Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Q1 2025 Earnings Presentation
26 slides from Telecom Argentina Sa Class B's earnings presentation, May 2025
Slide 1: Telecom Argentina 1Q25 Earnings Release
Telecom Argentina 1Q25 Earnings Release May 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 of these factors are macroeconomic and regulatory in nature and therefore beyond the control of the Company’s management. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those describ
Slide 4: Overview of our 1Q25: Operational and Financial highlights
OVERVIEW OF OUR 1Q25 | Operational and Financial highlights 3 1Q25 REVENUES MERGER & ACQUISITIONS 6% Mobile Services 11% 1% Internet Services ACQUISITION OF TMA US$ Pay TV MARKET REPAIR TRANSACTION 1.3 BN 13% 46% Fixed & Data Handsets 3.4x EV/EBITDA as reported 24% Other NO IMPACT ON LEVERAGE AFTER
Slide 5: Acquisition of TMA
ACQUISITION OF TMA teleccm |
Slide 6: Transaction Rationale: Process towards acquisition of TMA
PROCESS TOWARDS ACQUISITION OF TMA 5 Transaction 1 Increased EBITDA Generation with Stable Leverage Rationale 2 Greater Synergies & Efficiencies to Increase Profitability • Efficiency plan to increase TMA profitability • Greater ability to carry out required investments, accelerating 5G and FTTH dep
Slide 7: Key Figures
1 KEY FIGURES 6 FY24 1Q25 1Q25 +61% +21% Consolidated Sum of the parts 2,444 REVENUES (US$ Million) 218 6,453 1,051 1,269 4,009 643 +23% +17% Sum of the parts Consolidated 265 EBITDA (US$ Million) 1,129 1,394 358 63 421 162 +41% Sum of the parts +14% Consolidated 225 777 20 144 165 66 CAPEX (US$ Mil
Slide 8: Efficiency Plan
2 EFFICIENCY PLAN 7 33% 28% EBITDA Mg as 11% 25% EBITDA Mg as reported 1Q25 | EBITDA Mg as EBITDA Mg as reported FY24 34% excluding reported FY24 reported 1Q25 TMA contribution TMA - Actions to improve margins • Elimination of management and brand fees •DONE TMA EBITDA Mg • Reduction of redundant mo
Slide 9: Creating the Most Competitive Telecom Company in Argentina
3 CREATING THE MOST COMPETITIVE TELECOM COMPANY IN ARGENTINA 8 MOBILE SHARE1 BROADBAND SHARE2 PAY TV SHARE3 Traditional Pay TV Broad Pay TV (+OTTs) Movistar Personal Personal 2% PRE Others 34% Others 34% Flow Flow 14% 42% ACQUISITION 54% Others 34% Movistar 62% Others Movistar 24% 13% Movistar 84% 5
Slide 10: Combined Strength in Complementary Mobile and Fixed Networks
4 MOBILE AND FIXED NETWORKS 9 Combined Strength in complementary Mobile and Fixed Networks Fixed network coverage TEO + TMA • Quadruple Play Operator, leader Only • Quadruple Play Operator with an in every market segment TEO important mobile customer base • State of the art and owned infrastructure
Slide 11: Regulatory Process
REGULATORY PROCESS 10 Formal response by Telecom to the request for additional Required Regulatory Approvals information issued by Expected Approval Period Post-Transaction the CNDC (6 to 12/14 Months Post-Transaction) Feb 24th Mar 3rd Mar 7th May 2nd Aug - 2025 Apr - 2026 >>>>>>>>>>>>>>>>>>> The co
Slide 12: Historical Mergers Involving Companies in Telecom's Group
HISTORICAL MERGERS INVOLVING COMPANIES IN TELECOM’S GROUP 11 Cablevisión Telecom Cablevisión Telecom & & & & Merger Fibertel Nextel Multicanal Cablevisión (2003) (2006-2007) (2006-2007) (2017-2018) Cable TV Mobile & Internet services operator Internet & cable TV service operator + Type + Mobile oper
Slide 13: Business Review
BUSINESS REVIEW teleccm |
Slide 14: Pricing Strategy
PRICING STRATEGY 13 SERVICE REVENUES EVOLUTION (P$ MM) ARPU EVOLUTION PER SEGMENT* Telecom consolidated figures Δ% Y/Y 6.5 +49% TEO, Excluding TMA +26% 1,285,482 6.4 TMA 1Q25 contribution Mobile ARPU +42% 218,734 4.5 evolution in US$ +5% 4.3 1,016,464 1,066,748 TMA TEO 21 +42% 1Q24 1Q25 +65% 14.8 19
Slide 15: …With a Positive Evolution of Subscriber Bases
2 …WITH A POSITIVE EVOLUTION OF SUBSCRIBER BASES 14 Combined Growth In thousands of accesses Δ% Y/Y Δ% Y/Y Prepaid Postpaid Machine-to-machine Prepaid Δ% Y/Y 12,963 13,112 accesses Postpaid 8,201 8,236 +1.1% 9,738 9,069 9,682 9,206 -0.6% +0.4% Prepaid Prepaid Prepaid MOBILE* 2,387 2,652 +0.4% +1.5%
Slide 16: Revenues Breakdown
REVENUES BREAKDOWN 15 SERVICE REVENUES REVENUES BREAKDOWN REVENUES COMPOSITION Million of P$ Billion of P$ Mobile Δ Y/Y Δ Y/Y CONSOLIDATED CONSOLIDATED 45.5% CONSOLIDATED INFLATION ADJUSTED HISTORICAL FIGURES FIGURES 15 5 (MODELING PURPOSES) Other Other +26% +11% 1.1% 12 4 +113% +26% Handsets 1,285,
Slide 17: Paraguay Key Figures
REGIONAL OPERATIONS 16 Paraguay key figures REVENUES EBITDA EBITDA Mg 51 50 26 27 53% Net debt to EBITDA 1Q24 1Q25 1Q24 1Q25 0.3x Paraguay SUSCRIBERS* Mobile: 2.6M (+12%) Pay TV: 112k Pay: 899k Broadband: 322k (+13%) (+4%) Onboarded Users OUR DIGITAL WALLET A relevant player in the market with high
Slide 18: Financial Highlights: Revenues and EBITDA
FINANCIAL HIGHLIGHTS 17 REVENUES EBITDA Million of P$ Million of P$ HISTORICAL FIGURES HISTORICAL FIGURES INFLATION ADJUSTED FIGURES INFLATION ADJUSTED FIGURES (MODELING PURPOSES) (MODELING PURPOSES) 32.8% 34.0% 33.1% 1.2 40. 0% +28% 1 30.3% 35. 0% +115% 1,363,353 451,948 30. 0% 0.8 1,934 25. 0% 38,
Slide 19: IAS 29 EBITDA 1Q24 – 1Q25
IAS 29 EBITDA 1Q24 – 1Q25 18 IFRS, Million of P$ Y/Y Variation +P$128,964 (+40%) 269,018 27,905 660000 2 650000 640000 630000 620000 610000 600000 19,805 590000 16,024 580000 570000 560000 550000 540000 40,752 5,155 530000 1.5 520000 510000 500000 15,922 490000 480000 13,420 470000 31,736 460000 25,
Slide 20: Consolidated Results: Operating Income and Net Income
CONSOLIDATED RESULTS 19 OPERATING INCOME (LOSS) NET INCOME IFRS, Million of P$ IFRS, Million of P$ HISTORICAL FIGURES INFLATION ADJUSTED FIGURES HISTORICAL FIGURES INFLATION ADJUSTED FIGURES (MODELING PURPOSES) (MODELING PURPOSES) IAS 29 Adjustment +128% 362,824 159,438 111,899 1,052,577 (40,771) (2
Slide 21: 1Q25 Capex
1Q25 CAPEX 20 HIGHLIGHTS CAPEX* Million of P$ +8% 24 new sites were deployed and another +37% 176,721 185 sites were upgraded. TEO, Excluding TMA 21,759 TMA 1Q25 70,531 contribution 163,209 154,962 51,394 We expanded our FTTH network over 1,900 1Q24 IAS 29 1Q25 IAS 29 1Q24 IAS 29 1Q25 IAS 29 new blo
Slide 22: Cash Flow: FCF Generation
CASH FLOW 21 FCF GENERATION 1Q24 FCF GENERATION 1Q25 Million of P$ Million of P$ 322,984 451,948 155,967 155,574 176,721 163,209 3,808 393 86,242 85,706 188,985 536 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF US$ 241 - 122 -3 117 -0 116 421 - 165 -176 80 -0 80
Slide 23: Key Figures
KEY FIGURES 22 In US$ Million1 LTM1Q25 FY24 EBITDA 1,768 Estimated proforma2 1,129 Gross Debt3 3,837 2,789 Cash & Equivalents 497 308 Net Debt3 3,340 2,447 Ratios LTM1Q25 FY24 Gross Debt / EBITDA4 2.17 Estimated Proforma2 2.47 Net Debt / EBITDA4,5 1.89 Estimated Proforma2 2.17 1: Figures of 2024 in
Slide 24: Debt Maturity Profile as of March 2025
DEBT MATURITY PROFILE AS OF MARCH 2025 | Annual Principal Payments 23 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 3 2 2 0 11 Finnvera 2
Slide 25: Final Remarks
FINAL REMARKS 24 Acquisition of TMA by TEO presents the opportunity to upgrade the connectivity in Argentina and ✓ upscale the operations of Telecom Market after the acquisition remains competitive in all relevant segments (Mobile, Broadband ✓ and Pay TV). ✓ The regulatory process is being conducted
Slide 26: telecom | personal | flow
telecom | personal | flow “~~