Q1 2026 Telecom Argentina SA Earnings Call Transcript
Key Points
- Telecom Argentina SA (TEO) reported consolidated revenues of over $1.7 billion, marking a 34% year-over-year increase in dollars, driven by the full quarter impact of TMA's results.
- The company's EBITDA margin improved to 34.8% in Q1 2026, with Telecom standalone reaching over 38%, the highest since the merger with Cablevision in 2018.
- Investments in network expansion, particularly in fiber-to-the-home and 5G infrastructure, were prioritized, with CapEx amounting to approximately $0.3 billion.
- Telecom Argentina SA (TEO) achieved a significant improvement in its net debt to EBITDA leverage ratio, reducing it to 1.4 times from 1.7 times in the previous year.
- The company reported strong growth in its regional operations, with Paraguay's revenue growing almost 25% year-over-year in US dollars and an EBITDA margin of over 50%.
- The prepaid mobile segment saw a 12.2% reduction year-over-year, attributed to updated disconnection criteria for dormant prepaid lines.
- Postpaid mobile accesses decreased by 3.7% year-over-year, reaching almost 8 million accesses.
- TMA's pay TV subscriber base decreased by 1.8% year-over-year, with a net loss of approximately 7,000 customers.
- Operating costs grew by 28% year-over-year, which, although lower than revenue growth, still represents a significant increase.
- The company faced higher severance charges, impacting the EBITDA margin, which would have been higher without these charges.
Good morning. On behalf Telico Argentina, I would like to thank everybody for participating of this conference call. The participants of today's conference call are Roberto Novile, Chief Executive Officer, Federico Pra, Interim Chief Financial Officer, and myself Luis Rio Lubago, Head of Investor Relations. The purpose of this call is to share with you the results of the first order ended on March 31 of 2026.
If you have not received a 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 inversoles.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 statements about telecom's future performance, plans, strategies, and objectives. Such statements are subject to uncertainties that could cause telecom's actual results and operations to
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