Telecom Argentina Reports Q1 2023 Earnings: Net Loss of $75.5mln, Revenue Up 44.4% YoY

Telecom Argentina reported a net loss of P$75,554 million in 1H25, compared to a profit of P$1,197,930 million in 1H24. Revenue increased by 44.4% YoY to P$3,357 billion. Service revenues reached P$3,160,986 million. Mobile accesses declined by 1.3% to 20.9 million.

Telecom Argentina (NYSE:TEO) reported mixed financial results for the first half of 2025 (1H25), with a net loss of P$75,554 million compared to a profit of P$1,197,930 million in the same period last year (1H24). The company's revenue increased by 44.4% year-over-year (YoY) to P$3,357 billion, driven largely by the integration of Telefónica Móviles Argentina (TMA). Service revenues reached P$3,160,986 million, while mobile accesses declined by 1.3% to 20.9 million.

The company's operating income before depreciation, amortization, and impairment (D&A&I) totaled P$1,007,153 million, representing a 30.0% margin. This was a modest 0.3 percentage point improvement over the previous year. The net financial debt increased to P$4,029,971 million, reflecting the financing required for the TMA acquisition.

Telecom Argentina's broadband subscriber base increased by 1.5% to 4.1 million, while pay TV subscribers grew by 2.3% to 3.2 million. The company's mobile subscriber base declined by 1.3% to 20.9 million, with postpaid customers increasing by 1.1%. TMA's mobile base grew by 2.5% to 19.3 million.

The average revenue per user (ARPU) metrics showed improvement across services, with mobile ARPU for Telecom increasing by 12.6% in real terms, broadband ARPU up by 6.3%, and pay TV ARPU rising by 5.3%. These ARPU improvements partially offset subscriber losses in some segments and demonstrate pricing power despite Argentina's challenging economic environment.

The acquisition of TMA has significantly altered Telecom Argentina's financial structure, with consolidated net financial debt reaching P$4,029,971 million, representing a 38.2% increase in real terms compared to December 2024. This substantial debt increase reflects the financing required for the TMA acquisition, which will be a key factor to monitor in future periods.

The company's capital expenditure (CAPEX) was disciplined at 14.3% of consolidated revenues, suggesting a measured approach to network investment while managing the integration costs of TMA. The market capitalization of Telecom Argentina as of August 8, 2025, was US $4,346.14 million.

Telecom Argentina's 1H25 results present a complex financial picture marked by the significant integration of Telefónica Móviles Argentina (TMA), which was consolidated for four months during the reporting period. The company's revenue growth primarily stems from the TMA acquisition rather than organic growth. Looking at service revenues provides a clearer picture of performance: Telecom's standalone operations (excluding TMA) grew by 3.8% in real terms compared to 1H24, a notable improvement from the -11.7% decline seen in the previous comparable period.

[1] https://www.stocktitan.net/news/TEO/telecom-argentina-s-a-announces-consolidated-results-for-the-first-kpi4dogqqcfr.html