Telecom(US:TEO)2022-08-12 10:30Financial Data and Key Metrics Changes - The company's consolidated revenues for the first half of 2022 reached ARS 231 million, reflecting a nominal increase of 30% but a real decrease of 10% when adjusted for inflation [21] - EBITDA increased by 45% in nominal terms, generating an EBITDA margin of 31.2%, while the real EBITDA margin was 30.6% [21][22] - The company's net income totaled ARS 31.9 billion, with EBIT being negative in real terms due to decreasing EBITDA [25][26] Business Line Data and Key Metrics Changes - Mobile subscribers in Argentina increased to 20.1 million, up by over 800,000 compared to the first half of 2021 [8] - Service revenues totaled ARS 248 billion, a decrease of 10% in real terms, with mobile revenues accounting for 39% and broadband revenues for 22% [14] - The postpaid subscriber base increased by over 300,000 clients, while prepaid subscribers grew by almost 500,000 clients [12][13] Market Data and Key Metrics Changes - Year-over-year inflation in Argentina as of June 2022 was 64%, with inflation accelerating during the second quarter [10] - The company has implemented multiple price increases across its services, including a 15% increase for postpaid plans and a 16% increase for prepaid plans [11][12] Company Strategy and Development Direction - The company is focusing on cost management to mitigate the impact of rising labor costs and has successfully contained most operating costs [22] - Investments in renewable energy were highlighted, with the company closing an auction for 177,000 megawatts, which will reduce carbon emissions by 20% [6][7] - The company is expanding its FTTH network and has plans for new regional investments to increase market coverage [28] Management's Comments on Operating Environment and Future Outlook - Management anticipates that local inflation will remain high throughout 2022, impacting pricing strategies and cost structures [10] - The company is optimistic about cash flow generation, which remains solid despite the challenges posed by inflation [29] Other Important Information - The company has successfully managed its debt, with gross debt amounting to $2.7 billion and a net debt to EBITDA ratio of 1.94 times [30] - The company has made significant investments in CapEx, amounting to over ARS 38 billion, primarily focused on access network and technology [27] Q&A Session Summary - The Q&A session ended abruptly, and no specific questions or answers were recorded [33]