Telecom(TEO)

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Telecom(TEO) - 2020 Q4 - Annual Report
2021-03-25 21:04
Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report. Class A Ordinary Shares, nominal value P$1.00 each 683,856,600 Class B Ordinary Shares, nominal value P$1.00 each 628,058,019 As filed with the Securities and Exchange Commission on March 25, 2021 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ¨ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) O ...
Telecom(TEO) - 2020 Q4 - Earnings Call Transcript
2021-03-10 23:50
Financial Data and Key Metrics Changes - Telecom Argentina's revenues for fiscal year 2020 totaled $3.6 billion, with a year-over-year decrease of 6.5% in constant pesos [7] - EBITDA reached $1.2 billion, resulting in a 34.1% EBITDA margin, which remained high despite the challenges posed by COVID-19 [7] - Service revenues amounted to almost ARS 284 billion, reflecting a 6.3% decrease in real terms compared to fiscal year 2019, while inflation was 36.1% year-over-year [29] Business Line Data and Key Metrics Changes - Mobile subscribers in Argentina decreased to 18.7 million, with a loss of approximately 228,000 subscribers compared to the previous quarter, primarily due to a decline in the prepaid segment [8] - Broadband and pay TV clients remained stable at around 4.2 million and 3.5 million, respectively [8] - Fixed voice subscribers totaled 2.9 million, with 2.7 million convergent unique customers [9] Market Data and Key Metrics Changes - The mobile revenue share increased to 38%, while broadband revenue accounted for 21% and pay TV revenue for 20% [30] - The average mobile internet usage reached over 4.3 gigabytes per user per month in 2020, indicating strong demand for mobile services [32] - In Paraguay, Núcleo generated $190 million in revenues during fiscal year 2020, with a significant increase in broadband subscribers [34] Company Strategy and Development Direction - The company aims to be 100% digital, focusing on integrating operations and creating an ecosystem of platforms to enhance customer experience [11] - Telecom is investing in IoT, fintech initiatives, and digital transformation projects to drive revenue growth [19][20] - The company is cautious with CapEx, planning a minimum of $350 million for maintenance and potential increases depending on economic conditions [60][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining margins through price adjustments and operational synergies, despite challenges from inflation [56][67] - The company is optimistic about its ability to adjust prices in line with inflation and is focused on cost control [67] - Regulatory challenges, particularly regarding price controls, are expected to impact future pricing strategies [71][72] Other Important Information - The company successfully refinanced $777 million of debt and extended maturities, improving its capital structure [12][46] - Telecom's cash flow generation was strong, with operating free cash flow amounting to approximately $583 million [45] - The company has initiated the deployment of 5G mobile sites, with plans for significant expansion in 2021 [64] Q&A Session Summary Question: Can you comment on the wallet initiative and its current user size? - The wallet project has over 4 million prepaid wallets and is set to launch in mid-2021, leveraging existing customer bases and transactions [54] Question: Are the price increases sufficient to sustain margins? - Management is confident that price adjustments and operational synergies will help maintain margins [56] Question: What percentage of mobile clients use over 1 gigabyte of data? - More than 90% of postpaid customers and nearly 100% of prepaid customers use over 1 gigabyte of data [58] Question: What are the plans for CapEx and 5G rollouts? - The minimum CapEx for 2021 is set between $350 million and $500 million, with plans to deploy over 250 5G sites [60][64] Question: What is the current status of average discounts across products? - Average discounts have decreased to about 30-35% of the customer base [65] Question: How does the company plan to comply with Central Bank regulations regarding debt? - The company has refinanced over 80% of its 2021 bond, minimizing pressure from regulations [68] Question: What is the outlook on price regulation going forward? - Management is optimistic about being able to adjust prices in line with inflation, despite regulatory challenges [72]
Telecom(TEO) - 2020 Q3 - Earnings Call Transcript
2020-11-11 20:23
Financial Data and Key Metrics Changes - Telecom Argentina's revenue for the first nine months of 2020 totaled P$2.7 billion, with a year-over-year decrease of 4.6% in constant pesos [10] - EBITDA reached P$1 billion, resulting in a 35.8% EBITDA margin, which grew by 2.4% year-over-year in constant pesos [10] - Service revenues decreased by 3.6% in real terms compared to the same period in 2019, with inflation reaching 36.6% year-over-year [23][34] Business Line Data and Key Metrics Changes - Mobile subscribers decreased by approximately 150,000 to 18.7 million, with a decline of around 250,000 in the prepaid segment, partially offset by an increase of close to 100,000 in postpaid [11] - Broadband and paid TV clients increased to 4.2 million and 3.6 million respectively, while fixed voice subscribers totaled 2.9 million [11] - Postpaid subscribers accounted for 41% of the total customer base, with a 2.6% increase, while prepaid subscribers decreased by 4.5% [22] Market Data and Key Metrics Changes - In Paraguay, Núcleo, a subsidiary, registered revenues of around P$142 million and EBITDA of P$62 million for the first nine months of 2020, with mobile customers totaling 2.2 million [30][31] - The broadband market share in Paraguay reached 33%, with significant growth in fixed internet subscribers [67] Company Strategy and Development Direction - The company is focused on digital transformation, aiming to become a 100% digital company, integrating operations and enhancing customer experience [14] - Telecom Argentina is working on IoT, FinTech, and Personal Cloud projects to diversify revenue streams [13] - The company plans to maintain CapEx at around 17% of revenues, focusing on network integration and infrastructure improvements [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential price increases in 2021, despite current price freezes due to government regulations [60] - The company is targeting a reduction in bad debt to around 3% for the next year, anticipating a gradual return to normal levels post-pandemic [73] - Management noted that the competitive landscape remains aggressive, but Telecom Argentina has managed to increase ARPU and maintain revenue growth [74] Other Important Information - The company has improved its capital structure by refinancing debts and extending maturities, with a gross debt of P$171 billion as of September 2020 [49][52] - Operating free cash flow amounted to approximately $509 million, reflecting an increase due to higher EBITDA and reduced CapEx [48] Q&A Session Summary Question: Update on potential price increases for telecom services in 2021 - Management is optimistic about negotiating price increases with the government, although the extent remains uncertain [60] Question: Alternatives if price increases are not allowed - Management believes there is room to reduce promotional discounts to maintain revenue levels [61] Question: CapEx targets for 2021 - The target is to maintain CapEx at around 17% of revenues, with a focus on network integration and infrastructure [62] Question: Mobile performance despite price freeze - The success in converting prepaid to postpaid subscribers has contributed to stable revenue performance [66] Question: Long-term goals for Paraguay's fixed broadband product - The company aims to continue growing its market share in Paraguay, leveraging its FTTH network [67] Question: Impact of the decree on customer base and bad debt - The decree has led to an increase in non-paying customers, with bad debt rising to approximately 3.8% [69] Question: Competitive environment in Paraguay - The market remains competitive, but Telecom Argentina has managed to increase revenues while competitors struggle [74] Question: Plans for dividend distribution next year - The decision regarding dividends will be made at the upcoming shareholders' assembly [76] Question: Cost-cutting initiatives and future potential - Management believes there is limited room for further cost reductions without impacting necessary operational expenses [77]
Telecom(TEO) - 2020 Q2 - Earnings Call Transcript
2020-08-19 21:10
Telecom Argentina SA. (NYSE:TEO) Q2 2020 Results Earnings Conference Call August 19, 2020 11:00 AM ET Company Participants Solange Barthe Dennin - Manager of Investor Relations Roberto Nobile - Chief Executive Officer Gabriel Blasi - Chief Financial Officer Fernando José Balmaceda - Director of Investor Relations Conference Call Participants Solange Barthe Dennin Good morning. On behalf of Telecom Argentina, I would like to thank everybody for participating on this conference call. The participants on today ...
Telecom(TEO) - 2019 Q4 - Annual Report
2020-03-18 20:52
As filed with the Securities and Exchange Commission on March 18, 2020 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition pe ...
Telecom(TEO) - 2018 Q4 - Annual Report
2019-03-26 22:37
Table of Contents As filed with the Securities and Exchange Commission on March 26, 2019 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For ...
Telecom(TEO) - 2018 Q4 - Earnings Call Transcript
2019-03-12 00:26
Telecom Argentina SA (NYSE:TEO) Q4 2018 Results Earnings Conference Call March 8, 2019 10:00 AM ET Company Participants Solange Barthe Dennin - IR Gabriel Blasi - CFO Conference Call Participants Rodrigo Villanueva - BofA Merrill Lynch Andre Baggio - JP Morgan Guilherme Haguiara - Bradesco Operator Good day, everyone, and welcome to the Telecom Argentina TEO Fiscal Year 2018 Earnings Conference Call. Today's call is being recorded. Participating on today's call, we have Mr. Gabriel Blasi, Chief Financial Of ...