Telecom(US:TEO)2025-11-12 21:15Financial Performance - Revenues for the three-month period ended September 30, 2025, reached ARS 2,065,211 million, a 59.5% increase compared to ARS 1,295,358 million for the same period in 2024[23] - The net loss for the nine-month period ended September 30, 2025, was ARS 272,543 million, compared to a net income of ARS 1,254,213 million for the same period in 2024, indicating a significant decline[23] - Total revenues for the nine-month period ended September 30, 2025, reached $5,622,561 million, a 49.5% increase from $3,758,165 million in the same period of 2024[121] - The net loss for 9M25 was $272,543 million, compared to a net income of $1,254,213 million in 9M24, representing (4.8)% of revenues[162] - Adjusted EBITDA for 9M25 totaled $1,716,387 million, representing 30.5% of revenues, up from $1,083,434 million or 28.8% of revenues in 9M24[163] Assets and Liabilities - As of September 30, 2025, total assets increased to ARS 15,630,443 million, up from ARS 13,345,219 million at the end of 2024, representing a growth of approximately 17.2%[21] - Total current liabilities increased to ARS 3,325,458 million as of September 30, 2025, compared to ARS 2,388,597 million at the end of 2024, reflecting a rise of approximately 39.2%[21] - The company’s equity attributable to the controlling company decreased to ARS 6,436,731 million as of September 30, 2025, down from ARS 6,616,647 million at the end of 2024, a decline of approximately 2.7%[21] - The company reported a total of $421,050 million in current assets at fair value as of September 30, 2025, compared to $127,508 million as of December 31, 2024[116] Operating Results - Operating income for the three-month period ended September 30, 2025, was ARS 165,788 million, recovering from an operating loss of ARS 48,404 million in the same period of 2024[23] - Total operating costs without depreciation reached $3,906,174 million in 9M25, an increase of 46.0% compared to 9M24, largely due to TMA's consolidation[196] - Employee benefit expenses for the nine-month period totaled $(1,358,615), reflecting the company's commitment to workforce management[58] - Operating expenses for the nine-month period ended September 30, 2025, totaled $5,270,240 million, compared to $3,898,310 million in 2024, reflecting a 35.2% increase[126] Cash Flow and Investments - Operating activities generated cash flows of ARS 1,296,377 million for the nine-month period ended September 30, 2025, an increase from ARS 631,125 million in 2024[32] - Cash flows used in investing activities totaled ARS 2,065,653 million for the nine-month period ended September 30, 2025, compared to ARS 329,121 million in the previous year[32] - Total investments amounted to $302.55 million as of September 30, 2025, compared to $57.56 million in the previous period[76] Borrowings and Financial Results - Financial results from borrowings showed a loss of ARS 679,159 million for the nine-month period ended September 30, 2025, compared to a gain of ARS 1,779,364 million in the same period of 2024[23] - Total borrowings rose to $5.12 billion as of September 30, 2025, up from $3.51 billion at the end of the previous year[89] - The company reported financial results from borrowings of $(679,159) for the nine-month period, impacting overall profitability[58] Acquisition and Market Expansion - The acquisition of TMA was completed on February 24, 2025, for a total purchase price of $1,245 million, which includes assuming a debt of $126 million[136][138] - The company financed the acquisition of TMA through two loans totaling US$1,170 million, net of issuance costs amounting to US$1,142 million[95] - The acquisition of TMA and other subsidiaries has expanded the company's service offerings in the ICT sector, enhancing its market position in Argentina[42] Customer and Service Performance - Mobile services revenue for the three-month period ended September 30, 2025, was $1,035,232 million, up 96.1% from $528,354 million in 2024[121] - Internet services revenues amounted to $1,235,080 million in 9M25, a 29.2% increase compared to $955,895 million in 9M24[175] - The customer base for mobile services in Argentina decreased to 20.3 million as of September 30, 2025, down from 21.4 million in 2024, with a churn rate of 2.1%[171] Regulatory and Compliance - The company has established obligations to comply with certain financial ratios, calculated quarterly based on contractual definitions[99] - The company complies with the financial ratios established in the loan agreements, including the EBITDA/Interest Net ratio and the Net Debt/EBITDA ratio[101] Future Outlook - Future outlook includes a focus on market expansion and potential new product developments to enhance revenue streams[58]