FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of March, 2005
Commission File Number: 001-13464
Telecom Argentina S.A.
(Translation of registrant’s name into English)
Alicia Moreau de Justo, No. 50, 1107
Buenos Aires, Argentina
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes No X
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes No X
Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes No X
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
Telecom Argentina S.A.
TABLE OF CONTENTS
| Item |
||
| 1. |
Earnings release for consolidated annual results and fourth quarter results of 2004. |
Item 1
FOR IMMEDIATE RELEASE
Market Cap: P$8,2 billion
(March 8, 2005)
Contacts:
Pedro Insussarry
Pablo Caride
Telecom Argentina
(54-11) 4968-3627/3626
TELECOM ARGENTINA S.A. ANNOUNCES
CONSOLIDATED ANNUAL (“FY04”) AND
FOURTH QUARTER (“4Q04”) RESULTS FOR FISCAL YEAR 2004 *
MAJOR EVENTS AND DEVELOPMENTS
| • | During 4Q04 Telecom Personal and Núcleo (Paraguay) closed their debt restructurings. As of December 31, 2004, net financial debt of Telecom Personal and Nucleo reached P$1,168 (equivalent to US$392) and P$119 (equivalent to US$40) respectively. |
| • | Regarding Telecom Argentina’s debt restructuring, at a bondholders’ meeting held on February 4, 2005, creditors representing 94.51% of outstanding bonds voted unanimously in favor of the APE proposal. |
| • | During FY04 the following results were recorded: |
| • | Net Revenues amounted to P$4,494MM (+ P$741 MM or +20% vs. FY03) mainly due to the expansion of the mobile business. |
| • | Operating Profit amounted to P$400 MM (+P$293 MM vs. FY03). |
| • | Net loss of P$666 MM (P$ -1,017 MM vs. FY03) as a consequence of negative financial and holding results mainly due to higher interest and currency exchange losses. |
| • | Shareholders Equity amounted to P$502 MM (-P$666 MM or -57% vs. FY03). |
| • | Net Financial Debt as of December 31, 2004 reached P$7,032 MM (-P$548 MM or -7%vs. FY03). |
| • | The Ratio Net Financial Debt / Operating Profit before Depreciation and Amortization decreased to 3.4 (from 3.8 as of December 31, 2003), mainly due to the debt restructurings of Telecom Personal and Nucleo. |
| • | The operations of the Company are still being influenced by the pesification and freeze of regulated tariffs. Additionally, the results of the Company continue to be highly impacted by the fluctuation of the exchange rate of the Peso vs. the Dollar and the Euro. |
| As of December 31 |
|||||||||||
| 2004 |
2003 |
D $ |
D % |
||||||||
| Consolidated net revenues (in MM P$) |
4.494 | 3.753 | 741 | 20 | % | ||||||
| Fixed Telephony |
2.718 | 2.556 | 162 | 6 | % | ||||||
| Cellular |
1.733 | 1.163 | 570 | 49 | % | ||||||
| Directories edition |
43 | 34 | 9 | 26 | % | ||||||
| Operating Profit before D&A (in MM P$) |
2.046 | 1.984 | 62 | 3 | % | ||||||
| Operating Profit (in MM P$) |
400 | 107 | 293 | 274 | % | ||||||
| Net income/(Loss) (in MM P$) |
(666 | ) | 351 | (1.017 | ) | -290 | % | ||||
| Shareholder’s equity (in MM P$) |
502 | 1.168 | (666 | ) | -57 | % | |||||
| Net financial debt (in MM P $) |
7.032 | 7.580 | (548 | ) | -7 | % | |||||
| CAPEX (in MM P$) |
428 | 120 | 308 | 257 | % | ||||||
| Lines in service (Fixed lines -in thousands) |
3.790 | 3.656 | 134 | 4 | % | ||||||
| Cellular customers (in thousands) |
4.337 | 3.130 | 1.207 | 39 | % | ||||||
| Telecom Personal |
3.835 | 2.603 | 1.232 | 47 | % | ||||||
| Núcleo (Paraguay) |
502 | 527 | (25 | ) | -5 | % | |||||
| ADSL Total lines (in thousands) |
125 | 70 | 55 | 79 | % | ||||||
| Arnet subscribers (in thousands) |
233 | 200 | 33 | 17 | % | ||||||
| Dial-up |
152 | 155 | (3 | ) | -2 | % | |||||
| ADSL |
81 | 45 | 36 | 80 | % | ||||||
| Fixed traffic (in MM minutes) |
16.642 | 16.065 | 577 | 4 | % | ||||||
| Incoming/Outgoing cellular traffic (in MM minutes) |
3.602 | 2.568 | 1.034 | 40 | % | ||||||
| Average Revenue per user (ARPU ) Fixed Telephony (in P$) |
40 | 39 | 1 | 3 | % | ||||||
| Average Revenue per user (ARPU ) Cellular Telephony (in P$) |
35 | 32 | 4 | 11 | % | ||||||
| * | Non-financial data unaudited. |
| 1 | www.telecom.com.ar |
Buenos Aires, March 8, 2005 – Telecom Argentina (BASE: TECO2, NYSE: TEO), one of Argentina’s largest telecommunications companies, announced today a consolidated net loss of P$666 million for the fiscal year ended December 31, 2004 (“FY04”). Comparatively, consolidated net income for fiscal year 2003 (“FY03”) was P$351 million. Consolidated net loss for the fourth quarter of fiscal year 2004 (“4Q04”) was P$175 million. Comparatively, consolidated net loss for (“4Q03”) was P$428 million.
Earnings/loss per share and ADR for FY04 amounted to P$(0.68) and P$(3.38), respectively. Earnings per share/loss and ADR for FY03, were P$0.35 and P$1.78, respectively. Earnings/loss per share and ADR for 4Q04 amounted to P$(0.18) and P$(0.89), respectively. In comparison, earnings/loss per share and ADR for 4Q03, were P$(0.43) and P$(2.17), respectively.
Operating profit before depreciation and amortization, operating profit/(loss) and net income/(loss) for FY04 represented, 46%, 9% and (15%) of net sales, respectively; compared with 53%, 3% and 9%, respectively, for FY03. Operating profit before depreciation and amortization, operating profit/(loss) and net income/(loss) for 4Q04 represented, 44%, 15% and (14%) of net sales, respectively; compared with 52%, 8% and (41%), respectively, for 4Q03.
The fall in the operating profit before depreciation and amortization margin in FY04 and 4Q04 is a consequence of the increased activity in the cellular telephony. In spite of this fall in margin, the operating profit before depreciation and amortization for FY04 reached P$2.046 million, an increase of P$62 million or 3% compared with FY03.
Company Activities
Evolution of Consolidated Net Revenues
(FY04 vs. FY03 comparison)
Consolidated net revenues for FY04 totaled P$4,494 million, an increase of P$741 million, or 20%, compared with P$3,753 million for FY03. The increase can be largely attributed to the increase in demand, particularly in the cellular business in Argentina.
Fixed Telephony
In fixed telephony operations, local measured service revenues increased by P$28 million, or 6%, to P$518 million during FY04. Domestic long distance revenues increased by P$14 million, or 3%, reaching P$441 million. Revenues from both local and domestic long distance telephony increased due to higher traffic.
Total traffic volume (Local and DLD), measured in minutes, increased by 4%.
| 2 | www.telecom.com.ar |
Monthly charges increased by P$33 million, or 5%, to P$635 million for FY04, mainly due to the increase in customer lines. Customer lines as of December 31, 2004 increased to approximately 3,484,000, due to the recovery in demand, compared to approximately 3,361,000 as of December 31, 2003. However, the current level of lines in service is still lower than before the economic crisis (December 2001). Moreover, fixed telephony tariffs remained stable after the “pesification” and freeze enforced by the Argentine Government in January 6, 2002.
Revenues generated by interconnection services increased by P$46 million, or 28%, to P$210 million, mainly due to the increase of traffic transported by the fixed and cellular networks.
Regarding the international telephony activities, during FY04 revenues reached P$215 million increasing by P$2 million or 1%, mainly due to higher traffic.
Internet and Data Transmission
Revenues generated by the data transmission and Internet business totaled P$416 million, representing an increase of P$24 million, or 6%, mainly due to the increase of the in the number of ADSL clients partially offset by lower prices for data transmission services.
As of December 31, 2004 total lines in service with ADSL connections amounted to 124,700, an increase of 55,000, or 79%. The number of Arnet’s ADSL subscribers reached approximately 81,200, increasing by 80% while Internet dial-up customers reached approximately 152,000, decreasing 2%. Internet minutes represented 30% of total traffic measured in minutes transported over the fixed-line network. However, the internet minutes have fallen due to the steady migration of clients to ADSL services.
Cellular Telephony
The revenues generated by the cellular business during FY04 increased by P$570 million, or 49%, to P$1,733 million.
Revenues of Telecom Personal in Argentina increased by P$564 million, or 56%, to P$1,567 million, mainly due to the higher number of subscribers, to the increase in total traffic, and to
| 3 | www.telecom.com.ar |
the increase in sales of handsets as a consequence of the increase in the demand for cellular services and the development of the GSM network.
Furthermore, the average revenue per user increased by 11% (to P$35 per customer, including revenues for TLRD or termination of calls coming from other cellular operators). Likewise, total cellular traffic increased by 40%.
Total cellular subscribers of Telecom Personal in Argentina reached approximately 3,835,000 at December 31, 2004, representing an increase of approximately 1,232,000 customers, or 47%. This increase in the client’s base was fueled by the impressive growth in the number of GSM subscribers.
The level of competition in the cellular market continues to be significantly high after the launch of GSM services. In this environment, Telecom Personal continues to increase the coverage and capacity of its GSM network and has continued its marketing campaigns and promotions aimed to reposition its brand and strengthen its market position.
The customer base as of December 31, 2004 amounted to approximately 2,831,000 prepaid subscribers, representing 74% of the total customer base, and approximately 1,004,000 post-paid subscribers, representing the remaining 26%. These percentages were 81% and 19%, respectively, as of December 31, 2003.
Núcleo, Telecom Personal’s subsidiary that provides cellular services in Paraguay, generated P$166 million in revenues during FY04, which are consolidated into the mobile telephony business together with the revenues of Telecom Personal. Núcleo’s FY04 revenues represented an increase of P$6 million, or 4%.
As of December 31, 2004, Núcleo had approximately 502,000 customers, a decrease of approximately 5% due to the loss of dormant prepaid customers whose elimination from Núcleo’s customer base was ordered by the Paraguayan regulatory authority. However, Núcleo’s postpaid subscribers increased by 44% reaching 114,000 clients, representing 23% of the customer’s base. Additionally, Núcleo launched its GSM services in Paraguay becoming the operator with the larger GSM/GPRS coverage in the country.
Directories
In the telephone directories’ publishing business, revenues from the affiliated company Publicom increased by P$9 million to P$43 million during FY04 due to higher sales of advertising space in Páginas Amarillas’ directories and the launch of several new special directories.
| 4 | www.telecom.com.ar |
Evolution of Operating Costs
The cost of services provided, administrative expenses and selling expenses for FY04 increased by P$448 million, or 12%, to P$4,094 million, mainly due to the increase in commissions for handset sales, cost of handsets, TLRD costs and advertising expenses. The evolution of costs is mainly related to the increase in sales and increasing competition in the mobile telephony business.
Salaries and social security contributions increased by P$87 million, or 17%, to P$593 million primarily due to the increase in salaries granted during the year. Additionally, labor costs rose as a consequence of the increase in headcount. As of December 31, 2004, the headcount totaled 14,053, compared to 13,949 as of December 31, 2003.
The allowance for doubtful accounts decreased by P$6 million, or 55%, to P$5 million. This positive evolution was related to the improvement in the levels of collection and the recovery of past due accounts mainly in the fixed telephony business.
Sales commissions increased by P$81 million, or 84%, to P$177 million for FY04, as a consequence of higher commissions paid for new customers and higher sales of cellular prepaid cards.
Costs related to advertising increased by P$49 million, or 111%, to P$93 million for FY04. This increase was mainly due to higher media advertising expenses for the cellular and Internet businesses.
In the cellular telephony business, TLRD costs (termination charges in third parties cellular networks), which have been accounted since mid-2003, reached P$137 million. Additionally, in FY04 the cost of cellular handsets increased by P$215 million reaching P$237 million, mainly due to the increase in handsets sales as a consequence of the cellular business growth after the launch of GSM service.
Depreciation of fixed and intangible assets decreased by P$231 million, or 12%, to P$1,646 million during FY04 as a consequence of the end of the amortization period of certain assets.
Financial and Holding Results
The loss resulting from financial and holding results reached P$1,172 million for FY04 as compared to a gain of P$48 million in FY03. The difference can be largely attributed to a decrease of P$1,084 million related to net currency exchange differences. The gap was a consequence of the effect that the evolution of the Argentine Peso against the Dollar and the Euro had on the financial debt of the Company.
Debt Restructuring Results
The debt restructuring processes of Telecom Personal and Núcleo generated positive results for P$209 million, as a result of the agreements that Telecom Personal and Núcleo reached with their creditors. The positive results were generated by the haircut (P$72 million), the forgiveness of compensatory interest (P$142 million) and the valuation of the debt at net present value (P$41 million), partially offset by other expenses (P$46 million).
After their restructuring Telecom Personal and Núcleo debts as of December 31, 2004, reached US$416 million and US$44 million, respectively.
Additionally, once the Company obtains final homologation of its APE and the debt exchange is performed, Telecom Argentina will account for the corresponding gains as a result of the restructuring of its debt. Such gains will arise from the haircut and the forgiveness of compensatory interests.
| 5 | www.telecom.com.ar |
Other Expenses
Other expenses (net) decreased by P$90 million, or 54%, to P$78 million for the FY04 mainly as a result of lower severance payments and lower provisions for lawsuits.
Cash flow and Net Financial Debt
Net Debt (Loans minus Cash and Banks plus Investments) decreased by P$548 million, or 7%, to P$7,032 million for FY04 compared with FY03 (P$7,580 million), mainly as a consequence of the successful restructuring of Telecom Personal and Núcleo’s debts and the cash flow generation of the Company partially offset by the evolution of the Argentine Peso against the Euro and the Dollar.
Investments
Of the total amount of P$428 million invested during FY04, P$160 million, or 37%, corresponds to fixed-line telephony, data transmission and Internet, and P$268 million or 63% to the cellular business as Telecom Personal continues with the deployment of its GSM network.
We note that the investments made during FY04 were lower than those allowed under the debt restructuring covenants that are applicable to Telecom Argentina and its subsidiaries. The amounts not used during the present Fiscal Year can be carried forward to the next Fiscal Year.
Telecom Argentina Board of Directors Proposal to Transfer Balance of Retained Earnings to the New Fiscal Year- Article 206 of the Argentine Corporate Law.
As the negative Unappropriated Retained Earnings as of December 31, 2004 exceed the Legal Reserve and the 50% of the Adjustment to Capital Stock, the Company would be in the situation foreseen by the Article 206 of the Argentine Corporate Law that mandates for these cases the obligatory reduction of the capital.
The Argentine Government had suspended, through consecutive decrees, the application of the above-mentioned Article 206 until December 10, 2004, but until today the suspension has not been prorogated. Under these circumstances the Board of Directors must propose to the Shareholders the measures to be adopted. The Board of the Company deems that this situation may be considered transitory, as it is expected that during Fiscal Year 2005 the debt restructuring process will conclude. In such process, the Bondholders meeting was held with creditors representing 94.51% of the outstanding notes that voted unanimously in favor of the proposal included in its Acuerdo Preventivo Extrajudicial (“APE”). Moreover, it must be noted that the court that deals with the homologation of the APE has resolved the admittance of such agreement and has instructed the publication of the corresponding judicial notices. The debt restructuring would significantly improve the Shareholders’ Equity structure and would allow the Company to absorb a substantial part of the accumulated losses. Therefore, the Board of Directors will propose to the Shareholders to approve the transfer to the new Fiscal Year the negative Unappropriated Retained Earnings as of December 31, 2004 and to differ the adoption of a measure regarding Article 206 until the end of the restructuring process.
Other Matters
New Organizational Structure
On January 5, 2005, the Telecom Group decided to implement a new organizational model, creating a new unit dedicated to the fixed telephony business. This unit is joined to the one that is dedicated to
| 6 | www.telecom.com.ar |
the cellular business (represented by Telecom Personal S.A.). Both units (fixed telephony and cellular) will report to the Chief Executive Officer, Mr. Carlos Felices.
Moreover, Mr. Edmundo Poggio was designated as General Director of the Fixed Telephony Unit, while Mr. Carlos Felices will be General Director of Telecom Personal (the Cellular Unit), in an interim manner.
The Telecom Group has designed this new organizational model in response to the changing needs of its business and to continue with the most effective and responsive offer for its clients.
Bondholders Meeting
On February 4, 2005, a Bondholders’ Meeting was held ordered by the National Commercial Court N° 19, where the APE was filed for its homologation.
Creditors representing 94.51% of outstanding bonds voted unanimously in favor of the proposal contemplated in the APE.
***********
Telecom is the parent company of a leading telecommunications group in Argentina, where it offers directly or through its controlled subsidiaries local and long distance fixed-line telephony, cellular, PCS, data transmission, and Internet services, among other services. Additionally, through a controlled subsidiary the Telecom Group offers cellular services in Paraguay. The Company commenced operations on November 8, 1990, upon the Argentine Government’s transfer of the telecommunications system in the northern region.
Nortel Inversora S.A. (“Nortel”), which acquired the majority of the Company from the Argentine government, holds 54.74% of Telecom’s common stock. Nortel is a holding company where the common stock (approximately 68% of capital stock) is owned by Sofora Telecomunicaciones S.A.. Additionally, the capital stock of Nortel is comprised of preferred shares that are held by minority shareholders.
On December 31, 2004, Telecom had 984,380,978 shares outstanding.
| 7 | www.telecom.com.ar |
| For more information, please contact Financial Planning & Investor Relations Department: |
For information about Telecom Group services visit: | |
| Pedro Insussarry |
www.telecom.com.ar | |
| 54-11-4968-3743 |
||
| pinsussa@ta.telecom.com.ar |
www.telecompersonal.com.ar | |
| Moira Colombo |
www.arnet.com.ar | |
| 54-11-4968-3628 |
||
| mcolombo@ta.telecom.com.ar |
www.highway.arnet.com.ar | |
| Gastón Urbina |
www.paginasamarillas.com.ar | |
| 54-11-4968-6236 |
||
| gurbina@ta.telecom.com.ar |
||
| Voice Mail: 54-11-4968-3627 |
||
| Fax: 54-11-4313-5842 |
||
Disclaimer
This document may contain statements that could constitute forward-looking statements, including, but not limited to the Company’s expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; the outcome of its debt restructuring process; the impact of emergency laws enacted by the Argentine Government; and the impact of rate changes and competition on the Company’s future financial performance. Forward looking statements may be identified by words such as “believes”, “expects”, “anticipates”, “projects”, “intends”, “should”, “seeks”, “estimates”, “future” or other similar expressions. Forward-looking statements involve risks and uncertainties that could significantly affect the Company’s expected results. The risks and uncertainties include, but are not limited to, uncertainties concerning the outcome of the court proceedings relating to the debt restructuring, the impact of emergency laws enacted by the Argentine Government which have resulted in the repeal of Argentina’s Convertibility law, the devaluation of the peso, various changes in restrictions on the ability to exchange pesos into foreign currencies, and currency transfer policy generally, the “pesification” of tariffs charged for public services, the elimination of indexes to adjust rates charged for public services and the Executive branch announcement to renegotiate the terms of the concessions granted to public service providers, including Telecom. Due to extensive changes in laws and economic and business conditions in Argentina, it is difficult to predict the impact of these changes on the Company’s financial condition. Other factors may include, but are not limited to, the evolution of the economy in Argentina, growing inflationary pressure and evolution in consumer spending and the outcome of certain legal proceedings. Readers are cautioned not to place undue reliance on forward looking statements, which speak only as the date of this document. The Company undertakes no obligation to release publicly the results of any revisions to forward looking statements which may be made to reflect events and circumstances after the date of this press release, including, without limitation, changes in the Company’s business or to reflect the occurrence of unanticipated events. Readers are encouraged to consult the Company’s Annual Report and Form 20-F as well as periodic filings made on Form 6-K, which are filed with or furnished to the United States Securities and Exchange Commission for further information concerning risks and uncertainties faced by Telecom.
*******
(Financial tables follow)
*******
| 8 | www.telecom.com.ar |
Amadeo R. Vázquez
President
*******
| 9 | www.telecom.com.ar |
TELECOM ARGENTINA S.A.
Consolidated information
TWELVE MONTH PERIOD AND FOUR QUARTER- FISCAL YEAR 2004.
(In millions of Argentine pesos, except statistical data)
| 1- | Consolidated Balance Sheet |
| Dec-31 |
Dec-31 |
|||||||||
| 2004 |
2003 |
D $ |
D % |
|||||||
| Cash, equivalents and investments |
3.662 | 2.467 | 1.195 | 48 | % | |||||
| Trade receivables |
612 | 581 | 31 | 5 | % | |||||
| Other current assets |
160 | 136 | 24 | 18 | % | |||||
| TOTAL CURRENT ASSETS |
4.434 | 3.184 | 1.250 | 39 | % | |||||
| Fixed & Intangible assets |
7.668 | 8.846 | (1.178 | ) | -13 | % | ||||
| Other non-current assets |
237 | 240 | (3 | ) | -1 | % | ||||
| TOTAL NON-CURRENT ASSETS |
7.905 | 9.086 | (1.181 | ) | -13 | % | ||||
| TOTAL ASSETS |
12.339 | 12.270 | 69 | 1 | % | |||||
| Accounts payable |
548 | 451 | 97 | 22 | % | |||||
| Loans |
9.434 | 9.996 | (562 | ) | -6 | % | ||||
| Reserves |
30 | 15 | 15 | 100 | % | |||||
| Other current liabilities |
215 | 222 | (7 | ) | -3 | % | ||||
| TOTAL CURRENT LIABILITIES |
10.227 | 10.684 | (457 | ) | -4 | % | ||||
| Loans |
1.219 | 86 | 1.133 | 1317 | % | |||||
| Reserves |
214 | 210 | 4 | 2 | % | |||||
| Other non-current liabilities |
123 | 69 | 54 | 78 | % | |||||
| TOTAL NON-CURRENT LIABILITIES |
1.556 | 365 | 1.191 | 326 | % | |||||
| TOTAL LIABILITIES |
11.783 | 11.049 | 734 | 7 | % | |||||
| Minority Interest |
30 | 32 | (2 | ) | -6 | % | ||||
| Temporary differences from translation |
24 | 21 | 3 | 14 | % | |||||
| Shareholders’ equity |
502 | 1.168 | (666 | ) | -57 | % | ||||
| TOTAL LIABILITIES AND EQUITY |
12.339 | 12.270 | 69 | 1 | % | |||||
| 2- | Consolidated Loans |
| Dec-31 |
Dec-31 |
||||||||||
| 2004 |
2003 |
D $ |
D % |
||||||||
| Corporate Bonds |
5.353 | 4.912 | 441 | 9 | % | ||||||
| Banks |
1.177 | 1.638 | (461 | ) | -28 | % | |||||
| On purchase of fixed assets and inventories |
1.475 | 2.595 | (1.120 | ) | -43 | % | |||||
| Accrued interest |
1.259 | 747 | 512 | 69 | % | ||||||
| Penalties or default interest |
170 | 104 | 66 | 63 | % | ||||||
| TOTAL CURRENT LOANS |
9.434 | 9.996 | (562 | ) | -6 | % | |||||
| Banks |
1.260 | 86 | 1.174 | 1365 | % | ||||||
| Net Present Value |
(41 | ) | — | (41 | ) | — | |||||
| TOTAL NON-CURRENT LOANS |
1.219 | 86 | 1.133 | 1317 | % | ||||||
| TOTAL LOANS |
10.653 | 10.082 | 571 | 6 | % | ||||||
10
| 3- | Consolidated Income Statement |
Twelve-Month Comparison
| Dec-31 |
D $ |
|||||||||||
| 2004 |
2003 |
D % |
||||||||||
| Net revenues |
4.494 | 3.753 | 741 | 20 | % | |||||||
| Cost of services provided |
(2.950 | ) | (2.640 | ) | (310 | ) | 12 | % | ||||
| GROSS PROFIT |
1.544 | 1.113 | 431 | 39 | % | |||||||
| Administrative expenses |
(244 | ) | (222 | ) | (22 | ) | 10 | % | ||||
| Selling expenses |
(900 | ) | (784 | ) | (116 | ) | 15 | % | ||||
| OPERATING (LOSS)/PROFIT |
400 | 107 | 293 | 274 | % | |||||||
| Equity income from related companies |
(2 | ) | 2 | (4 | ) | -200 | % | |||||
| Net financial & holding results |
(1.172 | ) | 48 | (1.220 | ) | -2542 | % | |||||
| Debt Restructuring Results |
209 | 376 | (167 | ) | -44 | % | ||||||
| Other incomes & expenses |
(78 | ) | (168 | ) | 90 | -54 | % | |||||
| RESULTS FROM ORDINARY OPERATIONS |
(643 | ) | 365 | (1.008 | ) | -276 | % | |||||
| Taxes on income |
(26 | ) | 7 | (33 | ) | -471 | % | |||||
| Minority interest |
3 | (21 | ) | 24 | -114 | % | ||||||
| NET (LOSS)/INCOME |
(666 | ) | 351 | (1.017 | ) | -290 | % | |||||
| Operating (Loss)/Profit before D&A |
2.046 | 1.984 | 62 | 3 | % | |||||||
| As a % of Net Revenues |
46 | % | 53 | % | ||||||||
Consolidated Income Statement
Three-Month Comparison
| Dec-31 |
||||||||||||
| 2004 |
2003 |
D $ |
D % |
|||||||||
| Net revenues |
1.283 | 1.042 | 241 | 23 | % | |||||||
| Cost of services provided |
(797 | ) | (711 | ) | (86 | ) | 12 | % | ||||
| GROSS PROFIT |
486 | 331 | 155 | 47 | % | |||||||
| Administrative expenses |
(60 | ) | (40 | ) | (20 | ) | 50 | % | ||||
| Selling expenses |
(234 | ) | (208 | ) | (26 | ) | 13 | % | ||||
| OPERATING (LOSS)/PROFIT |
192 | 83 | 109 | 131 | % | |||||||
| Equity income from related companies |
(1 | ) | — | (1 | ) | — | ||||||
| Net financial & holding results |
(550 | ) | (481 | ) | (69 | ) | 14 | % | ||||
| Debt Restructuring Results |
209 | 1 | 208 | 20800 | % | |||||||
| Other incomes & expenses |
(9 | ) | (30 | ) | 21 | -70 | % | |||||
| RESULTS FROM ORDINARY OPERATIONS |
(159 | ) | (427 | ) | 268 | -63 | % | |||||
| Taxes on income |
(17 | ) | 7 | (24 | ) | -343 | % | |||||
| Minority interest |
1 | (8 | ) | 9 | -113 | % | ||||||
| NET (LOSS)/INCOME |
(175 | ) | (428 | ) | 253 | -59 | % | |||||
| Operating (Loss)/Profit before D&A |
564 | 537 | 27 | 5 | % | |||||||
| As a % of Net Revenues |
44 | % | 52 | % | ||||||||
11
| 4- | Consolidated Statement of Cash Flow |
Twelve -Month Comparison
| Dec-31 |
||||||||||||
| 2004 |
2003 |
D $ |
D % |
|||||||||
| Net income |
(666 | ) | 351 | (1.017 | ) | -290 | % | |||||
| Depreciation and Amortization |
1.646 | 1.877 | (231 | ) | -12 | % | ||||||
| Increase in provisions |
63 | 12 | 51 | 425 | % | |||||||
| (Increase)/decrease in assets |
(203 | ) | (366 | ) | 163 | 45 | % | |||||
| (Decrease)/increase in liabilities |
6 | 334 | (328 | ) | -98 | % | ||||||
| Others, net |
1.318 | (193 | ) | 1.511 | 783 | % | ||||||
| Total Funds generated by Operating Activities |
2.164 | 2.015 | 149 | 7 | % | |||||||
| Total Funds applied to Investing Activities |
(851 | ) | (345 | ) | (506 | ) | -147 | % | ||||
| Increase in financial debt, net |
(471 | ) | (11 | ) | (460 | ) | -4182 | % | ||||
| Debt Restructuring Results |
(422 | ) | 422 | -100 | % | |||||||
| Interests and financial expenses |
(118 | ) | (335 | ) | 217 | 65 | % | |||||
| Total Funds applied to Financing Activities |
(589 | ) | (768 | ) | 179 | 23 | % | |||||
| Increase/(decrease) of Funds |
724 | 902 | (178 | ) | -20 | % | ||||||
Consolidated Statement of Cash Flow
Three-Month Comparison
| Dec-31 |
||||||||||||
| 2004 |
2003 |
D $ |
D % |
|||||||||
| Net income |
(175 | ) | (428 | ) | 253 | 59 | % | |||||
| Depreciation and Amortization |
372 | 454 | (82 | ) | -18 | % | ||||||
| Increase in provisions |
4 | (9 | ) | 13 | 144 | % | ||||||
| (Increase)/decrease in assets |
(40 | ) | (69 | ) | 29 | 42 | % | |||||
| (Decrease)/increase in liabilities |
(13 | ) | 101 | (114 | ) | -113 | % | |||||
| Others, net |
544 | 588 | (44 | ) | -7 | % | ||||||
| Total Funds generated by Operating Activities |
692 | 637 | 55 | 9 | % | |||||||
| Total Funds applied to Investing Activities |
(739 | ) | (60 | ) | (679 | ) | -1132 | % | ||||
| Increase in financial debt, net |
(465 | ) | (3 | ) | (103 | ) | -3433 | % | ||||
| Debt Restructuring Results |
— | (1 | ) | (564 | ) | -8057 | % | |||||
| Interests and financial expenses |
(106 | ) | (3 | ) | (462 | ) | -15400 | % | ||||
| Total Funds applied to Financing Activities |
(571 | ) | (7 | ) | (564 | ) | -8057 | % | ||||
| Increase/(decrease) of Funds |
(618 | ) | 570 | (1.188 | ) | -208 | % | |||||
12
| 5- | Consolidated Revenues Breakdown |
Twelve -Month Comparison
| Dec-31 |
||||||||||
| 2004 |
2003 |
D $ |
D % |
|||||||
| Fixed Telephony |
2.087 | 1.951 | 136 | 7 | % | |||||
| Measured service |
||||||||||
| Local |
518 | 490 | 28 | 6 | % | |||||
| DLD |
441 | 427 | 14 | 3 | % | |||||
| Monthly charges |
635 | 602 | 33 | 5 | % | |||||
| Public telephones |
170 | 168 | 2 | 1 | % | |||||
| Interconnection |
210 | 164 | 46 | 28 | % | |||||
| Others |
113 | 100 | 13 | 13 | % | |||||
| International Telephony |
215 | 213 | 2 | 1 | % | |||||
| Data transmission & Internet |
416 | 392 | 24 | 6 | % | |||||
| Cellular Telephony |
1.733 | 1.163 | 570 | 49 | % | |||||
| Telecom Personal |
1.567 | 1.003 | 564 | 56 | % | |||||
| Monthly fee and measured service |
337 | 251 | 86 | 34 | % | |||||
| Pre-paid card |
353 | 246 | 107 | 43 | % | |||||
| Calling Party Pays |
368 | 317 | 51 | 16 | % | |||||
| TLRD * |
147 | 58 | 89 | 153 | % | |||||
| Handset sales and accesories |
135 | 15 | 120 | 800 | % | |||||
| Others |
227 | 116 | 111 | 96 | % | |||||
| Núcleo |
166 | 160 | 6 | 4 | % | |||||
| Monthly fee and measured service |
36 | 37 | (1 | ) | -3 | % | ||||
| Pre-paid card |
60 | 39 | 21 | 54 | % | |||||
| Calling Party Pays |
38 | 52 | (14 | ) | -27 | % | ||||
| TLRD * |
17 | 17 | — | 0 | % | |||||
| Handset sales and accesories |
3 | 1 | 2 | 200 | % | |||||
| Others |
12 | 14 | (2 | ) | -14 | % | ||||
| Telephone Directories (Publicom) |
43 | 34 | 9 | 26 | % | |||||
| TOTAL NET REVENUES |
4.494 | 3.753 | 741 | 20 | % | |||||
Consolidated Revenues Breakdown
Three -Month Comparison
| Dec-31 |
||||||||||
| 2004 |
2003 |
D $ |
D % |
|||||||
| Fixed Telephony |
555 | 508 | 47 | 9 | % | |||||
| Measured service |
||||||||||
| Local |
141 | 132 | 9 | 7 | % | |||||
| DLD |
119 | 112 | 7 | 6 | % | |||||
| Monthly charges |
164 | 154 | 10 | 6 | % | |||||
| Public telephones |
42 | 42 | — | 0 | % | |||||
| Interconnection |
60 | 45 | 15 | 33 | % | |||||
| Others |
29 | 23 | 6 | 26 | % | |||||
| International Telephony |
57 | 57 | — | 0 | % | |||||
| Data transmission & Internet |
108 | 101 | 7 | 7 | % | |||||
| Cellular Telephony |
528 | 346 | 182 | 53 | % | |||||
| Telecom Personal |
483 | 297 | 186 | 63 | % | |||||
| Monthly fee and measured service |
107 | 66 | 41 | 62 | % | |||||
| Pre-paid card |
105 | 69 | 36 | 52 | % | |||||
| Calling Party Pays |
98 | 90 | 8 | 9 | % | |||||
| TLRD * |
49 | 24 | 25 | 104 | % | |||||
| Handset sales and accesories |
45 | 11 | 34 | 309 | % | |||||
| Others |
79 | 37 | 42 | 114 | % | |||||
| Núcleo |
45 | 49 | (4 | ) | -8 | % | ||||
| Monthly fee and measured service |
10 | 11 | (1 | ) | -9 | % | ||||
| Pre-paid card |
17 | 13 | 4 | 31 | % | |||||
| Calling Party Pays |
7 | 15 | (8 | ) | -53 | % | ||||
| TLRD * |
5 | 6 | (1 | ) | -17 | % | ||||
| Handset sales and accesories |
2 | 1 | 1 | 100 | % | |||||
| Others |
4 | 3 | 1 | 33 | % | |||||
| Telephone Directories (Publicom) |
35 | 30 | 5 | 17 | % | |||||
| TOTAL NET REVENUES |
1.283 | 1.042 | 241 | 23 | % | |||||
| * | Charges for the temination of calls of the cellular operators. |
13
| 6- | Consolidated Income Statement by Activities |
Twelve-month period - FY 2004 (01/01/04 - 12/31/04)
(In million of Argentine pesos)
| Activities |
Variation vs 12M03 |
|||||||||||||||||
| Fixed Telephony |
Cellular Telephony |
Publishing Directories |
Consolidated Activities |
D $ |
D % |
|||||||||||||
| NET REVENUES |
2.718 | 1.733 | 43 | 4.494 | 741 | 20 | % | |||||||||||
| Salaries and social security contributions |
(491 | ) | (90 | ) | (12 | ) | (593 | ) | (87 | ) | 17 | % | ||||||
| Taxes |
(148 | ) | (152 | ) | (1 | ) | (301 | ) | (45 | ) | 18 | % | ||||||
| Materials and supplies |
(184 | ) | (34 | ) | (15 | ) | (233 | ) | (69 | ) | 42 | % | ||||||
| Allowance for doubtful accounts |
8 | (12 | ) | (1 | ) | (5 | ) | 6 | -55 | % | ||||||||
| Settlement charges |
(82 | ) | — | — | (82 | ) | (6 | ) | 8 | % | ||||||||
| Interconnection cost |
(135 | ) | — | — | (135 | ) | 1 | -1 | % | |||||||||
| Lease of lines and circuits |
(34 | ) | (4 | ) | — | (38 | ) | — | 0 | % | ||||||||
| Service fees |
(55 | ) | (20 | ) | (1 | ) | (76 | ) | 20 | -21 | % | |||||||
| Advertising |
(27 | ) | (64 | ) | (2 | ) | (93 | ) | (49 | ) | 111 | % | ||||||
| Sales commissions |
(18 | ) | (159 | ) | — | (177 | ) | (81 | ) | 84 | % | |||||||
| Cost of cellular handsets |
— | (237 | ) | — | (237 | ) | (215 | ) | 66 | % | ||||||||
| Others |
(171 | ) | (306 | ) | (1 | ) | (478 | ) | (154 | ) | 48 | % | ||||||
| Operating (Loss)/Profit before D&A |
1.381 | 655 | 10 | 2.046 | 62 | 3 | % | |||||||||||
| Operating (Loss)/Profit before D&A Margin |
51 | % | 38 | % | 23 | % | 46 | % | (0 | ) | -14 | % | ||||||
| Depreciation of fixed assets |
(1.233 | ) | (316 | ) | (3 | ) | (1.552 | ) | 216 | -12 | % | |||||||
| Amortization of intangible assets |
(48 | ) | (45 | ) | (1 | ) | (94 | ) | 15 | -14 | % | |||||||
| OPERATING RESULTS |
100 | 294 | 6 | 400 | 293 | 273 | % | |||||||||||
| EQUITY INCOME FROM RELATED COMPANIES |
— | — | (2 | ) | (2 | ) | (4 | ) | -200 | % | ||||||||
| Interest on assets |
213 | 6 | 1 | 220 | 171 | 349 | % | |||||||||||
| Interest on liabilities |
(1.201 | ) | (190 | ) | — | (1.391 | ) | (1.390 | ) | 139000 | % | |||||||
| FINANCIAL AND HOLDING INCOME |
(988 | ) | (184 | ) | 1 | (1.171 | ) | (1.219 | ) | -2540 | % | |||||||
| DEBT RESTRUCTURING INCOME |
(21 | ) | 230 | — | 209 | (167 | ) | -44 | % | |||||||||
| OTHER INCOMES AND EXPENSES |
(67 | ) | (11 | ) | (1 | ) | (79 | ) | 89 | -53 | % | |||||||
| INCOME FROM ORDINARY OPERATIONS |
(976 | ) | 329 | 4 | (643 | ) | (1.008 | ) | -276 | % | ||||||||
| Taxes on income |
— | (24 | ) | (2 | ) | (26 | ) | (33 | ) | -471 | % | |||||||
| Minority interest |
— | 3 | — | 3 | 24 | -114 | % | |||||||||||
| NET (LOSS)/INCOME |
(976 | ) | 308 | 2 | (666 | ) | (1.017 | ) | -290 | % | ||||||||
Consolidated Income Statement by Activities
Twelve-month period FY 2003 (01/01/03 - 12/31/03)
(In million of Argentine pesos)
| Activities |
||||||||||||
| Fixed Telephony |
Cellular Telephony |
Publishing Directories |
Consolidated Activities |
|||||||||
| NET REVENUES |
2.556 | 1.163 | 34 | 3.753 | ||||||||
| Salaries and social security contributions |
(424 | ) | (74 | ) | (8 | ) | (506 | ) | ||||
| Taxes |
(150 | ) | (106 | ) | — | (256 | ) | |||||
| Materials and supplies |
(117 | ) | (33 | ) | (14 | ) | (164 | ) | ||||
| Allowance for doubtful accounts |
3 | (10 | ) | (4 | ) | (11 | ) | |||||
| Settlement charges |
(76 | ) | — | — | (76 | ) | ||||||
| Interconnection cost |
(136 | ) | — | — | (136 | ) | ||||||
| Lease of lines and circuits |
(29 | ) | (9 | ) | — | (38 | ) | |||||
| Service fees |
(81 | ) | (13 | ) | (2 | ) | (96 | ) | ||||
| Advertising |
(23 | ) | (20 | ) | (1 | ) | (44 | ) | ||||
| Sales commissions |
(21 | ) | (75 | ) | — | (96 | ) | |||||
| Cost of cellular handsets |
— | (22 | ) | — | (22 | ) | ||||||
| Others |
(138 | ) | (184 | ) | (2 | ) | (324 | ) | ||||
| Operating (Loss)/Profit before D&A |
1.364 | 617 | 3 | 1.984 | ||||||||
| Operating (Loss)/Profit before D&A Margin |
53 | % | 53 | % | 9 | % | 53 | % | ||||
| Depreciation of fixed assets |
(1.436 | ) | (327 | ) | (5 | ) | (1.768 | ) | ||||
| Amortization of intangible assets |
(63 | ) | (46 | ) | — | (109 | ) | |||||
| OPERATING RESULTS |
(135 | ) | 244 | (2 | ) | 107 | ||||||
| EQUITY INCOME FROM RELATED COMPANIES |
— | — | 2 | 2 | ||||||||
| Interest on assets |
72 | (33 | ) | 10 | 49 | |||||||
| Interest on liabilities |
(204 | ) | 201 | 2 | (1 | ) | ||||||
| FINANCIAL AND HOLDING INCOME |
(132 | ) | 168 | 12 | 48 | |||||||
| DEBT RESTRUCTURING INCOME |
280 | 90 | 6 | 376 | ||||||||
| OTHER INCOMES AND EXPENSES |
(121 | ) | (37 | ) | (10 | ) | (168 | ) | ||||
| INCOME FROM ORDINARY OPERATIONS |
(108 | ) | 465 | 8 | 365 | |||||||
| Taxes on income |
— | 11 | (4 | ) | 7 | |||||||
| Minority interest |
— | (21 | ) | — | (21 | ) | ||||||
| NET (LOSS)/INCOME (LOSS)/INCOME |
(108 | ) | 455 | 4 | 351 | |||||||
14
| 7- | Consolidated Income Statement by Activities |
Three-month period FY 2004 (09/30/04 - 12/31/04)
(In million of Argentine pesos)
| Activities |
Variación vs 4Q03 |
|||||||||||||||||
| Fixed Telephony |
Cellular Telephony |
Publishing Directories |
Consolidated Activities |
D $ |
D % |
|||||||||||||
| NET REVENUES |
720 | 528 | 35 | 1.283 | 241 | 23 | % | |||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||||
| Salaries and social security contributions |
(128 | ) | (26 | ) | (5 | ) | (159 | ) | (16 | ) | 11 | % | ||||||
| Taxes |
(42 | ) | (43 | ) | — | (85 | ) | (18 | ) | 27 | % | |||||||
| Materials and supplies |
(53 | ) | (11 | ) | (13 | ) | (77 | ) | (21 | ) | 38 | % | ||||||
| Allowance for doubtful accounts |
— | (3 | ) | (1 | ) | (4 | ) | (12 | ) | -150 | % | |||||||
| Settlement charges |
(22 | ) | — | — | (22 | ) | (3 | ) | 16 | % | ||||||||
| Interconnection cost |
(34 | ) | — | — | (34 | ) | 2 | -6 | % | |||||||||
| Lease of lines and circuits |
(9 | ) | (2 | ) | — | (11 | ) | (9 | ) | 450 | % | |||||||
| Service fees |
(14 | ) | (7 | ) | — | (21 | ) | — | 0 | % | ||||||||
| Advertising |
(8 | ) | (21 | ) | — | (29 | ) | (1 | ) | 4 | % | |||||||
| Sales commissions |
(4 | ) | (51 | ) | — | (55 | ) | (27 | ) | 96 | % | |||||||
| Cost of cellular handsets |
— | (87 | ) | — | (87 | ) | 9 | -9 | % | |||||||||
| Others |
(41 | ) | (93 | ) | (1 | ) | (135 | ) | (39 | ) | 41 | % | ||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||||
| Operating (Loss)/Profit before D&A |
365 | 184 | 15 | 564 | 27 | 5 | % | |||||||||||
| Operating (Loss)/Profit before D&A Margin |
0% | -1% | 86% | -1% | (1 | ) | -101 | % | ||||||||||
| Depreciation of fixed assets |
(275 | ) | (82 | ) | (1 | ) | (358 | ) | 68 | -16 | % | |||||||
| Amortization of intangible assets |
(2 | ) | (12 | ) | — | (14 | ) | 14 | -50 | % | ||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||||
| OPERATING RESULTS |
88 | 90 | 14 | 192 | 109 | 131 | % | |||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||||
| EQUITY INCOME FROM RELATED COMPANIES |
(4 | ) | — | (1 | ) | (5 | ) | (5 | ) | — | ||||||||
| |
|
|
| |||||||||||||||
| Interest on assets |
176 | (12 | ) | — | 164 | 76 | 86 | % | ||||||||||
| Interest on liabilities |
(679 | ) | (34 | ) | — | (713 | ) | (144 | ) | 25 | % | |||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||||
| FINANCIAL AND HOLDING INCOME |
(503 | ) | (46 | ) | — | (549 | ) | (68 | ) | 14 | % | |||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||||
| DEBT RESTRUCTURING INCOME |
(21 | ) | 230 | — | 209 | 208 | 20800 | % | ||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||||
| OTHER INCOMES AND EXPENSES |
(6 | ) | — | — | (6 | ) | 24 | -80 | % | |||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||||
| INCOME FROM ORDINARY OPERATIONS |
(446 | ) | 274 | 13 | (159 | ) | 268 | -63 | % | |||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||||
| Taxes on income |
— | (12 | ) | (5 | ) | (17 | ) | (24 | ) | -343 | % | |||||||
| Minority interest |
— | 1 | — | 1 | 9 | -113 | % | |||||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||||
| NET (LOSS)/INCOME |
(446 | ) | 263 | 8 | (175 | ) | 253 | -59 | % | |||||||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||||
Consolidated Income Statement by Activities
Three-month period FY 2003 (09/30/04 - 12/30/04)
(In million of Argentine pesos )
| Activities |
||||||||||||
| Fixed Telephony |
Cellular Telephony |
Publishing Directories |
Consolidated Activities |
|||||||||
| NET REVENUES |
666 | 346 | 30 | 1.042 | ||||||||
| |
|
|
|
|
|
|
| |||||
| Salaries and social security contributions |
(120 | ) | (20 | ) | (3 | ) | (143 | ) | ||||
| Taxes |
(38 | ) | (29 | ) | — | (67 | ) | |||||
| Materials and supplies |
(34 | ) | (10 | ) | (12 | ) | (56 | ) | ||||
| Allowance for doubtful accounts |
7 | 1 | — | 8 | ||||||||
| Settlement charges |
(19 | ) | — | — | (19 | ) | ||||||
| Interconnection cost |
(36 | ) | — | — | (36 | ) | ||||||
| Lease of lines and circuits |
(7 | ) | 5 | — | (2 | ) | ||||||
| Service fees |
(16 | ) | (4 | ) | (1 | ) | (21 | ) | ||||
| Advertising |
(14 | ) | (13 | ) | (1 | ) | (28 | ) | ||||
| Sales commissions |
(4 | ) | (24 | ) | — | (28 | ) | |||||
| Cost of cellular handsets |
— | (17 | ) | — | (17 | ) | ||||||
| Others |
(35 | ) | (60 | ) | (1 | ) | (96 | ) | ||||
| |
|
|
|
|
|
|
| |||||
| Operating (Loss)/Profit before D&A |
350 | 175 | 12 | 537 | ||||||||
| Operating (Loss)/Profit before D&A Margin |
53% | 51% | 40% | 52% | ||||||||
| Depreciation of fixed assets |
(342 | ) | (82 | ) | (2 | ) | (426 | ) | ||||
| Amortization of intangible assets |
(16 | ) | (12 | ) | — | (28 | ) | |||||
| |
|
|
|
|
|
|
| |||||
| OPERATING RESULTS |
(8 | ) | 81 | 10 | 83 | |||||||
| |
|
|
|
|
|
|
| |||||
| Interest on assets |
91 | (3 | ) | — | 88 | |||||||
| Interest on liabilities |
(546 | ) | (23 | ) | — | (569 | ) | |||||
| |
|
|
|
|
|
|
| |||||
| FINANCIAL AND HOLDING INCOME |
(455 | ) | (26 | ) | — | (481 | ) | |||||
| |
|
|
|
|
|
|
| |||||
| DEBT RESTRUCTURING INCOME |
— | — | 1 | 1 | ||||||||
| |
|
|
|
|
|
|
| |||||
| OTHER INCOMES AND EXPENSES |
(33 | ) | 3 | — | (30 | ) | ||||||
| |
|
|
|
|
|
|
| |||||
| INCOME FROM ORDINARY OPERATIONS |
(496 | ) | 58 | 11 | (427 | ) | ||||||
| |
|
|
|
|
|
|
| |||||
| Taxes on income |
— | 11 | (4 | ) | 7 | |||||||
| Minority interest |
— | (8 | ) | — | (8 | ) | ||||||
| |
|
|
|
|
|
|
| |||||
| NET (LOSS)/INCOME |
(496 | ) | 61 | 7 | (428 | ) | ||||||
| |
|
|
|
|
|
|
| |||||
15
| 8- | Ratios |
| 12/31/2004 |
12/31/2003 | ||||
| Liquidity |
0.4 | 0.3 | |||
| Consolidated Financial Indebtedness (*) |
13.9 | 6.5 | |||
| Total Consolidated Indebtedness |
22.1 | 9.2 | |||
| Return on equity (**) |
(0.6 | ) | 0.4 |
| (*) | Financial indebtedness = (Loans - Cash, equiv. & Investments) / Shareholders’ Equity. |
| (**) | Return on equity = Profit from ordinary operations / (Shareholders’ Equity - net income for the period). |
| 9- | Statistical Data |
| FIXED TELEPHONY |
||||||||||||||
| 31-Dic-04 |
31-Dic-03 |
|||||||||||||
| TELECOM |
Acumul. (1) |
12m |
3m |
Acumul. (1) |
12m |
3m |
||||||||
| Installed lines |
3.803.006 | 2.921 | 2.334 | 3.800.085 | (2.379 | ) | (519 | ) | ||||||
| Lines in service (1) |
3.790.298 | 134.439 | 40.334 | 3.655.859 | 65.575 | 33.110 | ||||||||
| Customer lines |
3.484.394 | 123.053 | 31.368 | 3.361.341 | 67.389 | 33.827 | ||||||||
| Public telephony lines |
83.847 | 3.720 | 561 | 80.127 | 315 | 681 | ||||||||
| Digitalization (%) |
100 | 0 | 100 | 100 | 0 | 0 | ||||||||
| Fixed lines in service per 100 inhabitants (northern region) |
20,1 | 1 | 0 | 19,6 | 0,2 | 0,2 | ||||||||
| Investment in fixed assets (1) |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||
| (1) | Cumulative since the start of activities. |
| (1) | Includes direct inward dialing numbers connected to digital trunk lines. |
16
TELECOM ARGENTINA S.A.
Unconsolidated Information
TWELVE MONTH PERIOD AND FOUR QUARTER- FISCAL YEAR 2004.
(In millions of Argentine pesos)
| 10- |
Balance Sheet
|
|||||||||||
| Dec-31 |
Dec-31 |
|||||||||||
| 2004 |
2003 |
D $ |
D% |
|||||||||
| Cash, equivalents and investments |
3.578 | 2.028 | 1.550 | 76 | % | |||||||
| Trade receivables |
327 | 317 | 10 | 3 | % | |||||||
| Other current assets |
59 | 119 | (60 | ) | -50 | % | ||||||
| TOTAL CURRENT ASSETS |
3.964 | 2.464 | 1.500 | 61 | % | |||||||
| Fixed & Intangible assets |
5.469 | 6.552 | (1.083 | ) | -17 | % | ||||||
| Investments |
1.068 | 874 | 194 | |||||||||
| Other non-current assets |
143 | 106 | 37 | 35 | % | |||||||
| TOTAL NON-CURRENT ASSETS |
6.680 | 7.532 | (852 | ) | -11 | % | ||||||
| TOTAL ASSETS |
10.644 | 9.996 | 648 | 6 | % | |||||||
| Accounts payable |
315 | 243 | 72 | 30 | % | |||||||
| Loans |
9.418 | 8.206 | 1.212 | 15 | % | |||||||
| Reserves |
11 | 10 | 1 | 10 | % | |||||||
| Other current liabilities |
151 | 166 | (15 | ) | -9 | % | ||||||
| TOTAL CURRENT LIABILITIES |
9.895 | 8.625 | 1.270 | 15 | % | |||||||
| Accounts payable |
7 | — | 7 | — | ||||||||
| Compensation and social benefits payable |
33 | 30 | 3 | 10 | % | |||||||
| Others liabilities |
64 | 34 | 30 | 88 | % | |||||||
| Reserves |
143 | 139 | 4 | 3 | % | |||||||
| TOTAL NON-CURRENT LIABILITIES |
247 | 203 | 44 | 22 | % | |||||||
| TOTAL LIABILITIES |
10.142 | 8.828 | 1.314 | 15 | % | |||||||
| Shareholders’ equity |
502 | 1.168 | (666 | ) | -57 | % | ||||||
| TOTAL LIABILITIES AND EQUITY |
10.644 | 9.996 | 648 | 6 | % | |||||||
| 11- |
Income Statement Twelve-Month Comparison
|
|||||||||||||
| 31-Dec |
||||||||||||||
| 2004 |
2003 |
D $ |
D % |
|||||||||||
| Net revenues |
2.876 | 2.672 | 204 | 8 | % | |||||||||
| Cost of services provided |
(1.911 | ) | (1.973 | ) | 62 | 3 | % | |||||||
| GROSS PROFIT |
965 | 699 | 266 | 38 | % | |||||||||
| Administrative expenses |
(148 | ) | (136 | ) | (12 | ) | -9 | % | ||||||
| Selling expenses |
(556 | ) | (583 | ) | 27 | 5 | % | |||||||
| OPERATING (LOSS)/PROFIT |
261 | (20 | ) | 281 | 1405 | % | ||||||||
| Equity income from related companies |
173 | 334 | (161 | ) | -48 | % | ||||||||
| Net financial & holding results |
(1.016 | ) | (125 | ) | (891 | ) | -713 | % | ||||||
| Debt Restructuring Results |
(21 | ) | 280 | (301 | ) | -108 | % | |||||||
| Other incomes & expenses |
(63 | ) | (118 | ) | 55 | 47 | % | |||||||
| RESULTS FROM ORDINARY OPERATIONS |
(666 | ) | 351 | (1.017 | ) | -290 | % | |||||||
| Taxes on income |
— | — | — | — | ||||||||||
| NET (LOSS)/INCOME |
(666 | ) | 351 | (1.017 | ) | -290 | % | |||||||
| Operating (Loss)/Profit before D&A |
1.543 | 1.483 | 60 | 4 | % | |||||||||
| As a % of Net Revenues |
54 | % | 56 | % | ||||||||||
| Income Statement Three-Month Comparison
|
||||||||||||||
| 31-Dec |
||||||||||||||
| 2004 |
2003 |
D $ |
D % |
|||||||||||
| Net revenues |
771 | 697 | 74 | 11 | % | |||||||||
| Cost of services provided |
(466 | ) | (487 | ) | 21 | 4 | % | |||||||
| GROSS PROFIT |
305 | 210 | 95 | 45 | % | |||||||||
| Administrative expenses |
(37 | ) | (35 | ) | (2 | ) | -6 | % | ||||||
| Selling expenses |
(127 | ) | (152 | ) | 25 | 16 | % | |||||||
| OPERATING (LOSS)/PROFIT |
141 | 23 | 118 | 513 | % | |||||||||
| Equity income from related companies |
243 | 36 | 207 | 575 | % | |||||||||
| Net financial & holding results |
(533 | ) | (454 | ) | (79 | ) | -17 | % | ||||||
| Debt Restructuring Results |
(21 | ) | — | (21 | ) | 0 | % | |||||||
| Other incomes & expenses |
(5 | ) | (33 | ) | 28 | 85 | % | |||||||
| RESULTS FROM ORDINARY OPERATIONS |
(175 | ) | (428 | ) | 253 | 59 | % | |||||||
| Taxes on income |
— | — | — | — | ||||||||||
| NET (LOSS)/INCOME |
(175 | ) | (428 | ) | 253 | -59 | % | |||||||
| Operating (Loss)/Profit before D&A |
419 | 385 | 34 | 9 | % | |||||||||
| As a % of Net Revenues |
54 | % | 55 | % | ||||||||||
17
TELECOM PERSONAL S.A.
Unconsolidated Information
TWELVE MONTH PERIOD AND FOUR QUARTER- FISCAL YEAR 2004.
(In millions of Argentine pesos)
| 12- | Balance Sheet |
| Dec-31 |
Dec-31 |
|||||||||
| 2004 |
2003 |
D $ |
D % |
|||||||
| Cash, equivalents and investments |
71 | 452 | (381 | ) | -84 | % | ||||
| Trade receivables |
227 | 173 | 54 | 31 | % | |||||
| Other current assets |
104 | 41 | 63 | 154 | % | |||||
| TOTAL CURRENT ASSETS |
402 | 666 | (264 | ) | -40 | % | ||||
| Trade receivables |
101 | 77 | 24 | 31 | % | |||||
| Fixed & Intangible assets |
1.891 | 1.942 | (51 | ) | -3 | % | ||||
| Other non-current assets |
76 | 68 | 8 | 12 | % | |||||
| TOTAL NON-CURRENT ASSETS |
2.068 | 2.087 | (19 | ) | -1 | % | ||||
| TOTAL ASSETS |
2.470 | 2.753 | (283 | ) | -10 | % | ||||
| Accounts payable |
256 | 212 | 44 | 21 | % | |||||
| Loans |
14 | 1.681 | (1.667 | ) | -99 | % | ||||
| Reserves |
17 | 3 | 14 | 467 | % | |||||
| Other current liabilities |
58 | 49 | 9 | 18 | % | |||||
| TOTAL CURRENT LIABILITIES |
345 | 1.945 | (1.600 | ) | -82 | % | ||||
| Reserves |
65 | 64 | 1 | 2 | % | |||||
| Loans |
1.168 | 59 | 1.109 | 1,880 | % | |||||
| Other non-current liabilities |
12 | 4 | 8 | 200 | % | |||||
| TOTAL NON-CURRENT LIABILITIES |
1.245 | 127 | 1.118 | 880 | % | |||||
| TOTAL LIABILITIES |
1.590 | 2.072 | (482 | ) | -23 | % | ||||
| Temporary differences from transaltion |
24 | 21 | 3 | 14 | % | |||||
| Shareholders’ equity |
861 | 660 | 201 | 30 | % | |||||
| TOTAL LIABILITIES AND EQUITY |
2.475 | 2.753 | (278 | ) | -10 | % | ||||
| 13- | Income Statement |
Twelve-Month Comparison
| 31-Dec |
||||||||||||
| 2004 |
2003 |
D $ |
D % |
|||||||||
| Net revenues |
1.580 | 1.015 | 565 | 56 | % | |||||||
| Cost of services provided |
(1.055 | ) | (656 | ) | (399 | ) | -61 | % | ||||
| GROSS PROFIT |
525 | 359 | 166 | 46 | % | |||||||
| Administrative expenses |
(66 | ) | (57 | ) | (9 | ) | -16 | % | ||||
| Selling expenses |
(318 | ) | (170 | ) | (148 | ) | -87 | % | ||||
| OPERATING (LOSS)/PROFIT |
141 | 132 | 9 | 7 | % | |||||||
| Equity income from related companies |
(7 | ) | 43 | (50 | ) | -116 | % | |||||
| Financial & holding results |
(169 | ) | 127 | (296 | ) | -233 | % | |||||
| Debt Restructuring Results |
253 | 90 | 163 | 181 | % | |||||||
| Other incomes & expenses |
(11 | ) | (37 | ) | 26 | 70 | % | |||||
| RESULTS FROM ORDINARY OPERATIONS |
207 | 355 | (148 | ) | -42 | % | ||||||
| Taxes on income |
(6 | ) | — | (6 | ) | — | ||||||
| NET (LOSS)/INCOME |
201 | 355 | (154 | ) | -43 | % | ||||||
| Operating (Loss)/Profit before D&A |
420 | 424 | (4 | ) | -1 | % | ||||||
| As a % of Net Revenues |
27 | % | 42 | % | ||||||||
Income Statement
Three -Month Comparison
| Dec-31 |
||||||||||||
| 2004 |
2003 |
D $ |
D % |
|||||||||
| Net revenues |
486 | 301 | 185 | 61 | % | |||||||
| Cost of services provided |
(332 | ) | (207 | ) | (125 | ) | -60 | % | ||||
| GROSS PROFIT |
154 | 94 | 60 | 64 | % | |||||||
| Administrative expenses |
(14 | ) | 4 | (18 | ) | -450 | % | |||||
| Selling expenses |
(100 | ) | (46 | ) | (54 | ) | -117 | % | ||||
| OPERATING (LOSS)/PROFIT |
40 | 52 | (12 | ) | -23 | % | ||||||
| Equity income from related companies |
(2 | ) | 16 | (18 | ) | -113 | % | |||||
| Financial & holding results |
(39 | ) | (35 | ) | (4 | ) | -11 | % | ||||
| Debt Restructuring Results |
253 | — | 253 | 0 | % | |||||||
| Other incomes & expenses |
— | 3 | (3 | ) | -100 | % | ||||||
| RESULTS FROM ORDINARY OPERATIONS |
252 | 36 | 216 | 600 | % | |||||||
| Taxes on income |
(6 | ) | — | (6 | ) | — | ||||||
| NET (LOSS)/INCOME |
246 | 36 | 210 | 583 | % | |||||||
| Operating (Loss)/Profit before D&A |
114 | 123 | (9 | ) | -7 | % | ||||||
| As a % of Net Revenues |
23 | % | 41 | % | ||||||||
18
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Telecom Argentina S.A. | ||||||
| Date: |
March 9, 2005 |
By: |
/s/ Carlos Alberto Felices | |||
| Name: |
Carlos Alberto Felices | |||||
| Title: |
Chief Executive Officer | |||||