NORTEL INVERSORA SA BUENOS AIRES, Argentina, May 10, 2016 /PRNewswire/ -- Nortel Inversora S.A. ("Nortel") (NYSE: NTL)announces consolidated income of AR$ 934 million for the first quarter of fiscal year 2016, of which AR$ 514 million correspond to Nortel as parent company of Telecom Argentina S.A. ("Telecom").
The sole material activity of Nortel is holding 54.74% of the capital stock of Telecom, representing a holding of 55.60% of the voting and economic rights of Telecom as a result of Telecom's holding of 15,221,373 shares of treasury stock. The holding of such shares of treasury stock has been extended for up to three additional years pursuant to the resolution of the Ordinary and Extraordinary Stockholders Meeting of Telecom held on April 29, 2016.
Relevant facts
Telecom Italia - Fintech Telecom LLC Transaction
On March 7, 2016, the Ente Nacional de Comunicaciones (National Agency of Communications or "ENACOM") authorized the acquisition by Fintech Telecom LLC ("Fintech") of 51% of the common stock of Sofora Telecomunicaciones S.A. ("Sofora") pursuant to Resolution No 277/2016. As a result, the transfer of 51% of Sofora from the Telecom Italia Group to Fintech was closed on March 8, 2016.
Summary of the Resolutions approved by the Ordinary and Extraordinary General Stockholders Meeting held on April 29, 2016
The Ordinary and Extraordinary General Stockholders Meeting held on April 29, 2016 resolved, among other issues:
1. to approve the Annual Report and Financial Statements as of December 31,
2015;
2. to allocate the non-appropriated profit amount as of December 31, 2015,
of AR$ 1,891 million, to the already existing Voluntary Reserve for the
Future Distribution of Dividends, authorizing the Board of Directors to
approve the timing and amounts to be deducted from the Voluntary Reserve
for the Future Distribution of Dividends, taking into account the
Company's future economic and financial conditions, and liquidity, and
the subsequent distribution of such amounts as cash dividends;
3. the appointment of the members of the Supervisory Committee for fiscal
year 2016.
Dividends Payment
At its meeting held on April 29, 2016, pursuant to the authorization granted by the Stockholders Meeting, the Board resolved: to deduct an amount of Argentine Pesos three hundred eighty million (AR$ 380,000,000) from the "Voluntary Reserve for the Future Distribution of Dividends" and to distribute such amount as cash dividends. Dividends shall be made available to Nortel shareholders as from May 17, 2016.
(Financial Tables below)
First Quarter, Fiscal Year 2016
(in millions of Argentine Pesos)
-------------------------------
Consolidated
Income
Statement March 2016 March 2015
------------ ---------- ----------
Total
sales and
other
income 12,466 8,879
Operating
costs (10,475) ( 7,204)
------- -------
Operating
income 1,991 1,675
Financial
results,
net ( 550) ( 78)
----- ----
Net income
before
income
tax
expenses 1,441 1,597
Income tax ( 507) ( 554)
------- ------
Net income 934 1,043
--- -----
Other
comprehensive
income,
net of
taxes 189 ---
--- ---
Total
comprehensive
income
for the
period 1,123 1,043
===== =====
Consolidated
Balance
Sheet March 2016 December 2015
------------ ---------- -------------
Current
assets 12,682 11,569
Non-
current
assets 28,244 26,973
------ ------
Total
assets 40,926 38,542
====== ======
Current
liabilities 18,200 16,945
Non-
current
liabilities 3,950 3,944
----- -----
Total
liabilities 22,150 20,889
====== ======
Equity
attributable
to Nortel 10,186 9,605
Equity
attributable
to non-
controlling
shareholders 8,590 8,048
----- -----
Total
equity 18,776 17,653
------ ------
Total
liabilities
and
equity 40,926 38,542
====== ======
Ratios
------
Liquidity
(a) 0.70 0.68
Indebtedness
(b) 1.18 1.18
(a) Current assets to current
liabilities
(b) Total liabilities to
shareholders' equity
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SOURCE Nortel Inversora S.A.
