Telecom Argentina S.A. announces consolidated results for the annual period ("FY19") and fourth quarter for fiscal year 2019 ("4Q19")*

BUENOS AIRES, March 9, 2020

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 FY19 include the effects of the adoption of inflationary accounting in accordance with IAS 29. Finally, comments related to variations of results of FY19 and vs. FY18 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 December 2018 contain the effect of year over year inflation as of December 2019, which reaches 53.8%.
• Consolidated Revenues of Telecom Argentina amounted to P$237,024 million in FY19, of which Service Revenues totaled P$222,586 million. During 4Q19 and in a context of inflationary acceleration, Telecom Argentina was able to maintain its Service Revenues in real terms when compared with the same quarter of the previous year (which increased 0.4% in real terms in 4Q19 vs. 4Q18), not only due to a sustained demand for higher value services but also for convergent products. Additionally, this had a positive impact over the ARPUs in real terms, reducing the year over year gap with inflation during 4Q19.
• Mobile clients in Argentina reached 19.1 million in FY19, increasing in more than 700 thousand vs. FY18. In turn, cable TV subscribers and broadband accesses totaled 3.5 million and 4.1 million, respectively, remaining relatively stable. In this sense, the Company reaffirmed its leadership in mobile portability during the year, as well as in high quality broadband and video and content platforms.
• Operating Income before Depreciation and Amortization amounted to P$77,084 million in FY19, 32.5% of Consolidated Revenues. The decrease in real terms experienced by the Operating income before Depreciation and Amortization reflects essentially different adjustment dynamics over time between costs and price increases, although the aforementioned interannual decrease has been diminishing along the year.
• The Company registered an Ordinary income before income tax of P$10,282 million in FY19, improving +147.8% vs. FY18, mainly reflecting lower net losses from FX results measured in real terms. Meanwhile, the Company registered a Net Loss of P$3,888 million during FY19, essentially due to the recognition of the restatement by inflation for the calculation of Income Tax.
• Investments (including rights of use assets) reached P$70,865 million in FY19, equivalent to 29.9% of Consolidated Revenues, which were aimed to expand and upgrade the networks, in addition to the development of products, services and content in order to respond to the needs of customers that nowadays demand greater connectivity, as well as extending and strengthening the Company's solid competitive position in terms of network infrastructure.
• Net Financial Debt: P$124,825 million in FY19, increasing 23.6% in real terms when compared with FY18.  

*Unaudited non financial data