Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Q3 2022 Earnings Presentation
22 slides from Telecom Argentina Sa Class B's earnings presentation, Nov 10, 2022
Slide 1: Telecom Argentina 3Q22 Earnings Release
Telecom Argentina 3Q22 Earnings Release November 2022 Best IR Team – Telecom (2022) - Telecom Argentina
Slide 2: Disclaimer 1
DISCLAMER 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 2
DISCLAMER 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 3Q22: Operational and Financial highlights
OVERVIEW OF OUR 3Q22 | Operational and Financial highlights 3 Our EBITDA Margin during 9M22 was 28.7%. Main Flow unique customers reached 1.3 million, pressure comes from our labor cost, partially offset increasing 18% yoy. We have launched Flow in a by cost management in other items. prepaid modali
Slide 5: 9M22 in Figures
9M22 IN FIGURES 4 REVENUES EBITDA EBITDA MARGIN 3.2 0.9 28.7% U$S BN* U$S BN* 20.0 3.5 4.2 Million mobile Million pay TV Million broadband subscribers in Argentina subscribers subscribers 3.1 2.1 52% Million fixed Million convergent of broadband clients subscribers * * unique clients are also mobile
Slide 6: Inflation Evolution 9M22
INFLATION EVOLUTION 5 Weighing within the index Food and non-alcoholic beverages 26.9% Transport 11.0% 9M22 Inflation: Clothes and Shoes 9.9% 66,1% Housing water, electricity and other fuels 9.4% Restaurants and hotels 9.0% Sep-22 Inflation: Healthcare 8.0% 6,2% Recreation and culture 7.3% Home furn
Slide 7: Price Increases During 2022
PRICE INCREASES DURING 2022 6 MOBILE JAN-22 APR-22 JUL-22 SEP-22 NOV-22 PAY TV JAN-22 APR-22 JUL-22 OCT-22 Postpaid Mobile +15%1 +11%2 +13%3 +18% +17% Pay TV subscription +13% +12%4 +12%4 Up to 19% services Prepaid Mobile +16%1 +11% +7% Up to 16% Up to 20% Additional services Up to 15% +12% +12% Up
Slide 8: Business Evolution in Argentina
BUSINESS EVOLUTION IN ARGENTINA | Accesses (in thousands) 7 Prepaid Postpaid D YoY MOBILE 11,389 11,403 8,133 8,594 +0,1% Increase in postpaid and Prepaid prepaid segments +5,7% 3Q21 3Q22 Postpaid 4,248 4,218 BROADBAND Stabilized customer base, growing accesses on HFC and -0,7% FTTH network 3Q21 3Q2
Slide 9: Revenues Breakdown
REVENUES BREAKDOWN 8 SERVICE REVENUES REVENUE BREAKDOWN REVENUES COMPOSITION Million of P$ Billion of P$ D YoY Other Handsets 6.5% 0.8% Other 3.5 4.0 +12% -12% Fixed & Data 12.4% Handsets 38.1 30.6 -20% Mobile 39.7% Fixed & Data 75.2 58.5 -22% Pay TV 18.2% 498,158 Pay TV 105.1 85.7 -19% 440,369 Broa
Slide 10: Mobile & Broadband
MOBILE & BROADBAND 9 POSITIVE POSTPAID CLIENTS INFLOW (LTM3Q22) MOBILE DATA USAGE In Thousand / Source: ADB GBOU/ Month +17% Peer 1 Personal Peer 2 5 2 2 7 10 3 7 1 9 29 21 17 19 43% 12 11 12 11 7 13 8 5 Postpaid -6 -3 -2 -14 -13 - -10 -16 -12 -14 -11 -10 Share of -19 -10 -18 -17 Total Mobile -22 Cl
Slide 11: Paraguay
PARAGUAY 10 REVENUES EBITDA REVENUES BREAKDOWN Million of U$S Million of U$S Broadband +1% 18% Others +4% Pay TV 11% 8% 67,5% Núcleo 155 156 (Paraguay) 72 75 Mobile 9M21 9M22 9M21 9M22 63% SUBSCRIBERS FIXED NETWORK INTERNET SUBSCRIBERS (As of September - 22) CAPACITY (In thousands) (Thousands homes
Slide 12: Personal Pay
PERSONAL PAY 11 HIGHLIGHTS ONBOARDED CLIENTS The best Fintech for our customers X2,2 without consuming mobile data 527,675 (cashbacks, recharge increases, saving 18% in monthly bill payments,) are clients from other X3,1 telco operators Benefits in strategic shops 234,958 X5,1 76,209 Installed in ou
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) 33.5% 32.6% +44% 536.247 -12,2% 29.0% 28.7% 35. 0% 470.960 174.607 30. 0% 200 ,000 25. 0% 180 ,000 278,1
Slide 14: IAS 29 EBITDA 9M21 – 9M22
IAS 29 EBITDA 9M21 – 9M22 13 IFRS, Million of P$ YoY Variation 190000 -P$39.469 (-22.6%) 200% 180000 170000 160000 150% 150000 140000 7,103 4,970 5,256 2,524 5,096 130000 120000 4,717 1,169 100% 57,789 110000 100000 7,498 5,017 174,607 90000 80000 50% 70000 135,138 5% 60000 -12% -8% -8% -19% -3% -12
Slide 15: Consolidated Results
CONSOLIDATED RESULTS 14 OPERATING INCOME NET (LOSS) INCOME IFRS, Million of P$, Percentage IFRS, Million of P$, Percentage HISTORICAL FIGURES INFLATION ADJUSTED HISTORICAL FIGURES INFLATION ADJUSTED (MODELING PURPOSES) FIGURES (MODELING PURPOSES) FIGURES IAS 29 Adjustment +27% 1,876 49,076 62,298 2,
Slide 16: Goodwill Impairment
GOODWILL IMPAIRMENT 15 In order to determine the goodwill obtained in the merger between Telecom and Cablevisión, the consideration paid was determined based on the fair value of the shares of Telecom on the last business day before the effective date of the transaction (January 1, 2018). The NYSE m
Slide 17: 9M22 Capex
9M22 CAPEX 16 HIGHLIGHTS CAPEX* -24,1% Million of P$ 64 new sites were deployed, more than 1,000 sites were upgraded and another 20 are under construction 98,653 74,885 We expanded our FTTH network over 5,700 new blocks. Additionally, we 9M21 IAS 29 9M22 IAS 29 performed an overlay with FTTH in 4,62
Slide 18: Cash Flow
CASH FLOW 17 FCF GENERATION 9M21 FCF GENERATION 9M22 Million of P$ Million of P$ 174,607 135,138 75,779 72,982 60,801 54,326 98,653 175 2,797 74,885 548 6,475 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF IFRS, Million YoY Variation -P$18.656 U$S 1.185 -670 -1 5
Slide 19: Key Figures
KEY FIGURES 18 In U$S Million* LTM3Q22 FY21 Revenues 4,353 4.797 EBITDA 1,229 1.497 CAPEX 803 964 Gross Debt*** 2,714 3.007 Cash & Equivalents 268 345 Net Debt*** 2,447 2.662 EBITDA-Capex** 426 532 Ratios LTM3Q22 FY21 EBITDA Margin 28,2% 31.2% Interest Coverage 17,2 8.3 Gross Debt / EBITDA 2,21 2.01
Slide 20: Evolution of Key Ratios
EVOLUTION OF KEY RATIOS 19 BAD DEBT / REVENUES LTM CAPEX* / LTM REVENUES 4.1% 26.3% 3.6% 3.8% 3.6% 23.1% 20.9% 20.6% 19.8% 20.1% 19.4% 2.7% 18.5% 19.4% 18.4% 18.4% 2.4% 2.5% 1.7% 1.8% 1.9% 1.3% 1Q20 1H20 9M20 FY20 1Q21 1H21 9M21 FY21 1Q22 1H22 9M22 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3
Slide 21: Debt Maturity Profile
DEBT MATURITY PROFILE 20 Breakdown by Instrument* 2022 2023 2024 2025 2026 >=2027 Total (U$S million) Class 1 Notes 2026 400 400 Class 5 Notes 2025 128 128 132 389 Vendor Financing 9 29 15 8 2 64 IFC 2016 20 31 31 25 7 114 IFC 2019 88 82 38 208 IFC 2022 17 34 34 101 185 IIC Loan 17 17 35 Finnvera 10
Slide 22: telecom | personal | flow
telecom | personal | flow “~~