Telecom(US:TEO)2025-08-12 21:26Financial 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]