate by check mark whether the registrant files or will ...

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]

[FORM 6-K Filing Information](index=1&type=section&id=FORM%206-K%20Filing%20Information) Telecom Argentina S.A. filed Form 6-K for May 2025, including unaudited condensed consolidated financial statements and an operating and financial review - Telecom Argentina S.A. filed Form 6-K for May 2025, including unaudited condensed consolidated financial statements and an operating and financial review[1](index=1&type=chunk)[4](index=4&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's unaudited condensed consolidated financial statements, including the statement of financial position, income, comprehensive income, changes in equity, and cash flows - The unaudited condensed consolidated financial statements for Q1 2025 are prepared under IAS 34 and include key financial statements[5](index=5&type=chunk)[6](index=6&type=chunk) [Glossary of Terms](index=5&type=section&id=Glossary%20of%20Terms) This section defines non-technical terms like ADS, ADR, CAPEX, and IFRS Accounting Standards to enhance reader comprehension of the financial statements - The glossary defines key financial and company-specific terms to aid reader understanding of the financial statements[7](index=7&type=chunk)[16](index=16&type=chunk) [Consolidated Statements of Financial Position](index=7&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) Total assets increased by **18.15%** to **$14,035,721 million**, while total liabilities rose by **35.28%** to **$7,941,066 million** as of March 31, 2025 Consolidated Statements of Financial Position (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (millions ARS) | December 31, 2024 (millions ARS) | Change (millions ARS) | % Change | | :----------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------- | | **Total Assets** | 14,035,721 | 11,879,362 | 2,156,359 | 18.15% | | Current Assets | 1,499,097 | 819,544 | 679,553 | 82.92% | | Non-Current Assets | 12,536,624 | 11,059,818 | 1,476,806 | 13.35% | | **Total Liabilities** | 7,941,066 | 5,870,299 | 2,070,767 | 35.28% | | Current Liabilities | 3,105,798 | 2,126,231 | 979,567 | 46.07% | | Non-Current Liabilities | 4,835,268 | 3,744,068 | 1,091,200 | 29.15% | | **Total Equity** | 6,094,655 | 6,009,063 | 85,592 | 1.42% | [Consolidated Income Statements](index=8&type=section&id=Consolidated%20Income%20Statements) Net income for 3M25 significantly decreased by **91.15%** to **$93,202 million**, primarily due to a substantial decline in financial results Consolidated Income Statements (Three-month period ended March 31, 2025 vs. 2024) | Metric | 3M25 (millions ARS) | 3M24 (millions ARS) | Change (millions ARS) | % Change | | :------------------------------------------------ | :------------------ | :------------------ | :-------------------- | :------- | | Revenues | 1,363,353 | 1,066,430 | 296,923 | 27.84% | | Operating income (loss) | 111,899 | (40,771) | 152,670 | n/a | | Financial results from borrowings | 85,634 | 1,244,078 | (1,158,444) | (93.12%) | | Other financial results, net | 15,322 | 180,130 | (164,808) | (91.49%) | | Income before income tax | 212,947 | 1,381,318 | (1,168,371) | (84.59%) | | Income tax expense | (119,745) | (328,741) | 208,996 | (63.57%) | | Net income for the period | 93,202 | 1,052,577 | (959,375) | (91.15%) | | Earnings per share (Basic and diluted) | 41.35 | 486.73 | (445.38) | (91.51%) | [Consolidated Statements of Comprehensive Income](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for 3M25 decreased by **90.39%** to **$85,592 million**, driven by lower net income and reduced other comprehensive loss Consolidated Statements of Comprehensive Income (Three-month period ended March 31, 2025 vs. 2024) | Metric | 3M25 (millions ARS) | 3M24 (millions ARS) | Change (millions ARS) | % Change | | :------------------------------------ | :------------------ | :------------------ | :-------------------- | :------- | | Net income for the period | 93,202 | 1,052,577 | (959,375) | (91.15%) | | Other comprehensive loss, net of tax | (7,610) | (161,760) | 154,150 | (95.30%) | | Total comprehensive loss for the period | 85,592 | 890,817 | (805,225) | (90.39%) | [Consolidated Statements of Changes in Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased by **1.69%** to **$6,094,655 million** as of March 31, 2025, influenced by comprehensive loss and non-controlling interests Consolidated Statements of Changes in Equity (March 31, 2025 vs. March 31, 2024) | Metric | March 31, 2025 (millions ARS) | March 31, 2024 (millions ARS) | Change (millions ARS) | % Change | | :------------------------------------ | :---------------------------- | :---------------------------- | :-------------------- | :------- | | Balances as of January 1 | 6,009,063 | 5,308,736 | 700,327 | 13.19% | | Total Comprehensive income (loss) | 85,592 | 890,817 | (805,225) | (90.39%) | | Balances as of March 31 | 6,094,655 | 6,199,553 | (104,898) | (1.69%) | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flows remained stable, while investing activities saw a **259.83%** increase in outflow due to acquisitions, and financing activities generated substantial inflow Consolidated Statements of Cash Flows (Three-month period ended March 31, 2025 vs. 2024) | Metric | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | | :------------------------------------------------ | :------------------ | :------------------ | :----------------------- | | Total cash flows from operating activities | 273,544 | 266,997 | 6,547 | | Total cash flows used in investing activities | (1,258,015) | (349,624) | (908,391) | | Total cash flows from financing activities | 1,059,501 | 43,124 | 1,016,377 | | Net increase / (decrease) in cash and cash equivalents | 75,030 | (39,503) | 114,533 | | Cash and cash equivalents at the end of the period | 412,345 | 234,836 | 177,509 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed context for the financial statements, covering accounting policies, asset/liability changes, and significant events like the TMA acquisition - The notes provide detailed context and breakdowns for the financial statements, covering accounting policies, asset/liability changes, and significant events like the TMA acquisition[32](index=32&type=chunk)[34](index=34&type=chunk) [Basis of preparation and significant accounting policies (Note 1)](index=13&type=section&id=Basis%20of%20preparation%20and%20significant%20accounting%20policies%20(Note%201)) Financial statements are prepared under IAS 34 and IAS 29 (hyperinflationary economy), with new policies adopted post-TMA acquisition and revised segment reporting - Financial statements are prepared under IAS 34 and IAS 29 (hyperinflationary economy), making them non-comparable to prior annual statements[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - New accounting policies were adopted for financial assets, investment properties, and termination benefits due to the TMA acquisition[37](index=37&type=chunk) - The company now reports two main segments: 'ICT Services provided in Argentina – Telecom Networks' and 'ICT Services provided in Argentina – TMA Networks,' with 'Other segments' for minor operations[47](index=47&type=chunk)[51](index=51&type=chunk) National Consumer Price Index (National CPI) and US$/$ Exchange Rate Variation | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :------------------------------------ | :------------- | :---------------- | :------------- | | National CPI (Dec 2016=100) | 8,353.3 | 7,694.0 | 5,357.1 | | Variation in prices (Annual) | 55.9% | 117.8% | 287.9% | | Variation in prices (Accumulated 3M) | 8.6% | n/a | 51.6% | | Banco Nación US$/$ exchange rate | 1,074 | 1,032 | 858 | | Variation in exchange rate (Annual) | 25.2% | 27.7% | 310.5% | | Variation in exchange rate (Accumulated 3M) | 4.1% | n/a | 6.1% | [Cash and cash equivalents and Investments (Note 2)](index=19&type=section&id=Cash%20and%20cash%20equivalents%20and%20Investments%20(Note%202)) Cash and cash equivalents increased by **19.31%** to **$412,345 million**, while total investments rose by **178.77%** to **$142,832 million** as of March 31, 2025 Cash and Cash Equivalents (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (millions ARS) | December 31, 2024 (millions ARS) | Change (millions ARS) | % Change | | :--------------- | :---------------------------- | :---------------------------- | :-------------------- | :------- | | Cash and Banks | 63,390 | 132,186 | (68,796) | (52.05%) | | Time deposits | 123,715 | 113,969 | 9,746 | 8.55% | | Mutual funds | 225,240 | 99,441 | 125,799 | 126.51% | | **Total** | **412,345** | **345,596** | **66,749** | **19.31%** | Investments (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (millions ARS) | December 31, 2024 (millions ARS) | Change (millions ARS) | % Change | | :------------------------------------ | :---------------------------- | :---------------------------- | :-------------------- | :------- | | Current Investments | 106,483 | 36,462 | 70,021 | 192.06% | | Non-Current Investments | 36,349 | 14,775 | 21,574 | 146.02% | | **Total Investments** | **142,832** | **51,237** | **91,595** | **178.77%** | [Goodwill (Note 3)](index=20&type=section&id=Goodwill%20(Note%203)) Goodwill saw a slight increase of **0.50%** to **$3,662,411 million** as of March 31, 2025, primarily due to currency translation adjustments Goodwill Movements (March 31, 2025 vs. 2024) | Metric | March 31, 2025 (millions ARS) | March 31, 2024 (millions ARS) | Change (millions ARS) | % Change | | :-------------------------- | :---------------------------- | :---------------------------- | :-------------------- | :------- | | At the beginning of the year | 3,661,699 | 3,650,303 | 11,396 | 0.31% | | Currency translation adjustments | 712 | (6,008) | 6,720 | n/a | | At the end of the period | 3,662,411 | 3,644,295 | 18,116 | 0.50% | [PP&E (Note 4)](index=20&type=section&id=PP%26E%20(Note%204)) Properties, Plant, and Equipment (PP&E) increased by **5.31%** to **$5,454,136 million**, significantly driven by the TMA acquisition and capital expenditures PP&E Movements (March 31, 2025 vs. 2024) | Metric | March 31, 2025 (millions ARS) | March 31, 2024 (millions ARS) | Change (millions ARS) | % Change | | :------------------------------------ | :---------------------------- | :---------------------------- | :-------------------- | :------- | | At the beginning of the year | 4,751,539 | 5,429,029 | (677,490) | (12.48%) | | CAPEX | 156,651 | 153,109 | 3,542 | 2.31% | | Acquisitions through TMA business combination | 827,331 | - | 827,331 | n/a | | Depreciation of the period | (259,832) | (277,463) | 17,631 | (6.35%) | | At the end of the period | 5,454,136 | 5,179,373 | 274,763 | 5.31% | [Intangible assets (Note 5)](index=20&type=section&id=Intangible%20assets%20(Note%205)) Intangible assets increased by **11.61%** to **$2,448,672 million**, primarily due to the TMA acquisition and capital expenditures Intangible Assets Movements (March 31, 2025 vs. 2024) | Metric | March 31, 2025 (millions ARS) | March 31, 2024 (millions ARS) | Change (millions ARS) | % Change | | :------------------------------------ | :---------------------------- | :---------------------------- | :-------------------- | :------- | | At the beginning of the year | 2,139,084 | 2,223,198 | (84,114) | (3.78%) | | CAPEX | 20,070 | 10,100 | 9,970 | 98.71% | | Acquisitions through TMA business combination | 323,310 | - | 323,310 | n/a | | Amortization of the period | (32,909) | (32,547) | (362) | 1.11% | | At the end of the period | 2,448,672 | 2,193,982 | 254,690 | 11.61% | [Right of use assets (Note 6)](index=21&type=section&id=Right%20of%20use%20assets%20(Note%206)) Right of use assets increased by **29.11%** to **$655,559 million**, mainly due to the TMA business combination and new additions Right of Use Assets Movements (March 31, 2025 vs. 2024) | Metric | March 31, 2025 (millions ARS) | March 31, 2024 (millions ARS) | Change (millions ARS) | % Change | | :------------------------------------ | :---------------------------- | :---------------------------- | :-------------------- | :------- | | At the beginning of the year | 533,421 | 509,947 | 23,474 | 4.60% | | Increase | 43,688 | 63,626 | (19,938) | (31.34%) | | Acquisitions through TMA business combination | 126,888 | - | 126,888 | n/a | | Amortization of the period | (46,541) | (53,618) | 7,077 | (13.20%) | | At the end of the period | 655,559 | 507,760 | 147,799 | 29.11% | [Borrowings (Note 7)](index=21&type=section&id=Borrowings%20(Note%207)) Total borrowings increased by **31.88%** to **$4,120,718 million**, driven by new loans to finance the TMA acquisition, with the company remaining covenant compliant Borrowings (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (millions ARS) | December 31, 2024 (millions ARS) | Change (millions ARS) | % Change | | :-------------------------------- | :---------------------------- | :---------------------------- | :-------------------- | :------- | | Current Borrowings | 1,198,136 | 1,164,665 | 33,471 | 2.87% | | Non-Current Borrowings | 2,922,582 | 1,959,958 | 962,624 | 49.12% | | **Total Borrowings** | **4,120,718** | **3,124,623** | **996,095** | **31.88%** | - The acquisition of TMA was financed by two loans totaling **US$1,170 million** (net **US$1,142 million**), with maturities in 2029 and 2028-2030, and variable annual interest rates (SOF 3 months plus spread)[78](index=78&type=chunk) - The Company complies with its financial covenants, including Net Debt/EBITDA and EBITDA/Interest Net ratios, as of March 31, 2025[80](index=80&type=chunk) [Income tax and Deferred income tax assets/liabilities (Note 8)](index=22&type=section&id=Income%20tax%20and%20Deferred%20income%20tax%20assets%2Fliabilities%20(Note%208)) Income tax liabilities surged by **3809.29%** to **$193,549 million** as of March 31, 2025, while income tax expense decreased significantly in 3M25 Income Tax Liabilities (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (millions ARS) | December 31, 2024 (millions ARS) | Change (millions ARS) | % Change | | :---------------------- | :---------------------------- | :---------------------------- | :-------------------- | :------- | | Provision for income tax | 243,869 | 15,908 | 227,961 | 1432.99% | | Income tax withholdings | (50,320) | (10,957) | (39,363) | 359.24% | | **Total** | **193,549** | **4,951** | **188,598** | **3809.29%** | Income Tax Expense (Three-month period ended March 31, 2025 vs. 2024) | Metric | 3M25 (millions ARS) | 3M24 (millions ARS) | Change (millions ARS) | % Change | | :-------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Income tax expense | (119,745) | (328,741) | 208,996 | (63.57%) | | Current tax | (238,918) | (2,710) | (236,208) | 8716.16% | | Deferred tax | 119,173 | (326,031) | 445,204 | (136.55%) | [Provisions and allowances (Note 9)](index=23&type=section&id=Provisions%20and%20allowances%20(Note%209)) Total provisions increased significantly by **376.70%** to **$293,683 million**, primarily due to additions from the TMA business combination for legal claims Total Provisions (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (millions ARS) | December 31, 2024 (millions ARS) | Change (millions ARS) | % Change | | :-------------------- | :---------------------------- | :---------------------------- | :-------------------- | :------- | | Total provisions | 293,683 | 61,596 | 232,087 | 376.70% | - Additions to provisions were significantly impacted by the TMA acquisition, contributing **$225,395 million**, primarily for legal claims and asset retirement obligations[86](index=86&type=chunk) - TMA is subject to various lawsuits and claims in labor (e.g., joint and several liabilities, occupational accidents), tax (e.g., municipal fees, national/provincial taxes), and civil/regulatory matters (e.g., damages, regulatory claims, fines)[90](index=90&type=chunk)[96](index=96&type=chunk) [Additional information of financial assets and liabilities (Note 10)](index=24&type=section&id=Additional%20information%20of%20financial%20assets%20and%20liabilities%20(Note%2010)) Net financial liabilities in foreign currencies increased by **54.41%** to **$(3,809,623) million**, with financial instruments classified by fair value hierarchy Financial Assets and Liabilities in Foreign Currencies (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (millions ARS) | December 31, 2024 (millions ARS) | Change (millions ARS) | % Change | | :-------------- | :---------------------------- | :---------------------------- | :-------------------- | :------- | | Assets | 228,297 | 385,933 | (157,636) | (40.84%) | | Liabilities | (4,037,920) | (2,853,144) | (1,184,776) | 41.52% | | **Net Liabilities** | **(3,809,623)** | **(2,467,211)** | **(1,342,412)** | **54.41%** | - Financial instruments are classified into a fair value hierarchy: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable inputs)[99](index=99&type=chunk)[100](index=100&type=chunk) - The fair value of Notes traded in active markets is Level 1, Notes not traded in active markets are Level 2, and other borrowings are Level 3 (based on discounted cash flows)[109](index=109&type=chunk) [Purchase commitments (Note 11)](index=26&type=section&id=Purchase%20commitments%20(Note%2011)) Total purchase commitments increased by **9.80%** to **$1,182,058 million**, including significant obligations for fixed and intangible assets with 'take or pay' clauses Purchase Commitments (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (millions ARS) | December 31, 2024 (millions ARS) | Change (millions ARS) | % Change | | :------------------------------------ | :---------------------------- | :---------------------------- | :-------------------- | :------- | | Total Purchase Commitments | 1,182,058 | 1,076,541 | 105,517 | 9.80% | | Fixed and intangible assets commitments | 200,727 | 205,906 | (5,179) | (2.51%) | - Purchase commitments include 'take or pay' clauses, obligating the company to purchase or pay for a specified quantity of products or services[108](index=108&type=chunk) [Revenues (Note 12)](index=27&type=section&id=Revenues%20(Note%2012)) Total revenues increased by **27.8%** to **$1,363,353 million** in 3M25, driven by strong growth in Mobile Services, Internet Services, and Equipment revenues Revenues by Service Type (Three-month period ended March 31, 2025 vs. 2024) | Service Type | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | % Change | | :---------------------- | :------------------ | :------------------ | :----------------------- | :------- | | Mobile Services | 620,179 | 433,997 | 186,182 | 42.9% | | Internet Services | 322,420 | 262,797 | 59,623 | 22.7% | | Cable Television Services | 172,674 | 158,150 | 14,524 | 9.2% | | Fixed and Data Services | 154,859 | 149,301 | 5,558 | 3.7% | | Other services revenues | 15,350 | 12,219 | 3,131 | 25.6% | | Subtotal services revenues | 1,285,482 | 1,016,464 | 269,018 | 26.5% | | Equipment revenues | 77,871 | 49,966 | 27,905 | 55.8% | | **Total Revenues** | **1,363,353** | **1,066,430** | **296,923** | **27.8%** | [Operating expenses (Note 13)](index=27&type=section&id=Operating%20expenses%20(Note%2013)) Total operating expenses increased by **13.0%** to **$1,251,454 million** in 3M25, with notable increases in employee benefits, taxes, and equipment costs Operating Expenses by Function (Three-month period ended March 31, 2025 vs. 2024) | Concept | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | % Change | | :------------------------------------------------ | :------------------ | :------------------ | :----------------------- | :------- | | Employee benefit expenses and severance payments | (286,847) | (246,095) | (40,752) | 16.6% | | Interconnection costs and transmission costs | (44,275) | (39,120) | (5,155) | 13.2% | | Fees for services, maintenance, materials and supplies | (172,012) | (155,988) | (16,024) | 10.3% | | Taxes and fees with the Regulatory Authority | (113,911) | (82,175) | (31,736) | 38.6% | | Commissions and advertising | (71,288) | (55,366) | (15,922) | 28.8% | | Cost of equipment and handsets | (57,005) | (37,200) | (19,805) | 53.2% | | Programming and content costs | (71,825) | (58,405) | (13,420) | 23.0% | | Bad debt expenses | (25,650) | (26,539) | 889 | (3.3%) | | Other operating expenses, net | (68,592) | (42,558) | (26,034) | 61.2% | | Depreciation, amortization and impairment of Fixed and intangible assets | (340,049) | (363,755) | 23,706 | (6.5%) | | **Total** | **(1,251,454)** | **(1,107,201)** | **(144,253)** | **13.0%** | [Financial results (Note 14)](index=28&type=section&id=Financial%20results%20(Note%2014)) Total financial results, net, significantly decreased by **92.9%** to a gain of **$100,956 million** in 3M25, primarily due to reduced foreign currency exchange gains Financial Results, Net (Three-month period ended March 31, 2025 vs. 2024) | Metric | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | % Change | | :------------------------------------------------ | :------------------ | :------------------ | :----------------------- | :------- | | Total financial results from borrowings | 85,634 | 1,244,078 | (1,158,444) | (93.1%) | | Total other financial results, net | 15,322 | 180,130 | (164,808) | (91.5%) | | **Total financial results, net** | **100,956** | **1,424,208** | **(1,323,252)** | **(92.9%)** | - The significant decrease in financial gain was mainly due to less negative devaluation measured in real terms (**4.1%** in 3M25 vs. **30.0%** in 3M24)[190](index=190&type=chunk) [Balances and transactions with Related parties (Note 15)](index=28&type=section&id=Balances%20and%20transactions%20with%20Related%20parties%20(Note%2015)) This note details trade receivables, payables, and service transactions with associates, joint ventures, and other related parties, all conducted on an arm's length basis Balances with Related Parties (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (millions ARS) | December 31, 2024 (millions ARS) | | :-------------------------------- | :---------------------------- | :---------------------------- | | Current Assets - Trade receivables (Associates/JV) | 49 | 50 | | Current Liabilities - Trade payables (Associates/JV) | 371 | 742 | | Current Liabilities - Other liabilities (Associates/JV) | 3,203 | 3,269 | | Non-Current Liabilities - Other liabilities (Associates/JV) | 2,931 | 2,992 | | Current Assets - Trade receivables (Other Related Parties) | 2,863 | 2,036 | | Current Liabilities - Trade payables (Other Related Parties) | 13,761 | 13,184 | Transactions with Related Parties (Three-month period ended March 31, 2025 vs. 2024) | Transaction Type | 3M25 (millions ARS) | 3M24 (millions ARS) | | :------------------------------------ | :------------------ | :------------------ | | Services revenues (Associates/JV) | 159 | 63 | | Operating costs (Associates/JV) | (495) | (282) | | Services and advertising revenues (Other Related Parties) | 2,115 | 1,665 | | Operating costs (Other Related Parties) | (17,295) | (13,002) | [Recent developments corresponding to the three-month period ended March 31, 2025 (Note 16)](index=29&type=section&id=Recent%20developments%20corresponding%20to%20the%20three-month%20period%20ended%20March%2031%2C%202025%20(Note%2016)) Telecom Argentina acquired **99.999625%** of TMA for **US$1,245 million** on February 24, 2025, financed by new loans, with regulatory approvals pending - Telecom Argentina acquired **99.999625%** of TMA on February 24, 2025, for **US$1,245 million**, financed by two loans, to enhance service quality and network coverage[119](index=119&type=chunk)[121](index=121&type=chunk) Assets and Liabilities Recognized from TMA Acquisition (March 31, 2025) | Category | March 31, 2025 (millions ARS) | | :------------------------------------ | :---------------------------- | | Cash and cash equivalents | 155,260 | | PP&E | 827,331 | | Intangible assets | 323,310 | | Deferred income tax assets | 325,698 | | Right of use assets | 142,124 | | Provisions | (225,395) | | **Net identifiable assets acquired** | **1,231,504** | - A preliminary PPA was conducted, with no goodwill recognized yet, as valuation requires additional time and information[123](index=123&type=chunk) - Regulatory approvals from CNDC and ENACOM are pending, and a provisional measure restricts the integration or consolidation of TMA's business with Telecom's, including personnel and sensitive information exchange[125](index=125&type=chunk)[127](index=127&type=chunk) [Subsequent events to March 31, 2025 (Note 17)](index=31&type=section&id=Subsequent%20events%20to%20March%2031%2C%202025%20(Note%2017)) Shareholders approved allocating retained earnings to Legal and Voluntary Reserves, with the Board authorized to distribute up to **US$300 million** in dividends - Shareholders approved allocating **$54,958 million** to Legal Reserve and **$1,044,198 million** to Voluntary Reserve for capital expenditures and solvency from retained earnings[129](index=129&type=chunk) - The Board of Directors can reverse the Voluntary Reserve to distribute up to **US$300 million** in dividends (cash, non-cash, or combination) before December 31, 2025[129](index=129&type=chunk) [Operating and Financial Review and Prospects](index=32&type=section&id=Operating%20and%20Financial%20Review%20and%20Prospects) This review analyzes Q1 2025 performance, highlighting the impact of hyperinflation and the TMA acquisition on financial comparability and future prospects - The review analyzes Q1 2025 performance, emphasizing the impact of hyperinflation and the TMA acquisition, which makes comparisons with Q1 2024 non-comparable[130](index=130&type=chunk)[132](index=132&type=chunk) [General Considerations](index=32&type=section&id=General%20Considerations) Financial review is presented in current currency due to Argentina's hyperinflation, and the TMA acquisition significantly impacts comparability of 3M25 results - Financial information is restated to current currency as of March 31, 2025, due to Argentina's hyperinflationary economy (IAS 29)[130](index=130&type=chunk) - The acquisition of TMA on February 24, 2025, makes 3M25 results non-comparable to 3M24 due to consolidation from the acquisition date[132](index=132&type=chunk) [Telecom's Activities (3M25 and 3M24)](index=33&type=section&id=Telecom%27s%20Activities%20(3M25%20and%203M24)) Telecom's 3M25 performance saw **27.8%** revenue growth but a **91.1%** net income decrease, while Adjusted EBITDA grew by **39.9%** due to TMA consolidation Key Financial Performance (Three-month period ended March 31, 2025 vs. 2024) | Metric | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | % Change | | :------------------------------------------------ | :------------------ | :------------------ | :----------------------- | :------- | | Revenues | 1,363,353 | 1,066,430 | 296,923 | 27.8% | | Operating income / (loss) | 111,899 | (40,771) | 152,670 | n/a | | Net income for the period | 93,202 | 1,052,577 | (959,375) | (91.1%) | | Adjusted EBITDA | 451,948 | 322,984 | 128,964 | 39.9% | - Net income decreased significantly by **91.1%** in 3M25 compared to 3M24, primarily due to a **$1,323,252 million** decrease in net financial results, partially offset by increased operating income and lower income tax expense[134](index=134&type=chunk) - Adjusted EBITDA increased by **39.9%** to **$451,948 million** in 3M25, representing **33.1%** of revenues, driven by a **$296,923 million** increase in revenues, partially offset by higher operating costs[135](index=135&type=chunk) [Revenues](index=34&type=section&id=Revenues_Activities) Total revenues increased by **27.8%** to **$1,363,353 million** in 3M25, driven by TMA consolidation and strong growth in Mobile, Internet, and Equipment services Revenue Breakdown and Growth (3M25 vs. 3M24) | Service Type | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | % Change | | :---------------------- | :------------------ | :------------------ | :----------------------- | :------- | | Mobile Services | 620,179 | 433,997 | 186,182 | 42.9% | | Internet Services | 322,420 | 262,797 | 59,623 | 22.7% | | Cable Television Services | 172,674 | 158,150 | 14,524 | 9.2% | | Fixed and Data Services | 154,859 | 149,301 | 5,558 | 3.7% | | Other services revenues | 15,350 | 12,219 | 3,131 | 25.6% | | Subtotal services revenues | 1,285,482 | 1,016,464 | 269,018 | 26.5% | | Equipment revenues | 77,871 | 49,966 | 27,905 | 55.8% | | **Total Revenues** | **1,363,353** | **1,066,430** | **296,923** | **27.8%** | - TMA consolidation contributed **$231,343 million** to total revenues in 3M25[136](index=136&type=chunk) - Mobile ARPU in Argentina increased by **13.2%** to **$6,837.1**, and the customer base grew by **0.9%** to **21.4 million**[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) - Internet ARPU in Argentina increased to **$22,538.2**, but the customer base decreased by **1.1%** to **4.0 million**[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk) - Other services revenues increased by **25.6%**, mainly due to fintech services like 'Personal Pay,' which saw a **55%** increase in users to **3.9 million**[161](index=161&type=chunk) [Operating Costs (without depreciation, amortization and impairment of Fixed and intangible assets)](index=38&type=section&id=Operating%20Costs%20(without%20depreciation%2C%20amortization%20and%20impairment%20of%20Fixed%20and%20intangible%20assets)) Total operating costs (excluding D&A) increased by **22.6%** to **$911,405 million** in 3M25, significantly impacted by TMA consolidation and higher taxes Operating Costs (excluding D&A) Breakdown and Growth (3M25 vs. 3M24) | Cost Category | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | % Change | | :------------------------------------------------ | :------------------ | :------------------ | :----------------------- | :------- | | Employee benefit expenses and severance payments | (286,847) | (246,095) | (40,752) | 16.6% | | Interconnection and transmission costs | (44,275) | (39,120) | (5,155) | 13.2% | | Fees for services, maintenance, materials and supplies | (172,012) | (155,988) | (16,024) | 10.3% | | Taxes and fees with the Regulatory Authority | (113,911) | (82,175) | (31,736) | 38.6% | | Commissions and advertising | (71,288) | (55,366) | (15,922) | 28.8% | | Cost of equipment and handsets | (57,005) | (37,200) | (19,805) | 53.2% | | Programming and content costs | (71,825) | (58,405) | (13,420) | 23.0% | | Bad debt expenses | (25,650) | (26,539) | 889 | (3.3%) | | Other operating expenses, net | (68,592) | (42,558) | (26,034) | 61.2% | | **Total operating costs** | **(911,405)** | **(743,446)** | **(167,959)** | **22.6%** | - TMA consolidation contributed **$162,927 million** to operating costs[165](index=165&type=chunk) - Employee benefit expenses increased by **16.6%**, with TMA contributing **$43,492 million**, despite a **6.1%** reduction in the Company's headcount[166](index=166&type=chunk) - Bad debt expenses decreased by **3.3%** due to ongoing credit recovery actions[180](index=180&type=chunk) [Operating Income (Loss)](index=40&type=section&id=Operating%20Income%20(Loss)) The company transitioned from an operating loss of **$40,771 million** in 3M24 to an operating income of **$111,899 million** in 3M25, with TMA contributing **$24,904 million** Operating Income (Loss) (3M25 vs. 3M24) | Metric | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | | :--------------- | :------------------ | :------------------ | :----------------------- | | Operating income (loss) | 111,899 | (40,771) | 152,670 | - TMA consolidation contributed **$24,904 million** to the operating income in 3M25[188](index=188&type=chunk) [Financial Results, Net](index=41&type=section&id=Financial%20Results%2C%20Net) Total financial results, net, decreased significantly by **92.9%** to a gain of **$100,956 million** in 3M25, primarily due to reduced foreign currency exchange gains Financial Results, Net (3M25 vs. 3M24) | Metric | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | % Change | | :-------------------------------- | :------------------ | :------------------ | :----------------------- | :------- | | Total financial results from borrowings | 85,634 | 1,244,078 | (1,158,444) | (93.1%) | | Total other financial results, net | 15,322 | 180,130 | (164,808) | (91.5%) | | **Total financial results, net** | **100,956** | **1,424,208** | **(1,323,252)** | **(92.9%)** | - The lower gain was mainly due to less negative devaluation in real terms (**4.1%** in 3M25 vs. **30.0%** in 3M24)[190](index=190&type=chunk) - TMA consolidation resulted in a **$(14,150) million** impact on financial results[189](index=189&type=chunk) [Income Tax Benefit (Expense)](index=41&type=section&id=Income%20Tax%20Benefit%20(Expense)) Income tax expense decreased significantly to **$119,745 million** in 3M25, including a current tax expense and a deferred tax gain, with TMA contributing **$35,158 million** Income Tax Benefit (Expense) (3M25 vs. 3M24) | Metric | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | % Change | | :-------------------- | :------------------ | :------------------ | :----------------------- | :------- | | Income tax expense | (119,745) | (328,741) | 208,996 | (63.6%) | | Current tax expenses | (238,918) | (2,710) | (236,208) | 8716.16% | | Deferred tax gain | 119,173 | (326,031) | 445,204 | (136.55%) | - TMA consolidation contributed **$35,158 million** to the income tax benefit (expense)[193](index=193&type=chunk) [Net Income](index=41&type=section&id=Net%20Income_Activities) Net income decreased by **91.1%** to **$93,202 million** in 3M25, mainly due to a substantial decrease in net financial results, despite improved operating income Net Income (3M25 vs. 3M24) | Metric | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | | :--------------- | :------------------ | :------------------ | :----------------------- | | Net income | 93,202 | 1,052,577 | (959,375) | - The decrease was mainly due to a **$1,323,252 million** decrease in net financial results, partially offset by increased operating income and lower income tax expense[194](index=194&type=chunk) - TMA consolidation resulted in a **$24,404 million** loss[196](index=196&type=chunk) [Adjusted EBITDA](index=42&type=section&id=Adjusted%20EBITDA_Activities) Consolidated Adjusted EBITDA increased by **39.9%** to **$451,948 million** in 3M25, representing **33.1%** of revenues, with TMA contributing **$68,416 million** Adjusted EBITDA (3M25 vs. 3M24) | Metric | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | | :--------------- | :------------------ | :------------------ | :----------------------- | | Adjusted EBITDA | 451,948 | 322,984 | 128,964 | - Adjusted EBITDA represented **33.1%** of total consolidated revenues in 3M25, up from **30.3%** in 3M24[198](index=198&type=chunk) - TMA consolidation contributed **$68,416 million** to Adjusted EBITDA[199](index=199&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) Telecom's liquidity relies on operating cash flows and third-party financing, primarily used for CAPEX, operating expenses, and debt payments, with new loans secured for TMA acquisition - Telecom's liquidity depends on operating cash flows and third-party financing, used for CAPEX, operating expenses, dividends, and debt payments[200](index=200&type=chunk) [Sources and Uses of Funds](index=42&type=section&id=Sources%20and%20Uses%20of%20Funds) Liquidity is sourced from operating cash flows and third-party financing, primarily used for capital expenditures, operating expenses, dividends, and debt repayment - Main liquidity sources are operating cash flows and third-party financing (domestic/international capital markets, financial institutions)[200](index=200&type=chunk) - Principal uses of cash are capital expenditures, operating expenses, dividend payments, debt repayment, and general corporate purposes[200](index=200&type=chunk) - Telecom plans to refinance outstanding debt to extend terms and achieve lower financing costs[200](index=200&type=chunk) [Borrowings Developments during 3M25](index=43&type=section&id=Borrowings%20Developments%20during%203M25) The TMA acquisition was financed by two new loans totaling **US$1,170 million**, a syndicated loan and a bilateral loan, both with variable interest rates - TMA acquisition financed by two loans totaling **US$1,170 million** (net **US$1,142 million**)[201](index=201&type=chunk) New Loans for TMA Acquisition | Entity | Currency | Principal Residual Nominal Value (millions) | Maturity Date | Amortization | Interest Rate | Spread | Interest Payment | | :------------- | :------- | :---------------------------------------- | :------------ | :----------- | :------------ | :----- | :--------------- | | Syndicated loan | US$ | 970 | 02/2029 | In one installment at maturity date | Variable annual rate: SOF 3 months | 4.00%-7.00% | Quarterly basis | | Bilateral loan | US$ | 200 | 02/2028 and 02/2030 | Semiannually from 02/2028 | Variable annual rate: SOF 3 months | 4.00% | Quarterly basis | [Cash Flow](index=43&type=section&id=Cash%20Flow) Cash and cash equivalents increased to **$412,345 million**, with significant outflows from investing activities (TMA acquisition) and substantial inflows from financing activities Consolidated Cash Flows (3M25 vs. 3M24) | Metric | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | | :------------------------------------------------ | :------------------ | :------------------ | :----------------------- | | Cash flows from operating activities | 273,544 | 266,997 | 6,547 | | Cash flows used in investing activities | (1,258,015) | (349,624) | (908,391) | | Cash flows from financing activities | 1,059,501 | 43,124 | 1,016,377 | | Net increase (decrease) in cash and cash equivalents | 66,749 | (142,908) | 209,657 | | Cash and cash equivalents at the end of the period | 412,345 | 234,836 | 177,509 | - Investing activities included **$1,076,244 million** for the TMA acquisition and **$189,733 million** for PP&E and intangible assets[209](index=209&type=chunk) - Financing activities included **$1,420,063 million** from borrowings, partially offset by **$360,562 million** in payments for borrowings, interest, DFI, and leases[211](index=211&type=chunk) [Working Capital](index=44&type=section&id=Working%20Capital) Telecom maintains a negative working capital of **$(1,606,701) million**, typical for a capital-intensive company, with TMA consolidation contributing to this position Working Capital Breakdown (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (millions ARS) | December 31, 2024 (millions ARS) | Variation (millions ARS) | | :------------------------------------ | :---------------------------- | :---------------------------- | :----------------------- | | Operating working capital - negative | (929,865) | (525,996) | (403,869) | | Net Current financial liability | (679,290) | (782,607) | 103,317 | | Negative working capital (current assets—current liabilities) | (1,606,701) | (1,306,687) | 300,014 | | Liquidity rate (current assets/ current liabilities) | 0.48 | 0.39 | 0.09 | - Negative working capital is typical for a capital-intensive company that obtains spontaneous financing from suppliers for longer terms[216](index=216&type=chunk) - TMA consolidation contributed **$121,570 million** to the negative working capital[217](index=217&type=chunk) [Compliance with Covenants](index=47&type=section&id=Compliance%20with%20Covenants) As of March 31, 2025, Telecom Argentina is in compliance with all financial covenants, including EBITDA/Interest Net and Net Debt/EBITDA ratios - The Company complies with all financial covenants, including EBITDA/Interest Net and Net Debt/EBITDA ratios, as of March 31, 2025[224](index=224&type=chunk) [Capital Expenditures](index=47&type=section&id=Capital%20Expenditures) Total CAPEX and Right of use asset additions decreased by **2.8%** to **$220,409 million**, with significant investments in network expansion and digital services, and TMA contributing **$21,759 million** CAPEX and Rights of Use Assets Additions (3M25 vs. 3M24) | Metric | 3M25 (millions ARS) | 3M24 (millions ARS) | Variation (millions ARS) | % Change | | :------------------------------------ | :------------------ | :------------------ | :----------------------- | :------- | | PP&E CAPEX | 156,651 | 153,109 | 3,542 | 2.3% | | Intangibles assets CAPEX | 20,070 | 10,100 | 9,970 | 98.7% | | Total CAPEX | 176,721 | 163,209 | 13,512 | 8.3% | | Rights of use assets additions | 43,688 | 63,626 | (19,938) | (31.3%) | | **Total CAPEX and Right of use asset additions** | **220,409** | **226,835** | **(6,426)** | **(2.8%)** | - Main CAPEX projects focus on expanding cable television and Internet services, deploying 4G/5G networks, and improving mobile site connectivity[226](index=226&type=chunk)[227](index=227&type=chunk) - TMA consolidation contributed **$21,759 million** to total CAPEX and Right of use asset additions[228](index=228&type=chunk) [Trend Information](index=47&type=section&id=Trend%20Information) Telecom focuses on strengthening its digital role amid macroeconomic stabilization, with the TMA acquisition reinforcing commitment to national technological development and sustainability - Telecom is strengthening its role in customers' digital lives amid macroeconomic stabilization and decelerating inflation[229](index=229&type=chunk) - The acquisition of TMA (**US$1,245 million**) is the largest private infrastructure investment in Argentina, reinforcing commitment to national technological development[231](index=231&type=chunk) - The company continues to invest in digital services, growing Flow and Personal Pay platforms, and leading regional initiatives like GSMA's Open Gateway[233](index=233&type=chunk)[234](index=234&type=chunk) - Sustainability is a strategic pillar, focusing on energy efficiency, circular economy practices, and digital talent development[235](index=235&type=chunk) [Corporate Information](index=49&type=section&id=Corporate%20Information) This section provides market quotation data for BYMA shares and NYSE ADRs, along with contact information for Investor Relations and the ADS Depositary - Provides market quotation data for BYMA shares and NYSE ADRs for the past five quarters[238](index=238&type=chunk)[239](index=239&type=chunk) - Includes contact information for Investor Relations and the Deposit and Transfer Agent for ADSs[240](index=240&type=chunk)[241](index=241&type=chunk) [BYMA Market Quotation](index=49&type=section&id=BYMA%20Market%20Quotation) This section presents the high, low, and volume of shares traded for Telecom Argentina on BYMA for each quarter from 1Q24 to 1Q25 BYMA Market Quotation ($/share) and Volume (millions) | Quarter | High ($) | Low ($) | Volume of shares traded (in millions) | | :------ | :------- | :------ | :------------------------------------ | | 1Q24 | 2,073.15 | 1,333.80 | 8.5 | | 2Q24 | 2,191.65 | 1,489.10 | 10.9 | | 3Q24 | 2,090.00 | 1,560.00 | 12.3 | | 4Q24 | 3,175.00 | 1,850.00 | 18.7 | | 1Q25 | 3,400.00 | 2,515.00 | 17.0 | [NYSE Market Quotation](index=49&type=section&id=NYSE%20Market%20Quotation) This section presents the high, low, and volume of ADRs traded for Telecom Argentina on NYSE for each quarter from 1Q24 to 1Q25 NYSE Market Quotation (US$/ADR) and Volume (millions) | Quarter | High (US$/ADR) | Low (US$/ADR) | Volume of ADRs traded (in millions) | | :------ | :------------- | :------------ | :---------------------------------- | | 1Q24 | 7.97 | 6.53 | 8.7 | | 2Q24 | 9.65 | 6.89 | 15.9 | | 3Q24 | 8.56 | 5.86 | 11.3 | | 4Q24 | 13.81 | 7.49 | 14.7 | | 1Q25 | 14.18 | 10.19 | 12.7 | - Each ADR represents five Class B Shares[239](index=239&type=chunk) [Investor Relations](index=49&type=section&id=Investor%20Relations) This section provides contact information for Telecom Argentina's Investor Relations Division in Argentina and JPMorgan Chase Bank N.A. for international inquiries - Contact information for Investor Relations in Argentina (Telecom Argentina S.A.) and outside Argentina (JPMorgan Chase Bank N.A.) is provided[240](index=240&type=chunk) [Deposit and Transfer Agent for ADSs](index=49&type=section&id=Deposit%20and%20Transfer%20Agent%20for%20ADSs) This section lists JPMorgan Chase Bank N.A. as the Deposit and Transfer Agent for ADSs, including its address and contact details - JPMorgan Chase Bank N.A. serves as the Deposit and Transfer Agent for ADSs[241](index=241&type=chunk) [Signatures](index=50&type=section&id=Signatures) This section confirms the report was signed by Luis Fernando Rial Ubago, Responsible for Market Relations, on May 13, 2025 - The report was signed by Luis Fernando Rial Ubago, Responsible for Market Relations, on May 13, 2025[243](index=243&type=chunk)

Acquisition of TMA - The acquisition of TMA aims to create the most competitive telecom company in Argentina with premium infrastructure[19] - The acquisition is expected to increase EBITDA generation while maintaining stable leverage[19] - The transaction rationale includes greater synergies and efficiencies to increase profitability[19] - The acquisition is considered a market repair transaction, addressing limited profitability and investment capacity of a player[19] Financial Performance - Telecom Argentina reported 1.3 billion US dollars in 1Q25 revenues[12] - Adjusted EBITDA for 1Q25 reached 165 million US dollars, an increase of 8% compared to 1Q24[12] - 1Q25 CAPEX amounted to 165 million US dollars, focused on mobile and FTTH network deployment[12] - The company's EBITDA margin was 33.1% in 1Q25, compared to 30.3% in 1Q24[12] - Net debt to estimated proforma EBITDA was 1.9x LTM1Q25[12] Operational Highlights - The company has 4.1 million broadband subscribers, maintaining its market leader position[12] - Mobile subscribers reached 21.3 million, including 2.6 million from Paraguay and Uruguay, also holding a market leader position[12] - Pay TV subscribers totaled 3.1 million, with 111,000 in Paraguay and Uruguay[12] - Personal Pay has onboarded approximately 3.9 million clients, ranking as the 2 Fintech in Argentina based on total remunerated account balances[12]

Company Overview - Tele2 (TLTZY) shares increased by 7.8% to close at $6.95, with notable trading volume exceeding typical levels [1] - The stock has gained 9.9% over the past four weeks [1] Strategic Moves - Industry rumors suggest that Tele2 is considering selling its wireless towers in the Baltics, specifically in Estonia, Latvia, and Lithuania [2] - The proposed sale is expected to generate approximately $542 million, which could strengthen Tele2's core business operations [2] Financial Performance Expectations - Tele2 is projected to report quarterly earnings of $0.07 per share, reflecting a year-over-year increase of 16.7% [3] - Expected revenues for the upcoming quarter are $721.73 million, representing a 4.9% increase from the same quarter last year [3] - The consensus EPS estimate for Tele2 has remained unchanged over the last 30 days, indicating a lack of earnings estimate revisions [4] Market Position - Tele2 holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [4] - In comparison, Telecom Argentina (TEO), another company in the same industry, experienced a 1.6% decline in its stock price, closing at $10.42, and has returned -9.3% over the past month [4]

Economic Environment - The Argentine Peso depreciated at a monthly rate of approximately 2% in 2024, with an exchange rate of P$1,032 per US$1.00 as of December 31, 2024, reflecting a 27.7% appreciation of the U.S. dollar from P$808.45 on December 31, 2023 [118]. - The Argentine economy remains volatile, with risks including inflation, currency devaluation, and regulatory changes that could adversely affect the company's financial condition and operations [116]. - Inflation in Argentina reached 211.4% in 2023 and 117.8% in 2024, with a monthly inflation rate of over 25% in December 2023 [147]. - Argentina's economy contracted in 2023 and 2024, with significant volatility characterized by high inflation and depreciation of the Argentine Peso [152]. - The ongoing economic crisis may lead to lower consumer confidence and disposable income, adversely impacting the demand for the company's services [179]. - The potential impact of global economic conditions, including U.S. interest rate changes, remains uncertain for the Argentine economy and the company's operations [158]. Government Policies and Regulations - The Milei administration introduced policies to stabilize the economy, including the issuance of U.S. dollar-denominated securities (BOPREAL) to help importers with overdue debts, with maximum amounts issued reaching US$5,000 million, US$2,000 million, and US$3,000 million in different series [125]. - The Milei administration's economic reforms include a public emergency declaration until December 31, 2025, affecting various sectors and allowing legislative powers to be delegated to the executive [135]. - The Ley de Bases, approved on June 28, 2024, establishes a framework for state reform, privatization of public companies, and incentives for large investments [139]. - The PAIS tax was reduced from 17.5% to 7.5% for foreign currency acquisition for imports, effective September 2, 2024 [141]. - The Argentine government has historically influenced the telecommunications sector through regulations and ownership stakes, which may continue to affect Telecom Argentina's operations [150]. - The company faces risks from potential government interventions, including nationalization and changes in regulatory frameworks, which could adversely impact its financial condition [151]. - The BCRA has implemented new regulations limiting the flow of foreign currency into and from Argentina, affecting the transfer of securities and foreign currency transactions [269][270]. Financial Performance and Risks - As of December 31, 2024, Telecom Argentina had P$2,627,952 million in liabilities denominated in foreign currencies, indicating significant exposure to foreign exchange risks [128]. - Telecom Argentina's revenues are primarily in Argentine Pesos, making the company vulnerable to inflation that is not matched by price increases [149]. - The devaluation of the Argentine Peso and foreign exchange restrictions may hinder Telecom Argentina's ability to pay dividends and meet obligations in U.S. dollars [128]. - The total indebtedness of Telecom as of December 31, 2024, was P$2,878,004 million, representing a 37.9% decrease compared to the previous year [249]. - 71.3% of Telecom's debt is scheduled to mature within the next three years, with 37.3% maturing in 2025 [249]. - The company anticipates increased revenues from cable television and internet services, but growth may be hindered by competition from non-traditional technologies like OTT services [209]. - The market price of Telecom Argentina's ADSs increased by approximately 79% in 2024, 39% in 2023, and 7% in 2022 [263]. Competition and Market Dynamics - The company is subject to substantial competition in the Argentine telecommunications market, which may impact its market share and profitability [114]. - The company anticipates increased competition in Fintech Services from both local and global players, which may impact market share and revenue [198]. - An increase in churn rates for mobile telephony, cable television, and internet services could materially impact the company's revenues and operations [211]. Technological and Operational Challenges - The company is exposed to risks related to technological advancements, requiring significant expenditures to maintain competitiveness in its service offerings [114]. - The telecommunications industry is subject to rapid technological changes, requiring substantial capital expenditures to maintain competitiveness [206]. - The company must continuously invest in network upgrades and new technologies to enhance user experience and remain competitive in the internet and mobile markets [207]. - Telecom Argentina must comply with regulatory obligations related to the acquisition of 4G and 5G spectrum, requiring significant resources for network maintenance and refurbishment [197]. - Cybersecurity risks have increased due to the proliferation of new technologies, potentially leading to significant operational and financial impacts [226]. - The adoption of new technologies, such as AI, may introduce additional cybersecurity vulnerabilities that could adversely affect the company's business [229]. Legal and Compliance Issues - The company may face legal and regulatory proceedings that could result in unfavorable decisions and financial penalties [114]. - The company is subject to BCRA regulation for Fintech Services, and any non-compliance could result in regulatory sanctions and reputational damage [195]. - The Federal Court nullified Decree No. 690/20, impacting regulatory frameworks affecting the company [313]. - Related-party transactions exceeding 1% of shareholders' equity are subject to a prior approval process to ensure compliance with market practices [292]. Strategic Acquisitions and Investments - Telecom Argentina acquired 99.999625% of Telefónica Móviles for US$1.245 billion, financed through two loans totaling US$1.170 billion [187]. - The acquisition is subject to post-closing review by regulators, including ENACOM and CNDC, to ensure compliance with regulatory and antitrust requirements [188]. - Telecom Argentina acquired 100% of TSMA, previously holding 50.1%, and received US$5.5 million for the share transfer [306]. - Telecom Argentina exercised call options to acquire 100% of Naperville and Saturn for a total of US$42 million, consolidating its ownership of Manda and RISSAU [309]. - A new subsidiary, CrediPay, was established in Paraguay with a 67.5% ownership to engage in financial activities [310]. Stakeholder Expectations and ESG - Stakeholders' evolving expectations regarding ESG practices may impose additional costs or expose the company to new risks [114]. - The evolving expectations regarding ESG practices may impose additional costs and expose Telecom to new risks, affecting its reputation if not adequately addressed [235].

Corporate Reorganization - Telecom Argentina's Board of Directors approved a corporate reorganization to merge its controlled companies Negocios y Servicios S.A.U. and AVC Continente Audiovisual S.A.[5] - The effective date of the corporate reorganization is set for January 1, 2025[6] - The reorganization will be presented for approval at the Ordinary and Extraordinary General Shareholders' Meeting scheduled for April 25, 2025[6]

Financial Performance - Revenues for the three-month period ended September 2024 were ARS 983,141 million, a decrease of 4.6% compared to ARS 1,030,218 million in the same period of 2023[41]. - Net income for the nine-month period ended September 2024 was ARS 951,912 million, significantly higher than ARS 263,157 million for the same period in 2023, representing an increase of 261.5%[41]. - The operating loss for the three-month period ended September 2024 was ARS 36,736 million, an improvement from a loss of ARS 57,149 million in the same period of 2023[41]. - Total comprehensive loss for the three-month period ended September 2024 was ARS 37,100 million, compared to a comprehensive income of ARS 101,239 million in the same period of 2023[44]. - The total net income attributable to the controlling company for the nine-month period ended September 2024 was ARS 938,639 million, compared to ARS 251,230 million for the same period in 2023, indicating a substantial increase[41]. - The net income for the period ending September 30, 2023, was 938,639 million pesos, compared to a net income of 251,230 million pesos for the same period in the previous year, indicating a significant increase of approximately 273%[47]. - Total comprehensive income for the nine-month period ending September 30, 2023, was 793,253 million pesos, a substantial rise from 249,176 million pesos in the prior year, representing an increase of about 218%[47]. - The company reported a total comprehensive loss of 145,386 million pesos for the period, which is a decrease from the previous year's loss of 2,054 million pesos, indicating improved financial performance[47]. - The company reported a basic and diluted loss per share attributable to the controlling company of ARS 7.60 for the three-month period ended September 2024, down from earnings of ARS 43.47 in the same period of 2023[41]. - The net loss for the three-month period ended September 30, 2024, was ARS 11,543 million, compared to a net income of ARS 98,988 million in the same period of 2023, indicating a significant shift in performance[81]. Assets and Liabilities - Total assets decreased from ARS 11,041,799 million as of December 31, 2023, to ARS 10,193,592 million as of September 30, 2024, representing a decline of approximately 7.7%[38]. - Current assets fell from ARS 971,981 million to ARS 717,760 million, a decrease of about 26.1%[38]. - Total liabilities decreased from ARS 6,515,443 million to ARS 4,956,216 million, a reduction of approximately 23.9%[38]. - Non-current liabilities decreased from ARS 4,284,510 million to ARS 3,164,706 million, a reduction of approximately 26.1%[38]. - Total equity increased from ARS 4,526,356 million to ARS 5,237,376 million, reflecting a growth of about 15.7%[38]. - Equity attributable to the controlling company increased from ARS 4,370,029 million to ARS 5,138,576 million, reflecting a growth of about 17.6%[38]. - Total cash and cash equivalents decreased to ARS 182,810 million as of September 30, 2024, down from ARS 322,074 million as of December 31, 2023[93]. - Total trade receivables decreased from $268,344 million on December 31, 2023, to $256,180 million on September 30, 2024, representing a decline of approximately 4.0%[104]. - Total inventories decreased from $63,557 million to $53,100 million, reflecting a decline of about 16.5%[109]. - Total trade payables decreased from $721,192 million to $403,042 million, a significant drop of approximately 44.2%[121]. Cash Flows - Total cash flows from operating activities decreased to ARS 479,006 million in 2024 from ARS 943,912 million in 2023, reflecting a decline of about 49%[52]. - Cash flows used in investing activities improved to ARS (249,793) million in 2024 compared to ARS (661,203) million in 2023, indicating a reduction in cash outflow by approximately 62%[52]. - The company reported a net decrease in cash and cash equivalents of ARS (83,368) million for the period, contrasting with an increase of ARS 53,562 million in the previous year[52]. - Payments for property, plant, and equipment (PP&E) were ARS (205,909) million in 2024, down from ARS (368,261) million in 2023, a decrease of approximately 44%[52]. - The company received dividends from associates amounting to ARS 933 million in 2024, compared to ARS 1,891 million in 2023, reflecting a decline of about 51%[52]. Borrowings and Debt - Borrowings decreased significantly from ARS 4,289,779 million to ARS 2,663,441 million, a reduction of about 37.8%[38]. - Current borrowings decreased from $1,135,863 million to $1,029,938 million, a reduction of about 9.3%[122]. - Proceeds from borrowings increased to ARS 842,682 million in 2024, up from ARS 527,996 million in 2023, marking a rise of about 60%[52]. - The company made principal payments on borrowings totaling $816,816 million in the nine-month period ended September 30, 2024, up from $325,329 million in the same period of 2023, indicating a significant increase of approximately 150%[125]. - The company issued Series 20 Notes with a principal value of $59.7 million and Series 21 Notes with a principal value of $115.3 million, both with an annual fixed interest rate of 9.50%[126]. Operational Highlights - The company has established a new subsidiary, CrediPay, which is expected to contribute to future revenue streams and market expansion efforts[48]. - The merger between Núcleo and Tuves Paraguay S.A. was completed in June 2024, indicating strategic consolidation in the telecommunications sector[62]. - Telecom Argentina continues to monitor its operations in the fintech industry and abroad, although these segments are not currently considered reportable due to their size[72]. - The company operates under a single business unit strategy, consolidating various services including mobile, internet, and cable television under the ICT Services segment[70]. - The company is currently navigating regulatory changes, including the repeal of Decree No. 690/20, which may impact pricing for its services[197]. Shareholder Information - The controlling company, CVH, holds 28.16% of the capital stock of Telecom Argentina, influencing major decisions through a Voting Trust Agreement[182]. - The company has allocated 210,544 million pesos in dividends to non-controlling shareholders, reflecting a commitment to shareholder returns despite recent losses[47]. - The shareholders approved a proposal to absorb an accumulated deficit of $257,730 million, equivalent to $519,534 million in current currency as of September 30, 2024[172].

Financial Data and Key Metrics Changes - The EBITDA margin for the first half of 2024 was 29.7%, showing improvement year-over-year despite a challenging macroeconomic environment [6] - Revenues totaled almost $1.83 billion, with a year-over-year decrease of 13% in constant pesos, but a quarter-over-quarter growth of 5.6% in real terms [9] - The net income profit was ARS 859 billion, primarily due to real exchange differences gains [6][20] Business Line Data and Key Metrics Changes - Mobile subscribers increased by over 3% year-over-year, with mobile data usage growing by 18% [7] - Broadband ARPU grew above inflation year-over-year, with FTTH accesses rapidly increasing [7][12] - Pay TV unique customers reached almost 1.5 million, an increase of 11% year-over-year [7][12] Market Data and Key Metrics Changes - The company holds a 35% market share in the broadband business in Paraguay, contributing to margin improvements [37] - In Paraguay, mobile customers grew by 5% year-over-year, with broadband and pay TV subscribers increasing by 17% and 10% respectively [14][15] Company Strategy and Development Direction - The current CapEx focus is on expanding fixed and mobile access networks, particularly FTTH and 5G [6][21] - The company aims to improve operational profitability through effective pricing and cost management strategies [18][30] - The Fintech business, Personal Pay, has grown significantly, with almost 3 million onboarded clients, positioning it as a key player in the market [16][29] Management's Comments on Operating Environment and Future Outlook - Management expects a reduction in inflation rates, which may stabilize around 2-3% [39][41] - Delinquency rates are among the lowest in the company's history, indicating improved collection practices [41] - The company is cautiously optimistic about the second half of the year, with positive trends in customer behavior and revenue expectations [39][42] Other Important Information - The company successfully returned to international debt capital markets with a $500 million issuance due in 2031, indicating strong investor support [8][27] - The net debt-to-EBITDA ratio as of June 2024 was 2.2x, reflecting a recovery in operational profitability [25] Q&A Session Summary Question: Consolidated margins and quarter-over-quarter decline - Management explained that seasonal factors and inflation fluctuations impacted margins, with a typical pattern of higher margins at the beginning of the year [32][33] Question: Margin improvement in Paraguay - The improvement is driven by the broadband business growth and cost management in the mobile segment [37] Question: Outlook for the second half and customer resistance to price increases - Management noted that July and August showed strong performance, with expectations for stable customer behavior regarding pricing [38][39] Question: Expectations for pricing increases and profitability - Management clarified that previous legal restrictions on price increases did not significantly impact their pricing strategy, which remains focused on portfolio evolution [44][45] Question: Clarification on cash flow and liability management - Management discussed the resolution of previous foreign exchange restrictions and ongoing liability management efforts to improve debt structure [47][52]