Telecom Q4 loss widens; full year more positive

10 Mar 2006

Telecom Argentina has reported a net loss of ARS289 million (USD94 million) for the fourth quarter of 2005, widening from the ARS175 million reported in the same period of 2004. Results for the full year, however, were more promising, with the telco reporting a net income of ARS1.4 billion (USD450 million), compared to a net loss of ARS666 million in 2004. The 2005 figure included ARS140 million from the closing of its debt restructuring procedure. Revenues for the year stood at ARS5.7 billion (USD1.8 billion), up from ARS4.5 billion; of the total fixed line services accounted for ARS2.87 billion, mobile services for ARS2.79 billion and internet and data services for ARS467 million.

The telco’s fixed lines in service grew 4% to 3.63 million, having returned to the level reported at the end of 2001, before the country’s economic crisis hit. ADSL lines in service stood at 226,000, up 77%, while dial up internet subscribers dropped18% to 125,000. Mobile customers reached 6.15 million at the end of the year, up 60%, of which 26% were postpaid. The telco said the growth was fuelled by a significant increase in the number of GSM subscribers, which represented 64% of the total customer base at the same date. Mobile ARPU increased 3% to ARS36.

Argentina, Telecom Argentina (incl. Cablevision)