Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — H1 2023 Earnings Presentation
20 slides from Telecom Argentina Sa Class B's earnings presentation, August 2023
Slide 1: Telecom Argentina 1H23 & 2Q23 Earnings Release
Telecom Argentina 1H23 & 2Q23 Earnings Release August 2023 Best IR Team – Telecom (2022) - Telecom Argentina
Slide 2: Disclaimer
DISCLAIMER 1 This presentation may contain statements that could constitute forward-looking statements, including, but not limited to (i) the Company’s expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; (ii
Slide 3: Disclaimer
DISCLAIMER 2 The Company has accounted for the effects of inflation adjustment adopted by Resolution 777/18 of the Comisión Nacional de Valores (“CNV”), which establishes that the restatement for inflation will be applied to the annual financial statements, for intermediate and special periods ended
Slide 4: Overview of our 1H23: Operational and Financial highlights
OVERVIEW OF OUR 1H23 | Operational and Financial highlights 3 EBITDA MARGIN 1H23 28.4% MOBILE PERSONAL PAY 2Q23 1H23 Effective cost management ⇧ 3% y/y 1.2M Data Usage ⇧ 15% Onboarded clients CAPEX LTM U$S 655 MM 1H23 U$S 240 MM BROADBAND 5G 2Q23 vs 1Q23 1H23 CASH FLOW Δ>0 220 sites 1H23 FTTH outgre
Slide 5: 1H23 in Figures
1H23 IN FIGURES 4 REVENUES EBITDA EBITDA MARGIN 2.0 0.6 28.4% U$S BN* U$S BN* 20.6 3.4 4.1 Million mobile Million pay TV Million broadband subscribers in Argentina subscribers subscribers 2.9 2.3 48% Million fixed Million convergent of broadband clients subscribers * * unique clients are also mobile
Slide 6: Price Increases Since 2Q23
PRICE INCREASES SINCE 2Q23 5 MOBILE APR-23 MAY-23 JUN-23 JUL-23 AUG-23 INFLATION Postpaid Mobile +3% Up to 8% Up to 8% +8% +8% 1H23: 50.7% June y/y: 115.6% Prepaid Mobile +3% +5% Up to 7% +8% +8% PAY TV MAY-23 JUN-23 JUL-23 AUG-23 SERVICE REVENUES Δ% YoY Pay TV subscription +5% +8% +8% +8% 115.6% se
Slide 7: Business Evolution in Argentina: Accesses
BUSINESS EVOLUTION IN ARGENTINA | Accesses (in thousands) 6 Prepaid Postpaid D YoY MOBILE 11,694 12,391 8,368 8,244 +6.0% Increase in total mobile Prepaid subscribers -1.5% 2Q22 2Q23 Postpaid 4,228 4,084 BROADBAND Growth in FTTH accesses, partially offsetting reduction in xDSL HFC -3.4% client base
Slide 8: Revenues Breakdown
REVENUES BREAKDOWN 7 SERVICE REVENUES REVENUE BREAKDOWN REVENUES COMPOSITION Million of P$ Other Billion of P$ Handsets D YoY HISTORICAL FIGURES (MODELING 0.8% 7.4% PURPOSES) Fixed & Data Other 5 4 -14% -87% 11.6% Mobile 40.5% Handsets 37 38 +4% 403,844 Pay TV 18.3% 216,339 Fixed & Data 60 72 -16% 1
Slide 9: Mobile & Broadband
MOBILE & BROADBAND 8 POSITIVE POSTPAID CLIENTS INFLOW (2Q23) MOBILE DATA USAGE In Thousand / Source: ADB GBOU/ Month +15% Peer 1 Personal Peer 2 1°Place 6 63 40% 44 Postpaid 17 8 Share of -5 -3 -15 Peer 1: +2 Personal: -1 -7 -3 Total Mobile 4.8 5.5 -50 Clients -58 Peer 2: -2 2Q22 3Q22 4Q22 1Q23 2Q23
Slide 10: Paraguay
PARAGUAY 9 REVENUES EBITDA REVENUES BREAKDOWN Million of U$S Million of U$S Broadband -2% 21% Others 11% Pay TV 8% 67,5% Núcleo (Paraguay) 104 102 50 49 Mobile 1H22 1H23 1H22 1H23 60% SUBSCRIBERS FIXED NETWORK INTERNET SUBSCRIBERS (As of June-23) CAPACITY (In thousands) (Thousands homes passed) +14%
Slide 11: Personal Pay: Highlights & New Features
PERSONAL PAY 10 HIGHLIGHTS & NEW FEATURES ONBOARDED CLIENTS The best Fintech for our customers X5 without consuming mobile data 1,196,973 Benefits in strategic shops 19% are clients from other #1 Fintech in customers’ account balance telco operators remuneration 234,958 Client loyalty program – new
Slide 12: Financial Highlights
FINANCIAL HIGHLIGHTS 11 REVENUES EBITDA Million of P$ Million of P$ HISTORICAL FIGURES (MODELING INFLATION ADJUSTED FIGURES HISTORICAL FIGURES (MODELING INFLATION ADJ. FIGURES PURPOSES) PURPOSES) 31.2% 30.6% -9% 29.0% 28.4% 1.2 35. 0% +88% 570,376 517,253 1 30. 0% 25. 0% 174,288 146,764 0.8 200 ,000
Slide 13: IAS 29 EBITDA 1H22 – 1H23
IAS 29 EBITDA 1H22 – 1H23 12 IFRS, Million of P$ YoY Variation 190000 -P$27.524 (-16%) 200% 180000 170000 5,398 160000 6,694 2,316 150% 150000 6,179 1,901 330 3,989 1,349 140000 130000 120000 110000 1,208 100% 100000 54,472 174,288 90000 80000 146,764 50% 70000 -10% 4% 5% 60000 -5% -3% -1% -9% -19%
Slide 14: Evolution of Official FX Rate, Inflation and Salaries
EVOLUTION OF OFFICIAL FX RATE, INFLATION AND SALARIES 13 Official FX & Inflation (2021-1H23) Official FX real appreciation Dec-20 = 100 Inflation Official FX 2021 2022 2023 Avg. Salary & Inflation Avg. Salary & Inflation (2018-2020) (2021-1H23) Compound monthly growth Compound monthly growth rate of
Slide 15: Consolidated Results
CONSOLIDATED RESULTS 14 OPERATING INCOME (LOSS) NET (LOSS) INCOME IFRS, Million of P$, Percentage IFRS, Million of P$, Percentage HISTORICAL FIGURES INFLATION ADJUSTED HISTORICAL FIGURES INFLATION ADJUSTED (MODELING PURPOSES) FIGURES (MODELING PURPOSES) FIGURES IAS 29 Adjustment +69% 86,239 42,943 (
Slide 16: 1H23 Capex
1H23 CAPEX 15 CAPEX* HIGHLIGHTS Million of P$ -26.2% 51 new sites were deployed and another 83,415 702 sites were upgraded. 61,528 1H22 IAS 29 1H23 IAS 29 We expanded our FTTH network over U$S MM** 309 240 6,454 new blocks. TECHNICAL CAPEX BREAKDOWN Upstream capacity in the HFC network was improved
Slide 17: Cash Flow
CASH FLOW 16 FCF GENERATION 1H22 FCF GENERATION 1H23 Million of P$ Million of P$ 174,288 146,764 76,964 79,870 78,970 83,414 61,528 69,184 5,366 900 13,909 7,780 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF U$S 646 -309 -52 285 -29 256 572 -240 -21 311 -4 308 M
Slide 18: Key Figures
KEY FIGURES 17 In U$S Million* LTM1H23 FY22 Revenues 4,073 4,116 EBITDA 1,068 1,131 CAPEX 655 713 Gross Debt*** 2,733 2,648 Cash & Equivalents 312 275 Net Debt*** 2,421 2,373 EBITDA-Capex** 413 419 Ratios LTM1H23 FY22 EBITDA Margin 26.2% 27.5% Interest Coverage 9.65 15.2 Gross Debt / EBITDA 2.56 2.3
Slide 19: Debt Maturity Profile
DEBT MATURITY PROFILE 18 2023 Breakdown by instrument* 2024 2025 2026 ≥2027 Total (U$S million) 3Q23 4Q23 Class 1 Notes 2026 400 400 Class 5 Notes 2025 117 128 132 377 Vendor Financing 7 6 16 9 3 41 IFC 2016 10 31 31 25 7 103 IFC 2019 44 82 38 164 IFC 2022 17 34 34 101 185 IIC Loan 9 17 26 Finnvera
Slide 20: telecom | personal | flow
telecom | personal | flow “~~