Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Q1 2024 Earnings Presentation
20 slides from Telecom Argentina Sa Class B's earnings presentation, May 2024
Slide 1: Telecom Argentina 1Q24 Earnings Release
Telecom Argentina 1Q24 Earnings Release May 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 1Q24: Operational and Financial highlights
OVERVIEW OF OUR 1Q24 | Operational and Financial highlights 3 EBITDA MARGIN MOBILE PERSONAL PAY 30.3% ⇧ 3% y/y +2.5 MM Effective cost management & pricing policy Data Usage ⇧ 21% y/y onboarded clients reaching 7 GBOU/month #2 Fintech in Argentina considering total remunerated CAPEX account balances
Slide 5: 1Q24 in Figures
1Q24 IN FIGURES 4 REVENUES EBITDA EBITDA MARGIN 0.80 0.24 30.3% U$S BN* U$S BN* 21.2 3.3 Million mobile Million pay TV subscribers in Argentina subscribers1 4.1 2.8 Million fixed voice Million broadband subscribers2 subscribers 2.4 116 Million mobile Thousand pay TV subscribers in Paraguay subscribe
Slide 6: Price increases since 1Q24 and service revenues
PRICE INCREASES SINCE 1Q24 5 Monthly price increases in line with inflation SERVICE REVENUES Δ% MOBILE Δ% Y/Y Service revenues -10.1% -16.3% Jan-24 Feb-24 Mar-24 Apr-24 350% Prepaid Postpaid 300% 250% 200% PAY TV 150% 100% 288% 50% 104% 0% 1Q23 1Q24 Jan-24 Feb-24 Mar-24 Apr-24 Pay TV subscription se
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 12,963 1.2% 1.2% MOBILE 11,926 8,557 8,201 +8.7% 0.7% 0.8% Increase in total mobile subscribers 0.6% Prepaid with a strong prepaid performance. -4.2% Total mobile subs. 1Q23 1Q24 Postpaid 1Q23
Slide 8: Revenues breakdown
REVENUES BREAKDOWN 7 SERVICE REVENUES REVENUES BREAKDOWN REVENUES COMPOSITION Million of P$ Billion of P$ Mobile Δ Y/Y HISTORICAL FIGURES (MODELING PURPOSES) 40.7% Other 8 7 +16% Other 214% 1.1% Handsets Handsets 32 54 -41% 4.7% 586,618 Broadband Fixed & 24.6% Fixed & Data 96 95 +1% 187,113 Data 14.
Slide 9: Regional operations: Paraguay key figures
REGIONAL OPERATIONS 8 Paraguay key figures REVENUES EBITDA EBITDA +6.2% +3.0% Margin 47% 50 53 24 25 Net debt to EBITDA 1Q23 1Q24 1Q23 1Q24 0.11x Paraguay SUSCRIBERS* billetera personal Mobile: 2.4M (+2%) Pay TV: 107k Fintech: 305k Broadband: 285k (+16%) (+11%) (+7%) Cybersecurity Chile Re-branded a
Slide 10: Our digital business ecosystem - B2B
OUR DIGITAL BUSINESS ECOSYSTEM 9 - B2B ~18% of total revenues Our Digital Wallet Projected to grow the coming years 2.5 million onboarded clients (+159% y/y) Connectivity High-speed broadband + P$ 170BN in clients’ remunerated Security account balance Cybersecurity solutions #2 Fintech in Argentina
Slide 11: Financial highlights: revenues and EBITDA
FINANCIAL HIGHLIGHTS 10 REVENUES EBITDA Million of P$ Million of P$ HISTORICAL FIGURES INFLATION ADJUSTED FIGURES HISTORICAL FIGURES INFLATION ADJUSTED FIGURES (MODELING PURPOSES) (MODELING PURPOSES) 32.8% 30.7% 30.3% 30.3% -18% 1.2 35. 0% +207% 833,213 683,916 1 30. 0% 25. 0% 252,293 207,134 0.8 30
Slide 12: IAS 29 EBITDA 1Q23 – 1Q24
IAS 29 EBITDA 1Q23 – 1Q24 11 IFRS, Million of P$ Y/Y Variation 250000 -P$45,159 (-18%) 200% 240000 14,515 230000 220000 210000 200000 11,461 10,314 150% 13,043 190000 42,584 180000 170000 160000 100% 150000 140000 252,293 130000 126,900 120000 14,806 2,352 233 207,134 110000 22,397 100000 50% 90000
Slide 13: Consolidated results
CONSOLIDATED RESULTS 12 OPERATING INCOME (LOSS) NET INCOME IFRS, Million of P$ IFRS, Million of P$ HISTORICAL FIGURES INFLATION ADJUSTED FIGURES HISTORICAL FIGURES INFLATION ADJUSTED FIGURES (MODELING PURPOSES) (MODELING PURPOSES) IAS 29 Adjustment 675,032 +273% (33,822) (43,641) 110,477 159,438 1Q2
Slide 14: 1Q24 Capex
1Q24 CAPEX 13 HIGHLIGHTS CAPEX* +6% Million of P$ 26 new sites were deployed and another 149 sites were upgraded. 98,417 104,668 1Q23 IAS 29 1Q24 IAS 29 We expanded our FTTH network over 1,200 new blocks. U$S MM** 121 122 % over Revenues 11.8% 15.3% Upstream capacity in the HFC network TECHNICAL CAP
Slide 15: Cash flow: FCF generation
CASH FLOW 14 FCF GENERATION 1Q23 FCF GENERATION 1Q24 Million of P$ Million of P$ 252,293 207,134 98,417 135,344 134,211 18,532 100,024 99,772 1,133 104,668 2,442 252 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF U$S 311 - 121 - 23 167 -1 166 241 - 122 -3 117 -0
Slide 16: Key figures
KEY FIGURES 15 In U$S Million1 LTM1Q24 FY23 Revenues 3,464 2,547 EBITDA 971 717 CAPEX3 861 598 Gross Debt2 2,851 2,632 Cash & Equivalents 533 344 Net Debt2 2,318 2,288 EBITDA-CAPEX3 110 119 Ratios LTM1Q24 FY23 EBITDA Margin 28.0% 28.1% Interest Coverage 8.56 9.91 Gross Debt / EBITDA4 2.94 3.67 Net D
Slide 17: Main impacts in our figures and debt
MAIN IMPACTS IN OUR FIGURES AND DEBT 16 ARGENTINA MACRO FY23 1Q24 OUR FIGURES Resiliency to FX Risk FX VS. INFLATION Real appreciation in 1Q24 EBITDA* 1,093 971 Million of US$ 717 LTM3Q23 FY23 LTM1Q24 Jan Apr Jun Sep Dec Mar FX Inflation NET DEBT* 2,260 2,288 2,318 • During December, Argentine peso
Slide 18: Debt maturity profile
DEBT MATURITY PROFILE | Principal payments 17 Breakdown by instrument* 2024 2025 2026 2027 ≥2028 Total (U$S million) Cross-Border Notes Class 1 Notes 2026 400 400 Class 5 Notes 2025 128 132 261 Vendor Financing 11 10 3 1 25 We cover over 50% of IFC 2016 15 31 25 7 78 our consolidated debt IFC 2019 4
Slide 19: Final remarks
FINAL REMARKS 18 1 EBITDA Margin Upholding our EBITDA Margin in a challenging context. 1 30.3% 30.3% We managed to grow our customer base in mobile and 1Q23 1Q24 broadband and stabilize Pay TV in a very competitive environment. 2 Recovery of figures in US$* Revenues EBITDA 3,464 971 Resiliency vs. F
Slide 20: telecom | personal | flow
telecom | personal | flow “~~