Telecom Argentina (TEO) Q3 2025 earnings summary

Executive summary

• Consolidated revenues reached ARS 5.6 trillion (P$5,622,561 million), up nearly 50% year-over-year, driven by the acquisition of TMA and strong performance in mobile, broadband, and pay TV segments.

• EBITDA margin improved to 30.5% in constant currency, with further improvement to 32.6% excluding TMA severance charges, and significant productivity gains across segments.

• Net loss of ARS 272 billion (P$272,543 million) was recorded, compared to net income of ARS 1.25 trillion in the prior year, mainly due to FX losses and higher financial costs.

• Free cash flow before dividends and interest was $400 million, up by over $150 million year-over-year, supporting ongoing dividend payments.

• Dividend payment of $150 million announced for 2025, with $130 million in kind and $20 million in cash.

Financial highlights

• Service revenues grew 4% year-over-year excluding TMA, and over 50% including TMA's contribution.

• EBITDA increased 123% nominally, with a margin of 30.5% in constant currency and 31.4% in nominal terms.

• Net financial debt was P$4,433,988 million as of September 2025, up 44.3% from December 2024, mainly due to TMA acquisition financing.

• CAPEX totaled $615 million (P$989,760 million), a 73% real increase, focused on network expansion, FTTH, and 5G infrastructure.

• Free cash flow for 9M25 was US$402 million, a significant increase from US$254 million in 9M24.

Outlook and guidance

• Continued focus on operational efficiency, digital transformation, and expanding the service ecosystem.

• Ongoing investment in network infrastructure, 4G/5G coverage, and customer experience enhancements.

• Anticipated growth in broadband and pay TV in Uruguay and Paraguay, with further scaling of fintech platform Personal Pay.