UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of November 2022
Commission File Number: 001-13464
Telecom Argentina S.A.
(Translation of registrant’s name into English)
General Hornos, No. 690, 1272
Buenos Aires, Argentina
(Address of principal executive offices)
Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F:
Indicate by check mark if the registrant is submitting
the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting
the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Telecom Argentina S.A.
TABLE OF CONTENTS
Item
| Contacts: | Market
Cap (NYSE: TEO): US$1,778.9 million* |
Luis Fernando Rial Ubago
(5411) 5112 7218
Tomás Pellicori
(5411) 5524 7692
Telecom Argentina S.A.
announces consolidated results for
the nine month period
(“9M22”)
and third quarter of fiscal year 2022 (“3Q22”) **
Note: For
the figures included in their FFSS, 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 will be applied to the annual financial
statements, for intermediate and special periods ended as of December 31, 2018 inclusive. Accordingly, the reported figures corresponding
to 9M22 include the effects of the adoption of inflationary accounting in accordance with IAS 29. Finally, comments related to variations
of results of 9M22 and vs. 9M21 mentioned in this press release correspond to “figures restated by inflation” or “constant”.
Moreover, Table 3 contemplates information broken down by segment for periods ended as of September 30 of 2022 and 2021,
as analyzed by the Executive Committee and the CEO, who receive periodically the financial information of Telecom and its subsidiaries
(in historical values). For further details, please refer to the titles of the financial tables beginning from page 11.
| · | Previous’
year figures included for comparative purposes (September 2021) contain the effect of
the year over year inflation as of September 2022, which was 83.0%. |
| · | Consolidated
Revenues amounted to P$470,960 million in 9M22 (-12.2% in constant currency vs. 9M21), in
a context of inflationary acceleration. Service Revenues totaled P$440,369 million (-11.6%
in constant currency vs. 9M21). |
| · | Mobile
clients in Argentina reached 20 million in 9M22 (+0.5 million vs. 9M21), cable TV subscribers
totaled approximately 3.5 million (-61 thousand vs. 9M21), while broadband accesses amounted
to 4.2 million (-30 thousand vs. 9M21). |
| · | Operating
Income before Depreciation and Amortization amounted to P$135,138 million in 9M22 (-22.6%
vs. 9M21), while our operating margin before D&A was 28.7%. |
| · | Due
to economic and market conditions, a goodwill impairment of P$207.940 million was recorded
as depreciation, amortization and impairment of fixed assets (refer to the “Impairment
of goodwill” section of this press release), mainly including the goodwill generated
as a result of the merger between Cablevisión and Telecom (which was effective as
of January 1, 2018). The aforementioned impairment does not affect assets other than goodwill
and has no impact over the Company's operations or its cash generation capacity. |
| · | The
Company registered a Net Loss of P$163,498 million in 9M22 (vs. an income of P$1,876 million
in 9M21). This loss was mainly due to the abovementioned impairment, and was partially offset
by positive net financial results of P$75,126 million. |
| · | Investments
(including rights of use assets) reached P$85,664 million in 9M22, equivalent to 18.2% of
our Consolidated Revenues. |
| · | Net
Financial Debt amounted to P$360,531 million in 9M22 (-11.8% in constant currency vs. 9M21). |
*Market
Cap as of November 8th, 2022
**Unaudited non financial data
|
IAS
29 |
IAS
29 |
|
|
(in million P$ adjusted by inflation, except where noted) * * |
As
of Sep- 30, |
As
of Sep- 30, |
Δ
$ |
Δ
% |
|
2022 |
2021 |
|
|
Consolidated
Revenues |
470,960 |
536,247 |
(65,287) |
-12.2% |
Operating
Income before D&A |
135,138 |
174,607 |
(39,469) |
-22.6% |
Operating
Income (loss) |
(234,668) |
2,169 |
(236,837) |
- |
Net
income (loss) before income tax expense |
(159,200) |
58,542 |
(217,742) |
- |
Net
income (loss) attributable to Controlling Company |
(164,873) |
655 |
(165,528) |
- |
Shareholders'
equity attributable to Controlling Company |
690,897 |
887,412 |
(196,515) |
-22.1% |
Net
Financial Debt |
(360,531) |
(408,918) |
48,387 |
-11.8% |
Investments
in PP&E, intangible assets & rights of use assets * |
85,664 |
121,750 |
(36,086) |
-29.6% |
|
|
|
|
|
Fixed
lines in service (in thousand lines) *** |
2,030 |
2,524 |
(494) |
-19.6% |
Mobile
customers (in thousand) |
22,339 |
21,722 |
617 |
2.8% |
Personal
(Argentina) |
19,997 |
19,522 |
475 |
2.4% |
Núcleo
(Paraguay) -including Wimax customers- |
2,342 |
2,200 |
141 |
6.4% |
Broadband
accesses in Argentina (in thousand) |
4,218 |
4,248 |
(30) |
-0.7% |
Pay
TV Subscribers (in thousand) |
3,500 |
3,561 |
(61) |
-1.7% |
|
|
|
|
|
Average
Billing per user (ARPU) Fixed Telephony / voice (in P$ - Restated by inflation) |
1,206.6 |
1,296.2 |
(89.6) |
-6.9% |
Average
Revenue per user (ARPU) Mobile Services - Personal (in P$ - Restated by inflation) |
936.5 |
1,039.6 |
(103.1) |
-9.9% |
Average
Revenue per user (ARPU) Broadband (in P$ - Restated by inflation) |
2,642.0 |
2,892.8 |
(250.8) |
-8.7% |
Average
Revenue per user (ARPU) Cable TV (in P$ - Restated by inflation) |
2,620.9 |
3,201.6 |
(580.7) |
-18.1% |
*
(in constant measuring unit – includes $10.779 million corresponding to additions of rights of use assets as of September 30,
2022)
**(Figures
may not add up due to rounding)
***
(does not include IP telephony lines, which as of September 30, 2022 amounted to approximately 1,020 thousand)
Consolidated
Revenues |
|
EBITDA |
(in
million P$) |
|
(in
million P$) |
|
|
|
|
|
|
|
|
|
EBIT |
|
Net
Income (Loss) |
(in
million P$) |
|
(in
million P$) |
|
|
|
|
|
|
Buenos
Aires, November 9, 2022 - Telecom Argentina
S.A. (‘Telecom Argentina’) - (NYSE: TEO; BYMA: TECO2), announced today a net loss of P$163,498 million for the period ended
September 30, 2022 (-P$165,374 million vs. 9M21). The net income attributable to the controlling company was P$164,873 million (-P165,528
million vs. 9M21).
Comparative
figures for the previous fiscal year have been restated so that the resulting information is presented in terms of the current measurement
unit as of September 30, 2022.
The
following table shows the evolution of the consumer price index (National CPI - according to INDEC’s official statistics) for the
last two fiscal years and as of September 30, 2021 and 2022, which were used to restate the figures in constant currency:
|
As
of December 31. |
As
of December 31. |
As
of September 30. |
As
of September 30. |
|
2020 |
2021 |
2021 |
2022 |
Price
Index Variation
Annual |
36.1% |
50.9% |
52.5% |
83.0% |
3-month
cumulative
(since
June) |
n/a |
n/a |
9.3% |
22.0% |
9
month cumulative |
n/a |
n/a |
37.0% |
66.1% |
During
the 9M22, Consolidated Revenues amounted to P$264,577 million, from which Service Revenues totaled P$247,527 million.
|
IAS
29 |
IAS
29 |
∆ $ |
∆ % |
|
9M22 |
9M21 |
Consolidated
Revenues (MMP$) |
470,960 |
536,247 |
(65,287) |
(12.2%) |
Net
Income (loss) attributable to Controlling Company (MMP$) |
(164,873) |
655 |
(165,528) |
- |
Net
income (loss) attributable to Controlling Company per Share (P$) |
(76.6) |
0.3 |
(76.9) |
|
Net
income (loss) attributable to Controlling Company per ADR (P$) |
(382.8) |
1.5 |
(384.3) |
|
Operating
income before D&A * |
28.7% |
32.6% |
|
|
Operating
income (loss) * |
-49.8% |
0.4% |
|
|
Net
income (loss) * |
-34.7% |
0.3% |
|
|
|
|
|
|
|
*As
a percentage of Consolidated Revenues |
|
|
|
|
Note:
The average of ordinary shares outstanding considered amounted to and 2,153,688,011 as of 9M22 and 9M21 |
Consolidated
Operating Revenues
Mobile
Services
As of September 30,
2022, total mobile subscribers in Argentina and Paraguay amounted to 22.3 million. In 9M22, total mobile services revenues represented
P$187,113 million (-P$13,590 million or -6.8% vs. 9M21).
Mobile
Services
Revenues
(in
billion P$)
Mobile Services in Argentina
As of September 30, 2022,
total mobile subscribers amounted to approximately 20.0 million (+0.5 million vs. 9M21). Postpaid clients represented 43% of our subscriber
base.
In 9M22, mobile service revenues
in Argentina amounted to P$171,114 million (-4.6% vs 9M21). Mobile internet revenues accounted for 88% of mobile service revenues. The
average monthly revenue per user (“ARPU” – restated in constant currency as of September 30, 2022) amounted to
P$936.5 during 9M22 (-9.9% vs. 9M21). The effect generated by the restatement in terms of the September 30, 2022 current measurement
unit (included in the ARPU) amounted to P$194.8 and P$537.4, for 9M22 and 9M21, respectively. Mobile churn was 2.5% (vs. 1.6% in 9M21).
Mobile
Consumption of
Personal in Argentina
Personal in Paraguay (‘Núcleo’)
As of September 30, 2022, Núcleo’s
subscriber base reached 2.3 million clients. Prepaid and postpaid customers represented 80% and 20%, respectively.
Núcleo´s mobile service
revenues during 9M22, amounted to P$15,999 million (-24.9% vs. 9M21), mainly due to a decrease in ARPU measured in constant pesos, which
was partially offset by the appreciation of the Guaraní against the Argentine peso.
Cable TV Services
Cable TV service revenues were
P$85,700 million in 9M22 (-P$19,420 million or -18.5% vs. 9M21). Cable TV subscribers totaled approximately 3.5 million (-61 thousand
vs. 9M21). The monthly Cable TV ARPU (restated in constant currency as of September 30, 2022) reached P$2,620.9 during 9M22 (vs P$3,201.6
in 9M21). The effect generated by the restatement in terms of the measuring unit as of September 30, 2022 included in ARPU amounts
to P$567.4 and P$1,663.9, for the 9M22 and 9M21, respectively. The average monthly churn during 9M22 and 9M21 was 1.3% and 1.1%, respectively.
Flow continued to strengthen its
content offer by incorporating new products in music, national and international films, and gaming. During the 9M22, Flow’s subscribers
reached 1.3 million (+200 thousand or +18.3% vs. 9M21)
Additionally, we continued to deploy
the ISDB-T technology for analogic Flow subscribers in new cities, reaching more than 1.5 million subscribers in the Autonomous City of
Buenos Aires and the province of Buenos Aires. We have also presented a new Flow Flex service, which consists of a flexible paid
TV proposal that allows customers to contract Flow’s services for a fixed period of time, with packages of 3, 7, 15 and 30 days.
Pay TV Service
Revenues (in
billion P$)
Fixed Telephony and Data Services
Revenues generated by fixed telephony
and data services reached P$58,534 million in 9M22 (-P$16,658 million or -22.2% vs. 9M21).
The monthly fixed voice ARPU (restated
in constant currency as of September 30, 2022) reached P$1,206.6 (vs. P$1,296.2 in 9M21). The effect generated by the restatement
in terms of the measuring unit as of September 30, 2022, included in the ARPU amounted to P$271.0 and P$676.3 for the 9M22 and 9M21,
respectively.
We continue to offer valuable proposals
with the objective of supporting companies in their digital transformation, including cybersecurity as a key element in this transformation
process.
Fixed Telephony and
Data Services Revenues
(in billion P$)
In this regard, the Company included Oracle Cloud solutions in its offer, which includes application servers, databases
and more.
Internet Services
Internet services revenues totaled
P$105,070 million during 9M22 (-P$8,850 million or -7.5% vs. 9M21). As of September 30, 2022, total broadband accesses reached approximately
4.2 million (-30 thousand vs. 9M21).
Additionally, broadband ARPU (restated
in constant currency as of September 30, 2022) amounted to P$2,642.0 per month in 9M22 (vs. P$2,892.8 in 9M21). The effect generated
by the restatement in terms of the measuring unit as of September 30, 2022, included in the ARPU amounted to approximately P$563.9
and P$1,499.8, for the 9M22 and 9M21, respectively.
The average monthly churn rate
for the 9M22 was 1.5% (unchanged when compared to 9M21). As of 9M22, 79% of our total customer base had a broadband service of 50Mb or
higher (this percentage was 68% as of 9M21).
The Company continued to enhance
the home connectivity experience of its customers, increasing the deployment of Fiber Optic to the Home (FTTH) in different locations
throughout the country. These connections reach up to 300 megabytes, with low latency, multi-device connection and including the option
of contracting Flow as an additional service, among other advantages.
Revenues from equipment sales
Equipment revenues amounted to
P$30,591 million (-P$7,498 million or -19.7% vs. 9M21). Said decrease was mainly due to a lower volume of handsets sold (-18%), which
have increased their average price.
Consolidated Operating Costs
Consolidated Operating Costs (including
D&A and impairment of fixed assets) totaled P$705,628 million in 9M22 (+P$171,550 million or -32.1% vs. 9M21). Excluding D&A and
impairment of fixed assets, operating costs experienced a reduction of 7.1%.
The cost breakdown was as follows:
| ● | Employees benefits and severance payments: P$115,470 million (+4.5% vs. 9M21).
Total employees amounted to 22,234 as of 9M22. |
| ● | Interconnection
and transmission
costs (including roaming, international settlement charges and lease of circuits) were P$14,574
million (-25.4% vs. 9M21). This saving was mainly due to a new business dynamic that optimizes
our links and sites which has offset the increase in prices of services that are denominated
in US dollars. |
| ● | Fees for services, maintenance, materials and supplies: P$56,503 million
(-7.7% vs. 9M21). This decrease is mainly explained by a decrease in maintenance and material costs of $5,731 million vs. 9M21. |
| ● | Taxes and fees paid to regulatory authorities: P$36,272 million (-12.3% vs.
9M21). This decrease was mainly due to lower sales during 9M22 vs 9M21. These costs represent 7.7% of total revenues as of 9M22 and 9M21. |
| ● | Commissions and advertising (commissions paid to agents, collection fees
and other commissions): P$27,731 million (-8.3% vs. 9M21). Said decrease was mainly explained by lower agent commission charges and collection
fees, partially offset by a slight increase in advertisement costs related to campaigns related to Personal Pay (the Company’s electronic
wallet) and cybersecurity services. |
| ● | Cost of handsets sold: P$21,745 million (-19.5% vs. 9M21). These costs decreased
mainly due to a lower volume of handsets sold (-18% vs. 9M21), notwithstanding the increase in purchase prices. |
| ● | Programming and content costs: P$29,530 million (-19.4% vs. 9M21). Said reduction
was mainly explained by commercial efficiencies, which were partially offset by price increases in almost all of our broadcasting signals. |
| ● | Other Costs totaled P$33,967 million (-3.3% vs. 9M21), of which bad debt
expenses reached P$11,781 million (+20.0% vs. 9M21). |
| ● | Our bad debt ratio was 2.5% as of September 30, 2022 (vs. 1.8% in 9M21).
The increase was mainly due to the deteriorating economic situation in Argentina, which has a direct impact on our bad debt ratios. The
bad debt ratio of the 9M21 was impacted by post-pandemic collection improvements. |
| ● | Other operating costs (including charges for lawsuits and other contingencies,
energy and other public services, insurance, rents and internet capacity) totaled P$22,186 million (-12.4% vs. 9M21). All components of
this item have experienced a reduction in real terms. |
| ● | Depreciation, amortization and impairment of fixed assets amounted to P$369,806
million (+114.5% vs. 9M21). Due to the complex macroeconomic context in Argentina, the Company has reviewed the recoverable value estimate
of the goodwill allocated to the Argentine cash-generating unit (CGU). From said analysis, it was concluded that the book value of the
CGU exceeds its recoverable value. Consequently, an impairment of goodwill was recognized for P$207,940 million (refer to section “Recovery
of goodwill” in Relevant financial events of the period). |
| | This charge also includes
the impact of the amortization of assets incorporated after September 30, 2021, partially offset by the effect of the assets that
were completely amortized after such date. |
Net Financial Results
Net
Financial Results (including Financial Expenses on Debt and Other Financial Results) were P$75,126 million in 9M22 (vs. P$55,989 million
in 9M21), mainly due to:
In
millions of $ |
9M22 |
9M21 |
Var |
|
RECPAM |
50,853 |
20,972 |
29,881 |
|
Net
interest |
(3,224) |
(22,107) |
18,883 |
|
Exchange
differences |
46,987 |
68,362 |
(21,375) |
|
Investment
results |
(12,162) |
(901) |
(11,261) |
|
Others |
(7,328) |
(10,337) |
3,009 |
|
Total |
75,126 |
55,989 |
19,137 |
|
Income Tax
Our income tax includes the following effects:
| i) | the tax to be paid according to applicable local tax legislation, |
| ii) | the effect of applying the deferred tax method on temporary differences generated
when comparing our asset and liability valuation according to tax and financial accounting criteria which includes the effect of the income
tax inflation adjustment, and |
| iii) | the effects mentioned in Note 13 to the consolidated financial statements
as of September 30, 2022. |
Income tax loss amounted to P$4,298
million in 9M22 (vs. a loss of P$56,666 million in 9M21). The tax paid according to item (i) above amounted to P$34,934 million in
9M22 (vs. P$23,263
million in 9M21) and the income tax effect related to the application of the deferred tax method described in item
(ii) above is a gain of P$30,636 million in 9M22 (vs. a loss of P$33,403 million in 9M21).
Consolidated Net Financial Debt
As of September 30, 2022,
our net financial debt (cash, cash equivalents plus financial investments and financial NDF* & interest rate swaps minus loans)
amounted to P$360,531 million, decreasing P$48,387 million (-11.8%) when compared to the consolidated net financial debt as of September 30,
2021 adjusted by inflation.
* Contemplates rate swaps and NDF (non-delivery
forwards) agreements.
Investments in PP&E,
intangible assets and rights of use assets
|
|
|
|
During the 9M22, the Company invested (including rights of use assets) P$85,664 million (-29.6% vs. 9M21). Said investments represented 18.2% of consolidated revenues in 9M22. |
|
|
|
|
The investments were focused on |
|
|
|
|
· |
Projects related to improving internet transmission and access speed. |
|
|
|
|
· |
Deployment and modernization of our 4G mobile access sites, supporting the growth in the coverage of our mobile network. |
|
|
|
|
· |
Extension of our transmission and transport networks in order to unify the different access technologies and to consolidate the deployment of last-mile networks with FTTH architecture. |
|
|
|
|
· |
New customer contact systems |
Relevant
financial events of the period
Goodwill Impairment
The most significant
goodwill held by the Company was generated as a result of the merger between Telecom Argentina and Cablevisión (the effective date
of this transaction was January 1, 2018).
The aforementioned merger
was a business combination made through an exchange of equity interests. In order to determine the goodwill obtained in the merger between
Telecom and Cablevisión, the consideration paid was determined based on the fair value of the shares of Telecom on the last business
day before the effective date of the transaction (January 1, 2018). The NYSE market price of the ADR of Telecom on said date was
US$ 36.63 per ADR (as of September 30, 2022, the price of the ADR of Telecom was US$ 4.01).
The impairment of this
goodwill is identified by comparing the recoverable value of the business in Argentina, which includes goodwill balance, to its book value.
Recoverable value is determined using the higher value between its fair value less costs of disposal and its value in use. Fair value
less cost of disposal is calculated taking into account the Company’s market capitalization value according to the average trading
price of the stock in the local stock exchange (BYMA), and value in use is estimated using a discounted cash flow model.
Due to the deterioration
of market conditions in Argentina and globally, the recoverable value of Argentinian business fell short vs. the book value by approximately
P$208 billion pesos. This impairment is mainly due to the minor increase of Telecom's share price in pesos, which has
underperformed inflation,
while fixed assets increase their book values based on the inflation rate in accordance with the requirements under IAS 29. Consequently,
an impairment for the aforementioned amount was registered as of September 30, 2022 in “D&A and impairment of fixed assets”.
The aforementioned impairment
does not affect assets other than goodwill, and has no impact over the Company’s operations or its cash generation capacity.
For further information,
refer to Note 26 of the Consolidated Financial Statements as of September 30, 2022.
Class 12 local notes - Reopening
Issuance
Date: March 9, 2022.
Amount
Issued: US$75 million to be paid in Argentine pesos at the applicable exchange rate. As the notes were issued at a premium
to par value, the Company received proceeds for US$86.25 million.
Maturity
Date: March 9, 2027.
Amortization:
Bullet.
Interest
Rate and payments: 1.00% p.a, quarterly interest payments.
ENACOM
Resolution No. 798/2022 – On-demand spectrum allocation
Through ENACOM Resolution
No. 798/2022, published in the Official Gazette of May 19, 2022, an on-demand process of spectrum allocation for the provision
of the Advanced Mobile Communications Service was launched, involving blocks of the 2500-2570 MHz and 2620-2690 MHz frequencies.
On May 31, 2022,
the Company submitted a presentation requesting the allocation of spectrum blocks in this process. Through ENACOM Resolution No.1729/2022
published in the Official Gazette on August 31, 2022, Telecom Argentina was awarded the spectrum blocks in the requested locations
and ENACOM accepted the Company’s proposal to return certain of its spectrum blocks.
Sale of “Costanera” building
On March 21, 2022,
the Company entered into an agreement for the sale of the “Costanera” building, located in the Autonomous City of Buenos Aires,
Argentina, for a total of US$6 million. This transaction is subject to ENACOM’s authorization, since the real estate is affected
by the provision of ICT Services.
As of September 30,
2022, the Company has received an advance payment for US$ 2 million.
Relevant events after September 30,
2022
Preliminary Injunction
On
October 5, 2022, we informed of the decision rendered by the Federal Administrative Litigation Matters Court No. 8 in the
proceedings “Telecom Argentina S.A. a/EN-Enacom and other re. preliminary injunction (Autonomous)” (Docket
No. 12,881/2020) whereby the Court
decided
to further extend for a period of 6 (six) months the preliminary injunction previously granted to us according to section 5 of Law No.
26,854
Telecom
Argentina is a leading telecommunications company in Argentina, where it offers, either itself or through its controlled subsidiaries
local and long distance fixed-line telephony, cellular, data transmission, and pay TV and Internet services, among other services. Additionally,
Telecom Argentina offers mobile, broadband and satellite TV services in Paraguay and pay TV services in Uruguay. The Company commenced
operations on November 8, 1990, upon the Argentine government’s transfer of the telecommunications system in the northern
region of Argentina.
As
of September 30, 2022, Telecom Argentina owns 2,153,688,011 issued and outstanding shares.
* Cablevisión
Holding S.A. owns 18.89% of the total capital stock directly and owns 9.27% of the total capital stock indirectly through VLG S.A.U.
** Trustees: Hector Horacio Magnetto and David Manuel Martínez Guzmán
For
more information, please contact Investor Relations:
|
|
|
Luis
Fernando Rial Ubago |
Tomás
Pellicori |
Pablo
Lorenzo |
(5411) 5112
7218 |
(5411)
5524 7692 |
(5411) 2482
6817 |
|
|
|
For
information about Telecom Argentina’s services, visit:
www.telecom.com.ar
www.personal.com.ar
www.personal.com.py
Disclaimer
This
document 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) the continued synergies expected from the merger between the Company and Cablevisión S.A. (or the Merger);
(iii) the implementation of the Company’s business strategy; (iv) the changing dynamics and growth in the telecommunications
and cable markets in Argentina, Paraguay, Uruguay and the United States; (v) the Company’s outlook for new and enhanced technologies;
(vi) the effects of operating in a competitive environment; (vii) the industry conditions; (viii) the outcome of certain
legal proceedings; and (ix) regulatory and legal developments. Forward-looking statements may be identified by words such as “anticipate,”
“believe,” “estimate,” “expect,” “intend,” “plan,” “project,”
“will,” “may” and “should” or other similar expressions. Forward-looking statements are not guarantees
of future performance and involve certain risks and uncertainties that are difficult to predict. In addition, certain forward-looking
statements are based upon assumptions as to future events that may not prove to be accurate. 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 ability to successfully
implement our business strategy and to achieve synergies resulting from the Merger; (ii) the Company’s ability to introduce
new products and services that enable business growth; (iii) uncertainties relating to political and economic conditions in Argentina,
Paraguay, Uruguay and the United States, including the policies of the new government in Argentina; (iv) the impact of political
developments, including the policies of the new government in Argentina, on the demand for securities of Argentine companies; (v) inflation,
the devaluation of the peso, the Guaraní and the Uruguayan peso and exchange rate risks in Argentina, Paraguay and Uruguay; (vi) restrictions
on the ability to exchange Argentine or Uruguayan pesos or Paraguayan guaraníes into foreign currencies and transfer funds abroad;
(vii) the impact of currency and exchange measures or restrictions on our ability to access the international markets and our ability
to repay our dollar-denominated indebtedness; (viii) the creditworthiness of our actual or potential customers; (ix) the nationalization,
expropriation and/or increased government intervention in companies; (x) technological changes; (xi) the impact of legal or
regulatory matters, changes in the interpretation of current or future regulations or reform and changes in the legal or regulatory environment
in which the Company operates, including regulatory developments such as sanctions regimes in other jurisdictions (e.g., the United States)
which impact on the Company’s suppliers; (xii) the effects of increased competition; (xiii) reliance on content produced
by third parties; (xiv) increasing cost of the Company’s supplies; (xv) inability to finance on reasonable terms capital
expenditures required to remain competitive; (xvi) fluctuations, whether seasonal or in response to adverse macro-economic developments,
in the demand for advertising; (xvii) the Company’s ability to compete and develop our business in the future; (xviii) the
impact of increased national or international restrictions on the transfer or use of telecommunications technology; and (xix) the
impact of the outbreak of COVID-19 on the global economy and specifically on the economies of the countries in which we operate, as well
as on our operations and financial performance. Many of these factors are macroeconomic and regulatory in nature and therefore beyond
the control of the Company’s management. Should one or more of these risks or uncertainties materialize, or underlying assumptions
prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended,
planned or projected. The Company does not intend and does not assume any obligation to update the forward-looking statements contained
in this document. These forward-looking statements are based upon a number of assumptions and other important factors that could cause
our actual results, performance or achievements to differ materially from our future results, performance or achievements expressed or
implied by such forward-looking statements. Readers are encouraged to consult the Company’s Annual Report on Form 20-F and
the periodic filings made on Form 6-K, which are periodically filed with or furnished to the United States Securities and Exchange
Commission, as well as the presentations periodically filed before the Argentine Securities and Exchange Commission (Comisión
Nacional de Valores) and the Buenos Aires Stock Exchange (Bolsas y Mercados Argentinos), for further information concerning risks and
uncertainties faced by the Company.
(Financial tables follow)
*******
Telecom Argentina S.A.
Consolidated
Information
Nine-month
period and third quarter – Fiscal Year 2022
(in
million Argentine Pesos)
1
- |
Consolidated
Balance Sheet |
|
|
|
|
|
|
|
|
|
(Restated
by inflation, comparative figures in constant currency as of September 2022) |
|
|
|
|
|
|
|
|
|
|
09/30/22 |
|
12/31/21 |
|
Δ
$ |
|
Δ
% |
|
|
Cash
and cash equivalents |
32,932 |
|
32,964 |
|
(32) |
|
-0.1% |
|
|
Financial
Investments |
6,260 |
|
17,912 |
|
(11,652) |
|
-65.1% |
|
|
Trade
receivables |
29,779 |
|
37,456 |
|
(7,677) |
|
-20.5% |
|
|
Other
Receivables |
13,178 |
|
14,690 |
|
(1,512) |
|
-10.3% |
|
|
Inventories |
5,058 |
|
5,174 |
|
(116) |
|
-2.2% |
|
|
Assets
held for sale |
791 |
|
- |
|
791 |
|
- |
|
|
Total
current assets |
87,998 |
|
108,196 |
|
(20,198) |
|
-18.7% |
|
|
Financial
Investments |
227 |
|
- |
|
227 |
|
- |
|
|
Trade
receivables |
101 |
|
121 |
|
(20) |
|
-16.5% |
|
|
Goodwill |
422,217 |
|
629,582 |
|
(207,365) |
|
-32.9% |
|
|
Property,
plant and equipment ('PP&E') |
684,718 |
|
749,280 |
|
(64,562) |
|
-8.6% |
|
|
Intangible
assets |
222,387 |
|
239,336 |
|
(16,949) |
|
-7.1% |
|
|
Right-of-use
assets |
51,666 |
|
55,494 |
|
(3,828) |
|
-6.9% |
|
|
Other
Receivables |
8,823 |
|
9,913 |
|
(1,090) |
|
-11.0% |
|
|
Total
non-current assets |
1,390,139 |
|
1,683,726 |
|
(293,587) |
|
-17.4% |
|
|
TOTAL
ASSETS |
1,478,137 |
|
1,791,922 |
|
(313,785) |
|
-17.5% |
|
|
Trade
payables |
61,965 |
|
81,760 |
|
(19,795) |
|
-24.2% |
|
|
Financial
debt |
100,664 |
|
107,730 |
|
(7,066) |
|
-6.6% |
|
|
Salaries
and social security payables |
31,240 |
|
36,974 |
|
(5,734) |
|
-15.5% |
|
|
Income
tax liabilities |
32,250 |
|
23,129 |
|
9,121 |
|
39.4% |
|
|
Taxes
payables |
7,772 |
|
6,580 |
|
1,192 |
|
18.1% |
|
|
Lease
liabilities |
8,068 |
|
10,180 |
|
(2,112) |
|
-20.7% |
|
|
Other
liabilities |
4,730 |
|
5,074 |
|
(344) |
|
-6.8% |
|
|
Provisions |
2,316 |
|
3,564 |
|
(1,248) |
|
-35.0% |
|
|
Total
current liabilities |
249,005 |
|
274,991 |
|
(25,986) |
|
-9.4% |
|
|
Trade
payables |
551 |
|
1,821 |
|
(1,270) |
|
-69.7% |
|
|
Financial
debt |
299,286 |
|
335,554 |
|
(36,268) |
|
-10.8% |
|
|
Salaries
and social security payables |
2,676 |
|
2,567 |
|
109 |
|
4.2% |
|
|
Deferred
income tax liabilities |
194,740 |
|
224,584 |
|
(29,844) |
|
-13.3% |
|
|
Taxes
payables |
58 |
|
- |
|
58 |
|
- |
|
|
Lease
liabilities |
15,926 |
|
21,235 |
|
(5,309) |
|
-25.0% |
|
|
Other
liabilities |
2,434 |
|
2,078 |
|
356 |
|
17.1% |
|
|
Provisions |
9,538 |
|
15,900 |
|
(6,362) |
|
-40.0% |
|
|
Total
non-current liabilities |
525,209 |
|
603,739 |
|
(78,530) |
|
-13.0% |
|
|
TOTAL
LIABILITIES |
774,214 |
|
878,730 |
|
(104,516) |
|
-11.9% |
|
|
|
|
|
|
|
|
|
|
|
|
Equity
attributable to Controlling Company |
690,897 |
|
898,957 |
|
(208,060) |
|
-23.1% |
|
|
Non-controlling
interest |
13,026 |
|
14,235 |
|
(1,209) |
|
-8.5% |
|
|
TOTAL
EQUITY |
703,923 |
|
913,192 |
|
(209,269) |
|
-22.9% |
|
|
TOTAL
LIABILITIES AND EQUITY |
1,478,137 |
|
1,791,922 |
|
(313,785) |
|
-17.5% |
|
|
|
|
|
|
|
|
|
|
|
2
- |
Consolidated
Loans |
|
|
|
|
|
|
|
|
|
(Monetary
items) |
|
|
|
|
|
|
|
|
|
|
09/30/22 |
|
12/31/21 |
|
Δ
$ |
|
Δ
% |
|
|
Bank
overdrafts - principal |
14,901 |
|
20,235 |
|
(5,334) |
|
-26.4% |
|
|
Bank
and other financial entities loans - principal |
31,961 |
|
54,101 |
|
(22,140) |
|
-40.9% |
|
|
Notes
- principal |
20,434 |
|
- |
|
20,434 |
|
- |
|
|
NDF |
81 |
|
307 |
|
(226) |
|
-73.6% |
|
|
Loans
for purchase of equipment |
4,813 |
|
5,970 |
|
(1,157) |
|
-19.4% |
|
|
Accrued
interest and related expenses |
28,474 |
|
27,117 |
|
1,357 |
|
5.0% |
|
|
Total
Current Loans |
100,664 |
|
107,730 |
|
(7,066) |
|
-6.6% |
|
|
Notes
- principal |
167,705 |
|
184,946 |
|
(17,241) |
|
-9.3% |
|
|
Bank
and other financial entities loans - principal |
87,849 |
|
95,898 |
|
(8,049) |
|
-8.4% |
|
|
Loans
for purchase of equipment |
4,421 |
|
6,504 |
|
(2,083) |
|
-32.0% |
|
|
Accrued
interest and related expenses |
39,311 |
|
48,206 |
|
(8,895) |
|
-18.5% |
|
|
Total
Non Current Loans |
299,286 |
|
335,554 |
|
(36,268) |
|
-10.8% |
|
|
Total
Loans |
399,950 |
|
443,284 |
|
(43,334) |
|
-9.8% |
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents, and Financial Investments |
39,419 |
|
50,876 |
|
(11,457) |
|
-22.5% |
|
|
Net
Financial Debt |
(360,531) |
|
(392,408) |
|
31,877 |
|
-8.1% |
|
Telecom
Argentina S.A.
Consolidated Information
Nine-month
period and third quarter – Fiscal Year 2022
(in million Argentine Pesos)
3
- Segment Information |
|
|
|
|
|
|
|
|
(Segment information for periods ended as of September 30 of 2022 and 2021 as analyzed by the CEO, who periodically receives the
financial information of Telecom and its subsidiaries (in historical values)) |
As
of September 30, 2022 |
Services
rendered
in Argentina |
Services
rendered in
Argentina - Inflation
restatement |
Services
rendered in
Argentina restated
for inflation |
Other
abroad
segments |
Other
abroad
segments -
restatement for
inflation |
Other
abroad
segments restated
for inflation |
Eliminations |
Total |
Revenues |
346,952 |
94,307 |
441,259 |
24,944 |
6,691 |
31,635 |
(1,934) |
470,960 |
Operating
costs (without depreciation, amortization, and impairment of fixed assets) |
(249,748) |
(69,401) |
(319,149) |
(14,651) |
(3,956) |
(18,607) |
1,934 |
(335,822) |
Operating
income before D&A |
97,204 |
24,906 |
122,110 |
10,293 |
2,735 |
13,028 |
- |
135,138 |
|
|
|
|
|
|
|
|
|
Depreciation,
amortization and impairment of fixed assets |
|
|
|
|
|
(369,806) |
|
|
|
|
|
|
|
|
|
Operating
loss |
|
|
|
|
|
|
|
(234,668) |
Earnings
from associates |
|
|
|
|
|
|
|
342 |
Debt financial
expenses |
|
|
|
|
|
|
|
40,936 |
Other
financial results, net |
|
|
|
|
|
|
|
34,190 |
Net
income (loss) before income tax expenses |
|
|
|
|
|
(159,200) |
Income
tax expense |
|
|
|
|
|
|
|
(4,298) |
Net loss |
|
|
|
|
|
|
|
(163,498) |
|
|
|
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
|
|
|
Controlling
Company |
|
|
|
|
|
|
|
(164,873) |
Non-controlling
interest |
|
|
|
|
|
|
|
1,375 |
As
of September 30, 2021 |
Services
rendered
in Argentina |
Services
rendered in
Argentina - Inflation
restatement |
Services
rendered in
Argentina restated
for inflation |
Other
abroad
segments |
Other
abroad
segments -
restatement for
inflation |
Other
abroad
segments restated
for inflation |
Eliminations |
Total |
Revenues |
241,078 |
257,992 |
499,070 |
17,859 |
21,873 |
39,732 |
(2,555) |
536,247 |
Operating
costs (without depreciation, amortization, and impairment of fixed assets) |
(161,910) |
(177,731) |
(339,641) |
(10,514) |
(14,040) |
(24,554) |
2,555 |
(361,640) |
Operating
income before D&A |
79,168 |
80,261 |
159,429 |
7,345 |
7,833 |
15,178 |
- |
174,607 |
|
|
|
|
|
|
|
|
|
Depreciation,
amortization and impairment of fixed assets |
|
|
|
|
|
(172,438) |
Operating
income |
|
|
|
|
|
|
|
2,169 |
Earnings
from associates |
|
|
|
|
|
|
|
384 |
Debt financial
expenses |
|
|
|
|
|
|
|
38,837 |
Other
financial results, net |
|
|
|
|
|
|
|
17,152 |
Net
income (loss) before income tax expenses |
|
|
|
|
|
58,542 |
Income
tax expense |
|
|
|
|
|
|
|
(56,666) |
Net income |
|
|
|
|
|
|
|
1,876 |
|
|
|
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
|
|
|
Controlling
Company |
|
|
|
|
|
|
|
655 |
Non-controlling
interest |
|
|
|
|
|
|
|
1221 |
Telecom
Argentina S.A.
Consolidated
Information
Nine-month
period and third quarter – Fiscal Year 2022
(in million Argentine Pesos)
| 4
- | Consolidated Income Statements - restated by inflation (constant figures)
(Allows the understanding
of the variations of the Income Statement in real terms) |
|
09/30/22 |
|
09/30/21 |
|
Δ
$ |
|
Δ
% |
|
|
|
|
|
|
|
|
Revenues |
470,960 |
|
536,247 |
|
(65,287) |
|
-12.2% |
Consolidated
Operating Costs |
(705,628) |
|
(534,078) |
|
(171,550) |
|
32.1% |
Operating
(loss) income |
(234,668) |
|
2,169 |
|
(236,837) |
|
- |
Net
Financial results and earnings from associates |
75,468 |
|
56,373 |
|
19,095 |
|
33.9% |
Net
income (loss) before income tax expense |
(159,200) |
|
58,542 |
|
(217,742) |
|
- |
Income
tax expense |
(4,298) |
|
(56,666) |
|
52,368 |
|
-92.4% |
Net
(loss) Income |
(163,498) |
|
1,876 |
|
(165,374) |
|
- |
|
|
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
|
|
Controlling
Company |
(164,873) |
|
655 |
|
(165,528) |
|
- |
Non-controlling
interest |
1,375 |
|
1,221 |
|
154 |
|
12.6% |
|
|
|
|
|
|
|
|
Operating
income before D&A |
135,138 |
|
174,607 |
|
(39,469) |
|
-22.6% |
As
% of Revenues |
28.7% |
|
32.6% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Financial results |
09/30/22 |
|
09/30/21 |
|
Δ
$ |
|
Δ
% |
|
|
|
|
|
|
|
|
Debt
financial expenses |
|
|
|
|
|
|
|
Interests
on financial debt |
(3,997) |
|
(19,934) |
|
15,937 |
|
-79.9% |
Foreign
currency exhange losses on financial debt |
44,967 |
|
58,771 |
|
(13,804) |
|
-23.5% |
Debt
refinancing results |
(34) |
|
- |
|
(34) |
|
- |
Total
Debt financial expenses |
40,936 |
|
38,837 |
|
2,099 |
|
5.4% |
Other
financial results, net |
|
|
|
|
|
|
|
Gains
(losses) for operations with notes and bonds |
(12,162) |
|
(901) |
|
(11,261) |
|
- |
Other
foreign currency exhange gains (losses) |
2,020 |
|
9,591 |
|
(7,571) |
|
-78.9% |
Other
net interests and gains of investments |
773 |
|
(2,173) |
|
2,946 |
|
-135.6% |
Taxes
and bank expenses |
(4,649) |
|
(5,346) |
|
697 |
|
-13.0% |
Financial
expenses on pension benefits |
(430) |
|
(452) |
|
22 |
|
-4.9% |
Financial
discounts on assets, debts and other |
(2,215) |
|
(4,539) |
|
2,324 |
|
-51.2% |
RECPAM* |
50,853 |
|
20,972 |
|
29,881 |
|
142.5% |
Total
other financial results, net |
34,190 |
|
17,152 |
|
17,038 |
|
99.3% |
Total
Net Financial results |
75,126 |
|
55,989 |
|
19,137 |
|
34.2% |
*
Inflation restatement gain / (loss) |
|
|
|
|
|
|
|
Telecom
Argentina S.A.
Consolidated
Information
Nine-month
period and third quarter – Fiscal Year 2022
(in
million Argentine Pesos)
5 - |
Consolidated
Income Statements - restated by inflation (constant figures) |
|
Three Months Comparison |
|
09/30/22 |
|
09/30/21 |
|
Δ $ |
|
Δ
% |
|
|
|
|
|
|
|
|
Revenues |
148,238 |
|
176,175 |
|
(27,937) |
|
-15.9% |
Consolidated
Operating Costs |
(372,495) |
|
(184,614) |
|
(187,881) |
|
101.8% |
Operating
loss |
(224,257) |
|
(8,439) |
|
(215,818) |
|
- |
Net Financial
results and earnings from associates |
28,098 |
|
18,957 |
|
9,141 |
|
48.2% |
Net income
(loss) before income tax expense |
(196,159) |
|
10,518 |
|
(206,677) |
|
- |
Income tax
expense |
(6,224) |
|
(5,297) |
|
(927) |
|
17.5% |
Net income
(loss) |
(202,383) |
|
5,221 |
|
(207,604) |
|
- |
|
|
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
|
|
Controlling
Company |
(203,003) |
|
4,666 |
|
(207,669) |
|
- |
Non-controlling
interest |
620 |
|
555 |
|
65 |
|
11.7% |
|
|
|
|
|
|
|
|
Operating
income before D&A |
36,525 |
|
52,089 |
|
(15,564) |
|
-29.9% |
As % of Revenues |
24.6% |
|
29.6% |
|
|
|
|
Net
Financial results |
09/30/22 |
|
09/30/21 |
|
Δ
$ |
|
Δ
% |
Three
Months Comparison |
|
|
|
|
|
|
|
Debt financial
expenses |
|
|
|
|
|
|
|
Interests
on financial debt |
(1,236) |
|
(6,623) |
|
5,387 |
|
-81.3% |
Foreign currency
exhange losses on financial debt |
11,725 |
|
21,167 |
|
(9,442) |
|
-44.6% |
Debt refinancing
results |
(34) |
|
- |
|
(34) |
|
- |
Total Debt
financial expenses |
10,455 |
|
14,544 |
|
(4,089) |
|
-28.1% |
Other financial
results, net |
|
|
|
|
|
|
|
Gains (losses)
for operations with notes and bonds |
(794) |
|
977 |
|
(1,771) |
|
-181.3% |
Other foreign
currency exhange gains (losses) |
1,463 |
|
1,279 |
|
184 |
|
14.4% |
Other net
interests and gains of investments |
408 |
|
(108) |
|
516 |
|
- |
Taxes and
bank expenses |
(1,542) |
|
(1,833) |
|
291 |
|
-15.9% |
Financial
expenses on pension benefits |
(118) |
|
(136) |
|
18 |
|
-13.2% |
Financial
discounts on assets, debts and other |
(700) |
|
(1,394) |
|
694 |
|
-49.8% |
RECPAM* |
18,760 |
|
5,475 |
|
13,285 |
|
- |
Total other
financial results, net |
17,477 |
|
4,260 |
|
13,217 |
|
- |
Total Net
Financial results |
27,932 |
|
18,804 |
|
9,128 |
|
48.5% |
Telecom
Argentina S.A.
Consolidated
Information
Nine-month period
and third quarter – Fiscal Year 2022
(in million Argentine Pesos)
| 6
- | Breakdown
of consolidated revenues - restated by inflation (constant figures)
(Revenues as of 2021 restated to 2022 values include a variation due to the restatement
of approximately 92,8% vs. a restatement variation of 27,2% for revenues as of 2022) |
|
|
09/30/22 |
|
|
09/30/21 |
|
|
9M22
IAS 29 |
|
vs.
9M21 IAS 29 |
|
|
9M22
IAS 29 |
|
IAS
29 |
|
|
9M21
IAS 29 |
|
IAS
29 |
|
|
Δ
$ |
|
Δ
% |
|
|
|
Adjustment |
|
|
|
Adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
FROM SERVICES |
|
440,369 |
|
|
94,036 |
|
|
498,158 |
|
|
239,770 |
|
|
(57,789 |
) |
|
-11.6 |
% |
Mobile Services |
|
187,113 |
|
|
39,828 |
|
|
200,703 |
|
|
96,691 |
|
|
(13,590 |
) |
|
-6.8 |
% |
Internet Services |
|
105,070 |
|
|
22,623 |
|
|
113,620 |
|
|
54,741 |
|
|
(8,550 |
) |
|
-7.5 |
% |
Cable TV Services |
|
85,700 |
|
|
18,224 |
|
|
105,120 |
|
|
50,512 |
|
|
(19,420 |
) |
|
-18.5 |
% |
Fixed Telephony
and Data Services |
|
58,534 |
|
|
12,823 |
|
|
75,192 |
|
|
36,113 |
|
|
(16,658 |
) |
|
-22.2 |
% |
Other service
revenues |
|
3,952 |
|
|
538 |
|
|
3,523 |
|
|
1,713 |
|
|
429 |
|
|
12.2 |
% |
REVENUES
FROM EQUIPMENT SALES |
|
30,591 |
|
|
6,538 |
|
|
38,089 |
|
|
18,368 |
|
|
(7,498 |
) |
|
-19.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
|
470,960 |
|
|
100,574 |
|
|
536,247 |
|
|
258,138 |
|
|
(65,287 |
) |
|
-12.2 |
% |
| 7
- | Breakdown of consolidated revenues - restated by inflation (constant figures)
Three Months Comparison |
|
|
09/30/22 |
|
|
09/30/21 |
|
|
3Q22
IAS 29 |
|
vs.
3Q21 IAS 29 |
|
|
3Q22
IAS 29 |
|
IAS
29 |
|
|
3Q21
IAS 29 |
|
IAS
29 |
|
|
Δ
$ |
|
Δ
% |
|
|
|
Adjustment |
|
|
|
Adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
FROM SERVICES |
|
138,444 |
|
|
8,450 |
|
|
163,955 |
|
|
77,119 |
|
|
(25,511 |
) |
|
-15.6 |
% |
Mobile Services |
|
60,601 |
|
|
4,010 |
|
|
66,990 |
|
|
31,540 |
|
|
(6,389 |
) |
|
-9.5 |
% |
Internet Services |
|
32,728 |
|
|
2,045 |
|
|
38,542 |
|
|
18,120 |
|
|
(5,814 |
) |
|
-15.1 |
% |
Cable TV Services |
|
26,116 |
|
|
1,318 |
|
|
33,783 |
|
|
15,885 |
|
|
(7,667 |
) |
|
-22.7 |
% |
Fixed Telephony
and Data Services |
|
17,789 |
|
|
1,273 |
|
|
23,419 |
|
|
11,016 |
|
|
(5,630 |
) |
|
-24.0 |
% |
Other service
revenues |
|
1,210 |
|
|
(196) |
|
|
1,221 |
|
|
558 |
|
|
(11 |
) |
|
-0.9 |
% |
REVENUES
FROM EQUIPMENT SALES |
|
9,794 |
|
|
567 |
|
|
12,220 |
|
|
5,765 |
|
|
(2,426 |
) |
|
-19.9 |
% |
REVENUES |
|
148,238 |
|
|
9,017 |
|
|
176,175 |
|
|
82,884 |
|
|
(27,937 |
) |
|
-15.9 |
% |
Telecom Argentina S.A.
Consolidated
Information
Nine-month period and third quarter – Fiscal Year 2022
(in million Argentine Pesos)
8
- Consolidated Income Statements - restated by inflation (constant figures)
(Allows the understanding of the variations of the Income Statement in real terms)
| |
09/30/22 | |
09/30/21 | |
9M22 IAS 29 vs. 9M21 IAS 29 |
| |
9M22 IAS 29 | |
IAS 29 Adjustment | |
9M21 IAS 29 | |
IAS 29 Adjustment | |
Δ $ | |
Δ % |
Revenues | |
470,960 | |
100,574 | |
536,247 | |
278,109 | |
(65,287) | |
-12.2% |
Employee benefit expenses and severance payments | |
(115,470) | |
(22,964) | |
(110,453) | |
(57,126) | |
(5,017) | |
4.5% |
Interconnection and transmission costs | |
(14,574) | |
(3,074) | |
(19,544) | |
(10,166) | |
4,970 | |
-25.4% |
Fees for services, maintenance, materials and supplies | |
(56,503) | |
(13,090) | |
(61,220) | |
(32,595) | |
4,717 | |
-7.7% |
Taxes and fees with the regulatory authority | |
(36,272) | |
(7,724) | |
(41,368) | |
(21,468) | |
5,096 | |
-12.3% |
Commissions and advertising | |
(27,731) | |
(5,597) | |
(30,255) | |
(15,647) | |
2,524 | |
-8.3% |
Cost of equipments and handsets | |
(21,745) | |
(6,317) | |
(27,001) | |
(15,280) | |
5,256 | |
-19.5% |
Programming and content costs | |
(29,560) | |
(6,378) | |
(36,663) | |
(19,106) | |
7,103 | |
-19.4% |
Bad debt expenses | |
(11,781) | |
(2,571) | |
(9,814) | |
(5,041) | |
(1,967) | |
20.0% |
Other operating income and expenses | |
(22,186) | |
(5,218) | |
(25,322) | |
(13,586) | |
3,136 | |
-12.4% |
Subtotal Operating costs before D&A | |
(335,822) | |
(72,933) | |
(361,640) | |
(190,015) | |
25,818 | |
-7.1% |
Operating income before D&A | |
135,138 | |
27,641 | |
174,607 | |
88,094 | |
(39,469) | |
-22.6% |
Depreciation, amortization ('D&A') and impairment of fixed assets | |
(369,806) | |
(324,607) | |
(172,438) | |
(135,001) | |
(197,368) | |
114.5% |
Operating income (loss) | |
(234,668) | |
(296,966) | |
2,169 | |
(46,907) | |
(236,837) | |
- |
Earnings from associates | |
342 | |
(118) | |
384 | |
179 | |
(42) | |
-10.9% |
Net financial results | |
34,190 | |
46,218 | |
17,152 | |
17,707 | |
17,038 | |
99.3% |
Financial expenses on debt | |
40,936 | |
172,643 | |
38,837 | |
89,855 | |
2,099 | |
5.4% |
Net income (loss) before income tax expense | |
(159,200) | |
(78,223) | |
58,542 | |
60,834 | |
(217,742) | |
- |
Income tax expense | |
(4,298) | |
(23,711) | |
(56,666) | |
(56,311) | |
52,368 | |
-92.4% |
Net income (loss) | |
(163,498) | |
(101,934) | |
1,876 | |
4,523 | |
(165,374) | |
- |
Attributable to: | |
| |
| |
| |
| |
| |
|
Controlling Company | |
(164,873) | |
(102,148) | |
655 | |
4,095 | |
(165,528) | |
- |
Non-controlling interest | |
1,375 | |
214 | |
1,221 | |
428 | |
154 | |
12.6% |
9
- Consolidated Income Statements - restated by inflation (constant figures)
Three
Months Comparison
| |
09/30/22 | |
09/30/21 | |
3Q22 IAS 29 vs. 3Q21 IAS 29 |
| |
3Q22 IAS 29 | |
IAS 29
Adjustment | |
3Q21 IAS 29 | |
IAS 29
Adjustment | |
Δ $ | |
Δ % |
Revenues | |
148,238 | |
9,017 | |
176,175 | |
82,884 | |
(27,937) | |
-15.9% |
Employee benefit expenses and severance payments | |
(41,651) | |
(2,436) | |
(40,040) | |
(18,944) | |
(1,611) | |
4.0% |
Interconnection and transmission costs | |
(4,672) | |
(272) | |
(6,251) | |
(2,942) | |
1,579 | |
-25.3% |
Fees for services, maintenance, materials and supplies | |
(19,043) | |
(1,700) | |
(20,205) | |
(9,655) | |
1,162 | |
-5.8% |
Taxes and fees with the regulatory authority | |
(11,425) | |
(692) | |
(13,491) | |
(6,348) | |
2,066 | |
-15.3% |
Commissions and advertising | |
(9,721) | |
(544) | |
(10,153) | |
(4,776) | |
432 | |
-4.3% |
Cost of equipments and handsets | |
(6,552) | |
(989) | |
(8,557) | |
(4,241) | |
2,005 | |
-23.4% |
Programming and content costs | |
(9,167) | |
(567) | |
(11,564) | |
(5,443) | |
2,397 | |
-20.7% |
Bad debt expenses | |
(3,909) | |
(250) | |
(3,587) | |
(1,678) | |
(322) | |
9.0% |
Other operating income and expenses | |
(5,573) | |
(402) | |
(10,238) | |
(5,171) | |
4,665 | |
-45.6% |
Subtotal Operating costs before D&A | |
(111,713) | |
(7,852) | |
(124,086) | |
(59,198) | |
12,373 | |
-10.0% |
Operating income before D&A | |
36,525 | |
1,165 | |
52,089 | |
23,686 | |
(15,564) | |
-29.9% |
Depreciation, amortization ('D&A') and impairment of fixed assets | |
(260,782) | |
(244,777) | |
(60,528) | |
(46,679) | |
(200,254) | |
- |
Operating loss | |
(224,257) | |
(243,612) | |
(8,439) | |
(22,993) | |
(215,818) | |
- |
Earnings from associates | |
166 | |
(55) | |
153 | |
98 | |
13 | |
8.5% |
Financial expenses on debt | |
10,455 | |
73,121 | |
14,544 | |
28,296 | |
(4,089) | |
-28.1% |
Net financial results | |
17,477 | |
20,106 | |
4,260 | |
4,064 | |
13,217 | |
- |
Net income (loss) before income tax expense | |
(196,159) | |
(150,440) | |
10,518 | |
9,465 | |
(206,677) | |
- |
Income tax expense | |
(6,224) | |
(12,132) | |
(5,297) | |
(726) | |
(927) | |
17.5% |
Net income (loss) | |
(202,383) | |
(162,572) | |
5,221 | |
8,739 | |
(207,604) | |
- |
Attributable to: | |
| |
| |
| |
| |
| |
|
Controlling Company | |
(203,003) | |
(162,596) | |
4,666 | |
8,490 | |
(207,669) | |
- |
Non-controlling interest | |
620 | |
24 | |
555 | |
249 | |
65 | |
11.7% |
Telecom
Argentina S.A.
Consolidated
Information
Nine-month
period and third quarter – Fiscal Year 2022
(in million Argentine Pesos)
10
- Summary of comparative consolidated statements of cash flow
|
|
09/30/22 |
09/30/21 |
|
|
Net cash flows provided by operating activities |
130,662 |
165,601 |
|
|
Investing Activities |
|
|
|
|
Property, plant and equipment acquisitions |
(72,735) |
(89,487) |
|
|
Intangible asset acquisitions |
(3,559) |
(3,278) |
|
|
Payment for acquisition of subsidiary |
(347) |
- |
|
|
Proceeds from dividends |
211 |
386 |
|
|
Proceeds from the sale of property, plant and equipment and intangible assets |
305 |
146 |
|
|
Investments not considered as cash and cash equivalents |
(37,836) |
(62,638) |
|
|
Net cash flows used in investing activities |
(113,961) |
(154,871) |
|
|
Net cash flows used in financing activities |
(13,765) |
(21,836) |
|
|
Net foreign exchange differences and RECPAM on cash and cash equivalents |
(2,968) |
(4,089) |
|
|
Total cash and cash equivalents (used) provided during the period |
(32) |
(15,195) |
|
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: |
November 9, 2022 |
By: |
/s/ Luis Fernando Rial Ubago |
|
|
|
Name: |
Luis Fernando Rial Ubago |
|
|
|
Title: |
Responsible for Market Relations |
Telecom Argentina (NYSE:TEO)
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