Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Monday, November 11, 2019

Telecom had consolidated sales of US$ 2.684 billion in the first 9 months of the year

The figure, which is inflation-adjusted, represents a 10.2% drop over the same period of 2018. The ordinary loss was US$ 2.77 million, an improvement of almost 100% year-on-year.

The figure, which is inflation-adjusted, represents a 10.2% drop over the same period of 2018.

Mobile lines reached 19 million, 490,000 more than in September 2018, with positive portability of 138,000 lines. Sales for mobile services were US$ 798 million and 76% correspond to mobile Internet. Those of equipment were US$ 169 million, fell US$ 59 million annually due to the reduction in consumption of durable goods that was only partially offset by the increase in device prices.

The cable business generated revenues of US$ 561 million between January and September 2019, 12.8% less than in the same period of 2018. Subscribers were 3,219 billion, 1.6% less than in September 2018. It is important to remember that in April, the operator launched Flow IPTV over fiber networks in the cities of Catamarca, Santiago del Estero, Tucumán, La Rioja, Jujuy and Reconquista (Santa Fe), all areas of the old Telecom where it did not provide pay TV through Cablevisión.

Broadband accesses remain almost constant at 4,144 million, 58% already hire services of 20 Mbps or more and sales reached US$ 602 million so far this year (-US$ 70 million vs. 2018).

Sales of fixed telephone and data services amounted to a total of US$ 420 million (+7.4% vs. January-September 2018). In data, the increase was due to services for large clients that have contracts in foreign currency, while in fixed telephony the improvement is due to price increases in both the corporate and residential segments, and packaging.

According to the results report, the EBITDA (Profit from Exploitation before Depreciation and Amortization) was US$ 893 million so far this year, 33.3% of consolidated sales. During the third quarter, the real increase in sales and costs was similar, reducing the gap between the two that exhibited in the first half of the year. Meanwhile, the ordinary loss before income tax was US$ 2.77 billion in the nine months of 2019, an improvement of 99.3% vs. the same period of 2018, reflecting the effect of lower net losses due to exchange differences, measured in real terms. On the other hand, the company recorded a net loss of US$ 213 million for the same period, essentially due to the recognition of the inflation restatement for the calculation of Income Tax. Net financial debt reached US$ 1.769 billion in the first 9 months of 2019, increasing 1% in real terms compared to September 2018.

Investments amounted to US$ 738 million in January-September 2019, equivalent to 27.5% of consolidated sales.

All the figures mentioned are restated taking into account local inflation.

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