Telecom Argentina H1 net profit up 15%

10 Aug 2009

Argentine fixed line incumbent Telecom Argentina has reported a 15% rise in net profit year-on-year to ARS703 million (USD183.9 million) for the six months ended 30 June 2009. Second quarter net profit reached ARS352 million, an increase of 3% compared to the ARS341 million reported in the same period of 2008. Revenue for the first half of 2009 rose 14% compared to the same period a year earlier, to reach ARS5.75 billion, while second quarter revenue totalled ARS2.93 billion, up 14% year-on-year. CAPEX totalled ARS529 million, reflecting a 26% fall year-on-year.

During the second quarter of 2009 the fixed telephony business generated revenue of ARS619 million, up 3% year-on-year, driven by growth in the data and broadband sectors. Revenue from the company’s internet business rose 43% in H1 2009 compared to the same period a year earlier, due to expansion of its broadband service. At 30 June 2009 the telco recorded 4.33 million fixed lines in service, up 2% compared to the same period a year earlier. The company ended the first half of 2009 with 1.12 million ADSL subscribers, up 24% year-on-year.

Telecom Argentina’s mobile arm Telecom Personal added over one million subscribers during the first half of 2009 to bring its total in Argentina to 13.6 million, around 68% of which are pre-paid users. Personal’s revenue for the second quarter reached ARS1.91 billion, up from ARS1.67 billion in the same quarter a year earlier, while H1 revenue amounted to ARS3.76 billion, up 14% year-on-year. The company’s unit in Paraguay, which operates under the Nucleo banner, ended the first half of 2009 with 1.76 million customers.