Telecom Argentina Swings to P$869B Net Income in 1H26 on FX Gains, Margin Expansion

summarizeSummary

Telecom Argentina reported a P$869 billion net profit for 1H26, reversing a year-ago loss, fueled by a massive FX gain and higher margins. Revenue rose 13.4% and net debt fell 14.7% in real terms.

check_boxKey Events · Earnings and Guidance · TEO

• Net Income Swing to P$869B

  Consolidated net income reached P$869,038 million in 1H26, compared to a net loss of P$100,900 million in 1H25, driven by a P$830,350 million foreign exchange gain as the peso appreciated only 1.9% vs. 16.8% inflation.

• Revenue Growth of 13.4%

  Consolidated revenues rose to P$5,075,511 million, with service revenues up 16.0% to P$4,888,908 million, reflecting six months of TMA consolidation versus four months in 1H25.

• EBITDA Margin Expansion

  Operating Income before D, A & I margin improved to 35.8% (+5.8 p.p. vs. 1H25), with Telecom (excluding TMA) margin reaching 39.7%, reflecting operating efficiency gains.

• Net Debt Reduction

  Consolidated Net Financial Debt decreased to P$4,646,726 million as of June 30, 2026, a 14.7% real-terms decline from December 31, 2025, strengthening the balance sheet.

auto_awesomeAnalysis · TEO · Technology

A dramatic turnaround marked Telecom Argentina's first half of 2026, as net income swung to P$869 billion from a P$101 billion loss a year ago. The reversal was fueled by a P$830 billion foreign exchange gain—the peso appreciated in real terms—and a 5.8 percentage point expansion in EBITDA margin to 35.8%. Revenue grew 13.4% to P$5.1 trillion, aided by the full consolidation of Telefónica Móviles Argentina (TMA). Meanwhile, net debt fell 14.7% in real terms, and capex surged 47% to expand 5G and fiber. These results underscore strong cash generation and balance-sheet improvement, even as the company navigates Argentina's inflationary environment and the antitrust-mandated divestiture of TMA customers.