Telecom(TEO)2024-05-20 20:05Financial Performance - Revenues for the three-month period ended March 31, 2024, were ARS 683,916 million, a decrease of 18% compared to ARS 833,213 million in the same period of 2023[23] - Net income for the period was ARS 675,032 million, significantly up from ARS 110,477 million in the prior year, representing a 510% increase[26] - Earnings per share attributable to the controlling company increased to ARS 312.14 from ARS 49.99, reflecting a substantial growth in profitability[23] - Total comprehensive income for the three-month period ended March 31, 2024, was ARS 598,958 million, compared to ARS 104,663 million in the same period of 2023, showing an increase of about 471%[32] - The company reported a significant foreign currency exchange gain on borrowings of 51,644 million in the same period of 2023[116] - The company reported a net financial gain of 75,149 million in 3M23, driven primarily by foreign exchange gains[165] Assets and Liabilities - Total assets decreased to ARS 8,143,553 million as of March 31, 2024, down from ARS 8,305,246 million at the end of 2023[21] - Total liabilities reduced to ARS 4,167,697 million from ARS 4,900,683 million, indicating improved financial stability[21] - The total equity attributable to the controlling company as of March 31, 2024, was ARS 3,885,937 million, an increase from ARS 3,864,686 million as of March 31, 2023[29] - The company reported a net increase in liabilities of 69.832 million in Q1 2023[64] - Total liabilities amounted to 2,215,334 million as of March 31, 2023[83] Cash Flow and Investments - Total cash flows from operating activities for the three-month period ended March 31, 2024, amounted to ARS 171,229 million, compared to ARS 206,118 million in 2023, indicating a decrease of about 17%[32] - The company reported a net decrease in cash and cash equivalents of ARS 25,333 million for the three-month period ended March 31, 2024, compared to a decrease of ARS 21,829 million in the same period of 2023[32] - The company’s total cash flows used in investing activities for the three-month period ended March 31, 2024, were ARS 224,218 million, a decrease from ARS 237,682 million in 2023[32] Operational Efficiency - The company continues to focus on improving operational efficiency and reducing costs in response to market challenges[23] - The company is focusing on digital transformation through automation, artificial intelligence, cloudification, and big data management to enhance operational efficiency[189] Market Conditions - The National Consumer Price Index (CPI) in Argentina increased by 287.9% year-over-year as of March 31, 2024, indicating a high inflationary environment[58] - The annual inflation rate in Argentina reached 287.9%, impacting the company's ability to increase prices in line with inflation during Q1 2024[134] Future Outlook - The company plans to expand its 5G network to reach 200 sites in 2024, enhancing service offerings and connectivity[183] - The company anticipates a trend towards inflation deceleration and stability in the exchange rate, which may positively impact future revenues[180] - The company is seeking financing opportunities in international markets and local capital markets to support its investment plan[186] Revenue Breakdown - Mobile services revenues fell by 18.1% to 101,424 million[133] - Internet services revenues decreased by 168,535 million in 3M24, driven by a 9.8% decrease in Broadband Internet access ARPU[141] - Revenues from other services increased by 7,836 million in 3M24, mainly due to fintech services growth[152] Cost Management - Operating expenses for the three-month period ended March 31, 2024, amounted to 845,198 million in the same period of 2023[112] - Employee benefit expenses and severance payments decreased from 157,824 million in Q1 2024, reflecting a reduction of 21%[112] Shareholder Information - The weighted average number of shares outstanding during the period was 2,153,688,011, with basic and diluted earnings per share remaining the same due to no dilutive potential common stock outstanding[52][53] - Telecom Argentina's capital stock remained stable at $2,153,688,011 as of both March 31, 2024, and December 31, 2023[107]