Telecom Argentina's Financial Performance in First Half of 2024

In the first half of 2024, the Company’s consolidated revenues reached P$1,666,979 million, reflecting a 13.3% decrease in constant currency compared to the same period in 2023. The decline is attributed to the real appreciation of the Argentine peso against the US dollar, driven by higher inflation rates. Despite the revenue drop, the Company reported a significant net income of P$859,223 million, a stark increase from P$146,409 million in 1H23, primarily due to gains from exchange rate differences. Mobile service revenues in Argentina fell to P$608,129 million, a decrease of 15.3% year-on-year. In contrast, Paraguay saw a modest increase in mobile service revenues, reaching P$64,280 million, up 5.7% from the previous year. The average revenue per user (ARPU) for broadband services also showed slight growth, indicating some resilience in the market despite overall revenue challenges. The Company faced notable losses related to deferred tax applications, amounting to P$355,970 million in 1H24, compared to an income of P$141,241 million in the prior year. Additionally, a recent disbursement of USD 11.6 million was completed, aimed at refinancing existing debt and managing upcoming obligations. Looking ahead, the Company is navigating a complex landscape influenced by political and economic conditions in Argentina and neighboring countries. Key challenges include inflation, currency devaluation, and regulatory changes, which could impact its operational strategies and financial performance in the future.