Telecom Argentina (TEO) Q2 2025 earnings summary

Executive summary

• EBITDA margin improved to 30.0% in 1H25, with strong cost management and pricing strategy amid challenging macroeconomic conditions.

• Consolidated revenues rose 44.4% year-over-year in 1H25 to P$3,357,004 million, driven by TMA consolidation and service revenue growth.

• Net income for 1H25 was P$1,197,930 million, reversing a net loss in 1H24, though another source reports a net loss of P$75,554 million due to financial losses.

• Mobile, broadband, and fintech segments maintained market leadership and subscriber growth, with digital wallet onboarding up 44% year-over-year.

• Regulatory approval process for TMA acquisition is ongoing, with all filings submitted and companies operating independently.

Financial highlights

• 1H25 consolidated revenues reached US$4,009 million, up 44% year-over-year; proforma revenues including TMA at US$6,332 million.

• Adjusted EBITDA was US$1,568 million, up 29% year-over-year; margin improved to 30.0%.

• Service revenues grew 44.2% year-over-year, with Telecom (ex-TMA) up 3.8% and TMA up 7.5%.

• CAPEX for 1H25 totaled US$399 million, up 54% year-over-year, focused on mobile and FTTH network expansion.

• Free cash flow for 1H25 was US$151 million, a significant improvement from US$48 million in 1H24.

Outlook and guidance

• Continued focus on operational efficiency, cost management, and network investments to sustain margin improvements and reinforce infrastructure.

• Regulatory approval for TMA acquisition expected within 6–14 months post-transaction, with integration synergies anticipated.

• Management expects proposed remedies to regulatory concerns over the TMA acquisition will not materially impact business or financial obligations under normal market conditions.