Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Q1 2023 Earnings Presentation
20 slides from Telecom Argentina Sa Class B's earnings presentation, May 2023
Slide 1: Telecom Argentina 1Q23 Earnings Release
Telecom Argentina 1Q23 Earnings Release May 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 1Q23: Operational and Financial highlights
OVERVIEW OF OUR 1Q23 | Operational and Financial highlights 3 Our EBITDA Margin during 1Q23 was 30.3%. While Our mobile subscriber base continues to grow, with a we continue to observe pressure from labor cost, we strong postpaid performance. Mobile data usage successfully contained increases in oth
Slide 5: 1Q23 in Figures
1Q23 IN FIGURES 4 REVENUES EBITDA EBITDA MARGIN 1.0 0.3 30.3% U$S BN* U$S BN* 20.5 3.4 4.1 Million mobile Million pay TV Million broadband subscribers in Argentina subscribers subscribers 3.0 2.3 49% Million fixed Million convergent of broadband clients subscribers * * unique clients are also mobile
Slide 6: Inflation Evolution
INFLATION EVOLUTION 5 Weighing within the index Food and non-alcoholic beverages 26.9% Transport 11.0% 1Q23 Inflation: Clothes and Shoes 9.9% 21.7% Housing water, electricity and other fuels 9.4% Restaurants and hotels 9.0% Mar-23 Inflation: Healthcare 8.0% 7.7% Recreation and culture 7.3% Home furn
Slide 7: Price Increases During 2023
PRICE INCREASES DURING 2023 6 MOBILE JAN-23 MAR-23 APR-23 MAY-23 Postpaid Mobile +18% +9% +3% Up to 8% Prepaid Mobile +17% +14% +3% +5% PAY TV JAN-23 MAR-23 MAY-23 Pay TV subscription Up to 19% Up to 13% +5% services Additional services Up to 19% Up to 13% Up to 7% BROADBAND JAN-23 MAR-23 MAY-23 Bro
Slide 8: Business Evolution in Argentina: Accesses
BUSINESS EVOLUTION IN ARGENTINA | Accesses (in thousands) 7 Prepaid Postpaid D YoY MOBILE 11,851 11,926 8,311 8,557 +0.6% Increase in postpaid and Prepaid prepaid segments +3% 1Q22 1Q23 Postpaid 4,238 4,082 BROADBAND Growth in FTTH accesses, partially offsetting reduction in xDSL HFC -3.7% client ba
Slide 9: Revenues Breakdown
REVENUES BREAKDOWN 8 SERVICE REVENUES REVENUE BREAKDOWN REVENUES COMPOSITION Million of P$ Other Billion of P$ Handsets D YoY 0.8% 6.5% -10% Fixed & Data Other 2.0 1.7 -11% 11.4% Mobile 40.8% 223,456 Handsets 16.3 14.0 -14% 200,782 Pay TV 18.6% Fixed & Data 30.3 24.5 -19% 1Q22 IAS 29 1Q23 IAS 29 Bro
Slide 10: Mobile & Broadband
MOBILE & BROADBAND 9 POSITIVE POSTPAID CLIENTS INFLOW (1Q23) MOBILE DATA USAGE In Thousand / Source: ADB GBOU/ Month +12.3% Peer 1 Personal Peer 2 1°Place 6 42% 33 63 44 Postpaid 6 17 -3 Share of -5 -15 Total Mobile 5.6 -38 -50 Peer 1: +2 Personal: -1 Clients 5.0 -58 Peer 2: -2 1Q22 2Q22 3Q22 4Q22 1
Slide 11: Paraguay
PARAGUAY 10 REVENUES EBITDA REVENUES BREAKDOWN Million of U$S Million of U$S Broadband -4% 20% Others 11% Pay TV 8% 67,5% Núcleo (Paraguay) 52 50 24 24 Mobile 1Q22 1Q23 1Q22 1Q23 61% SUBSCRIBERS FIXED NETWORK INTERNET SUBSCRIBERS (As of March-23) CAPACITY (In thousands) (Thousands homes passed) +17%
Slide 12: Personal Pay Highlights & New Features
PERSONAL PAY 11 HIGHLIGHTS & NEW FEATURES ONBOARDED CLIENTS The best Fintech for our customers without consuming mobile data 955,358 X12 Benefits in strategic shops 15% are clients from other Interest remuneration on our clients' telco operators account balance 76,209 Client loyalty program Mar-22 M
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS 12 REVENUES EBITDA Million of P$ Million of P$ HISTORICAL FIGURES (MODELING INFLATION ADJUSTED FIGURES HISTORICAL FIGURES (MODELING INFLATION ADJ. FIGURES PURPOSES) PURPOSES) 35.8% 34.7% -10% 1.2 40. 0% 30.7% +81% 30.3% 35. 0% 1 239,787 214,818 0.8 30. 0% 83,130 25. 0% 14,510 0.
Slide 14: EBITDA 1Q22 – 1Q23
IAS 29 EBITDA 1Q22 – 1Q23 13 IFRS, Million of P$ YoY Variation 90000 -P$18,084 (-22%) 200% 80000 920 25 150% 3,000 70000 2,192 1,794 609 60000 417 2,312 2,295 100% 50000 22,674 40000 83,130 50% 30000 65,046 -10% 4% -2% 0% -10% -5% -20% -13% 20000 -14% -19% 0% 10000 0 -50% EBITDA 1Q22 Ss. Revenues Ha
Slide 15: Consolidated Results
CONSOLIDATED RESULTS 14 OPERATING INCOME NET (LOSS) INCOME IFRS, Million of P$, Percentage IFRS, Million of P$, Percentage HISTORICAL FIGURES INFLATION ADJUSTED HISTORICAL FIGURES INFLATION ADJUSTED (MODELING PURPOSES) FIGURES (MODELING PURPOSES) FIGURES IAS 29 Adjustment +69% 42,788 48,510 25,383 2
Slide 16: 1Q23 Capex
1Q23 CAPEX 15 CAPEX* HIGHLIGHTS Million of P$ -24.2% 21 new sites were deployed, 361 sites 33,782 were upgraded and another 52 25,374 are under construction 1Q22 IAS 29 1Q23 IAS 29 We expanded our FTTH network over U$S MM** 149 121 2,200 new blocks. TECHNICAL CAPEX BREAKDOWN Upstream capacity in the
Slide 17: Cash Flow: FCF Generation
CASH FLOW 16 FCF GENERATION 1Q22 FCF GENERATION 1Q23 Million of P$ Million of P$ 83,130 65,046 34,894 34,602 33,782 25,374 4,778 292 30,085 28,612 19,263 1,473 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF U$S 367 -149 -85 133 -6 126 311 -121 -23 167 -1 166 MM**
Slide 18: Key Figures
KEY FIGURES 17 In U$S Million* LTM1Q23 FY22 Revenues 4,127 4,116 EBITDA 1,081 1,131 CAPEX 695 713 Gross Debt*** 2,727 2,648 Cash & Equivalents 440 275 Net Debt*** 2,287 2,373 EBITDA-Capex** 385 419 Ratios LTM1Q23 FY22 EBITDA Margin 26.2% 27.5% Interest Coverage 12.1 15.2 Gross Debt / EBITDA 2.52 2.3
Slide 19: Debt Maturity Profile
DEBT MATURITY PROFILE 18 Breakdown by Instrument* 2023 2024 2025 2026 >=2027 Total (U$S million) Class 1 Notes 2026 400 400 Class 5 Notes 2025 117 128 132 377 IFC 2016 10 31 31 25 7 103 IFC 2019 44 82 38 164 IFC 2022 17 34 34 101 185 IDB Loan 60 60 48 12 181 IIC Loan 17 17 35 Vendor Financing 21 16
Slide 20: telecom | personal | flow
telecom | personal | flow “~~