Telecom Argentina Swings to P$869B Net Profit in 1H26 on FX Gains, Margin Expansion
TEO has more than doubled off its 52-week low of $6.43 on light trading volume (0.2× avg).
Summary
Telecom Argentina reported a massive turnaround, posting a P$869 billion net profit for 1H26 compared to a P$100.9 billion loss a year ago, driven by significant foreign exchange gains from the peso's real appreciation. Consolidated revenues rose 13.4% to P$5.08 trillion, boosted by the full inclusion of TMA, while operating income before D, A & I surged 35.1% with margins expanding 5.8 percentage points to 35.8%. The core Telecom business (ex-TMA) saw service revenue growth of 2% and an operating margin of 39.7%, reflecting improved efficiency. This follows the conditional antitrust approval in June for the Telefónica Móviles Argentina acquisition, which could further reshape the competitive landscape. CAPEX jumped 47.3% to P$946 billion, signaling aggressive network investment, while net financial debt fell 14.7% in real terms. The results highlight strong operational momentum and a favorable macro tailwind, though the reliance on FX gains warrants caution.
At the time of this announcement, TEO was trading at $13.92 on NYSE in the Trade & Services sector, with a market capitalization of approximately $6.2B. The 52-week trading range was $6.43 to $16.34. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: PR Newswire.