TELECOM ARGENTINA S.A.
Unaudited Condensed Consolidated Financial Statements as of March 31, 2024
General Hornos 690
(C1272ACK) Autonomous city of Buenos Aires Republic of Argentina
[AM_ACTIVE 406014658_6]
TELECOM ARGENTINA S.A.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2024 AND 2023
INDEX
Glossary of terms
Unaudited condensed consolidated financial statementsConsolidated statements of financial position Consolidated income statements
Consolidated statements of comprehensive income Consolidated statements of changes in equity Consolidated statements of cash flows
Notes to the unaudited condensed consolidated financial statements Operating and Financial Review and Prospects
Corporate information
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Glossary of terms
The following explanations are not technical definitions, but to assist the general reader to understand certain terms as used in these unaudited condensed consolidated financial statements.
ADS: Telecom Argentina's American Depositary Share, listed on the New York Stock Exchange, each representing five Class B Shares.
ADR: American Depositary Receipt.
BYMA (Bolsas y Mercados Argentinos): Buenos Aires Stock Exchange.
CAPEX: Capital expenditures.
CNV (Comisión Nacional de Valores): The Argentine National Securities Commission.
Company/Telecom Argentina: Telecom Argentina S.A.
CPCECABA (Consejo Profesional de Ciencias Económicas de la Ciudad Autónoma de Buenos Aires): The Professional Council of Economic Sciences of the City of Buenos Aires.
CVH: Cablevisión Holding S.A., controlling company of Telecom Argentina since January 1, 2018.
DFI: Derivate Financial Instrument.
DNU (Decreto de Necesidad y Urgencia): Decree of Urgency issued by the Argentine Government.
FACPCE (Federación Argentina de Consejos Profesionales en Ciencias Económicas): Argentine Federation of Professional Councils of Economic Sciences.
Fintech: Fintech Telecom LLC, a Telecom Argentina shareholder.
fintech: Financial technology services are activities that involve the use of innovation and technological developments for the design, offer and provision of financial products and services.
Fixed Assets: Includes PP&E, Intangible assets, Goodwill and Rights of use assets.
IAS: International Accounting Standards.
IASB: International Accounting Standards Board.
ICT Services (Information and Communication Technology services): Services to transport and distribute signals or data, such as voice, text, video and images, provided or requested by third-party users, through telecommunications networks.
IFRS Accounting Standards: International Financial Reporting Standards, as issued by the IASB.
INDEC (Instituto Nacional de estadísticas y censos): The National Institute of statistics and cense.
La Capital Cable/Ver TV/TSMA: Names corresponding to limited companies La Capital Cable S.A., Ver T.V. S.A. and Teledifusora San Miguel Arcángel S.A., respectively, companies that are directly or indirectly associates according to the definition of the General Corporations Law.
LAD (Ley Argentina Digital): Argentine Digital Law No. 27,078.
LGS (Ley de General de Sociedades): Argentine Corporations Law No. 19,550 as amended. Since the enforcement of the new Civil and Commercial Code its name was changed to "General Corporations Law".
Micro Sistemas/Pem/Cable Imagen/AVC Continente Audiovisual/Inter Radios/Personal Smarthome/NYS2/NYSSA: Names corresponding to limited companies or limited responsibility companies that are directly or indirectly controlled according to the definition of the General Corporations Law, or were controlled by the Company, directly or indirectly: Micro Sistemas S.A.U., Pem S.A.U., Cable Imagen S.R.L., AVC Continente Audiovisual S.A., Inter Radios S.A.U., Personal Smarthome S.A., NYS2 S.A.U., Negocios y Servicios S.A.U.
NYSE: New York Stock Exchange.
OPH: Name corresponding to company Open Pass Holding LLC that is a joint venture of Telecom Argentina.
PEN (Poder Ejecutivo Nacional): The executive branch of the Argentine government.
PP&E: Properties, plant and equipment.
RECPAM (Resultado por exposición a los cambios en el poder adquisitivo de la moneda): Inflation Adjustment Gain (Loss).
RT: Technical resolutions issued by the FACPCE.
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RT 26: Technical resolution No, 26 issued by the FACPCE, amended by RT29 and RT43.
Telecom: Telecom Argentina and its consolidated subsidiaries.
Telecom USA/ Núcleo/ Personal Envíos/ Tuves Paraguay/ Televisión Dirigida/ Adesol/ Opalker/Ubiquo/ Micro Fintech Holding: Names corresponding to foreign companies Telecom Argentina USA Inc., Núcleo S.A.E., Personal Envíos S.A., Tuves Paraguay S.A., Televisión Dirigida S.A., Adesol S.A., Opalker S.A., Ubiquo Chile Spa and Micro Fintech Holding LLC, respectively, companies that are directly or indirectly controlled according to the definition of the General Corporations Law.
USA: United States of America
UVA (Unidad de Valor Adquistivo): Purchasing Value Unit, an index developed and published by the Banco Central de la República Argentina.
VLG: VLG S.A.U. (formerly VLG Argentina LLC), a company that was merged and absorbed by CVH.
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TELECOM ARGENTINA S.A.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In millions of Argentine pesos in current currency - Note 1.d)
March 31, | December 31, | ||
ASSETS | Note | 2024 | 2023 |
Current Assets | |||
Cash and cash equivalents | 2 | 150,604 | 242,252 |
Investments | 2 | 315,094 | 187,964 |
Trade receivables | 3 | 208,647 | 201,457 |
Other receivables | 4 | 51,774 | 51,611 |
Inventories | 5 | 44,208 | 47,805 |
Total current assets | 770,327 | 731,089 | |
Non-Current Assets | |||
Trade receivables | 3 | 355 | 382 |
Other receivables | 4 | 21,351 | 29,763 |
Deferred income tax assets | 13 | 16,282 | 20,947 |
Investments | 2 | 32,937 | 36,097 |
Goodwill | 6 | 2,337,135 | 2,340,988 |
PP&E | 7 | 3,283,930 | 3,444,604 |
Intangible assets | 8 | 1,355,603 | 1,374,340 |
Right of use assets | 9 | 325,633 | 327,036 |
Total non-current assets | 7,373,226 | 7,574,157 | |
TOTAL ASSETS | 8,143,553 | 8,305,246 | |
LIABILITIES | |||
Current Liabilities | |||
Trade payables | 10 | 415,440 | 541,069 |
Borrowings | 11 | 854,148 | 854,356 |
Salaries and social security payables | 12 | 127,776 | 138,188 |
Income tax payables | 13 | 2,929 | 2,368 |
Other taxes payables | 14 | 61,300 | 59,357 |
Leases liabilities | 15 | 40,178 | 43,570 |
Other liabilities | 16 | 26,736 | 31,022 |
Provisions | 17 | 5,228 | 8,097 |
Total current liabilities | 1,533,735 | 1,678,027 | |
Non-Current Liabilities | |||
Trade payables | 10 | 11,192 | 1,386 |
Borrowings | 11 | 1,591,888 | 2,372,263 |
Salaries and social security payables | 12 | 5,836 | 5,654 |
Deferred income tax liabilities | 13 | 906,453 | 699,192 |
Other taxes payables | 14 | 7 | 17 |
Leases liabilities | 15 | 73,351 | 90,835 |
Other liabilities | 16 | 10,213 | 13,710 |
Provisions | 17 | 35,022 | 39,599 |
Total non-current liabilities | 2,633,962 | 3,222,656 | |
TOTAL LIABILITIES | 4,167,697 | 4,900,683 | |
EQUITY | |||
Equity attributable to Controlling Company | 3,885,937 | 3,286,979 | |
Equity attributable to non-controlling interest | 89,919 | 117,584 | |
TOTAL EQUITY(See Consolidated Statements of | 3,975,856 | 3,404,563 | |
Changes in Equity) | |||
TOTAL LIABILITIES AND EQUITY | 8,143,553 | 8,305,246 |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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TELECOM ARGENTINA S.A.
CONSOLIDATED INCOME STATEMENTS
(In millions of Argentine pesos in current currency, except per share data in Argentine pesos in current currency - Note 1.d)
Three-month period | |||
ended March 31, | |||
Note | 2024 | 2023 | |
Revenues | 21 | 683,916 | 833,213 |
Employee benefit expenses and severance payments | 22 | (157,824) | (200,408) |
Interconnection and transmission costs | (25,088) | (24,855) | |
Fees for services, maintenance, materials and supplies | 22 | (100,037) | (97,685) |
Taxes and fees with the Regulatory Authority | 22 | (52,700) | (64,161) |
Commissions and advertising | (35,507) | (48,550) | |
Cost of equipment and handsets | 22 | (23,857) | (38,663) |
Programming and content costs | (37,456) | (47,770) | |
Bad debt expenses | 3 | (17,020) | (25,208) |
Other operating expenses | 22 | (27,293) | (33,620) |
Depreciation, amortization and impairment of Fixed Assets | 22 | (233,281) | (264,278) |
Operating loss | (26,147) | (11,985) | |
Earnings (losses) from associates and joint ventures | 2 | (1,359) | 1,648 |
Financial costs | 23 | 797,844 | 34,582 |
Other financial results, net | 23 | 115,520 | 40,567 |
Income before income tax | 885,858 | 64,812 | |
Income tax benefit (expense) | 13 | (210,826) | 45,665 |
Net income for the period | 675,032 | 110,477 | |
Attributable to: | |||
Controlling Company | 672,260 | 107,669 | |
Non-controlling interest | 2,772 | 2,808 | |
675,032 | 110,477 | ||
Earnings per share for income attributable to the Controlling | 1.c | 312.14 | 49.99 |
Company - Basic and diluted | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. See Note 22 for additional information on operating expenses per function.
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TELECOM ARGENTINA S.A.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions of Argentine pesos in current currency - Note 1.d)
Three-month period
ended March 31,
2024 | 2023 | |
Net income for the period | 675,032 | 110,477 |
Other comprehensive income | ||
Items that may be reclassified to profit or loss | ||
Currency translation adjustments (no effect on Income Tax) | (104,170) | (2,987) |
DFI effects classified as hedges | 698 | (791) |
Income Tax effects on DFI classified as hedges and others | (267) | 295 |
Other comprehensive loss, net of tax | (103,739) | (3,483) |
Total comprehensive income for the period | 571,293 | 106,994 |
Attributable to: | ||
Controlling Company | 598,958 | 104,663 |
Non-controlling interest | (27,665) | 2,331 |
571,293 | 106,994 |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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TELECOM ARGENTINA S.A.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In millions of Argentine pesos in current currency - Note 1.d)
Owners contribution | Reserves | ||||||||||
Outstanding | Special | Equity | Equity | ||||||||
shares | |||||||||||
Inflation | reserve for | Other | attributable | attributable | |||||||
Capital | Contribu- | Facultati- | Retained | Total | |||||||
adjustment | Legal | IFRS | comprehens- | to | to non- | ||||||
nominal | ted Surplus | ve (2) | earnings | Equity | |||||||
implementa- | ive loss | controlling | controlling | ||||||||
value | |||||||||||
tion | company | interest | |||||||||
(1) | |||||||||||
Balances as of January 1, 2023 | 2,154 | 1,301,576 | 3,208,341 | 77,354 | 28,363 | 278,680 | (155,136) | (981,309) | 3,760,023 | 76,542 | 3,836,565 |
Comprehensive income: | |||||||||||
Net income for the period | - | - | - | - | - | - | - | 107,669 | 107,669 | 2,808 | 110,477 |
Other comprehensive loss | - | - | - | - | - | - | (3,006) | - | (3,006) | (477) | (3,483) |
Total Comprehensive income (loss) | - | - | - | - | - | - | (3,006) | 107,669 | 104,663 | 2,331 | 106,994 |
Balances as of March 31, 2023 | 2,154 | 1,301,576 | 3,208,341 | 77,354 | 28,363 | 278,680 | (158,142) | (873,640) | 3,864,686 | 78,873 | 3,943,559 |
Balances as of January 1, 2024 | 2,154 | 1,301,576 | 1,914,960 | 77,354 | 28,363 | 432,389 | (79,042) | (390,775) | 3,286,979 | 117,584 | 3,404,563 |
Comprehensive income: | |||||||||||
Net income for the period | - | - | - | - | - | - | - | 672,260 | 672,260 | 2,772 | 675,032 |
Other comprehensive loss | - | - | - | - | - | - | (73,302) | - | (73,302) | (30,437) | (103,739) |
Total Comprehensive income (loss) | - | - | - | - | - | - | (73,302) | 672,260 | 598,958 | (27,665) | 571,293 |
Balances as of March 31, 2024 | 2,154 | 1,301,576 | 1,914,960 | 77,354 | 28,363 | 432,389 | (152,344) | 281,485 | 3,885,937 | 89,919 | 3,975,856 |
- See Note 20 to these unaudited condensed consolidated financial statements.
- Correspond to the Voluntary reserve to maintain the Company's level of capital expenditures and its current solvency level.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of Argentine pesos in current currency - Note 1.d)
Three-month period | ||||
ended March 31, | ||||
Note | 2024 | 2023 | ||
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | ||||
Net income for the period | 675,032 | 110,477 | ||
Adjustments to reconcile net income to net cash flows provided by operating | ||||
activities | ||||
Allowances deducted from assets | 19,009 | 23,074 | ||
Depreciation of PP&E | 7 | 177,941 | 205,796 | |
Amortization of intangible assets | 8 | 20,873 | 33,299 | |
Amortization of rights of use assets | 9 | 34,386 | 24,118 | |
Disposals of Fixed Assets and consumption of materials | 338 | 268 | ||
Earnings (losses) from associates and joint ventures | 2.a | 1,359 | (1,648) | |
Financial results and others | (950,299) | (108,452) | ||
Income tax | 13 | 210,826 | (45,665) | |
Income tax paid (*) | (252) | (1,133) | ||
Net increase in assets | 2.b | (120,468) | (103,848) | |
Net increase in liabilities | 2.b | 102,484 | 69,832 | |
Total cash flows from operating activities | 171,229 | 206,118 | ||
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | ||||
Payments for PP&E | (68,032) | (68,606) | ||
Payments for intangible asset acquisitions | (5,991) | (3,305) | ||
Dividends from associates | 2.b | 281 | - | |
Proceeds from the sale of PP&E and intangible assets | 2,566 | 4 | ||
Payments for investments not considered as cash and cash equivalents | (161,394) | (166,473) | ||
Proceeds from sale of investments not considered as cash and cash equivalents | 8,352 | 698 | ||
Total cash flows used in investing activities | (224,218) | (237,682) | ||
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | ||||
Proceeds from borrowings | 2.b | 191,171 | 163,080 | |
Payment of borrowings | 2.b | (73,487) | (65,015) | |
Payment of interests and related expenses | 2.b | (76,409) | (70,736) | |
Payments of leases liabilities | 15 | (13,619) | (17,594) | |
Total cash flows from financing activities | 27,656 | 9,735 | ||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (25,333) | (21,829) | ||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR | 242,252 | 189,109 | ||
NET FOREIGN EXCHANGE DIFFERENCES AND RECPAM ON CASH AND CASH | (66,315) | (5,950) | ||
EQUIVALENTS | ||||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 150,604 | 161,330 | ||
(*) | Three-month period | |||
ended March 31, | ||||
2024 | 2023 | |||
Corresponding to Controlling Company | - | (1,005) | ||
Corresponding to subsidiaries | (252) | (128) | ||
(252) | (1,133) |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. See Note 2.b for additional information on the consolidated statements of cash flows.
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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2024 AND 2023 (*)
(In millions of Argentine pesos in current currency, except as otherwise indicated)
INDEX
Page | |
Note 1 - Basis of preparation of the unaudited condensed consolidated financial statements and | F-9 |
significant accounting policies | |
Note 2 - Cash and cash equivalents and Investments. Additional information on the | F-12 |
consolidated statements of cash flows. | |
Note 3 - Trade receivables | F-14 |
Note 4 - Other receivables | F-14 |
Note 5 - Inventories | F-14 |
Note 6 - Goodwill | F-15 |
Note 7 - PP&E | F-15 |
Note 8 - Intangible assets | F-15 |
Note 9 - Right of use assets | F-16 |
Note 10 - Trade payables | F-16 |
Note 11 - Borrowings | F-16 |
Note 12 - Salaries and social security payables | F-17 |
Note 13 - Income tax payable and Deferred income tax assets/liabilities | F-17 |
Note 14 - Other taxes payables | F-18 |
Note 15 - Leases liabilities | F-18 |
Note 16 - Other liabilities | F-19 |
Note 17 - Provisions | F-19 |
Note 18 - Additional information of financial assets and liabilities | F-20 |
Note 19 - Purchase Commitments | F-21 |
Note 20 - Equity | F-21 |
Note 21 - Revenues | F-22 |
Note 22 - Operating expenses | F-22 |
Note 23 - Financial results | F-23 |
Note 24 - Balances and transactions with Companies under Section 33 - Law No. 19,550 and | F-23 |
Related Parties | |
Note 25 - Recent developments corresponding to the three-month period ended March 31, 2024 | F-25 |
Note 26 - Subsequent events to March 31, 2024 | F-25 |
(*) By convention the definitions used in the notes are in the Glossary of Terms.
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Telecom Argentina SA published this content on 20 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2024 21:16:55 UTC.