SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of May 2015
Commission File Number: 001-13464
Telecom Argentina S.A.
(Translation of registrants 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.
Item |
||||||
1. |
Press Release dated May 4, 2015 titled Telecom Argentina S.A. announces consolidated first quarter results for fiscal year 2015 (1Q15) | 1 |
FOR IMMEDIATE RELEASE
Market Cap P$49.2 billion
May 4th, 2015
Contacts: |
Pedro Insussarry |
Solange Barthe Dennin |
(54 11) 4968-3743/3752 |
Telecom Argentina S.A.
announces consolidated first quarter results for fiscal year 2015 (1Q15)*
| Consolidated Revenues amounted to P$8,872 million (+18.8% vs. 1Q14); Fixed Internet +34.0% vs. 1Q14; Fixed Data +27.6% vs. 1Q14; and Mobile business in Argentina +18.5% vs. 1Q14. |
| Mobile subscribers in Argentina: 19.3 million in 1Q15. |
| Mobile Value Added Services in Argentina (Internet and Data): +24.8% vs. 1Q14; 58.1% of Service Revenues. |
| Mobile ARPU in Argentina increased to P$86.2 per month in 1Q15 (+26.1% vs. 1Q14). |
| ADSL ARPU increased to P$178.5 per month in 1Q15 (+29.4% vs. 1Q14); monthly churn reached 1.3% in 1Q15. |
| Consolidated Operating costs -including D&A and Results on disposal of PP&E and write-down of PP&E- totaled P$7,199 million (+18.0% vs. 1Q14); Employee benefits expenses +30.4% and Fees for services, maintenance and materials +17.7% vs. 1Q14. |
| Operating Income Before Depreciation and Amortization reached P$2,634 million (+24.7% vs. 1Q14), 29.7% of Consolidated Revenues. |
| Net Income amounted to P$1,041 million (+14.9% vs. 1Q14). Net Income attributable to Telecom Argentina amounted to P$1,028 million (+15.6% vs. 1Q14). |
| Capex amounted to P$864 million in 1Q15. |
| Net Cash Position: P$521 million, a decrease of P$4,559 million vs. 1Q14, after Telecom Argentina´s cash dividend distribution and the 3G/4G spectrum payment occurred in FY14. |
As of March, 31 | ||||||||||||||||
(in million P$, except where noted) | 2015 | 2014 | D $ | D % | ||||||||||||
Consolidated Revenues |
8,872 | 7,466 | 1,406 | 18.8 | % | |||||||||||
Mobile Services |
6,502 | 5,501 | 1,001 | 18.2 | % | |||||||||||
Fixed Services |
2,370 | 1,965 | 405 | 20.6 | % | |||||||||||
Operating Income before D&A |
2,634 | 2,112 | 522 | 24.7 | % | |||||||||||
Operating Income |
1,680 | 1,377 | 303 | 22.0 | % | |||||||||||
Net Income attributable to Telecom Argentina |
1,028 | 889 | 139 | 15.6 | % | |||||||||||
Shareholders equity attributable to Telecom Argentina |
15,446 | 12,806 | 2,640 | 20.6 | % | |||||||||||
Net Financial Position - Cash |
521 | 5,080 | (4,559 | ) | -89.7 | % | ||||||||||
CAPEX |
864 | 1,062 | (198 | ) | -18.6 | % | ||||||||||
Fixed lines in service (in thousand lines) |
4,077 | 4,108 | (31 | ) | -0.8 | % | ||||||||||
Mobile customers (in thousand) |
21,841 | 22,326 | (485 | ) | -2.2 | % | ||||||||||
Personal (Argentina) |
19,332 | 19,913 | (581 | ) | -2.9 | % | ||||||||||
Núcleo (Paraguay) -including Wimax customers- |
2,509 | 2,413 | 96 | 4.0 | % | |||||||||||
Broadband accesses (in thousand) |
1,768 | 1,714 | 54 | 3.2 | % | |||||||||||
Average Billing per user (ARBU) Fixed Telephony / voice (in P$) |
60.5 | 54.6 | 5.9 | 10.8 | % | |||||||||||
Average Revenue per user (ARPU) Mobile Services in Arg. (in P$) |
86.2 | 68.3 | 17.9 | 26.1 | % | |||||||||||
Average Revenue per user (ARPU) ADSL (in P$) |
178.5 | 138.0 | 40.5 | 29.4 | % |
* | Unaudited non financial data |
1 | www.telecom.com.ar |
Buenos Aires, May 4, 2015 - Telecom Argentina (Telecom) - (NYSE: TEO; BASE: TECO2), one of Argentinas leading telecommunications companies, announced today a Net Income of P$1,041 million for the period ended March 31, 2015, or +14.9% when compared to the same period last year. Net income attributable to Telecom Argentina amounted to P$1,028 million (+15.6% vs. 1Q14).
1Q15 | 1Q14 | D $ | D% | |||||||||||||
Consolidated Revenues (MMP$) |
8,872 | 7,466 | 1,406 | 18.8 | % | |||||||||||
Net Income attributable to Telecom (MMP$) |
1,028 | 889 | 139 | 15.6 | % | |||||||||||
Earnings attributable to Telecom per Share (P$) |
1.1 | 0.9 | 0.2 | |||||||||||||
Earnings attributable to Telecom per ADR (P$) |
5.3 | 4.6 | 0.7 | |||||||||||||
Operating Income before D&A * |
29.7 | % | 28.3 | % | ||||||||||||
Operating Income * |
18.9 | % | 18.4 | % | ||||||||||||
Net Income* |
11.7 | % | 12.1 | % |
* | As a percentage of Consolidated Revenues |
Note: As of 1Q15 and 1Q14 , the average of ordinary shares outstanding amounted to 969,159,605.
During 1Q15 Consolidated Revenues increased by 18.8% to P$8,872 million (+P$1,406 million vs. 1Q14), mainly fueled by the Broadband businesses, Fixed Data and Mobile Services. Moreover, Operating Income reached P$1,680 million (+P$303 million or +22.0% vs. 1Q14).
Consolidated Operating Revenues
Mobile Services
During 1Q15 clients amounted to 21.8 million as of the end of March, 2015 vs. 22.3 million as of 1Q14.
Third parties Revenues amounted to P$6,502 million (+18.2% vs. 1Q14) thanks to innovative commercial offers that stimulates value added services (VAS) consumption and are suitable to clients needs and user experience.
Telecom Personal in Argentina
As of March 31, 2015, Personal reached 19.3 million subscribers in Argentina, where postpaid clients represented 32% of the subscriber base.
In 1Q15, third parties Revenues reached P$6,097 million (+P$954 million or +18.5% vs. 1Q14) while Service Revenues (excluding equipment sales) amounted to P$5,216 million (+22.3% vs. 1Q14), with 58.1% corresponding to VAS revenues (vs. 57.0% in 1Q14). VAS revenues amounted to P$3,033 million (+24.8% vs. 1Q14). Moreover, equipment sales reached P$881 million.
During 1Q15 the Average Monthly Revenue per User (ARPU) reached P$86.2 (+26.1% vs. 1Q14) due to the promotion of mobile connectivity through a wide variety of plans, packs and devices that satisfy connectivity needs everywhere, enjoying social networks, apps, gaming, contents and multimedia entertainment services. |
|
2 | www.telecom.com.ar |
Initiatives
During 1Q15, Personal continued with the deployment of the 4G/LTE network, adding coverage in the strategic areas of Buenos Aires, Córdoba, Rosario, Tucumán, Salta, Santa Fe, Pinamar and Mar del Plata. In line with this evolution, commercial offers were presented to encourage those people who have this technology and to promote VAS accesses, enhancing entertainment services and content consumption through Personals Play platform.
During 1Q15, Personal did not charge data traffic over 4G network so customers could experience the new technology. At the same time, Personal Black plans were enriched, providing an extended data plan to fulfill clients that have an intense mobile internet usage needs. 4G customers base surpassed 300 thousand.
Moreover, Personal continued promoting monthly plans, which simplify the mobile service offer allowing customers to monitor its expenditures. Additionally, credit recharges were stimulated to prepaid clients granted them with free additional calls.
Finally, consolidating its brand position associated to music, Personal organized the 3rd edition of the ´Personal Fest Verano´, presenting six important shows in the main summer resorts all over the country, with free access. During this year, the difference was that fans could enjoy the concert on stage and on big screens. Between the three days, ´Personal Fest Verano´ was followed by more than 400 thousand people. In addition, concerts were also available by streaming at Personals website.
Telecom Personal in Paraguay (Núcleo)
As of March 31, 2015, Nucleos subscriber base reached 2.5 million clients (+4.0% vs. 1Q14). Prepaid and postpaid customers represented 81% and 19%, respectively.
Nucleo generated revenues from third parties equivalent to P$405 million during 1Q15 (+13.1% vs. 1Q14 due to an FX effect). VAS revenues amounted to P$209 million (+10.0% vs. 1Q14) representing 54.6% of 1Q15 service revenues (vs. 55.4% in 1Q14).
Fixed Services (Voice, Data & Internet)
During 1Q15, revenues generated by fixed services amounted to P$2,370 million, +20.6% vs. 1Q14; with Internet (+34.0% vs. 1Q14) and Data revenues (+27.6% vs. 1Q14) growing the most in the segment.
Voice
Total service revenues reached P$980 million in 1Q15 (+8.0% vs. 1Q14). A portion of this line of business (mainly monthly charge and measured services), continued to be affected by frozen tariffs of regulated services enforced by the Argentine Government in 2002.
Revenues generated by measured services totaled P$409 million, an increase of P$50 million or +13.9% vs. 1Q14 mainly due to a higher penetration of flat rate packs of local and national long distance calls.
Monthly charges and supplementary services reached P$312 million, an increase of P$17 million or +5.8% vs. 1Q14 due to higher revenues in non-regulated supplementary services. The customer base remained stable at 4.1 million lines in service. |
|
3 | www.telecom.com.ar |
As a result of these increases, the average monthly revenue billed to user (ARBU) reached P$60.5 in 1Q15, +10.8% vs. 1Q14. | ||||
Fixed and mobile interconnection revenues amounted to P$155 million (+4.0% vs. 1Q14). Meanwhile, other revenues totaled P$104 million same level as 1Q14. | ||||
Data and Internet | ||||
Data revenues (services mainly offered to Corporate segment and Government) amounted to P$407 million (+P$88 million or +27.6% vs. 1Q14), strengthening the position of Telecom as an integrated ICT provider. | ||||
During 1Q15, Telecom continued promoting services and convergent offers to the corporate segment through La Nube Argentina, an IT infrastructure with applications (such as 365 Office), professional services and different fixed and mobile connectivity technologies and tools. | ||||
Revenues related to Internet totaled P$973 million (+P$247 million or +34.0% vs. 1Q14), mainly due to a commercial offer with higher speeds, where 10Mb was the most demanded service that represents 19% over the total customer base, in comparison to 8% in 1Q14. This was possible thanks to significant investments executed recently in the access network using FTTx technology that allows taking fiber optic to the closest connection point with the customer. |
| |||
As of March 31, 2015, Telecom reached 1.8 million ADSL accesses (+3.2% vs. 1Q14). These connections represented 43.4% of Telecoms fixed lines in service. In addition, ADSL ARPU reached P$178.5 in 1Q15, +29.4% when compared to 1Q14 and the monthly churn rate maintained at 1.3% in 1Q15. |
||||
During 1Q15, Arnet continued with its integrated offer through new packs of services, with discounts of up to 50% and special benefits; such as: Pack Arnet Total, Pack Arnet Familia, Pack Arnet Hablemos and Pack Arnet Spotify incorporating different VAS to the traditional broadband service including: local and mobile calls, music, video and security kit, suitable to clients needs. Moreover, Arnet strengthened the ultra broadband offer, providing up to 30Mb speed for those clients located in areas with technical availability. |
||||
Consolidated Operating Costs |
||||
Consolidated Operating Costs totaled P$7,199 million in 1Q15, an increase of P$1,100 million, or +18.0% vs. 1Q14 (including Results on disposal of PP&E and write-down of PP&E that resulted in a gain of P$3 million in 1Q15 vs. a gain of P$4 million in 1Q14). This increase is a consequence of higher labor costs and higher fees for services, maintenance and materials. |
||||
4 | www.telecom.com.ar |
5 | www.telecom.com.ar |
On February 19th, 2015, Mr. Oscar Cicchetti notified his resignation as Chief Executive Officer (CEO) of Telecom Argentina Group effective as of March 4th, 2015. On March 2nd, 2015, the Board of Directors accepted his resignation and appointed Mrs. Elisabetta Ripa as his replacement as CEO of the Telecom Argentina Group effective as of the referred date. |
Other Relevant Matters |
On April 13th 2015, Mr. Enrique Garrido notified he renders his resignation as member and Chairman of the Board of Directors of Telecom Argentina. On April 16th, 2015, the Board of Directors accepted Mr. Enrique Garridos resignation as Chairman and member of the Board of Directors of Telecom Argentina, and appointed Mr. Oscar Carlos Cristianci to replace him since then and through the Ordinary and Extraordinary General Shareholders Meeting to be held on June 22nd, 2015 to review the appointment of Mr. Oscar Carlos Cristianci as Director. |
The General Ordinary Shareholders Meeting of Telecom Argentina approved on April, 29th, 2015 a cash dividend payment of P$804,402,472. The amount to be distributed is equivalent to P$0.83 per outstanding share in circulation or P$4.15 per ADR. This payment will be available as from May 11th, 2015. Additionally, the General Ordinary Shareholders Meeting of Telecom Argentina approved the creation of a Reserve for Future Cash Dividends for P$2.9 billion; and the delegation of the authority to the Board of Directors to determine the allocation, depending on the performance of the business, in one or more instances, of an amount up to P$649.3 million of the Reserve for Future Cash Dividends and its distribution to the shareholders as cash dividends, during Fiscal Year 2015. |
*********
7 | www.telecom.com.ar |
Telecom is the parent company of a leading telecommunications group in Argentina, where it offers, either itself or through its controlled subsidiaries local and long distance fixed-line telephony, cellular, 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 governments transfer of the telecommunications system in the northern region of Argentina.
Nortel Inversora S.A. (Nortel), which acquired the majority of the Company from the Argentine government, holds 54.74% of Telecoms issued common stock. Nortel is a holding company whose common stock (approximately 78% of capital stock) is owned by Sofora Telecomunicaciones S.A. Additionally, Nortel capital stock is comprised of preferred shares that are held by minority shareholders.
As of March 31, 2015, Telecom continued to have 984,380,978 shares issued and 969,159,605 shares outstanding. |
For more information, please contact Investor Relations:
Pedro Insussarry | Solange Barthe Dennin | Gustavo Tewel | Ruth Fuhrmann | Antonella Papaleo | ||||
(5411) 4968 3743 | (5411) 4968 3752 | (5411) 4968 3718 | (5411) 4968 4448 | (5411) 4968 6236 |
Voice Mail: (5411) 4968 3628
Fax: (5411) 4968 3616
E-mail: relinver@ta.telecom.com.ar
For information about Telecom Group services, visit:
www.telecom.com.ar
www.personal.com.ar
www.personal.com.py
www.arnet.com.ar
Disclaimer
This document may contain statements that could constitute forward-looking statements, including, but not limited to, the Companys expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; the effects 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 Companys 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 Companys expected results. The risks and uncertainties include, but are not limited to, the impact of emergency laws enacted by the Argentine government that have resulted in the repeal of Argentinas Convertibility law, 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 Companys 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 Companys business or to reflect the occurrence of unanticipated events. Readers are encouraged to consult the Companys Annual Report on 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)
*******
Oscar Carlos Cristianci
Chairman
8 | www.telecom.com.ar |
TELECOM ARGENTINA S.A.
Consolidated information
First Quarter - Fiscal Year 2015
(In million of Argentine pesos)
1- | Consolidated Balance Sheet |
03/31/15 | 12/31/14 | D $ | D % | |||||||||||||
Cash and cash equivalents | 1,266 | 825 | 441 | 53.5 | % | |||||||||||
Investments | 66 | 53 | 13 | 24.5 | % | |||||||||||
Trade receivables | 4,385 | 4,124 | 261 | 6.3 | % | |||||||||||
Other Receivables | 1,377 | 1,391 | (14 | ) | -1.0 | % | ||||||||||
Total current assets | 7,094 | 6,393 | 701 | 11.0 | % | |||||||||||
Financial Investments | 308 | 300 | 8 | 2.7 | % | |||||||||||
Trade receivables | 82 | 143 | (61 | ) | -42.7 | % | ||||||||||
Property, plant and equipment | 13,806 | 13,809 | (3 | ) | 0 | % | ||||||||||
Intangible assets | 5,292 | 5,331 | (39 | ) | -0.7 | % | ||||||||||
Other Receivables | 389 | 341 | 48 | 14.1 | % | |||||||||||
Total non-current assets |
19,877 | 19,924 | (47 | ) | -0.2 | % | ||||||||||
Total Assets |
26,971 | 26,317 | 654 | 2.5 | % | |||||||||||
Trade payables | 4,621 | 6,072 | (1,451 | ) | -23.9 | % | ||||||||||
Deferred revenues | 521 | 507 | 14 | 2.8 | % | |||||||||||
Financial debt | 540 | 179 | 361 | | ||||||||||||
Salaries and social security payables | 965 | 1,022 | (57 | ) | -5.6 | % | ||||||||||
Income tax payables | 573 | 247 | 326 | 132.0 | % | |||||||||||
Other taxes payables | 866 | 824 | 42 | 5.1 | % | |||||||||||
Dividend Payable | 21 | | 21 | | ||||||||||||
Other liabilities | 39 | 47 | (8 | ) | -17.0 | % | ||||||||||
Provisions | 259 | 199 | 60 | 30.2 | % | |||||||||||
Total current liabilities | 8,405 | 9,097 | (692 | ) | -7.6 | % | ||||||||||
Deferred revenues | 466 | 465 | 1 | 0.2 | % | |||||||||||
Financial debt | 579 | 254 | 325 | 128.0 | % | |||||||||||
Salaries and social security payables | 148 | 150 | (2 | ) | -1.3 | % | ||||||||||
Deferred income tax liabilities | 337 | 417 | (80 | ) | -19.2 | % | ||||||||||
Income tax payables | 8 | 9 | (1 | ) | -11.1 | % | ||||||||||
Other liabilities | 84 | 76 | 8 | 10.5 | % | |||||||||||
Provisions | 1,155 | 1,080 | 75 | 6.9 | % | |||||||||||
Total non-current liabilities | 2,777 | 2,451 | 326 | 13.3 | % | |||||||||||
TOTAL LIABILITIES | 11,182 | 11,548 | (366 | ) | -3.2 | % | ||||||||||
Equity attributable to Telecom Argentina (Controlling Company) | 15,446 | 14,418 | 1,028 | 7.1 | % | |||||||||||
Non-controlling interest | 343 | 351 | (8 | ) | -2.3 | % | ||||||||||
TOTAL EQUITY | 15,789 | 14,769 | 1,020 | 6.9 | % | |||||||||||
TOTAL LIABILITIES AND EQUITY | 26,971 | 26,317 | 654 | 2.5 | % |
2- | Consolidated Loans |
03/31/15 | 12/31/14 | D $ | D % | |||||||||||||
Banks loans Nucleo | 41 | 32 | 9 | 28.1 | % | |||||||||||
Bank overdraft Personal | 488 | 140 | 348 | | ||||||||||||
Accrued interest Nucleo | 2 | 6 | (4 | ) | -66.7 | % | ||||||||||
Banks loans Personal | 6 | | 6 | | ||||||||||||
Accrued interest Personal | 3 | 1 | 2 | 200.0 | % | |||||||||||
Total Current Loans | 540 | 179 | 361 | | ||||||||||||
Banks loans Personal | 344 | | 344 | | ||||||||||||
Banks loans Nucleo | 235 | 254 | (19 | ) | -7.5 | % | ||||||||||
Total Non Current Loans | 579 | 254 | 325 | 128.0 | % | |||||||||||
Total Loans | 1,119 | 433 | 686 | 158.4 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents, and Financial Investments | 1,640 | 1,178 | 462 | 39.2 | % | |||||||||||
Net Financial Position- Cash | 521 | 745 | (224 | ) | -30.1 | % | ||||||||||
|
|
|
|
|
|
|
|
9 | www.telecom.com.ar |
TELECOM ARGENTINA S.A.
Consolidated information
First Quarter - Fiscal Year 2015
(In million of Argentine pesos)
3- | Consolidated Income Statements |
03/31/15 | 03/31/14 | D $ | D % | |||||||||||||
Revenues | 8,872 | 7,466 | 1,406 | 18.8 | % | |||||||||||
Other income | 7 | 10 | (3 | ) | -30.0 | % | ||||||||||
Total Revenues & Other Income |
8,879 | 7,476 | 1,403 | 18.8 | % | |||||||||||
Consolidated Operating Costs |
(7,199 | ) | (6,099 | ) | (1,100 | ) | 18.0 | % | ||||||||
Operating income |
1,680 | 1,377 | 303 | 22.0 | % | |||||||||||
Finance results, net |
(89 | ) | (32 | ) | (57 | ) | 178.1 | % | ||||||||
Net income before income tax expense |
1,591 | 1,345 | 246 | 18.3 | % | |||||||||||
Income tax expense |
(550 | ) | (439 | ) | (111 | ) | 25.3 | % | ||||||||
Net income |
1,041 | 906 | 135 | 14.9 | % | |||||||||||
Attributable to: | ||||||||||||||||
Telecom Argentina (Controlling Company) |
1,028 | 889 | 139 | 15.6 | % | |||||||||||
Non-controlling interest |
13 | 17 | (4 | ) | -23.5 | % | ||||||||||
Operating income before D&A | 2,634 | 2,112 | 522 | 24.7 | % | |||||||||||
As % of Revenues | 29.7 | % | 28.3 | % | ||||||||||||
Finance Income and Expenses | 03/31/15 | 03/31/14 | D $ | D % | ||||||||||||
Finance Income | ||||||||||||||||
Interest on time deposits |
| 157 | (157 | ) | -100.0 | % | ||||||||||
Gains on other investments (notes and bonds) |
11 | 43 | (32 | ) | -74.4 | % | ||||||||||
Gains on Mutual Funds |
31 | 36 | (5 | ) | -13.9 | % | ||||||||||
Interest on receivables |
42 | 36 | 6 | 16.7 | % | |||||||||||
Foreign currency exchange gains |
20 | 482 | (462 | ) | -95.9 | % | ||||||||||
Gain on NDF |
| 45 | (45 | ) | -100.0 | % | ||||||||||
Others |
1 | | 1 | | ||||||||||||
Total finance income | 105 | 799 | (694 | ) | -86.9 | % | ||||||||||
Finance expenses | ||||||||||||||||
Interest on financial debt |
(44 | ) | (6 | ) | (38 | ) | | |||||||||
Interest on salaries and social security, other taxes ana accounts payable |
(4 | ) | (9 | ) | 5 | -55.6 | % | |||||||||
Interest on provisions |
(53 | ) | (31 | ) | (22 | ) | 71.0 | % | ||||||||
Present value effect of salaries and social security and other taxes payables and other liabilities |
(1 | ) | (1 | ) | 0 | 0 | % | |||||||||
Foreign currency exchange losses |
(63 | ) | (762 | ) | 699 | -91.7 | % | |||||||||
Losses on NDF |
(22 | ) | (22 | ) | 0 | | ||||||||||
Others |
(7 | ) | | (7 | ) | | ||||||||||
Total finance expenses |
(194 | ) | (831 | ) | 637 | -76.7 | % | |||||||||
|
|
|
|
|
|
|
|
|||||||||
(89 | ) | (32 | ) | (57 | ) | 178.1 | % |
10 | www.telecom.com.ar |
TELECOM ARGENTINA S.A.
Consolidated information
First Quarter - Fiscal Year 2015
(In million of Argentine pesos)
4- | Breakdown of the Income Statements |
03/31/15 | 03/31/14 | D $ | D % | |||||||||||||
REVENUES FROM SERVICES | 7,959 | 6,559 | 1,400 | 21.3 | % | |||||||||||
Fixed Services | 2,360 | 1,952 | 408 | 20.9 | % | |||||||||||
Voice | 980 | 907 | 73 | 8.0 | % | |||||||||||
Retail Voice | 745 | 682 | 63 | 9.2 | % | |||||||||||
Monthly Charges |
312 | 295 | 17 | 5.8 | % | |||||||||||
Measured Services |
409 | 359 | 50 | 13.9 | % | |||||||||||
Others |
24 | 28 | (4 | ) | -14.3 | % | ||||||||||
Wholesale |
235 | 225 | 10 | 4.4 | % | |||||||||||
Interconnection |
155 | 149 | 6 | 4.0 | % | |||||||||||
Others |
80 | 76 | 4 | 5.3 | % | |||||||||||
Data |
407 | 319 | 88 | 27.6 | % | |||||||||||
Internet |
973 | 726 | 247 | 34.0 | % | |||||||||||
Mobiles Sevices |
5,599 | 4,607 | 992 | 21.5 | % | |||||||||||
Telecom Personal |
5,216 | 4,264 | 952 | 22.3 | % | |||||||||||
Voice |
2,183 | 1,833 | 350 | 19.1 | % | |||||||||||
Retail Voice |
1,702 | 1,345 | 357 | 26.5 | % | |||||||||||
Monthly Charges |
954 | 697 | 257 | 36.9 | % | |||||||||||
Measured Services |
535 | 473 | 62 | 13.1 | % | |||||||||||
Roaming |
85 | 95 | (10 | ) | -10.5 | % | ||||||||||
Others |
128 | 80 | 48 | 60.0 | % | |||||||||||
Wholesale |
481 | 488 | (7 | ) | -1.4 | % | ||||||||||
Interconnection (CPP and TLRD) |
392 | 396 | (4 | ) | -1.0 | % | ||||||||||
Roaming |
79 | 82 | (3 | ) | -3.7 | % | ||||||||||
Others |
10 | 10 | 0 | 0 | % | |||||||||||
Data |
1,845 | 1,787 | 58 | 3.2 | % | |||||||||||
Internet |
1,188 | 644 | 544 | 84.5 | % | |||||||||||
Núcleo |
383 | 343 | 40 | 11.7 | % | |||||||||||
Voice |
174 | 153 | 21 | 13.7 | % | |||||||||||
Retail Voice |
148 | 126 | 22 | 17.5 | % | |||||||||||
Monthly Charges |
51 | 49 | 2 | 4.1 | % | |||||||||||
Measured Services |
77 | 68 | 9 | 13.2 | % | |||||||||||
Roaming |
3 | 2 | 1 | 50.0 | % | |||||||||||
Others |
17 | 7 | 10 | 142.9 | % | |||||||||||
Wholesale |
26 | 27 | (1 | ) | -3.7 | % | ||||||||||
Interconnection (CPP and TLRD) |
20 | 26 | (6 | ) | -23.1 | % | ||||||||||
Roaming |
4 | | 4 | | ||||||||||||
Others |
2 | 1 | 1 | 100.0 | % | |||||||||||
Data |
80 | 85 | (5 | ) | -5.9 | % | ||||||||||
Internet |
129 | 105 | 24 | 22.9 | % | |||||||||||
REVENUES FROM EQUIPMENT SALES |
913 | 907 | 6 | 0.7 | % | |||||||||||
Fixed Services |
10 | 13 | (3 | ) | -23.1 | % | ||||||||||
Mobiles Sevices |
903 | 894 | 9 | 1.0 | % | |||||||||||
Equipments (Personal) |
881 | 879 | 2 | 0.2 | % | |||||||||||
Equipments (Núcleo) |
22 | 15 | 7 | 46.7 | % | |||||||||||
REVENUES |
8,872 | 7,466 | 1,406 | 18.8 | % | |||||||||||
OTHER INCOME |
7 | 10 | (3 | ) | -30.0 | % | ||||||||||
Fixed |
4 | 9 | (5 | ) | -55.6 | % | ||||||||||
Mobile |
3 | 1 | 2 | 200.0 | % | |||||||||||
TOTAL REVENUES & OTHER INCOME |
8,879 | 7,476 | 1,403 | 18.8 | % |
11 | www.telecom.com.ar |
TELECOM ARGENTINA S.A.
Consolidated information
First Quarter - Fiscal Year 2015
(In million of Argentine pesos)
5- | Consolidated Income Statements |
03/31/15 | 03/31/14 | D $ | D % | |||||||||||||
Revenues |
8,872 | 7,466 | 1,406 | 18.8 | % | |||||||||||
Other income |
7 | 10 | (3 | ) | -30.0 | % | ||||||||||
Total Revenues & Other Income | 8,879 | 7,476 | 1,403 | 18.8 | % | |||||||||||
Employee benefit expenses and severance payments |
(1,543 | ) | (1,183 | ) | (360 | ) | 30.4 | % | ||||||||
Interconnection costs and other telecommunication charges |
(500 | ) | (515 | ) | 15 | -2.9 | % | |||||||||
Fees for services, maintenance, materials and supplies |
(889 | ) | (755 | ) | (134 | ) | 17.7 | % | ||||||||
Taxes and fees with the Regulatory Authority |
(873 | ) | (755 | ) | (118 | ) | 15.6 | % | ||||||||
Commissions |
(623 | ) | (541 | ) | (82 | ) | 15.2 | % | ||||||||
Cost of equipments and handsets |
(640 | ) | (775 | ) | 135 | -17.4 | % | |||||||||
Advertising |
(191 | ) | (164 | ) | (27 | ) | 16.5 | % | ||||||||
Cost of Value Added Services |
(293 | ) | (191 | ) | (102 | ) | 53.4 | % | ||||||||
Provisions |
(93 | ) | (37 | ) | (56 | ) | 151.4 | % | ||||||||
Bad debt expenses |
(183 | ) | (118 | ) | (65 | ) | 55.1 | % | ||||||||
Other operating expenses |
(417 | ) | (330 | ) | (87 | ) | 26.4 | % | ||||||||
Subtotal Operating costs | (6,245 | ) | (5,364 | ) | (881 | ) | 16.4 | % | ||||||||
Operating income before D&A | 2,634 | 2,112 | 522 | 24.7 | % | |||||||||||
D&A |
(957 | ) | (739 | ) | (218 | ) | 29.5 | % | ||||||||
Results on disposal of PP&E and write-down of PP&E |
3 | 4 | (1 | ) | -25.0 | % | ||||||||||
Operating income | 1,680 | 1,377 | 303 | 22.0 | % | |||||||||||
Finance Income |
105 | 799 | (694 | ) | -86.9 | % | ||||||||||
Finance Expenses |
(194 | ) | (831 | ) | 637 | -76.7 | % | |||||||||
Net income before income tax expense | 1,591 | 1,345 | 246 | 18.3 | % | |||||||||||
Income tax expense |
(550 | ) | (439 | ) | (111 | ) | 25.3 | % | ||||||||
Net Income | 1,041 | 906 | 135 | 14.9 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Attributable to: | ||||||||||||||||
Telecom Argentina (Controlling Company) |
1,028 | 889 | 139 | 15.6 | % | |||||||||||
Non-controlling interest |
13 | 17 | (4 | ) | -23.5 | % |
12 | www.telecom.com.ar |
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: May 6, 2015 | By: | /s/ Oscar Carlos Cristianci | ||||||
Name: | Oscar Carlos Cristianci | |||||||
Title: | Chairman of the Board of Directors |