BUENOS AIRES, Argentina,
March 9, 2021 /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 FY20 include the effects of the adoption of
inflationary accounting in accordance with IAS
29. Finally, comments related to variations of results
of FY20 and vs. FY19 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 by inflation corresponding to December 2019 contain the effect of year over
year inflation as of December 2020,
which amounted to 36.1%.
- Consolidated Revenues of Telecom Argentina amounted to
P$301,596 million in FY20, from which Service Revenues totaled
P$283,994 million (-6.3% in real terms vs. FY19). Services Revenues
in 4Q20 totaled P$64,631 million (-14.3% vs. 4Q19). As it was
established in the Agreement with the National Communications
Entity ("ENACOM"), the prices of mobile and fixed telephony,
Internet and pay TV did not increase from May 1 to August 31, 2020. In addition, according
to the provisions set forth by Decree 690/2020, price increases or
modifications established or announced as from July 31, 2020 were suspended until December 31, 2020.
- Mobile clients in Argentina
have reached 18.4 million in FY20 (-499 thousand or -2.6% vs.
FY19). In a context of increased demand of fixed connectivity,
cable TV subscribers totaled approximately 3.5 million (+26
thousand or +0.7% vs. FY19), while broadband accesses amounted to
almost 4.1 million (+23 thousand or +0.6% vs. FY19).
- Operating Income before Depreciation and Amortization
amounted to P$102,888 million in FY20 (-2.0% vs. FY19). Operating
Income totaled P$ 20,294 million (-5.6% vs. FY19).
- The Company registered a Net Loss of P$5,104 million in FY20
(-3.6% vs. FY19). This lower Net Loss vs. FY19 was mainly due to a
reduction in income tax charges, partially offset by higher losses
attributable to net financial results.
- Investments (including rights of use assets) reached
P$66,750 million in FY20, equivalent to 22.1% of Consolidated
Revenues.
- Net Financial Debt amounted to P$175,004 million in FY20,
(+3.0% in real terms vs. FY19).
*Unaudited non financial data
|
|
IAS
29
|
|
IAS
29
|
|
|
|
|
(in
million P$ adjusted by inflation, except where
noted)**
|
|
As of
December 31,
|
|
As of
December 31,
|
|
Δ
$
|
|
Δ
%
|
|
2020
|
|
2019
|
|
|
|
|
Consolidated
Revenues
|
|
301,596
|
|
322,686
|
|
(21,090)
|
|
-6.5%
|
Operating Income
before D&A
|
|
102,888
|
|
104,942
|
|
(2,054)
|
|
-2.0%
|
Operating
Income
|
|
20,294
|
|
21,503
|
|
(1,209)
|
|
-5.6%
|
Net income before
income tax expense
|
|
3,147
|
|
13,997
|
|
(10,850)
|
|
-77.5%
|
Net Loss attributable
to Controlling Company
|
|
(5,715)
|
|
(5,985)
|
|
270
|
|
-4.5%
|
Shareholders' equity
attributable to Controlling Company
|
|
382,456
|
|
415,335
|
|
(32,879)
|
|
-7.9%
|
Net Financial
Debt
|
|
(175,004)
|
|
(169,936)
|
|
(5,068)
|
|
3.0%
|
Investments in
PP&E, intangible assets & rights of use assets *
|
|
66,750
|
|
96,476
|
|
(29,726)
|
|
-30.8%
|
|
|
|
|
|
|
|
|
|
Fixed lines in
service (in thousand lines) ***
|
|
2,821
|
|
3,183
|
|
(362)
|
|
-11.4%
|
Mobile customers (in
thousand)
|
|
20,649
|
|
21,258
|
|
(609)
|
|
-2.9%
|
Personal (Argentina)
|
|
18,433
|
|
18,932
|
|
(499)
|
|
-2.6%
|
Núcleo (Paraguay) -including Wimax customers-
|
|
2,216
|
|
2,326
|
|
(110)
|
|
-4.7%
|
Broadband accesses in
Argentina (in thousand)
|
|
4,146
|
|
4,123
|
|
23
|
|
0.6%
|
Pay TV Subscribers
(in thousand)
|
|
3,543
|
|
3,517
|
|
26
|
|
0.7%
|
|
|
|
|
|
|
|
|
|
Average Billing per
user (ARBU) Fixed Telephony / voice (in P$ - Restated by
inflation)
|
|
574.3
|
|
602.0
|
|
(27.7)
|
|
-4.6%
|
Average Revenue per
user (ARPU) Mobile Services - Personal (in P$ - Restated by
inflation)
|
|
436.2
|
|
431.7
|
|
4.5
|
|
1.0%
|
Average Revenue per
user (ARPU) Broadband (in P$ - Restated by inflation)
|
|
1,271.0
|
|
1,441.5
|
|
(170.5)
|
|
-11.8%
|
Average Revenue per
user (ARPU) Cable TV (in P$ - Restated by inflation)
|
|
1,382.2
|
|
1,586.6
|
|
(204.4)
|
|
-12.9%
|
* (in constant
measuring unit.)
|
**(Figures may not
sum up due to rounding)
|
*** (does not
include IP telephony lines, which as of December 31, 2020 amounted
to approximately 347 thousand)
|
Telecom Argentina S.A. ('Telecom Argentina') - (NYSE: TEO; BASE:
TECO2), announced today a Net Loss of P$5,104 million for the
period ended December 31, 2020 (-3.6%
vs. FY19). The Net Loss attributable to the Controlling Company was
P$5,715 million.
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,
2020.
The following table shows the evolution of the consumer price
index (National CPI) according to the official statistics (INDEC),
which were used to restate the figures in constant currency:
|
As of
December 31,
2017
|
As of
December 31,
2018
|
As of
December 31,
2019
|
As of
December 31,
2020
|
Price Index
Variation
|
|
|
|
|
Annual
|
24.7%
|
47.6%
|
53.8%
|
36.1%
|
3 year
cumulative
|
96.6%
|
147.8%
|
183.2%
|
194.7%
|
3 month
cumulative since Sep-19
|
n/a
|
n/a
|
n/a
|
11.3%
|
During FY20, Consolidated Revenues amounted to P$301,596
million, of which Service Revenues totaled P$283,994 million.
Continuity of operations in the context of COVID-19
During 2020, as a result of the health situation generated by
the pandemic, and as a relevant actor in the ICT ecosystem, Telecom
made it possible for a large part of the population to continue
working, studying, learning and entertaining themselves, thanks to
the continuity of its services.
For this, the Company reinforced its network and systems
infrastructure to face the unusual increase in traffic, and secured
its service platform ; took its operation to virtuality,
prioritizing digital and telephone channels for contact with its
customers, and home working for 70% of its staff, thus preserving
the health and well-being of its entire value chain. It also
implemented facilities and benefits so that customers could stay
connected and spend days in isolation while continuing to carry out
their daily activities ; and developed various initiatives of
social value related to health, education, social assistance and
prevention, within the framework of its public-private cooperation
strategy.
Consolidated Operating Revenues
Mobile Services
As of December 31, 2020, mobile
clients in Argentina and
Paraguay amounted to 20.6 million.
In FY20, mobile services revenues represented P$113,348 million
(+P$1,447 million or 1.3% vs. FY19).
Mobile Services in Argentina
As of December 31, 2020, Personal
reached more than 18.4 million subscribers in Argentina (-499 thousand or -2.6% vs. FY19).
Postpaid clients represented 43% of the subscriber base (+315
thousand or 4.1% vs FY19).
In FY20, mobile service revenues amounted to P$100,447 million
(+1.3% vs FY19). Mobile internet revenues reached 75% of mobile
service revenues (vs. 76% in FY19). The average monthly revenue per
user ('ARPU' – restated in constant currency as of December 31, 2020) amounted to P$436.2 during
FY20 (+1.0% vs. FY19). The effect generated by the restatement in
terms of the measuring unit as of December
31, 2020, included in the ARPU amounts to P$63.3 and
P$175.3, for the FY20 and FY19, respectively. Mobile churn
was 2.2% (vs. 2.9% in FY19).
Commercial Initiatives
During 2020, Telecom continued to incorporate new exclusive
offers, including some that add extra gigabytes for exclusive
consumption on social media or video platforms.
Additionally, the quantity and variety of mobile offers
available for customers were improved, adding more data, different
terms and prices, while also the benefits included in mobile plans
were improved to increase the performance and usage of the
services.
Furthermore, the Company launched "Mi Negocio Personal",
an e-commerce platform that allows micro-entrepreneurs to digitize
the commercial experience of their business and to perform sales in
a personalized way through the social networks of their choice and
with integrated means of payment.
Personal in Paraguay
('Núcleo')
As of December 31, 2020, Núcleo's
subscriber base reached 2.2 million clients. Prepaid and postpaid
customers represented 83% and 17%, respectively.
Núcleo generated service revenues equivalent to P$12,901 million
during FY20 (-14.9% vs. FY19), due to the reduction of the number
of clients and the decrease in the ARPU, which was partially offset
by the appreciation of the guaraní in relation to the argentine
peso.
Cable TV Services
Cable TV service revenues reached P$59,582 million in FY20
(-P$7,680 million vs. FY19). As from April to October 2020 revenues related to local soccer
league programming have not been generated, because the activity
was suspended due to the COVID-19 pandemic. Cable TV subscribers
totaled more than 3.5 million (+26 thousand or +0.7% vs. FY19).
Moreover, the monthly Cable TV ARPU (restated in constant currency
as of December 31, 2020) reached
P$1,382.2 during FY20. The effect generated by the restatement in
terms of the measuring unit as of December
31, 2020, included in the ARPU amounts to P$206.5 and
P$626.5, for the FY20 and FY19, respectively. Additionally, the
average monthly churn during FY20 was 1.0% (vs. 1.3% in FY19).
To accompany the entertainment needs of customers during the
quarantine, in addition to adding more educational and recreational
content for the whole family, enriching the extensive catalog
already available, the company provided free access to Flow App for
all Cablevisión customers, who they were able to download the app
on any device.
The company launched Flow Now, aiming to diversify the
offer of its entertainment platform and to reach new customers.
Flow Now allows Fibertel customers to enjoy Flow without the
need of a deco box at home. This launch was accompanied by a
special offer for new clients who request both services, while an
exclusive offer was dedicated to those who were already clients of
Fibertel.
Moreover, during the year, Flow integrated Disney+ into its
entertainment platform. The integration was accompanied by a
special and differential offer of up to 3 months free of charge for
its clients, and the possibility of payment of both services in the
same invoice.
Fixed Telephony and Data Services
Revenues generated by fixed telephony and data reached P$45,597
million in FY20 (-P$5,540 million vs. FY19).
As a result, the average monthly revenue billed per user ('ARBU'
- restated in constant currency as of December 31, 2020) of fixed telephony reached
P$574.3. The effect generated by the restatement in terms of the
measuring unit as of December 31,
2020, included in the ARBU amounts to P$86.1 and P$244.4,
for the FY20 and FY19, respectively.
Telecom | FiberCorp, continued to develop different initiatives
for the corporate segment by providing solutions to companies so
that they can continue with their activities.
Moreover, Telecom | FiberCorp presented its renewed portfolio of
Security Solutions, which guarantees a controlled and safe
environment for companies and the public sector.
In this sense, an alliance with Google Cloud was consolidated,
with the aim of developing new innovative solutions adapted to the
needs of local companies, and thus contribute to the development of
the digital ecosystem in Argentina. Additionally, a commercial
agreement was reached with IBM to co-develop more cutting-edge
solutions based on advanced technologies such as Cloud, Security,
IoT and Artificial Intelligence, among others.
Internet Services
Internet services revenues totaled P$64,233 million during FY20
(-P$7,444 million vs. FY19). As of December
31, 2020, total broadband accesses reached 4.1 million (+23
thousand or +0.6% vs. FY19).
Additionally, broadband ARPU (restated in constant currency as
of December 31, 2020) amounted to
P$1,271.0 per month in FY20. The effect generated by the
restatement in terms of the measuring unit as of December 31, 2020, included in the ARPU amounts
to, approximately, P$190.8 and P$571.3, for the FY20 and FY19,
respectively.
Moreover, the average monthly churn rate for the period
was 1.3% vs. 1.5% in the FY19. It is worth noting that as of FY20,
59% of the total customer base had a broadband service of 50Mb
or higher (increasing from 41% as of FY19).
Regarding connectivity offers, in November the Company made
available a new speed of 1,000 megabytes over HFC for the entire
territory of the AMBA. This offer was accompanied by a special
price for the first 3 months of hiring.
Revenues from equipment sales
Equipment revenues amounted to P$17,602 million (-P$2,064
million vs. FY19). This reduction was mainly due to a decrease in
the quantities sold, partially offset by the increase in the prices
of handsets.
Consolidated Operating Costs
Consolidated Operating Costs (including D&A and impairment
of fixed assets) totaled P$281,302 million in FY20 (-P$19,881
million or -6.6% vs. FY19). Excluding D&A and impairment of
fixed assets, operating costs showed a reduction of 8.7%, which
contributed to generate an increase of the Operating Income before
D&A margin (34.1% in FY20 vs. 32.5% in FY19).
The cost breakdown is as follows:
- Employee benefit expenses and severance payments totaled
P$58,476 million (-7.7% vs. FY19). Total employees amounted to
23,254 in FY20.
- Interconnection and transmission costs (including TLRD,
Roaming, international settlement charges and lease of circuits)
totaled P$11,254 million (+9.9% vs. FY19). This variation was
mainly due to higher FX affecting dollar denominated services and
higher charges of TLRD.
- Fees for services, maintenance, materials and supplies
amounted to P$33,012 million (-8.9% vs. FY19). Fees for
services decreased P$853 million during FY20. On the other hand,
maintenance and material costs decreased P$2.358 million compared
to FY19, mainly due to an optimization in the consumption of
materials associated with the activity, partially offset by higher
costs related to the maintenance of our networks, systems,
connection, and disconnection of clients.
- Taxes and fees with regulatory authorities amounted to
P$23,020 million (-8.0% vs. FY19). This decrease is mainly due to
lower sales in FY20 vs FY19.
- Commissions and advertising (Commissions paid to agents,
collection fees and other commissions) totaled P17,252 million (-13.3% vs. FY19). This decline
is due to the sales channel reorganization and to a decrease in
advertising related to lower handset sales. All digital contact
channels were strengthened, encouraging clients to make all their
commercial requests by these means. The presence in the media was
maintained promoting new services and solutions such as the
Convergent Offer and Mi Negocio Personal, as well as
promoting the product Flow.
- Cost of handsets sold amounted to P$11,132 million
(-23.9% vs. FY19). This decrease is a consequence of lower handset
sales in Argentina, which was
partially offset by an increase in their purchase price.
- Programming and content costs totaled P$20,169 million (-17.8%
vs. FY19). This reduction is mainly explained by operative
efficiencies and withdrawal of signals (mainly related to sports),
which were partially offset by price increases in almost all of the
other broadcasting signals. Moreover, as from April until
October 2020 there were no costs
related to local soccer league programming, because the activity
was suspended as a consequence of the pandemic.
- Other Costs totaled P$24,393 million (+2.4% vs. FY19),
from which bad debt expenses reached P$10,805 million (+25.4% vs.
FY19). Bad debt ratio was 3.6% as of December 31, 2020 (vs. 2.7% in FY19).
Additionally, other operating costs (including charges for lawsuits
and other contingencies, energy and other public services,
insurances, rents, internet capacity, among others), which totaled
P$13,588 million (-10.7% vs. FY19), decreased mainly due to lower
charges of rents and internet capacity.
- Depreciation, amortization and impairment of fixed assets
amounted P$82,594 million (-1.0% vs. FY19). The decrease is mainly
due to the depreciation of spectrum included in FY19 for P$2,917
million, that was incorporated as a result of the merger of Telecom
and Cablevisión, partially offset by the impact of the amortization
of assets incorporated after December 31,
2019.
Net Financial Results
Net Financial Results (including Financial Expenses on Debt and
Other Financial Results, net) generated a higher loss of P$17,643
million in FY20 (vs. a loss of P$7,251 million in FY19) which was
mainly due to:
in million of
P$
|
FY19
|
FY20
|
$
Var
|
FX results
|
$ 1,888
|
-$ 1,949
|
-$ 3,837
|
Net
Interests
|
-$ 13,175
|
-$ 15,723
|
-$ 2,548
|
Results of
investments
|
-$ 3,547
|
$ 935
|
$ 4,482
|
RECPAM
|
$ 10,345
|
$ 5,598
|
-$ 4,747
|
Financial debt
renegotiation results
|
-
|
-$ 3,444
|
-$ 3,444
|
Others
|
-$ 2,762
|
-$ 3,060
|
-$ 298
|
Total
|
-$
7,251
|
-$
17,643
|
-$
10,392
|
Consolidated Net Financial Debt
As of December 31, 2020, our net
financial debt position (cash, cash equivalents plus financial
investments and financial NDF minus loans) totaled P$175,004
million, increasing by P$5,068 million or +3.0% when compared to
the consolidated net financial debt position as of December 31, 2019, which totaled P$169,936
million (restated in terms of the measuring unit as of December 31, 2020).
Investments in PP&E, intangible assets and rights of use
assets
During the FY20, the Company invested P$66,750 million (-30.8%
vs. FY19). These investments represented 22.1% of consolidated
revenues in FY20, and were focused on:
- Projects associated with the expansion of Cable TV and Internet
services to improve the transmission and access speed offered to
customers.
- Deployment of 4G coverage and capacity to support the growth of
our mobile Internet service.
- Extension of our transmission networks in order to unify the
different access technologies, reconverting the copper fixed
networks into fiber or hybrid fiber-coaxial networks.
- Reconversion of systems and advances towards the complete
digitization of our operations, aiming to develop an ecosystem of
platforms that leverage on connectivity which allow to manage and
evolve products and services, with a focus on the digital and
convergent experience of our clients.
Thanks to the investments in infrastructure done in recent
years, Telecom currently counts with the equipment and systems that
allow its network to perform efficiently, supporting the increase
of up to 50% in home internet data traffic, 70% in mobile voice
services and 30% in mobile data, plus a 75% growth in
upstream. The renewal of the Company's core platforms (both
oriented to customers and the back office) was another of the key
factors that allowed to adapt quickly and continue operating
normally during the lockdown period.
Relevant Matters
Distribution of dividends in kind
The General Extraordinary Shareholders' Meeting of Telecom
Argentina held on November 13, 2020
resolved to distribute dividends in kind as follows: i) amortizing
Global Bonds of the Argentine Republic in US Dollars maturing on
July 9, 2030 (the "2030 Global
Bonds"), for a nominal value of US$157,642,897, and ii) amortizing Global Bonds
of the Argentine Republic in US Dollars maturing on July 9, 2035 (the "2035 Global Bonds") for a
nominal value of US$271,896,177.
Consequently, the valuation in Argentine pesos of the mentioned
dividends in kind was established in P$24,723,374,678 (P$25,713
million in constant currency as of December
31, 2020), fully withdrawing the "Voluntary Reserve for
Future Cash Dividends" for an amount of P$6,600 million in constant
currency as of December 31, 2020, and
partially withdrawing the "Voluntary Reserve to maintain the
Company's level of investments in capital assets and the current
level of solvency" for an amount of P$19,113 million in constant
currency as of December 31, 2020.
Issuance of Class 6 and Class 7 Notes
Under its Global Program of Issuance of Notes for up to
US$3,000 million, on December 4, 2020 Telecom Argentina concluded the
placement of two Classes of Notes with the following
characteristics:
Class 6
Issuance date: December 10,
2020.
Amount Issued: P$1,928,950,000.
Expiration Date: December 10,
2021.
Amortization: the principal will be cancelled in 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 Issuance Date
until maturity at a variable rate equivalent to BADLAR plus an
annual margin of 2.25%.
Class 7
Issuance date: December 10,
2020.
Amount Issued: UVA 125,248,683, (Unidad de Valor
Adquisitivo, which is linked to the evolution of inflation),
equivalent to P$7,786,710,622 as of the issuance date.
Expiration Date: December 10,
2023.
Amortization: the principal will be cancelled by 1 (one) payment
for an amount equal to 100% of the total principal, payable on the
Expiration Date.
Interest Rate: accrues quarterly interest from the Issuance Date
until maturity at a fixed annual rate of 3%.
Telecom Argentina obtained the
A1 + (arg) and AA+ (arg) (local ratings) ratings granted by FIX SCR
S.A. (Fitch Ratings) for Class 6 and Class 7 Notes, respectively,
thanks to the Company's credit quality and financial strength.
Extraordinary General Shareholders' Meeting and Class "A" and
Class "D" Shares Special Shareholders' Meetings held on
December 11, 2020
The Extraordinary General Shareholders' Meeting and the Class
"A" and Class "D" Shares Special Shareholders' Meetings held on
December 11, 2020 approved the
amendment of section 10th of the Corporate Bylaws, in accordance
with the proposal approved by the Company's Board of Directors at
its Meeting No. 411.
The aforementioned amendment was approved pursuant to section 4
of the Corporate Bylaws, in the General Extraordinary Shareholders'
Meeting and previously in the Class "A" and Class "D" Shares
Special Shareholders' Meetings.
Loan with China Development Bank, Shenzhen Branch ("CDB")
On December 14, 2020 the Company
agreed with CDB a committed credit line for an amount up to
RMB 700 million (equivalent to
approximately US$ 100 million),
expandable up to RMB 1,400 million,
to be structured in various tranches. The increase in the amount
will be subject to the granting of an insurance by China Export
& Credit Insurance Corporation.
The proceeds from the loan will be used by the Company to
finance its investment plan related to the acquisition by the
Company of telecommunications equipment.
On December 24, 2020 the Company
subscribed a first tranche for a total amount of RMB 19.6 million which accrue an annual interest
rate of 6.8%, payable semi-annually. The principal will be
cancelled in 11 consecutive semi-annual installments starting in
May 2023 until December 2027.
Other Relevant Matters
Issuance of Class 8 Notes
Under its Global Program of Issuance of Notes for up to
US$3,000 million, on January 18, 2021 Telecom Argentina concluded the
placement of Notes with the following characteristics:
Class 8
Issuance date: January 20,
2021.
Amount Issued: UVA 133,628,950, (Unidad de Valor
Adquisitivo, which is linked to the evolution of inflation),
equivalent to P$8,708,598,672 as of the issuance date.
Expiration Date: January 20,
2025.
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 Issuance Date
until maturity at a fixed annual rate of 4%.
Telecom Argentina obtained a
AA+ (arg) (local rating) rating granted by FIX SCR S.A. (Fitch
Ratings) for Class 8 Notes.
Price adjustments
In November 2020 and in accordance
with the prior notice period established by the regulations, the
Company began to inform its clients of an average increase of 20%
in all its mobile services (prepaid/postpaid), fixed, Pay TV and
fixed internet. The new pricing scheme became effective as of
January 1, 2021. The prices of the
"Reduced" and "Inclusive" services remained in force without
modifications.
Communication received from the Asociación Argentina de Televisión por Cable
On February 2, 2021, the Company
was informed by the Asociación Argentina de Televisión por Cable
("ATVC"), that a preliminary injunction requested by a
representative of the cable TV/ subscription-based broadcasting
industry of the Province of Córdoba (Argentina) was granted, ordering "the
suspension of the Necessity and Urgency Decree N° 690/20, of the
Necessity and Urgency Decree N° 311/20 and of all measures adopted
as a result of those Decrees. In addition, [the court] orders the
National Executive Branch and the ENACOM (Argentine Communications
Regulatory Authority) to abstain from issuing or pursuing any
measure based on said Decrees, until a final court decision is
issued".
ATVC also informed the Company that: "In accordance with the
court's decision, the Regulatory Authority is not empowered to
continue issuing rules based on the Necessity and Urgency Decree N°
690 or enforcing those previously issued, which are suspended in
general, and is applicable to all ICT (Information and
Communication Technology) operators in Argentina.".
Telecom Argentina is a leading
telecommunications company 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, 2020, Telecom
Argentina has 2,153,688,011 shares issued and outstanding.
For more information, please contact Investor Relations:
Fernando
Balmaceda
(5411) 4968
5222
|
Solange Barthe
Dennin
(5411) 4968
3752
|
|
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 continued 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, Uruguay and the
United States; (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 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 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, Uruguay and the
United States, including the policies of the new government
in Argentina; (iv) the impact of
political developments, including the policies of the new
government in Argentina, on the
demand for securities of Argentine companies; (v) inflation, the
devaluation of the peso, the Guaraní and the Uruguayan peso and
exchange rate risks in Argentina,
Paraguay and Uruguay; (vi) restrictions on the ability to
exchange Argentine or Uruguayan pesos or Paraguayan guaraníes into
foreign currencies and transfer funds abroad; (vii) the impact of
currency and exchange measures or restrictions on our ability to
access the international markets and our ability to repay our
dollar-denominated indebtedness; (viii) the creditworthiness of our
actual or potential customers; (ix) the nationalization,
expropriation and/or increased government intervention in
companies; (x) technological changes; (xi) 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, including regulatory
developments such as sanctions regimes in other jurisdictions
(e.g., the United States) which
impact on the Company's suppliers; (xii) the effects of increased
competition; (xiii) reliance on content produced by third parties;
(xiv) increasing cost of the Company's supplies; (xv) inability to
finance on reasonable terms capital expenditures required to remain
competitive; (xvi) fluctuations, whether seasonal or in response to
adverse macro-economic developments, in the demand for advertising;
(xvii) the Company's ability to compete and develop our business in
the future; (xviii) the impact of increased national or
international restrictions on the transfer or use of
telecommunications technology; and (xix) the impact of the outbreak
of COVID-19 on the global economy and specifically on the economies
of the countries in which we operate, as well as on our operations
and financial performance. 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:
Fernando Balmaceda
(5411) 4968 5222
Solange Barthe Dennin
(5411) 4968 3752
View original
content:http://www.prnewswire.com/news-releases/telecom-argentina-sa-announces-consolidated-annual-results-fy20-and-fourth-quarter-of-fiscal-year-2020-4q20-301244007.html
SOURCE Telecom Argentina S.A.