Telecom Argentina (TEO) Q3 2024 earnings summary

Executive summary

• EBITDA margin held steady at 28.8% for 9M24, reflecting effective cost management and stable service revenues in a high-inflation environment.

• Net income reached 951,912 million pesos, mainly due to exchange rate gains and positive financial results.

• Mobile and Pay TV customer bases grew, while broadband remained stable or declined slightly; fintech Personal Pay saw rapid expansion to 3.3 million clients.

• Resilient business model enabled strong recovery of top-line figures in US dollars despite FX volatility and inflation.

• Consolidated revenues for 9M24 were between 2,852,341 and 3,185,094 million pesos, with service revenues showing sequential recovery in 3Q24.

Financial highlights

• Revenues for 9M24 were 3,185,094 million pesos, up 225% year-over-year on an inflation-adjusted basis.

• EBITDA for 9M24 was 822,296 million pesos, down 10% year-over-year, with margin stable at 28.8%.

• Net income for 9M24 was 951,912 million pesos, a 285% increase compared to 9M23.

• Free cash flow for 9M24 was US$248 million, up from US$71 million in 9M23.

• Net financial debt decreased 37.6% in real terms vs. December 2023, to 2,325,294 million pesos.

Outlook and guidance

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

• Service revenues are showing a trend of real-term recovery, with sequential growth in 2Q24 and 3Q24.

• Investments focus on expanding cable TV, internet, and 4G/5G networks, with 98% 4G population coverage and ongoing 5G rollout.

• Continued focus on extending debt maturity profile and maintaining strong cash position.