What were the key takeaways from Telecom Argentina’s earnings call?

What factors drove the changes in Telecom Argentina's revenue and profit?

What is Telecom Argentina's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Telecom Argentina year over year?

Did Telecom Argentina beat or miss consensus estimates last quarter?

What does Telecom Argentina do and what are its main business segments?

What guidance did Telecom Argentina's management provide for the next earnings period?

What were the key takeaways from Telecom Argentina's earnings call?

- **Revenue Surge**: 50% YoY growth driven by TMA integration.
- **Profitability Boost**: EBITDA margin 30.5%, up 170bps YoY.
- **Network Expansion**: $615 million CAPEX for 5G and FTTH.
- **Financial stability**: $1 150 million dividend, maintaining 1.9x leverage ratio.

**【Management Opening Remarks】**
- Introduced the earnings call, highlighting the inclusion of TMA’s results post-acquisition on February 24, 2025.
- Noted the use of inflation-adjusted accounting per IAS 29 and provided a safe harbor disclaimer for forward-looking statements.

**【CFO Financial Commentary】**
- **Revenue Growth**: Consolidated revenues reached ARS 4.1 billion, up 50% YoY in constant pesos, driven by TMA’s contribution.
- **Profitability**: EBITDA margin expanded to 30.5% (32.6% excluding severance charges), up 170bps YoY.
- **Investment**: CAPEX of $615 million (+73% YoY) focused on 5G and FTTH expansion.
- **TMA Integration**: TMA’s EBITDA margin improved to 28% from 11% YoY, reflecting efficiency initiatives.
- **Dividend Announcement**: $150 million dividend, with $130 million in bonds and $20 million in cash.

**【Regional Operations】**
- **Paraguay**: Mobile subs grew 8% YoY, EBITDA margin 53%, supported by strong fintech TPV growth (220% YoY).
- **Uruguay**: Pay TV and broadband expansion in a highly competitive market.

**【Financial Management】**
- **Debt Profile**: Gross debt $3.7 billion, with a 1.9x leverage ratio and extended debt maturity to 4 years.
- **2025 Financing**: Secured $2.7 billion in diverse funding sources,2025.

**【Dividend Payment】**
- Distributed $150 million, aligning with shareholder returns since 2017.

Telecom Argentina SA ADR (TEO) Q3 2025 Earnings Call Transcript

- **Revenue Resilience**: Nominal revenue +229% YoY, with Q2 2024 real growth 5.6% QoQ. Service revenues dominate at 90%.
- **Margin Expansion**: EBITDA margin 29.7% (vs. 28.4% 2023), driven by cost control and pricing strategy.
- **Subscriber Growth**: Mobile +3% YoY, FTTH broadband at 18% of total, Pay TV unique users +11% YoY.
- **Debt Management Success**: $500M bond issuance with 9.7% yield, reducing net debt/EBITDA to 2.2x.
- **Fintech Leap**: Personal Pay onboarded 3M clients, ARS 31.1B in mutual funds, second-largest fintech in Argentina.
- **Paraguay Momentum**: Mobile +5% YoY, broadband market share 35%, Pay TV stable in Uruguay.


**【Management Opening Remarks】**
- Telecom Argentina executives welcomed participants and outlined the call’s purpose: discussing Q2 2024 results and providing updates on operational and financial performance. Key highlights included EBITDA margin improvement, subscriber growth, and successful debt management.

**【CFO Financial Commentary】**
- **Revenue Performance**: Total revenues reached ARS 1.83 trillion (nominal +229% YoY), with service revenues accounting for 90%. Real terms revenue decreased 13% YoY due to inflation, but Q2 2024 saw a 5.6% QoQ growth.
- **EBITDA Margin**: Improved to 29.7% (vs. 28.4% in 2023), driven by cost containment and pricing strategy. EBITDA totaled ARS 543 billion.
- **Subscriber Growth**: Mobile subscribers +3% YoY to 21.2 million; FTTH broadband accesses grew rapidly, contributing 18% of total broadband base. Pay TV unique customers reached 1.5 million (+11% YoY).
- **Financial Health**: Net debt/EBITDA ratio improved to 2.2x (vs. peak of 3.5x post-2023 devaluation). Successful $500 million bond issuance in July 2024, with total offers exceeding $1.3 billion.
- **CapEx**: $246 million (13% of revenues), focused on FTTH and 5G rollout. 44 new mobile sites deployed, 105 5G sites operational, and 4,300 new FTTH locks added.

**【CEO Operational Update】**
- **Pricing Strategy**: Monthly price adjustments mitigated inflation (79.7% 2024 YoY). Service revenues grew 3.5% QoQ above inflation, with ARPU recovery in broadband and mobile.
- **Cost Management**: Labor costs increased below inflation, G&A expenses down 3.7% of revenues. Bad debt improved to 2.1% of sales (vs. 2.5% in 2023).
- **Fintech Growth**: Personal Pay onboarded 3 million clients, with ARS 31.1 billion in mutual fund investments, making it the second-largest fintech in Argentina.
- **Regional Expansion**: Paraguay mobile subscribers +5% YoY to 2.4 million; Pay TV in Uruguay stable at 117,000.

**【Q&A Highlights】**
- **Margin Trends**: Sequential margin decline due to seasonal factors and inflation stabilization. Q2 2024 saw EBITDA margin expansion vs. Q2 2023, but QoQ decline due to lower inflation pass-through.
- **Paraguay Performance**: Margin improvement driven by broadband growth (35% market share) and cost optimization in mobile. FTTH rollout and digitalization reduced contact center costs.
- **Second-Half Outlook**: Expect stable inflation (~23% YoY) and continued ARPU growth. Prepaid phone usage increase suggests customer confidence.
- **Debt Management**: Extended maturity profile through bond issuance and liability swaps. Average debt life extended to 3 years, with cost reduction of 25 basis points.


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