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].

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]

[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]