Telecom Argentina S.A. Q1 FY2024 earnings call

• EBITDA margin during the first quarter of 2024 was 30.3%, steady year-over-year despite challenging macroeconomic environment.
• CapEx in the first quarter of 2024 was approximately $122 million, equivalent to 15% of revenues, focused on expansion of FTTH technology, mobile network expansion, and 5G development.
• Generated approximately $116 million in free cash flow before dividends and interest payments during the first quarter of 2024.
• Registered a net income profit of ARS675 million associated with real exchange differences gains due to real appreciation of the peso and effect of macro variables on debt in U.S. dollars.
• Mobile subscriber base continued to grow over 3% year-over-year, mobile data usage up 21% monthly GB per user. Broadband FTTH accesses growing rapidly, HFC network stable. Flow unique customers reached almost 1.5 million, increasing 12% year-over-year.
• Pay TV businesses growing in Paraguay; FinTech Personal Pay has over 2.5 million onboarded clients.
• Strong improvement in financial net debt to EBITDA ratio, with debt split about 60% in cross border instruments.
• Regional operations: Paraguay is second in mobile market with 2.4 million customers, fixed broadband and Pay TV offerings; Uruguay focused on Pay TV with potential in broadband; Chile Ubiquo strengthening cybersecurity business.

Mobile: Mobile subscriber base grew over 3% year-over-year, mobile data usage measured in average monthly gigabytes per user has grown 21%. Represents 41% of revenues. Broadband: FTTH accesses keep growing rapidly, HFC network mostly stable. Broadband and Pay TV add up to almost 40% of revenues. Pay TV: Pay TV businesses continue to grow in Paraguay; in Uruguay, focused on Pay TV with 160,000 customers. Fixed Voice: Continued reduction in accesses, replacing traditional fixed copper network with IP telephone accesses over HFC and FTTH networks. B2B: Represents around 18% of revenue as of the third quarter of 2024, expected to increase substantially in the future, with contracts set following FX evolution. FinTech: Personal Pay holds a relevant market position with more than 2.5 million onboarded clients as of March 2024, and is the second player in the market in terms of clients' remunerated account balances.

• Expect to continue increasing the participation of the B2B segment in revenues as contracts are set following FX evolution and the market has high growth potential.
• Potential to grow in the local broadband market in Uruguay as licenses are obtained to offer the service in certain locations.
• Hoping that if there is a real appreciation of the peso as expected in 2024, EBITDA might sustain in current levels.

• Uncertainties from ongoing and economic regulations.
• Possible changes in the demand for Telecom's products and services.
• Effects of potential changes in general market and economic conditions and in legislation.
• Macro volatility impacting debt and financial figures, such as the temporary increase in net debt EBITDA ratio after the end-2023 devaluation.