Telecom Argentina S A : Financial Statements 2Q22.pdf

TELECOM ARGENTINA S.A.

TELECOM ARGENTINA S.A.

Unaudited Condensed Consolidated Financial Statements as of June 30, 2022

General Hornos 690

1. Ciudad Autónoma de Buenos Aires Argentina

$: Argentine peso

US$: US dollar

$125.23= US$1 as of June 30, 2022

TELECOM ARGENTINA S.A.

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021

INDEX

Unaudited consolidated financial statementsUnaudited consolidated statements of financial position Unaudited consolidated income statements

Unaudited consolidated statements of comprehensive income Unaudited consolidated statements of changes in equity Unaudited consolidated statements of cash flows

Notes to the unaudited consolidated financial statements Operating and Financial Review and Prospects

Corporate information

TELECOM ARGENTINA S.A.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In millions of Argentine pesos in current currency - Note 1.d)

		June 30,	December 31,
ASSETS	Note	2022	2021
Current Assets
Cash and cash equivalents	2	21,515	27,025
Investments	2	4,802	14,685
Trade receivables	3	26,788	30,707
Other receivables	4	13,126	12,043
Inventories	5	4,822	4,242
Assets classified as held for sale	27.3	657	-
Total current assets		71,710	88,702
Non-Current Assets
Trade receivables	3	92	99
Other receivables	4	2,110	2,839
Deferred income tax assets	13	1,057	896
Investments	2	4,364	4,392
Goodwill	6	516,657	516,150
Property, plant and equipment	7	576,367	614,282
Intangible assets	8	186,026	196,215
Right of use assets	9	44,208	45,496
Total non-current assets		1,330,881	1,380,369
TOTAL ASSETS		1,402,591	1,469,071
LIABILITIES
Current Liabilities
Trade payables	10	57,435	67,029
Financial debt	11	92,751	88,320
Salaries and social security payables	12	22,821	30,312
Income tax payables	13	23,492	18,962
Other taxes payables	14	5,541	5,395
Dividends payables	2	435	-
Leases liabilities	15	8,043	8,346
Other liabilities	16	3,907	4,160
Provisions	17	2,148	2,922
Total current liabilities		216,573	225,446
Non-Current Liabilities
Trade payables	10	657	1,493
Financial debt	11	245,698	275,097
Salaries and social security payables	12	2,060	2,104
Deferred income tax liabilities	13	163,962	184,121
Other taxes payables	14	21	-
Leases liabilities	15	14,586	17,409
Other liabilities	16	2,146	1,704
Provisions	17	11,591	13,035
Total non-current liabilities		440,721	494,963
TOTAL LIABILITIES		657,294	720,409
EQUITY
Equity attributable to Controlling Company		734,470	736,992
Equity attributable to non-controlling interest		10,827	11,670
TOTAL EQUITY(See Consolidated Statements of		745,297	748,662
Changes in Equity)
TOTAL LIABILITIES AND EQUITY		1,402,591	1,469,071

The accompanying notes are an integral part of these unaudited consolidated financial statements.

F-1

TELECOM ARGENTINA S.A.

CONSOLIDATED INCOME STATEMENTS

(In millions of Argentine pesos in current currency, except per share data in Argentine pesos in current currency - Note 1.d)

			Three-month period		Six-month period
			ended June 30,			ended June 30,
	Note	2022		2021			2022		2021
Revenues	21		126,897	145,009	264,577	295,198
Employee benefit expenses and severance payments	22		(32,111)	(29,834)		(60,519)	(57,727)
Interconnection and transmission costs			(3,910)	(5,088)		(8,118)	(10,898)
Fees for services, maintenance, materials and supplies	22		(16,011)	(16,677)		(30,711)	(33,625)
Taxes and fees with the Regulatory Authority	22		(9,842)	(11,173)		(20,370)	(22,854)
Commissions and advertising			(7,228)	(8,507)		(14,765)	(16,480)
Cost of equipment and handsets	22		(5,405)	(8,003)		(12,456)	(15,121)
Programming and content costs			(7,925)	(9,510)		(16,719)	(20,577)
Bad debt expenses	3		(2,702)	(3,219)		(6,454)	(5,105)
Other operating expenses	22		(8,649)	(7,218)		(13,619)	(12,366)
Depreciation, amortization and impairment of fixed assets	22		(43,124)	(46,884)			(89,381)	(91,747)
Operating (loss) income			(10,010)	(1,104)		(8,535)	8,698
Earnings from associates	2		3	40	144	189
Debt financial results	23		7,977	14,078		24,989	19,916
Other financial results, net	23		4,509	4,088			13,702	10,569
Income before income tax expense			2,479	17,102		30,300	39,372
Income tax	13		1,547	(36,240)			1,579	(42,114)
Net income (loss) for the period			4,026	(19,138)		31,879	(2,742)
Attributable to:
Controlling Company			3,664	(19,192)		31,260	(3,288)
Non-controlling interest			362	54		619	546
			4,026	(19,138)		31,879	(2,742)
Earnings (losses) per share attributable to Controlling
Company - Basic and diluted	1.c		1.70	(8.91)		14.51	(1.53)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

See Note 22 for additional information on operating expenses per function.

F-2

TELECOM ARGENTINA S.A.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions of Argentine pesos in current currency - Note 1.d)

Net income (loss) for the period

Other comprehensive income - Will be reclassified subsequently to profit or loss

Currency translation adjustments (no effect on Income Tax)

DFI effects classified as hedges

Income Tax effects on DFI classified as hedges and others

Three-month period

ended June 30,

2022 2021

4,026	(19,138)

1. (3,725)

• 120
• (24)

Six-month period ended June 30,

2022 2021

31,879 (2,742)

(2,791) (3,683)

99 233

(29)

(80)

	Other comprehensive loss, net of tax		(793)		(3,629)
	Total comprehensive income (loss) for the period		3,233		(22,767)
	Attributable to:
	Controlling Company
		3,017	(21,962)
	Non-controlling interest		216	(805)
			3,233	(22,767)

(2,721)

(3,530)

29,158 (6,272)

29,112 (6,008)

46 (264)

29,158 (6,272)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

F-3