Telecom Argentina Q1 net profit jumps 17%

7 May 2010

Argentine incumbent operator Telecom Argentina has announced its results for the three months ended 31 March 2010, reporting a 17% year-on-year rise in net profit to ARS411 million (USD105 million), beating market expectations. Consolidated net sales totalled ARS3.25 billion in the first quarter of 2010, up 15% from ARS2.83 billion recorded in the same period a year earlier. Mobile revenue generated ARS2.167 billion of total sales (up 17% year-on-year), while voice, data and internet services accounted for the remaining ARS1.082 billion (an increase of 11%). CAPEX in 1Q10 totalled ARS343 million, representing a 47% jump compared to a year earlier. In terms of subscribers, Telecom Argentina’s domestic mobile arm, Personal, added 473,000 customers during the quarter to bring its wireless user base to 14.948 million (up 13% year-on-year), of which around 70% were pre-paid. Personal’s average revenue per user (ARPU) rose from ARS40 at the end of 1Q09 to ARS41 a year later. The number of Telecom’s domestic fixed lines in service increased 1% to 4.364 million at 31 March 2010, while broadband subscribers jumped 16% year-on-year to 1.241 million. Meanwhile the subscriber base of the company’s Paraguayan mobile subsidiary, Nucleo, declined 12% year-on-year to 1.819 million, 88% of which are pre-paid clients.