Telecom Argentina S.A. declares consolidated annual outcomes (“FY21”) and fourth quarter of fiscal yr 2021 (“4Q21”)** | Information

BUENOS AIRES, March 9, 2022 /PRNewswire/ —

 

Notice: For the figures included of their FFSS, the Firm has accounted for the consequences of inflation adjustment adopted by Decision 777/18 of the Comisión Nacional de Valores (“CNV”), which establishes that the restatement shall be utilized to the annual monetary statements, for intermediate and particular intervals ended as of December 31, 2018 inclusive. Accordingly, the reported figures comparable to FY21 embrace the consequences of the adoption of inflationary accounting in accordance with IAS 29. Lastly, feedback associated to variations of outcomes of FY21 and vs. FY20 talked about on this press launch correspond to “figures restated by inflation” or “fixed”.

• For comparative functions, it is very important spotlight that the outcomes adjusted by inflation comparable to December 2020 include the impact of the yr over yr inflation as of December 2021, which amounted to 50.9%.
• Consolidated Revenues amounted to P$425,493 million in FY21. Service Revenues totaled P$395,697 million (-7.7% in fixed forex vs. FY20), in a context the place inflation continues to be excessive. Service revenues for 4Q21 totaled P$95,735 million (-1.9% in fixed forex vs 4Q20).
• Cellular shoppers in Argentina reached 20.1 million in FY21 (+1.7 million vs. FY20), cable TV subscribers totaled roughly 3.6 million (+17 thousand vs. FY20), whereas broadband accesses amounted to nearly 4.2 million (+89 thousand vs. FY20). Consequently, all these segments have verified a rise within the variety of shoppers versus 2020.
• Working Revenue earlier than Depreciation and Amortization amounted to P$132,767 million in FY21 (-14.5% vs. FY20).
• The Firm’s Internet Revenue amounted to P$9,940 million in FY21 (vs. a lack of $7,704 million in FY20). Internet monetary outcomes have been constructive and totaled P$45,649 million, which have been partially offset by an revenue tax expense of $33.317 million.
• Investments (together with rights of use property) reached P$103,704 million in FY21, equal to 24.4% of Consolidated Revenues.
• Internet Monetary Debt amounted to P$236,286 million in FY21 (-11.2% in fixed forex vs. FY20).

*Market Cap as of March 8^th, 2022

**Unaudited non monetary knowledge

Telecom Argentina S.A. (‘Telecom Argentina’) – (NYSE: TEO; BYMA: TECO2), introduced in the present day a internet revenue of P$9,940 million for the interval ended December 31, 2021. The web loss attributable to the controlling firm was P$8,665 million.

It’s price mentioning that the comparative figures for the earlier fiscal yr have been restated in order that the ensuing comparative data is offered when it comes to the present measurement unit as of December 31, 2021.

The next desk exhibits the evolution of the patron value index (Nationwide CPI – in keeping with INDEC’s official statistics) for the final two fiscal years and as of December 31, 2020 and 2021, which have been used to restate the figures in fixed forex:

Throughout FY21, Consolidated Revenues amounted to P$425,493 million, from which Service Revenues totaled P$395,697 million.

Consolidated Working Revenues

Cellular Companies

As of December 31, 2021, whole cellular shoppers in Argentina and Paraguay amounted to 22.3 million. In FY21, whole cellular companies revenues represented P$161,131 million (-P$9,958 million vs. FY20).

Cellular Companies in Argentina

As of December 31, 2021, whole cellular subscribers amounted to greater than 20.1 million  (+1.7 million vs. FY20). Postpaid shoppers represented 41% of our subscriber base.

In FY21, cellular service revenues in Argentina amounted to P$144,423 million (-4.7% vs FY20). Cellular web revenues reached 75% of cellular service revenues. The typical month-to-month income per consumer (‘ARPU’ – restated in fixed forex as of December 31, 2021) amounted to P$617 throughout FY21 (-6.3% vs. FY20). The impact generated by the inflation adjustment as of December 31, 2021 (included within the ARPU) amounted to P$96.4 and P$285.4, for FY21 and FY20, respectively.  Cellular churn was 1.1% (vs. 2.2% in FY20).

Industrial Initiatives

Through the fourth quarter, the deployment of the primary 5G networks continued. 10 cellular websites have been deployed within the Atlantic Coast and within the cities of Mar del Plata, Pinamar, and Cariló.

Private Pay (Private’s digital pockets) concluded the primary stage of its beta growth and its app is now out there for Android customers, together with a variety of advantages and reductions.

Private elevated the information quota in sure high-end postpaid cellular plans (from 12 to 15GB and from 20 to 25GB) with no further value to clients, permitting an elevated consumption of knowledge by means of the web.

Private in Paraguay (‘Núcleo’) 

As of December 31, 2021, Núcleo’s subscriber base reached 2.2 million shoppers. Pay as you go and postpaid clients represented 82% and 18%, respectively.

Núcleo´s cellular service revenues throughout FY21, amounted to P$16,708 million (-14.2% vs. FY20), primarily as a consequence of lower within the ARPU measured in fixed pesos, which was partially offset by the appreciation of the Guaraní in opposition to the Argentine peso.

Cable TV Companies

Cable TV service revenues reached P$82,550 million in FY21 (-P$7,384 million vs. FY20). Cable TV subscribers totaled roughly 3.6 million (+17 thousand vs. FY20). The month-to-month Cable TV ARPU (restated in fixed forex as of December 31, 2021) reached P$1,883.2 throughout FY21 (vs P$2,086.3 in FY20). The impact generated by the restatement when it comes to the measuring unit as of December 31, 2021 included within the ARPU quantities to P$306.7 and P$910.6, for the FY21 and FY20, respectively. The typical month-to-month churn throughout FY21 and FY20 was 1.1% and 1.0%, respectively.

Move continued to strengthen its content material supply, incorporating new merchandise primarily in music, nationwide and worldwide productions, and gaming.

Mounted Telephony and Information Companies

Revenues generated by mounted telephony and knowledge reached P$58,930 million in FY21 (-P$9,895 million vs. FY20).

Consequently, the month-to-month mounted voice ARPU (restated in fixed forex as of December 31, 2021) reached P$777.2 (vs. P$866.9 in FY20). The impact generated by the restatement when it comes to the measuring unit as of December 31, 2021, included within the ARPU amounted to P$131 and P$378.7 for the FY21 and FY20, respectively.

Two new companies have been launched over the last a part of 2021:

–  Digital Assistant, an answer designed to boost the digital evolution, processes and automation of customer support of every firm, and

–  Google Workspace, a set of productiveness apps and instruments to streamline workflows, scale back activity length, and enhance crew productiveness.

The 2021 “Telecom SummIT” closed with two ultimate editions targeted on the subjects of Cybersecurity and Multicloud Options.

Web Companies

Web companies revenues totaled P$90,768 million throughout FY21 (-P$6,186 million vs. FY20). As of December 31, 2021, whole broadband accesses reached roughly 4.2 million (+89 thousand vs. FY20).

Moreover, broadband ARPU (restated in fixed forex as of December 31, 2021) amounted to P$1,727.1 per 30 days in FY21 (vs. P$1,918.5 in FY20). The impact generated by the restatement when it comes to the measuring unit as of December 31, 2021, included within the ARPU amounted to roughly P$274.7 and P$840.9, for the FY21 and FY20, respectively.

The typical month-to-month churn price for the FY21 was 1.5% (vs. 1.3% in FY20). As of FY21, 79% of our whole buyer base had a broadband service of 20Mb or increased (rising from 71% as of FY20).

Revenues from tools gross sales

Gear revenues amounted to P$29,796 million (+P$3,227 million vs. FY20). Mentioned improve was primarily as a consequence of a rise within the variety of items offered (+38%), and by the rise within the common value of handsets.

 Consolidated Working Prices

Consolidated Working Prices (together with D&A and impairment of mounted property) totaled P$428,280 million in FY21 (+P$3,678 million or +0.9% vs. FY20). Excluding D&A and impairment of mounted property, working prices confirmed a discount of two.4%.

Prices breakdown was as follows:

– Workers advantages and severance funds: P$91,823 million (+4.0% vs. FY20). Whole staff amounted to 22,587 as of FY21.

– Interconnection and transmission prices (together with roaming, worldwide settlement fees and lease of circuits) totaled P$15,262 million (-10.2% vs. FY20). This lower was primarily as a consequence of an optimization of hyperlinks and websites, partially offset by the FX impact associated to companies to be paid in US {dollars}.

– Charges for companies, upkeep, supplies and provides: P$49,431 million (-0.8% vs. FY20). Charges for companies decreased by P$497 million, whereas upkeep and materials prices elevated by P$99 million in comparison with FY20.

– Taxes and costs paid to regulatory authorities: P$32,743 million (-5.8% vs. FY20). This lower was primarily as a consequence of decrease gross sales in FY21 vs FY20.

– Commissions and promoting (commissions paid to brokers, assortment charges and different commissions): P$24,392 million (-6.3% vs. FY20). Mentioned lower was primarily defined by decrease agent fee fees and decrease promoting prices.

 – Price of handsets offered: P$20,961 million (+24.7% vs. FY20). P$20,003 million pertains to the price of gross sales of units in Argentina which elevated 29.2% vs. FY20 primarily because of the improve in costs and portions offered.

– Programming and content material prices: P$28,949 million (-4.9% vs. FY20). Mentioned discount was  primarily generated by business efficiencies, which have been partially offset by value will increase in nearly all of our broadcasting alerts.

– Different Prices totaled P$29,165 million (-20.8% vs. FY20). Dangerous debt bills reached P$7,983 million (-51.1% vs. FY20).

Our dangerous debt ratio was 1.9% as of December 31, 2021 (vs. 3.6% in FY20), due to a robust technique adopted by the corporate to enhance its assortment effectivity.

Different working prices (together with fees for lawsuits and different contingencies, vitality and different public companies, insurance coverage, rents and web capability) totaled P$21,182 million            (+3.3% vs. FY20). This improve was primarily associated to further lawsuits and different contingency fees, partially offset by decrease vitality prices, rental fees, and web capability.

– Depreciation, amortization and impairment of mounted property amounted to P$135,554 million (+8.7% vs. FY20). This improve was because of the affect of the upper amortization of property integrated after December 31, 2020.

Internet Monetary Outcomes

Internet Monetary Outcomes (together with Monetary Bills on Debt and Different Monetary Outcomes) generated an revenue of P$45,649 million in FY21 (vs. a lack of P$26,631 million in FY20), primarily as a consequence of:

Revenue Tax

Revenue tax loss amounted to P$33,317 million in FY21 (vs. P$12,454 million in FY20). Mentioned loss primarily contains the impact of the change within the tax price pursuant to the necessities of Legislation No. 27,630, which changed the 25% price with a scale of accelerating charges primarily based on the taxable revenue of every taxpayer, reaching 35% as of fiscal yr 2021.

Consolidated Internet Monetary Debt

As of December 31, 2021, our internet monetary debt (money, money equivalents plus monetary investments and monetary NDF & rate of interest swaps minus loans) totaled P$236,286 million, reducing P$29,939 million (-11.2%) when in comparison with the consolidated internet monetary debt as of December 31, 2020 (restated when it comes to the measuring unit as of December 31, 2021).

Investments in PP&E, intangible property and rights of use property

Throughout FY21, the Firm invested (together with rights of use property) P$103,704 million (+2.9% vs. FY20). Mentioned investments represented 24.4% of consolidated revenues in FY21, and have been targeted on:

• Tasks associated to the growth of TV and web companies to enhance our transmission and entry speeds.
• Deployment and modernization of our 4G entry cellular websites, supporting the expansion in our protection of our cellular community.
• Extension of our transmission and transport networks with a purpose to unify the completely different entry applied sciences. We consolidated the deployment of last-mile networks with FTTH (Fiber to the house) structure thus enhancing the opportunity of providing high-speed companies.
• Investments in our buyer contact techniques.

Related Financing Issues

IFC and IDB loans refinancings

On December 15, 2021, we refinanced the mortgage with the Worldwide Finance Company (“IFC”) dated October 5, 2016, for a complete quantity of US$400.000.000, extending our 2022 and 2023 maturities and leading to a brand new maturity schedule that may finish in 2027.

The excellent quantity as of December 31, 2021 for mentioned mortgage was US$146 million.

We additionally refinanced the 2 mortgage agreements entered into between the Firm and the Inter-American Funding Company, appearing by itself behalf and as agent of the Inter-American Improvement Financial institution:

(i)  mortgage settlement dated April 7, 2017, for a complete quantity of US$100,000,000, and

(ii)   mortgage settlement dated Could 29, 2019, for a complete quantity of US$300,000,000

Debt maturing in 2022 and 2023 was prolonged to years 2024 and 2027. The excellent quantity as of December 31,2021 for these two loans was US$225 million.

Export credit score line assured by Export Improvement Canada (EDC).

On January 3, 2022, we closed an export credit score line for a complete quantity of US$ 23,367,200 with the next entities: (i) JPMorgan Chase Financial institution, N.A., as agent of the power, preliminary lender and residual danger guarantor, (ii) JPMorgan Chase Financial institution, N.A., Buenos Aires department, as onshore custody agent, and (iii) JPMorgan Chase Financial institution, NA and Export Improvement Canada as lead co-organizers.

The Facility shall be assured by the Export Improvement Canada (“EDC”), topic to the phrases and circumstances established by EDC.

The proceeds of the loans made beneath the Facility shall be used to:

(A)  finance as much as 85% of the worth of sure imported items and companies,

(B)  finance as much as 50% of the worth of sure items and companies originated in Argentina and topic to sure limits and circumstances established by EDC, and

(C)  the cost of the relevant premium as a consequence of EDC.

Issuance of Class 12 and 13 Native Notes

Class 12

Issuance Date: March 9, 2022.

Quantity Issued: US$22.7 million to be paid in Argentine pesos on the relevant trade price (equal to P$2.458 million on the Issuance Date)

Maturity Date: March 9, 2027.

Amortization: Bullet.

Curiosity Price and funds: 1.00% p.a, quarterly curiosity funds.

Class 13

Issuance Date: March 9, 2022.

Quantity Issued: P$2.347 million

Maturity Date: September 9, 2023.

Amortization: Bullet.

Curiosity Price and funds: BADLAR + 1.50% p.a, quarterly curiosity funds.

Telecom Argentina is a number one telecommunications firm in Argentina, the place it presents, both itself or by means of its managed subsidiaries native and lengthy distance fixed-line telephony, mobile, knowledge transmission, and pay TV and Web companies, amongst different companies. Moreover, Telecom Argentina presents cellular, broadband and satellite tv for pc TV companies in Paraguay and pay TV companies in Uruguay. The Firm commenced operations on November 8, 1990, upon the Argentine authorities’s switch of the telecommunications system within the northern area of Argentina.

As of December 31, 2021, Telecom Argentina had 2,153,688,011 shares issued and excellent.

For extra data, please contact Investor Relations:

For details about Telecom Argentina’s companies, go to:

www.telecom.com.ar

www.private.com.ar

www.private.com.py

Disclaimer

This doc might include statements that would represent forward-looking statements, together with, however not restricted to (i) the Firm’s expectations for its future efficiency, revenues, revenue, earnings per share, capital expenditures, dividends, liquidity and capital construction; (ii) the continued synergies anticipated from the merger between the Firm and Cablevisión S.A. (or the Merger); (iii) the implementation of the Firm’s enterprise technique; (iv) the altering dynamics and development within the telecommunications and cable markets in Argentina, Paraguay, Uruguay and the USA; (v) the Firm’s outlook for brand spanking new and enhanced applied sciences; (vi) the consequences of working in a aggressive atmosphere; (vii) the trade circumstances; (viii) the end result of sure authorized proceedings; and (ix) regulatory and authorized developments. Ahead-looking statements could also be recognized by phrases reminiscent of “anticipate,” “imagine,” “estimate,” “count on,” “intend,” “plan,” “mission,” “will,” “might” and “ought to” or different related expressions. Ahead-looking statements are usually not ensures of future efficiency and contain sure dangers and uncertainties which are tough to foretell. As well as, sure forward-looking statements are primarily based upon assumptions as to future occasions that won’t show to be correct. Many components may trigger precise outcomes, efficiency or achievements of the Firm to be materially completely different from any future outcomes, efficiency or achievements that could be expressed or implied by forward-looking statements. These components embrace, amongst others: (i) the Firm’s potential to efficiently implement our enterprise technique and to attain synergies ensuing from the Merger; (ii) the Firm’s potential to introduce new services that allow enterprise development; (iii) uncertainties regarding political and financial circumstances in Argentina, Paraguay, Uruguay and the USA, together with the insurance policies of the brand new authorities in Argentina; (iv) the affect of political developments, together with the insurance policies of the brand new authorities in Argentina, on the demand for securities of Argentine firms; (v) inflation, the devaluation of the peso, the Guaraní and the Uruguayan peso and trade price dangers in Argentina, Paraguay and Uruguay; (vi) restrictions on the flexibility to trade Argentine or Uruguayan pesos or Paraguayan guaraníes into foreign currency and switch funds overseas; (vii) the affect of forex and trade measures or restrictions on our potential to entry the worldwide markets and our potential to repay our dollar-denominated indebtedness; (viii) the creditworthiness of our precise or potential clients; (ix) the nationalization, expropriation and/or elevated authorities intervention in firms; (x) technological modifications; (xi) the affect of authorized or regulatory issues, modifications within the interpretation of present or future rules or reform and modifications within the authorized or regulatory atmosphere through which the Firm operates, together with regulatory developments reminiscent of sanctions regimes in different jurisdictions (e.g., the USA) which affect on the Firm’s suppliers; (xii) the consequences of elevated competitors; (xiii) reliance on content material produced by third events; (xiv) rising value of the Firm’s provides; (xv) lack of ability to finance on cheap phrases capital expenditures required to stay aggressive; (xvi) fluctuations, whether or not seasonal or in response to antagonistic macro-economic developments, within the demand for promoting; (xvii) the Firm’s potential to compete and develop our enterprise sooner or later; (xviii) the affect of elevated nationwide or worldwide restrictions on the switch or use of telecommunications expertise; and (xix) the affect of the outbreak of COVID-19 on the worldwide economic system and particularly on the economies of the nations through which we function, in addition to on our operations and monetary efficiency. Many of those components are macroeconomic and regulatory in nature and subsequently past the management of the Firm’s administration. Ought to a number of of those dangers or uncertainties materialize, or underlying assumptions show incorrect, precise outcomes might range materially from these described herein as anticipated, believed, estimated, anticipated, meant, deliberate or projected. The Firm doesn’t intend and doesn’t assume any obligation to replace the forward-looking statements contained on this doc. These forward-looking statements are primarily based upon numerous assumptions and different necessary components that would trigger our precise outcomes, efficiency or achievements to vary materially from our future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. Readers are inspired to seek the advice of the Firm’s Annual Report on Type 20-F and the periodic filings made on Type 6-Ok, that are periodically filed with or furnished to the USA Securities and Change Fee, in addition to the displays periodically filed earlier than the Argentine Securities and Change Fee (Comisión Nacional de Valores) and the Buenos Aires Inventory Change (Bolsas y Mercados Argentinos), for additional data regarding dangers and uncertainties confronted by the Firm.

  

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SOURCE Telecom Argentina S.A.