20 slides from Telecom Argentina Sa Class B's earnings presentation, November 2024
Slide 1: Telecom Argentina 9M24 & 3Q24 Earnings Release
Telecom Argentina 9M24 & 3Q24 Earnings Release November 2024
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 9M24 operational and financial highlights
OVERVIEW OF OUR 9M24 | Operational and Financial highlights 3 EBITDA MARGIN MOBILE PERSONAL PAY 28.8% ⇧ 3% y/y 3.3 MM Remained stable vs 9M23 Data Usage ⇧ 16% y/y onboarded clients thanks to the positive trend in service reaching 7 GBOU/month #2 Fintech in Argentina revenues ⇧ 0.6% Q/Q increase in c
Slide 5: 9M24 in Figures
9M24 IN FIGURES 4 REVENUES EBITDA EBITDA MARGIN 2.9 0.8 28.8% US$ BN* US$ BN* 21.4 3.4 Million mobile Million pay TV subscribers in Argentina subscribers1 4.0 2.7 Million fixed voice Million broadband subscribers2 subscribers 2.5 116 Million mobile Thousand pay TV subscribers in Paraguay subscribers
Slide 6: Pricing Strategy
PRICING STRATEGY 5 Monthly inflation and price adjustments ARPU evolution per segment* dynamic 30.0% 5.89 25.0% 5.62 Mobile ARPU 3.78 evolution in US$ 20.0% 9M23 FY23 9M24 15.0% 10.0% 19.22 Broadband ARPU 16.28 evolution in US$ 10.73 5.0% 9M23 FY23 9M24 0.0% sep-23 oct-23 nov-23 dec-23 jan-24 feb-24
Slide 7: Business Evolution in Argentina
BUSINESS EVOLUTION IN ARGENTINA | Accesses (in thousands) 6 Δ% Q/Q suscribers trend Prepaid Postpaid Δ% Y/Y Total mobile subs. MOBILE 12,597 13,227 1.2% 1.0% 8,160 8,197 +5.0% 0.6% 0.8% Increase in total mobile subscribers Prepaid 0.2% with a strong prepaid performance, with lower growth in postpaid
Slide 8: Revenues Breakdown
REVENUES BREAKDOWN 7 SERVICE REVENUES REVENUES BREAKDOWN REVENUES COMPOSITION Million of P$ Billion of P$ Mobile 9M24 IAS 29 3Q24 IAS 29 Δ Y/Y Δ Q/Q HISTORICAL FIGURES (MODELING PURPOSES) 40.5% 9M23 IAS 29 2Q24 IAS 29 230% Other 30 11 Other +13% 9 +11% 1.1% 27 Handsets 2,239,834 6.0% 170 64 Broadban
Slide 9: Regional Operations: Paraguay key figures
REGIONAL OPERATIONS 8 Paraguay key figures REVENUES EBITDA* EBITDA Mg 2,1% 4,9% 50% 149 152 73 76 Net debt to EBITDA 3Q23 3Q24 -0.15x 3Q23 3Q24 Paraguay SUSCRIBERS* Mobile: 2.5M (+5%) Pay TV: 112k Pay: 276k Broadband: 306k (+16%) (+7%) (-2%) OUR DIGITAL WALLET A relevant player in the market with hi
Slide 10: Financial Highlights
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) 30.8% -10% 29.6% 28.8% 28.8% 1.2 35. 0% 30. 0% 3,185,094 2,852,341 1 +225% 822,296 25. 0% 918,826 0.8
Slide 11: IAS 29 EBITDA 9M23 – 9M24
IAS 29 EBITDA 9M 23 – 9M24 10 IFRS, Million of P$ Y/Y Variation 970000 960000 -P$96,530 (-11%) 200% 950000 940000 930000 25,969 920000 910000 17,220 900000 890000 880000 22,769 870000 860000 37,359 850000 840000 830000 820000 7,776 810000 71,916 800000 790000 780000 150% 770000 760000 750000 740000
Slide 12: Consolidated Results
CONSOLIDATED RESULTS 11 OPERATING INCOME (LOSS) NET INCOME IFRS, Million of P$ IFRS, Million of P$ HISTORICAL FIGURES INFLATION ADJUSTED FIGURES HISTORICAL FIGURES INFLATION ADJUSTED FIGURES (MODELING PURPOSES) (MODELING PURPOSES) IAS 29 Adjustment 951,912 +285% (225,058) (212,190) 263,157 9M23 9M24
Slide 13: 9M24 Capex Highlights
9M24 CAPEX 12 HIGHLIGHTS CAPEX* -18.2% Million of P$ 64 new sites were deployed and another 1,004 sites were upgraded. 454,917 372,002 9M23 IAS 29 9M24 IAS 29 We expanded our FTTH network over 8,827 new blocks. US$ MM** 421 383 % over Revenues 14.3% 13.0% Upstream capacity in the HFC network TECHNIC
Slide 14: Cash Flow: FCF Generation
CASH FLOW 13 FCF GENERATION 9M23 FCF GENERATION 9M24 Million of P$ Million of P$ 918,826 822,296 128,583 592,492 586,046 6,446 454,917 372,002 246,967 240,315 203,327 6,652 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF US$ 850 - 421 71 500 -6 494 847 - 383 -210
Slide 15: Key Figures
KEY FIGURES 14 In US$ Million1 LTM3Q24 FY23 Revenues 3,934 2,547 EBITDA 1,104 717 CAPEX3 918 598 Gross Debt2 2,744 2,632 Cash & Equivalents 348 344 Net Debt2 2,396 2,288 EBITDA-CAPEX3 186 119 Ratios LTM3Q24 FY23 EBITDA Margin 28.1% 28.1% Interest Coverage 9.35 9.91 Gross Debt / EBITDA4 2.49 3.67 Net
Slide 16: Main Impacts in Our Figures and Debt
MAIN IMPACTS IN OUR FIGURES AND DEBT 15 ARGENTINA MACRO FY23 1Q24 1H24 9M24 EVOLUTION OF OUR FIGURES FX VS. INFLATION Real appreciation during 9M24 Resiliency to FX Risk EBITDA* Million of US$ 971 1,087 1,104 717 Jan Apr Jun Sep Dec Mar Jun Sep FX Inflation FY23 LTM1Q24 LTM2Q24 LTM3Q24 • During Dece
Slide 17: Substantial Improvement of Our Maturity Profile with Latest Transactions
SUBSTANTIAL IMPROVEMENT OF OUR MATURY PROFILE WITH OUR LATEST TRANSACTIONS 16 SUCCESSFUL LOCAL ISSUANCES Through these transactions, we were able to Extend the average life of our maturity profile From June to August DATE OF ISSUANCE Class 20 and Additionals & Class 22 Denomination TEO AVERAGE COST
Slide 18: Debt Maturity Profile
DEBT MATURITY PROFILE | Principal payments 17 Breakdown by instrument* 2024 2025 2026 2027 ≥2028 Total (U$S million) Class 1 Notes 2026 283 283 Cross-Border Notes Class 5 Notes 2025 112 112 Class 21 Notes 2031 617 617 Vendor Financing 2 4 1 7 We cover over 50% of IFC 2022 34 9 43 our consolidated de
Slide 19: Final Remarks
FINAL REMARKS 18 1 EBITDA Margin Stable EBITDA Margin in a challenging context. 1 Rightsizing our Operation 28.8% 28.8% We managed to grow our customer base in mobile and Pay TV, while broadband remained stable in a very competitive environment 9M23 9M24 2 Recovery of figures in US$* Our fintech, Pe
Slide 20: telecom | personal | flow
telecom | personal | flow “~~