Telecom Argentina S.A. announces consolidated results for the first quarter of fiscal year 2019 ('1Q19')*

BUENOS AIRES, Argentina, May 9, 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 March 31, 2018 inclusive. Accordingly, the reported figures corresponding to 1Q19 include the effects of the adoption of inflationary accounting in accordance with IAS 29. Finally, comments related to variations of results of 1Q19 and vs. 1Q18 mentioned in this press release correspond to "figures restated by inflation" or "constant". Moreover, Table 3 contemplates information broken down by segment for periods ended as of March 31 of 2019 and 2018 as analyzed by the Executive Committee and the CEO, who receive periodically the financial information of Telecom and its subsidiaries (in historical values) For further details, please refer to the titles of the financial tables beginning from page 11.

• Consolidated Revenues amounted to P$44,328 million in 1Q19, of which Service Revenues reached P$41,521 million. Considering the breakdown of Service Revenues, Mobile Services amounted P$14,813 million; Internet Services totaled P$10,152 million, while Cable TV Services and Fixed Telephony and Data Services amounted to P$9,575 million and P$6,865 million, respectively.
• Mobile Internet revenues of Personal in Argentina reached a 73% participation in Service Revenues.
• Mobile subscribers in Argentina: 18.4 million in 1Q19, while Cable TV subscribers and Broadband accesses totaled 3.4 million and 4.1 million, respectively.
• Mobile ARPU of Personal in Argentina (restated in terms of the measuring unit as of March 31, 2019) in 1Q19 totaled P$225.5 per month in 1Q19 (-11.5% vs. 1Q18).
• Broadband ARPU (restated in terms of the measuring unit as of March 31, 2019) reached P$819.4 per month in 1Q19 (-7.1% vs. 1Q18). Monthly churn was 2.0% in 1Q19.
• Cable TV ARPU (restated in terms of the measuring unit as of March 31, 2019) amounted to P$871.5 per month in 1Q19 (-12.2% vs. 1Q18).
• Consolidated Operating costs -including D&A and impairment of PP&E and intangible assets- totaled P$39,832 million in 1Q19 (+2.7% vs. 1Q18).
• Operating Income before Depreciation and Amortization reached P$14,491 million in 1Q19 (-21.4% vs. 1Q18), 32.7% of Consolidated Revenues.
• Net Income amounted to P$1,279 million in 1Q19. Net Income attributable to the Controlling Company amounted to P$1,232 million during the same period. The variation of the mentioned Net Income vs. 1Q18 mainly reflects the impact of the decrease in Operating Income and lower financial results.
• Capex reached P$9,067 million in 1Q19, equivalent to 20.5% of Consolidated Revenues. 
• Net Financial Debt Position: P$71,061 million in 1Q19.