Telecom Argentina S.A. announces consolidated results for the nine-month period ("9M26") and third quarter of fiscal year 2026 ("3Q26")(2)

Telecom Argentina posts strong revenue and EBITDA growth despite heavy impairments and subscriber shifts.

What the company is saying

Telecom Argentina S.A. (NYSE:TEO) reports a consolidated net loss of P$56,615 million for Q3 2026, but a net income of P$862,959 million for the nine-month period, both restated for inflation. The company highlights a significant impairment loss of P$383,870 million in Q3, mainly tied to assets to be divested for the TMA acquisition, and details extraordinary discounts at TMA totaling P$39,930 million that reduced service revenues by 4.3%. Management emphasizes operational resilience: consolidated revenues rose 18% year-over-year to US$1,778 million, service revenues increased 19% to US$1,714 million, and adjusted EBITDA jumped 37% to US$642 million with a margin of 36.1%. Equity free cash flow nearly doubled to US$231 million, and net debt fell 9% to US$2,927 million, with net leverage improving to 1.2x. The company openly addresses the impact of inflation (33.4% YoY), subscriber base changes, and the effect of the FIFA World Cup 2026 on TV growth, presenting a balanced narrative that acknowledges both operational gains and extraordinary items.

What the data suggests

The data shows robust underlying financial performance, with consolidated revenues up 18% and service revenues up 19% in Q3 2026 versus the prior year, despite a 4.3% revenue reduction from extraordinary TMA discounts. Adjusted EBITDA rose 37% to US$642 million, and equity FCF surged 96% to US$231 million, indicating improved cash generation. CAPEX was high at US$354 million, representing 19.9% of revenues, and net debt declined to US$2,927 million, reducing leverage to 1.2x. Impairment charges of P$383,870 million, primarily for TMA-related asset divestitures, drove the quarterly net loss but did not affect EBITDA or cash flow. Subscriber metrics are mixed: mobile subscribers in Argentina (excluding TMA) fell 11.8% to 17.9 million due to prepaid disconnections, while TMA mobile subscribers grew 5.2% to 20.1 million. Broadband accesses in Argentina increased 2.5% to 4.2 million, and pay TV subscribers rose 4.3% to 3.6 million, with TV growth attributed to the FIFA World Cup and new football packages. ARPU for mobile services climbed 18.8% to P$12,940.8, while broadband ARPU fell 2.9% and pay TV ARPU rose 2.9%. Segment revenues show mobile services up 5.1%, internet down 4.6%, cable TV up 0.6%, and fixed telephony and data down 22.2%. The company provides full transparency on inflation impacts, extraordinary items, and operational drivers.

Analysis

The announcement is a factual quarterly and nine-month financial disclosure, with all key claims supported by realised, audited figures. There are no forward-looking statements or projections; all data points (revenues, EBITDA, FCF, CAPEX, net debt, subscriber metrics) are for the reported period and are directly quantified. The tone is neutral and avoids promotional language, simply reporting both positive (revenue, EBITDA, FCF growth, debt reduction) and negative (impairments, discounts, subscriber declines in some segments) developments. The capital intensity flag is true due to the high CAPEX and significant impairments related to the TMA acquisition, but these are fully disclosed and their impact is immediate and quantified. There is no evidence of narrative inflation or overstatement; the language is proportionate to the results.

Risk flags

• ●Heavy impairment charges totaling P$383,870 million in Q3 2026, mainly related to assets to be divested for the TMA acquisition, signal ongoing integration and restructuring risk. Such large non-cash items can obscure underlying profitability and may indicate further asset rationalisation ahead.
• ●Extraordinary discounts at TMA of P$39,930 million in Q3 2026 reduced service revenues by 4.3%, highlighting the risk of further commercial adjustments or pricing pressure as the company integrates TMA and adapts to market dynamics.
• ●Subscriber declines in Argentina's mobile segment (excluding TMA), down 11.8% to 17.9 million, reflect the impact of prepaid disconnections and could pressure future revenue growth if not offset by gains in postpaid or other segments.
• ●High capital expenditures (US$354 million, 19.9% of revenues) and ongoing investment needs may constrain free cash flow if revenue or EBITDA growth slows, especially in a high-inflation environment.
• ●Macroeconomic risk remains elevated, with inflation at 33.4% year-over-year and FX volatility potentially impacting both operational costs and reported results, particularly as the company operates across Argentina, Paraguay, and Uruguay.

Bottom line

Telecom Argentina delivers strong revenue, EBITDA, and free cash flow growth in Q3 2026, but results are complicated by heavy impairment charges and extraordinary discounts tied to the TMA acquisition. The company's operational performance is robust, with rising ARPU and subscriber growth in broadband and pay TV, though mobile subscriber losses in Argentina and high CAPEX warrant close attention. The immediate financial impacts are fully realised, with no forward-looking projections or unquantified synergies. Management is transparent about inflation, restructuring, and integration challenges, but the scale of impairments and ongoing commercial adjustments create uncertainty around future earnings quality. Investors should focus on the company's ability to sustain cash flow and margin gains while managing integration and macroeconomic risks. The key takeaway is that while core operations are improving, headline results are heavily shaped by one-off items and market volatility.

Announcement summary

(NYSE:TEO) Telecom Argentina S.A. reported a consolidated Net Loss of P$56,615 million for the third quarter ended September 30, 2026, and a consolidated Net Income of P$862,959 million for the nine-month period. The Net Loss attributable to the Controlling Company was P$66,216 million in 3Q26, while Net Income attributable to the Controlling Company was P$837,345 million in 9M26. Inflation through September 2026 reached 33.4%, and all figures are restated for inflation. In 3Q26, impairment losses of P$383,870 million were recorded, mainly related to assets to be divested for the TMA acquisition (P$370,683 million for assets to be transferred and P$13,187 million for 3G/4G and PCS licenses to be returned), and P$10,785 million for real estate held for sale. TMA granted extraordinary discounts of approximately P$39,930 million in 3Q26 (Internet P$28,932 million, Cable TV P$5,577 million, Fixed Telephony and Data P$5,421 million), reducing service revenues by about 4.3%. Consolidated revenues for 3Q26 reached US$1,778 million (+18% vs. 3Q25), and service revenues were US$1,714 million (+19% vs. 3Q25). Adjusted EBITDA was US$642 million (+37% vs. 3Q25), with a margin of 36.1%. Equity FCF reached US$231 million (+96% vs. 3Q25), equivalent to 36.0% of EBITDA. CAPEX totaled US$354 million (+44% vs. 3Q25), or 19.9% of revenues. Net debt was US$2,927 million as of September 30, 2026 (-9% vs. 3Q25), with an average life of 4.5 years and net leverage of 1.2x. As of September 30, 2026, Telecom's mobile subscribers in Argentina (excluding TMA) were 17.9 million (-11.8% vs. 3Q25), and TMA's mobile subscribers were 20.1 million (+5.2% vs. 3Q25). Broadband accesses in Argentina reached 4.2 million (+2.5% vs. 3Q25), and pay TV subscribers (including subsidiaries in Argentina, Paraguay, and Uruguay) totaled 3.6 million (+4.3% vs. 3Q25). In 9M26, ARPU for mobile services was P$12,940.8 (+18.8% vs. 9M25), broadband ARPU was P$32,466.0 (-2.9%), and pay TV ARPU was P$23,692.4 (+2.9%). Consolidated mobile service revenues in 3Q26 were P$1,450,985 million (+5.1% vs. 3Q25), internet service revenues were P$567,955 million (-4.6%), cable TV service revenues were P$297,262 million (+0.6%), and fixed telephony and data service revenues were P$269,188 million (-22.2%). In Paraguay, mobile service revenues in 3Q26 were P$66,324 million (+8.3% vs. 3Q25). The Pacheco Datacenter received the "Certified Energy Efficient Datacenter Award" (CEEDA) during 9M26. The company notes the impact of the FIFA World Cup 2026 and new Football Package subscriptions on TV subscriber growth.

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