Business Context and Reporting Period
Company: Telecom Argentina S.A.
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Three months ended March 31, 2026 (1Q26)
Filing Date: May 12, 2026
Accounting Basis: IFRS (IAS 29 for hyperinflationary economies); figures restated to current Argentine pesos as of March 31, 2026.
Telecom Argentina operates as a converged ICT provider in Argentina (Personal Network and TMA Network segments) and maintains operations in Paraguay, Uruguay, Chile, and the USA. The 1Q26 results include the full quarter of the TMA Network segment, whereas 1Q25 included TMA only from the acquisition date (February 24, 2025), limiting direct comparability.
Key Financial Metrics
| Metric (Millions of ARS) | 1Q 2026 | 1Q 2025 | Variation |
|---|---|---|---|
| Revenues | 2,357,686 | 1,806,103 | +30.5% |
| Operating Income | 295,758 | 148,384 | +99.3% |
| Net Income | 642,984 | 123,593 | +420.3% |
| Adjusted EBITDA | 819,491 | 599,312 | +36.7% |
| Operating Cash Flow | 765,305 | 362,739 | +111.0% |
| Cash and Equivalents (End of Period) | 675,480 | 546,798 | +23.5% |
| Total Borrowings | 5,487,590 | 5,949,951 | -7.8% |
| Working Capital (Current Assets - Current Liab.) | (1,568,114) | (2,193,757) | Improved by 625,643 |
Margins: Operating margin improved to 12.5% in 1Q26 from 8.2% in 1Q25. Adjusted EBITDA margin reached 34.8% of revenues.
Material Changes vs. Prior Period
- Revenue Growth: Driven primarily by the full-quarter consolidation of TMA Network (+561.7 billion ARS) and inflation restatement effects. Mobile services in the Personal Network grew 7.9% due to an 18.7% ARPU increase, despite an 8.9% decline in the customer base.
- Profitability Surge: Net income increased significantly due to a massive financial gain of 630.9 billion ARS (vs. 133.9 billion ARS in 1Q25), largely driven by foreign exchange gains on borrowings (706.7 billion ARS) and RECPAM (inflation adjustment) of 85.4 billion ARS.
- One-Time Gain: A gain of 45.6 billion ARS was recognized from the loss of control of Micro Sistemas (fintech subsidiary), which became a joint venture in January 2026 following a strategic alliance with Banco Macro.
- Cost Management: Operating costs (excluding D&A) rose 27.5%, primarily due to TMA consolidation. However, the Personal Network segment saw a 2.9% decrease in operating costs due to lower headcount and reduced service fees.
Guidance, Outlook, and Risks
Management Commentary and Outlook
- Strategic Focus: The company is unifying its brand identity under "Personal" to create a digital ecosystem (Mobile, Fiber, Smarthome, Flow, Pay).
- Infrastructure: Continued investment in 5G expansion (126 new sites in Personal Network; 848 total sites in TMA) and fiber optic deployment.
- Fintech: Strengthening Personal Pay through the new joint venture with Banco Macro to expand financial product offerings.
- Dividends: Shareholders approved a delegation to the Board to distribute up to US$300 million in dividends by December 31, 2026.
Risks and Contingencies
- Regulatory Review (TMA Acquisition): The acquisition of TMA is under antitrust review by the ANC (replacing CNDC). A Preliminary Objection Report was issued in June 2025. While Telecom Argentina has submitted responses and potential commitments, the final outcome remains uncertain. TMA continues to operate independently pending approval.
- Hyperinflation and Currency: Argentina remains a hyperinflationary economy (32.6% annual inflation). Financial results are heavily influenced by currency fluctuations and inflation restatements (RECPAM).
- Working Capital: The company maintains a negative working capital position (-1.6 trillion ARS), relying on spontaneous financing from suppliers and access to capital markets for refinancing.
Investor Verification Checklist
- Regulatory Status: Verify the current status of the ANC antitrust review regarding the TMA acquisition and any potential conditions imposed.
- Micro Sistemas Transition: Confirm the operational impact of the loss of control of Micro Sistemas and the performance of the new joint venture with Banco Macro.
- Debt Refinancing: Monitor the company's ability to refinance debt in domestic and international markets, given the negative working capital structure.
- Inflation Impact: Assess the sustainability of revenue growth and ARPU increases relative to the high inflation environment and potential price regulation.
- Dividend Execution: Track the Board's decision on the timing and method of the approved US$300 million dividend distribution.