Telecom posts net loss, despite rising revenues and subscribers

11 Mar 2005

Telecom Argentina posted total revenues for 2004 of ARS4.49 billion (USD1.53 billion), up from ARS3.74 billion in 2003. Telecom’s fixed line turnover rose 6% to ARS2.72 billion but the company attribute the bulk of the sales jump to increasing demand for mobile services offered via its subsidiary Personal, which posted revenues of ARS1.57 billion (up 56%). Despite the healthy sales figures, the group registered a net loss for the year of ARS666 million (USD226 million) compared to a profit of ARS351 million the previous year, due in part to the ARS428 million invested in 2004 (37% in fixed line services, 63% mobile).

Telecom’s mainlines in service increased by 120,000 to stand at 3.48 million, whilst its number of ADSL lines rose 79% to 124,700. ISP division Arnet ended the year with 81,200 ADSL users, up 80% in twelve months; dial-up subscribers were down 2% at 152,000. Personal finished 2004 with 3.83 million cellular subscribers, up 1.23 million in the year, claiming 26% post-paid clients, compared to 19% at the end of 2003.