Telecom Argentina 1Q net profit up 21%

11 May 2009

Fixed line incumbent Telecom Argentina has announced its fiscal results for the three months ended 31 March 2009, reporting a 21% year-on-year rise in net profit to ARS329 million (USD88.1 million), up from ARS272 million in the first quarter of 2008. Consolidated net revenues for the quarter increased 14% to ARS2.83 billion, while operating profit rose 17% year-on-year to ARS625 million.

The company’s fixed line voice revenues were up 5% to ARS684 million, while the number of fixed lines in service increased 2% to 4.306 million. Data transmission revenues amounted to ARS60 million, an increase of 11% compared to the same period a year earlier, generated by the offering of new solutions to the corporate market. In the DSL segment, related revenues surged 49% to ARS235 million, attributed to the expansion of broadband services, better network coverage, commercial promotions and innovation of the service portfolio. At end-March 2009 the company reported 1.068 million ADSL subscribers, up 27% year-on-year. At the same date, Telecom Argentina’s mobile unit Personal had 13.171 million mobile subscribers, while its wireless operations in Paraguay recorded 1.831 million customers. Net revenues for this segment reached ARS1.85 billion, representing an increase of 14%.

CEO of Telecom Argentina, Franco Bertone, said: ‘During the first quarter, the company has been able to sustain growth in revenues, operational margins and market share despite unfavorable economic conditions and increasing competition. We increased our market share in fixed, mobile and broadband lines both year-on-year and quarter-on-quarter. The revenue growth was mainly due to mobile and broadband sales, where competition is aggressive.’

Argentina, Telecom Argentina (incl. Cablevision)