FX changes effect TA bottom line

11 May 2006

Telecom Argentina, one of Argentina’s two principal fixed line operators, posted a slim first quarter net profit due to currency exchange differences. The company’s quarterly net profit was ARS3 million (USD980,000) compared to ARS279 million in the same quarter of 2005. The company said a weaker peso against the euro and dollar increased its dollar debt load, chipping away at the company’s profit margin. Telecom’s net sales rose 30% in the first three months of the year to ARS1.61 billion, boosted by a 48% rise in wireless revenues. Broadband sales also jumped 79%, the company said.

Argentina, Telecom Argentina (incl. Cablevision)