Q2 2026 Telecom Argentina SA Earnings Call Transcript
Key Points
- Consolidated EBITDA margin expanded to 35.8% in H1 2026, up 580 basis points year-over-year, driven by efficiency gains and TMA integration.
- Telecom Argentina SA (TEO) achieved record EBITDA margins in Q2 2026, with telecom standalone at 40.5% and TMA at nearly 30%, showing strong operational execution.
- Service revenues grew 16% year-over-year in constant pesos, with telecom standalone posting 2% real growth and mobile, broadband, and pay TV services growing at a weighted average of over 5%.
- Net debt to EBITDA leverage improved to 1.36 times, down from 1.74 times in fiscal year 2025, reflecting stronger cash generation and a solid balance sheet.
- Free cash flow before dividends and interest payments increased by over $200 million year-over-year to approximately $400 million in H1 2026.
- TMA standalone EBITDA margin improved significantly to 29.3% in H1 2026 from 22.9% in H1 2025, indicating successful integration and efficiency initiatives.
- Regional operations in Paraguay posted strong results, with revenue growing almost 30% and EBITDA increasing 37.5% year-over-year, reaching an EBITDA margin above 50%.
- Prepaid mobile accesses declined 10.1% year-over-year due to shorter reactivity periods for deactivating dormant lines, which could impact future subscriber growth.
- Consolidated CapEx intensity remains high at 18.6% of revenues, reflecting continued heavy investment in FTTH and 5G, which may pressure near-term cash flows.
- TMA service revenues remained broadly stable in real terms year-over-year, indicating limited top-line growth in the acquired business.
- The company's net income was significantly impacted by exchange rate fluctuations, with gains in H1 2026 driven by peso appreciation, which may not be sustainable.
- Consolidated mobile subscriber base showed a slight decrease overall, driven by a 5.8% decline in prepaid segment, despite postpaid growth.
- The integration of TMA continues to present challenges, as TMA's EBITDA margin (29.3%) remains well below telecom's standalone margin (39.7%), indicating potential for further convergence but also ongoing operational gaps.
Good morning. On behalf of Telecom Argentina, I would like to thank everybody for participating of this conference call.
The participants of today's conference call are Roberto Nóbile, Chief Executive Officer; Manuel GarcÃa Diez, who recently joined Telecom Argentina's Chief Financial Officer and is participating in his first earnings conference call; Federico Pra, Financial Director; and Luis Fernando Rial, Head of Investor Relations.
The purpose of this call is to share with you the results of the first half and second quarter ended on June 30 of 2026.
If you have not received our press release or presentation, you can call our Investor Relations office to request the documents or download them from the Investor Relations section of our website located at inversores.telecom.com.ar.
I would like to go over some safe harbor information and other details of the call.
We would like to clarify that during the conference call and Q&A session, we could mention certain forward-looking
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