Telecom Argentina S.A. announces consolidated nine-month period ("9M19") and third quarter results for fiscal year 2019 ("3Q19")*

BUENOS AIRES, Nov. 7, 2019

Note: For the figures included in their FFSS, the Company has accounted for the effects of inflation adjustment adopted by Resolution 777/18 of the Comisión Nacional de Valores ("CNV"), which establishes that the restatement will be applied to the annual financial statements, for intermediate and special periods ended as of December 31, 2018 inclusive. Accordingly, the reported figures corresponding to 9M19 include the effects of the adoption of inflationary accounting in accordance with IAS 29. Finally, comments related to variations of results of 9M19 and vs. 9M18 mentioned in this press release correspond to "figures restated by inflation" or "constant".

• For comparative purposes, it is important to highlight that the results restated for inflation corresponding to September 2018 contain the effect of year over year inflation as of September 2019, which reaches 53.7%.
• Consolidated Revenues of Telecom Argentina amounted to P$159,699 million in 9M19, of which Service Revenues totaled P$149,641 million. During the 3Q19, the Company was able to increase Service Revenues at a faster rate than the level of inflation (which increased 3.0% in real terms in 3Q19 compared with 2Q19), being this increase related to the demand for higher value services and achieved in a challenging and volatile context. Additionally, this had a positive impact over the ARPUs in real terms, which have mostly experienced a recovery during 3Q19.
• Mobile clients in Argentina reached 19.0 million in 9M19, increasing in more than 560 thousand clients vs. 2Q19. In turn, cable television subscribers and broadband accesses totaled 3.5 million and 4.1 million, respectively. It is important to remark that in all cases, and for a second consecutive time during this year, the total number of subscribers increased when compared to the previous quarter, through actions such as change of products, bundling and upselling, allowing to increase the weight of value customers and reiterating the leadership of the Company in mobile portability, in broadband and video platforms.
• Operating Income before Depreciation and Amortization amounted to P$53,219 million in 9M19, 33.3% of Consolidated Revenues. During 3Q19, the increase in real terms of Revenues and Costs has been relatively similar, reducing the gap observed between them during the first half of the year.
• The Company registered an Ordinary loss before income tax of P$165 million in 9M19, improving +99.3% vs. 9M18, mainly reflecting lower net losses from FX results measured in real terms. Meanwhile, the Company registered a Net Loss of P$12,697 million during the same period, essentially due to the recognition of the restatement by inflation for the calculation of Income Tax.
• On October 18, 2019, the Company paid US$ 300 million in cash dividends, pursuant to the resolutions of the Ordinary Shareholders' Meeting held on October 10, 2019. The dividends were made available through the use of the Company's own resources as a result of its solid operative generation, ensuring an adequate remuneration for all its funding sources.
• Investments reached P$43,939 million in 9M19, equivalent to 27.5% of Consolidated Revenues, with the objective of optimizing the services demanded by its customers and reaffirming the solid competitive position in terms of network infrastructure that the Company currently has.
• Net Financial Debt Position: P$105,427 million in 9M19, increasing 1.0% in real terms when compared with September 2018.

*Unaudited non financial data