Telecom Argentina's Financial Report for Q3 and Nine-Month Period Highlights Impact of Inflation
On November 12, 2026, Telecom Argentina S.A. (NYSE: TEO; BYMA: TECO2) announced its consolidated financial results for the third quarter of fiscal year 2026 (3Q26) and the nine-month period ended September 30, 2026 (9M26). The company reported a net loss of P$56,615 million for 3Q26, alongside a positive net income of P$862,959 million for the full nine-month period, primarily impacted by inflationary pressures.
During the third quarter, Telecom Argentina faced a consolidated net loss attributable to its controlling company of P$66,216 million. The company attributed these results to severe inflation rates that reached 33.4% year-over-year, alongside quarterly financial dynamics.
The financial highlights for 3Q26 indicated a more personalized approach to understanding inflation-adjusted figures, vital for stakeholders analyzing the company's performance within the current economic landscape. The inflation-adjusted figures, crucial for accurate comparisons with prior periods, underscore the necessity of reflecting on economic variables that significantly influence financial outcomes. The year-on-year comparison signifies adjustments necessary to account for inflationary changes when evaluating revenue.
On the revenue front, consolidated revenues for 3Q26 amounted to USD 1,778 million, marking an 18% increase compared to the same quarter in the previous year. Service revenues reached USD 1,714 million, experiencing a 19% uptick year-over-year. However, service revenues, when viewed in local currency (pesos), reflected a 2% decline in real terms. This decline can be mostly attributed to extraordinary discounts granted by the company’s subsidiary, TMA, which diminished service revenues by approximately 4.3%. In the absence of these discounts, the overall service revenues would have exhibited minor growth, underscoring a complex intertwining of promotional strategies and revenue sustainability.
The company reported an adjusted EBITDA of USD 642 million, translating to a margin of 36.1%. This represents a commendable growth of 37% from the previous year, with the pesos’ increase positioned at approximately 13% when adjusted for inflation. Equity free cash flow saw an impressive rise, reaching USD 231 million, nearing a 96% increase compared to 3Q25. The capital expenditure for the period amounted to USD 354 million, depicting a significant 44% growth, reflecting the company's ongoing investment strategies in infrastructure and technology, vital for optimizing service delivery and customer satisfaction.
Telecom Argentina faced a steadily declining mobile subscriber base, reporting 20.6 million users, reflecting a decrease from the previous year, primarily attributable to the disconnection of inactive prepaid lines. However, a notable growth in the postpaid segment energized the market, showcasing Telecom's efforts in upgrading customer service and fostering long-term relationships.
On the internet services front, while consolidated revenues decreased in real terms to P$567,955 million, the company’s efforts to stabilize this segment by normalizing discounts led to a stabilization in revenues, with positive metrics emerging in the long-term outlook. The emergence of competitive offers during hallmark events like the FIFA World Cup sparked a temporary surge in cable TV subscriptions, leading to a growth of 4.3% in subscriptions, as customers gravitated towards bundled packages to access match broadcasts.
The fixed telephony segment continued to decline, with revenues reaching P$269,188 million, representing a stark contrast to the trends observed in mobile and internet services. This points to a shifting consumer preference towards mobile communication platforms over conventional fixed-line services.
In summation, the latest financial results from Telecom Argentina highlight a transformative period affected by inflationary pressures and evolving market dynamics. While challenges remain evident, particularly in customer retention in mobile services and the fixed telephony segment, Telecom Argentina's robust strategies toward enhancing service delivery and adapting to market demands indicate a calculated approach to navigating through these complexities. As a stakeholder in the telecommunications landscape, it remains crucial to maintain vigilance regarding Telecom Argentina’s advancements and fiscal strategies as the company aims to innovate and enhance its service offerings in an increasingly competitive environment.
During the third quarter, Telecom Argentina faced a consolidated net loss attributable to its controlling company of P$66,216 million. The company attributed these results to severe inflation rates that reached 33.4% year-over-year, alongside quarterly financial dynamics.
The financial highlights for 3Q26 indicated a more personalized approach to understanding inflation-adjusted figures, vital for stakeholders analyzing the company's performance within the current economic landscape. The inflation-adjusted figures, crucial for accurate comparisons with prior periods, underscore the necessity of reflecting on economic variables that significantly influence financial outcomes. The year-on-year comparison signifies adjustments necessary to account for inflationary changes when evaluating revenue.
On the revenue front, consolidated revenues for 3Q26 amounted to USD 1,778 million, marking an 18% increase compared to the same quarter in the previous year. Service revenues reached USD 1,714 million, experiencing a 19% uptick year-over-year. However, service revenues, when viewed in local currency (pesos), reflected a 2% decline in real terms. This decline can be mostly attributed to extraordinary discounts granted by the company’s subsidiary, TMA, which diminished service revenues by approximately 4.3%. In the absence of these discounts, the overall service revenues would have exhibited minor growth, underscoring a complex intertwining of promotional strategies and revenue sustainability.
The company reported an adjusted EBITDA of USD 642 million, translating to a margin of 36.1%. This represents a commendable growth of 37% from the previous year, with the pesos’ increase positioned at approximately 13% when adjusted for inflation. Equity free cash flow saw an impressive rise, reaching USD 231 million, nearing a 96% increase compared to 3Q25. The capital expenditure for the period amounted to USD 354 million, depicting a significant 44% growth, reflecting the company's ongoing investment strategies in infrastructure and technology, vital for optimizing service delivery and customer satisfaction.
Telecom Argentina faced a steadily declining mobile subscriber base, reporting 20.6 million users, reflecting a decrease from the previous year, primarily attributable to the disconnection of inactive prepaid lines. However, a notable growth in the postpaid segment energized the market, showcasing Telecom's efforts in upgrading customer service and fostering long-term relationships.
On the internet services front, while consolidated revenues decreased in real terms to P$567,955 million, the company’s efforts to stabilize this segment by normalizing discounts led to a stabilization in revenues, with positive metrics emerging in the long-term outlook. The emergence of competitive offers during hallmark events like the FIFA World Cup sparked a temporary surge in cable TV subscriptions, leading to a growth of 4.3% in subscriptions, as customers gravitated towards bundled packages to access match broadcasts.
The fixed telephony segment continued to decline, with revenues reaching P$269,188 million, representing a stark contrast to the trends observed in mobile and internet services. This points to a shifting consumer preference towards mobile communication platforms over conventional fixed-line services.
In summation, the latest financial results from Telecom Argentina highlight a transformative period affected by inflationary pressures and evolving market dynamics. While challenges remain evident, particularly in customer retention in mobile services and the fixed telephony segment, Telecom Argentina's robust strategies toward enhancing service delivery and adapting to market demands indicate a calculated approach to navigating through these complexities. As a stakeholder in the telecommunications landscape, it remains crucial to maintain vigilance regarding Telecom Argentina’s advancements and fiscal strategies as the company aims to innovate and enhance its service offerings in an increasingly competitive environment.
Topics Telecommunications）
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