Telecom Argentina SA
OTC:TCMFF
Telecom Argentina SA
Telecom Argentina SA stands as one of the formidable pillars in the Argentine telecommunications landscape, embodying the country's digital heartbeat. Born from the synergy of technological ambition and regulatory evolution, Telecom Argentina has entrenched itself as a leading integrated telecom operator, offering a comprehensive suite of services that cater to both residential and corporate clientele. It provides fixed-line telephony, mobile communications, broadband internet, and pay television services, orchestrating a network that connects millions. Functioning within a complex regulatory environment, the company's operations are a dance of strategic investments, pushing the boundaries of infrastructure to meet ever-growing consumer demand for speed and quality.
This robust conglomerate derives its revenue primarily from subscription fees, service charges, and telecommunications equipment sales. As consumer behavior shifts towards data-centric applications, Telecom Argentina ingeniously pivots its business model to capitalize on the burgeoning demand for high-speed internet and mobile data services. By continually expanding its fiber-optic network, it bolsters broadband penetration across urban and rural areas. Furthermore, Telecom Argentina adeptly leverages strategic alliances and partnerships to enhance service offerings and improve customer retention. The company’s ability to adapt to market transitions and technological advancements ensures its foothold in an industry characterized by relentless innovation and competition.
Telecom Argentina SA stands as one of the formidable pillars in the Argentine telecommunications landscape, embodying the country's digital heartbeat. Born from the synergy of technological ambition and regulatory evolution, Telecom Argentina has entrenched itself as a leading integrated telecom operator, offering a comprehensive suite of services that cater to both residential and corporate clientele. It provides fixed-line telephony, mobile communications, broadband internet, and pay television services, orchestrating a network that connects millions. Functioning within a complex regulatory environment, the company's operations are a dance of strategic investments, pushing the boundaries of infrastructure to meet ever-growing consumer demand for speed and quality.
This robust conglomerate derives its revenue primarily from subscription fees, service charges, and telecommunications equipment sales. As consumer behavior shifts towards data-centric applications, Telecom Argentina ingeniously pivots its business model to capitalize on the burgeoning demand for high-speed internet and mobile data services. By continually expanding its fiber-optic network, it bolsters broadband penetration across urban and rural areas. Furthermore, Telecom Argentina adeptly leverages strategic alliances and partnerships to enhance service offerings and improve customer retention. The company’s ability to adapt to market transitions and technological advancements ensures its foothold in an industry characterized by relentless innovation and competition.
EBITDA Margin: Telecom Argentina reported an EBITDA margin of 28.4% for the first half of 2023, managing to keep margins stable despite inflation and cost pressures.
Revenue Performance: Consolidated revenues grew 88% in nominal terms, but declined 9% in real terms due to inflation.
Cost Management: Operating costs before D&A grew below inflation, and cost containment efforts helped offset margin pressures from labor and materials.
Free Cash Flow: Free cash flow before dividends and interest reached $308 million, improving by $52 million year-over-year.
CapEx: CapEx was $655 million over the last 12 months (16% of revenues), with some delays due to import restrictions but ongoing network expansion.
Subscriber Growth: Mobile subscribers in Argentina rose by almost 3% YoY to 20.6 million; FTTH and fintech businesses showed strong growth.
Pricing Strategy: Price increases are now monthly to better keep up with inflation, helping offset revenue erosion.
