BUENOS AIRES, March 9, 2020 /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 December 31,
2018 inclusive. Accordingly, the reported figures
corresponding to FY19 include the effects of the adoption of
inflationary accounting in accordance with IAS
29. Finally, comments related to variations of results
of FY19 and vs. FY18 mentioned in this press release correspond to
"figures restated by inflation" or "constant".
- For comparative purposes, it is important to highlight that
the results restated for inflation corresponding to December 2018 contain the effect of year over
year inflation as of December 2019,
which reaches 53.8%.
- Consolidated Revenues of Telecom Argentina amounted to
P$237,024 million in FY19, of which Service Revenues totaled
P$222,586 million. During 4Q19 and in a context of inflationary
acceleration, Telecom Argentina was able to maintain its Service
Revenues in real terms when compared with the same quarter of the
previous year (which increased 0.4% in real terms in 4Q19 vs.
4Q18), not only due to a sustained demand for higher value services
but also for convergent products. Additionally, this had a positive
impact over the ARPUs in real terms, reducing the year over year
gap with inflation during 4Q19.
- Mobile clients in Argentina
reached 19.1 million in FY19, increasing in more than 700 thousand
vs. FY18. In turn, cable TV subscribers and broadband accesses
totaled 3.5 million and 4.1 million, respectively, remaining
relatively stable. In this sense, the Company reaffirmed its
leadership in mobile portability during the year, as well as in
high quality broadband and video and content platforms.
- Operating Income before Depreciation and Amortization
amounted to P$77,084 million in FY19, 32.5% of Consolidated
Revenues. The decrease in real terms experienced by the Operating
income before Depreciation and Amortization reflects essentially
different adjustment dynamics over time between costs and price
increases, although the aforementioned interannual decrease has
been diminishing along the year.
- The Company registered an Ordinary income before income tax
of P$10,282 million in FY19, improving +147.8% vs. FY18, mainly
reflecting lower net losses from FX results measured in real terms.
Meanwhile, the Company registered a Net Loss of P$3,888 million
during FY19, essentially due to the recognition of the restatement
by inflation for the calculation of Income Tax.
- Investments (including rights of use assets) reached
P$70,865 million in FY19, equivalent to 29.9% of Consolidated
Revenues, which were aimed to expand and upgrade the networks, in
addition to the development of products, services and content in
order to respond to the needs of customers that nowadays demand
greater connectivity, as well as extending and strengthening the
Company's solid competitive position in terms of network
infrastructure.
- Net Financial Debt: P$124,825 million in FY19, increasing
23.6% in real terms when compared with
FY18.
*Unaudited non financial data
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IAS
29
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IAS
29
|
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|
(in
million P$ adjusted by inflation, except where
noted)**
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As of December,
31
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|
As of December,
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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237,024
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258,518
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(21,494)
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-8.3%
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Operating Income
before D&A
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|
77,084
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|
86,715
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(9,631)
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-11.1%
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Operating
Income
|
|
15,795
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|
32,701
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|
(16,906)
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-51.7%
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Net income before
income tax expense
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10,282
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|
4,150
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6,132
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147.8%
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Net (loss) Income
attributable to Controlling Company
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(4,396)
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8,145
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(12,541)
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-154.0%
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Shareholders' equity
attributable to Controlling Company
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305,078
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347,186
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(42,108)
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-12.1%
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Net Financial
Debt
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(124,825)
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(100,959)
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(23,866)
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23.6%
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Investments in
PP&E, intangible assets & rights of use assets *
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70,865
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65,425
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5,440
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8.3%
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Fixed lines in
service (in thousand lines) ***
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3,183
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3,544
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(361)
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-10.2%
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Mobile customers (in
thousand)
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21,410
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|
20,695
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|
715
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3.5%
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Personal (Argentina)
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19,084
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18,316
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768
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4.2%
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Núcleo (Paraguay) -including Wimax customers-
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2,326
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2,379
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(53)
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-2.2%
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Broadband accesses in
Argentina (in thousand)
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4,123
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4,138
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(15)
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-0.4%
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Pay TV Suscribers (in
thousand)
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3,517
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3,532
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(15)
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-0.4%
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Argentina
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3,294
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3,310
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(16)
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-0.5%
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Uruguay
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142
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144
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(2)
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(0)
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Paraguay
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81
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78
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3
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3.8%
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Average Billing per
user (ARBU) Fixed Telephony / voice (in P$ - Restated by
inflation)
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442.2
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416.6
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25.6
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6.1%
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Average Revenue per
user (ARPU) Mobile Services - Personal (in P$ - Restated by
inflation)
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317.1
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329.1
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(12.0)
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-3.7%
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Average Revenue per
user (ARPU) Broadband (in P$ - Restated by inflation)
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1,058.8
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1,172.2
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(113.4)
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-9.7%
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Average Revenue per
user (ARPU) Cable TV (in P$ - Restated by inflation)
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1,165.4
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1,314.2
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(148.8)
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-11.3%
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* (in constant
measuring unit.)
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**(Figures may not
sum up due to rounding)
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*** (does not
include IP telephony lines, which as of December 31, 2019 amounted to approximately 121
thousand)
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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 before income tax expense of P$10,282
million for the fiscal year ended December
31, 2019, improving +147.8% when compared with the previous
fiscal year. Meanwhile, the Company registered a Net Loss of
P$3,888 million during FY19, essentially due to the recognition of
the restatement by inflation for the calculation of Income Tax.
It is worth mentioning that the comparative figures for the
previous fiscal year have been restated so that the resulting
comparative information is presented in terms of the current
measurement unit as of December 31,
2019.
The following table shows the evolution of the consumer price
index (National CPI) for the last three fiscal year as of
December 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 December
31,
2019
|
Price Index
Variation
|
|
|
|
|
Annual
|
34.6%
|
24.7%
|
47.6%
|
53.8%
|
3 year
cumulative
|
102.2%
|
96.6%
|
147.8%
|
183.2%
|
3 month
cumulative
from
Sep-19
|
n/a
|
n/a
|
n/a
|
11.7%
|
During FY19, Consolidated Revenues amounted to P$237,024
million, of which Service Revenues totaled P$222,586 million. It is
worth to note that in 4Q19 Service Revenues have maintained
relatively stable in real terms when compared with 4Q18,
considering figures in constant currency as of December 31, 2019. Total Revenues contain an
adjustment of approximately P$42,843 million and P$121,358 million,
for the FY19 and FY18, respectively, related to the restatement in
terms of the measuring unit as of December
31, 2019.
Consolidated Operating Revenues
Mobile Services
As of December 31, 2019, mobile
clients amounted to 21.4 million. In FY19, mobile services revenues
represented P$82,195 million (-P$6,686 million vs. FY18). The
effect generated by the restatement in terms of the measuring unit
as of December 31, 2019, included in
mobile services revenues amounts to, approximately, P$14,757
million and P$41,971 million, for the FY19 and FY18, respectively.
This effect was partially offset by the increase in the prices of
mobile plans. The commercial strategy was focused on
achieving higher mobile portability through convergent offers and
promoting the consumption of mobile internet services through
Personal´s 4G network, the fastest network in the country according
to the results of international benchmarks.
Mobile Services in Argentina
As of December 31, 2019, Personal
reached 19.1 million subscribers in Argentina, increasing in more than 750
thousand clients when comparing with FY18. The postpaid clients
represented 40% of the subscriber base, growing in more than 550
thousand clients due to a positive net portability observed along
the year.
In FY19, mobile service revenues in Argentina amounted to P$71,063 million. Mobile
internet revenues reached 76% of service revenues of Personal in
Argentina (vs. 59% in FY18). The
average monthly revenue per user ('ARPU' – restated in constant
currency as of December 31, 2019) of
Personal in Argentina amounted to
P$317.1 during FY19. The effect generated by the restatement in
terms of the measuring unit as of December
31, 2019, included in the ARPU amounts to, approximately,
P$60.7 and P$154.9, for the FY19 and FY18,
respectively.
Commercial
Initiatives
During the quarter, a new offer was presented through Personal
and Flow brands: "Flow Pass". This value proposal allows Personal´s
clients to access their favorite Flow contents from their mobiles,
from any location and on-demand, without consuming their data
quota. Personal´s clients with a fixed plan and invoice of 5 and 8
GB can access Flow Pass with 10 Gb of data traffic without charge
in the first month, and they also may acquire passes for 1, 3 or 30
days (which are also available to be purchased by every client of
Personal).
In addition, and through Flow and Personal, the Company
sponsored the fifth edition of "Argentina
Game Show", the most important videogame and eSports
convention from the country. In the "Personal 5G Zone" space, the
visitors had the opportunity to test the 5G speed trial in the
first world event of augmented interactive 3D reality in real time.
On the other hand, Flow continues to develop its strategy of
becoming an integral entertainment platform through the
incorporation of content linked to gaming and music, as well as
live entertainment. In this sense, Flow and the Super TC2000
launched an eSports contest, called "Super TC2000 E-Racing Flow
Championship". In this way, the most technologic category from
Latin-America took an important
step in its incursion into simracing.
Personal in Paraguay
('Núcleo')
As of December 31, 2019, Núcleo's
subscriber base reached more than 2.3 million clients. Prepaid and
postpaid customers represented 83% and 17%, respectively.
Núcleo generated service revenues equivalent to P$11,132 million
during FY19 (+8.2% vs. FY18). Internet revenues represented 50% of
FY19 service revenues (vs. 45% in FY18).
Cable TV Services
Cable TV service revenues reached P$49,406 million in FY19
(-P$6,079 million vs. FY18). The effect generated by the
restatement in terms of the measuring unit as of December 31, 2019, included in Cable TV service
revenues amounts to, approximately, P$8,988 million and P$26,095
million, for the FY19 and FY18, respectively. Cable TV subscribers
totaled more than 3.5 million, increasing the number of subscribers
when compared with the previous quarter, mainly due to a good
reception from the clients of Flow's offer over FTTH and xDSL
networks. Moreover, the monthly Cable TV ARPU (restated in constant
currency as of December 31, 2019)
reached P$1,165.4 during FY19. The effect generated by the
restatement in terms of the measuring unit as of December 31, 2019, included in the ARPU amounts
to, approximately, P$205.3 and P$623.6, for the FY19 and FY18,
respectively. Additionally, the average monthly churn during FY19
was 1.3%.
With the aim to offer the best entertainment experience at the
moment of enjoying contents in an agile and simple way, an
integrated content search solution of Netflix was included in
Flow's decoder browser.
Likewise, Flow continues to promote national fiction through new
coproductions which were premiered during the last part of 2019,
like Atrapa a un Ladrón, which was presented together with
Viacom International Studios (VIS), Tu
Parte del Trato, which was carried out alongside with
TNT, ElTrece and produced by Polka, in addition to Titán and
Inconvivencia. All the aforementioned productions are
available to watch on demand and in exclusive on Flow.
Fixed Telephony and Data Services
During FY19, revenues generated by fixed telephony and data
reached P$37,562 million in FY19, +5.5% vs. FY18. 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 increase in fixed telephony service
revenues, monthly fee price increases came into effect for both
corporate and residential fixed line customers, and in 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
December 31, 2019, included in Fixed
telephony and data service revenues amounts to, approximately,
P$6,663 million and P$16,513 million, for the FY19 and FY18,
respectively.
As a result, the average monthly revenue billed per user ('ARBU'
- restated in constant currency as of December 31, 2019) of fixed telephony increased
6.1% in FY19 compared with FY18, reaching P$442.2.
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.
In one of its commercial initiatives during 4Q19, Telecom
established a strategic alliance with the football club
Estudiantes de La Plata to provide state-of-the-art
connectivity and communications solutions in its Estadio
Uno, the first 100% digital stadium in Argentina. This technology allows supporters
to live a unique experience by sharing on their devices the events
of each game or event that takes place there, through WiFi and 4G
connectivity. It is also available in the stadium's integrated
facilities (shops, restaurants, and its museum).
Additionally, and accompanying its clients in their digital
transformation process, FiberCorp-Telecom announced the
incorporation of Microsoft Azure to its Cloud solutions portfolio.
In this way, the Company strengthens its offer of products and
services based on cloud technology.
Internet Services
Internet services revenues totaled P$52,649 million during FY19,
-P$5,412 million vs. FY18. The effect generated by the restatement
in terms of the measuring unit as of December 31, 2019, included in Internet services
revenues amounts to, approximately, P$9,586 million and P$27,191
million, for the FY19 and FY18, respectively. As of December 31, 2019, total broadband accesses
reached more than 4.1 million, remaining steady year over year.
Additionally, broadband ARPU (restated in constant currency as of
December 31, 2019) amounted to
P$1,058.8 per month in FY19. The effect generated by the
restatement in terms of the measuring unit as of December 31, 2019, included in the ARPU amounts
to, approximately, P$188.6 and P$547.9, for the FY19 and FY18,
respectively. Moreover, the average monthly churn rate for
the period was 1.5%. It is worth to note that as of FY19 62% of the
total customer base had a broadband service of 20Mb or higher,
increasing from the participation registered in FY18 (38%),
highlighting the fact that Fibertel provides the fastest broadband
service with the better coverage in the country.
Revenues from equipment sales
In turn, equipment revenues amounted to P$14,438 million
(-P$5,306 million vs. FY18). This variation was mainly due to a
decrease in the quantities sold in a general context of lower
consumption of durable goods and difficulties in the access to
consumer financing, partially offset by the increase in prices of
handset sales.
Consolidated Operating Costs
Consolidated Operating Costs (including D&A and impairment
of fixed assets) totaled P$221,229 million in FY19, a decrease of
P$4,588 million, or 2.0% vs. FY18. These lower operating costs vs.
FY18 are mainly associated with a reduction in operating costs
excluding D&A and impairment of fixed assets, which decreased
6.9%, mainly due to lower cost of taxes and fees with the
regulatory authority (in line with a decrease in activity),
commissions and advertising, cost of handsets sold, interconnection
and transmission costs, programming costs and labor costs,
partially offset by higher depreciation, amortization and
impairment of fixed assets and bad debt expenses. On the other
hand, it is worth to highlight that, although the increase in
revenues did not evolve in accordance with the increase in costs,
essentially due to different adjustment dynamics over time,
revenues have accelerated growth during the second half of the
year, allowing to mitigate the increases in costs generated by a
deterioration of the macroeconomic environment during the same
period.
The cost breakdown is as follows:
- Employee benefit expenses and severance payments totaled
P$46,531 million (+1.7% vs. FY18). The increase was mainly due to
higher recurring salary costs (which includes the effect of salary
adjustments agreed by the Company with the different unions for the
employees under labor agreement and also for the employees outside
the labor agreement, together with the related social charges), and
in addition due to higher non-recurring salary costs. Total
employees totaled 23,728 in FY19. The effect generated by the
restatement in terms of the measuring unit as of December 31, 2019, included in labor costs and
severance payments amounts to, approximately, P$8,210 million and
P$21,370 million, for the FY19 and FY18, respectively.
- Interconnection and transmission costs (including TLRD,
Roaming, international settlement charges and lease of circuits)
totaled P$7,520 million, down by 11.5% vs. FY18, decreasing mainly
due to lower volumes of traffic, both nationally and
internationally, and lower purchases of compact interconnection
links offset by the FX increase related with services fixed in US$.
In addition, operative efficiencies were obtained during FY19 in
the management of international capacity as part of the Company's
transformation program, which allowed to generate savings
(synergies). The effect generated by the restatement in terms of
the measuring unit as of December 31,
2019, included in interconnection and transmission costs
amounts to, approximately, P$1,365 million and P$3,950 million, for
the FY19 and FY18, respectively.
- Fees for services, maintenance, materials and supplies
amounted to P$26,607 million (+4.5% vs. FY18). Fees for services
decreased P$840 million in FY19 as a result of synergies and
process simplification within the Company's transformation program,
partially offset with increases in the prices of services
contracted to third parties (mainly to call center, surveillance
and cleaning suppliers). On the other hand, maintenance and
material costs increased P$1,979 million compared to FY18, mainly
due to (i) increases in the prices of services contracted to
suppliers related to the maintenance of our networks and systems
and connection and disconnection of clients, among others, and (ii)
higher consumption of materials associated with the activity. The
effect generated by the restatement in terms of the measuring unit
as of December 31, 2019, included in
fees for services, maintenance, materials and supplies amounts to,
approximately, P$5,208 million and P$12,111 million, for the FY19
and FY18, respectively.
- Taxes and fees with regulatory authorities reached P$18,385
million (-12.2% vs. FY18). This decrease corresponds mainly to
lower sales in FY19 vs FY18, partially offset by the impact of the
application of ENACOM's resolution 840/18 which introduced changes
in the determination of the radioelectric spectrum fee. The effect
generated by the restatement in terms of the measuring unit as of
December 31, 2019, included in taxes
and fees with regulatory authorities amounts to, approximately,
P$3,354 million and P$9,809 million, for the FY19 and FY18,
respectively.
- Commissions and advertising (Commissions paid to agents,
collection fees and other commissions) totaled P$14,612 million
(-15.3% vs. FY18). This decline is due to lower charges for agent
commissions as a consequence of the sales channel reorganization
and a lower quantity of handsets sold, and due to a slight decrease
in advertising related to the synergies achieved after the merger
of 2018 that allowed to reduce costs even with a 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 December 31, 2019,
included in commissions and advertising amounts to, approximately,
P$2,587 million and P$8,022 million, for the FY19 and FY18,
respectively.
- Cost of handsets sold amounted to P$10,749 million
(-27.7% vs. FY18). Of this amount, the majority corresponds to cost
of handsets in Argentina, which
decreased compared with FY18, mainly due to lower quantities sold
which were down approximately by 34%, mainly affected by the
decrease in consumption of durable goods registered at an
aggregated level in the economy. These lower quantities sold were
partially offset by an increase in purchase price of the handsets
compared with FY18. Moreover, it's worth to remark that results of
handset sales have a positive margin contribution. The effect
generated by the restatement in terms of the measuring unit as of
December 31, 2019, included in cost
of handsets sold amounts to, approximately, P$3,012 million and
P$7,613 million, for the FY19 and FY18, respectively.
- Programming and content costs totaled P$18,031 million (-3.6%
vs. FY18). This decrease is explained mainly by operative
efficiencies obtained in FY19 vs. FY18, which were partially offset
by price increases in almost all broadcasting signals, including
football signals corresponding to the broadcast of live matches of
the first division of the Argentine Soccer Association. The effect
generated by the restatement in terms of the measuring unit as of
December 31, 2019, included in
programming and content costs amounts to, approximately, P$3,272
million and P$8,755 million, for the FY19 and FY18,
respectively.
- Other Costs totaled P$17,505 million (-13.8% vs. FY18),
of which bad debt expenses reached P$6,331 million (+16.7% vs.
FY18), increasing mainly due to the higher delinquency levels in
comparison with those registered in of 2018. Despite the fact that
the bad debt ratio reaches 2.7% as of FY19, during the last quarter
has shown signs of improvement reaching lower levels, as a result
of several actions taken during 2019, such as new implementations
in the delinquency management for the fixed and mobile business,
re-categorization of credit profiles, new internal scoring schemes
and blocking of those handsets that were financed and whose debt
was past due. Bad debt expenses increase was more than 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$11,174 million (-24.9% vs. FY18), decreasing because of lower
operative leasing operations due to the application of IFRS 16,
partially offset by greater costs related with energy. The effect
generated by restatement in terms of the measuring unit as of
December 31, 2019, included in other
costs amounts to, approximately, P$3,287 million and P$9,387
million, for the FY19 and FY18, respectively.
- Depreciation, amortization and impairment of fixed assets
amounted P$61,289 million (+13.5% vs. FY18). The increase was due
to the impact of the amortization of assets incorporated after
December 31, 2018, as a consequence
of the Company's Capex Plan and the effect of the application since
January 1, 2019, of IFRS 16, being
the charge during FY19 P$3,344 million, partially offset by assets
that have stopped amortizing in 2019. Additionally, a spectrum
impairment was registered for P$2,143 million during FY19, related
with its incorporation into the Company as a result of the merger
by absorption of Telecom and Cablevisión, and of other fixed assets
for P$421 million. An impairment of the Arnet brand was registered
during FY18 for P$2,498 million, as a result of the decision of the
Company to discontinue its use and to incorporate all broadband
customers under the Fibertel brand, and of other fixed assets for
P$718 million. On the other hand, the effect generated by the
restatement in terms of the measuring unit as of December 31, 2019, included in depreciation,
amortization and impairment of fixed assets amounts to,
approximately, P$32,396 million and P$31,845 million, for the FY19
and FY18, respectively.
Finally, as can be highlighted from the evolution of costs in
real terms, it is noticeable that certain components evolved
positively despite a challenging economic context, indicating in
most of the cases improvements or synergies.
Net Financial Results
Net Financial Results (including Financial Expenses on Debt and
Other Financial Results, net) totaled a loss of P$5,326 million in
FY19, compared with a loss of P$28,914 million in FY18. This
variation was mostly due to lower FX losses (including results of
NDF) measured in real terms during FY19 for P$1,387 million (due to
a depreciation of the Argentine peso against the US dollar of 59%
vs. an inflation of 54% during the same period), versus FX losses
measured in real terms in FY18 for P$43,410 million (due to a
depreciation of the Argentine peso against the US dollar of 102%
vs. an inflation of 48% during the same period). These results were
partially offset by a lower RECPAM (inflation adjustment
gain/loss), which totaled P$7,599 million (down P$13,020 million
compared with FY18); and also, by higher net interest losses which
totaled P$7,903 million (a decrease of P$4,128 million vs FY18). In
addition, losses due to operations with securities and bonds were
registered, generating losses of investments for P$2,606 million
during FY19.
Consolidated Net Financial Debt
As of December 31, 2019, net
financial debt position (cash, cash equivalents plus financial
investments and financial NDF minus loans) totaled P$124,825
million, increasing P$23,866 million or 23.6% when compared to the
consolidated net financial debt position as of December 31, 2018, which totaled P$100,959
million (restated in terms of the measuring unit as of December 31, 2019).
Investments in PP&E, intangible assets and rights of use
assets
During FY19, the Company invested P$70,865 million, increasing
approximately 8.3% as of FY18. 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 and content
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 increasing 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, investments reached 29.9%
of consolidated revenues in FY19 (vs. 25.3% in FY18).
Inscribed within the Company's process of constant evolution
towards innovation and exploration of the main technological trends
worldwide, and with a focus on enabling new businesses that are
emerging in the industry, during November Telecom carried out the
eighth edition of the New Technologies Day, an internal event where
the Company shared with its employees the evolution of home
technology and different IOT solutions. With a collaborative
learning format, the 2019 edition included dynamic talks on
strategy and technological implementation, as well as a demo space.
More than 600 people that participated directly in the event and
another 2,000 that participated remotely via streaming, were able
to appreciate various concrete applications of the technological
evolution of the industry, the convergence and the new features
that are being explored within Telecom, which is on its way to
virtualization and complete digitalization.
Relevant Matters
Telecom Argentina's 25th Anniversary of Listing on
the New York Stock Exchange (NYSE)
On November 22, 2019, Telecom
Argentina executives led by Carlos
Moltini and Roberto Nóbile, participated of the "Closing
Bell" ceremony in the largest financial and stock exchange center
in the world.
The Company is listed on the NYSE since its initial public offer
on December 9, 1994. Today is one of
the 20 Argentine companies listed in the NYSE and among the top 5
to achieve 25 uninterrupted years of participation in that
market.
Partial prepayment of the syndicated loan agreement entered into
in October 2018 for up to
US$500 million.
On December 9, 2019, the Company
proceeded to partially prepay under the loan agreement entered into
on October 8, 2018 a principal amount
of US$50,000,000 plus the
corresponding accrued and unpaid interests, additional amounts and
related expenses.
Sustainability: new corporate volunteering program and closing
of the digit@lers program
Telecom presented its proposal for corporate volunteering under
the name "Conectamundos" and with the slogan "más cerca
llegamos más lejos" (being closer we go further). With the
objective of opening spaces of joint creation for its employees,
the Company contributes through this program to social
transformation and local development in the locations where it
operates.
This initiative is characterized by generating solidarity
meeting spaces where technology is the engine for social
transformation, in line with the spirit of the Company's
sustainability programs. Throughout its development, it will have
different intervention modalities, stories such as professional
volunteering, teamwork, campaigns, volunteer days, collections and
donations.
As the first action of this new program, the #Manotón
proposal included three days of activities in the cities of Salta,
Córdoba and Buenos Aires.
Throughout this edition, more than 250 collaborators handled 50
3D-printed mechanical hand and arm prostheses, along with
Gino Tubaro and his Atomic Lab
team.
Likewise, during the month of November, Telecom closed its
training cycles within its digital@lers program, in the cities of
Salta, Jujuy and Córdoba.
Among other programs of social investment, through the
digit@lers program Telecom seeks to connect young people with their
digital vocation. This proposal begun in 2017 and invites to
participate and learn about technology, through free programming
courses. In addition, as a complement to training in technical
knowledge, this program offers training in other skills that are
essential to advance the job search within the IT employment
market. Thus, Telecom promotes the digital training of young people
and connects them with careers for the future.
Through Digit@lers, in 2019 Telecom also trained young people in
Tigre, San Fernando, Malvinas Argentinas, Santa Fe, Tucumán and Mar del Plata, in addition to Lanús and Ezeiza,
where additionally the "digit@lers girls" program trains girls and
teenagers in initial notions of programming in order to promote
higher participation of women into the world of technology.
Other Relevant Matters
Local issuance of Class 3 and Class 4 Notes for P$3.197 million
and P$1,200 million, respectively.
Under its Global Program of Issuance of Notes for up to
US$3,000 million, on January 29, 2020 Telecom Argentina concluded the
placement of two Classes of Notes with the following
characteristics:
Class 3
Issue date: January 31, 2020.
Amount Issued: P$3,196.5 million.
Expiration Date: January 31,
2021.
Amortization: the principal will be cancelled on 1 (one) payment
for an amount equal to 100% of the total principal, payable on the
Expiration Date.
Interest Rate: accrues quarterly interest from the Issue Date
until maturity at a variable rate plus margin of 4.75%.
Class 4
Issue date: January 31, 2020.
Amount Issued: P$1,200.2 million.
Expiration Date: July 31,
2021.
Amortization: the principal will be cancelled by 1 (one) payment
for an amount equal to 100% of the total principal, payable on the
Expiration Date.
Interest Rate: accrues quarterly interest from the Issue Date
until maturity at a variable rate plus margin of 5.25%.
Telecom Argentina obtained the A1 + (arg) and AAA (arg) (local
ratings) ratings granted by FIX SCR S.A. (Fitch Ratings) for Class
3 and Class 4 Notes, respectively, thanks to the Company's credit
quality and financial strength.
Finally, the total amount of offers received in this issuance
exceeded P$5,115 million, showing a clear interest and exceeding
the maximum expandable amount of P$5,000 million, indicating a
special recognition of the credit quality of Telecom Argentina.
New disbursements in connection with the financing agreement
entered into with IDB Invest on May 29,
2019.
On February 12, 2020, and in
connection with the financing proposal submitted on May 29, 2019 to the Inter-American Investment
Corporation, acting on its own behalf and as agent of the
Inter-American Development Bank ("IDB Invest"), as accepted by IDB
Invest on such date, for a total amount of up to US$300,000,000 (U.S.
dollars three hundred million) in one or more tranches (as
amended and/or modified, the "Financing"), the Company has received
from IDB Invest two new disbursements under the Financing for (i)
an amount of US$50,000,000
(U.S. dollars fifty million), whose
last amortization date is on November 15,
2023; and (ii) an amount of US$75.000.000 (U.S.
dollars seventy five million), whose last amortization date
is on November 15, 2022.
The Financing's proceeds will be used by the Company to finance
its capital investments, including the deployment of the 4G network
and the expansion of the Company's broadband services.
New disbursement in connection with the export credit facility
with Finnvera
On March 5, 2020 Telecom received
a new disbursement for a total of US$ 10,5
million in connection with the export credit facility with
Finnvera. This credit line accrues interest at a LIBO rate plus
1.04 percentage points payable in 13 semi-annual consecutive
installments starting from November
2020 with a final maturity in November 2026.
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 mobile, broadband and satellite TV 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 December 31, 2019, Telecom
Argentina has 2,153,688,011 shares issued and 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.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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SOURCE Telecom Argentina S.A.