Telecom Argentina S.A. released its consolidated results for the first quarter of fiscal year 2025 (1Q25), highlighting substantial growth in service revenues and a solid operational outlook. Total service revenues reached P$1,285.482 million, marking a significant 26.5% increase compared to 1Q24, driven primarily by the incorporation of Telefónica Móviles Argentina (TMA).
For the quarter, total consolidated revenues stood at P$1,363.353 million, reflecting a 27.8% rise in constant currency terms compared to the previous year. Service revenues, excluding TMA, showed a modest growth of 4.9% year-on-year. TMA, which began contributing to Telecom’s results in March 2025, reported a 17.1% increase in its standalone service revenues.
The number of mobile subscribers demonstrated positive growth, with a total of 21.3 million mobile accesses reported for Telecom Argentina (excluding TMA) and 18.9 million for TMA. The company also saw an expansion in Pay TV subscribers, totaling 3.1 million, while fixed internet accesses showed a decrease of 1.1% to 4.1 million.
Telecom Argentina's profitability was underscored by an Operating Income Before Depreciation, Amortization, and Impairment of Fixed Assets of P$451.948 million, up 39.9% from the same period last year. The operating income margin improved to 33.1%, buoyed by the rising revenue and foreign exchange gains due to the peso's appreciation against the dollar.
As of March 31, 2025, the company’s Net Financial Debt rose to P$3,587.066 million, driven by loans for TMA's acquisition. In parallel, consolidated capital expenditures (CAPEX) accounted for 13% of consolidated revenues, with significant investments geared toward enhancing service quality and expanding network capacity, particularly in mobile internet and cable services.
Telecom Argentina reported strong consolidated service revenues of P$1,285.482 million in 1Q25, representing a 26.5% increase compared to the previous year. The overall revenues reached P$1,363.353 million, with a 27.8% rise in constant currency compared to 1Q24, indicating a robust recovery amidst challenging market conditions.
The customer base for Telecom Argentina showed positive growth in 1Q25, with mobile accesses increasing to 21.3 million and Pay TV subscribers reaching 3.1 million. Notably, TMA's broadband segment also expanded by 6.9%, reflecting effective strategies in customer acquisition and retention.
The Operating Income Before Depreciation, Amortization, and Impairment of Fixed Assets increased significantly to P$451,948 million, up 39.9% from 1Q24. This improvement in profitability margins underscores the company's efficient management of costs and growth in operational capacity.
Telecom Argentina recorded foreign exchange gains due to the real appreciation of the Argentine peso, contributing positively to the financial results. This factor, in conjunction with increased operating income, supports the notion of a stabilising economic environment that bodes well for future growth.
Consolidated Net Financial Debt rose to P$3,587,066 million, mainly due to financing related to the acquisition of TMA. While this debt increase requires careful monitoring, it is relatively offset by the operational growth and service revenue increases, suggesting potential for returns that can enhance shareholder value.
Telecom Argentina is focusing on significant capital investment in infrastructure, including enhancements to its cable TV and internet services, and expanding its 4G and 5G networks. These investments are critical as they enhance service quality and capacity, positioning the company for future growth in a competitive market.
In 1Q25, TMA’s standalone service revenues increased by an impressive 17.1% compared to the previous year, while Telecom's service revenues (excluding TMA) also grew by 4.9%. This performance showcases the potential of both entities in contributing to the overall growth of Telecom Argentina.
The merger with TMA and the ongoing processes with regulatory authorities are pivotal for Telecom Argentina's strategic direction. Successful integration will likely enhance market share and operational efficiencies, creating a more competitive entity in the telecommunications landscape.