teleco.com.br

11/11/2011

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 Argentinian 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	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter	∆Year
Argentina	14,948	15,334	15,988	16,333	16,882	17,392	17,786	2.3%	11.2%
Paraguay	1,819	1,835	1,855	1,878	1,901	1,983	2,078	4.8%	12.0%
Total	16,767	17,169	17,843	18,211	18,783	19,375	19,864	2.5%	11.3%

Million Pesos	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter	∆Year
Revenue	3,249	3,468	3,767	4,195	4,131	4,485	4,770	6.4%	26.6%
Voice, Data and internet	1,082	1,140	1,179	1,239	1,232	1,333	1,356	1.7%	15.0%
Mobile Telephony	2,167	2,328	2,588	2,956	2,899	3,152	3,414	8.3%	31.9%
EBITDA	1,064	1,100	1,118	1,273	1,342	1,360	1,510	11.0%	35.1%
Voice, Data and internet	293	296	236	-	-	-	-	-	-
Mobile Telephony	771	804	882	-	-	-	-	-	-
EBITDA Margin	32.7%	31.7%	29.7%	30.3%	32.5%	30.3%	31.7%	-	-
EBIT	-	776	783	879	980	983	1,101	12.0%	40.6%
Voice, Data and internet	125	119	58	-	-	-	-	-	-
Mobile Telephony	638	657	725	-	-	-	-	-	-
Net Profit	411	454	444	512	628	588	602	2.4%	35.6%
Voice, Data and internet	3	(5)	(43)	-	-	-	-	-	-
Mobile Telephony	408	459	487	-	-	-	-	-	-
Capex	342	666	1,074	1,974	335	752	1,264	68.1%	17.7%
Fixed Telephony	51	100	183	276	70	120	190	57.6%	3.8%
Mobile Telephony	82	160	236	355	57	165	240	45.2%	1.6%

Million Argentinian pesos	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter	∆Year
Total Revenue	3,249	3,468	3,767	4,195	4,131	4,485	4,770	6.4%	26.6%
National Fixed Telephony	622	654	671	686	676	708	731	3.2%	8.9%
International Fixed Telephony	70	74	76	75	76	77	80	3.9%	5.3%
Data Transmitions and Internet	390	412	432	478	480	548	545	(0.5%)	26.2%
Data	74	84	78	102	85	122	92	(24.6%)	17.9%
Internet	316	328	354	376	395	426	453	6.3%	28.0%
Mobile Telephony	2,167	2,328	2,588	2,956	2,899	3,152	3,414	8.3%	31.9%

Pesos Million	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter	∆Year
Total Revenue	2,061	2,218	2,469	2,753	2,734	2,973	3,236	8.8%	31.1%
PostPaid	446	438	474	544	251	268	289	7.7%	(39.1%)
Prepaid	331	291	311	378	586	625	642	2.8%	106.6%
Handsets	186	237	298	297	303	354	382	7.9%	28.2%

Pesos Millions	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter	∆Year
Total Revenue	106	110	119	203	165	179	178	(0.6%)	49.6%
PostPaid	17	18	13	27	10	12	11	(6.8%)	(16.3%)
Prepaid	32	25	36	56	54	61	57	(6.8%)	58.7%
Internet - Wimax	4	4	4	6	5	5	4	(20.0%)	0.0%
Handsets	1	1	2	4	7	7	5	(28.6%)	150.0%

Thousands	2006	2007	2008	2009	2010	∆Year
Argentina	8,425	10,666	12,564	14,475	16,333	12.8%
Paraguay	1,164	1,626	1,800	1,806	1,878	4.0%
Total	9,589	12,292	14,364	16,281	18,211	11.9%

Millions US$	2006	2007	2008	2009	2010	∆Year
Revenue	2,430	2,881	3,075	3,217	3,696	14.9%
Fixed Tel.	1,001	1,048	1,059	1,094	1,168	6.8%
Cell Tel.	1,411	1,832	2,016	2,123	2,528	19.0%
EBITDA	754	969	965	1,026	1,147	11.8%
EBITDA margin	31.0%	33.6%	31.4%	31.9%	31.0%	-
EBIT	299	519	592	728	806	10.9%
EBIT margin	12.3%	18.0%	19.2%	22.6%	21.8%	-
Investments	345	425	522	446	497	10.9%
Net Profit	80	256	314	370	459	24.0%

-	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter	∆Year
Mobile Accesses (thousands)	14,948	15,334	15,988	16,333	16,882	17,392	17,786	2.3%	11.2%
Pre (%)	67%	70%	70%	70%	70%	70%	69%	-	-
SMS (Millions)	4,258	4,246	4,449	4,614	5,164	5,291	5,484	3.6%	23.3%
MOU	98	100	100	-	96	97	98	1.0%	(2.0%)
ARPU*	41	42	43	49	47	49	50	1.6%	15.8%
ARPU (US$)	11	11	11	12	12	12	12	(0.8%)	9.2%
Traffic (Million Minutes)	4,381	4,531	4,796	5,122	4,792	4,915	5,369	9.2%	11.9%

Thousands	1Q10	2Q10	3Q10	4Q10	1Q11	2Q11	3Q11	∆Qter(%)	∆Year
Fixed Telephones	4,306	4,066	4,087	4,107	4,110	4,119	4,132	0.3%	1.1%
Broadband Subscribers	1,241	1,274	1,330	1,380	1,407	1,457	1,505	3.3%	13.2%
Fixed Telephony Traffic (Million min.)	3,667	3,813	1,607	2,417	3,509	3,801	3,833	0.8%	138.5%

Thousands	2006	2007	2008	2009	2010	∆Year
Cell phones	8,425	10,666	12,564	14,475	16,333	12.8%
Pre (%)	65.7%	66.2%	66.0%	69.0%	70.0%	-
SMS	-	1,016	1,454	3,334	4,614	52.1%
MOU	97	90	83	101	102	1.0%
ARPU*	40	42	42	41	44	7.3%

Thousands	2006	2007	2008	2009	2010	∆Year
Fixed telephones	4,095	4,208	4,299	4,060	4,107	1.2%
Broadband Subscribers	457	783	1,042	1,214	1,380	13.7%