Telecom Argentina’s Earnings Call: EBITDA Growth, TMA Margin Reports Don’t Match

Date of Call: Mar 11, 2026

Financials Results

• Revenue: $5.7B, up 53% YOY in constant Argentine pesos
• Operating Margin: 5.4% of consolidated revenues in real terms; in historical figures, almost 23%

Business Commentary:

Revenue and EBITDA Growth:

• Telecom Argentina reported consolidated revenues of over $5.7 billion, up 53% year-over-year in constant Argentine pesos.
• The company's EBITDA margin reached 30.3%, an increase of over 200 basis points versus the same period in 2024.
• This growth was primarily driven by the incorporation of TMA results and an improvement in service revenues excluding TMA.

Subscriber and Broadband Growth:

• The mobile subscriber base for Telecom and TMA reached 19.9 and 19.1 million accesses, respectively.
• Broadband subscribers increased by 3.2% year-over-year, reaching 4.2 million accesses.
• Growth was supported by higher FTTH adoption and the expansion of fiber to the home networks.

Financial Resilience and Debt Management:

• Telecom Argentina's net debt to estimated pro forma EBITDA leverage ratio stood at around 1.7 times, improving compared to fiscal year 2024.
• The company successfully extended the average life of its debt to more than 5 years.
• This was achieved through strategic liability management and recent financing activities, enhancing financial flexibility.

TMA Profitability Improvement:

• TMA's fiscal year EBITDA margin, excluding the impact of higher severance charges, stands at approximately 26%, up from 11% in fiscal year 2024.
• This improvement was driven by an efficiency plan that included the elimination of management and brand fees and the optimization of procurement processes.

Regional Performance and Network Expansion:

• Operations in Paraguay showed strong performance with revenues growing almost 7% year-over-year in US dollars and an EBITDA margin of 53%.
• In Argentina, over 1 million homes were passed with new FTTH expansion, and more than 800 new 5G sites were added.
• The focus on regional growth and network expansion contributed to the overall performance and market positioning.

Sentiment Analysis:

Overall Tone: Positive

• Management highlighted 'positive evolution in real terms of service revenues,' 'structural improvement in our profitability,' 'strong execution,' 'rapid rebound,' 'resiliency of our business model,' and 'record levels of expansion' in investments. They also noted awards and a 'solid balance sheet.'

Q&A:

• Question from Unnamed Analyst: Concerns about the impact of TMA's higher severance charges on consolidated profitability?
  Response: Management clarified that excluding the increased severance charge run rate in TMA, consolidated EBITDA margin would be 32%, a 400 basis point expansion versus 2024.

• Question from Unnamed Analyst: What drove the strong improvement in EBITDA margin?
  Response: The margin expansion was driven by lower costs in service fees, maintenance, materials, handset costs, and labor, as well as the positive contribution from TMA.

Contradiction Point 1

Consolidated EBITDA Growth

Discrepancy in the reported EBITDA growth rate between the two quarters.

N/A - N/A

2025Q4: Consolidated EBITDA increased 132% nominally and 65% in real terms - [Federico Pra](CFO)

What were the company's 2025 financial results regarding FX resilience and debt management? - N/A

2025Q3: Consolidated EBITDA increased by 123% in nominal terms year-over-year. - (Prepared Presentation)

Contradiction Point 2

TMA's EBITDA Margin

Inconsistent reporting of TMA's standalone EBITDA margin improvement.

N/A - N/A

2025Q4: TMA's EBITDA margin, excluding a severance charge impact, improved to ~26% from 11% in 2024 - [Federico Pra](CFO)

What was the impact and progress of the TMA acquisition on company performance? - N/A

2025Q3: TMA's profitability improved, with a standalone EBITDA margin above 28% in H1 2025 (vs. 11% in FY2024). - (Prepared Presentation)

Contradiction Point 3

Net Debt to EBITDA Leverage

Contradiction in the stated net debt to EBITDA leverage ratio between quarters.

N/A - N/A

2025Q4: Net debt to EBITDA remained at 1.7x - [Federico Pra](CFO)

How did the company address FX resilience and debt management in its 2025 financial performance? - N/A

2025Q3: The net debt to EBITDA leverage ratio remained strong at 1.9x. - (Prepared Presentation)

Contradiction Point 4

Financial Resilience and FX Impact

Inconsistent portrayal of company's financial stability and inflation's role in offsetting FX depreciation.

How is the company's financial health being affected by foreign exchange rate fluctuations? - (Implied General Inquiry About Financial Health and FX Impact)

2025Q4: The company demonstrated strong resilience to FX volatility; the TMA acquisition did not impact leverage, and a 5.4% FX depreciation in Q4 was largely offset by 7.9% inflation. - [Federico Pra](CFO)

How did the company's 2025 financials address FX resilience and debt management? - Marcelo Santos (JPMorgan)

2025Q2: The sequential margin decline is due to a mix of factors... and the company's move to a monthly price increase schedule, eliminating past seasonal pricing patterns. Margins are expected to normalize for the rest of the year. - [Gabriel Lasi](CFO) & [Roberto Navile](CEO)

Contradiction Point 5

TMA Acquisition Financial Impact

Contradiction on the TMA acquisition's effect on leverage and financial metrics.

How is the company's financial health affected by foreign exchange rates? - (Implied General Inquiry About Financial Health and FX Impact)

2025Q4: The TMA acquisition did not impact leverage... Net debt to EBITDA remained at 1.7x. - [Federico Pra](CFO)

How did the company's financial performance in 2025 address FX resilience and debt management? - Mariano Andre (Clave Capital)

2025Q2: The company's proactive liability management... was part of a strategy to extend debt tenure, reduce cost... The strong investor support ($1.3B in orders) validates the company's credit quality. - [Gabriel Lasi](CFO)