On August 11, 2025, Telecom Argentina S.A. released its financial results for the first half of fiscal year 2025, reporting a significant 44.2% increase in consolidated revenues, totaling P$3,357,004 million. This growth was largely fueled by the acquisition of Telefónica Móviles Argentina (TMA) which added four months of contributions to the financial results.
For the first half of 2025, service revenues amounted to P$3,160,986 million. Notably, mobile services emerged as the leading segment, generating P$1,604,897 million, marking a substantial 71.2% increase compared to the same period last year. Enhanced demand for mobile internet services contributed to this rise, with mobile internet revenues making up 98% of total mobile service revenues.
Telecom Argentina experienced a positive shift in its customer base, notably in postpaid mobile subscriptions which grew 1.1%. The company reported a total of 20.9 million mobile accesses, though total mobile accesses declined slightly by 1.3%. Furthermore, fixed broadband subscriptions rose by 1.5%, totaling 4.1 million accesses.
The incorporation of TMA had a notable influence on Telecom's financial standing. Despite the revenue growth, the company faced a consolidated net loss of P$75,554 million for the period, reversing from a profit position in the previous year. This loss was primarily due to increased financing costs and losses in net financial results, emphasizing the economic pressures stemming from the high inflation rate of 39.4% observed during the reported period.
Telecom Argentina reported consolidated operating income before depreciation, amortization, and impairment of fixed assets of P$1,007,153 million, reflecting a 45.9% increase from the previous year. However, the company’s net financial debt rose to P$4,029,971 million, largely attributed to funding related to the acquisition of TMA.
Consolidated operating costs, including depreciation and amortization, escalated by 32.0% year-over-year due to the integration of TMA. This increase in operational expenses raises questions about long-term profitability amid rising costs.
In the first half of 2025, Telecom Argentina reported consolidated revenues of P$3,357,004 million, reflecting a significant year-on-year increase of 44.2%. This robust growth was largely attributed to the inclusion of four months of revenues from Telefónica Móviles Argentina (TMA), while also indicating an improving trend in service revenue.
Telecom Argentina experienced positive growth in its customer base during the first half of 2025, particularly in the postpaid mobile segment which increased by 1.1%. Additionally, fixed broadband subscriptions rose by 1.5%, indicating a steady demand for telecom services amidst an inflationary environment.
The acquisition of TMA significantly bolstered Telecom Argentina's financials, contributing four months of revenues and operational results that enhanced overall performance in 1H25. TMA's integration is likely to bolster market position and profitability as synergies are fully realised.
Telecom Argentina achieved a consolidated operating income before depreciation, amortisation, and impairment of fixed assets of P$1,007,153 million in 1H25, representing a 45.9% increase compared to the previous year. This improvement suggests effective management in enhancing operational efficiencies.
As of June 30, 2025, Telecom Argentina's net financial debt increased to P$4,029,971 million, up 38.2% in constant currency from December 2024, primarily due to financing linked to the acquisition of TMA. While the debt level is noteworthy, the investment supports growth and strategic expansion in a competitive sector.
In 1H25, Telecom Argentina recorded a consolidated net loss of P$75,554 million, primarily driven by substantial losses in net financial results compared to a profit in the same period last year. This serves as a reminder of the challenges posed by currency fluctuations and inflation in the Argentine market.
Telecom Argentina experienced an increase in average revenue per user (ARPU), with a 12.6% real growth for Telecom (excluding TMA) and an 8.9% increase for TMA. These trends suggest robust pricing power and effective service offerings in an inflationary environment.
Consolidated operating costs for Telecom Argentina rose by 32.0% in 1H25, reflecting a significant increase in operational expenses, largely due to the operational integration of TMA. While costs rose, the revenue growth indicates effective revenue generation strategies to manage these expenses.