Telecom Argentina (TEO) Q2 2024 earnings summary

Executive summary

• EBITDA margin for the first half of 2024 reached 29.7%, reflecting effective cost management and pricing strategies amid a challenging macroeconomic environment.

• Net income for H1 2024 was ARS 859 billion, mainly due to real exchange gains from peso appreciation impacting USD-denominated debt.

• Mobile subscriber base in Argentina grew to 21.2 million, with data usage up 18% year-over-year.

• Fintech business Personal Pay reached nearly 3 million clients, ranking #2 in Argentina by remunerated account balances.

• Pay TV Flow unique customers increased 11% year-over-year.

Financial highlights

• Revenues for H1 2024 totaled almost $1.83 billion; in constant pesos, revenues decreased 13% year-over-year but grew 5.6% quarter-over-quarter.

• EBITDA for H1 2024 was $543 million, with margin up 1.3 percentage points year-over-year.

• Net debt as of June 2024 was $2.4 billion, with a net debt/EBITDA ratio of 2.2x.

• Free cash flow for H1 2024 was $151 million.

• Cash and equivalents: $411 million as of June 2024.

Outlook and guidance

• July and August 2024 continued the positive trend, with company sizing initiatives underway for 2025 competitiveness.

• Targeting deployment of 200 new 5G sites in the 3.5 GHz band by year-end.

• Continued emphasis on cost control and pricing strategies to offset inflationary pressures.

• Inflation is expected to stabilize at 2–3% monthly, supporting margin normalization.

• Cautious optimism for the remainder of 2024, with low delinquency rates and increased prepaid usage as positive indicators.