The following is a summary of the Telecom Argentina S.A. (TEO) Q4 2023 Earnings Call Transcript:
Financial Performance:
In 2023, Telecom Argentina revenues grew by 110% reaching over ARS1.1 trillion. However, due to the inflation rate, revenues showed a decrease of 9% in real terms compared to 2022.
The company's EBITDA margin improved to 29.1% as a result of cost management and inflation pass-through to revenues.
The net loss of ARS249 billion was reported, mainly due to the devaluation of the peso affecting their foreign currency debt.
Telecom Argentina's total debt as of December 2023 was over $2.5 billion and a successful issue of local notes worth $480 million was made.
Despite a challenging environment, the company generated a free cash flow of around $400 million before dividends and interest.
Business Progress:
In the face of a competitive environment and economic challenges in Argentina, Telecom Argentina managed to stablize and maintain its customer base in fixed and mobile segments.
The company successfully expanded its FTTH technology and mobile network, as well as the ongoing development of 5G technologies.
Investments were mainly focused on improving the access network, acquiring 5G spectrum, improving remote setup capacity, and maintaining customer premise equipment.
Their FinTech, Personal Pay, has over 2 million onboarded clients becoming the second largest player in terms of account balances held by clients.
Growth was seen across other areas like mobile data usage, and in the pay TV business particularly in Paraguay.
More details: Telecom Argentina IR
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