Telecom Argentina profit up on growing mobile, broadband sales

23 Feb 2011

Argentine incumbent fixed line operator Telecom Argentina has announced that its net profit for the fourth quarter of 2010 rose 28% year-on-year to ARS512 million (USD127 million), on the back of increasing revenue from broadband internet and mobile services. The company said full-year profit in 2010 rose 30% over the previous year to ARS1.82 billion. Operating profit before depreciation and amortisation (OPBDA) rose 17% over FY09 to reach ARS4.56 million, while operating profit amounted to ARS3.2 billion, an increase of 16% year-on-year. Telecom Argentina said consolidated net sales in the twelve months ended 31 December 2010 increased 20% year-on-year to ARS14.68 billion, driven by wireless and broadband sales. Mobile services generated revenue of ARS10.04 billion in 2010 (up 24% year-on-year), while voice, data and internet services accounted for the remaining ARS4.64 billion (an increase of 12%). Net sales in the fourth quarter of 2010 totalled ARS4.2 billion, compared to ARS3.37 billion in 4Q09. Capital expenditure in 2010 totalled ARS1.97 billion, up from ARS1.703 million a year earlier.

At 31 December 2010 Telecom Argentina reported a total wireless subscriber base of 18.212 million, of which 16.333 million were domestic customers (up 13% year-on-year). The remaining 1.878 million subscribed to the wireless and WiMAX services of the company’s Paraguayan unit, Nucleo. Telecom Argentina also reported a total of 1.38 million domestic broadband customers at the end of 2010 (an increase of 14% over 2009), while fixed lines in service increased 1% year-on-year to 4.107 million.