Telecom(US:TEO)2024-11-13 01:29Financial 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].