Telecom Argentina (TEO) Q4 2024 earnings summary

Executive summary

• FY24 revenues reached US$4.0 billion, up 57% YoY in US$ terms, but down 7.7% in constant currency; adjusted EBITDA was US$1.1 billion with a 28.2% margin.

• Net income improved to P$1,033,252 million in FY24, reversing a prior year loss, mainly due to exchange gains.

• Mobile subscribers grew 3.0% YoY to 21.6 million, Pay TV increased 2% to 3.2 million, broadband base stable at 4.0 million.

• Personal Pay fintech onboarded 3.6 million clients (+80% YoY), ranking #2 in Argentina by balances.

• Achieved main objectives despite high inflation, FX restrictions, and social instability, focusing on profitability and customer retention.

Financial highlights

• Revenues increased 57% YoY in US$ terms, but declined 7.7% in constant currency; service revenues in 4Q24 grew 2.6% YoY.

• Adjusted EBITDA margin stable at 28.2%; EBITDA of US$1.1 billion.

• Net income improved to P$1,033,252 million, reversing a P$543.7 million loss in FY23.

• Free cash flow reached US$404 million, up from US$193 million in FY23.

• CAPEX was US$552 million (14% of revenue) and P$806,649 million (19.5% of revenues), focused on network expansion.

Outlook and guidance

• Management expects macroeconomic normalization and inflation reduction, with focus on cost control and operational efficiency.

• Plans to expand 4G/5G coverage, improve broadband speeds, and invest in digital innovation.

• Ongoing investment in network modernization and digital transformation.

• Plans to further extend debt maturities and maintain strong cash position.