Telecom Argentina S.A. announces consolidated results for the first half (1H23) and second quarter of fiscal year 2023 ("2Q23") **

BUENOS AIRES, Argentina, Aug. 9, 2023

Note: For the figures included in the 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 annual financial statements, interim and special periods ending as of December 31, 2018 inclusive. Accordingly, the reported figures corresponding to 1H23 include the effects of the adoption of inflationary accounting in accordance with IAS 29. Finally, comments related to variations of results of 1H23 and vs. 1H22 mentioned in this press release correspond to "figures restated by inflation" or "constant".

• For the purposes of reviewing these results, it should be noted that the results presented on a comparative basis (June 2022) include the effect of the year-over-year inflation as of June 2023, which was 115.6%.
• Consolidated Revenues amounted to P$517,253 million in 1H23 (-9.3% in constant currency vs. 1H22) where the inflation acceleration poses challenges to maintain revenues in real terms. Service Revenues totaled P$479,148 million (-10.2% in constant currency vs. 1H22).
• Mobile clients in Argentina reached 20.6 million in 1H23 (+573 thousand vs. 1H22), cable TV subscribers totaled 3.1 million in the same period (-161 thousand vs. 1H22), while broadband accesses amounted to 4.1 million (-144 thousand vs. 1H22), showing a stabilization of client bases in the fixed segment during the last quarter.
• In 1H23, [Operating Income before Depreciation, Amortization and Impairment of Fixed Assets ("D, A & I")] amounted to P$146,764 million (-15.8% vs. 1H22), while our margin over revenues was 28.4%. Operating Costs before D, A & I, observed a further decline during 2Q23 in real terms (-8.4% in 2Q23 vs. 2Q22, compared to -4.4% in 1Q23 vs. 1Q22).
• During 1H23, the Company recorded a net income of P$39,407 million (vs. P$68,725 million in 1H22).
• Investments (including right-of-use assets) amounted to P$82,044 million in 1H23, which represents 15.9% of our Consolidated Sales. CAPEX (excluding right-of-use assets) continues to be affected by import restrictions and stood at 11.9% during 1H23.
• Net Financial Debt amounted to P$621,962 million in 1H23 (-7.6% in constant currency vs. 1H22). Having cancelled all its financial debt commitments up to date, the Company shows a clear maturity profile for the remainder of the year.

**Unaudited non-financial information