BUENOS AIRES, Argentina,
May 9, 2019 /PRNewswire/ --
Note: For the figures included in their FFSS, the
Company has accounted for the effects of inflation adjustment
adopted by Resolution 777/18 of the Comisión Nacional de
Valores ("CNV"), which establishes that the restatement will be
applied to the annual financial statements, for intermediate and
special periods ended as of March 31,
2018 inclusive. Accordingly, the reported figures
corresponding to 1Q19 include the effects of the adoption of
inflationary accounting in accordance with IAS
29. Finally, comments related to variations of results
of 1Q19 and vs. 1Q18 mentioned in this press release correspond to
"figures restated by inflation" or "constant". Moreover, Table 3
contemplates information broken down by segment for periods ended
as of March 31 of 2019 and 2018 as
analyzed by the Executive Committee and the CEO, who receive
periodically the financial information of Telecom and its
subsidiaries (in historical values) For further details, please
refer to the titles of the financial tables beginning from page
11.
- Consolidated Revenues amounted to P$44,328 million in 1Q19,
of which Service Revenues reached P$41,521 million. Considering the
breakdown of Service Revenues, Mobile Services amounted P$14,813
million; Internet Services totaled P$10,152 million, while Cable TV
Services and Fixed Telephony and Data Services amounted to P$9,575
million and P$6,865 million, respectively.
- Mobile Internet revenues of Personal in Argentina reached a 73% participation in
Service Revenues.
- Mobile subscribers in Argentina: 18.4 million in 1Q19, while Cable
TV subscribers and Broadband accesses totaled 3.4 million and 4.1
million, respectively.
- Mobile ARPU of Personal in Argentina (restated in terms of the measuring
unit as of March 31, 2019) in 1Q19
totaled P$225.5 per month in 1Q19 (-11.5% vs. 1Q18).
- Broadband ARPU (restated in terms of the measuring unit as
of March 31, 2019)
reached P$819.4 per month in 1Q19 (-7.1% vs. 1Q18). Monthly
churn was 2.0% in 1Q19.
- Cable TV ARPU (restated in terms of the measuring unit as of
March 31, 2019) amounted to P$871.5
per month in 1Q19 (-12.2% vs. 1Q18).
- Consolidated Operating costs -including D&A and
impairment of PP&E and intangible assets- totaled P$39,832
million in 1Q19 (+2.7% vs. 1Q18).
- Operating Income before Depreciation and Amortization
reached P$14,491 million in 1Q19 (-21.4% vs. 1Q18), 32.7% of
Consolidated Revenues.
- Net Income amounted to P$1,279 million in 1Q19. Net Income
attributable to the Controlling Company amounted to P$1,232 million
during the same period. The variation of the mentioned Net Income
vs. 1Q18 mainly reflects the impact of the decrease in Operating
Income and lower financial results.
- Capex reached P$9,067 million in 1Q19, equivalent to 20.5%
of Consolidated Revenues.
- Net Financial Debt Position: P$71,061 million in
1Q19.
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IAS
29
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IAS
29
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|
|
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(in
million P$ adjusted by inflation, except where
noted)**
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As of March,
31
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As of March,
31
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Δ $
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Δ %
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2019
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2018
|
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Consolidated
Revenues
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44,328
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48,725
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(4,397)
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-9.0%
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Operating Income
before D&A
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14,491
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18,433
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(3,942)
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-21.4%
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Operating
Income
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4,496
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9,939
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(5,443)
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-54.8%
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Net Income
attributable to Controlling Company
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1,232
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11,374
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(10,142)
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-89.2%
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Shareholders' equity
attributable to Controlling Company
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253,167
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256,330
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(3,163)
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-1.2%
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Net Financial
Position - (Debt) / Cash
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(71,601)
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(49,822)
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(21,779)
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43.7%
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CAPEX *
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9,067
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9,327
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(260)
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-2.8%
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Fixed lines in
service (in thousand lines)
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3,452
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3,741
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(289)
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-7.7%
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Mobile customers (in
thousand)
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20,784
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21,863
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(1,079)
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-4.9%
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Personal (Argentina)
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18,152
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18,924
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(772)
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-4.1%
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Nextel
(Argentina)
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258
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533
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(275)
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-51.6%
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Núcleo (Paraguay) -including Wimax customers-
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2,374
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2,406
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(32)
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-1.3%
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Broadband accesses in
Argentina (in thousand)
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4,114
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4,076
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38
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0.9%
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Cable TV Suscribers
(in thousand)
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3,408
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3,486
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(78)
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-2.2%
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Argentina
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3,265
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3,345
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(80)
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-2.4%
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Uruguay
|
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142
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142
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-
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-
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Average Billing per
user (ARBU) Fixed Telephony / voice (in P$ - Restated by
inflation)
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314.3
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314.3
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-
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-
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Average Revenue per
user (ARPU) Mobile Services - Personal (in P$ - Restated by
inflation)
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225.5
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254.8
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(29.3)
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-11.5%
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Average Revenue per
user (ARPU) Broadband (in P$ - Restated by inflation)
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819.4
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882.3
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(62.9)
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-7.1%
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Average Revenue per
user (ARPU) Cable TV (in P$ - Restated by inflation)
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871.5
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993.1
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(121.6)
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-12.2%
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*(CAPEX in
constant measuring unit.)
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**(Figures may not
sum up due to rounding)
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*Unaudited non
financial data
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Telecom Argentina S.A. ('Telecom Argentina') - (NYSE: TEO; BASE:
TECO2), one of Argentina's leading
telecommunications companies, announced today a Net Income of
P$1,279 million for the period ended March
31, 2019. Net Income attributable to the Controlling Company
amounted to P$1,232 million.
It is worth mentioning that the comparative figures for the
previous reporting periods have been restated so that the resulting
comparative information is presented in terms of the current unit
of measurement as of March 31,
2019.
The following table shows the evolution of the consumer price
index (National CPI) for the last three fiscal years and to
March 31, 2018 and 2019 according to
the official statistics (INDEC), which were used to restate the
figures in constant currency:
|
As of
December
31, 2016
|
As of
December
31, 2017
|
As of
December 31,
2018
|
As of
March 31,
2018
|
As of
March 31,
2019
|
Price Index
Variation
|
|
|
|
|
|
Annual
|
34,6%
|
24,7%
|
47,6%
|
25,1%
|
54,8%
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3 year
cumulative
|
102,2%
|
96,6%
|
147,8%
|
97,3%
|
136,4%
|
3 month
cumulative
|
n/a
|
n/a
|
n/a
|
6,6%
|
11,8%
|
3 month
average
|
n/a
|
n/a
|
n/a
|
2,4%
|
4,5%
|
During 1Q19, Consolidated Revenues decreased by 9% in real terms
to P$44,328 million (-P$4,397 million vs. 1Q18). This decrease is
reflected mainly in Mobile Service, Internet and Cable TV revenues,
partially offset by greater Fixed Telephony and data revenues. and
by the increase in Revenues of Internet Services and Fixed
Telephony and Data Services. Total Revenues contain approximately
P$1,868 million and P$18,027 million, for the 1Q19 and 1Q18,
respectively, related to the restatement in terms of the measuring
unit as of March 31, 2019.
Operating Income totaled P$4,496 million in 1Q19 (-P$5,443
million or -54.8% vs 1Q18).
Consolidated Operating Revenues
Mobile Services
As of March 31, 2018, mobile
clients amounted to 20.8 million.
In 1Q19, mobile services revenues represented P$14,813 million
(-15.1% vs. 1Q18). The effect generated by the restatement in terms
of the measuring unit as of March 31,
2019, included in mobile services revenues amounts to,
approximately, P$612 million and P$6,498 million, for the 1Q19 and
1Q18, respectively. This effect was partially offset by the
increase in the mobile plan prices. The commercial strategy
was focused on promoting the consumption of mobile internet
services through Personal´s 4G network, the fastest network in the
country according to the results of international referents who
measure the network standards through the experience of the clients
worldwide.
In turn, equipment revenues amounted to P$2,807 million (-P$699
million or -19.9% vs. 1Q18). This variation was mainly due to a
decrease in the quantities sold, partially offset by the increase
in prices of handset sales.
Mobile Services in Argentina
As of March 31, 2019, Personal
reached 18.2 million subscribers in Argentina, where postpaid clients represented
40% of the subscriber base.
In 1Q19, mobile service revenues in Argentina (excluding equipment sales) amounted
to P$12,936 million (-18.6% vs. 1Q18). The approximate increase in
average mobile plans was 39% when compared with those of 1Q18.
Mobile internet revenues reached 73% of service revenues of
Personal in Argentina (vs. 59% in
1Q18).
The average monthly revenue per user ('ARPU' – restated in
constant currency as of March 31,
2019) of Personal in Argentina amounted to P$225.5 during 1Q19
(-11.5% vs. 1Q18).
As of March 31, 2019, Nextel IDEN
subscriber base reached approximately 0.3 million subscribers,
where postpaid clients represented 79% of the subscriber base and
prepaid clients represented the remaining 21%.
Commercial Initiatives
In the first months of the year the brands Personal and Fibertel
joined to offer the best Wi-Fi connectivity experience and 4G
service, with benefits for the clients of Club Personal. As in
other seasons the Company offered free connectivity in Pinamar,
Cariló and Playa Grande complex in Mar del
Plata.
In addition to the events with DJs and shows of well-known
artists in Playa Grande (Mar del
Plata), after beach with outstanding artists were included.
In Pinamar, Personal Fibertel Buses were available for the free
transfer of tourists within the city´s beaches. In Cariló, Wi-Fi
service was offered in the shopping mall and the most popular
beaches through urban modems.
Moreover, within the framework of the open innovation program
"Garage Personal", five finalist startups which will develop
Entertainment, Fintech, Smart City, IoT and Big Data businesses
were selected. The selected ideas from among more than 400 projects
will participate in nine months of development, together with
Telecom and Incutex, a strategical partner of this initiative, to
enhance its business model in speed and at the lowest possible
cost. The program also provides an economic incentive of up to
875.000 pesos, commercial, technical,
legal and financial mentoring of experts in each field.
Personal in Paraguay
('Núcleo')
As of March 31, 2019, Núcleo's
subscriber base reached around 2.4 million clients. Prepaid and
postpaid customers represented 84% and 16%, respectively.
Núcleo generated service revenues equivalent to P$1,877 million
during 1Q19 (+21.3% vs. 1Q18). Internet revenues represented 48.4%
of 1Q19 service revenues (vs. 42.5% in 1Q18).
Cable TV Services
Cable TV service revenues reached P$9,575 million in 1Q19 (-9.1%
vs. 1Q18). The effect generated by the restatement in terms of the
measuring unit as of March 31, 2019,
included in Cable TV service revenues amounts to, approximately,
P$411 million and P$3,870 million, for the 1Q19 and 1Q18,
respectively. This effect was partially offset by an approximate
increase in average Cable TV plans of 39% when compared with those
of 1Q18. Cable TV subscribers totaled almost 3.4 million, while the
Cable TV ARPU (restated in constant currency as of March 31, 2019) reached P$871.5 during 1Q19,
decreasing -12.2% vs. 1Q18. Moreover, average monthly churn during
1Q19 was 1.5%.
Through an in-Company development, the web version of
Cablevisión Flow was updated aiming to optimize user experience.
The project demanded 7 months of work and as a result there are
significant improvements in the interface, functional new features
and greater compatibility with OS and browsers such as Chrome,
Firefox and Opera. The team guidelines are the constant evolution,
the platform fluency and the collaboration between the internal
groups and the suppliers. This was the first of many of Flow
Factory's management projects, which is already working in new
advances for Flow´s environment.
With the aim to offer to its clients a better entertainment
experience in order to enjoy contents through multiple screens,
Flow incorporated Netflix to its decoder so that the users have
access to Netflix´s exclusive series and movies. The clients who
have a Flow box and a Netflix account, are now able to access the
service directly through a dedicated app. Moreover, Flow´s new
remote controller will have a Netflix´s direct access button that
will allow the users to find all the content they want to watch at
the moment, in a simple and comfortable way.
Fixed Telephony and Data Services
During 1Q19, revenues generated by fixed telephony and data
reached P$6,865 million in 1Q19, +10.6% vs. 1Q18. The increase in
fixed telephony services was mainly explained by higher revenues
from data services in a context that evidences the growing position
of the Company as an integrated ICT provider (Datacenter, VPN,
among other services) in the segment of Corporate and Government
customers. Regarding the fixed telephony services, monthly fee
price increases that came into effect for both corporate and
residential fixed line customers, and additionally due to the
bundled offer of packs that include voice and internet
services, that aim to achieve higher levels of customer
loyalty. The effect generated by the restatement in terms of the
measuring unit as of March 31, 2019,
included in Fixed telephony and data service revenues amounts to,
approximately, P$284 million and P$2,283 million, for the 1Q19 and
1Q18, respectively.
As a result, the average monthly revenue billed per user ('ARBU'
- restated in constant currency as of March
31, 2019) of fixed telephony reached P$314.3 in 1Q19,
showing no variation vs. 1Q18.
Meanwhile, Data revenues increase (services mainly offered to
Corporate customers, SMEs, Government and to other operators) was
mainly driven by FX rate variations that affected those contracts
that were adjusted by the $/US$ exchange rate.
Telecom participated in the 13th edition of Expoagro fair
presenting its smart solutions portfolio for the agricultural
sector. Those attending the fair were able to visit the
FiberCorp-Telecom stand, participate in conversations with the
company´s referents and experience demonstrations of animal and
environment monitoring services, establishments automatization and
renewable energies, which helps producers to improve the efficiency
of its operations in a year marked by record crop expectations. In
addition, Telecom provided fixed and mobile connectivity for
communications during the event.
Internet Services
Internet services revenues totaled P$10,152 million during 1Q19,
-6.0% vs. 1Q18. The effect generated by the restatement in terms of
the measuring unit as of March 31,
2019, included in Internet services revenues amounts to,
approximately, P$436 million and P$3,948 million, for the 1Q19 and
1Q18, respectively. This effect was partially offset by an
approximate increase in average Internet plans of 39% when compared
with those of 1Q18. As of March 31,
2019, total broadband accesses increased to more than 4.1
million (+0.9% vs. 1Q18). Additionally, broadband ARPU (restated in
constant currency as of March 31,
2019) amounted to P$819.4 per month in 1Q19 (-7.1% vs.
1Q18). Moreover, the average monthly churn rate for the
period was 2.0%. On the other hand, clients with service of
20Mb or higher currently represent 44% of the total customer base
as of 1Q19.
The Company is taking forward the integration of its brands,
products and services. In this sense, a process of unification of
its broadband brands was started by integrating the Arnet brand
into the Fibertel family, under the name of "Fibertel Lite" in the
case of Arnet products up to 20 Mb and under the name "Fibertel" in
the case of products up to 100 Mb.
In terms of communication the change of brands from Arnet to
Fibertel aims to allow the costumers to identify themselves under
the same brand of internet access service. The brand change is
being informed in advance and through different direct contact
points to each one of the clients (message in invoice, SMS, IVR,
etc.)
Consolidated Operating Costs
Consolidated Operating Costs (including D&A and impairment
of PP&E and intangible assets) totaled P$39,832 million in
1Q19, an increase of P$1,046 million, or 2.7% vs. 1Q18. These
higher operating costs vs. 1Q18 are mainly associated with higher
depreciation, amortization and impairment of PP&E, intangibles
and rights-of-use. What is more, the operating cost excluding
D&A registered a decrease of 1.5% mainly due to lower
interconnexion and transmission costs, taxes and fees, commissions
and advertising and cost of handset solds.
The cost breakdown is as follows:
- Employee benefit expenses and severance payments totaled
P$8,783 million (+6.0% vs. 1Q18). The increase was mainly caused by
increases in salaries to unionized and non‐unionized employees
together with the associated social security contributions and
severance payments, partially offset by a decrease in total
employees of 7.0% (the number of employees totaled 24,908 in 1Q19
vs. 26,770 in 1Q18). The effect generated by the restatement in
terms of the measuring unit as of March 31,
2019, included in labor costs and severance payments amounts
to, approximately, P$369 million and P$3,072 million, for the 1Q19
and 1Q18, respectively.
- Interconnection and transmission costs (including TLRD,
Roaming, international settlement charges and lease of circuits)
totaled P$1,466 million, down 2.7% vs. 1Q18, decreasing mainly due
to operative efficiencies as of March
31,2019, compared with the same period last year, partially
offset by higher traffic and due to the FX increase reflected over
services denominated in US$. The effect generated by the
restatement in terms of the measuring unit as of March 31, 2019, included in interconnection and
transmission costs amounts to, approximately, P$60 million and
P$576 million, for the 1Q19 and 1Q18, respectively.
- Fees for services, maintenance, materials and supplies
amounted to P$4,504 million (+5.5% vs. 1Q18). These higher costs
are mainly due to increases in fees for services, mostly related to
call centers and higher professional fees generated by a greater
level of activity driven mainly by new Company projects and by
services linked to operational management in general. There were
also higher technical maintenance costs and higher hardware and
software maintenance costs due to price increases and the US$/P$ FX
fluctuations. The effect was partially offset by process synergies
resulting from the merger between Telecom and Cablevisión in
January 2018. The effect
generated by the restatement in terms of the measuring unit as of
March 31, 2019, included in fees for
services, maintenance, materials and supplies amounts to,
approximately, P$369 million and P$1,389 million, for the 1Q19 and
1Q18, respectively.
- Taxes and fees with regulatory authorities reached P$3,483
million (-10.9% vs. 1Q18). This decrease corresponds mainly to
lower sales in 1Q19 vs 1Q18, partially offset by impact of the
application of resolution ENACOM 840/18 that introduced changes in
the determination of the radioelectric spectrum fee. The effect
generated by the restatement in terms of the measuring unit as of
March 31, 2019, included in taxes and
fees with regulatory authorities amounts to, approximately, P$150
million and P$1,441 million, for the 1Q19 and 1Q18,
respectively.
- Commissions and advertising (Commissions paid to agents,
prepaid card distribution commissions and others) totaled P$2,518
million (-12.6% vs. 1Q18). This decline is due to lower charges in
agent commissions as a consequence of a reorganization in the sales
channels and due to a slight decrease in advertising related to the
synergies achieved after the merger that allowed to reduce cost
even with greater presence in the various media, partially offset
by higher collection fees. The effect generated by the restatement
in terms of the measuring unit as of March
31, 2019, included in commissions and advertising amounts
to, approximately, P$105 million and P$1,172 million, for the 1Q19
and 1Q18, respectively.
- Cost of handsets sold amounted to P$2,182 million (-16.7% vs.
1Q18). Of this amount, the majority corresponds to cost of handsets
in Argentina, which decrease
compared with 1Q18, mainly due to lower quantities sold, partially
offset by an increase in purchase price of the handsets compared
with 1Q18. The effect generated by the restatement in terms of the
measuring unit as of March 31, 2019,
included in cost of handsets sold amounts to, approximately, P$336
million and P$1,094 million, for the 1Q19 and 1Q18,
respectively.
- Programming and content costs totaled P$3,412 million (showed
no variation vs. 1Q18). The effect generated by the restatement in
terms of the measuring unit as of March 31,
2019, included in cost of handsets sold amounts to,
approximately, P$150 million and P$1,268 million, for the 1Q19 and
1Q18, respectively
- Depreciation, amortization and impairment of PP&E,
intangible assets and rights-of-use amounted P$9,995 million
(+17.7% vs. 1Q18). The increase was due to the impact of the
amortization of the incorporations after March 31, 2018, as a consequence of the Capex
Plan that the Company is developing and the effect of the
application since January 1, 2019, of
IFRS 16 being the charge P$617 million, partially offset by assets
that have stopped amortizing in 2019. The effect generated by the
restatement in terms of the measuring unit as of March 31, 2019, included in depreciation,
amortization and impairment of PP&E, intangible assets and
right-of-use amounts to, approximately, P$3,587 million and P$3,827
million, for the 1Q19 and 1Q18, respectively.
- Other Costs totaled P$3,489 million (+2.5% vs. 1Q18), of which
bad debt expenses reached P$1,448 million (+49.0% vs. 1Q18), and
whose increase is mainly due to the higher delinquency levels,
partially offset by the decrease in other operating costs (which
includes charges for trials and other contingencies, energy and
other public services, insurances, rents, internet capacity, among
others), which totaled P$2,041 million (-16.0% vs. 1Q18).
Net Financial Results
The Net Financial Results (including Financial Expenses on Debt
and Other Financial Results, net) showed a gain of P$105 million in
1Q19, compared with a gain of P$3,817 million in 1Q18. The result
was mostly due to higher FX losses (including results of NDF),
which reached P$1,860 million (compared with a gain of P$45 million
in 1Q18), mainly because of the strong depreciation of the peso
during the 1Q19 and also a lower RECPAM, which totaled P$3,621
million (down P$1,048 million compared with 1Q18). Additionally,
higher net interest losses were registered totaling P$977 million
(a decrease of P$698 million vs 1Q18), and finally lower gains on
investments for P$56 million (a decrease of P$26 millions vs
1Q18).
Consolidated Net Financial Debt
As of March 31, 2019, net
financial debt position (cash, cash equivalents plus financial
investments and financial NDF minus loans) totaled P$71,601
million,
increasing P$21,779 or 43.7% when compared to the consolidated net
financial debt position as of March 31,
2018 (restated in constant currency as of March 31, 2019)
Capital Expenditures
During 1Q19, the Company invested P$9,067 million, decreasing
approximately 2.8% as of 1Q18. The investments were focused on
projects that maximize the network capacity and on the development
of products and services that contribute to address the customer's
needs that today demand for connectivity and data availability.
Moreover, transmision and transport networks has been extended to
unify the differents access technologies, reconverting the copper
fixed networks into fiber or coaxial-fiber hybrid networks,
in order to face the the increaseing services demand from mobile
and fixed clients. Likewise, significant investments have
been made in the charging, billing and relationship systems with
customers. The Company aims to improve the capacity and coverage of
its networks, which is key factor for the transformation towards
convergent services with international quality standards, but also
to leverage the content business, with Flow as an integral content
platform and entertainment center, whose competitive advantages and
differential features place it above other platforms. In relative
terms, CAPEX reached 20.5% of consolidated revenues in 1Q19 (vs.
19.1% in 1Q18).
During the first quarter of 2019 Telecom signed agreements to
increase the infrastructure of its mobile network, with the
municipalities of Almirante Brown,
Malvinas Argentinas and San
Antonio de Areco, where investments for a total amount of
P$411 million were announced. The construction of new mobile sites
expected in these plans is essential to enlarge the coverage and
capacity of Personal´s 4G network, as well as the structures and
last mile modernization in the whole network. In this way, not only
connections´ speed and capacity improve, but also the customers´
browsing experience is renewed.
Personal´s 4G network, the fastest in Argentina, continues growing all around the
country: there are more than 12.2 million clients who are able to
use the service in more than 1,600 localities and in all the
provinces´ capitals.
Additionally, Telecom successfully implemented "4UP - Central
Finance", a project through which the financial management and
payments, both from Telecom and Cablevisión, were unified. In
recognition for this project the Company received the ASUG
Argentina Award – Official Group to SAP Project Innovation, because
it was the first time that S/4 HANA Central Finance with Central
Payments were implemented to the systems. This allows the
accountable unification and the centralized realization of payments
through SAP S/4 HANA Central Finance. The project was the first one
developed as a unified company, initiating a new stage in the
organization culture.
Relevant Matters
Partial prepayment of the syndicated loan agreement for up to
US$ 500 signed in October 2018
On March 25, 2019 the Company
partially prepaid US$ 100 million of
the outstanding amount under the syndicated loan agreement entered
into on October 8, 2019 for up to
US$ 500 million (plus the
corresponding compensatory interest accrued).
Issuance of Notes by Núcleo
The Extraordinary Shareholders' Meeting of Núcleo held on
April 24, 2018 modified sections 3,
7, 9 and 10 of its bylaws in order to adapt them to the regulations
of the securities market, thus becoming Núcleo, as from the
inscription of the modification of its bylaws in the Public
Registry, a Sociedad Anónima Emisora (SAE).
On January 4, 2019, it was
submitted a request to the Comisión Nacional de Valores
(CNV) and the Bolsa de Valores y Productos de Asunción
to register a Global Issuance Program foreseeing the issuance of
bonds for an amount of up to Gs. 500,000 million (approximately
P$3,200 million) in the terms that will be defined by the Board of
Directors for each series.
On February 5, 2019, the CNV
authorized the aforementioned Program through Resolution No.
11E/19. Under this Program, Núcleo proceeded to issue two Series of
Notes, the Series I for Gs. 120,000 million (approximately P$841
million) issued on March 12, 2019 and
Series II for Gs. 30,000 million (approximately P$210 million)
issued on March 28, 2019. Both Series
will accrue quarterly interest at a fixed annual rate of 9.00%, and
will mature within 60 months from the issue date, amortizing the
principal at maturity.
Other Relevant Matters
Destination of Retained Earnings
On April 24, 2019 the General
Ordinary and Extraordinary Shareholders' Meeting at which time the
following Third Item of the Agenda was addressed, resolved:
To approve the proposal of the Board of Directors adjusted as of
March 31, 2019 using the National
Consumer Price Index (IPC Nacional) published on April 16, 2019 pursuant to Resolution No.
777/2018 of the Comisión Nacional de Valores (CNV), consisting of
the following allocation of the Retained Earnings as of
December 31, 2018:
|
In
Pesos
|
Retained Earnings
as of December 31, 2018 (in constant currency as of March 31,
2019)
|
30,102,883,523
|
To Legal
Reserve
|
(297,363,703)
|
To Cash
Dividends
|
(6,300,000,000)
|
To Voluntary reserve
for future cash dividends
|
(7,045,307,602)
|
To Voluntary reserve
to maintain the level of investments in capital assets and the
current level of solvency of the Company
|
(16,460,212,218)
|
To New Fiscal
Year
|
---------
|
Moreover, the following was also approved:
a) The cash dividends for a total amount of P$6,300,000,000
(equivalent to P$2.925214779 per share of P$1 – nominal value
outstanding as of the date) will be made available to shareholders
on May 7, 2019.
b) Delegate to the Board of Directors of the Company the
powers to resolve, based on the evolution of the business, to
withdraw, totally or partially, on one or more times, the amount of
up to P$7,045,307,602 from the "Voluntary reserve for future cash
dividends" and its distribution as cash dividends to the
shareholders, being entitled to exercise these delegated powers
until December 31, 2019.
Telecom Argentina is the parent
company of a leading telecommunications group in Argentina, where it offers, either itself or
through its controlled subsidiaries local and long distance
fixed-line telephony, cellular, data transmission, and pay TV and
Internet services, among other services. Additionally, Telecom
Argentina offers cellular services in Paraguay and pay TV services in Uruguay. The Company commenced operations on
November 8, 1990, upon the Argentine
government's transfer of the telecommunications system in the
northern region of Argentina.
As of May 9, 2019, Telecom
Argentina has 2,168,909,384 shares issued and 2,153,688,011 shares
outstanding.
For more information, please contact Investor Relations:
Solange Barthe
Dennin
(5411) 4968
3752
|
Luis F. Rial
Ubago
(5411) 4968
3718
|
Nahuel
Monsalvo
(5411) 4698
4448
|
|
Voice Mail: (5411) 4968 3628
Fax: (5411) 4968 3616
E-mail: relinver@teco.com.ar
For information about Telecom Argentina's services, visit:
www.telecom.com.ar
www.personal.com.ar
www.personal.com.py
www.arnet.com.ar
www.cablevisionfibertel.com.ar
Disclaimer
This document may contain statements that could constitute
forward-looking statements, including, but not limited to (i) the
Company's expectations for its future performance, revenues,
income, earnings per share, capital expenditures, dividends,
liquidity and capital structure; (ii) the synergies expected from
the merger between the Company and Cablevisión S.A. (or the
Merger); (iii) the implementation of the Company's business
strategy; (iv) the changing dynamics and growth in the
telecommunications and cable markets in Argentina, Paraguay and Uruguay; (v) the Company's outlook for new and
enhanced technologies; (vi) the effects of operating in a
competitive environment; (vii) the industry conditions; (viii) the
outcome of certain legal proceedings; and (ix) regulatory and legal
developments. Forward-looking statements may be identified by words
such as "anticipate," "believe," "estimate," "expect," "intend,"
"plan," "project," "will," "may" and "should" or other similar
expressions. Forward-looking statements reflect the current views
of the management of the Company with respect to future events.
They are not guarantees of future performance and involve certain
risks and uncertainties that are difficult to predict. In addition,
certain forward-looking statements are based upon assumptions as to
future events that may not prove to be accurate. Many factors could
cause actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements that may be expressed or implied by such
forward-looking statements. These factors include, among others:
(i) the Company's ability to successfully implement our business
strategy and to achieve synergies resulting from the Merger; (ii)
the Company's ability to introduce new products and services that
enable business growth; (iii) uncertainties relating to political
and economic conditions in Argentina, Paraguay and Uruguay; (iv) inflation, the devaluation of
the peso, the Guaraní and the Uruguayan peso and exchange rate
risks in Argentina, Paraguay and Uruguay; (v) restrictions on the ability to
exchange Argentine or Uruguayan pesos or Paraguayan guaraníes into
foreign currencies and transfer funds abroad; (vi) the manner in
which the Argentine government regulates Law No. 27,078, the
Argentina Digital Law or, as amended by Decree No. 267/15; (vii)
the creditworthiness of our actual or potential customers; (viii)
the nationalization, expropriation and/or increased government
intervention in companies; (ix) technological changes; (x) the
impact of legal or regulatory matters, changes in the
interpretation of current or future regulations or reform and
changes in the legal or regulatory environment in which the Company
operates; (xi) the effects of increased competition; (xii) reliance
on content produced by third parties; (xiii) increasing cost of the
Company's supplies; (xiv) inability to finance on reasonable terms
capital expenditures required to remain competitive; (xv)
fluctuations, whether seasonal or in response to adverse
macro-economic developments, in the demand for advertising; and
(xvi) the Company's ability to compete and develop our business in
the future. Many of these factors are macroeconomic and regulatory
in nature and therefore beyond the control of the Company's
management. Should one or more of these risks or uncertainties
materialize, or underlying assumptions prove incorrect, actual
results may vary materially from those described herein as
anticipated, believed, estimated, expected, intended, planned or
projected. The Company does not intend and does not assume any
obligation to update the forward-looking statements contained in
this document. These forward-looking statements are based upon a
number of assumptions and other important factors that could cause
our actual results, performance or achievements to differ
materially from our future results, performance or achievements
expressed or implied by such forward-looking statements. Readers
are encouraged to consult the Company's Annual Report on Form 20-F
and the periodic filings made on Form 6-K, which are periodically
filed with or furnished to the United States Securities and
Exchange Commission, as well as the presentations periodically
filed before the Argentine Securities and Exchange Commission
(Comisión Nacional de Valores) and the Buenos Aires Stock Exchange
(Bolsas y Mercados Argentinos) , for further information concerning
risks and uncertainties faced by the Company.
Contacts:
Solange Barthe Dennin
(54 11) 4968-3752
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content:http://www.prnewswire.com/news-releases/telecom-argentina-sa-announces-consolidated-results-for-the-first-quarter-of-fiscal-year-2019-1q19-300847294.html
SOURCE Telecom Argentina S.A.