0001104659-26-026480
SEC filingTelecom Argentina's MD&A highlights P$8.33B revenue (+53% YoY) driven by TMA acquisition, but net loss of P$145,304M reflects hyperinflation, FX losses, and TMA integration costs.
In 2025, Telecom Argentina reported consolidated revenues of P$8,328,814 million, a 53% increase from P$5,442,958 million in 2024. The top-line growth was overwhelmingly driven by the acquisition of TMA on February 24, 2025, which contributed P$2,748,493 million in revenue. On a pro-forma basis, excluding TMA, revenue from the Personal Network segment grew 4.9%, reflecting price adjustments partially offset by inflation lag and competitive pressures.
Net loss for 2025 was P$145,304 million, swinging from net income of P$1,359,230 million in 2024. The deterioration was primarily caused by a P$2,743,278 million swing in net financial results, driven by a higher loss from foreign exchange differences (P$2,794,475 million) as the Argentine Peso depreciated 41% against the U.S. dollar while inflation was 31.5% (vs. 27.7% depreciation and 117.8% inflation in 2024). Operating income improved to P$450,047 million (5.4% of revenue) from an operating loss of P$192,676 million (-3.5% of revenue) in 2024, supported by higher revenue and controlled operating costs. Adjusted EBITDA grew 64.8% to P$2,525,535 million (30.3% margin vs. 28.2% in 2024), including P$644,311 million from TMA.
ICT Services – Personal Network: Revenue increased 4.9% to P$5,284,148 million, with mobile services growing 13%, internet services +1.9%, and cable TV +5.7%. Fixed and data services declined 12.3% as the company could not fully pass through 31.5% inflation. Adjusted EBITDA rose 22.7% to P$1,760,667 million, driven by lower employee expenses (-5.3%) and other operating costs (-10.2%).
ICT Services – TMA Network: From the acquisition date to December 31, 2025, TMA generated P$2,748,493 million in revenue and P$644,311 million in Adjusted EBITDA, with mobile services accounting for 63% of revenue. TMA's ARPU was P$8,175.7, and its mobile customer base stood at 19.1 million.
Other Segments: Revenue declined 0.8% to P$431,331 million, with fintech users in Argentina growing 28.8% to 4.7 million. Adjusted EBITDA rose 41.6% to P$137,954 million, primarily due to lower advertising costs for Personal Pay campaigns.
Management's outlook focuses on the integration of TMA to achieve synergies and scale, continued deployment of 5G and FTTH networks, and innovation in B2B digital solutions. The company successfully refinanced acquisition-related debt through Notes issuance (US$1,051 million and P$58,000 million) and aims to maintain access to capital markets. Key risks include Argentina's macroeconomic volatility (inflation, currency depreciation), competitive pressures, and the ability to pass through cost increases via pricing. No forward guidance on specific revenue or margin targets was provided.
No balance sheet data from the Notes section.
No commitment data disclosed in the Notes.
No capital allocation figures provided (buybacks, dividends, debt changes, or capex).
No segment economics reported in the Notes.
Argentina remains the dominant risk source. The Peso depreciated 41% in 2025, and new FX bands (P$1,000–1,400) and BCRA measures attempt to stabilize but success is uncertain. Inflation, though declining to 31.5% in 2025, keeps the economy hyperinflationary, eroding real revenues. The Milei administration's Phase 3 program includes fiscal adjustment and deregulation, but political sustainability is untested. US tariffs under Trump (25% on steel/aluminum) and heightened trade tensions with China threaten equipment costs and supply chains. Argentina’s limited access to international capital markets persists despite IMF agreements.
The acquisition of TMA (closed Feb 2025) is under antitrust review by the newly created ANC. Provisional restrictions on integration were lifted on appeal, but final approval may require divestitures, impacting expected synergies and covenant compliance. Telecom also faces ongoing labor union disputes and regulatory burdens from municipal antenna restrictions and coverage obligations.
Rapid adoption of OTT streaming (Disney+, Max), LEO satellite internet (Starlink gaining subscribers), and Direct-to-Cell satellite connectivity threaten traditional telecom revenues. Enterprise solutions face competition from SD-WAN and hyperscalers. Technological obsolescence requires sustained capex; failure to invest could erode market share. Fintech services (Personal Pay) face strong competition from established fintechs and banks.
Cybersecurity risks are elevated due to fintech expansion and remote work; no cyber insurance covers attacks. AI adoption introduces new risks of inaccurate outputs and regulatory scrutiny. Debt maturity concentration (59.8% due by 2029, with 29.7% in 2026) creates refinancing risk, especially if local currency conditions worsen. Covenants restrict additional debt and asset sales. Supplier concentration (Huawei) exposes to US export controls.