Table
of Contents
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 May 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:
Fernando
Balmaceda
(5411)
4968 5222
Luis
Fernando Rial Ubago
(5411)
5112 7218
|
Market
Cap (NYSE: TEO): US$2,136.5 million*
|
Telecom Argentina S.A.
announces consolidated results
for the first quarter of
fiscal year 2022 (“1Q22”)
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 March 31, 2018 inclusive. Accordingly, the reported figures
corresponding to 1Q22 include the effects of the adoption of inflationary accounting in accordance with IAS 29. Finally, comments related
to variations of results of 1Q22 and vs. 1Q21 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 March 31
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.
| § | The results included for comparative
purposes (March 2021) contain the effect of the year over year inflation as of March 2022, which was 55.1%. |
| § | Consolidated Revenues amounted
to P$117,372 million in 1Q22 (-8.3% in constant currency vs. 1Q21), in a context of high inflation. Service Revenues totaled P$109,378
million (-8.6% in constant currency vs. 1Q21). |
| § | We have increased the number
of clients versus 1Q21 in our 3 main segments. Mobile clients in Argentina reached 20.2 million in 1Q22 (+1.4 million vs. 1Q21), cable
TV subscribers totaled approximately 3.5 million (+11 thousand vs. 1Q21), while broadband accesses amounted to almost 4.2 million (+66
thousand vs. 1Q21). |
| § | Operating Income before Depreciation
and Amortization amounted to P$40,691 million in 1Q22 (-12.7% vs. 1Q21), while our Operating margin before D&A was 34.7%. |
| § | The Company’s Net Income
amounted to P$23,745 million in 1Q22 (+69.9% vs. $13,978 million in 1Q21). Our Net financial results were positive and totaled P$22,340
million, while income tax charge was positive in $28 million. |
| § | Investments (including rights
of use assets) reached P$18,783 million in 1Q22, equivalent to 16.0% of our Consolidated Revenues. |
| § | Net Financial Debt amounted
to P$251,888 million in 1Q22 (-12.4% in constant currency vs. 1Q21). |
*Market Cap as of May 9th, 2022
**Unaudited non financial data
| (in
million P$ adjusted by inflation, except where noted)** |
IAS
29
As of March 31,
2022 |
IAS
29
As of March 31,
2021 |
Δ
$
|
Δ
%
|
| Consolidated Revenues |
117,372 |
128,036 |
(10,664) |
-8.3% |
| Operating Income before D&A |
40,691 |
46,602 |
(5,911) |
-12.7% |
| Operating Income |
1,257 |
8,356 |
(7,099) |
-85.0% |
| Net income before income tax expense |
23,717 |
18,985 |
4,732 |
24.9% |
| Net income attributable to Controlling
Company |
23,526 |
13,558 |
9,968 |
73.5% |
| Shareholders' equity attributable
to Controlling Company |
650,675 |
683,665 |
(32,990) |
-4.8% |
| Net Financial Debt |
(251,888) |
(287,606) |
35,718 |
-12.4% |
| Investments in PP&E, intangible
assets & rights of use assets * |
18,783 |
30,279 |
(11,496) |
-38.0% |
| |
|
|
|
|
| Fixed lines in service (in thousand
lines) *** |
2,297 |
2,752 |
(455) |
-16.5% |
| Mobile customers (in thousand) |
22,405 |
21,004 |
1,401 |
6.7% |
| Personal (Argentina) |
20,163 |
18,796 |
1,367 |
7.3% |
| Núcleo
(Paraguay) -including Wimax customers - |
2,242 |
2,208 |
34 |
1.6% |
| Broadband accesses in Argentina (in
thousand) |
4,238 |
4,172 |
66 |
1.6% |
| Pay TV Subscribers (in thousand) |
3,535 |
3,525 |
11 |
0.3% |
| |
|
|
|
|
| Average Billing per user (ARBU) Fixed
Telephony / voice (in P$ - Restated by inflation) |
970.9 |
914.4 |
56.5 |
6.2% |
| Average Revenue per user (ARPU) Mobile
Services - Personal (in P$ - Restated by inflation) |
682.5 |
753.0 |
(70.5) |
-9.4% |
| Average Revenue per user (ARPU) Broadband
(in P$ - Restated by inflation) |
2,000.5 |
2,107.0 |
(106.5) |
-5.1% |
| Average Revenue per user (ARPU) Cable
TV (in P$ - Restated by inflation) |
1,990.2 |
2,389.6 |
(399.4) |
-16.7% |
*
(in constant measuring unit – includes $2.247 million corresponding to additions of rights of use assets as of March 31, 2022)
**(Figures
may not sum up due to rounding)
***
(does not include IP telephony lines, which as of March 31, 2022 amounted to approximately 807 thousand)
Buenos
Aires, May 10, 2022 - Telecom Argentina S.A. (‘Telecom
Argentina’) - (NYSE: TEO; BYMA: TECO2), announced today a net income of P$23,745 million for the period ended March 31, 2022
(+69.9% vs. 1Q21). The net income attributable to the controlling company was P$23,526 million (+73.5% vs. 1Q21).
Comparative
figures for the previous fiscal year have been restated so that the resulting information is presented in the current measurement unit
as of March 31, 2022.
The
following table shows the evolution of the consumer price index (National CPI - according to INDEC’s official statistics) as of
March 31, 2022 and as of December 31, 2021 and 2020, which were used to restate the figures in constant currency:
| |
As
of December 31,
2020 |
As
of December 31,
2021 |
As
of March 31,
2022 |
| Price
Index Variation |
|
|
|
| Annual |
36.1% |
50.9% |
55.1% |
| 3
month cumulative (since Dec-21) |
n/a |
n/a |
16.1% |
During
the 1Q22, Consolidated Revenues amounted to P$117,372 million, from which Service Revenues totaled P$109,378 million.
| |
IAS
29
1Q22 |
IAS
29
IQ21 |
Δ $ |
Δ % |
| Consolidated
Revenues (MMP$) |
117,372 |
128,036 |
(10,664) |
(8.3%) |
| Net
Income attributable to Controlling Company (MMP$) |
23,526 |
13,558 |
9,968 |
73.5% |
| Net
income attributable to Controlling Company per Share (P$) |
10.9 |
6.3 |
4.6 |
|
| Net
income attributable to Controlling Company per ADR (P$) |
54.6 |
31.5 |
23.1 |
|
| Operating
income before D&A * |
34.7% |
36.4% |
|
|
| Operating
income * |
1.1% |
6.5% |
|
|
| Net
income * |
20.2% |
10.9% |
|
|
| *As
a percentage of Consolidated Revenues |
|
|
|
|
| Note:
The average of ordinary shares outstanding considered amounted to and 2,153,688,011 as of 1Q22 and 1Q21 |
Consolidated
Operating Revenues
| Mobile
Services |
 |
| |
| As
of March 31, 2022, total mobile clients in Argentina and Paraguay amounted to 22.4 million. In 1Q22, total mobile services revenues
represented P$45,377 million (-P$1,935 million vs. 1Q21). |
| |
| Mobile
Services in Argentina |
| |
| As
of March 31, 2022, total mobile subscribers amounted to more than 20.2 million (+1.4 million vs. 1Q21). Postpaid clients represented
41% of our subscriber base. |
| |
| In
1Q22, mobile service revenues in Argentina amounted to P$41,529 million (-1.4% vs 1Q21). Mobile internet revenues were 86% of mobile
service revenues. The average monthly revenue per user (‘ARPU’ – restated in constant currency as of March 31,
2022) amounted to P$682.5 during 1Q22 (-9.4% vs. 1Q21). The effect generated by the inflation adjustment as of March 31, 2022
(included in the ARPU) amounted to P$37.7 and P$287.4, for 1Q22 and 1Q21, respectively. Mobile churn was 2.3% (vs. 1.4% in 1Q21). |
| Commercial
Initiatives |
 |
| |
| Personal
Pay continued improving its value proposition and adding new features. Currently, our digital wallet allows customers to pay, save
and transfer money, efficiently and safely. Users can add money to their account through transfers in cash from authorized recharge
centers, recharge their mobile phones, and pay their bills in the case of postpaid clients. |
| |
| Personal
in Paraguay (‘Núcleo’) |
| |
| As
of March 31, 2022, Núcleo’s subscriber base reached 2.2 million clients. Prepaid and postpaid customers represented
81% and 19%, respectively. |
| |
| Núcleo´s
mobile service revenues during 1Q22, amounted to P$3,848 million (-25.8% vs. 1Q21), mainly due to decrease in the 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$21,784 million in 1Q22 (-P$4,162 million vs. 1Q21). Cable TV subscribers totaled 3.5 million (+11 thousand
vs. 1Q21). The monthly Cable TV ARPU (restated in constant currency as of March 31, 2022) reached P$1,990.2 during 1Q22 (vs
P$2,389.6 in 1Q21). The effect generated by the restatement in terms of the measuring unit as of March 31, 2022 included in
the ARPU amounts to P$116 and P$919, for the 1Q22 and 1Q21, respectively. The average monthly churn during was 1.3% and 1.2% as of
March 31, 2022 and 2021, respectively. |
| |
| Flow
continued to strengthen its offering by incorporating new products in music, national and international films, and gaming. |
| |
| During
March 2022, Flow broadcasted the Lollapalooza Argentina international festival through live streaming. More than one million
people enjoyed the event through four exclusive channels. |
| Fixed
Telephony and Data Services |
 |
| |
| Revenues
generated by fixed telephony and data reached P$14,821 million in 1Q22 (-P$3,533 million vs. 1Q21). |
| |
| The
monthly fixed voice ARPU (restated in constant currency as of March 31, 2022) reached P$970.9 (vs. P$914.4 in 1Q21). The effect
generated by the restatement in terms of the measuring unit as of March 31, 2022, included in the ARPU amounted to P$134.4 and
P$350.1 for the 1Q22 and 1Q21, respectively. |
| |
| During
the first quarter of the year, the following initiatives were developed in the corporate segment: |
| |
| -
Presented a new tool called "Fortalecimiento
de usuarios", which helps to reduce the risk of cyberattacks on companies. |
- A technological alliance with
Frávega was announced, for the contracting of the Amazon Web Services’ (AWS) cloud solutions.
- The Company participated in Expo
Agro 2022, presenting our agribusiness IoT solutions portfolio and offering our connectivity during the exhibition.
- We were the official sponsor and
technological partner of the Argentina Open tennis tournament, installing 4G technology to enhance mobile coverage.
Internet
Services
Internet services revenues totaled
P$26,439 million during 1Q22 (-P$643 million vs. 1Q21). As of March 31, 2022, total broadband accesses reached approximately 4.2
million (+66 thousand vs. 1Q21).
Additionally, broadband ARPU (restated
in constant currency as of March 31, 2022) amounted to P$2,000.5 per month in 1Q22 (vs. P$2,107 in 1Q21). The effect generated by
the restatement in terms of the measuring unit as of March 31, 2022, included in the ARPU amounted to approximately P$114.9 and P$810.9,
for the 1Q22 and 1Q21, respectively.
The average monthly churn rate for
the 1Q22 was 1.5% (vs. 1.3% in 1Q21). As of 1Q22, 74% of our total customer base had a broadband service of 50Mb or higher (this percentage
was 61% as of 1Q21).
Revenues from equipment sales
Equipment revenues amounted to P$7,994
million (-P$430 million vs. 1Q21). Said decrease was mainly due to a drop of 7% in the volume of handsets sold, which have increased their
average price due to the devaluation of the Argentine peso.
Consolidated Operating
Costs
Consolidated Operating Costs (including
D&A and impairment of fixed assets) totaled P$116,115 million in 1Q22 (-P$3,565 million or -3.0% vs. 1Q21). Excluding D&A and
impairment of fixed assets, operating costs experienced a reduction of 5.8%.
Our costs breakdown was as follows:
- Employees benefits and severance
payments: P$24,218 million (+1.8% vs. 1Q21). Total employees amounted to 22,444 as of 1Q22.
- Interconnection and transmission
costs (including roaming, international settlement charges and lease of circuits) were P$3,587 million (-27.6% vs. 1Q21). This saving
was mainly due to a new business dynamic that optimizes our links and sites which has offset higher technology prices due to the devaluation
of the Argentine peso.
- Fees for services, maintenance,
materials and supplies: P$12,352 million (-13.3% vs. 1Q21). Fees for services and maintenance and material costs decreased by P$607 million
and P$1.309 million vs. 1Q21, respectively.
- Taxes and fees paid to regulatory
authorities: P$8,975 million (-9.9% vs. 1Q21). This decrease was mainly due to lower sales during 1Q22 vs 1Q21. These costs represent
7.6% and 7.8% of total revenues as of 1Q22 and 1Q21, respectively.
- Commissions and advertising (commissions
paid to agents, collection fees and other commissions): P$6,425 million (-5.5% vs. 1Q21). Said decrease was mainly explained by a reduction
in advertising costs.
- Cost of handsets sold: P$6,011
million (-0.9% vs. 1Q21). P$5,689 million were related to the cost of sales of devices in Argentina, which decreased vs. 1Q21 mainly due
to lower volume of handsets sold. Their purchase prices were also affected by the devaluation of the Argentine peso.
- Programming and content costs:
P$7,497 million (-20.5% vs. 1Q21). Said reduction was mainly generated by commercial efficiencies, which were partially offset by price
increases in almost all of our broadcasting signals.
- Other Costs totaled P$7,436 million
(-24.0% vs. 1Q21). Bad debt expenses reached P$3,199 million (+98.9% vs. 1Q21).
Our bad debt ratio was 2.7% as of
March 31, 2022 (vs. 1.3% in 1Q21). The increase was mainly explained by the harder economic situation in Argentina, which has a direct
impact on our clients´ incomes.
Other operating costs (including
charges for lawsuits and other contingencies, energy and other public services, insurance, rents and internet capacity) totaled P$4,237
million (-3.4% vs. 1Q21). This decrease was mainly related to lower energy costs, rental charges, and internet capacity, which were partially
offset by higher lawsuits and other contingency charges.
- Depreciation, amortization and
impairment of fixed assets amounted to P$39,434 million (+3.1% vs. 1Q21). This increase was due to the impact of the amortization of assets
incorporated after March 31, 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$22,340 million in 1Q22 (vs. P$10,502 million in 1Q21), mainly due to:
| in million of P$ |
1Q21 |
1Q22 |
Var |
| RECPAM |
5,484 |
11,920 |
6,436 |
| Net Interests |
(4,665) |
156 |
4,821 |
| FX results |
12,561 |
14,708 |
2,147 |
| Results of investments |
(537) |
(2,657) |
(2,120) |
| Others |
(2,341) |
(1,787) |
554 |
| Total |
10,502 |
22,340 |
11,838 |
Income Tax
Our income tax includes the following
effects:
(i) the
tax to be paid according to local tax legislation, and
(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.
Our income tax amounted to a
positive amount of P$28 million in 1Q22 (vs. a loss of P$5,007 million in 1Q21). The tax paid according to item (i) above
amounted to P$10,967 million in 1Q22 (vs. $161 million in 1Q21) and the income tax effect related to the application of the deferred
tax method described in item (ii) above amounted to a gain of P$10,995 million in 1Q22 (vs. a loss of P$4,846 million in
1Q21).
On May 6, 2022, the Company
filed the Income Tax affidavit corresponding to fiscal year 2021, including:
(i) a
restatement of the tax amortizations of all its fixed assets and intangible assets pursuant to the requirements of sections 87 and 88
of the Income Tax Law;
(ii) the
allocation of the computable tax losses carry forward from previous years in accordance with the procedure provided for in section
25 of said Law.
For further details on the abovementioned,
refer to Note 13 to the Financial Statements as of March 31, 2022.
Consolidated Net Financial
Debt
As of March 31, 2022, our net
financial debt (cash, cash equivalents plus financial investments and financial NDF & interest rate swaps minus loans) amounted
to P$251,888 million, decreasing P$35,718 million (-12.4%) when compared to the consolidated net financial debt as of March 31, 2021
adjusted by inflation.
Investments in PP&E, intangible assets and
rights of use assets
During
the 1Q22, the Company invested (including rights of use assets) P$18,783 million (-38.0% vs. 1Q21). Said investments represented 16.0%
of consolidated revenues in 1Q22, and were focused on:
| · | Projects related to the expansion of TV and
internet services to improve our 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 (Fiber
to the home) architecture. |
| · | New customer contact systems. |
Relevant Financings during 1Q22
Issuance of Class 12
and 13 Local Notes
Class 12
Issuance Date: March 9,
2022.
Amount Issued: US$22.7 million to be paid in
Argentine pesos at the applicable exchange rate (equivalent to P$2.458 million at the Issuance Date)
Maturity Date: March 9, 2027.
Amortization: Bullet.
Interest Rate and payments: 1.00% p.a, quarterly
interest payments.
Class 13
Issuance Date: March 9, 2022.
Amount Issued: P$2.347 million
Maturity Date: September 9, 2023.
Amortization: Bullet.
Interest Rate and payments: BADLAR + 1.50% p.a,
quarterly interest payments.
Loan with China Development
Bank Shenzhen Branch (CDB):
During the first quarter of 2022,
the Company received new disbursements under this credit facility for a total of RMB 120.4 million, equivalent to P$2,062 million.
Finnvera
On March 31, 2022, the Company
received a disbursement of US$11.4 million, drawing the total amount under this credit facility.
Relevant Events after March 31,
2022
Preliminary injunction
On April 22, 2022, we informed
of the decision rendered by the Federal Administrative Litigation Matters Court No. 8 in the proceedings “Telecom Argentina
S.A. a/EN-Enacom and other re. preliminary injunction (Autonomous)” (Docket No. 12,881/2020) whereby the Court decided
to further extend for a period of 6 (six) months the preliminary injunction previously granted to us according to section 5 of Law N°
26,854.
Ordinary and Extraordinary
General Shareholders’ Meeting held on April 27, 2022
The Ordinary and Extraordinary General
Shareholders’ Meeting held on April 27, 2022 approved, among other matters, the following:
The Board’s proposal, adjusted
as of March 31, 2022 using the National Consumer Price Index (National CPI) published on April 13, 2022 in accordance with the
provisions of CNV Resolution No. 777/2018, with respect to Retained Earnings as of December 31, 2021 which reported a positive
balance of P$ 10,056,956,479, which proposal consisted of the following:
| i) | allocating P$ 502,847,824 to establish the Legal Reserve; |
| ii) | allocating P$ 9,554,108,655 to the “Facultative Reserve to maintain the level of capital investments
and the current level of solvency of the Company”; and |
| iii) | Reclassify the amount of P$ 18,817,248,927, from the “Facultative Reserve to maintain the capital
investments level and the current level of solvency of the Company” account (which consequently will amount to P$ 63,181,266,161)
by charging that amount to the “Share Premium” account. |
- Granting the Board of Directors
the authority to withdraw, before June 30, 2022, the “Facultative Reserve to maintain the capital investments level and the
current level of solvency of the Company” in an amount which allows to distribute a combination of 2030 Global Bonds and 2035 Global
Bonds as dividends in kind with a market value as of its valuation date of up to P$ 41,000 million.
Núcleo S.A. - Dividend
distribution
Nucleo's Ordinary Shareholders' Meeting held on April 21, 2022 decided to distribute dividends
for a total of Guaraníes 150,000 million (equivalent to $2,473 million as of the date of the Shareholders' Meeting). Dividends
will be payable in two installments (May and October 2022).
*******
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 March 31, 2022, Telecom Argentina had 2,153,688,011 shares issued and outstanding. |
For more information,
please contact Investor Relations:
|
Fernando Balmaceda
(5411) 4968 5222 |
Luis Fernando Rial Ubago
(5411) 5112 7218 |
Tomás Pellicori
(5411) 5524 7692 |
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
First quarter - Fiscal Year 2022
(In million of Argentine pesos)
| 1- |
Consolidated
Balance Sheet |
|
|
|
|
|
|
|
| |
(Restated
by inflation, comparative figures in constant currency as of March 2022) |
|
|
|
|
| |
|
|
|
|
|
| |
|
03/31/22 |
|
12/31/21 |
Δ
$ |
Δ
% |
| |
Cash and cash
equivalents |
21,505 |
|
23,039 |
(1,534) |
-6.7% |
| |
Financial Investments |
25,088 |
|
12,519 |
12,569 |
100.4% |
| |
Trade receivables |
26,295 |
|
26,178 |
117 |
0.4% |
| |
Other Receivables |
11,425 |
|
10,267 |
1,158 |
11.3% |
| |
Inventories |
2,251 |
|
3,616 |
(1,365) |
-37.7% |
| |
Total current
assets |
86,564 |
|
75,619 |
10,945 |
14.5% |
| |
Trade receivables |
79 |
|
84 |
(5) |
-6.0% |
| |
Goodwill |
440,166 |
|
440,160 |
6 |
0.0% |
| |
Property, plant
and equipment ('PP&E') |
506,707 |
|
523,676 |
(16,969) |
-3.2% |
| |
Intangible assets |
161,938 |
|
167,273 |
(5,335) |
-3.2% |
| |
Right-of-use assets |
37,545 |
|
38,785 |
(1,240) |
-3.2% |
| |
Other Receivables |
6,671 |
|
6,928 |
(257) |
-3.7% |
| |
Total non-current
assets |
1,153,106 |
|
1,176,906 |
(23,800) |
-2.0% |
| |
TOTAL ASSETS |
1,239,670 |
|
1,252,525 |
(12,855) |
-1.0% |
| |
Trade payables |
45,097 |
|
57,142 |
(12,045) |
-21.1% |
| |
Financial debt |
80,375 |
|
75,293 |
5,082 |
6.7% |
| |
Salaries and social
security payables |
21,129 |
|
25,841 |
(4,712) |
-18.2% |
| |
Taxes payables |
23,176 |
|
16,165 |
7,011 |
43.4% |
| |
Dividend Payable |
5,930 |
|
4,599 |
1,331 |
- |
| |
Lease liabilities |
6,048 |
|
7,115 |
(1,067) |
-15.0% |
| |
Other liabilities |
3,524 |
|
3,546 |
(22) |
-0.6% |
| |
Provisions |
2,096 |
|
2,491 |
(395) |
-15.9% |
| |
Total current
liabilities |
187,375 |
|
192,192 |
(4,817) |
-2.5% |
| |
Trade payables |
886 |
|
1,272 |
(386) |
-30.3% |
| |
Financial debt |
218,106 |
|
234,521 |
(16,415) |
-7.0% |
| |
Salaries and social
security payables |
1,570 |
|
1,794 |
(224) |
-12.5% |
| |
Deferred income
tax liabilities |
146,046 |
|
156,963 |
(10,917) |
-7.0% |
| |
Lease liabilities |
13,701 |
|
14,841 |
(1,140) |
-7.7% |
| |
Other liabilities |
1,380 |
|
1,452 |
(72) |
-5.0% |
| |
Provisions |
10,128 |
|
11,113 |
(985) |
-8.9% |
| |
Total non-current
liabilities |
391,817 |
|
421,956 |
(30,139) |
-7.1% |
| |
TOTAL LIABILITIES |
579,192 |
|
614,148 |
(34,956) |
-5.7% |
| |
|
|
|
|
|
|
| |
Equity attributable
to Controlling Company |
650,675 |
|
628,429 |
22,246 |
3.5% |
| |
Non-controlling
interest |
9,803 |
|
9,948 |
(145) |
-1.5% |
| |
TOTAL EQUITY |
660,478 |
|
638,377 |
22,101 |
3.5% |
| |
TOTAL LIABILITIES
AND EQUITY |
1,239,670 |
|
1,252,525 |
(12,855) |
-1.0% |
| 2- |
Consolidated
Loans |
| |
(Monetary
items) |
| |
|
03/31/22 |
|
12/31/21 |
|
Δ
$ |
|
Δ
% |
| |
Bank overdrafts
- principal |
17,011 |
|
14,142 |
|
2,869 |
|
20.3% |
| |
Bank and other
financial entities loans - principal |
38,339 |
|
37,812 |
|
527 |
|
1.4% |
| |
Notes - principal |
1,219 |
|
- |
|
1,219 |
|
- |
| |
NDF |
33 |
|
215 |
|
(182) |
|
-84.7% |
| |
Loans for purchase
of equipment |
3,910 |
|
4,172 |
|
(262) |
|
-6.3% |
| |
Accrued interest
and related expenses |
19,863 |
|
18,952 |
|
911 |
|
4.8% |
| |
Total Current
Loans |
80,375 |
|
75,293 |
|
5,082 |
|
6.7% |
| |
Notes - principal |
125,674 |
|
129,260 |
|
(3,586) |
|
-2.8% |
| |
Bank and other
financial entities loans - principal |
60,307 |
|
67,024 |
|
(6,717) |
|
-10.0% |
| |
NDF |
- |
|
- |
|
- |
|
- |
| |
Loans for purchase
of equipment |
4,146 |
|
4,545 |
|
(399) |
|
-8.8% |
| |
Accrued interest
and related expenses |
27,979 |
|
33,692 |
|
(5,713) |
|
-17.0% |
| |
Total Non Current
Loans |
218,106 |
|
234,521 |
|
(16,415) |
|
-7.0% |
| |
Total Loans |
298,481 |
|
309,814 |
|
(11,333) |
|
-3.7% |
| |
|
|
|
|
|
|
|
|
| |
Cash and cash
equivalents, and Financial Investments |
46,593 |
|
35,558 |
|
11,035 |
|
31.0% |
| |
Net
Financial Debt |
(251,888) |
|
(274,256) |
|
22,368 |
|
-8.2% |
TELECOM
ARGENTINA S.A.
Consolidated
Information
First
quarter - Fiscal Year 2022
(In
million of Argentine pesos)
| 3-
Segment Information |
| (Segment
information for periods ended as of March 31 of 2022 and 2021 as analyzed by the CEO, who receive periodically the financial information
of Telecom and its subsidiaries (in historical values)) |
| |
|
Services
rendered in |
Services
rendered in |
|
Other
abroad |
Other
abroad |
|
|
| |
Services
rendered |
Argentina
- Inflation |
Argentina
restated |
Other
abroad |
segments
- |
segments
restated |
Eliminations |
Total |
| As
of March 31, 2022 |
in
Argentina |
restatement |
for
inflation |
segments |
restatement
for |
for
inflation |
|
|
| |
|
|
|
|
inflation |
|
|
|
| Revenues |
103,727 |
6,389 |
110,116 |
7,347 |
434 |
7,781 |
(525) |
117,372 |
| Operating
costs (without depreciation, amortization,
and impairment of fixed assets) |
(66,969) |
(5,494) |
(72,463) |
(4,482) |
(261) |
(4,743) |
525 |
(76,681) |
|
|
|
|
|
|
|
|
|
| Operating
income before D&A |
36,758 |
895 |
37,653 |
2,865 |
173 |
3,038 |
- |
40,691 |
| |
|
|
|
|
|
|
|
|
| Depreciation,
amortization and impairment of fixed assets |
|
|
|
|
|
|
|
(39,434) |
| Operating
income |
|
|
|
|
|
|
|
1,257 |
| Earnings from
associates |
|
|
|
|
|
|
|
120 |
| Debt financial
expenses |
|
|
|
|
|
|
|
14,503 |
| Other financial
results, net |
|
|
|
|
|
|
|
7,837 |
| Net income
before income tax expenses |
|
|
|
|
|
|
|
23,717 |
| Income tax expense |
|
|
|
|
|
|
|
28 |
| Net Income |
|
|
|
|
|
|
|
23,745 |
| |
|
|
|
|
|
|
|
|
| Attributable
to: |
|
|
|
|
|
|
|
|
| Controlling
Company |
|
|
|
|
|
|
|
23,526 |
| Non-controlling
interest |
|
|
|
|
|
|
|
219 |
| |
|
Services
rendered in |
Services
rendered in |
|
Other
abroad |
Other
abroad |
|
|
| |
Services
rendered |
Argentina
- Inflation |
Argentina
restated |
Other
abroad |
segments
- |
segments
restated |
Eliminations |
Total |
| As
of March 31, 2021 |
in
Argentina |
restatement |
for
inflation |
segments |
restatement
for |
for
inflation |
|
|
| |
|
|
|
|
inflation |
|
|
|
| Revenues |
73,563 |
45,489 |
119,052 |
5,937 |
3,658 |
9,595 |
(611) |
128,036 |
| Operating
costs (without depreciation, amortization,
and impairment of fixed assets) |
(45,933) |
(30,224) |
(76,157) |
(3,645) |
(2,243) |
(5,888) |
611 |
(81,434) |
|
|
|
|
|
|
|
|
|
| Operating
income before D&A |
27,630 |
15,265 |
42,895 |
2,292 |
1,415 |
3,707 |
- |
46,602 |
| |
|
|
|
|
|
|
|
|
| Depreciation,
amortization and impairment of fixed assets |
|
|
|
|
|
|
|
(38,246) |
| Operating
income (loss) |
|
|
|
|
|
|
|
8,356 |
| Earnings from
associates |
|
|
|
|
|
|
|
127 |
| Debt financial
expenses |
|
|
|
|
|
|
|
4,797 |
| Other financial
results, net |
|
|
|
|
|
|
|
5,705 |
| Net income
before income tax expenses |
|
|
|
|
|
|
|
18,985 |
| Income tax expense |
|
|
|
|
|
|
|
(5,007) |
| Net Loss |
|
|
|
|
|
|
|
13,978 |
| |
|
|
|
|
|
|
|
|
| Attributable
to: |
|
|
|
|
|
|
|
|
| Controlling
Company |
|
|
|
|
|
|
|
13,558 |
| Non-controlling
interest |
|
|
|
|
|
|
|
420 |
TELECOM
ARGENTINA S.A.
Consolidated Information
First quarter - Fiscal Year 2022
(In million of Argentine pesos)
| 4- Consolidated
Income Statements - restated by inflation (constant figures) |
|
|
|
|
|
|
| (Allows
the understanding of the variations of the Income Statement in real terms) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
03/31/22 |
|
03/31/21 |
|
Δ
$ |
|
Δ
% |
| |
|
|
|
|
|
|
|
|
| Revenues |
|
117,372 |
|
128,036 |
|
(10,664) |
|
-8.3% |
| Consolidated
Operating Costs |
|
(116,115) |
|
(119,680) |
|
3,565 |
|
-3.0% |
| Operating
income |
|
1,257 |
|
8,356 |
|
(7,099) |
|
-85.0% |
| Net Financial
results and earnings from associates |
|
22,460 |
|
10,629 |
|
11,831 |
|
111.3% |
| Net income
before income tax expense |
|
23,717 |
|
18,985 |
|
4,732 |
|
24.9% |
| Income tax expense |
|
28 |
|
(5,007) |
|
5,035 |
|
-100.6% |
| Net Income |
|
23,745 |
|
13,978 |
|
9,767 |
|
69.9% |
| |
|
|
|
|
|
|
|
|
| Attributable
to: |
|
|
|
|
|
|
|
|
| Controlling Company |
|
23,526 |
|
13,558 |
|
9,968 |
|
73.5% |
| Non-controlling
interest |
|
219 |
|
420 |
|
(201) |
|
-47.9% |
| |
|
|
|
|
|
|
|
|
| Operating
income before D&A |
|
40,691 |
|
46,602 |
|
(5,911) |
|
-12.7% |
| As % of Revenues |
|
34.7% |
|
36.4% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
03/31/22 |
|
03/31/21 |
|
Δ
$ |
|
Δ
% |
| Net Financial
results |
|
|
|
|
|
|
|
|
| Debt financial
expenses |
|
|
|
|
|
|
|
|
| Interests on
financial debt |
|
(263) |
|
(4,014) |
|
3,751 |
|
-93.4% |
| Foreign currency
exhange losses on financial debt |
|
14,766 |
|
8,991 |
|
5,775 |
|
64.2% |
| Total Debt
financial expenses |
|
14,503 |
|
4,977 |
|
9,526 |
|
191.4% |
| Other financial
results, net |
|
|
|
|
|
|
|
|
| Gains (losses)
for operations with notes and bonds |
|
(2,657) |
|
(537) |
|
(2,120) |
|
- |
| Other foreign
currency exhange gains (losses) |
|
(58) |
|
3,570 |
|
(3,628) |
|
-101.6% |
| Other net interests
and gains of investments |
|
419 |
|
(651) |
|
1,070 |
|
-164.4% |
| Taxes and bank
expenses |
|
(1,127) |
|
(1,208) |
|
81 |
|
-6.7% |
| Financial expenses
on pension benefits |
|
(118) |
|
(116) |
|
(2) |
|
1.7% |
| Financial discounts
on assets, debts and other |
|
(542) |
|
(1,017) |
|
475 |
|
-46.7% |
| RECPAM* |
|
11,920 |
|
5,484 |
|
6,436 |
|
117.4% |
| Total
other financial results, net |
|
7,837 |
|
5,525 |
|
2,312 |
|
41.8% |
| Total Net
Financial results |
|
22,340 |
|
10,502 |
|
11,838 |
|
112.7% |
*
Inflation restatement gain / (loss)
TELECOM
ARGENTINA S.A.
Consolidated
Information
First
quarter - Fiscal Year 2022
(In
million of Argentine pesos)
| 5- |
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 61.8% vs. a restatement variation
of 6.1% for revenues as of 2022) |
| |
|
03/31/22 |
|
03/31/21 |
|
1Q22
IAS 29 vs. 1Q21 IAS 29 |
|
| |
|
1Q22
IAS 29 |
|
IAS
29 |
|
1Q21
IAS 29 |
|
IAS
29 |
|
Δ
$ |
|
Δ
% |
|
| |
|
|
Adjustment |
|
|
Adjustment |
|
|
|
| REVENUES
FROM SERVICES |
|
109,378 |
|
6,309 |
|
119,612 |
|
45,719 |
|
(10,234) |
|
-8.6% |
|
| Mobile
Services |
|
45,377 |
|
2,610 |
|
47,312 |
|
18,058 |
|
(1,935) |
|
-4.1% |
|
| Internet
Services |
|
26,439 |
|
1,541 |
|
27,082 |
|
10,371 |
|
(643) |
|
-2.4% |
|
| Cable
TV Services |
|
21,784 |
|
1,261 |
|
25,946 |
|
9,938 |
|
(4,162) |
|
-16.0% |
|
| Fixed
Telephony and Data Services |
|
14,821 |
|
848 |
|
18,354 |
|
7,008 |
|
(3,533) |
|
-19.2% |
|
| Other
service revenues |
|
957 |
|
49 |
|
918 |
|
344 |
|
39 |
|
4.2% |
|
| REVENUES
FROM EQUIPMENT SALES |
|
7,994 |
|
483 |
|
8,424 |
|
3,196 |
|
(430) |
|
-5.1% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| REVENUES |
|
117,372 |
|
6,792 |
|
128,036 |
|
48,915 |
|
(10,664) |
|
-8.3% |
|
| 6- |
Consolidated Income Statements
- restated by inflation (constant figures) |
| |
(Allows the understanding of
the variations of the Income Statement in real terms) |
| |
|
03/31/22 |
|
03/31/21 |
|
1Q22
IAS 29 vs. 1Q21 IAS 29 |
|
| |
|
1Q22
IAS 29 |
|
IAS
29 |
|
1Q21
IAS 29 |
|
IAS
29 |
|
Δ
$ |
|
Δ
% |
|
| |
|
|
Adjustment |
|
|
Adjustment |
|
|
|
| Revenues |
|
117,372 |
|
6,792 |
|
128,036 |
|
48,915 |
|
(10,664) |
|
-8.3% |
|
| Employee
benefit expenses and severance payments |
|
(24,218) |
|
(1,441) |
|
(23,779) |
|
(9,141) |
|
(439) |
|
1.8% |
|
| Interconnection
and transmission costs |
|
(3,587) |
|
(207) |
|
(4,953) |
|
(1,891) |
|
1,366 |
|
-27.6% |
|
| Fees
for services, maintenance, materials and supplies |
|
(12,532) |
|
(1,090) |
|
(14,448) |
|
(5,878) |
|
1,916 |
|
-13.3% |
|
| Taxes
and fees with the regulatory authority |
|
(8,975) |
|
(515) |
|
(9,958) |
|
(3,805) |
|
983 |
|
-9.9% |
|
| Commissions
and advertising |
|
(6,425) |
|
(335) |
|
(6,797) |
|
(2,598) |
|
372 |
|
-5.5% |
|
| Cost
of equipments and handsets |
|
(6,011) |
|
(1,057) |
|
(6,068) |
|
(2,766) |
|
57 |
|
-0.9% |
|
| Programming
and content costs |
|
(7,497) |
|
(442) |
|
(9,435) |
|
(3,612) |
|
1,938 |
|
-20.5% |
|
| Bad
debt expenses |
|
(3,199) |
|
(196) |
|
(1,608) |
|
(656) |
|
(1,591) |
|
98.9% |
|
| Other
operating income and expenses |
|
(4,237) |
|
(441) |
|
(4,388) |
|
(1,888) |
|
151 |
|
-3.4% |
|
| Subtotal
Operating costs before D&A |
|
(76,681) |
|
(5,724) |
|
(81,434) |
|
(32,235) |
|
4,753 |
|
-5.8% |
|
| Operating
income before D&A |
|
40,691 |
|
1,068 |
|
46,602 |
|
16,680 |
|
(5,911) |
|
-12.7% |
|
| Depreciation,
amortization ('D&A') and impairment of fixed assets |
|
(39,434) |
|
(25,194) |
|
(38,246) |
|
(27,132) |
|
(1,188) |
|
3.1% |
|
| Operating
income |
|
1,257 |
|
(24,126) |
|
8,356 |
|
(10,452) |
|
(7,099) |
|
-85.0% |
|
| Earnings
from associates |
|
120 |
|
(20) |
|
127 |
|
32 |
|
(7) |
|
-5.5% |
|
| Net
financial results |
|
22,340 |
|
53,455 |
|
10,502 |
|
33,513 |
|
11,838 |
|
112.7% |
|
| Net
income before income tax expense |
|
23,717 |
|
29,309 |
|
18,985 |
|
23,093 |
|
4,732 |
|
24.9% |
|
| Income
tax expense |
|
28 |
|
(5,112) |
|
(5,007) |
|
(1,866) |
|
5,035 |
|
-100.6% |
|
| Net
income |
|
23,745 |
|
24,197 |
|
13,978 |
|
21,227 |
|
9,767 |
|
69.9% |
|
| Attributable
to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Controlling
Company |
|
23,526 |
|
24,194 |
|
13,558 |
|
21,086 |
|
9,968 |
|
73.5% |
|
| Non-controlling
interest |
|
219 |
|
3 |
|
420 |
|
141 |
|
(201) |
|
-47.9% |
|
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.
| |
|
Telecom
Argentina S.A.
|
| |
|
|
| |
|
|
| Date: |
May 10, 2022 |
|
By: |
/s/
Fernando J. Balmaceda |
| |
|
|
|
Name: |
Fernando
J. Balmaceda |
| |
|
|
|
Title: |
Responsible for Market
Relations |
Telecom Argentina (NYSE:TEO)
過去 株価チャート
から 12 2024 まで 1 2025
Telecom Argentina (NYSE:TEO)
過去 株価チャート
から 1 2024 まで 1 2025
