This article first appeared on GuruFocus .
Release Date: March 11, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Telecom Argentina SA ( NYSE:TEO ) reported consolidated revenues of over $5.7 billion for 2025, marking a 53% year-over-year increase in constant Argentine pesos, driven by the incorporation of Telefonica Moviles Argentina (TMA).
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The company's EBITDA margin improved to over 30.3% in fiscal year 2025, with a potential increase to over 32% when excluding severance charges from TMA.
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Telecom Argentina SA ( NYSE:TEO ) successfully expanded its fiber-to-home (FTTH) network and 5G infrastructure, with a significant increase in CapEx to approximately $1.0 billion, an 88% increase from the previous year.
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The company maintained a solid credit profile with a net debt to estimated pro forma EBITDA leverage ratio of around 1.7 times, showing improvement from the previous year.
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Telecom Argentina SA ( NYSE:TEO ) achieved growth in its broadband and Pay TV segments, with broadband accesses increasing by 3.2% year-over-year and Pay TV subscriptions growing for the second consecutive year.
Negative Points
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Telecom Argentina SA ( NYSE:TEO ) recorded a consolidated net loss of approximately ARS145 million for fiscal year 2025, compared to a net income of almost ARS1.4 trillion in 2024, primarily due to financial factors.
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The company faced a decrease in mobile subscribers, particularly in the prepaid segment, with a 10.7% reduction year-over-year, although this did not impact mobile service revenues.
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TMA's Pay TV subscriber base saw a decline of 7.9% year-over-year, with a net loss of approximately 33,000 customers.
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The company's financial results were impacted by FX exchange losses due to lower inflation compared to the base of devaluation, affecting the financial results for fiscal year 2025.
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Despite improvements, TMA's EBITDA margin, excluding severance charges, was still lower than Telecom Argentina SA ( NYSE:TEO )'s margin, indicating room for further efficiency improvements.
Q & A Highlights
Q: Can you provide more details on the impact of the Telefonica Moviles Argentina (TMA) acquisition on your financials? A: Federico Pra, Interim CFO: The acquisition of TMA significantly boosted our consolidated revenues, which totaled over $5.7 billion, marking a 53% year-over-year increase in constant Argentine pesos. TMA's contribution was a key driver of this growth. Excluding TMA, our service revenues grew in real terms for the first time since adopting International Accounting Standard 29. The EBITDA margin also improved, reaching over 30.3%, and would have been higher without the increase in severance charges at TMA.
Q: How has the integration of TMA affected your operational performance and market position? A: Federico Pra, Interim CFO: The integration of TMA has strengthened our market leadership, with mobile subscriber bases reaching 19.9 million for Telecom and 19.1 million for TMA. We have seen growth in broadband and pay TV subscriptions, supported by the expansion of our fiber-to-home network and strong commercial performance. TMA's standalone service revenues grew by 4% in real terms, contributing to our overall growth.
Q: What are the key factors driving the improvement in your EBITDA margin? A: Federico Pra, Interim CFO: The improvement in our EBITDA margin, which reached 33.7% excluding TMA, is due to several factors. These include efficiency efforts, lower maintenance and material costs, and reduced labor costs from right-sizing operations. The margin would have been even higher without the increased severance charges at TMA. Our focus on cost efficiency and operational improvements has been crucial in achieving this margin expansion.
Q: Can you elaborate on your capital expenditure priorities and how they align with your strategic goals? A: Federico Pra, Interim CFO: Our capital expenditure for 2025 was approximately $1.0 billion, an 88% increase from the previous year. We prioritized expanding both fixed and mobile access networks, particularly through the rollout of our fiber-to-home network and 5G infrastructure. These investments are essential for strengthening network quality, supporting data consumption growth, and reinforcing our competitive positioning in the long term.
Q: How are you managing your debt and financial stability following the TMA acquisition? A: Federico Pra, Interim CFO: Our net debt to estimated pro forma EBITDA leverage ratio improved to around 1.7 times in fiscal year 2025, even after incorporating the financial acquisition of TMA. We have extended the average life of our debt to more than five years, reducing refinancing risk and maintaining a solid credit profile. Our financial strategy focuses on maintaining a competitive financing cost while ensuring long-term growth and stability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
