Telecom Argentina (TEO) investor relations material

Executive summary

• Consolidated revenues exceeded $5.7 billion, up 53% year-over-year in constant Argentine pesos, driven by the acquisition and consolidation of Telefónica Móviles Argentina (TMA) for ten months in FY25 and inflationary adjustments.

• Achieved highest EBITDA margin in company history at 33.7% for FY25, with strong real growth in service revenues and ARPU across all main segments.

• Service revenues excluding TMA grew in real terms for the first time since adopting IAS 29, marking a key inflection point in operating performance.

• Despite revenue growth, a consolidated net loss of ARS 145 million (P$145,304 million) was recorded, mainly due to adverse exchange rate effects.

• Strategic joint venture with Banco Macro aims to accelerate growth and expand Personal Pay's product offering.

Financial highlights

• Consolidated EBITDA increased by 132% in nominal terms versus 2024, with a nominal EBITDA margin of 31.7% and IAS 29 adjusted margin at 30.3%.

• FY25 revenues reached US$5.7 billion, up 43% year-over-year, with adjusted EBITDA at US$1.7 billion.

• CapEx reached approximately $1.0 billion, an 88% increase year-over-year, focused on FTTH and 5G expansion.

• Free cash flow before dividends and interest was over $0.6 billion, up $0.2 billion year-over-year.

• Net financial debt rose 40.2% to P$4,650,085 million, mainly due to TMA acquisition financing.

Outlook and guidance

• Continued focus on expanding FTTH and 5G networks, with the largest FTTH rollout since the Telecom-Cablevisión merger and 98% 4G population coverage.

• Ongoing cost efficiency initiatives and margin expansion targeted for both Telecom and TMA.

• Strategic alliance with Banco Macro to expand fintech services, subject to regulatory approval.