teleco.com.br

08/10/2010

Telecom Argentina

Content of this page : Telecom Argentina's quarter results, operates in Argentina and Paraguay. Includes Telecom Personal.

Telecom Argentina is an operator that provides fixed telephony services, cellular (Telecom Personal), long distance, transmission of datas and internet in Argentina. Through its subsidiary Núcleo, it operates in Paraguay with cell phone telephony.

Telecom Italia is controlled by Nortel Inversora that has 54.74% of Telecom Argentina's shares. Nortel is controlled by Sofora Telecomunicações that has 67.78% of ordinary shares. The biggest shareholder of Sofora is Telecom Italia with 50% of shares.

www.telecom.com.ar

Comment

In 2009, Telecom Italia tried to get the Argentinean government's approval to increase the stake at Sofora (company which controls Telecom Argentina's fixed telephony operations).

However, the National Commission for the Defence of Competition (CNDC) considered the current presence of Telefonica inside Telecom Italia as a threat to competition. According to the regulator agency, by doing so Telecom Itália would violate antitrust legislation.

Now Telecom Itália, with Werthein group (which controls 50% at Sofora), will propose a news deal that would change Telecom Argentina's corporative model and would obey the local competition rules.

Thousands	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter	∆Year
Argentina	13,171	13,586	13,994	14,475	14,948	15,334	2.6%	12.9%
Paraguay	1,831	1,768	1,784	1,806	1,819	1,835	0.9%	3.8%
Total	15,002	15,354	15,778	16,281	16,767	17,169	2.4%	11.8%

Argentinean Pesos (Thousands)	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter	∆Year
Mobile Accesses	10,882	11,379	11,941	12,564	13,171	15,334	16.4%	34.8%
Pre (%)	65.8%	66.1%	66.2%	66.0%	67.0%	70.0%	4.5%	5.8%
SMS	990	1,134	1,594	1,454	2,047	2,290	11.9%	101.9%
MOU	96	85	86	83	98	100	2.0%	17.6%
TOU (SMS/Month)	159	189	244	295	290	280	(3.4%)	48.1%
ARPU*	40	40	42	42	41	42	2.4%	5.0%
ARPU (US$)	11	11	11	11	11	11	1.1%	1.5%
Traffic (Million Minutes)	3,782	3,880	4,174	4,625	4,381	4,531	3.4%	16.8%

Million Pesos	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter(%)	∆Year
Revenue	2.829	2.925	3.107	3.365	3.249	3.468	6,7%	18,6%
Voice, Data and internet	979	1.011	1.053	1.114	1.082	1.140	5,4%	12,8%
Mobile Telephony	1,850	1,914	2,054	2,251	2,167	2,328	7.4%	21.6%
EBITDA	917	924	1,014	1,045	1,064	1,100	3.4%	19.0%
Voice, Data and internet	278	267	273	261	293	296	1.0%	10.9%
Mobile Telephony	639	657	741	784	771	804	4.3%	22.4%
EBITDA Margin	32.4%	31.6%	32.6%	31.1%	32.7%	31.7%	-	-
EBIT	659	652	724	727	763	776	1.7%	19.0%
Voice, Data and internet	119	102	107	88	125	119	(4.8%)	16.7%
Mobile Telephony	540	550	617	639	638	657	3.0%	19.5%
Net Profit	351	352	303	399	411	454	10.5%	29.0%
Voice, Data and internet	(13)	(45)	(73)	(44)	3	(5)	(266.7%)	(88.9%)
Mobile Telephony	364	397	376	443	408	459	12.5%	15.6%
Capex	234	529	-	-	342	666	94.7%	25.9%
Fixed Telephony	126	298	-	-	110	281	155.5%	(5.7%)
Mobile Telephony	108	231	-	-	233	385	65.2%	66.7%

Million Argentinean pesos	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter	∆Year
Total Revenue	2,829	2,925	3,107	3,365	3,249	3,468	6.7%	18.6%
National Fixed Telephony	609	619	630	673	622	654	5.1%	5.7%
International Fixed Telephony	75	74	71	74	70	74	5.7%	0.0%
Data Transmitions and Internet	295	318	352	367	390	412	5.6%	29.6%
Data	60	67	70	77	74	84	13.5%	25.4%
Internet	235	251	282	273	316	328	3.8%	30.7%
Mobile Telephony	1,850	1,914	2,054	2,251	2,167	2,328	7.4%	21.6%

Pesos Million	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter	∆Year
Total Revenue	1,757	1,817	1,942	2,112	2,061	2,218	7.6%	22.1%
PostPaid	399	420	ND	431	446	438	(1.8%)	4.3%
Prepaid	259	256	ND	322	331	291	(12.1%)	13.7%
Handsets	164	181	ND	248	186	237	27.4%	30.9%

Pesos Millions	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter	∆Year
Total Revenue	93	97	ND	139	106	110	3.8%	13.4%
PostPaid	11	25	ND	21	17	18	5.9%	(28.0%)
Prepaid	27	25	ND	48	32	25	(21.9%)	0%
Internet - Wimax	5	4	ND	6	4	4	0%	0%
Handsets	2	1	ND	1	1	1	0%	0%

Thousands	2006	2007	2008	2009	∆Year
Argentina	8,425	10,666	12,564	14,475	15.2%
Paraguay	1,164	1,626	1,800	1,806	0.3%
Total	9,589	12,292	14,364	16,281	13.3%

Millions US$	2006	2007	2008	2009	∆Year
Revenue	2,430	2,881	3,075	3,217	4.6%
Fixed Tel.	1,001	1,048	1,059	1,094	3.3%
Cell Tel.	1,411	1,832	2,016	2,123	5.3%
EBITDA	754	969	965	1,026	6.3%
EBITDA margin	31.0%	33.6%	31.4%	31.9%	-
EBIT	299	519	592	728	23.1%
EBIT margin	12.3%	18.0%	19.2%	22.6%	-
Investments	345	425	522	446	(3.8%)
Net Profit	80	256	314	370	32.7%

Thousands	1Q09	2Q09	3Q09	4Q09	1Q10	2Q10	∆Qter(%)	∆Year
Fixed Telephones	4,224	4,026	4,292	4,300	4,306	4,066	(5.6%)	1.0%
Broadband Subscribers	841	1.110	976	1.042	1.068	1.274	19.3%	14.8%
ARPU*	62	64	68	71	73	74	1.4%	15.6%
ARPU (US$)	17	17	18	19	20	20	1.4%	15.6%
Churn	0.0%	1.9%	1.6%	1.8%	-	1.5%	-	-
Fixed Telephony Traffic (Million min.)	3,677	3,905	3,884	4,245	3,667	3,813	4.0%	(2.4%)

Thousands	2006	2007	2008	2009	∆Year
Fixed telephones	4,095	4,208	4,300	4,364	1.5%
Broadband Subscribers	457	783	1.042	1.223	17.4%

Million Argentinean Pesos	2006	2007	2008	2009	∆Year
Revenue	7,437	9,074	10,608	12,226	15.3%
Fixed Tel.	3,064	3,302	3,653	4,157	13.8%
Cell Tel.	4,319	5,772	6,955	8,069	16.0%
EBITDA	2,307	3,052	3,330	3,900	17.1%
EBITDA margin	31.0%	33.6%	31.4%	31.9%	-
EBIT	915	1,636	2,041	2,767	35.6%
EBIT margin	12.3%	18.0%	19.2%	22.6%	-
Investments	1,055	1,302	1,599	1,694	5.9%
Net Profit	244	782	961	1,405	46.2%