Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — FY2024 Earnings Presentation
19 slides from Telecom Argentina Sa Class B's earnings presentation, February 2025
Slide 1: Telecom Argentina FY24 & 4Q24 Earnings Release
Telecom Argentina FY24 & 4Q24 Earnings Release February 2025
Slide 2: Disclaimer
DISCLAIMER 1 This presentation does not constitute an offer to sell or the solicitation of any offer to buy any securities of Telecom Argentina S.A. (the “Company”), in any jurisdiction. Securities may not be offered or sold in the United States absent registration with the U.S. Securities Exchange
Slide 3: Disclaimer
DISCLAIMER 2 Many factors could cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by forward-looking statements. These factors include, among others: (i) the Company’s abil
Slide 4: Overview of our 2024: Operational and Financial highlights
OVERVIEW OF OUR 2024 | Operational and Financial highlights 3 FY REVENUES MOBILE PERSONAL PAY 12% 6% 1% Mobile Services Internet Services 21.6 | 2.6 3.6 MM Market Million subscribers US$ Pay TV Leader in onboarded clients 41% ⇧ 3.0%y/y | ⇧ 10.6%y/y #2 Fintech in Argentina 15% 4.0 BN Fixed & Data Mob
Slide 5: Main objectives achieved for 2024
MAIN OBJECTIVES ACHIEVED FOR 2024 4 OBJECTIVES CHALLENGES ACHIEVEMENTS • Maintaining profitability EXTERNAL FACTORS: • Macroeconomic normalization • Inflation surge: process • Pricing above inflation (25% in Dec / 20% in Jan) • Inflation reduction through effective • Retaining customer base despite
Slide 6: Pricing Strategy: monthly inflation and price adjustments
PRICING STRATEGY 5 Monthly inflation and price adjustments ARPU evolution per segment* dynamic 30.0% 25.0% 5.2 5.8 Mobile ARPU 3.8 evolution in US$ 20.0% FY23 1H24 FY24 15.0% 10.0% 19.8 Broadband ARPU 17.6 10.7 5.0% evolution in US$ FY23 1H24 FY24 0.0% dec-23 jan-24 feb-24 mar-24 apr-24 may-24 jun-2
Slide 7: Business evolution in Argentina: accesses
BUSINESS EVOLUTION IN ARGENTINA | Accesses (in thousands) 6 Δ% Q/Q suscribers trend Prepaid Postpaid Δ% Y/Y Total mobile subs. MOBILE 12,860 13,405 1.2% 1.0% 0.9% 8,144 8,220 +4.2% 0.8% Increase in total mobile subscribers Prepaid with a strong prepaid performance, 0.2% with continued growth in post
Slide 8: Revenues Breakdown
REVENUES BREAKDOWN 7 SERVICE REVENUES REVENUES BREAKDOWN REVENUES COMPOSITION Million of P$ Billion of P$ Mobile FY24 IAS 29 4Q24 IAS 29 Δ Y/Y Δ Q/Q HISTORICAL FIGURES (MODELING PURPOSES) 40.6% FY23 IAS 29 4Q23 IAS 29 206% Other 46 14 Other 42 +11% 13 +8% 1.1% Handsets 6.1% 254 70 3,201,370 Broadban
Slide 9: Regional Operations: Paraguay key figures
REGIONAL OPERATIONS 8 Paraguay key figures REVENUES EBITDA* 1,5% 4,6% EBITDA Mg 50% 200 203 98 102 Net debt to EBITDA 4Q23 FY23 4Q24 FY24 4Q23 FY23 4Q24 FY24 0.1x Paraguay SUSCRIBERS* Mobile: 2.6M (+11%) Pay TV: 112k Pay: 943k Broadband: 313k (+14%) (+6%) Onboarded Users OUR DIGITAL WALLET A relevan
Slide 10: Financial Highlights: Revenues and EBITDA
FINANCIAL HIGHLIGHTS 9 REVENUES EBITDA Million of P$ Million of P$ HISTORICAL FIGURES INFLATION ADJUSTED FIGURES HISTORICAL FIGURES INFLATION ADJUSTED FIGURES (MODELING PURPOSES) (MODELING PURPOSES) -8% 29.1% 29.7% 28.1% 28.2% 1.2 35. 0% 30. 0% 4,483,972 4,137,596 1 +202% 25. 0% 723,877 0.8 1,261,71
Slide 11: IAS 29 EBITDA FY23 – FY24
IAS 29 EBITDA FY23 – FY24 10 IFRS, Million of P$ Y/Y Variation 1330000 1320000 -P$96,837 (-7,7%) 200% 18,130 1310000 1300000 13,964 1290000 1280000 1270000 18,856 1260000 30,401 1250000 1240000 1230000 1220000 13,860 1210000 96,556 1200000 1190000 1180000 1170000 1160000 1150000 1140000 1130000 1120
Slide 12: Consolidated Results: Operating Income and Net Income
CONSOLIDATED RESULTS 11 OPERATING INCOME (LOSS) NET INCOME IFRS, Million of P$ IFRS, Million of P$ HISTORICAL FIGURES INFLATION ADJUSTED FIGURES HISTORICAL FIGURES INFLATION ADJUSTED FIGURES (MODELING PURPOSES) (MODELING PURPOSES) 1,033,252 IAS 29 Adjustment (543,727) +243% (214,719) (956,272) 788,4
Slide 13: FY24 Capex Highlights
FY24 CAPEX 12 HIGHLIGHTS CAPEX* -45.9% Million of P$ 120 new sites were deployed and another 1,949 sites were upgraded. 1,052,229 569,265 FY23 IAS 29 FY24 IAS 29 We expanded our FTTH network over 14,000 new blocks. US$ MM** 598 552 % over Revenues 23.5% 13.8% Upstream capacity in the HFC network TEC
Slide 14: Cash Flow and FCF Generation
CASH FLOW 13 FCF GENERATION FY23 FCF Generation FY23 FCF GENERATION FY24 Million of P$ 717 (ex-5G spectrum) in US$ Million of P$ 407 401 1,261,714 6 383 74 1,164,877 EBITDA CAPEX WK & OFCF Taxes FCF * Others 569,265 182,120 391,605 423,854 380,453 416,478 11,152 7,376 171,758 1,052,229 EBITDA CAPEX
Slide 15: Key Figures
KEY FIGURES 14 In US$ Million1 FY24 FY23 Revenues 4,009 2,547 EBITDA 1,129 717 CAPEX3 552 598 Gross Debt2 2,789 2,632 Cash & Equivalents 308 344 Net Debt2 2,447 2,288 EBITDA-CAPEX3 577 119 Ratios FY24 FY23 EBITDA Margin 28.2% 28.1% Interest Coverage 8.82 9.91 Gross Debt / EBITDA4 2.47 3.67 Net Debt
Slide 16: Substantial improvement of our maturity profile with latest transactions
SUBSTANTIAL IMPROVEMENT OF OUR MATURY PROFILE WITH OUR LATEST TRANSACTIONS 15 SUCCESSFUL LOCAL ISSUANCES Through these transactions, we were able to Extend the average life of our maturity profile From June to November DATE OF ISSUANCE TEO AVERAGE COST OF DEBT* & 10 YEARS Class 20 and Additionals &
Slide 17: Debt Maturity Profile as of December 2024
DEBT MATURITY PROFILE AS OF DECEMBER 2024 | Annual Principal Payments 16 Breakdown by instrument* 2025 2026 2027 2028 2029 2030 2031 Total (U$S millions) Class 1 Notes 2026 163 163 Class 5 Notes 2025 112 112 Cross-Border Notes Class 21 Notes 2031 270 270 278 817 Vendor Financing 4 1 5 We cover over
Slide 18: Final Remarks - A year of achievements
FINAL REMARKS - A year of achievements 17 1 EBITDA Margin Stable EBITDA Margin in a challenging context. 1 30.0% (+1.8 p.p. excluding one-off effects) 28.1% 28.2% We managed to grow our customer base in mobile and Pay TV, while broadband remained stable in a very competitive environment FY23 FY24 2
Slide 19: telecom | personal | flow
telecom | personal | flow “~~