Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — H1 2024 Earnings Presentation
20 slides from Telecom Argentina Sa Class B's earnings presentation, August 2024
Slide 1: Telecom Argentina 1H24 & 2Q24 Earnings Release
Telecom Argentina 1H24 & 2Q24 Earnings Release August 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 1H24: Operational and Financial highlights
OVERVIEW OF OUR 1H24 | Operational and Financial highlights 3 EBITDA MARGIN MOBILE PERSONAL PAY 1H24 ⇧ 3% y/y 3 MM 29.7% (⇧1.3pp vs. 1H23) Data Usage ⇧ 18% y/y onboarded clients Effective cost management & pricing policy reaching 7 GBOU/month #2 Fintech in Argentina considering total remunerated acc
Slide 5: 1H24 in Figures
1H24 IN FIGURES 4 REVENUES EBITDA EBITDA MARGIN 1.83 0.54 29.7% 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 2.4 117 Million mobile Thousand pay TV subscribers in Paraguay subscribe
Slide 6: Pricing Strategy
PRICING STRATEGY 5 Monthly Inflation and price adjustments dynamic 30.0% ARPU evolution per segment* 25.0% 6.08 Mobile ARPU 5.20 evolution in U$S 3.78 20.0% 15.0% 1H23 FY23 1H24 10.0% 16.64 17.58 Broadband ARPU evolution in U$S 10.73 5.0% 1H23 FY23 1H24 0.0% may-23 jun-23 jul-23 aug-23 sep-23 oct-23
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 MOBILE 12,391 13,066 1.2% 8,244 8,147 +5.4% 0.7% 0.6% 0.8% Total mobile subs. Increase in total mobile subscribers Prepaid with a strong prepaid performance. 0.2% -1.2% 2Q23 2Q24 Postpaid 2Q23
Slide 8: Revenues Breakdown
REVENUES BREAKDOWN 7 SERVICE REVENUES REVENUES BREAKDOWN REVENUES COMPOSITION Million of P$ Billion of P$ Mobile 1H24 IAS 29 2Q24 IAS 29 Δ Y/Y Δ Q/Q HISTORICAL FIGURES (MODELING PURPOSES) 40.3% 1H23 IAS 29 1Q24 IAS 29 18 8 235% Other Other 16 +15% 9 -9% 5.7% Handsets 1,353,385 1.1% 94 56 Broadband H
Slide 9: Regional Operations and Personal Pay: Paraguay key figures
REGIONAL OPERATIONS AND PERSONAL PAY 8 Paraguay key figures REVENUES EBITDA EBITDA Mg* +3.0% +15.4% 54% Net debt to 99 102 48 55 EBITDA* -0.32x 1H23 1H24 1H23 1H24 Paraguay SUSCRIBERS* Mobile: 2.4M (+5%) Pay TV: 110k Pay: 291k Broadband: 297k (+17%) (+10%) (+4%) Cybersecurity Chile OUR DIGITAL WALLE
Slide 10: Financial Highlights: Revenues and EBITDA
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) 32.2% -13% 29.0% 28.4% 29.7% 1.2 35. 0% 30. 0% 1,921,749 1,666,979 1 +229% 495,092 25. 0% 545,272 0.8
Slide 11: IAS 29 EBITDA 1H23 – 1H24
IAS 29 EBITDA 1H23 – 1H24 10 IFRS, Million of P$ Y/Y Variation 600000 590000 -P$50,180 (-9%) 200% 580000 570000 560000 28,822 550000 540000 15,653 530000 520000 19,010 510000 500000 490000 30,367 480000 150% 67,323 470000 460000 450000 440000 430000 420000 410000 400000 9,943 3,064 390000 380000 30,
Slide 12: Consolidated Results
CONSOLIDATED RESULTS 11 OPERATING INCOME (LOSS) NET INCOME IFRS, Million of P$ IFRS, Million of P$ HISTORICAL FIGURES INFLATION ADJUSTED FIGURES HISTORICAL FIGURES INFLATION ADJUSTED FIGURES (MODELING PURPOSES) (MODELING PURPOSES) IAS 29 Adjustment 859,223 +225% (102,170) (148,074) 146,409 368,510 1
Slide 13: 1H24 Capex Highlights
1H24 CAPEX 12 HIGHLIGHTS CAPEX* -2% Million of P$ 44 new sites were deployed and another 606 sites were upgraded. 228,595 224,592 1H23 IAS 29 1H24 IAS 29 We expanded our FTTH network over 4,340 new blocks. U$S MM** 240 246 % over Revenues 11.9% 13.5% Upstream capacity in the HFC network TECHNICAL CA
Slide 14: Cash Flow: FCF Generation
CASH FLOW 13 FCF GENERATION 1H23 FCF GENERATION 1H24 Million of P$ Million of P$ 495,092 545,272 296,741 293,397 228,595 224,592 19,936 3,344 140,231 137,264 130,269 2,967 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF U$S 572 - 240 - 21 311 -4 308 543 - 246 -143
Slide 15: Key Figures
KEY FIGURES 14 In U$S Million1 LTM2Q24 FY23 Revenues 3,780 2,547 EBITDA 1,087 717 CAPEX3 948 598 Gross Debt2 2,811 2,632 Cash & Equivalents 411 344 Net Debt2 2,400 2,288 EBITDA-CAPEX3 139 119 Ratios LTM2Q24 FY23 EBITDA Margin 28.8% 28.1% Interest Coverage 9.98 9.91 Gross Debt / EBITDA4 2.59 3.67 Net
Slide 16: Main Impacts in Our Figures and Debt
MAIN IMPACTS IN OUR FIGURES AND DEBT 15 EVOLUTION OF OUR FIGURES ARGENTINA MACRO FY23 1Q23 1H24 FX VS. INFLATION Real appreciation during 1H24 Resiliency to FX Risk EBITDA* Million of U$S 1,093 971 1,087 717 Jan Apr Jun Sep Dec Mar Jun FX Inflation LTM3Q23 FY23 LTM1Q24 LTM2Q24 • During December, Arg
Slide 17: Debt Maturity Profile
DEBT MATURITY PROFILE | Principal payments 16 Breakdown by instrument* 2024 2025 2026 2027 ≥2028 Total (U$S million) Cross-Border Notes Class 1 Notes 2026 400 400 Class 5 Notes 2025 * 128 132 261 Vendor Financing 7 10 3 1 21 We cover over 50% of IFC 2016 15 31 25 7 78 our consolidated debt IFC 2019
Slide 18: Liability Management During July & August
LIABILITY MANAGEMENT DURING JULY & AUGUST 17 SUCCESSFUL LOCAL ISSUANCES: SUCCESSFUL INTERNATIONAL ISSUANCES: DATE OF ISSUANCE June 6, 2024 June 11, 2024 August 6, 2024 July 18, 2024 August 8, 2024 Exchange 2026 Notes Denomination Class 20 Class 20 (Re-opening) Class 22 Class 21 Class 21- Additionals
Slide 19: Final Remarks
FINAL REMARKS 18 1 EBITDA Margin Improving our EBITDA Margin in a challenging context 1 29.7% We managed to grow our customer base in mobile and stabilize 28.4% broadband and Pay TV in a very competitive environment 1H23 1H24 Our fintech, Personal Pay, is currently a relevant market player, with 2 R
Slide 20: Telecom | Personal | Flow
telecom | personal | flow “~~