Telecom Argentina S.A. announces consolidated nine month period ('9M18') and third quarter results for fiscal year 2018 ('3Q18')*

BUENOS AIRES, Argentina, Nov. 7, 2018

Note: The merger between Telecom and Cablevisión was considered an inverse acquisition under IFRS 3 (Business Combinations), with Cablevisión being the surviving entity for accounting purposes. Thus, for the purposes of preparing the consolidated financial statements of Telecom Argentina as of September 30, 2018: i) the comparative figures as of December 31, 2017 and September 30, 2017 correspond to those that arise from the consolidated financial statements of Cablevisión at their respective dates; and ii) the corresponding information for the nine-month period ended September 30, 2018, incorporates on the basis of figures corresponding to Cablevisión, the effect of the application of Telecom Argentina's method of acquisition at its fair value in accordance with the IFRS 3 guidelines and the operations of Telecom Argentina as of January 1, 2018. On the other hand, in order to ease the understanding and analysis of the earnings evolution by its users, additional tables of the income statements are included, exposing on pro forma basis the comparative figures for 9M17 as if the merger between Telecom and Cablevisión had been effective during that period. The variations of results vs. 9M17 identified in this press release emanate from the comparison with the aforementioned "pro forma" information.

• Consolidated Revenues amounted to P$99,494 million in 9M18 (+29.3% vs. 9M17); of which Service Revenues reached P$91,910 million (+29.3% vs. 9M17). Considering the breakdown of Service Revenues, Mobile Services amounted P$34,511 million (+18.3% vs. 9M17); Internet Services totaled P$22,448 million (+32.6% vs. 9M17), while Cable TV Services and Fixed Telephony and Data Services amounted to P$21,417 million (+42.6% vs. 9M17) and P$13,086 million (+36.4% vs. 9M17), respectively.
• Mobile subscribers in Argentina: 18.9 million in 9M18, while Cable TV subscribers and Broadband accesses totaled 3.5 million and 4.1 million, respectively.
• Mobile Internet revenues of Personal in Argentina increased 41.2% vs. 9M17; reaching 59.1% participation in Service Revenues.
• Mobile ARPU of Personal in Argentina in 9M18 increased to P$170.4 per month in 9M18 (+22.6% vs. 9M17).
• Broadband ARPU reached P$604.8 per month in 9M18 (+34.9% vs. 9M17). Monthly churn was 1.9% in 9M18.
• Cable TV ARPU increased to P$674.9 per month in 9M18 (+26.9% vs. 9M17).
• Consolidated Operating costs -including D&A and impairment of PP&E- totaled P$79,550 million in 9M18 (+26.1% vs. 9M17).
• Operating Income before Depreciation and Amortization reached P$35,196 million in 9M18 (+36.4% vs. 9M17), 35.4% of Consolidated Revenues.
• Net Loss amounted to P$18,540 million in 9M18. Net Loss attributable to the Controlling Company amounted to P$18,589 million during the same period. The mentioned Net Loss mainly reflects the impact of FX losses over financial results, partially offset by the growth in Operating Income before D&A.
• Capex reached P$24,046 million in 9M18, equivalent to 24.2% of Consolidated Revenues.
• Net Financial Debt Position: P$67,901 million in 9M18.